QuickBooks 2019 All-in-One For Dummies book cover

QuickBooks 2019 All-in-One For Dummies

By: Stephen L. Nelson Published: 11-27-2018

Finances dont have to put you in a funk! With the help of this all-encompassing book, youll get the easy-to-follow instruction you need to get your business ducks in a row--without ever losing your cool. Whether youre a numbers person or have never spent much time with a calculator, youll discover how to use QuickBooks 2019 to make it easier than ever to handle your finances.  This value-priced reference combines eight content-rich mini-books into one complete package, providing the answers you need to get the most out of the latest version of QuickBooks.

Articles From QuickBooks 2019 All-in-One For Dummies

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How to Add Items to the QuickBooks 2019 Item List

Article / Updated 11-05-2019

You can add a bunch of types of items to the QuickBooks Item list. The Item list stores descriptions of anything that you stick in an invoice or purchase order. When you think about this for a minute, you realize that you have different types of items. If you’re a retailer, for example, the inventory that you sell may appear in an invoice. If you provide discounts to different sorts of customers, discounts may appear in an invoice as a line item. If you’re in a state that taxes sales, sales tax appears as a line item in an invoice. You describe different items in different ways. You describe an inventory item that may appear in an invoice differently from the way you describe a sales tax that you’re required to charge. To add an item to your Item list, follow these steps: Choose the Lists→Item List command. QuickBooks displays the Item List window. To display the Item menu, click the Item button, which appears in the bottom-left corner of the Item List window. QuickBooks displays the Item menu. Choose the New command. This command tells QuickBooks to display the New Item window. Use the boxes of the New Item window to describe the item that you want to add. Your first step is to identify the type of item that you want to add. Based on the type of item, QuickBooks supplies other boxes that you use to describe the item. Save the item. After you use the boxes in the New Item window to describe the item that you want to add, click OK. QuickBooks adds the item that you just described in the Item list. The step-by-step approach described in the preceding paragraphs is the conventional way to add an item, but you can also add items on the fly. For example, if you’re using the Create Invoices window or the Create Purchase Orders window, you can open the Item drop-down list and select Add New Entry from the list. When you do this, QuickBooks displays the New Item window. Then you use the New Item window to add the item in the manner discussed here. How to add a service item to the QuickBooks Item List You use service items to purchase or bill for items that represent service. If you're a CPA, you probably prepare tax returns for individuals and businesses. When you bill a client for preparing his or her tax return, the line item that appears in the invoice for Tax Return Preparation is a service item. In your business, you probably have service items too. A health-care provider, such as a dentist or doctor, provides treatment or performs procedures. Dentists might fill cavities. Doctors might perform physicals or give vaccinations. These activities represent services. Even retailers and contractors — businesses that you typically think of as selling tangible physical goods — often sell services. A retailer may gift-wrap a purchase, which is a service. A contractor may provide services such as painting and cleanup. To add a service item, display the New Item window, and choose Service from the Type drop-down list. In the Item Name/Number box, give the service a brief code or name. If the service is a subitem, select the Subitem Of check box and identify the parent item. Select the check box titled This Service Is Used in Assemblies or Is Performed by a Subcontractor or Partner if the service is provided by (as the window suggests) a subcontractor, owner, or partner. You indicate which services are performed by subcontractors, owners, and partners because these parties are subject to different tax accounting rules. Next, use the Description box to describe the service. Your description appears in invoices and purchase orders, so you want to be thoughtful here. Use the Rate box to describe the price or rate per unit of service. Use the Tax Code drop-down list to indicate whether the service is taxable. Finally, use the Account drop-down list to identify which income account should be credited when the item is sold to some customer, client, or patient. How to add an inventory part to the QuickBooks Item List Inventory parts are those items in invoices and purchase orders that represent physical goods that you buy, hold, and sell. If you’re a retailer, all that stuff that’s sitting out on the shelves of your store represents inventory. If you’re a manufacturer, the raw materials that you buy and then use to assemble your products represent inventory. To set up an inventory part, display the New Item window, and choose Inventory Part from the Type drop-down list. QuickBooks displays the Inventory Part version of the New Item window. Use the Item Name/Number box to provide a descriptive but brief code or name for the item. If the item is a subitem of some other parent item, select the Subitem Of check box and then identify the parent item by using the Subitem Of text box. The Purchase Information and Sales Information boxes let you determine the information that appears in purchase orders and invoices. The Description on Purchase Transactions box in the Purchase Information area, for example, lets you provide the text that QuickBooks displays in purchase orders. You can also guess at the purchase cost by using the Cost text box. Specify the cost of goods sold (COGS) account that should be debited when this item is sold by choosing it from the COGS Account drop-down list, and identify the preferred vendor for purchases of this item by choosing that vendor from the Preferred Vendor drop-down list. The Sales Information boxes provide the information that QuickBooks needs to correctly include the item in an invoice. The Description on Sales Transactions box provides a space that you can use to supply the description that QuickBooks should use for this item on your invoice. The Sales Price box enables you to provide your price for the item. If you’re subject to sales tax, you see (and should use!) the Tax Code drop-down list to specify whether the item is taxable or nontaxable for sales tax purposes. Finally, the Income Account drop-down list lets you specify which income account should be credited when this item is sold. If you’re confused about seeing three Account drop-down lists in the Inventory Part version of the New Item window, keep in mind that when you sell an item, you track the income by crediting an income account and the cost of goods sold by debiting the COGS account. Use the Inventory Information boxes to describe how QuickBooks should handle inventory tracking for the item. Use the Asset Account drop-down list, for example, to specify which account QuickBooks should use to track the dollar investment in this item. Typically, you use the Inventory Asset account, but you can conceivably use some other asset account. Use the Reorder Point boxes to identify the inventory stocking level at which you want QuickBooks to alert you to reorder the item. If you have inventory on hand for this item, enter the quantity that you have on hand and the value that you have on hand in the On Hand and Total Value boxes. You also specify the date as of which your quantity and value information is correct by using the As Of box. You really shouldn’t be entering inventory balances for an inventory item when you set it up in the Item list. You should be entering or changing inventory quantities and values when you purchase the inventory (recorded in the Create Purchase Orders window or the Write Checks window) and when you sell the inventory (typically recorded in the Create Invoices window or the Sales Receipts window). If you enter a quantity other than zero or a total value other than zero in the New Item window, you also need to make a journal entry to record the other half of the transaction. If this “other half” business sounds complicated, just trust me: You shouldn’t be entering quantity or value information in this window. If you do understand this “other half” business that I’m referring to, you should know better than to enter quantity or value information in the New Item window! You can click the Spelling button to check the spelling of words and phrases that you’ve entered in the New Item window. You can also click the Next button to save the information that you’ve entered for an item and redisplay the New Item window so that you can add another item. How to add a noninventory part to the QuickBooks Item List To add a noninventory part — which is a tangible good that you sell but for which you don’t track inventory — display the New Item window, and choose Non-Inventory Part from the Type drop-down list. When QuickBooks displays the Non-Inventory Part version of the New Item window, give the noninventory part a name or code by using the Item Name/Number box. If the new item is a subitem, select the Subitem Of check box and then identify the parent item by using the Subitem Of text box. Use the Description box to provide the description that should go in invoices that bill for this noninventory part. Obviously, you enter the price in the Price box. Use the Tax Code drop-down list to identify whether the item is subject to sales tax. Finally, use the Account drop-down list to identify the income account that should be credited for sales of this noninventory part. Note the check box labeled This Item Is Used in Assemblies or Is Purchased for a Specific Customer:Job. If you select that check box, QuickBooks displays a slightly different version of the Non-Inventory Part window. This version of the window includes Purchase Information and Sales Information areas that work the same way as the Purchase Information and Sales Information areas supplied by the regular Inventory Part version of the New Item window. How to add an other-charge item to the QuickBooks Item List An other-charge item is an item that you use to purchase or bill for things such as miscellaneous labor or services; materials that you aren’t tracking as inventory; and special charges, such as for delivery or setup or rush jobs. To set up an other-charge item, display the New Item window, and choose Other Charge from the Type drop-down list. When you do, QuickBooks displays the Other Charge version of the New Item window. To finish setting up your other charge item, give the charge a name or code or abbreviation by using the Item Name/Number box. If the other charge item is a subitem, select the Subitem Of check box and then identify the parent item by using the Subitem Of text box. Obviously, you use the Description box to provide a description of the charge. (Remember that this description appears in your invoices.) Use the Amount or % box to identify how the charge gets calculated or billed. Use the Tax Code drop-down list to identify the charge as subject to sales tax — or not subject to sales tax. Use the Account drop-down list to identify the income account that should be credited when you bill for this other charge. If you select the check box titled This Item Is Used in Assemblies or Is a Reimbursable Charge, QuickBooks adds a second set of boxes to the New Item window. One set of boxes, labeled Purchase Information, provides information that goes in purchase orders or is used to record purchases and purchase orders. The other set of boxes, labeled Sales Information, goes in invoices and sales receipts to record the actual sale or billing for the other charge. If you want to enter another charge that should be calculated as a percentage, you must enter the % symbol in the Amount or % box. To include an other-charge item in invoices that equals 25 percent of the previous item in the invoice, for example, enter 25% in the Amount or % box. How to add a subtotal item to the QuickBooks Item List If your purchase order, sales receipt, or invoice includes a subtotal line item, you create a subtotal item in your Item list. To do this, display the New Item window, and choose Subtotal from the drop-down list. Next, give the subtotal item a name or abbreviation, and use the Description box to describe the subtotal. Finally, check the column or columns you want QuickBooks to subtotal. (Usually, you want only the amount column to be totaled, but you can also have the quantity, price, and cost columns totaled too.) The figure shows the Subtotal version of the New Item window. If you’re using other charge items that are calculated as a percentage or discount items that are calculated as a percentage, you almost certainly need a subtotal item. Another charge that is calculated as a percentage typically would be calculated as a percentage of a subtotal item. Similarly, a discount item that’s calculated as a percentage is calculated as a percentage of a subtotal item. How to add a group item to the QuickBooks Item List A group item lets you more easily invoice customers when, from the customer’s perspective, he or she is buying a single item, but from your perspective, you’re actually selling several items. This definition sounds curious at first, but let me give you a quick example. Suppose that you’re a florist who does booming business on Valentine’s Day. Your best-selling items may be red roses and pretty crystal vases. But you probably don’t sell individual roses and individual vases. You actually sell a dozen roses with a single vase. Although you want to individually track purchases of dozens of red roses and individual crystal vases in your purchase orders, in your invoices to customers, you want to bill for “a dozen red roses in a crystal vase.” If that example doesn’t make sense, imagine a more complex floral arrangement including a dozen red roses, a crystal vase, baby’s breath, flower preservative, tissue-paper wrapping, ribbon, a box, and so forth. In this case, do you really want an invoice that shows perhaps 20 items? Or do you want an invoice that shows a single item: a dozen red roses in a crystal vase? This is why you create group items. A group item lets you create a single item that you use in invoices, but this group item actually combines a bunch of individual items that you’re probably using in your purchase orders. To create a group item, display the New Item window, and choose Group from the Type drop-down list. When QuickBooks displays the group version of the New Item window, use the Group Name/Number box to give the group item a name or code. Use the Description box to give the group item an appropriate description. Use the Item, Description, and Qty columns at the bottom of the window to identify the individual items and item quantities that combine to make a group. How to add a discount item to the QuickBooks Item List A discount item subtracts a fixed amount or a percentage from a subtotal. To set up a discount item, display the New Item window, and choose the Discount entry from the Type drop-down list. When you do, QuickBooks displays the Discount version of the New Item window. To set up your discount item, enter a name or abbreviation for the discount in the Item Name/Number box. If the discount item is a subitem, select the Subitem Of check box and then identify the parent item by using the Subitem Of text box. Typically, you describe the discount by using the Description box. Enter the amount of the discount in the Amount or % box as a dollar amount or as a percentage. (If you do enter the discount as a percentage, be sure to include the percentage symbol.) Use the Account drop-down list to specify which account gets debited for the discount. Finally, use the Tax Code drop-down list to indicate whether the discount is applied before sales tax. (In other words, indicate whether the discount is subject to sales tax.) If you set up a discount item that calculates the discount as a percentage, you probably also need a subtotal item. Then, in your invoices, follow the subtotal item with the discount item. In this manner, you can easily calculate the discount percentage by looking at the subtotal amount. How to add a payment item to the QuickBooks Item List If you sometimes accept payments at or before the point you invoice a customer, you can create a payment item and then add the payment item to the bottom of the invoice. If you do this, the invoice, the payment amount, and the net amount due all appear in the same document. That’s pretty cool. To set up a payment item, display the New Item window, and choose Payment from the drop-down list. QuickBooks displays the Payment version of the New Item window. Use the Item Name/Number box to give the payment item a code or name such as “payment.” Use the Description box to provide a nice description of the payment. (No kidding, you may want to include the phrase Thank you as part of the payment description, such as Payment … thank you!) Use the Payment Method drop-down list to identify the method of payment: American Express, check, cash, Discover, MasterCard, or Visa, as appropriate. Finally, use the radio buttons — Group with Other Undeposited Funds and Deposit To — to identify what happens to the money received as part of the payment. If you indicate that the money is deposited, you also choose the correct bank account from the Deposit To drop-down list. How to add a sales tax item to the QuickBooks Item List If you sell items that are subject to sales tax, you also include line items in your invoices that charge for and track these sales taxes. To do this, you create sales tax items. To create a sales tax item, display the New Item window, and choose Sales Tax Item from the Type drop-down list. When you do, QuickBooks displays the Sales Tax Item version of the New Item window. Use the Sales Tax Name box to identify or provide an abbreviation for the sales tax. Use the Description box to give the sales tax a description. Finally, use the Tax Rate (%) box to identify the sales tax rate and the Tax Agency (Vendor That You Collect For) drop-down list to identify the tax agency that you’ll pay.

