Quickbooks Online Certification 100% VERIFIED ANSWERS 2024/2025 EXAM, Exams of Business Administration

Download Quickbooks Online Certification 100% VERIFIED ANSWERS 2024/2025 EXAM and more Exams Business Administration in PDF only on Docsity! Quickbooks Online Certification 100% VERIFIED ANSWERS 2024/2025 EXAM Client Needs Assessment Process Who, What, When, and How Who? Get to know who your client is, what they stand for, what they're aiming for and where they're coming from What? Every business, large or small, has a variety of parts. You need to find our what they are in order to best discuss QBO functionality and benefits with them, When? How often do they run reports? What are their internal and external deadlines? All of your clients will have compliance requirements for their business even if they don't run payroll or collect sales tax. How? How can you help? You can dive deeper using the client checklist, follow the onboarding process, and begin to plan deliverables and tasks with your client. New Client Checklist a handy resource for getting to know your new clients, gathering the required info to get their account set up, and discovering what their business needs are in order to best match them to a subscription level. NCC: Client Profile the basic contact information fro your client and their business. NCC: Needs Assessment lists all the functionality your client may need from QuickBooks Online, and encourages a better understanding of their business so that you can best advise on the subscription level they will need. NCC: Features and Solutions dives deeper into the subscription solutions that will best suit your client. The workflows you highlight as needs or requirements in the Needs Assessment tab will be pulled through automatically and displayed in column A. This enables you to see at a glance which subscription level is likely to be best for your client's business. NCC: Mileage If your client needs to track mileage, then collect their vehicle profile information during the requirements gathering stage. You can do this for each vehicle they need to track mileage for. NCC: Onboarding Checklist Use the Onboarding Checklist to gather any final additional requirements from your client. This will enable you to set up the appropriate QuickBooks Online subscription quickly and accurately. NCC: Self-Employed Profile Transaction volume This section is important because it will reveal to ProAdvisors the transactional volume and scope of the client's business. It may, for example, indicate that the client might benefit from a QuickBooks Online Advanced subscription, if transactions exceed a threshold of 43,000. This is because QuickBooks Online Advanced offers accelerated data-entry features. Industry trends While you need to take the time to understand each client's specific requirements, there are some common themes and pain points based on which industry they're in. These are five common business industry types, and each comes with its own pain points: - Professional services - Contractor/field services - Retail and e-commerce - B2B wholesale business - Nonprofits IT: Professional services Managing cash flow is essential for these types of businesses, because they often incur expenses up front, before they receive payment. Time tracking and job costing are essential to ensure the profitability of any business. This holds especially true for these clients, who must spread limited resources— including their time—across various jobs. IT: Contractor/Field Services These clients are always out and about in the field, which means they don't have a lot of time for bookkeeping. They need solutions that let them stay on top of their books, wherever their projects take them. IT: Retail and e-commerce Retail and e-commerce businesses are optimized to sell products and deliver exceptional customer experiences. Sales, payment, and staff management systems must work closely together to better manage profit and loss. Understanding cash flow and balance sheets is necessary to run any business. It's especially important to retailers and resellers, who must manage sales and inventory on top of being ready to do taxes when the time comes. Managing inventory and avoiding out-of-stock situations are critical to the success of retail and e-commerce customers. IT: B2B Wholesale business Wholesale businesses rely on knowing their inventory at all times. They also need to be able to keep track of all the logistics that go with shipping orders of all sizes, from sales forms and invoices to store locations and agreements with shipping companies. IT: Nonprofit Nonprofit and charitable organizations often track the expenses of various programs and funds. Donations often have to be tracked in as well as out when allocated to various branches of the charity. QuickBooks Online seeks to help make keeping track of donations, pledges, and other funds quick and simple. Migration There are three ways to get information into QuickBooks Online: - Convert data in existing QuickBooks Desktop software - Import customers, vendors, charts of accounts, and products and services lists from Excel - Enter all data manually Dan Cheng is another new client. Dan offers a virtual assistant/professional service, Cheng's Master VA. He started his business a year ago and grossed $60,000 in that year. Dan doesn't yet use an accounting solution and has a shoebox full of handwritten notes and receipts. However, he's excited to set up a solution that will provide detailed customer breakdown of his sales and customer history. Based on what you already know of Dan, which of the following Sales and Accounts Receivable items would you mark with Yes in the Needs Assessment tab of the checklist? Dan would benefit from custom invoices, sales receipts, and statements. Custom invoices might help when he needs to track customers and run more detailed reports to make sure he's working in the most efficient way with the customers who generate the most income. Statements are a great tool for service-based businesses that can generate information on what services they're providing to customers. Clients can even use them to tailor their offering so the client gets great value based on what they can afford.Dan doesn't need Multicurrency, nor sales tax, which would be an essential requirement for a retailer selling physical products. Quickbooks Online Subscriptions Self-Employed; Simple Start; Essentials; Plus; Advanced QBO Sub: Self-Employed - Scheduled C; Cash basis - 1099 Income & W2 - Separate Business/Personal Accounts - 1 user & 1 accountant QBO Sub: Simple Start - Sole proprietor or single-owner corporations - Full general ledger & accounts receiveable - Multiple sources of income - 1 user & 2 accountants Under this option, you (as the client's accountant) are billed monthly for the subscription and will have an itemized view of all your wholesale subscriptions for easy tracking. As our most trusted partners, we want to ensure that you receive the best pricing on QuickBooks Online, with up to 50% wholesale discount. With wholesale billing, you control how the cost is passed along to your clients. The benefits include: - Bundling expenses: Add the cost into the services you provide to your clients - Easy tracking: Receive a monthly itemized bill for your subscription for easy tracking - Switch anytime: Remove clients from Wholesale billing seamlessly or cancel anytime Direct Discount Direct discount is when you add a subscription through QuickBooks Online Accountant, but you want your client to pay. The client will be required to enter their credit card information when they sign in to the newly created subscription, but they typically get a discount on the pricing for a finite period of time. If clients sign up for Direct Discount, they get a limited-time discount on their subscription which then reverts to the listed monthly charge. Your client is billed directly for the subscription. Adding new clients: QBO Accountant If your client is new to QuickBooks Online and hasn't signed up yet, you will want to add them via QuickBooks Online Accountant. If you, as their accountant and ProAdvisor, set this up for them, you'll be able to: - Ensure they're signed up to the subscription level that best fits their needs - Take advantage of discounts, like wholesale billing - Access their books right away, using your own sign-in credentials, without waiting on an invitation - Assign access to team members in your firm to work on their books. Multiple users can be signed in at the same time Adding new clients: By Invitation If your client has already signed up to QuickBooks Online, they simply need to send you an invite. When you accept their invite, they'll be added to your QuickBooks Online Accountant, and appear in your client list. Adding new clients: Getting started As a minimum, you will need to enter: The business name and contact details The type of subscription How your client will be billed Which team members in your firm need access to the client's QuickBooks Online Adding new clients: Basic setup The first time you open your client's QuickBooks Online, you will be asked to provide more information about them in the new client setup wizard. When you answer these questions, QuickBooks Online will begin to customize the setup to meet your client's needs. You can still fine-tune these settings at a later date. For basic setup, you need to know: - Your client's industry How they make money: e.g. retail, by project, or as a service provider - Their business type: e.g. sole proprietor, corporation, partnership, or nonprofit What they need to do in QuickBooks Online: - Send and track invoices- Organize expenses - Manage inventory - Track retail sales - Track bills - Track sales tax - Pay employees Adding new clients: Fine-tuning QuickBooks Online can be fully customized to meet your specific client's needs. For example, here are just some