A Simplified Guide to QuickBooks Online 2023

By Field Coleman

If you are unfamiliar with QuickBooks Online but want a basic, step-by-step tutorial of its features and capabilities, then you need to check out this book. With nearly 200 pages and 13 chapters, this guide covers a wide range of Accounting and QuickBooks Online topics, including customers, suppliers, inventories, banking, online banking connection, financial reports, payroll, taxation and lots more. The book contains images that make it easy for readers to follow along. It's great if you're just getting started with the QuickBooks Online app and need a comprehensive explanation of how everything works and a reading guide for creating and understanding the several accounting reports for small and medium-sized businesses.

 

• Language: English
• Publisher: Field Coleman
• Release date: Nov 23, 2022
• ISBN: 9798215303047

Book preview

A Simplified Guide to

QuickBooks Online 2023

A Guide to Managing Accounting and Taxation for Small Businesses Using QuickBooks Online

Field Coleman

Copyright

Copyright©2023 Field Coleman

All rights reserved. No part of this book may be reproduced or used in any manner without the prior written permission of the copyright owner, except for the use of brief quotations in a book review.

While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.

Printed on acid-free paper.

––––––––

Printed in the United States of America

© 2023 by Field Coleman

Table of Contents

CHAPTER ONE

Principles of Accounting

The Purpose of Accounting

Reviewing the Common Financial Statement

A Financial Statement Review Processes

The Income Statement

Uses of Income Statement

Format of an Income Statement Containing the Main Elements

How to Interpret a Financial Statement

Balance Sheet

Liabilities

Essential Aspects and Parts of a Balance Sheet

Assets

Current Assets

Fixed Assets

Operating and Non-Operating Assets

Owner's Equity/Gross Income

General Accounts in a Balance Sheet

Equation and Formula for Balance Sheets

Statement of Cash Flows

How to Use the Cash Flow Statement

Statement of Cash Flows Components

The Direct Approach

The Reverse Method

Accounting Philosophy

Revenue Accounting in Complex Situations

Expense Principle

When to Apply the Expense Recognition Principle

Expense Recognition Principle Example

Matching Principle

The Matching Principle in Action

Taking the Matching Principle into Account

Benefits of the Matching Principle

The Matching Principle's drawbacks

Utilizing the Matching Principle

Cost Principle

Benefits of Cost Principles

Disadvantages of the Cost Principle

Objectivity Principle

Advantages of Objectivity Principles

Disadvantages of the Objectivity Principle

Continuity Assumption

Unit-Of-Measure Assumption

Separate-Entity Assumption

Benefits of a Separate Entity

A Few Words About Tax Accounting

Tax Accounting Basics

The Use of Tax Accounting

CHAPTER TWO

Bookkeeping

Double-Entry Bookkeeping

Introduction to Double Entry

Kinds of Account

Debits and Credits

The Fiddle-Faddle Method of Accounting

How Double-Entry Bookkeeping Works

Talking Mechanics

Recording Rent Expenses

Recording Wage Expenses

Recording Suppliers Expenses

Recording Cost of Goods Sold

Recording the Payoff of Accounts Payable

Recording the Payoff of a Loan

Calculating Account Balance

Using T-account Analysis Result

A Few Words About How QuickBooks Works

CHAPTER THREE

Special Accounting Problems

Recording a Sale

Recording Early Payment Discounts into Account

Estimating Bad-Debt Expenses

Removing All Uncollectible Accounts Receivables

How to Reduce Uncollectible Accounts

Recording Accounts Payable Transactions

Taking Some Accounts Payable Pointers

Inventory Accounting

The Operation of Inventory Accounting

Dealing with Obsolete Inventory

Knowledge of Obsolete Inventory

Disposing of Obsolete Inventory

Dealing with Inventory Shrinkage

Calculating Inventory Shrinkage

Accounting for Fixed Assets

The Cycle of Fixed Asset Accounting

Purchasing a Fixed Asset

Dealing with Depreciation

Journal Entries for Depreciation of Fixed Assets

Salvage Value in Calculating Depreciation

Disposing of a Fixed Asset

Journal Entry for Gain on Disposal

Journal Entry for Loss on Disposal

Recognizing Liabilities

Examples of Liabilities

Keeping Track of Liabilities

Accruing Liabilities

Types of Accrued Liabilities

Accounts Payable vs. Accrued Liabilities

Examples of Accrued Liabilities

Closing out Revenue and Expense Account

The Traditional Close

The QuickBooks Close

CHAPTER FOUR

QuickBooks Online

How Does It Work?