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How to Set Up the QuickBooks 2019 Chart of Accounts List

Step by Step / Updated 04-16-2019

The QuickBooks 2019 Chart of Accounts list is a list of accounts that you use to categorize your income, expenses, assets, liabilities, and owner’s equity amounts. If you want to see a particular line item of financial data on a report, you need an account for that line item. If you want to budget by a particular line item, you need an account for that budget amount. If you want to report some bit of financial information on your tax returns, you need an account to collect that specific data. Fortunately, the steps for creating new accounts are quite straightforward. To set up a new account within your Chart of Accounts list, follow these steps:

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QuickBooks Troubleshooting for 2019

Article / Updated 03-31-2019

Here is a list of the best QuickBooks troubleshooting techniques for working through any problems you may have. After writing about QuickBooks for more than 20 years, I’ve had a revelation of sorts: People want not only specific, step-by-step information about how to use the program, but also troubleshooting advice. They want techniques and tactics that they can use to solve the inevitable problems that they encounter while using QuickBooks in real-life settings. The QuickBooks Help File—the best QuickBooks Troubleshooting Tool I know what you may be thinking: You have some problem that you can’t solve by using Help, and it’s either a bug or some glaring error in the QuickBooks documentation. In fact, upon further reflection, you may be thinking that you’ve encountered some problem that you can’t possibly solve by consulting the QuickBooks Help file. Maybe you’re right. But in my experience (gleaned from talking with people who have problems), about half the time, the problem is lack of knowledge about QuickBooks. These users may simply be experiencing a mechanical problem. They can’t make the program work because they haven’t used QuickBooks enough to figure out the problem. Therefore, the right way to solve this sort of problem is to find out more about QuickBooks and try again. If you’re having problems printing a report, for example, just finding out more about both printing and reports may enable you to solve the problem. In most cases, you should be able to find the information in this book by using the index or the table of contents. Also, you usually can find the information (perhaps in a slightly less-friendly form) in the QuickBooks Help file. To find information in the QuickBooks Help file, choose Help → QuickBooks Desktop Help to display the QuickBooks Help window, as shown here. Enter the word or phrase that you want to look up in the search box at the top of the Help window and then click the button that looks like a magnifying glass. QuickBooks displays a list of clickable links that may help you with whatever problem you’re having. The figure shows a list of Help topics related to the issue of working in a multiple-currencies situation. Browse Intuit’s Product-Support Website Another really good resource for troubleshooting is Intuit’s product-support website for QuickBooks. This website (see the figure), which you can visit by entering https://community.intuit.com/quickbooks-desktop in your web browser or by choosing the Help →Support command within QuickBooks, is a rich database of troubleshooting information. To use the site, enter your question or keywords from your question in the search box at the top of the window and then click Search (the magnifying-glass button). The product-support website displays a list of troubleshooting articles that may help solve your problem. Check Another Vendor’s Product-Support Website Keep in mind that your problem may not be a problem with QuickBooks at all, but a problem with your computer and its hardware or with Microsoft Windows. The Microsoft product-support website is phenomenally rich in information. If your problem stems from the hardware or the operating system, you can consult the hardware or software maker’s product-support website for troubleshooting information. Usually, you can find the hardware maker’s product-support website easily by using a good Internet search engine. To locate Dell Computer’s product-support website, for example, type something like HP Computer product support in a search engine such as Google. When the search engine searches on that phrase, it almost inevitably finds the URL (the address) of the vendor’s product-support web page. You can find troubleshooting information about Intuit products at the Microsoft product-support website. If the solutions that the site offers aren’t very reassuring, at least you can find out whether other users have experienced the same problem. Microsoft may simply suggest that you contact the vendor (Intuit, in this case) or that you upgrade to a newer version of the QuickBooks software. Often, however, it’s useful simply to know that the problem you’ve encountered is a real problem that Microsoft has logged into its product-support Knowledge Base and described in some technical detail. Tap into Intuit’s Online and Expert Communities In addition to the option of using the Intuit product-support website, you can get direct product support in at least two other ways: Online community: Visit the online community website website to connect with a huge group of usually friendly QuickBooks users. If you sign into the website with your QuickBooks sign-on credentials — the same ones you use to register — you can not only view other questions and answers, but also ask your own questions. (After you’ve used QuickBooks for a while, maybe you can even answer some other users’ questions!) Professional adviser: You can contact a QuickBooks professional adviser via the QuickBooks website. In a nutshell, QuickBooks professional advisers are people (often, accountants and consultants) who signed up with Intuit to get copies of the QuickBooks software at a discount price, a listing on the QuickBooks product-support website, and access to special training. (Some of these people also take a test and pay extra money to be listed as certified advisers.) You pay these professional advisers their usual consulting fees, but let me suggest that this support option can be very useful when your problem isn’t so much a technical problem with QuickBooks as it is a problem with how to use QuickBooks to solve some accounting issue. When All Else Fails … If you try at least a few of the preceding troubleshooting tactics and can’t get an answer, here's one other suggestion: Bite the bullet, call your CPA, and get him or her to help you through the rough patches. You’re going to pay $200 an hour or whatever. And you paid — what, only a few hundred bucks for QuickBooks in the first place? But here’s the deal: Your accounting system is an essential business tool. It must work smoothly and correctly to produce the information you need to operate your business successfully. Paying for an hour or two of expert, onsite, personalized accounting expertise can be a great investment. And what if your accountant doesn’t or can’t provide this sort of assistance? Well, shoot, you should find somebody who does and can.