of the additional features you may need to set up: Online payments Multicurrency Sales tax Adding new clients to QBO Accountant 1. Go to your Client Dashboard in QuickBooks Online Accountant 2. Select Add Client 3. Decide if the account is for a business or an individual. In this example let's assume it's a business 4. Enter the Business name 5. Add the client's email address 6. You can also add a Display name. This is how it will show in your QuickBooks Online Accountant Client Dashboard 7. Add their mobile number 8. You could also Add more info at this stage to capture their contact details, but we're going to come to this a little later 9. At this point in the setup process, you need to select whether the client is being set up with a QuickBooks Online subscription or not. If you choose Subscription, then the process will continue with the steps below. If you choose No Subscription, there is just one item left to do. Select which team member will have access to this client and then select Save to complete the process 10. Choose whether this client will be charged via Wholesale discount (bill your firm) or Direct discount (bill your client) 11. Select the subscription level suitable for their needs and select Save 12. If this is the first client you have added, you'll need to enter your firm's billing information to charge your account for clients on wholesale billing. You also have the option to include payroll at this stage and you can assign further team access to the new client subscription 13. Then select Save You can see the number of unreconciled transactions and the date the books have been reconciled through using the Reconcile tool in QuickBooks Online. COS: Common Issues The Common Issues tab is where you'll see some diagnostic information about the condition of the data in QuickBooks Online.Here, you can quickly check: - The number of uncleared transactions in the Undeposited Funds account register - The balance in the Opening Balance Equity account, which should always be at zero - Any transactions that QuickBooks Online has automatically categorized to the Uncategorized asset accounts COS: Undeposited Funds/Uncategorized Assets If a balance is displayed in Undeposited Funds, you can view the activity associated with that balance by selecting the balance amount. This opens the register. Select the Uncategorized asset account to view transactions that have been categorized to this account. It looks as if there are two sales receipts that deposited to the Uncategorized asset account instead of Undeposited Funds! COS: Uncategorized Income/Uncategorized Expenses Adding deposits without assigning an income account is a common issue among new users of QuickBooks Online. Such transactions will appear in the Uncategorized asset account. Just like the Uncategorized income account, most often transactions coded to the Uncategorized expense account are added from the Banking Center without being assigned an expense account. COS: Opening Balance Equity The Opening balance equity account should always be zero in QuickBooks. If you see a balance here, it's most likely because an amount was entered in the opening balance field during the creation of a new customer, vendor, Balance Sheet account, or inventory product. The last part of the Common Issues tab is negative asset and liability accounts. This section will display the number of accounts that have a balance contrary to their normal account balance (for example, a negative bank balance). COS: Transaction Volume The Transaction Volume tab is where, at a glance, you'll find the number of transactions for the client for the last 30 days. Transactions are grouped into Bank transactions, Invoices, Bills and Bill payments. This tab offers you a clear view of the client's workload. The Client Overview is a great way to see your client's account at a glance. What are the key benefits of this? - Concise subscription information - Recent banking activity stats - Early indications of banking errors Quickbooks Online Ecosystem a platform with an ecosystem of apps that you and your clients can assemble to build the perfect solution and the functionality that's needed. QBO Eco: App Benefits 1. Reduce data entry: Some apps automatically collect and input data, reducing manual entry errors and eliminating inefficiencies caused when entering data into multiple programs. 2. Solve industry-specific tasks: Specialized apps solve industry- and client-specific pain points such as sales force management, estimation, and job-costing. 3. Streamline workflow processes: Apps can offer robust features that optimize common business processes such as inventory management, shipping, and e-commerce or field- service management. 4. Expand business insight: Customizable reporting apps offer user-friendly dashboards and graphics that improve visibility into performance metrics and provide deeper business insights. 5. Security and/or the separation of duties: Some apps will allow the ability to add information to QuickBooks Online without giving access to sensitive company information. Quality assured appsIn order for an app to be listed in the QuickBooks Online Accountant Apps tab and/or the QuickBooks App Center at apps.com, the app must be approved by Intuit. Once an app has been approved by Intuit, you can add it to your client's account, or they can sign up for it themselves. How do I know which apps to recommend? - App listing - Browsing - Overview - Reviews App Listing Easily start your app research by browsing our tailored app carousels on the QuickBooks Online Accountant Apps tab and apps.com. See which apps are trending, new, top-rated, featured, and specific to business types on apps.com, or search by apps we recommend for clients or for accountants when researching on the QuickBooks Online Accountant Apps tab. Browsing All apps are pre-categorized into the tasks they help resolve. By selecting Browse Category, you can filter apps by the problem you are trying to solve. Overview Understand the key benefits offered by an app as well as how the app works with QuickBooks Online. Reviews The steps in the QuickBooks Online Accountant QuickStart template for onboarding aren't just a set of tasks to check off, but a list of opportunities to add value and develop a great working relationship. OW: Meeting the client and gathering information As we've seen, by using the New Client Checklist and asking the right questions, you can more accurately scope the client engagement, set expectations, and build a stronger collaborative relationship for the upcoming onboarding process. Once the contract is signed, providing a detailed onboarding plan and introduction to the onboarding team, and agreeing on payment arrangements are key ingredients for success. Getting this right gives the client the reassurance they may need that they're getting expert advice. OW: Recommending the best QBO solution A completed New Client Checklist will provide you with the information you need to recommend the best QuickBooks Online solution for your client. The completed Client Profile section will provide the information you need to complete the client's account settings for them. You can even request a copy of your client's logo to surprise your client with a customized homepage and sales template! OW: Customization Whether you're advising on a custom payroll setup, adding logos, or improving sales form templates, you can demonstrate your value to clients by helping them to build the best workflows for their unique business. When setting up lists for businesses new to QuickBooks Online, review their current customer/vendor lists to determine if you can utilize the current data to import into QuickBooks Online or if you can tailor it to their needs with some adjustments to their lists and categorization options. OW: Training and mentoring It's a great idea to help clients help you as their accountant/bookkeeper by training them in best practice methods. Training and mentoring also allows you as a ProAdvisor to highlight your value as a subject-matter expert, not just in accounting best practice and requirements, but also in how they should work in QuickBooks Online to get the best results. It's a great time to remind them to download the QuickBooks Online app so that they can keep track of their finances on the go. The sooner they're confident in recording their day-to-day transactions, the sooner they'll see the value and time-saving benefits of QuickBooks Online and their trusted advisor—you! QBO Status Updates There are lots of benefits of having your client's financial information in the cloud. But what happens if there's a problem? As part of your client onboarding process, it's a good idea to make them aware of how to deal with outages. SU: How do I know if there's an outage? In the U.S., we continuously monitor QuickBooks Online for outages and slowdowns. We provide status updates on any service outages or interruptions here. If you or your client have any problems accessing products in the QuickBooks ecosystem, visit this site to see if there's a service interruption. SU: How can I get notified when it's fixed? If any of the products experience an outage or interruption, the banner will let you know what's happening. By selecting the Subscribe button, you'll be automatically notified when the service issue is addressed and resolved. Where can you find the QuickStart of client onboarding tasks? - In the Work tab of your QBO Accountant firm What is the Chart of Accounts? The purpose of bookkeeping is to create a record of financial transactions that are organized in a way that allows you and your client to analyze the business financial data, run financial reports, and prepare for taxes. These transactions are organized in the Chart of Accounts, which forms the backbone of the accounting system. How to add a Chart of Accounts Now that you understand the importance of the Chart of Accounts, let's see what it looks like in QuickBooks Online. Craig needs to create a subaccount to capture the professional fees his business incurs. Once set up, this will help him track money he pays to professionals to help you run his business. When you create a new account, you can assign it a name which will appear in the Type column. The type is broken down into Assets, Liabilities, Equity, Income, and Expenses. 