Company File Setup

1. Company File Setup 2014

2. Topics • Choosing a Start Date – Step 1 • Creating the Company File – Step 2 • Setting Up the Chart of Accounts and Other Lists – Step 3 • Setting Up Opening Balances – Step 4 • Entering Open Items – Step 5 • Entering Year-to-Date Income and Expenses – Step 6 • Adjusting Opening Balance for Sales Tax Payable – Step 7

3. Topics (cont.) • Adjusting Inventory and Setting up Fixed Assets – Step 8 • Setup Payroll and YTD Payroll Information – Step 9 • Verifying your Trial Balance – Step 10 • Closing Opening Bal Equity – Step 11 • Setting the Closing Date - Backing up the File – Step 12 • Users and Passwords

4. 12-Step Process • Start Date • Create company file • Chart of Accounts and lists • Opening Balances • Enter outstanding transactions • Year-To-Date Income and Expenses (if necessary)

5. 12-Step Process (cont.) • Sales Tax Payable • Inventory • Payroll Lists and Year-To-Date Payroll information • Verify Trial Balance • Close Opening Balance Equity • Back up your file

6. Choosing a Start Date: Step 1 • Best start dates: • Calendar-Year Basis • December 31 • Fiscal Year basis • Last day of fiscal year • For a new company • First day of the business

7. Creating the File: Step 2 • Express Start • Detailed Start

8. Setting Up the Chart of Accounts: Step 3 • To set up the Chart of Accounts, we will cover the following: • Account Types • Activating Account Numbers • Adding Accounts • Adding Subaccounts • Removing Accounts from the Chart of Accounts • Reordering the Account List

9. Account Types • Assets: • Bank • Accounts Receivable • Other Current Asset • Fixed Asset • Other Asset • Liabilities: • Accounts Payable • Credit Card • Loan • Other Current Liability • Long Term Liability • Equity • Income: • Income • Other Income • Expenses: • Expense • Other Expense • Cost of Goods Sold

10. Activating Account Numbers

11. Adding Accounts

12. Adding Accounts

13. Adding Subaccounts

14. Removing Accounts from the Chart of Accounts • Deleting Accounts - Option 1 • Deactivating Accounts - Option 2 • Merging Accounts - Option 3

15. Deleting Accounts – Option 1

16. Deactivating Accounts – Option 2

17. Merging Accounts – Option 3 • Select the account you wish to change • Rename the account to the account you wish to keep

18. Reordering the Account List Sorted by name without account numbers

19. Setting Up Opening Balances: Step 4 • Gathering Your Information • Entering the Opening Balances • Understanding Opening Balance Equity

20. Gathering Your Information • Trial Balance for your start date • Bank Statements (all accounts) • Outstanding Checks and Deposits • Open Invoices • Unpaid Bills • Employee List and W-4 Information • Payroll Liabilities by Item • Year-to-Date Payroll Detail by Employee • Year-to-Date Payroll Tax Deposits • Physical Inventory by Inventory Part

21. Entering the Opening Balances: Step 4 (cont.) • Two Methods • Directly Editing the Account • Using a General Journal Entry to Record Opening Balances

22. Directly Editing the Account

23. Using a General Journal Entry

24. Understanding Opening Balance Equity • As the opening balances for assets and liabilities are entered, QuickBooks automatically adds offsetting amounts in the Opening Bal Equity account • Opening Bal Equity will be “closed” into Retained Earnings (or Owner’s Equity).

25. Entering Open Items: Step 5 • Outstanding Checks and Deposits • Open Bills (Accounts Payable) • Open Invoices (Accounts Receivable) • Open Purchase Orders • Open Estimates and Sales Orders

26. Entering Year-to-Date Income and Expenses: Step 6 • General Journal Entry to enter your year-to-date income and expenses • Summarize the total income and expenses • Only for mid-year setup

27. Total Tax Due = Collected Tax + Uncollected Tax Uncollected Tax = Tax on Open Invoices Collected Tax = TotalTaxDue – Uncollected Tax Sales Tax Adjustment: Step 7

28. Adjusting Inventory: Step 8

29. Setup Payroll Information: Step 9 • Setting up payroll in QuickBooks is a lengthy and involved process • See Payroll Setup Chapter

30. Verifying your Trial Balance: Step 10

31. Closing Opening Balance: Step 11

32. Setting the Closing Date and Backing up the File: Step 12 • Set the start date as the Closing Date to Protect your Setup Balances • Backup your finished file

33. Setting Up Users in the Company File

34. Multi-User and Single-User Mode • Multi-User Mode • Single-User Mode

35. Summary of Key Points • Choosing a Start Date – Step 1 • Creating the Company File – Step 2 • Setting Up the Chart of Accounts and Other Lists – Step 3 • Setting Up Opening Balances – Step 4 • Entering Open Items – Step 5 • Entering Year-to-Date Income and Expenses – Step 6 • Adjusting Opening Balance for Sales Tax Payable – Step 7

36. Summary of Key Points (cont.) • Adjusting Inventory and Setting up Fixed Assets – Step 8 • Setup Payroll and YTD Payroll Information – Step 9 • Verifying your Trial Balance – Step 10 • Closing Opening Bal Equity – Step 11 • Setting the Closing Date - Backing up the File – Step 12 • Users and Passwords