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How to Edit Items on the QuickBooks 2019 Item List

Article / Updated 03-31-2019

You can change item information on the QuickBooks Item List. To do so, display the Item List window and then double-click the item. When you do this, QuickBooks displays the Edit Item window, which resembles the New Item window. The difference is that the Edit Item window is already filled in with the item information. To change some bit of item information, edit the contents of the field with the information to be updated. Click OK to save your changes. How to adjust Physical Counts and Inventory Values Inventory shrinkage, spoilage, and (unfortunately) theft all combine to reduce the inventory that you physically have. To record these inventory reductions, you periodically physically count your inventory and then update your QuickBooks records with the results of your physical counts. To record your physical count information in QuickBooks, you use a special tool. Specifically, you use the Adjust Quantity/Value on Hand command. This command is available to you in two places. If you display the Item list, click the Activities button (which appears at the bottom of the Item List window) and choose the Adjust Quantity/Value on Hand command. You can also choose the Inventory→Adjust Quantity/Value on Hand command. (The Inventory menu item was added to the 2018 version of QuickBooks, so it’s more convenient than in previous versions.) Choosing either command displays the Adjust Quantity/Value on Hand window. To use the Adjust Quantity/Value on Hand window, follow these steps: Use the Adjustment Type drop-down list to indicate what you’re adjusting. You can adjust the quantity or the value or both the quantity and the value of the items you’re holding in inventory. Just choose the appropriate entry from the Adjustment Type drop-down list: Quantity, Total Value, or Quantity and Total Value. Use the Adjustment Date box to record the date of your physical count. In other words, you want to adjust your quantities as of the day you took or completed the physical inventory count. Use the Adjustment Account drop-down list to identify the expense account that you want to use to track your inventory shrinkage expense. (Optional) Provide a reference number (if you use numbers) to uniquely and meaningfully identify or cross-reference the transaction. (Optional) Identify the Customer:Job and class. If it’s appropriate (in many cases, it won’t be), use the Customer:Job drop-down list to identify the customer and job associated with this inventory shrinkage. In a similar fashion, if appropriate, use the Class drop-down list to identify the class that you want to use for tracking this inventory shrinkage. Supply the correct inventory quantities. The Item, Description, and Qty on Hand columns of the Adjust Quantity/Value on Hand window identify the inventory items that you’re holding and the current quantity counts. Use the New Quantity column to provide the correct physical count quantity of the item. After you’ve entered the new quantity, QuickBooks calculates the quantity difference and shows this value in the Qty Difference column. You can actually enter a value in the New Quantity column or the Qty Difference column. QuickBooks calculates the other quantity by using the current quantity information that you supply. If you enter the new quantity, QuickBooks calculates the quantity difference by subtracting the new quantity from the current quantity. If you enter the quantity difference, QuickBooks calculates the new quantity by adjusting the current quantity for the quantity difference. Adjust the value. If you chose Total Value or Quantity and Total Value from the Adjustment Type drop-down list in Step 1, QuickBooks displays an expanded version of the Adjust Quantity/Value on Hand window. This window lets you enter both the correct physical count quantity and the updated value for the inventory item. You enter the physical count quantity, obviously, in the New Quantity column. You enter the new updated value in the New Value column. You probably use this version of the Adjust Quantity/Value on Hand window only if you’re using a lower-of-cost or market inventory valuation method. Both financial accounting standards and tax accounting rules allow you to mark down your inventory to the lower of its original cost or its fair market value. If you’re doing this, you enter the new inventory value in the New Value column. Essentially, using the lower-of-cost or market inventory evaluation method just means that you do what it says. You keep your inventory valued at its original cost or, if its value is less than its original cost, at its new value. Obviously, assessing the value of your inventory is a little tricky. But if you have questions, you can ask your CPA for help. One thing to keep in mind, however, is that you can’t go changing your accounting methods willy-nilly without permission from the Internal Revenue Service. And changing your inventory valuation method from cost, say, to lower-of-cost or market is a change in accounting method. Provide a memo description. If you want to further describe the quantity or value adjustment, use the Memo box for this purpose. You may want to reference the physical count worksheets, the people performing the physical count, or the documentation that explains the valuation adjustment. Save the adjustment. After you’ve used the Adjust Quantity/Value on Hand window to describe the quantity changes or value changes in your inventory, click either the Save & Close button or the Save & New button to save the adjustment transaction. As you probably know at this point in your life, Save & Close saves the transaction and closes the window. Save & New saves the transaction but leaves the window open in case you want to make additional changes. Adjust Prices and Price Levels in QuickBooks 2019 QuickBooks provides a couple of handy commands and tools that you can use to change the prices that you charge customers for your products and services. How to use the Change Item Prices command The Change Item Prices command, which appears on the Customers menu, displays the Change Item Prices dialog box, as shown. This dialog box lets you change prices of a bunch of items at one time by an amount or percentage. To use the Change Item Prices dialog box, first select the items whose prices you want to change by clicking the check-mark column. Next, use the Adjust Price of Marked Items by (Amount or %) box to specify the dollar amount or the percentage amount by which you want to change the price. If you want to change the price of selected items by $2, for example, enter $2 in the box. If you want to change the price of selected items by 5 percent, enter 5% in the box. Use the Based On drop-down list to indicate the base to which you want to add the amount of percentage. After you identify the items that you want to reprice and the way that you want to reprice them, click the Adjust button. QuickBooks recalculates the prices and displays this information in the New Price column. If you want to change the prices for the items selected, click OK. If you don’t like the prices listed in the New Price column, you can keep tinkering with the value in the Adjust Price of Marked Items by (Amount or %) box, clicking the Adjust button to refresh the numbers in the New Price column, and clicking OK only when you’re satisfied. How to use price levels in QuickBooks 2019 Price levels are kind of weird; they let you individually adjust the price of an item up or down. If you’ve agreed to discount items by 10 percent for a certain customer, for example, you can easily do this by using a price level to knock the price down by 10 percent whenever you’re invoicing that customer. To use price levels, you first have to set up the price levels by using the Price Level List command. After you set up your price levels, you adjust prices by using price levels when you create an invoice. Creating a price level To create a price level, choose the Lists →Price Level List command. When you do, QuickBooks displays the Price Level List window (not shown). To create a price level, click the Price Level button and then choose Price Level → New. QuickBooks displays the New Price Level dialog box, as shown. Name the price level change by using the Price Level Name box. Select the items to which you want to apply the price level by clicking them. (QuickBooks marks selected items with a check.) Then use the Adjust Price of Marked Items to Be boxes to indicate that this price level increases or decreases the sales price some percentage higher or lower than the standard price. Finally, use the Round Up to Nearest drop-down list to specify whether and how QuickBooks should round off its calculations. The figure, for example, shows a price level change that decreases the sales price by 10 percent. Once you select the items that the price level should affect, click the Adjust button to see the new price for each item in the custom price column. Using a price level To use a price level, you create an invoice in the usual way. Click the Price Each column for the item that you want to reprice by using the price level. When you do, QuickBooks turns the Price Each column into a drop-down list. If you click the arrow button that opens the drop-down list, QuickBooks displays both the base rate price and any price levels. If you choose a price level, QuickBooks adjusts the price for the price level change. In the figure, selecting the 10 percent price level change bumps the price from $3.00 to $2.70. In other words, the “10% Decrease” price level change decreases the default price by 10 percent, or 30 cents. QuickBooks also lets you set a default price level for a customer. When such a default price level is set, QuickBooks automatically uses the appropriate price level when you choose that customer. The Price Level box appears on the Additional Info tabs of the New Customer and Edit Customer windows. How to enable advanced pricing for QuickBooks Items One more thing you should know about setting prices. QuickBooks also provides an advanced pricing function, which you turn on by choosing the Edit →Preferences command, selecting the Sales & Customers preference, clicking the Company Preferences tab, and then selecting the Enable Advanced Pricing button. When you enable advanced pricing, you convert any price levels you’ve previously defined (see preceding paragraphs) to price rules that you can tell QuickBooks to apply to items, item types, particular vendors, customers, customer types, and job types. After you turn on advanced pricing, you can choose the Lists →Price Rule List command to display the Price Rule List window. To convert a price level to a working price rule, double-click the new price rule and then use the Edit Price Rule dialog box (not shown) to describe the rules QuickBooks should use for automatically repricing some item according to your specified rules. This feature is Enterprise-only.