1. To begin, select Accounting to see a list of Craig's existing accounts 2. Select the green New button 3. Using the drop-down list, set Account Type as Expenses. When you select the account type, you are given a description of what this type is used for. It's important to choose the right one so that it flows through to the correct financial statement 4. Set the Detail Type as Bank Charges 5. Name the account Merchant processing fees. Custom names will help you and your client to quickly identify the account 6. When you are happy with your account details, select Save and Close You can now see your new account in the Chart of Accounts. It's worth noting that we could also add subaccounts of Merchant processing fees, for example PayPal processing fees, the expense will be associated with that account. 2. Under Your Company, select Account and Settings 3. Select Advanced from the menu 4. In the Chart of Accounts section, select the edit (Pencil) icon 5. Check Enable account numbers and Show account numbers Note: Enabling account numbers affects all users in your company. Showing account numbers only affects the user who is signed in. 6. Select Save and then Done. Now we can check and assign the account numbers in the Chart of Accounts. QuickBooks Online may automatically assign account numbers when you first turn on the account number option. These default numbers can be changed as needed to align with each firm's numbering convention. 1. Select the Gear icon on the Toolbar 2. Under Your Company, select Chart of Accounts 3. Select the Pencil icon above the Action column 4. In the Number column, enter the account numbers, these can be up to seven digits long. We can then go on and add appropriate numbering for all of Chris's accounts. 1. Select Save and we're done Editing Account Names Sometimes it's a good idea to make things a little easier for clients by making account names more appropriate and easily identifiable. This helps them avoid errors and posting to the wrong accounts when recording transactions. In Chris's COA, we're going to make his petty cash account more identifiable by changing its name from the default Cash on Hand account to Petty Cash. To edit the name of the account: 1. From the Left Navigation Bar, select Accounting and choose Chart of Accounts 2. Then find the Cash on Hand account in the list 3. From the Action column drop-down menu, select Edit 4. In the Account dialog, update the Name to Petty Cash 5. Select Save and Close Merging Accounts and Making Accounts Inactive Merging and deactivating accounts may be more appropriate or more necessary when onboarding clients who have already started using QuickBooks Online. QuickBooks Online users that haven't had ProAdvisor guidance, tend to add lots of additional accounts when recording transactions. Merging Accounts Merging accounts is a good idea if two accounts are being used for the same thing. This is a more common practice when a client has started using a file and has added accounts that they did not need for their recording and reporting purposes. However, a default COA setup can still be optimized by merging accounts. In Chris's case, the accounts haven't been used yet, so they have no transactions linked to them. If they did, the transactions for the merged accounts would also be merged to appear under one entry in any reports we run. Note that the merging process is permanent and cannot be reversed. 1. Select Accounting in the Left Navigation Bar, then choose Chart of Accounts 2. Locate the account to be merged in the list. In this case, we're looking for his Bank Fees account which we're going to merge with his Bank Service Charges account (because he doesn't need both) 3. In the Bank Service Charges row, select the downward arrow under the action column and select Edit 4. Highlight, right-click and copy the name of the account Bank Service Charges 5. Select X to close the Account editing window 6. In the Bank Fees row, select the downward arrow under the action column and select Edit 7. In the editable Account name text box, change the name of the Bank Fees account to Bank Service Charges 8. Select Save and Close 9. When prompted whether you want to merge the accounts, select Yes Making Accounts Inactive When setting up a client file, it's a good idea to make any default accounts inactive if they aren't going to be used. This keeps the COA tidy and efficient and prevents the client from posting transactions to the wrong or a redundant account in error. One of Chris's accounts isn't appropriate for his needs. Let's make it inactive, so it no longer appears in his Chart of Accounts and in other places where accounts can be selected (such as account lists on invoice screens). 1. Select Accounting in the Left Navigation Bar, then choose Chart of Accounts 2. Find Corporate Taxes in the Chart of Accounts list 3. Select the drop-down in the Action column, then choose Make Inactive 4. Select Yes to confirm If we need to make an account active again, the steps are: 5. Above the Action column, select the small Gear icon, then check Include inactive 6. Find the account you want to make active again 7. Select Make active By default, inactive accounts are not visible from the Chart of Accounts. If the account contains transactions, they remain as part of the company data. Inactive accounts are still visible on reports if transactions were posted to the account when it was active. The accounts are listed as deleted on reports. Account Editing Limitations: You cannot delete or merge the following accounts: - Undeposited Funds: You cannot delete this account because it is required to properly record payments before they are deposited. - Opening Balance Equity: This account is the default account for adjustments. You can only edit the name of this account, if necessary. - Retained Earnings: This account is the default account for reporting retained earnings on the Balance Sheet report. You can change the name of the Retained Earnings - adds the quantity and rate columns to sales and purchase forms. Chris wants his customers to know how many hours he is spending on the work he does for them and how much material is used in each job, so he'll turn this feature on. Product and Service Settings: Track inventory quantity on hand - turns on the inventory-tracking feature in QuickBooks Online Plus and Advanced subscription levels. Chris won't be tracking inventory in his business so he can leave this feature turned off. Importing products and services There is a quicker way to input products and services into QuickBooks Online. If, like Chris, you have a bunch of products and services in a spreadsheet, you can do a quick import to bring them all in at once. Open your client's QuickBooks Online company. When importing the Products and Services list, it's important that the list is created in the correct format in Excel. To ensure this, use the template supplied by QuickBooks Online. Go to the Gear icon and select Import data Then select Products and Services Select Download a sample file to get a pre-formatted Excel template to create Chris's Products and Services list It's a good idea to download the sample file to see the naming conventions, how the columns are ordered, and the fields that can be imported. You can give this list to your client and ask them to populate the columns with their data. Check that your list matches the sample file. Alternatively, you could change your spreadsheet to correspond with the sample spreadsheet, making sure the columns are in the correct order. If using the template, delete the sample data first and then add the data we have from Chris about his products and services Note that we don't have to have all of the data in the spreadsheet because we can add it later (including income accounts). Go to the Sales Center and select the Products and Services tab Select the drop-down arrow next to New Select Import Select Browse and find the file we populated with Chris's data, then select Open Select Next We can now check the data-mapping fields and confirm you mapped correctly. Notice the areas in the Income account column—this means we need to map these items to the correct income accounts in the COA we created for Chris in the previous lesson Select the drop-down for each listing and select the correct income account Once this is done, select Import Note that we can remap any product or service to another income account at any time by selecting Edit and choosing another account. We can also make any other edits, such as changes to the product or service name here too. Adding a preferred vendor Like most businesses, there are a number of things Chris needs to buy from vendors to help him run his business. Just like with the products and services he sells, he can add these items to his Products and Services list. To speed things up when he creates purchase orders and bills, he can assign these purchase items to a preferred vendor. Watch the video to see how it's done. The individual steps are below for you to follow. Chris has just agreed a preferred vendor rate with a company that sells specialty wire he uses in installations, so let's set that up for him. Select the Gear icon. Select Products and Services in the List column Select New Select Non-inventory In the Name box, type Specialty Wire - Bus Cable, 22 AWG, 2 Conductor, Bare CopperBecause this is something Chris buys, rather than sells, we need to: Uncheck I sell this product/service to my customers Check