QuickBooks 2008 Solutions Guide for Business Owners and Accountants

QuickBooks 2008 Solutions Guide for Business Owners and Accountants

by Laura Madeira


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QuickBooks 2008 Solutions Guide for Business Owners and Accountants contains a wealth of information useful to both the business owner and the accountant who services such businesses. To make finding the right information easier, the book is organized into chapters specific to each accounting module in QuickBooks.

The author has worked many years with businesses that use QuickBooks to manage their financials and knows that every company has its own unique needs, yet all share one common goal—to more accurately track how the business is performing financially.

The goal of this book is to provide easy-to-read and easy-to-follow QuickBooks “consulting” advice that business owners, bookkeepers, or accountants can use. After reading the chapters in this book, business owners and accountants will be able to efficiently troubleshoot a QuickBooks data file and make needed corrections, so they can accurately report how the business is performing financially.

This book helps you

o Get started with a QuickBooks data file and learn how to modify the file you already have

o Analyze your data and troubleshoot reports

o Review and correct any data errors in your balance sheet accounts such as Banking, A/R, Undeposited Funds, Employee Advances, Inventory, A/P, Sales Tax, and Open Bal Equity Account

o Use the tools in QuickBooks to properly review your payroll data and avoid costly mistakes

o Efficiently share your business data with your accountant

o Make the most of the QuickBooks reporting tools

Laura Madeira graduated from Florida Atlantic University with a major in accounting and is a certified trainer for Intuit’s Certified Trainer Network. As a member of this select group, she provides training to accountants and consultants each fall when the new version of QuickBooks is released.

She also is a guest instructor for Intuit at many trade shows throughout the year, and she writes published QuickBooks technical documentation and presentations for Intuit.

Laura owns a software and accounting firm that has for more than 20 years helped a large variety of businesses manage their financials using Intuit’s QuickBooks software (Intuit’s Quicken in those early years). In fact, she has been training users on QuickBooks since the very first version was released many years ago.

Category Business Finance

Covers QuickBooks 2008

User Level Intermediate—Advanced

Front cover quote:

“Laura Madeira has created an extremly valuable QuickBooks resource that belongs on every business and accountant’s bookshelf”

—Rich Walker, CPA, Intuit Accountant Relations

Product Details

ISBN-13: 9780789737113
Publisher: Que
Publication date: 12/11/2007
Pages: 528
Product dimensions: 7.00(w) x 9.10(h) x 1.20(d)

About the Author

Laura Madeira is an accountant and Advanced QuickBooks Certified Trainer for the Intuit Accountant Training Network and Member of Intuit’s Speaker’s Bureau Network. Laura has been teaching companies how to use Intuit’s products beginning with Quicken in 1985 and then advancing to QuickBooks since its very first version. Laura has instructed more than 10,000 individuals. She presents QuickBooks training to audiences that are comprised of accountants, consultants, and end users, representing Intuit as a select presenter for its yearly national multi-city Accountant Update Tour and QuickBooks Advanced Certification Training seminars. Additionally, Laura was a guest presenter at the 2006 ASBDC Annual Conference in Houston, Texas. Laura continues to be a guest speaker for Intuit at national CPA trade shows.

Laura has been an advocate for the QuickBooks product line for more than 15 years and has been featured in several marketing articles on Intuit, QuickBooks, and in particular the QuickBooks Certified ProAdvisor program. In addition to the numerous speaking engagements, Laura also served on the first two Intuit Customer Advisory Councils from 2002–2005. This gave Laura an opportunity to meet Intuit executives and help influence changes in Intuit’s relationship with accountants.

Laura also is a skilled technical writer and has provided Intuit with technical training and public presentation materials over the years. Her “QuickBooks at Year-End” document has been distributed by Intuit at several national events and is one of Intuit’s most requested training and presentation documents. Laura is the owner of a software consulting firm located in the greater Dallas, Texas, area.

Laura resides with her husband and two teenage sons outside Dallas, Texas. She graduated from Florida Atlantic University, May 2003, with her bachelor of science, majoring in Accounting. Her hobbies include photography, art (watercolor), scrapbook making, and training two Cocker Spaniel dogs.