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How to Set Preferences in QuickBooks 2019 to Handle Taxes

Article / Updated 03-31-2019

You can fine-tune how QuickBooks 2019 works for you by setting QuickBooks preferences. If you indicate that you charge customers sales tax, for example, the EasyStep Interview describes how sales tax should work for your business by using the sales tax preferences. In fact, just so you know, much of what you do when you run QuickBooks Setup via the Detailed Start route (also known as the QuickBooks EasyStep Interview) is provide information that QuickBooks uses to fine-tune. How to set payroll in QuickBooks preferences The Payroll & Employees Preferences set includes only the Company Preferences tab, shown. The QuickBooks Payroll Features radio buttons let you tell QuickBooks how you want to handle payroll: Full payroll (if you have signed up for Enhanced or Assisted Payroll), No payroll (if you use an outside service like Paychex/ADP or don’t process payroll), or Online payroll (if you’ve signed up for that service from Intuit). Note that QuickBooks displays only radio buttons that make sense given the version of QuickBooks you’ve selected. The Pay Stub & Voucher Printing button lets you tell QuickBooks what employee information to print on the payroll check: employee address, company address, sick-pay information, vacation-pay information, and pay-period information. You can figure out how this works by clicking the button and looking at the dialog box that QuickBooks displays. The Workers Compensation button lets you fiddle with the way that QuickBooks tracks information related to your workers’ compensation tax. The Sick and Vacation button lets you fine-tune how QuickBooks monitors employee sick- and vacation-pay accrual and use. Again, click either of these buttons to see a screen that provides more information about how the button works. In roughly the middle of the Company Preferences tab of the Payroll & Employees Preferences dialog box, QuickBooks supplies several other check boxes and radio buttons: Copy Earnings Details from Previous Paycheck: Another duh. Recall Quantity Field on Paychecks: QuickBooks recalls or reuses paycheck quantity information from the last pay period’s paychecks. (The QuickBooks Help file suggests that you use this option when you have a “fixed quantity that occurs from paycheck to paycheck.” The Help file uses the example of tiered sales commissions where the commission amount is set for each tier.) Recall Hour Field on Paychecks: QuickBooks recalls or reuses hours-worked information from the last pay period’s paychecks. You use this option when you have a fixed number of hours that occurs from paycheck to paycheck. Job Costing, Class, and Item Tracking for Paycheck Expenses: QuickBooks lets you track payroll expenses not just by account, but also by job, class, or item. Assign One Class Per: The Entire Paycheck and Earnings Item options enable you to break wage expenses into classes more finely. You can indicate, for example, that you want to use a different class for each item that appears on an employee’s paycheck. (Note: These options appear only if classes are enabled.) The Display Employee List By radio buttons let you choose how employee lists are sorted on reports: by first name or by last name. If you click the Employee Defaults button, QuickBooks displays a dialog box that you can use to set employee payroll default information, such as deductions for taxes or health insurance. Finally, at the bottom of the dialog box, QuickBooks provides two other options for handling payroll. The Mark New Employees As Sales Reps check box, if selected, does what you’d expect: It marks new employees that you add to the Employee list as sales reps. And the check box titled Display Employee Social Security Numbers in Headers on Reports, if selected, also does what you’d expect: It adds employee Social Security numbers to reports. Specify how sales are taxed in QuickBooks Although no personal QuickBooks preferences are available for sales tax, company preferences do exist. The figure shows the Company Preferences tab of the Sales Tax Preferences dialog box. The Do You Charge Sales Tax? radio buttons, which appear at the top of the tab, control whether you can charge sales tax within QuickBooks. You select the radio button — Yes or No — that answers the question. The Taxable Item Code and Non-Taxable Item Code drop-down lists let you define what code QuickBooks should use to identify taxable and nontaxable sales. By default, QuickBooks uses the clever “tax” code for taxable sales and the equally clever “non” code for nontaxable sales. You can choose the Add New entry from either drop-down list, however, and use the dialog box that QuickBooks displays to create your own taxable and nontaxable codes. The Set Up Sales Tax Item and Assign Sales Tax Codes sections let you set up an item for the sales tax that you charge on invoices. You can indicate the default (or most common) sales tax item that you want to include by entering this sales tax item name in the Your Most Common Sales Tax Item combo box. To add the sales tax item, choose Add New from this drop-down list and complete the dialog box that QuickBooks displays. The New Item dialog box lets you name the sales tax item and identify the sales tax rate. You can also add a new sales tax item by clicking the Add Sales Tax Item button. The Taxable Item Code and Non-Taxable Item Code drop-down lists let you select the code words to designate invoice items as subject to sales tax. The check box titled Identify Taxable Amounts as “T” for “Taxable” When Printing, if selected, tells QuickBooks to flag taxable amounts on an invoice with the code T. The When Do You Owe Sales Tax? radio buttons let you indicate when the taxing authority says you owe sales tax: as of the invoice date (which means that the taxing authority requires accrual-basis accounting) or upon receipt of payment (which means that the taxing authority allows cash-basis accounting). The When Do You Pay Sales Tax? radio buttons (Monthly, Quarterly, and Annually) let you tell QuickBooks how frequently you must remit sales tax amounts. You select the radio button that corresponds to your sales tax payment frequency. How QuickBooks 1099 Preferences Work No personal preferences exist for 1099 tax reporting. Company preferences exist, however, as indicated by the Company Preferences tab, shown. This tab lets you tell QuickBooks when you’re required to file 1099-MISC forms (answer the Do You File 1099-MISC Forms? question by selecting the Yes radio button). The tab also lets you map QuickBooks accounts to the different boxes on the 1099 form you use to report payments to independent contractors. (To do this, click the Click Here hyperlink.) Confer with your tax adviser if you have questions about these boxes or the 1099 reporting threshold amounts, or visit the IRS website. How to Set Checking Preferences in QuickBooks 2019 If you display the Preferences dialog box and click the Checking icon, QuickBooks displays either the My Preferences tab or the Company Preferences tab. The My Preferences tab of the Checking Preferences dialog box lets you tell QuickBooks which account it should suggest as a default account when you open particular types of windows within QuickBooks. If you look closely at the My Preferences tab, you see the Open the Write Checks box, which is the first check box on the tab. To the right of the Open the Write Checks box, you see the Form with X Account drop-down list. If you select the Open the Write Checks check box, you can choose an account from the Form with X Account drop-down list. This setting tells QuickBooks to use or suggest the specified account every time you open the Write Checks window. The My Preferences tab also includes check boxes that you can use to specify the default account for the Pay Bills window, the Pay Sales Tax window, and the Make Deposits window. If you have multiple checking accounts set up, setting the default accounts by using the My Preferences tab is a good idea. Setting these preferences makes it less likely that you’ll erroneously write checks on or pay bills from the wrong account. The Company Preferences tab, shown, provides check boxes that you can use to describe how checks work within QuickBooks: Print Account Names on Voucher: This check box lets you indicate to QuickBooks that it should print account names on the voucher portion of the check. Change Check Date When Non-Cleared Check Is Printed: Select this check box to tell QuickBooks to use the current system date as the printed check date. Start with Payee Field on Check: Select this check box to tell QuickBooks to place the insertion point, or text cursor, in the Payee field when you open the Write Checks window. Warn about Duplicate Check Numbers: Selecting this check box tells QuickBooks to alert you to duplicate check numbers. (You want to leave this check box selected, obviously, so that you don’t use duplicate or erroneous check numbers.) Autofill Payee Account Number in Check Memo: Select this check box to tell QuickBooks to automatically fill in the payee account number when you write a check. QuickBooks retrieves the account number for a payee from the Vendor list or from the Other Names list. Select Default Accounts to Use: These check boxes let you specify which account QuickBooks suggests when you open the Create Paychecks window or open the Pay Payroll Liabilities window. Essentially, then, these boxes let you tell QuickBooks which checking account you use to write payroll checks and to pay payroll liabilities, such as federal income tax withholding amounts. Bank Feeds: If you’ve turned on online banking for QuickBooks, QuickBooks provides option buttons you can use to change the way that online transaction information appears in the online banking window.

