Sunday, February 28, 2016

Configuring Preferences to Fit Your Company

An organization’s approach to accounting often depends on the type of business it is and its objectives, policies, procedures, and industry. For example, maybe you use inventory tracking and payroll—but maybe you don’t. The way you and your accountant like to work also influences your organization’s accounting practices. For instance, you might prefer the simplicity of cash
accounting to the more intimate pairing of income and expenses that accrual accounting offers.

Banking Online with QuickBooks

By synchronizing your real-world bank accounts with the bank accounts in QuickBooks, you can download your bank balances and transactions into your QuickBooks company file so you’ll always know how much cash you have on hand. (The connection you set up between the two is called bank feeds to differentiate it from online banking that you perform by logging into your bank account outside of QuickBooks.) That way, before repaying your aunt the money she lent

Tracking Finances with Reports and Graphs

QuickBooks comes with loads of built-in reports that show what’s going on with your company’s finances. But having a dozen report categories with several reports tucked into each one presents a few challenges, particularly if you’re new to both business and QuickBooks.

The first challenge is knowing what type of report tells you what you need to know. For example, a profit and loss (P&L) report shows how much income and expense you had over a

Budgeting and Planning

As you’ve no doubt noticed in business and in life, the activities that cost money almost always seem to outnumber those that bring money in. Most companies want to make money and most nonprofits want to do the most with the funds they have, so budgeting and planning are essential business activities.

Like any kind of plan, a budget is an estimate of what’s going to happen. Your actual results will

Working with Sales Tax

Sales tax can be complicated, particularly in states where the number of tax authorities has exploded. You might have to pay sales taxes to several agencies, each with its own rules about when and how much. QuickBooks’ sales tax
features can’t eliminate this drudgery, but they can help you pay the right tax authorities the right amounts at the right time—and that’s

Managing Inventory

As you record inventory purchases and sales in QuickBooks, the program keeps track of your inventory, just as the point-of-service system at the grocery store does when a cashier scans items. This chapter begins by explaining how to
turn on QuickBooks’ inventory features and set up inventory items in your company file so the program can work this magic.

Unless you practice just-in-time inventory management, you need inventory in your

Managing QuickBooks Files

When company ledgers were made of paper, you had to be careful not to tear the pages or spill coffee on them. Today’s electronic books require their own sort of care. Protecting your QuickBooks files is essential, not only because