QuickBooks Online Review

Flashcards of vocabulary terms and definitions related to QuickBooks Online from lecture notes.

Accrual Accounting

Makes the sale and records the expected revenue as an A/R transaction. Provides an accurate picture of the profitability of a company.

Cash Basis Accounting

The company makes a sale, but revenue is not realized until the invoice is paid.

Sub customer

A customer record linked to a parent customer record, creating a hierarchical relationship.

1099 Workers

Independent contractors who decide their own work hours & work site

Billable expenses

Costs incurred by a business on behalf of a client and are subsequently charged back to that client

Vendor credits

Financial credits issued by a supplier (vendor) to a buyer, effectively reducing the amount owed on a future bill.

Bill

For services or items to be paid later.

Check

For services or items paid immediately.

Bill

Records a journal entry that debits the Expense Account and credits Accounts Payable.

Check

Records a journal entry that debits Accounts Payable and credits the Expense Account.

Where you go to get Intuit-approved apps for QuickBooks Online.

QuickBooks App Store

Billable

Expenses and items are made billable in the Account and Settings area, on the Expenses tab.

Unbillable Costs

Identifies expenses and items billable to a customer

Close the Books

Users cannot change transactions in a closed period. If a warning is used instead of a password, the user is not stopped from making the change

Billing Address

The mailbox where an invoice is delivered.

Shipping Address

The location where products are delivered.

Non-inventory product

Shelving you use to display food items.

Inventory product

Fruits and vegetables you regularly stock and sell to customers.

Non-inventory product

A specialty food item you order for a specific customer but do not usually sell.

Money-In Step-by-Step

Create invoice. Record payment received. Deposit funds.

Money-In forms

Invoices, Sales Receipts

Audit Log

Where to find if a change was made to the books?

Setting up Products and Services

Must provide price, income account, and COG sold accounts.

QBO Plus features not available in lower tiers

Track Time, Track profitability by project.

QBO Features

Class, Location, and Project Tracking is NOT available in all versions.

Refund Receipt

QuickBooks Online will debit (lower) the revenue tied to the items you are refunding. The system will also credit (lower) the bank account or undeposited funds account that is used for batching payments.

Credit Memo

QuickBooks will debit (lower) the revenue tied to the items you are refunding. Unlike a refund receipt, the system will credit (lower in this case) your accounts receivable, not your undeposited funds account.

Income Statement

Report revenue and expenses over a period of time.

How do you set up a new product to be tracked by QuickBooks?

Enable the box, “I purchase this product/service from a supplier”

When should you not delete a check?

You printed a check, and the check number has been used

How to handle having a customer who is also a vendor?

Use a "V" at the end of the display name on the vendor record to differentiate the vendor record from the customer record.

Who can write checks in QB?

Standard user with vendor access only & Company Admin

Customer fields

You can enter a Sales Receipt if the field is empty

Payee fields

You can enter a Check and an Expense if the field is empty

Merging

To merge Vendor A into Vendor B, you should edit the display name of Vendor A to match Vendor B. Merging of vendors cannot be undone

What is true about Apps?

They are not associated with QuickBooks, can automate workflows, and allow business owners to access QBO data from mobile devices

QBO App risks

Support is only available through blogs and forums, the Internet is required

Recurring Invoices

Scheduled, Unscheduled, & Reminder; Can run a fixed number of times

Automated tasks

Payroll, Financial Reporting, & Overdue Payment Reminders

Products & Services on Sales forms

Bundle, Service, Inventory, Non-Inventory

When are Journal Entries required?

Entering debits & credits manually; Transferring money between income and expense accounts

Taxable products

The default setting

Class Codes

Do NOT need to be set up to activate Project Tracking

QBO Payments

Payments received can be deposited into QBO Cash Bank Account

Recording Transaction

QBO will allow the credit Card Balance to be paid with a check

Recording a Debit Card transaction is the same as a Check transaction

Ctrl + alt + W to write a check

Credit Card post liabilities for each credit card, whereas Debit card transactions are posted to the checking account

Income Statement

Report revenue and expenses over a period of time

Balance Sheet Report

Checking & Accounts Receivable (A/R)

What cannot be changed on the Balance Sheet?

Font Color

What is not true about Charts of Accounts?

All accounts must have a type & Accounts with a “Fixed Asset” will appear on the profit and loss report

What is true about Billable Expenses?

They cannot be added to invoices & sales receipts; Checks, Bills, Bill Payments, and Expenses are NOT able to be marked as Billable

Ways to upload receipts into QBO

Email receipts to QBO & upload photo form computer

Transaction for returned damaged product that has not been paid for yet

Credit Memo

Accounts that must be defined in a new inventory item

Income account, inventory asset account, expense account

Accounts Payable (A/P) Aging Summary Includes

Due Dates for Bills & Vendors who owe you money

Discounts can…

be a percentage rate, dollar amount, and may be applied before or after sales tax

Paying bills

Can use a check; cannot pay before you enter; does not decrease accounts payable

In the chart of accounts…

Account numbers CAN be used, but don’t have to be; Fixed Assets do not appear on profit & loss reports; all accounts do NOT have to have a type