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How to Set Up Master File Lists in QuickBooks 2019

Article / Updated 03-31-2019

When you set up QuickBooks 2019, as a practical matter, you not only create a company file that you’ll use to store financial information about your business, but also set up master file lists, such as the QuickBooks Item List and QuickBooks Class List. These master file lists store information that you can use and reuse. One of the master file lists describes each of your customers; this master file of customer information includes the customer’s name and address, contact information, account numbers, and so on. Quickbooks Item List If you choose the Lists → Item List command, QuickBooks displays the Item List window, as shown. The Item List window lists all the items that you’ve set up as part of running QuickBooks Setup and items that you’ve added manually since running the Setup Wizard. The QuickBooks 2019 Price Level List The Price Level list lets you create price adjustments that you can use on the fly as you invoice customers, issue credit memos, and so forth. Sales Tax Codes in QuickBooks 2019 The Sales Tax Code list keeps a list of codes, or abbreviations, that you can use to describe items as taxable or nontaxable. If you choose this command, QuickBooks displays a window listing the existing sales tax codes. (Usually, you see two existing codes: Tax and Non.) The Sales Tax Code list doesn’t appear unless you tell QuickBooks to track sales tax during setup or afterward. To add sales tax codes, take the following steps: Choose Edit → Preferences. Click the Sales Tax item in the preferences list. Click the Company Preferences tab. Answer the Do You Charge Sales Tax question by clicking the Yes box. To add a new sales tax code, click the Add Sales Tax Item, and describe the new sales tax when QuickBooks displays the New Item dialog box (not shown) by naming the sales tax item, describing it briefly, and then providing the sales tax rate and tax agency. How to Set Up a Payroll Item List in QuickBooks 2019 The Payroll Item list identifies items that appear on employee payroll check stubs. If you’re using an outside payroll service bureau to handle your payroll — and this isn’t a bad idea — you don’t even need to worry about the Payroll Item list. If you’re using the QuickBooks Enhanced Payroll Service, again, don’t worry about the Payroll Item list. (In either case, the QuickBooks folks set up the payroll items that you use for recording payroll.) And in the case of Intuit’s full-blown “we-do-everything” Payroll Service, you don’t even need to track payroll inside QuickBooks, because the QuickBooks people do it at their office location on their computers. If you do need to add payroll items, follow these steps: 1. Choose the Lists → Payroll Item List command. QuickBooks displays the Payroll Item list window. 2. To add a new Payroll Item, click the Payroll Item button and then choose Payroll Item → New. QuickBooks displays the Add New Payroll Item dialog box (not shown). You can choose to set up a new payroll item by using either the EZ Set Up method or the Custom Set Up method: EZ Set Up: If you want QuickBooks to help you, and you’re setting up a common payroll item, click the EZ Set Up button, click Next, and simply follow the onscreen instructions. Custom Set Up: If you want to perform a custom setup of a payroll item, click the Custom Set Up button and then click Next. QuickBooks walks you through a multiple-screen interview that asks you about the payroll item to set up. The first dialog box that QuickBooks displays, for example, asks you to identify the type of payroll item that you want to create. You answer this question by selecting one of the radio buttons and then clicking Next. 3. Name the payroll item. After you identify the type of payroll item, you name it. QuickBooks provides another version of the Add New Payroll Item dialog box that includes a field you fill in to give the new item a name. 4. To finish the payroll item setup, click the Next button to move through the remaining payroll item setup questions. You identify the name of the government agency to which the liability is paid, the taxpayer identification number that uniquely identifies you to the taxing agency, the liability account that you use to track the items, the tax-form line that you use to report the item, the rules that QuickBooks should use for calculating the item (such as whether the item is subject to taxes), and a couple of other miscellaneous pieces of data. After you supply all this information and click the Finish button (which appears in the last Add New Payroll Item window), QuickBooks adds the new payroll item to the Payroll Item list. The Payroll Item menu supplies commands that are useful for working with the Payroll Item list. In addition to the commands that you use to add an item to the list, the menu supplies commands for deleting payroll items, renaming payroll items, making payroll items active, and printing the list of payroll items. How to Set Up the QuickBooks 2019 Class List QuickBooks lets you use classes to segregate or track financial data in ways that aren’t possible when you use other bits of accounting information, such as the account number, the customer, the sales rep, the item, and so forth. A firm can use classes, for example, to segregate financial information by stores, business units, or geographical territories. To set up classes, follow these steps: 1. Choose the Lists → Class List command. QuickBooks displays the Class List window, as shown. If you don’t see the Class List command, choose Edit → Preferences, click the Accounting icon, click the Company Preferences tab, and select the Use Class Tracking for Transaction check box. 2. To create a new class, choose Class → New at the bottom of the window. QuickBooks displays the New Class dialog box, as shown. 3. To name the new class, enter a name or abbreviation in the Class Name box. Note that you enter the class name whenever you record a transaction that falls into the class. For this reason, you don’t want to create lengthy or easy-to-mistype class names. Keep things short, simple, and easy. 4. If the class that you’re setting up is actually a subclass of a parent class, select the Subclass Of check box and then choose the parent class from the Subclass Of drop-down list. 5. Click OK to save the class. Alternatively, click Cancel to not save the class or click the Next button to save the class and redisplay the New Class dialog box. If you don’t want the class to be used anymore, you can select the Class Is Inactive check box. The Class menu, which appears when you click the Class button, also supplies commands for editing the information of the selected class, for deleting the selected class, for making the selected class inactive, and for printing a list of classes, as well as several other useful commands. All these commands are pretty straightforward to use. Experiment with them to find out how they work. How to Set Up a QuickBooks 2019 Customer List A Customer list keeps track of all your customers and customer information, such as billing and shipping addresses. Follow these steps to add a customer to the Customer list: 1. Choose the Customers → Customer Center command. QuickBooks displays the Customer Information window. 2. To add a new customer, click the New Customer & Job drop-down list and then choose the New Customer command. QuickBooks displays the New Customer window. 3. Use the Customer Name box to give the customer a short name. You don’t need to enter the customer’s full name in the Customer Name box. That information can go in the Company Name box, shown on the Address Info tab. You just want some abbreviated version of the customer name that you can use to refer to the customer within the QuickBooks accounting system. 4. (Optional) If you bill your customer in a currency different from your usual home currency, choose that currency from the Currency drop-down list. If you told QuickBooks that you work in multiple currencies — you would have done this during the EasyStep Interview setup process — QuickBooks wants you to identify when you invoice a customer and collect payments from a customer in a currency different from your home currency. 5. (Usual rule) Ignore the Opening Balance and As Of boxes. You typically don’t want to set the customer’s opening balance by using the Opening Balance and As Of boxes. That’s not the right way to set your new customer accounts receivable balance. If you do this, you’re essentially setting up the debit part of an entry without the corresponding credit part. Later, you’ll have to enter crazy, wacky journal entries to fix your incomplete bookkeeping. But an exception to the usual rule exists, as discussed in the tip that follows. 6. Use the boxes of the Address Info tab to supply the company name and contact information, including contact name, phone numbers, fax numbers, email addresses, billing and shipping addresses, and so on. I’m not going to tell you that you should enter somebody’s first and last name in the Full Name boxes or that the phone numbers of your customer go in the boxes labeled Main Phone and Work Phone. 7. Click the Payment Settings tab to display the set of boxes shown. You can record the customer’s account number, his or her credit limit, payment terms, preferred payment and delivery methods, and even credit card information. Note that the Online Payments check boxes let you indicate a customer can pay you using a credit card or bank transfer — but you need to have set up these services already. If you haven’t set up the services, QuickBooks prompts you to set them up when you check one of these boxes. 8. (Optional) If you’re tracking sales taxes, click the Sales Tax Settings tab to display the boxes you’ll use to identify this customer’s sales tax rate. The Sales Tax Settings tab, for example, includes a Tax Code drop-down list that you use to indicate which sales tax code applies to this particular customer. You can also identify the actual sales tax item and, if relevant, the resale number. 