Tuesday, June 16, 2015

Learn 10 most used QuickBooks windows by accountants

Want to learn how to use QuickBooks just like an accountant would use it? Yes, so many Canadian small business owners and bookkeepers have questions about QuickBooks that they would like answered. If you're new to QuickBooks, you may want to check out our Calgary QuickBooks training Courses  where we go over this and more information. Once you've been using QuickBooks for years, you'll notice that there are only several QuickBooks functions that are used the most. Today will look at a snippet from our Edmonton QuickBooks Training workshop itinerary and see which QuickBooks Windows Are used most by accountants and why.

1. The Accountant's Copy Transfer Window

Most accountants are working with accountants copies. these are QuickBooks files that have all the entries made and are waiting for the accountants to make the year end entries. Accountants use QuickBooks differently than a bookkeeper would use QuickBooks, because a bookkeeper enters the day today entries and financial records into QuickBooks using write checks window under the banking menu on the top menu bar. Some bookkeepers will also use the batch enter transactions window under the accountants menu bar. This is only available on the accountants version of QuickBooks. Bookkeepers also enter invoices and bills incurred throughout the year. 

To create an accountant's copy of the QuickBooks file, you will need to click File on the top menu and go to send company file. hover over accountant's copy and then click Open and convert transfer file.this will bring you to the open and convert accountant's copy transfer file window. This is what accountants use to transfer accountants copies and open new accounts and copies of QuickBooks files. Please see pictures for more information.

2. Tax Summary, Balance Sheet, & Profit & Loss

When an accountant receives the accountant's copy from the company or from the bookkeeper, typically the first place they will look is the reports menu bar to check the profit and loss statement and the balance sheet. Another common a report accountants will check first before anything when they receive their accountant's copy of the company QuickBooks file is the income tax summary, which can be found under the reports section of the menu bar under accountant and taxes right at the very bottom of the menu. The tax summary report will give much the same information as a balance sheet and a profit and loss statements, but the income tax summary report include the tax code mapping for where to enter income tax deductible expenses, assets, depreciation, and the income on to the tax return. This will be the most used statement by accountants because this is the information that will be going on the tax return. They will be checking this report to make sure it balances with everything.

Now let's take a look at how to access the profit and loss and balance sheet statements. first, click on reports and hover over company and financial. The profit and loss standard statement is located right at the top. click on it.

To get a tax year summary report, click on dates and select last fiscal year.

You may also want to customize reports in order to show the previous year profit and loss so that you can mash income and expenses. This is done by clicking customers report just under the icon bar on the left hand side. Click Customize report and at the bottom under add some columns for checkmark previous year. This will show the previous year's income and expenses.

to see the balance sheet, select reports hover over company in Company & financial, and just below half way you will see balance sheet standard. Click on that.

To find the tax summary report, click reports and have her over accounting and taxes. select income tax summary second from the last on the drop-down menu.

3. Chart of Accounts 

The next most important window for an accountant in QuickBooks is the chart of accounts. the chart of accounts is an excellent way to find out what is exactly in each account and if there are any accounts that looks out of place. For starters, an accountant will make sure that the bank's balance matches the QuickBooks accounts. if no further entries are made in the QuickBooks file after the end of the tax year, the chart of accounts is an excellent and easy way to check balances on multiple accounts. Accountants will also look into cash clearing accounts, sometimes otherwise known as shareholder clearing accounts, petty cash accounts, or cash accounts. this is an important account because these are expenses paid for by the shareholder and not the company. The accountant will also look at assets to see if there have been any new additions in the year, or to see if anything has been sold that was in the capital accounts during the year. The accountant will also check to make sure that the income is correct for the year, and the expenses. some accountants may check last year's tax return to make sure that expenses are written off in the same way they were the previous year and to make sure that depreciation is written off correctly as well. It's always a good idea to give your account since the previous years tax return so that they can understand how things were done previously and how they should be done going forward.
the chart of account is easy to find. Just click lists on the top menu and select chart of accounts. You can also hold down CTRL and press A to go to the chart of accounts quickly.in the chart of accounts, you will find assets listed first, followed by liabilities and equity, and then the income, cost of goods sold, expenses, other income, other expenses, and none posting items.