Table of Contents


Chapter 1 Creating a New QuickBooks Data File

EasyStep Interview—Overview

Select a Start Date

Enter Bank Account Information

Review Income and Expense Accounts

Converting from Other Accounting Software to QuickBooks

Converting from Quicken to QuickBooks

Converting from Peachtree, Small Business Accounting, or Office Accounting to QuickBooks

Converting from QuickBooks for Windows to QuickBooks Online Edition

Converting from QuickBooks Pro for MAC to QuickBooks for Windows

Setting Up a QuickBooks Data File for Accrual or Cash Basis Reporting

Cash or Accrual Basis Startup Transactions: Accounts Receivable

Cash or Accrual Basis Startup Transactions: Accounts Payable

Cash or Accrual Basis Startup Transactions: Bank Account Statement Balance

Cash or Accrual Basis Startup Transactions: Checking Uncleared Bank Checks

Creating a QuickBooks Data File Checklist

Chapter 2 Reviewing the QuickBooks Chart of Accounts

Understanding the Chart of Accounts





Cost of Goods Sold


Importing a Chart of Accounts

Importing from an Excel File Format

Importing from an Intuit Interchange Format (IIF) File

Preferences That Affect the Chart of Accounts

Accounts That QuickBooks Creates Automatically

Methods to Troubleshoot and Correct Chart of Account Issues

Removing Duplicated Accounts by Marking an Account Inactive

Merging Duplicated Accounts

Wrong Account Type Assigned to a Chart of Accounts Listing

Assigning or Removing a Subaccount Relationship

Chart of Accounts Chapter Checklist

Chapter 3 Reviewing and Correcting Item List Errors

Understanding the Differences Between the Chart of Accounts, Items, Classes, and Customer Types

Chart of Accounts



Customer Types

Using Item Types in QuickBooks

Finding Item Errors in QuickBooks

Reviewing Accounts Assigned to Items

Item Listing Report

Profit & Loss Summary Report

Fixing Item Errors in QuickBooks

Correcting One-Sided Items

Making an Item Inactive

Merging Items

Creating Items as Subitems

Item List Review Checklist

Chapter 4 Easily Review Your QuickBooks Data

Choosing a Reporting Basis

Reviewing the Balance Sheet

Account Types

Prior Year Balances

Bank Account Balance(s)

Accounts Receivable

Undeposited Funds


Other Current Assets

Fixed Assets

Accounts Payable

Credit Cards

Payroll Liabilities

Sales Tax Payable

Other Current Liabilities and Long-Term Liabilities


Additional Data Reviews

Payroll Summary Total and Payroll Expense Total

Sales by Item Summary Compared to Total Income

Net Income or (Loss) Agrees with Balance Sheet

Reconcile Discrepancies Account

Cash Basis Balance Sheet Has Accounts Receivable or Payable

Chapter 5 Power Reports for Troubleshooting Beginning Balance Differences

How Can These Power Reports Help Me?