9. Supply a bit of additional information about the customer. If you click the Additional Info tab, QuickBooks displays several other boxes that you can use to collect and store customer information. You can use the Customer Type drop-down list, for example, to categorize a customer as fitting into a particular customer type. And you can use the Rep drop-down list to identify the customer’s default sales rep. Finally, you can click the Define Fields button to specify additional fields that you want to collect and report for the customer. 10. (Optional) Click the Job Info tab to describe the customer job. The Job Info tab lets you describe information associated with a particular job being performed for a customer. You use the Job Info tab if you not only set up a customer, but also set up a job for that customer. 11. When you finish describing the customer, click the Save & Close or Save & New button to save your description. Set Up the Vendor List in QuickBooks Just as you use a Customer list to keep records of all your customers, you use a Vendor list to keep records of your vendors. Like a Customer list, a Vendor list lets you collect and record information, such as the vendor’s address, the contact person, and so on. To add a vendor to your Vendor list, follow these steps: 1. Choose the Vendors → Vendor Center command. When you do, QuickBooks displays the Vendor Information window. 2. To add a new vendor, click the New Vendor drop-down list and then choose New Vendor. QuickBooks displays the New Vendor window. 3. Give the vendor a name in the Vendor Name box. As is the case with the Customer list, you use this name to refer to the vendor within QuickBooks. For this reason, an abbreviation is fine. You just want something easy to enter and easy to remember. 4. (Optional) If you pay your vendor in a currency different from your usual home currency, choose that currency from the Currency drop-down list. If you told QuickBooks that you work in multiple currencies — you would have done this during the EasyStep Interview setup process — QuickBooks wants you to identify when you receive bills from or pay a vendor in a currency different from your home currency. 5. (Usual rule) Ignore the Opening Balance and As Of fields. Don’t do anything with the Opening Balance and As Of boxes. People who don’t know better use those boxes to enter the opening balance owed a vendor and the date the amount is owed, but these entries only create problems later. At some point in the future, this poor soul’s accountant will need to find and correct this error. As when you add new customers, however, an exception to the usual rule exists, as discussed in the tip that follows. Although the usual rule is that you don’t want to set an opening balance for a vendor, this rule has an important exception. You record your accounts payable balance on the conversion date by setting an opening balance for each vendor as of the conversion date. The sum of these opening balances is what QuickBooks uses to determine your total accounts payable on the conversion date. 6. Supply the vendor address information. The Address Info tab supplies a bunch of easy-to-understand boxes that you use to collect vendor name and address information. You enter, predictably, the vendor’s full name in the Company Name box. You can click the Edit buttons on the Address Info tab to display another dialog box called the Edit Address Information dialog box, which lets you enter the address in typical street address, city, state, and zip-code format. The Edit buttons appear to the right of the Billed From and Shipped From address blocks. 7. Supply any additional information necessary. The Payment Settings tab collects the most relevant vendor information, including account number, credit limit, and payment terms, but if you click the Tax Settings tab, the Account Settings tab, or the Additional Info tab, QuickBooks displays a handful of other boxes that you can use to collect and store information: The Tax Settings tab lets you collect the vendor’s tax identification number so that you can (as sometimes required by federal tax laws) send the vendor a Form 1099 at the end of the year. The Account Settings tab lets you specify which accounts QuickBooks should use to prefill account fields when entering a transaction for the vendor. The Additional Info tab lets you categorize the vendor according to type and also lets you create other custom fields. If you’re paying a vendor for the first time, a good guideline is to get his tax ID number. If somebody won’t give you his tax ID number — thereby making it impossible for you to report payments that you make to him — it’s probably a sign that something is a bit amiss. 8. Click OK. The New Vendor window closes, and you go back to the Vendor Center. If you click the Account Settings tab (the fourth tab available in the New Vendor window), QuickBooks displays boxes you can use to list the accounts that you want QuickBooks to fill in for you automatically when you record a check to some vendor or when you record a bill from some vendor. If the check to the phone company pays telephone expenses, for example, you could tell QuickBooks to prefill that expense category the next time you enter a bill or record a check to pay that vendor. It won’t enter an amount, as (obviously) the amount can change, but you won’t have to search all your accounts to find telephone expenses if you use this option. Set Up a Fixed Assets List in QuickBooks If you choose the Lists → Fixed Asset Item List command, QuickBooks displays the Fixed Asset Item list window. You can use this window to see a list of the fixed assets — furniture, equipment, machinery, vehicles, and so forth — that you’ve purchased. That is, you can see this list after you click the Item drop-down list, choose New, and fill in the New Item window for each fixed asset. The Fixed Asset Item list doesn’t really integrate with the QuickBooks general ledger. You record the purchase or disposal of fixed assets by using regular old QuickBooks transactions. You might record the purchase of a particular fixed asset simply by entering a check in the usual fashion. And you might record the disposal of a fixed asset by entering a general ledger journal entry. The Fixed Assets Item list, then, just acts as a stand-alone list that lets you track the fixed assets you purchased. Set Up a QuickBooks Price Level List A price level changes the sales price up or down when you do things like invoice. You might create a price level that amounts to a preferred customer discount on specified items. When you create an invoice for those items, rather than use the standard price for the item (which appears in the Create Invoice window’s Price column), you could select the price level preferred customer discount (in the Price column) to use the discounted preferred customer. To create a price level, choose the Lists → Price Level command. When QuickBooks displays the Price Level list window (not shown), click the Price Level drop-down list and then choose New. When QuickBooks displays the New Price Level dialog box, give the price level a name in the Price Level Name text box, use the Price Level Type box and list to specify to which items the price level applies, and then use the Adjust Price and Rounding boxes to set the new price level’s prices. When you click OK, QuickBooks redisplays the Price Level list window — this time with your new price level. You can edit and delete existing price levels by using other commands that become available when you click the Price Level button. Set Up a QuickBooks Billing Rate Level List A billing rate sets the amount that you charge for service items. Whereas a law firm might sell only hours of legal advice, for example, the item “legal advice” would be billed at different rates for different attorneys. An attorney just out of law school might have his or her time billed at one rate, whereas a senior partner in the firm might bill at another, probably much higher rate. To set up a billing rate, you choose the Lists → Billing Rate Levels List command. When QuickBooks displays the Billing Rate Level window (not shown), click the Billing Rate Level drop-down list and then choose New to display the New Billing Rate Level dialog box. You use the New Billing Rate Level dialog box to define a billing rate, giving the billing rate level a name, and then set a fixed hourly rate for the billing-rate level or different hourly rates for different service items. After you create billing-rate levels with the Billing Rate Levels List command, by the way, you need to connect those levels with specific employees so that the correct rate gets used when an employee’s time is billed. To do this, display the Employee Center window by choosing the Employees → Employee Center command. Then right-click the employee, choose Edit Employee from the shortcut menu, click the Additional Info tab when QuickBooks displays the Edit Employee dialog box, and select the appropriate billing rate in the Billing Rate Level list box. Set Up the Profile Lists If you choose the Lists → Customer & Vendor Profile List command, QuickBooks displays a submenu of commands that you use to create some of the mini lists that QuickBooks uses to ease your bookkeeping and accounting. The Profile lists include lists of sales reps, customer types, vendor types, job types, payment terms, customer messages, payment methods, shipping methods, and vehicles. Most of the Profile lists are pretty darn simple to use. If you choose the Sales Rep list command, for example, QuickBooks displays the Sales Rep list window. Then you click the Sales Rep drop-down list and choose New. QuickBooks displays the New Sales Rep dialog box. In case you’re still experiencing a certain amount of accounting anxiety, let me just point out that you enter the name of the sales representative in the Sales Rep Name box. Then, throwing caution to the wind, you enter the sales rep’s initials in the Sales Rep Initials box. When you click OK, QuickBooks adds the sales rep to your Sales Rep list. The other Profile lists work in the same simple, scaled-down fashion. You choose the Profile list from the submenu, click the Profile List button, and choose New. When QuickBooks displays a window, you use one or two boxes to describe the new Profile list.