4. General Journal Entries

The accountant will also use general journal entries to make your end entries into QuickBooks so that everything matches the tax return. This includes entering depreciation expenses, accumulated depreciation, and taxes incurred relating to federal and provincial income tax.  there maybe a year end expenses or income that should be entered into the next year depending on the method of accounting your company uses. The accountants may use general journal entries to carry these amounts forward or back.

to make a general journal entry in the accountants version of QuickBooks, you can click accountant and go down to make general journal entries. If you do not have the accountants version of QuickBooks, you can access the general journal through the company button on the menu.

5. Employee Center

Accountants use the employees window in QuickBooks quite often as well. The employee center tells how much income tax has been deducted and CPP and EI have been paid per employee and what the gross pay has been. The accountants may need to file t4 and t5 to the employees or shareholders of the company. the employee center window in QuickBooks will be used to access this information for each employee.

The employee center can be accessed in QuickBooks under the employees menu. Is the first option on the menu.

6. Inventory Center

If your business is a product based business, the accountant will need to look at the inventory held by your company. The accountant will use the inventory center window, which is located under the vendor menu in inventory activities. They can also access information related to inventory is under the reports menu under inventory. Your accountant will need to report what the inventory was at the beginning of the year and what the inventory was at the end of the year on the tax return, so it's very important to have correct inventory amounts in your QuickBooks file. The accountant may also want to check the inventory items to make sure they have been set up correctly.

Here's a picture of how to access the inventory center on QuickBooks under the Avengers menu hovering on inventory activities.

7. Accounts Receivable Account

The accountant will commonly check the accounts receivable account to make sure that income and receivables have been recorded correctly. Again, depending on the method of accounting that your company uses, you may record invoicing and accounts receivable differently on the tax return at year end. Under the accrual method of accounting, invoices will be counted as income even if money has not been received for them. this is not true for the cash method of accounting. Cash is recorded as income once it is received, and not if it has been invoiced out and is unpaid. If you have an inventory in your business, generally you cannot use the cash method. The accounts receivable accounts can be used by the accountants to make sure that invoices and income recorded correctly.

Your accountant me glance over to see amounts owed to you in the accounts receivable by checking the Customer Center. The Customer Center is located on the top menu bar and our customers. This is the first option on the menu. You can also press Ctrl J to get to the customer center quickly. Once in the Customer Center, you may check the balance total beside the name to see if there are customers that owe your company money.here's a quick snapshot of the Customer Center.

8. Accounts Payable Account

The Accounts Payable account, much like the accounts receivable, will be looked at by the accountants this is an important account in the chart of accounts found toward the top of the chart of accounts after assets and before liabilities. If there are unpaid bills at the end of the tax year, the accountants can determine how to record them.

9. Bank reconciliation

If you hand off your company QuickBooks file to an accountant and the bank accounts have not been reconciled, it is very important that they be reconciled before income taxes are filed so that no expenses are income are missed for the tax year. The accountants may want to reconcile bank accounts and they should be reconciled before taxes are filed. You can access the bank reconciliation by clicking on the banking menu on the top and selecting reconcile. some accountants prefer to reconcile bank accounts in QuickBooks each month, but it can be done however you'd like, as long as it is reconciled by the end of the year. There are some that just reconcile once each year, but this can create headaches if there are a lot of transactions in your company, because a small outage can be difficult to find with so many transactions.

10. Accountant Center

Finally, the accountant center is a very important window for accountants in QuickBooks. This is only available in the account since version of QuickBooks. Accountants can use this to reclassify transactions that have been recorded into the wrong account, as well as to make a batch transaction entries or general journal entries. These are key functions and very important for accountants. They can also set closing dates from this window and password protect the closing date so that entries cannot be made without using a password for previous years or previous closed periods.in the accounts and center, accountants can also use the client data review for fix incorrectly recorded sales tax in the case of a sales tax entry mistake by the bookkeeper or small business owner. The accountant Center is a powerful tool and an easy way to access the more complicated portions of QuickBooks.

These are some of the windows in QuickBooks use accountants. There are many other functions that a professional accountant will look at to make sure that your bookkeeping has been done correctly. even if you and your accounting off to a tax accountant for tax preparation, it is best to learn as much as you can about QuickBooks. a good method of learning is taking a QuickBooks class in your area. Live classes teach you a lot about the ins and outs of QuickBooks as well as how and accountants will use QuickBooks when it comes to tax time. Dymas Services Limited offers QuickBooks training courses in Western Canada that can be beneficial for any Canadian small business owner, bookkeeper or accountant. These courses offer level 1 and level 2 QuickBooks courses (2 day courses). Please check out our schedule.


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