The Working Trial Balance Window

Tracking Changes to Closed Accounting Periods

Setting a Closing Date and Password

Setting User-Specific Security

Creating the Closing Date Exception Report

Using the Audit Trail Report

Using the Credit Card Audit Trail

Using the Voided/Deleted Transactions Summary or Detail Report

Creating the Retained Earnings QuickReport

Using the Ctrl+Y Keyboard Shortcut

Running the Transaction List by Date Report

Documenting Changes Made to a Data File

Chapter 6 Bank Account Balance or Reconciliation Errors

The Importance of Correct Bank Balances in Your QuickBooks Data

Reconciling a Bank Account for the First Time

Verify That the Bank Account Has Not Been Reconciled

Verify That All Banking-Related Transactions Have Been Entered

Identify All Uncleared Transactions

Complete the Multiple Year or Month Bank Reconciliation

Troubleshooting an Incorrectly Reconciled Bank Account

Review Uncleared Bank Transactions

Reviewing Previous Bank Reconciliation Reports

Locating Bank Account Reconciliation Discrepancies

Reviewing the Voided/Deleted Report

Restarting a Previously Completed Bank Reconciliation

Undoing a Previous Bank Reconciliation

Reconciling with an Adjustment

Bank Reconciliation Troubleshooting Checklist

Chapter 7 Reviewing and Correcting Accounts Receivable Errors

Accounts Receivable Forms and Workflow

Preferences That Affect Accounts Receivable

Sales & Customers Preferences

Checking Preference

Finance Charge Preference

Jobs & Estimates


Reports & Graphs

Send Forms


Sales Tax Preference

Time and Expenses

Reports to Review When Troubleshooting Accounts Receivable Errors

Reconcile Balance Sheet Accounts Receivable Amount to A/R Aging Summary Total

Review Open Invoices Report

Generate a Missing Customer Invoices Report

When an Accounts Receivable Balance Appears on a Cash Basis Balance Sheet

Correcting Accounts Receivable Errors

Removing an Open Balance from a Customer Invoice

Correcting Customer Payments Applied to the Incorrect Invoice, Customer, or Job

When a Credit Memo Is Applied to the Wrong Customer Invoice

When Deposits Were Made Without Using the Receive Payment Form

Grouping Deposited Items

Eliminating the Print Queue for Customer Invoices Marked to Print

Unique Customer Transactions

Recording Your Accountant’s Year-End Adjusting Journal Entry to Accounts Receivable

When a Customer Is Also a Vendor

Recording Customer’s Bounced Check

Accounts Receivable Checklist

Chapter 8 Troubleshooting and Correcting Errors with the Undeposited Funds Account

The Purpose of the Undeposited Funds Account

Preference Settings that Affect Undeposited Funds

Reviewing the Balance in the Undeposited Funds Account

Creating an Undeposited Funds Detail Report

Creating a General Ledger Report of the Undeposited Funds Account

Reviewing the Open Invoices Report

Viewing Deposits in the Bank Register

Viewing the Deposit Detail Report

Fixing Errors with the Undeposited Funds Account

Removing Old Dated Payments in the Undeposited Funds Account

Reconciling Your Bank Register with the Bank Statement’s Deposits

Undeposited Funds Account Checklist

Chapter 9 Handling Current Asset Accounts Correctly

Defining an Other Current Asset

Reviewing and Troubleshooting the Other Current Asset Accounts

Matching Other Current Asset Balances to an Outside Document

Creating a Custom Transaction Detail Report

Reconciling Other Current Asset Accounts

Troubleshooting and Creating Unique Other Current Asset Account Transactions

Correcting Balance Errors in Your Other Current Asset Accounts

Deducting Employee Loan Payments from the Employee’s Payroll Checks

Recording Prepaid Expenses in QuickBooks

Tracking Customer Retainage in QuickBooks

Other Current Asset Accounts Checklist

Chapter 10 Reviewing and Correcting Inventory Errors

Overview of the Accounting for Inventory

Preferences That Affect Inventory

Inventory Processes and Forms and Their Effect on Accounting

Reviewing and Troubleshooting Inventory Balances

Perform a Physical Inventory Count

Reconciling the Inventory Valuation Summary Report with the Balance Sheet Inventory Balance

Reviewing the Recorded Average Cost Valuation

Reviewing Aged Open Item Receipts

Reviewing Aged Accounts Payable

Correcting Inventory Errors

Creating an Inventory Quantity Adjustment

Creating an Inventory Value Adjustment

How QuickBooks Handles Negative Inventory

When Inventory Has an Average Cost from Prior Purchase Transactions

When Inventory Does Not Have a Prior Average Cost

Inventory Summary

Chapter 11 Reviewing and Correcting Accounts Payable Errors

Accounts Payable Forms and Workflow

Accounts Payable Forms

Accounts Payable Workflow

Preferences That Affect Accounts Payable






Reports and Graphs


Reports to Review When Troubleshooting Accounts Payable Errors

Reconcile Balance Sheet Report Accounts Payable Balance to A/P Aging Summary Report Total