Other Benefits of QuickBooks Online

Versions of QuickBooks

CHAPTER FIVE

Getting Started With QuickBooks Online

How to Add Products and Services

How to Manage Users

How to Use Projects

Using QuickBooks Online's Projects

How to Enter an Opening Balance for the Chart of Accounts

Editing an Opening Balance for the Chart Accounts

Resetting Passwords

CHAPTER SIX

Loading the Master Files

How to Edit an Account in the Chart of Accounts List

How to Remove a Record from the List of Chart of Accounts

Working with the Price Level List

Using Sales Tax Code

Change a Current Sales Tax Code

New Sales Tax Code Creation

Setting Up a Payroll Item List

Make unique payroll items

Establish Default Payroll Items

Assign items to the Employee Center

Setting up A Customer List

Attachments and Notes

Payments

Setting up A Vendors List

CHAPTER SEVEN

Invoice, Sales and Receipts

How to Create an Invoice in QuickBooks Online

Editing an Invoice in QuickBooks

How to Customize an Invoice in QuickBooks

How to Delete an Invoice

How to Print an Invoice

How to Setup Auto-invoice reminders

How to Manage Overdue Invoices

How to Track Billable Time

Record Billable Time

How to Record a Credit Card Refund

Refund for Paid Bills

How to Create a Receipt

How to Receive a Payment

CHAPTER EIGHT

Managing Cash and Bank Accounts

How to Write a Check

How to Print Checks

Making Bank Deposits

Transferring Money between Bank Accounts

How to Reconcile Bank Accounts

How to Connect to Your Bank Account

How to Setup a Direct Bank Feed

CHAPTER NINE

Staff and Payroll

How to Set Up Payroll

How to Add Employees

How to Process a Pay Run

Procedure for Using Timesheets for Job Costing

Set up Service Items for job costing

Creating Timesheets

Entering Batch Weekly Timesheets

How to Reimburse Employee Expenses in QuickBooks Using Payroll

Adding Item to Employee's File

How Employees Can Self Service

The Workzone App for Employees

Setting Up WorkZone App

Enabling WorkZone

CHAPTER TEN

Inventory

How to Set Up Inventory Tracking

Creating Inventory Items

To Check Low Stock

Restocking Your Inventory

Tracking Payments, you have to receive from the Vendor

Creating Category

Categorize Products and Services

How to Add Products Manually

How to Add a Spreadsheet of Products

Uploading a Spreadsheet to QuickBooks Online

Performing Inventory Accounting In QuickBooks Online

Create Journal Entries

Managing Multiple Inventory Locations

CHAPTER ELEVEN

Reports

Create a report for your company

Create a customized summary report for your company

How to Save a Customized Report

Types of Financial Reports in QuickBooks Online

How to View Profit And Loss Account

How to Create Profit And Loss Statement in QuickBooks Online

How to Run Your Cash Flow

Cash Flow Planner

Cash Flow Forecast

How to use Cash Flow Planner to Forecast

Change or Remove an Item

CHAPTER TWELVE

Expenses and Bills

How to Manage Expenses

How to Delete an Expense

How to Record Cash Expenses

How to Enter Bills

How to Pay Bills by Check

Pay Bills Electronically

How to Apply For Credit to Pay Bills From a Vendor

How to Set Up Expense Settings

How to Make Expenses Billable

Recording/Adding Billable Expenses to an Invoice

How to Enable Billable Expenses

How to Remove Billable Expenses from QuickBooks Online

CHAPTER THIRTEEN

Protecting Your Data

Using QuickBooks Security

Online QuickBooks Backup

Backup of QuickBooks Cloud data via manual data export

How to Export Data from QuickBooks Online to Google Sheets, Excel, or BigQuery

QuickBooks Backup to Google Sheets, Excel, or BigQuery Automatically

Restoring a QuickBooks Data File

Key Basics on QuickBooks Online backup

What is QuickBooks Condense Data and Why is it Important in Condensing the QuickBooks Company's File?

What Are the Advantages of Condense Data Utility?

Facts about QuickBooks Online Condense Data Utility

Cleanup Basics

About the Author

CHAPTER ONE

Principles of Accounting

The guidelines that a business must abide by when disclosing financial information are known as accounting principles. Several fundamental accounting rules have evolved via the widespread application. They serve as the cornerstone on which the entire set of accounting rules has been constructed. The following are the most well-known of these rules:

Principle of Consistency. This idea states that once you choose an accounting principle or approach, you should stick with it until a principle or method that is superior emerges. If the consistency principle is not followed, a corporation may alternate between several accounting treatments for its transactions, which makes it very challenging to determine its long-term financial outcomes.

Principle of Cost. The idea here is that a company should only record its assets, liabilities, and equity interests at the price paid at the time of purchase. As several accounting rules move in the direction of adjusting assets and liabilities to their fair values, this principle is losing some of its validity.

The Accrual theory. The idea here is that accounting transactions should be reported in the periods during which they happen rather than when there are related cash flows. The accrual basis of accounting is built on this. The creation of financial statements that accurately reflect what occurred during an accounting period, as opposed to being unduly delayed or accelerated by the related cash flows, is crucial.

If you disregarded the accrual principle, for instance, you would only record an expense when you paid for it, which could include a significant delay brought on by the terms of payment for the related supplier invoice.

The Conservatism Precept. This idea states that while revenues and assets should be recorded as soon as possible, expenses and liabilities should be recorded as soon as they happen. Due to potential delays in revenue and asset recognition, this gives the financial statements a more cautious tilt and could result in lower reported profits. In contrast, this approach favors the earlier rather than the later recording of losses. This idea might be taken too far if a company consistently presents its performance as being lower than the actual value.

The Principle of Economic Entities. This idea states that a business's transactions ought to be kept seperate from those of its owners and other companies. This averts the mixing of assets and liabilities among many companies, which can pose significant challenges when an audit of a startup company's financial statements is performed for the first time.

Materiality Theory. This idea states that a transaction should be included in the accounting records if doing so would have influenced how someone reading the company's financial statements would have made a decision. Some of the more modest controllers have been known to keep track of even the tiniest transactions because this is an indefinite concept that is challenging to measure.

Financial Unit of Measure. According to this idea, a corporation should only keep track of transactions that can be expressed in terms of a specific unit of currency. So, where the value of a business' quality control system is not recorded, it is simple to record the purchase of a fixed asset because it was bought for a specified amount.

Going Concern Theory. This idea states that a company will probably continue to exist for some time. This indicates that postponing the recognition of some costs, like depreciation, until subsequent periods might be acceptable. If not, you would have to record every expense right away and not postpone any of them.

Principle of time. This idea states that a company should present the outcomes of its operations over a set time frame. Although it may be the clearest accounting principle of them all, the goal is to provide a uniform collection of comparable periods that are helpful for trend research.

The Matching Theory. This idea states that all expenses that are related to an income should be recorded at the same time. As a result, you record income from the sale of inventory