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How to Pay Employees in QuickBooks 2019 Basic Payroll

Article / Updated 03-31-2019

For the self-employed or small business owner, QuickBooks 2019 provides two do-it-yourself options for paying employees: Basic Payroll (which usually means that your accountant helps you with the payroll tax forms) and Enhanced Payroll (which means that QuickBooks helps you with the payroll tax forms). With the Basic Payroll option, you do most of the work yourself, but you don’t pay very much for your payroll processing. A third payroll option would be QuickBooks Assisted Payroll. With this option, you handle paying your employees within QuickBooks, and then Intuit handles the tax payments and filing necessary payroll tax forms. Set up QuickBooks 2019 Basic Payroll To set up do-it-yourself payroll, you step through a web-based interview. To start this interview, choose Employees →Payroll → Turn on Payroll in QuickBooks. QuickBooks displays the page shown. You may need to click a button to expand the Turn on Payroll in QuickBooks window so that you see both the Basic and Enhanced options. In essence, if you choose the Basic Payroll option, either you or your accountant will need to remit payroll taxes and then prepare and file payroll tax returns. If you choose the Enhanced Payroll option, QuickBooks will help you remit the payroll tax deposits and then prepare (or mostly prepare) the payroll tax returns for you. You choose the payroll option you want by clicking its Try It Free button. QuickBooks displays another page of information that describes your payment options and any special discounts. (Sometimes you get better pricing and a special discount by signing up for a year, for example.) Intuit’s pricing for its payroll services changes, but at the time I’m writing (summer 2018), the Basic Payroll service costs around $250 per year, and Enhanced Payroll service costs approximately $400 per year. Each cost increases depending on the number of employees you have and number of checks issued. To choose the Basic Payroll option, click the Continue button when QuickBooks displays the next screen of additional information about the pricing and features of that option. Then QuickBooks collects your credit card information (so that it can bill you for the service). Sign up for a payroll service To sign up for the payroll service after you’ve selected a particular option, you fill in a series of web-page forms. Along the way, you enter your business name and address, and give your firm’s employer identification number (EIN). To move through the web-page forms, click the Continue and Back buttons. QuickBooks steps you through the sign-up process very efficiently. Simply follow the onscreen instructions to describe how your company processes payroll. But let me issue a warning: When you do set up your company information for payroll, QuickBooks asks for a bunch of information. You do need to fully describe how you pay your employees, to whom you remit deductions, and other stuff like that. Carefully read the instructions that QuickBooks provides, which takes some time. If you get into trouble, you may want to get an outside accountant’s help to set up the Enhanced Payroll service or consider the Assisted Payroll option. Set up employees After you set up your company information for payroll, you’re ready to set up employees for payroll. As part of the Basic Payroll setup process, QuickBooks displays a web page where you can add your employees. You can also add employees by displaying the Employees Center. (Choose Employees → Employee Center, and click the New Employee button.) When you click the New Employee button, QuickBooks displays the Personal tab of the New Employee window, as shown. To describe an employee, you complete the fields supplied on the Personal tab. All this stuff is self-explanatory. You enter the person’s name in the Legal Name boxes. The employee’s first name goes in the First box, the middle initial goes in the M.I. box, and so forth. You click the Address & Contact tab (not shown) to collect and store the employee’s mailing address and other contact information, such as his or her telephone number. If you want to collect and store additional information for an employee (such as his bank account number for direct deposit), you click the Additional Info tab (also not shown). This tab provides a Define Field button that you can use to collect custom bits of information about an employee. To use the Custom Field option, click the Define Field button and then use the Define Field dialog box to define the fields that you want to add. Provide payroll and tax information Use the Payroll Info tab to describe how an employee’s salary or wages are calculated, as shown in the following figure. Use the Payroll Schedule drop-down list to set up a regular payroll schedule (such as weekly or semimonthly) and to assign the employee to the payroll schedule. Use the Pay Frequency drop-down list to identify the pay period. Optionally, if you’ve turned on QuickBooks’s class tracking feature, use the Class drop-down list to classify payments to this employee. You enter the payroll item in the Earnings area. If an employee earns an annual salary of $30,000, for example, you enter the salary payroll item in the Item Name column. Then you enter the annual salary of $30,000 in the Hourly/Annual Rate column. If you’ve set up QuickBooks to handle other additions or deductions on a payroll check (expense reimbursements or pension deductions), use the Additions, Deductions and Company Contributions area to describe these items and the item amounts. To describe which taxes an employee pays, click the Taxes button. QuickBooks displays the Taxes dialog box. Use the Federal tab to identify the employee’s filing status, number of allowances claimed, and any extra withholding specified. In addition, use the Subject To check boxes to indicate whether this employee is subject to Medicare, Social Security, or federal unemployment tax, or whether the employee is eligible for an earned income credit. Note that not all employees are subject to Medicare and Social Security taxes. Consult your tax adviser for more information. The State tab supplies boxes that you can use to describe state taxes, obviously. The Other tab lets you describe and store any local tax information, such as a city income tax. Again, what you see on the Other tab depends on your locality. If you click the Sick/Vacation button on the Payroll Info tab of the New Employee dialog box, you see the Sick and Vacation dialog box. This dialog box lets you specify how sick or vacation pay and personal leave time are accrued payroll period by payroll period. You can specify the number of sick or vacation leave hours in the Hours Available As Of text box at the time you’re setting up payroll. You can use the Accrual Period drop-down list to specify how often sick or vacation pay should be accrued. If sick or vacation pay is accrued, use the Hours Accrued box to identify how many hours of sick or vacation time an employee earns each paycheck or hour, or at the beginning of the year. If you’ve set a maximum number of sick hours or vacation hours that an employee can accumulate, enter this value in the Maximum Number of Hours box. If you want to reset the sick hours and vacation hours to zero at the beginning of each year, select the Reset Hours Each New Year? check box. The Vacation area of the Sick and Vacation dialog box works the same way as the Sick area. Enter the number of vacation hours available in the Hours Available As Of box. Use the Accrual Period drop-down list to specify how often employees earn vacation time. Use the Hours Accrued and Maximum Number of Hours check boxes to control how vacation-time accrual calculations work. Finally, select the Reset Hours Each New Year? check box to zero out vacation time at the beginning of each new year. If you’ve chosen to use the direct-deposit option, click the Direct Deposit button on the Payroll Info tab of the New Employee dialog box. QuickBooks prompts you to supply the information necessary to directly deposit checks for employees. Provide other employment-related information If you select the Employment Info tab of the New Employee dialog box, QuickBooks displays the tab you use to store the hire date, fire date, and similar bits of employment data. Set up year-to-date amounts If you’re setting up the Basic Payroll service at the very beginning of the business’s operation or at the beginning of the year, you don’t have to set up any year-to-date amounts (because all the year-to-date amounts equal zero). If you’re switching to the Basic Payroll service sometime in midyear, however, you do need to set up year-to-date amounts. For this reason, the QuickBooks Basic Payroll Setup Wizard walks you through the process for recording year-to-date amounts. If an outside service bureau such as ADP or Paychex has been doing your payroll processing, the final payroll report from this outside service bureau probably supplies all the information you need to set up the Basic Payroll service. If you’ve been working with a bookkeeper or accountant to get payroll done, you should be able to get this person’s help to describe year-to-date payroll amounts. Check your payroll setup data As part of the Basic Payroll setup process, QuickBooks (or you) may identify payroll data that doesn’t seem right. Perhaps an employee whom you know you’ve paid shows no year-to-date wages. In this case, you correct the incorrect data by following the onscreen instructions. Note, however, that QuickBooks Basic Payroll setup process may also identify suspicious payroll data that is, in fact, correct. In the state of Washington, for example, officers aren’t subject to state unemployment insurance if they so elect. QuickBooks doesn’t know this, however, so it flags officers who aren’t marked as being subject to state unemployment insurance as possible errors. Again, if you don’t feel comfortable answering some of these payroll setup questions, get an accountant’s help. Quite frankly, when you have an outside service bureau prepare your payroll checks, you’re really paying for that firm’s expertise and knowledge about how all this payroll processing stuff works. You’re not really paying for the computer time and the paper on which the checks are written. Schedule QuickBooks 2019 payroll runs The Basic Payroll setup process also steps you through the work of scheduling your payroll runs. In other words, if you’ll run your payroll every week, twice a month, or at whatever interval, the setup process asks you to describe the schedule. Again, as with the other tasks that the Basic Payroll setup process helps you with, all you need to do is provide a few bits and pieces of information. Pay employees in QuickBooks 2019 After you go through the steps required to set up the QuickBooks payroll processing capability, paying employees — thank goodness — is pretty easy. To pay employees, follow these steps: Choose Employees → Pay Employees→ Scheduled Payroll. QuickBooks displays the Employee Center window. Start the scheduled payroll you want to run. To start the scheduled payroll run you want to run, select it in the list box at the top of the Employee Center window. Click the Start Scheduled Payroll button. Supply the payroll check date, and use the Check Date box to supply the date that you want to appear on payroll checks. Identify the date on which the payroll period ends in the Pay Period Ends box. Use the Bank Account drop-down list to identify the bank account on which you want to write checks. Verify the employees whom you want to pay. QuickBooks lists the active employees included in the scheduled payroll. You want to make sure that the list of selected employees is right. You can click listed employees to select and unselect them. Click Continue. QuickBooks calculates the payroll checks and payroll deduction amounts for each of the selected employees. To accept a previewed paycheck described or shown in the dialog box, click its Create Paychecks button. QuickBooks displays a dialog box that lets you print paychecks or pay stubs for direct deposit. Click the Print Paychecks or Print Pay Stubs button, and follow the onscreen instructions. When you click either button, QuickBooks displays the Select Paychecks/Pay Stubs to Print dialog box. You should confirm the bank account on which you want to write the checks. If you’re printing checks, you should also use the First Check Number box to supply the preprinted form number shown on the first payroll check that you’ll print. You should also confirm that the employee paychecks listed in the dialog box are those that you want to print. After you confirm that the paycheck printing information is correct, click OK. QuickBooks displays the Print Checks dialog box (the same one that you use to print any check). Print checks in the usual fashion. If you want to deselect a paycheck for printing, click the check column to remove the check mark and, thereby, deselect the paycheck. Distribute the paychecks or pay stubs. Obviously, after you print the checks, you sign and then distribute them. I’ll leave you to your own devices here. I’m sure that you know how to find employees whom you need to pay and, furthermore, how to hand them their paychecks. Heck, they’re probably standing beside your desk right now, waiting for you to finish the payroll checks anyway. How to edit and void paychecks in QuickBooks 2019 Be careful when you want to change payroll check information. Payroll checks are a little trickier than regular checks because the information from the payroll checks affects a bunch of payroll counters. Payroll checks bump up someone’s gross wages for the year, for example, and also affect the deduction amounts. For this reason, when you want to make a change or void a paycheck that you previously created, you choose the Employees → Edit/Void Paychecks command. When you do this, QuickBooks displays the Edit/Void Paychecks window (not shown). This window lists paychecks that you’ve previously created and printed. To change one of the paychecks listed, double-click the paycheck. When QuickBooks displays the Paychecks window, click the Paycheck Detail button. When QuickBooks displays the Review Paychecks window, use it to make the appropriate change to the paycheck. Note that you can change other details, such as the name or address, by using the Paycheck window. To void the paycheck shown in the Paycheck window, choose the Edit →Void Paycheck command. After you edit or void a check, click the Save & Close or the Save & New button to save your changes to the paycheck. Payroll liabilities in QuickBooks 2019 Amounts that you withhold from employees’ paychecks become liabilities that you later need to pay. If you withhold federal income tax deductions, you need to remit those payments to the Internal Revenue Service. To pay payroll tax liabilities, choose Employees→Payroll Taxes and Liabilities→Pay Scheduled Liabilities. QuickBooks displays the Employee Center window, which lets you select the payroll liabilities you want to pay. Click the liability you want to pay and then click the View/Pay button. QuickBooks writes a check to pay the selected liability. You print this check in the usual way. How quickly you need to remit any payroll taxes triggered by payroll depends on a variety of factors, including the size of the deposit. But a good practice is to immediately remit any amounts you owe. Typically, the government agency in question allows you to easily and electronically make tax deposits by using a website. The U.S. Treasury’s website, for example, lets you easily make federal tax deposits in this manner. In fact, you’re required to use this system if you pay more than $2,500 in payroll taxes a quarter.