Review the Unpaid Bills Detail Report

Reviewing Aged Open Item Receipts

Reviewing Item Setup

When an Accounts Payable Balance Appears on a Cash Basis Balance Sheet

Reviewing and Printing Year-end Vendor Tax Forms

Correcting Accounts Payable Errors

When a Vendor Was Paid with a Check

Misapplied Vendor Credit

Removing Aged Open Item Receipts or Vendor Bills

General Journal Adjustments to Accounts Payable

Unique Accounts Payable Transactions

When Your Vendor Is Also Your Customer

Recording Vendor Prepayments

Entering Mid-year 1099 Balances

Taking Discounts on Vendor Bills

Memorizing Recurring Transactions

Depositing a Vendor Refund

Paying and Recording a Credit Card Bill

Accounts Payable Checklist

Chapter 12 Reviewing and Correcting Sales Tax Errors

Preferences That Affect Sales Tax

Sales Tax Items, Groups, and Codes

Creating and Using Sales Tax Items

Creating and Using Sales Tax Group Items

Creating and Using Sales Tax Codes

Assigning Sales Tax Codes to Products or Services

Assigning Sales Tax Codes and Items to Customers

Reports to Review When Troubleshooting Sales Tax Errors

Reviewing Customer Lists for Tax Code and Tax Item Assigned

Reviewing Item List for Tax Code Assigned

Reconciling Total Sales to Total Income

Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable

When a Check or Bill Form Was Used to Pay Sales Tax

Properly Paying Sales Tax

Paying Sales Tax Without an Adjustment

Paying Sales Tax with an Adjustment

Correcting Sales Tax Errors

When a Check or Bill Form Was Used to Pay the Sales Tax

When the Sales Tax Liability Report Shows Past Sales Tax Due

When Total Sales Does Not Equal Total Income

Unique Sales Tax Transactions

Tracking and Collecting Multiple Sales Tax Rates

When Your State Imposes a Maximum Sales Tax

Multiple Sales Tax Rates on One Invoice

Issuing Credit Memos When Sales Tax Should Not Have Been Charged

Sales Tax Checklist

Chapter 13 Reviewing and Correcting the Opening Balance Equity Account

Purpose of the Opening Bal Equity Account

Transactions in the Opening Bal Equity Account

Bank Statement Ending Balance Entered in the EasyStep Interview

Opening Balance in the Add New Account Dialog

Entering a Total Value for a New Inventory Item

Bank Reconciliation Adjustments (QuickBooks 2005 or Older)

Accrual Basis Startup Records

Reports to Review and Troubleshoot the Opening Bal Equity Account

Closing Opening Bal Equity into Retained Earnings

Setting a Closing Date and Password

Opening Bal Equity Checklist

Chapter 14 Reviewing and Correcting Payroll Errors

Payroll Service Options

Payroll & Employees Preference

Payroll Forms and Workflow in QuickBooks

Payroll Forms

Payroll Workflow

Using the Payroll Setup

Using the Run Payroll Checkup Diagnostic Tool

Reports to Review When Troubleshooting Payroll

Payroll Item Listing

Comparing Payroll Liabilities Balances to the Balance Sheet

Compare Payroll Summary to Filed Payroll Returns

Adjusting Payroll Liabilities

Unique Payroll Transactions and Processes

Scheduled Payroll and Liabilities

Deposit a Refund of Payroll Liabilities

Reprint a Lost Payroll Check

Setting Up Payroll Mid-Year

Paying a Taxable Bonus

Employee Loan Payment and Repayment

Adjusting an Employee Paycheck

Payroll Checklist

Chapter 15 Sharing Data with Your Accountant or Your Client

Sharing QuickBooks Data

Benefits for the Business Owner

Benefits for the Accountant

QuickBooks File Types

Choosing a Method to Share Data

Data Sharing for the Business Owner

Reviewing Your QuickBooks Data

Using the Accountant’s Copy Feature

What the Business Owner Can and Cannot Do

Importing Your Accountant’s Changes

Canceling an Accountant’s Copy

Data Sharing for the Accountant

Preparing Your Client for the Data Exchange

Working with an Accountant’s Copy File

What the Accountant Can Do

What the Accountant Cannot Do

Returning the Accountant’s Copy Change File to the Client

What to Request from the Client When the Import Is Complete

Converting the Accountant’s Copy to a Regular Company File

Sharing Data Checklist

Chapter 16 Reporting Tips and Tricks

Using the Report Center

Reporting Preferences

My Preferences

Company Preferences

Modifying Reports

Modifying Options Available on the Report Window

Modify Report Button

Report Groups

Creating Report Groups

Using Report Groups

Managing Report Groups

Memorized Reports

Exporting and Importing Report Templates

Exporting a Report or Report Group Template

Importing a Report or Report Group Template

Exporting Reports to a .CSV File or to Excel

Emailing Reports

About Financial Statement Designer

0789737116 TOC 10/31/2007

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