I purchase this product/service from a vendor Add a description of Bus Cable, 22 AWG, 2 Conductor, Bare Copper The price will vary, so we'll leave that empty From the Expense account drop-down, select Job Materials PurchasedWires Direct is Chris's new preferred vendor for this specialty wire, but he hasn't set this company up in his vendor list yet. That's no problem—we can add it here. In the Preferred vendors box, type the vendor's name, Wires Direct and select Add Wires Direct to add them as a vendor in the Vendors list Select Save. We can go back later and add their details Then select Save and Close Well done! This will now show in the Products and Services table and we can even check to see the Expense account we mapped it to. Adding Customers: Details Address, Notes, Tax Info, Payment and billing, Attachments Adding Customers:: New Customer Go to the Sales Center and select the Customer tabHint: If this is the first customer you have added to Chris's company, you are taken straight to an easy entry screen. If you've been here before, just select New customer in the top right. Enter the customer details from the business card Select the Save button You now want to edit this customer's details to add some additional information Select the Edit button in the right As a nonprofit, his customer is not taxable, but you need to enter their reseller number. Select the Tax info tab and enter their reseller number (92-12345) in Exemption details Select Payment and Billing and set the preferred payment method to Credit Card. Select Save Adding Customers: Importing Customer List To make it easy to import customer lists into QuickBooks Online, we recommend downloading the Customer List sample file as a template. Just like we saw with the Products and Services list, simply download this sample file then copy and paste the data you have received from your client (or from another system) into each of the columns. Once you've correctly formatted your Excel data, Track payments for 1099 selects the vendor to be used in the 1099 wizard when creating Forms 1099-MISC in QuickBooks. Adding a vendor Select Expenses from the Left Navigation Bar Select Vendors Hint: If this is the first vendor you have added to Chris's file, you are taken straight to an easy entry screen. If you've been here before, just select New vendor Enter Lang and Sons Electrical Supply to the Company field In the Address field, add 8839 East Smoky Hollow Court, Rochester, NY, 14606 In the Email field, add Angela@email.com Phone: 555-5570 Mobile: 555-556-9019 Leave the Opening balance as zero In the Terms drop-down, select Net 30 Enter the date Select Save This entry will now show in the Vendor list in the Expenses Center. Importing a vendor list Chris has forwarded us the list of his vendors, so let's help him by adding it into QuickBooks Online: First, we select the Chris's vendors file and download it to the Desktop of your PC or Mac so you can find it quickly From the Dashboard, select Expenses from the Left Navigation Bar In the Expenses screen, select the Vendors tab Select the drop-down arrow next to the green New vendor button and select Import vendors Now browse for the Chris's vendors file you downloaded Select Next Because the fields have been set up to match QuickBooks Online format, they will have imported correctly. It's a good idea to have a look at the sample file for future reference, then you can advise your client on how to prepare the lists for import. Select Next Make any necessary edits Select Import All the vendors and their details should now be in the vendor list, in the Expenses screen under the Vendors tab, ready to use. If an opening balance of $100 is recorded for a vendor you just added, QuickBooks Online creates a journal entry. Which 2 options from the list are features of this journal entry? - The journal entry will increase accounts payable - The journal entry will decrease the Opening Balance Equity account Connecting Bank Feeds Go to the Banking Center in the Left Navigation Bar If it's the first time here, select Connect, otherwise select Add account Select the bank Use the regular username and password to sign in (as for banking online). (You might want to do this with your client so they sign in to their bank and you don't have their banking password) It might take a couple of minutes for the bank's database to talk to QuickBooks Online. Choose the bank account for the business and the account in QuickBooks Online If you don't see a QuickBooks Online account in a list that matches the bank account, don't panic. Just select Add New Choose the account type, either bank or credit card, and choose a detail type Give the account a name, then select SaveIt's that simple!QuickBooks Online connects to the account and by default downloads all the transactions for the last 90 days. What is OAuth? OAuth stands for open authentication. It means that your client no longer has to provide their bank username and password after initial setup. Instead, your client gives permission at their financial institution (FI) for QuickBooks Online to access their account. Their bank sends QuickBooks Online a token that is used to access their account. After that, QuickBooks Online can still securely access the account even if your client changes their password, giving them a more reliable connection. Which bank are moving to this connection? QuickBooks Online is working with individual banks to change the way it connects to them. This is why your client will only see some banks offering this new connection, at least for now.So far, Capital One, Chase Bank, Wells Fargo, Bank of America, PNC, USAA, US Bank and Citi have agreed to move toward a better connection for QuickBooks Online customers. You can find more exact dates and timelines for each bank here. Over time, more FIs will make the move, so stay tuned! Can anybody who has access to the bank website set up the new OAuth connection? Some banks or financial institutions have restrictions on who can establish this new OAuth connection. The primary user for the bank's website can always set up the connection, but sometimes delegate or secondary users can't establish the connection. For more information, take a look here. However, this is not something you can do on your client's behalf because it requires the sign-in credentials for their bank or financial institution. Is there a deadline for my client to update their existing connection? It depends on which bank they're updating. Each bank gives a window of time to migrate customers over to the new connection. Usually, this window lasts 31 days to give your clients enough time and warning to update their connections Make sure your clients update their connections before the deadlines, or their accounts won't be able to keep syncing in QuickBooks Online How much historical data does the new connection bring in? If you know your item can sometimes be taxed differently, or you are unsure, select Choose a special category. Setting Up Product and Services: Step 2 You can drill down into the different categories to select one that is most like what is sold. Once you find a category that describes what is sold, go ahead and select it. Setting Up Product and Services: Step 3 Selecting a heading opens up more options so you can get to the detail you need. Setting Up Product and Services: Step 4 You will see the category reflected on the item create screen, and the QuickBooks Online Tax Engine will automatically apply the correct sales tax rate based on where the item is being sold. Apply Sales Tax Clients like Cindy no longer have to select the tax rate because QuickBooks Online works it all out for them based on: The state where they're registered to collect sales tax The physical address of the client's business The customer's physical address The customer's sales tax status The tax category for the product/service Watch the video to see how the calculation on each sales transaction is worked out.Note that you check the sales tax calculation on invoices via a link. Selecting the See the Math link on the invoice will open a pop-up that shows you how sales tax was calculated. The Sales Tax Center As clients collect sales tax from their customers, the Sales Tax Center will keep track of how much sales tax they owe to each tax agency.Let's take a quick tour around its key features in another client's QuickBooks Online. Sales Tax Center: Sales Tax Due This is the total amount your client currently owes to one or more tax agencies. Sales Tax Center: Tax Breakdown Area Due this month: This shows taxes that are currently due, in other words, require more immediate action.Upcoming: Shows tax amounts being accrued for the following period.Overdue: Shows taxes in which the due date has passed and no tax payment has been recorded within the QuickBooks Online account. Sales Tax Center: View Return When it's time to file the return and for your clients to pay sales tax, you can View return to give you the information you need to file the tax return outside of QuickBooks Online. Typically, you need to go out to the state's website to pay the tax and file the forms. You then record the payment in QuickBooks Online, so that it can be marked as filed and moved to your client's history area.Record the payment in QuickBooks Online by selecting View return and then the Record Payment button. Sales Tax Center: History Here, you can review any returns that were previously marked as paid/filed within QuickBooks Online. Sales Tax Center: Sales Tax Setting Here, you can view and edit any tax agencies you have set up within your client's QuickBooks Online account, and add new agencies. A tax agency can be made inactive at any time by selecting the Edit button next to it. Sales Tax Center: Reports You have shortcuts to the Sales Tax Liability report and the Taxable Customer report. All other reports can still be found using the Reports tab