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How to Create a QuickBooks 2019 Purchase Order

Article / Updated 03-31-2019

A QuickBooks purchase order serves a simple purpose: It tells a vendor that you want to purchase some item. In fact, a purchase order is a contract to purchase. Many small businesses don’t use purchase orders. But when they grow to a certain size, many businesses decide to use them because purchase orders become permanent records of items that they’ve ordered. What’s more, using purchase orders often formalizes the purchasing process in a company. You may decide, for example, that nobody in your firm can purchase anything that costs more than $100 unless he or she gets a purchase order. If only you can issue purchase orders, you’ve effectively controlled purchasing activities through this procedure. How to create a real QuickBooks purchase order To use QuickBooks to create purchase orders, follow these steps: Tell QuickBooks that you want to create a purchase order by choosing Vendors→Create Purchase Orders. QuickBooks displays the window shown. If the Vendors menu doesn’t supply a Create Purchase Orders command, QuickBooks doesn’t know that you want to create purchase orders. Use the Vendor drop-down list to identify the vendor from whom you want to purchase the item. The Vendor drop-down list lists each of the vendors in your vendor list. (Optional) Classify the purchase, using the Class drop-down list. Note that you don’t see a Class drop-down list unless you’ve turned on class tracking. (Optional) Choose a different Ship To address from the Ship To drop-down list in the top-right corner. The Ship To drop-down list displays a list of all your customers, vendors, and employees. You change the Ship To address by selecting one of these other names. After you select an entry from the Ship To list, QuickBooks fills in the Ship To address box with the appropriate information. Confirm the purchase order date. Initially, QuickBooks puts the current system date in the Date box. You should, however, confirm that the date that QuickBooks enters as the purchase order date is correct. This is the contract date. Often, the date sets contractual terms, such as the number of days within which the item is to be shipped. Confirm the purchase order number. The purchase order number, or P.O. number, uniquely identifies the purchase order document. QuickBooks sequentially numbers purchase orders for you and places the appropriate number in the P.O. No. box. The guess that QuickBooks makes about the right purchase order number is usually correct. If it isn’t correct, you can enter a replacement number. Confirm the vendor and Ship To information. The Vendor block and the Ship To block identify the vendor from whom you’re purchasing the item and the address to which you want the vendor to send the shipment. This information should be correct if your vendor list is up to date and you’ve correctly used the Ship To drop-down list to identify, if necessary, an alternative Ship To address. Nevertheless, confirm that the information shown in these two address blocks is correct. If the information isn’t correct, of course, fix it. You can edit address-block information by selecting the incorrect information and then retyping whatever should be shown. Describe each item that you want to order. You use the columns of the Create Purchase Orders window to describe in detail each item that you want to order as part of the purchase. Each item goes in its own row. To describe an item that you want to purchase from the vendor, you provide the following bits of information: Item: The Item column is where you record the unique item number for the item that you want to buy. Remember that items need to be entered, or described, in the Item list. The main thing to know about the Item list is that anything that you want to show in the invoice — or, for that matter, in a purchase order — must be described in the item file. Description: In the Description column, you describe the item that you select. You can also edit the Description field so that it makes sense to customers or vendors. Qty: The Qty column specifies the quantity of the item that you want. Obviously, you enter the number of items that you want in this field. Rate: The Rate column specifies the price per unit or rate per unit for the item. Note that QuickBooks uses different labels for this column depending on the type of business that you’ve set up. Customer: The Customer column identifies the customer for whom the item is being purchased. Class: In the Class column, you classify purchase order items at the item level rather than at the purchase order level. Note that you won’t see this column unless you’ve turned on class tracking. Amount: The Amount column shows the total expended for the item. QuickBooks calculates the amount for you by multiplying the quantity by the rate (or price). You can edit the column amount. In this case, QuickBooks adjusts the rate (or price) so that quantity times rate always equals the amount. You enter a description of each item that should be included in the purchase order. This means, for example, that if you want to order six items from a vendor, your purchase order should include six lines of information. Print the purchase order. The purpose of recording a purchase order in QuickBooks is to create a formal record of a purchase. You almost always want to transmit this purchase order to the vendor. The purchase order tells the vendor exactly what you want to purchase and the price that you’re willing to pay. To print the purchase order, you can click the Print button. You can also print purchase orders in a batch later if you select the Print Later check box (available on the Main tab) when you’re creating purchase orders, save all the purchase orders that you want to print later, and then choose the File→Print Forms→Purchase Orders command. Save the purchase order. To save your purchase order, click either the Save & Close button or the Save & New button. If you click the Save & New button, QuickBooks saves that purchase order and redisplays an empty version of the Create Purchase Orders window so that you can record another purchase order. Purchase order tips and tricks in QuickBooks 2019 Here are a few more important observations: Not every purchase deserves a purchase order. If you’re not used to working with purchase orders, it’s easy to go overboard when you start using this handy tool. Nevertheless, keep in mind that not all purchases warrant purchase orders (see the next item). Use purchase orders to manage buying. Typically, businesses use purchase orders as a way to control and document purchases. In fact, many purchases don’t really require a purchase order. Amounts that you’ve agreed to purchase that are documented through standard contracts — such as bills from the telephone company, the gas company, and your landlord — don’t need purchase orders, obviously. In addition, modest purchases, such as office supplies, often don’t need purchase orders. You definitely need a way to control these expenditures, but purchase orders probably aren’t the way to go. Consider other, complementary control tools. Other budgetary controls, such as “approval from the supervisor” or a simple budget, often work just as well.

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How to Invoice a Customer in QuickBooks 2019

Step by Step / Updated 03-31-2019

To invoice a customer from QuickBooks 2019, use the Create Invoices window to identify the customer and specify the amount that the customer owes. To display the Create Invoices window, choose the Customers → Create Invoices command. When you do, QuickBooks displays a Create Invoices window like the one shown. You can use more than one type of QuickBooks invoice template. Note, however, that the Create Invoices window you see may not look exactly like the one shown. You can also choose to customize an invoice form so that it perfectly matches your business requirements. The specific steps that you take may be ever-so-slightly different if you’re working with a different QuickBooks invoice form template.

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Access Shortcut Menus for Common QuickBooks 2019 Tasks

Article / Updated 11-13-2018

To display shortcut menus in QuickBooks 2019, right-click. In a register, select and right-click a specific transaction; in a list, right-click an item; in a form, display a transaction and right-click a blank area of the form. QuickBooks displays a shortcut menu of common commands for each particular transaction, item, or window. It often displays commands for memorizing or voiding a transaction, for example, or for creating a QuickReport on a transaction. The commands differ based on the type of transaction you select.

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