on the Left Navigation Bar. Sales Tax Center: Shortcuts Shortcuts here mean you can be just one tap away from everything that feeds into sales tax calculations, like customer addresses, product and services lists, and more. Once sales tax has been set up, what criteria does QuickBooks Online use to calculate the sales tax owed on an invoice? (Select all that apply) - The state where you are registered to collect sales tax - The physical address of the client's business - The customer's physical address - The customer's sales tax status - The tax category for the product or service Your client wants to review how much sales tax they paid last quarter. Where will they find this information in the Tax Center? History - The History link is where you review any returns that were previously marked as paid/filed within QuickBooks Online. Setting Up Payments: QB Payments have to offer? As Chris's business expands, he'll have more and more customers paying invoices at different times. No matter how many payments per month Chris expects to receive, QuickBooks Payments will make this a seamless process. QB Payments: Key Features What fees are involved? Chris will pay a small fee per transaction processed. The merchant service plans include Amex, MasterCard, Visa, and Discover. Once Chris has applied for QuickBooks migrating, select the Help menu then Contact Us from QuickBooks Online Accountant and follow the instructions to receive a callback from Support. Note that the QuickBooks Payments account can be used with either QuickBooks Desktop or QuickBooks Online at any given time. It won't work with both simultaneously. Signing Up for QB GoPayment For clients who are out on the road, a mobile point-of-sale app like QuickBooks GoPayment is an ideal way to get paid fast. With a free mobile credit card reader, they can easily accept mobile payments on goods and services—anytime, anywhere. What's more, the transactions automatically reconcile with QuickBooks Online for hassle-free bookkeeping. With a free Bluetooth-enabled mobile card reader, clients can accept magstripe and EMV chip debit and credit cards, along with Apple Pay, Google Pay and Samsung Pay. Even without the reader, they can use the mobile app to take all payment types—cash, check, or card—and track each sale transaction. There are no upfront costs or hidden fees: clients pay 2.4% + $0.25 per card transaction. Clients can access the app from: Google Play Store (for Android users) Apple App Store (for iOS users) Once clients have signed up to GoPayment they need to connect it to their QuickBooks Online Account. Choose the Gear icon, then choose Account and Settings or Company Settings Select Payments from the left-hand navigation In the Existing account section, select Connect QuickBooks Online will search for any merchant accounts associated with the user id Confirm that the correct merchant account is listed Select Link account to link the account To set up a client with QuickBooks Payments via the setup wizard, you'll need to check or fill in information in three sections. What are the three sections? - Company Owner info - Company info - Company bank details How to add apps for youtr client Many clients have industry specific needs or require functionality that captures data specific to the unique way their business works. Often the best option here is to find and add an app to the client account that will do the job and save you and them time and money. So, whether it's automating data entry so you can spend more time advising your clients, or adding industry specific interfaces to allow clients to work with the app and give you the data you need to manage their books, there's an app out there that can help. But for busy accountants and bookkeepers, keeping track of which client is using which app is important, so how do we do it? Who can add apps? Not everyone with access to a client account can add apps via QuickBooks Online Accountant. Whether you can or not depends on the permissions granted to you as a team user. Let's take a look at who can add apps to both the firm's books and clients' QuickBooks Online. Tracking client apps It's easy to keep track of the apps your clients are using. Start by selecting Apps from the Left Navigation Bar of your QuickBooks Online Accountant homepage. You can select the tabs at the top to see any apps your firm or clients have. Select the tabs/steps in turn. Finding apps The Find Apps tab is where you can browse through different categories of apps available to clients and your firm. Client apps Select the Client Apps tab to see a list of all the apps that are connected to your clients. You can easily search and filter the list. Apps for your firm Here, you'll find a list of all the apps your firm is connected to. Select Actions to launch the app, change settings, rate the app, or disconnect it. Adding apps to QBO If you're the Firm Primary Admin or Full Access Team user, then adding apps to your client's QuickBooks Online is straightforward: just a few simple steps and your client is up and running. Start by selecting Apps from the Left Navigation Bar of your QuickBooks Online Accountant homepage. You'll see a range of handpicked apps but you can search for a particular app or browse through different categories. Let's select one and see how we can check it out to see if it's right for our client. Select each hotspot in turn to see how it's done. Adding apps to QBO: Overview You'll start here on the Overview tab of any app you select. The Overview gives you key information about the app and its benefits. There are usually screenshots and videos to show how it works so you can get a feel for it. Adding apps to QBO: Pricing QuickBooks Online Premium Payroll is the perfect way to manage your payroll needs. The Premium payroll subscription includes all the features of Core, plus same-day direct deposits, expert setup review and TSheets time tracking. QBO Payroll: Elite QuickBooks Online Elite Payroll is the most robust option. It has a complete payroll service with a team of U.S.-based payroll experts to take care of payroll for your client. QuickBooks Online Elite Payroll includes TSheets for employee time tracking, and guarantees accuracy, so the payroll setup, payday, and taxes are done right. If there is ever an issue, Intuit offers full tax representation to take care of it for you. Which payroll option would you recommend so that Intuit's penalty-free guarantee protects you and/or your client? With QuickBooks Online Elite Payroll, if there is ever an issue, Intuit offers full tax representation to take care of it for you.* *Terms and conditions apply. Adding extra lists There are several other lists that can be set up as required, depending on your client's needs. To take a look at the other lists that are available, go to the Gear icon and All Lists. Here are some you might find useful. Select the tabs in turn to find out more. Adding extras lits: Payment methods This displays cash, check, and any other ways you categorize payments you receive from customers. That way, you can print deposit slips when you deposit the payments received. Some examples of other payment methods are ACH or EFT. Also, you may want to have payment methods for each type of credit card accepted. Adding extras list: Terms This displays the list of terms that determine the due dates for payments from customers, or payments to vendors. Terms can also specify discounts for early payment. Adding extras lists: Attachments This displays the list of all attachments uploaded. From here, you can add, edit, download, and export your attachments. You can also see all transactions linked to a particular attachment. Customizing Sales Forms: Invoices Let's take a look at how you can customize invoices for your clients. Alison Ganz is a bookkeeper on your team. She needs to create an invoice for an onsite service on behalf of Chris Grier and send it to a customer, Elizabeth Mason. The invoices for Chris Grier use the standard black-and-white template. Alison would like to apply a new logo supplied by Chris to the template. Once signed in to QuickBooks Online Accountant, select Chris's account Viewing Emailed Invoices Let's see how the invoice looks to Samantha Rembo. She uses her mobile phone to access the Gmail app. When she's busy, she finds it difficult to pay her invoices on time. Being able to pay directly from the email will help her manage her payments more efficiently. Samantha logs in to her Gmail account and finds the invoice from Chris She selects the email The key points of the invoice display within the email so that everything Samantha needs to understand and review is laid out clearlySamatha can see: who the invoice is from the amount owed the payment due date what the invoice is for and even the message reminding her to book a meeting to discuss her upgrade using the Pay button, Samantha will be taken directly to QuickBooks Online Invoicing where she'll be able to make her payment electronically, if she has signed up for this facility the full invoice is also attached as a PDF Clients can boost their payment speed to the next level by turning on QuickBooks Payments, giving their customers the freedom to pay their way by accepting all credit cards and free bank transfers. This allows customers to pay directly in the Online Invoicing portal at the tap of a button. This unique Pay Now link ensures that payments are encrypted. It's powered by technology from the makers of TurboTax and Mint, so it's secure and reliable. You are about to raise an invoice on behalf of Carol Walker, a small store owner. Walker's Wonders is a confectionery store with a fun and vibrant logo. The invoices for Walker's Wonders use a standard template. As well as adding the logo to the invoices, how else can you customize the invoice? Select 3 options. - Add color to the highlighted areas - Set the size and poistion of the logo - Change the font style and size Managing Client Access Clients with employees value the ability to control access to their QuickBooks Online, allowing them to choose who can see and edit their financial data. In this lesson, Cindy, who runs a retail business selling bee beauty products has a new employee. She needs some help setting up permissions for them. Client Acces: User Permission Settings Some of your clients will require employees in their company to manage or oversee parts of their business. Perhaps you want them to just enter time or review reports. Therefore, the clients will want permissions set up so they can fulfill their role. When you set up Cindy's Bee-uty Bar, you gave her full Company Administrator permissions to perform all tasks within her company's QuickBooks Online account. If Cindy wanted to give one or more of her employees access to the account, there are four types of user permissions that you can set up for her. We can see these two newly added users in the Manage Users list, and it will show them as Invited. Creating a No Payroll Access user Most of our clients would prefer their employees' salaries to remain private data: information to be shared between the employee themselves, their immediate managers, and human resources. In order to help this information remain private, you can now set access controls to enable only the users who require this information to see it. Cindy has another new team member, Stephanie Zau. Stephanie will be responsible for creating invoices and won't need access to payroll. Let's set that up. Watch the video to see how it's done. The individual steps are below for you to follow. Select the Gear icon. Select Manage users in the Your company column Select Add user Select Standard user, then Next Uncheck Payroll access, then select Next Set your preferred user settings, then select Next Enter Stephanie's first name, surname, and email address into the fields in contact info then select SaveAnd that's it! You have now added Stephanie to the team without payroll access. See it in Action A user without access to payroll will see QuickBooks Online slightly differently from those with full access. There'll be restrictions on what they can see but they'll still have access to all the areas of QuickBooks Online that they'll need in order to fulfill their role. Let's take a look at what a non-payroll user sees when signed in. The Employees tab of the Payroll Center An employee with no access to payroll information will receive a notice informing them of this if they select the Employees tab. The Employees tab is where all employees' personal and salary information lives. Stephanie does not need to see this information in order to successfully do her job. Limiting payroll access to those who require it helps to keep this information private and secure. In order to create bills or write checks, Stephanie still has access to contractor information. Running a transaction report Transaction reports may also include payroll entries. Because her day-to-day role and current level of access allows Stephanie to work unhindered across the rest of QuickBooks Online, she can still make full use of the facilities on offer, including reports. If an employee without payroll access needs to run a transaction report that includes payroll entries, these will still appear, but the names of the employees will be masked with the word Payroll. Bank register in the COA Employee payroll information appears on information produced in the bank register too.Some employees with non-payroll access need access to the Chart of Accounts, so here (as with the transactional reports, where payroll entries appear) the bank register will also mask the employee's name. Names will be replaced by the word Payroll. Reports Only user You have been asked to add a new user to another company. Ryan Zurowski has just joined the team and the owner wants him to be able to run reports, but without being able to change anything in the QuickBooks Online company. You set him up as a Reports Only user. Ryan has access to the new Reports Center. He will see the account differently from those with full access. Reports Only users: Select each hotspot in turn to see what's different - There's no navigation panel in the Reports Only view. Ryan doesn't require access to any other part of QuickBooks Online—everything he needs is on this view. - The Search icon has been removed. Everything Ryan needs is on this screen—he doesn't need to search for anything else. - Even if they are accessing the Reports Center from QuickBooks Online Accountant, a Reports Only user won't see the Accountant Toolbox. Ryan doesn't need access to this. - Ryan can still add reports he uses regularly to Favorites. - In order to focus on areas of the reports he needs for each task, Ryan can collapse report sections to hide data until he needs it. Switching between Accountant and Business view In QuickBooks Online, there are two user views: Business view and Accountant view. You can switch between them anytime. The main difference is the appearance. Feature, menu, and button names are different, but the actions in each view are identical in most cases. Some features are only available in one view or the other Accountant view As an accountant or bookkeeper, this is the view for you. It uses standard accounting language and gives you control over features like your client's chart of accounts and other features that are aimed at the experts. You may choose to recommend your client also uses this view, so that when discussing their accounts you both see the same product navigation. Business view Small business owners who use QuickBooks Online without the support of an accountant or bookkeeper might prefer Business view. This view simplifies the workspace so that day-to-day tasks like sales and billing are easier. It uses non- accountant terms. This lets them do their accounting without learning complicated steps or processes. How to switch views The Notes tab lets you easily capture notes created by your team. You can see who created a note and when. Here's how it works: When you add a note to the client file it's automatically stamped with the time and original author. Notes can be viewed and edited by all team members who have access to that client. Your client will never see notes added here, it's just for you and your team. You can include hyperlinks in notes to give your team fast access to relevant files and websites You can also add and view notes while you are in your client's books. Simply go to Accountant Tools and select Notes. Your notes will automatically sync to this client details section in QuickBooks Online Accountant and will only be visible to you. Client Details: Pinned notes You can also pin a note that is important or permanent, so it is easy to get that information at a glance. The Pins will always be listed on the right side of the Notes page. Client Details: Bookkeeping Here, you can see the closing date and QuickBooks subscription level. You can also see the Account Watchlist, which shows the current balances in the asset and liability accounts of the company, including key accounts such as checking and credit cards, and when these accounts were last reconciled. Client Details: Payroll If your client has QuickBooks Online Payroll, the Payroll tab shows the next pay date, the last pay date, and a summary of recent tax payments and form filings.It even links right into Payroll, so you can start the next payroll run directly from within QuickBooks Online Accountant. Client Details: Shared Documents Any documents you or your client upload to their QuickBooks Online My Accountant tab are stored here. With documents saved in a safe and secure location, there's no more worrying about sharing confidential information over email or wondering whether you're looking at the right version of a file. Client Details: Tax If you are using ProConnect Tax Online, you can view the filing status and access previously created income tax returns.You can also start a new tax return from here for non-QuickBooks Online clients or clients who are using QuickBooks Online but whose financial information you don't want to import into the tax return. Bookkeeping and Month-End Review The Bookkeeping tab gives busy practice owners an easy way to see the month-end review status of each client on their client list. Month-end Review is designed to help firms create a consistent and best-in-class monthly process for closing clients' books. You can find out how to use the Month-end Review functionality in the Month-end Review lesson.For now, let's take a look at how you can see an overview of your firm's progress. Progress tracking Progress tracking in the Client List makes it easier to identify roadblocks before the end of the month and provide additional support to bookkeepers who need it. There are three stages to the month-end review: Transaction review Account reconciliation Final review You can see the status of each stage as either: To-Do Waiting Done Month-end Review drawer You can drill down into the detail of a client's month-end review status by selecting the one of the Month-end Review status icons. A drawer slides out to reveal the detailed task list. In this example, perhaps the bookkeeper needs to schedule a call with the client to review their personal transactions to unblock the transaction review stage. Can clients see the notes in the client details screen? No - The notes sit inside QuickBooks Online Accountant, so only team members who have access to client files will be able to see them. This means it's a great way for team members to keep the client details up to date. Manging subscriptions QuickBooks Online is constantly evolving and that means clients will always have access to new and improved features. But the subscription level that was a perfect fit for them a few years ago may be a little too basic as their company changes over time. They may need more room to maneuver, and improved features and space to continue to grow into. In order to make the process quick and easy to navigate, the Your Account page allows you to view a client's subscription fees and billing history at a glance. You can also make quick changes to subscriptions from a central dashboard. The client's Usage Dashboard also makes it easy to check they're using the version of QuickBooks that has all the tools they need to get deeper insights, save time, and be more productive. Subscription and Billing Dashboard Let's take a look at the Subscriptions and billing dashboard in QuickBooks Online Accountant. You can find it from the Gear menu and then Your Account.The tabs at the top of the page allow you to easily access and update your subscription and billing information. Counts towards: Active classes and locations Added by someone with permissions in the QuickBooks Online account Generated by a third-party application someone with permissions has connected to the QuickBooks Online account* (these apps are allowed to add above the usage limits) Does not count towards: Generated by QuickBooks Online at sign-up or from usage of services such as:-Sales tax-Shipping-Multicurrency System-generated entries created by other QuickBooks-related offerings such as: - Payroll-TSheets Imported into QuickBooks Online from QuickBooks Desktop Usage Limits: How are limits calculated?: Billable users Counts towards: Billable users are admin, standard, and custom users Pending invites you've sent (until they're automatically removed in 90 days) Usage Limits: How are limits calculated?: Chart of Accounts Counts towards: Active accounts Added by someone with permissions in the QuickBooks Online account Generated by a third-party application someone with permissions has connected to the QuickBooks Online account* (these apps are allowed to add above the usage limits) Does not count towards: Generated by QuickBooks Online at sign-up or from usage of services such as:-Sales tax-Shipping-Multicurrency System-generated entries created by other QuickBooks-related offerings such as: - Payroll-TSheets Imported into QuickBooks Online from QuickBooks Desktop Usage limits: Penalties To be fairer to all users, QuickBooks Online accounts that stay beyond usage limits will not be supported and can lose functionality and be suspended. In October 2019, users started being notified if they were over their subscription limits. They either were or will be given options to upgrade. Accounts that stay over a limit once they have received this notification will be suspended on the next renewal date. If a client's account is suspended: You will have read-only access to the QuickBooks data for one year, meaning that you or your client won't be able to add new transactions or change anything You/they won't be able to reduce usage You can't upgrade in QuickBooks Online You will lose any special wholesale billing discount of QuickBooks Online for this client You/they can export data to Excel or a desktop version of QuickBooks If your client is signed up for QuickBooks Online Payroll via their QuickBooks Online subscription, the Payroll subscription will also be suspended After your client's account is suspended, you'll need to contact QuickBooks Online to reactivate the account. Upgrading and Downgrading Keeping track of and managing usage is important to clients and, in fact, all QuickBooks Online users. The subscription level that was a perfect fit a few years ago may be a little too basic now. They may need more room to maneuver and improved features and space to continue to grow into. Let's look at how to upgrade and downgrade a client file. How to upgrade clients who aren't part of wholesale billing? (i.e. direct billing?) Select the Gear icon in the client's company and select Account and Settings Select the Billing & Subscription menu In the QuickBooks Online section, select Upgrade your plan In the Upgrade page, choose the plan you want and select Upgrade Confirm your payment information and select Save How do I upgrade clients on wholesale billing agreements? Select the️ Gear icon in your QuickBooks Online Accountant company file, then Subscriptions and billing In the Your subscriptions section, locate the client Select the Upgrade option in the Select Action column You can't upgrade pending wholesale clients. You must wait for that company to be fully moved over to your Wholesale billing account before you can make changes to a company's subscription. What should you consider when downgrading a client? Features: Downgrading means losing some features in your client's current QuickBooks Online plan. Make sure the new QuickBooks Online plan will meet their needs. Check out this comparison chart to review what will be lost when they switch Third-party apps: Changing a plan might affect some third-party apps connected to QuickBooks Online. This happens when the new plan doesn't support the feature the client app works with. Review each affected client's apps by selecting Apps in the Left Navigation Bar in QuickBooks Online Accountant, then selecting Client apps Plan discounts: Downgrading will remove all discounts on the current plan Would a client benefit from downgrading their subscription? For a variety of reasons, not every business keeps growing or grows as expected. Lifestyle changes or even a return to full-time employment may mean a client has smaller goals or expectations. To downgrade a client who isn't part of Wholesale billing, i.e. direct billing: Select the Gear icon menu in the client's company and select Account and Settings Select Billing & Subscription. Make sure your payment info is updated and valid Select Downgrade your plan. The Downgrade page shows your current plan, and other plans you can downgrade to. If you can't see the Downgrade option, go to qbo.intuit.com/app/changeplan to downgrade Find the new plan you want based on the feature list, then select Choose Plan Review what goes away with your new plan. If you're ready to downgrade, select Next Review your new billing details. Select Change plan to complete the process For wholesale clients, sign in to your QuickBooks Online Accountant company file, then: Select the️ Gear icon in your QuickBooks Online Accountant company file, then Subscriptions and billing In the Your subscriptions section, locate the client We want the new bookkeeper to have Custom access to your firm's information, so select that from the first Access drop-down listWe can choose whatever access level the team member needs to have by selecting access levels to your firm's administration information and books. We can see information on each category by hovering over it. Alison, as a bookkeeper, needs access to the firm's books. Select Yes for each of the headings Customers and accounts receivable and Vendors and creditors Then select NextHere, you can set access to specific clients, so let's give our bookkeeper access to Cindy's Bee-uty Bar from the Specify client access screen Select Save That's it! We've successfully added Alison to the firm's books, as well as giving her client access to Cindy's QuickBooks Online account. Team Access Rights Let's see what happens when Alison signs in to QuickBooks Online Accountant to create an invoice for some accounting work the firm has done for Ravela NestEgg Properties. Watch the video to see how it's done. The individual steps are below for you to follow. Sign in to QuickBooks Online Accountant as Alison Select Sales from Your Books in the Left Navigation Bar Go to the Invoices tab and select Create invoiceBecause Alison has been given access to the firm's customers, and accounts receivable and vendors and creditors, she can see the full list of the firm's clients in the customer list. Select Ravela NestEgg Properties as the Customer In the Product and Service drop-down, select Hours The Description is Bank reconciliation The Quantity is 2 and the Rate is $100 Then Save and Close (if defaulted to Save and send, use the arrow next to the button to select Save and Close)But let's take a look at what she can see in the Client List.What you'll notice is that even though Alison can see all the open invoices for the firm, she can't access these clients' QuickBooks Online accounts. We only gave her client access to Cindy's Bee-uty Bar. So that's the only client she can see. Searching the Team List If you're working in a large practice, the list of team members can be long. You can search the Team list to find people. Simply start typing the team member's name in the Search box to filter the list. Assigning a Client Lead If you're working in a large firm, then chances are you won't be involved with every single client. More likely you'll have a limited number of clients assigned to you. Clients appreciate the trust that comes with an ongoing relationship with an accountant or bookkeeper, and one way to provide this continuity of service is to assign a Lead accountant or bookkeeper. Let's look at how to assign Dianne Doolittle as the Lead accountant to Chris Grier Master Electrician. Watch the video to see how it's done. The individual steps are below for you to follow. Start in the Client list in QuickBooks Online Accountant Select the Filter button Select Edit Leads Go to the Chris Grier Master Electrician client row and select the Lead drop-down Choose Dianne Doolittle Save the change You can see that Dianne's initials now appear as the lead for Chris's client file This means Dianne can easily filter the list to show just the clients she's responsible for. Your practice manager has decided to split administrative functions for managing the firm's books between two bookkeepers. Jessica Chen will look after invoicing and Leslie Orlando will manage the firm's bills and expenses. Which team permissions should you set to Yes for Jessica Chen? 3 Customers and accounts receviable - By giving Jessica access to customers and accounts receivable, she'll be able to create invoices for any of the firm's clients, but without being able to access their QuickBooks Online data. Managing your work For Lisa and her busy bookkeeping and accounting team, the number of deadlines they have to juggle can be crazy. Missing a deadline can have serious consequences, like a fine or even losing a client. What Lisa really needs is a way to keep track of it all, so nothing falls through the cracks. The work features in QBO Accountant let you: Create projects and tasks right from your Work dashboard for all your clients, even if they don't use QuickBooks Online Add projects and tasks to track work for your firm Assign projects or specific tasks to you or your team members Set up repeating projects for the same client that will occur on a regular basis Duplicate existing projects across multiple clients to save time on manual entry Managing the Work center QuickBooks Online Accountant lets you organize your team and your clients in one central location. If your client doesn't use QuickBooks Online, no problem. You can add them as a client at the same time you create a project. All you need is their name and email address. No more need for separate to-do lists for different clients. Features on the Work center dashboard can help you manage requests and messages for your clients, along with all the work you do for them. You'll be able to manage your practice and stay organized, never missing a deadline! When you look at the Work center dashboard, you'll see a bird's-eye view of what's coming up for your firm, all organized by due date. Visualizing your work in this way means you can see straight away what's due today, next week, or next month. This will help you focus your attention, manage your time, and better understand your firm's Monthly bookkeeping Yearly taxes Custom templates Custom templates allow you to build workflows specific to your firm's or clients' needs. They can be created from a QuickStart template or project, or from scratch. Once the custom template has been created, your team then has a consistent workflow to apply every time. For example, a common workflow for Lisa's firm is to manage their monthly client billing. She could save time by creating a custom project template with tasks to: Approve billable time Approve expenses Create the client invoice Create a project using a QuickStart template For some of Lisa's clients, the monthly bookkeeping workflow is pretty much the same tasks done in the same order by the same team members. QuickBooks Online's QuickStart templates are perfect here and will save Lisa a lot of time because she doesn't have to build a project from scratch. The work is already done and ready to pick up from the template list. Watch the video to see how it's done. The individual steps are below for you to follow. From the QuickBooks Online Accountant homepage select the Work tab Select Create project In the Project template field, select Monthly bookkeeping In the Create project window, you can see that by default, this template contains eight tasks. We need to add a project, name, let's call it Monthly bookkeeping Select the client the project is for. In this case, it's Cheng's Master VA & Designs Select the date the project is due. As this is a monthly project by default, it's automatically set to repeat, so we just need to select the day of the month it needs to be done by. In this case, select the Last Monday of the month Next, assign the project and its associated tasks to a colleague. Select Alex Reedsmith from the drop-down list Add any details you need to. These might be client-, firm-, or colleague-specific Review the tasks list and select Save Back on the Work screen, select Everyone from the drop-down listHere, you can see the new project tasks for Cheng's Master VA and Designs. Simply select a task to view the details. And that's the new project all scheduled and ready! Client Requests With Client requests, you can access shared documents and message clients securely, straight from your Work center dashboard. Managing Client Request You and your client will no longer need to share sensitive information over email. Client requests enable you to share messages and upload documents with ease—and it's all secure. All your requests are received and organized in your clients QuickBooks Online account. They can be found in the My Accountant tab. Clients can track your requests by due date, so they won't miss a thing and you'll get what you need on time. Your client can respond and share documents inside QuickBooks Online, so their sensitive information is safe. Documents you and your client share this way will also appear in the Shared Documents tab, in the Client details in your Client list; meaning you never miss a thing. Creating a Client Request Lisa and her team love how this keeps them on track with managing client work. Right now, she wants to send Dan Cheng a client request for him to send her his bank statement. Watch the video to see how it's done. The individual steps are below for you to follow. From the QuickBooks Online Accountant homepage, select Work in the Left Navigation Bar Select Create client request Enter the request name Need bank statements From the Client drop-down, select a client, in this case it's Cheng's Master VA & Designs Set a due date As it's a new request, the status is To do Next we add the details of what we need Dan to do You can decide whether to include an email notification for your client Select Publish to Client's QuickBooks Check the email and then Publish and send emailLet's see how this looks to Dan. All your requests are added to your client's My Accountant. Here Dan can easily upload his bank statement to send back to Lisa. Let's see how he does it. Select Add Document Select the file to be uploaded Add Comments and PostLisa can see the update on the client request and let Dan know she's received it. It's the perfect way to keep all those client back and forths in one place, rather than trying to keep track of multiple emails. Now that you've seen it in action, let's take a look at a couple of specific tasks.The bookkeeper looking after Ravela NestEgg Properties has a project to review the bank accounts. He needs to ask his client Mylene to send him the most recent statements. Where does he need to do this, so the conversation is tracked in QuickBooks Online Accountant? Identify where he needs to select. 3 - By creating a client request, he can email the client and let QuickBooks Online Accountant keep track of the conversation for him. He can even add documents for the client to review. When you create a request to a client, it will automatically be published to your client's QuickBooks Online account under the My Accountant tab. You can also enable an email request to your client, so they also get notified by email. ______________ What are the missing steps? - Creates bill in QBO - Makes payment When you create the bill in QuickBooks Online, it will show up in Accounts Payable, so Craig knows money is due to come out of the business. But he can help his cash flow by keeping money in the bank for the next 60 days until it's time to pay his vendor. Undeposited Funds Two envelopes just arrived in Chris's mailbox and inside each envelope was a crisp, signed check. Great news! Chris is really excited because he has received payments from Bill and Jennifer. He's finally getting paid for his hard work and it's going to be a great feeling to see that money in his QuickBooks Online accounts. He doesn't have QuickBooks Payments set up, so he must manually record the received payments. We've seen how important using Undeposited Funds in the right way is for clients, so don't be afraid to make extra sure they understand how to record payments using an Undeposited Funds account. The key message is that by holding payments received in Undeposited Funds, clients are creating a single bank deposit for multiple payments, making it easy for them (and you) to match the bank register with their bank statement. About Undeposited Funds Just to recap, tell your clients to think of the Undeposited Funds account as an envelope where they keep their checks until they take them to the bank. It's a necessary step so that the QuickBooks Online Bank Register matches the deposits on the monthly bank statement. The best way to see how it works is to help Chris to record the checks he's received as Undeposited Funds.Chris has the checks from Bill Gallinger and Jennifer Martin, so these are payments he has received but not yet deposited in the bank. The first step is to record them as received payments in QuickBooks Online. Watch the video to see how it's done. The individual steps are below for you to follow. Let's take the shortcut QuickBooks Online has provided so we can get this done quickly and efficiently. Go to the + New button and select Receive Payment Select the customer from the drop-down. In this case, it's for Chris's first check from Bill GallingerNotice how you see a list of any outstanding invoices for Bill Gallinger. Change the payment date to today Select a payment method, in this case it's a check Enter a reference number: 1234 Make sure the Deposit to account is Undeposited FundsTip: This payment is in response to an invoice, so we have another step to do, which is to match the payment to the invoice. Check the box next to invoice 1001 to apply the payment to the invoice. It's the one for $1224.69 Select Save and newThe next received payment is for Jennifer Martin, so select her from the customer drop-down menu.Once again, the active invoice appears, and we can select it. Change the payment date to today's date Select a payment method. In this case, it's a check Enter a reference number: 12345 Make sure the Deposit to account is Undeposited FundsCheck the box next to invoice 2 to apply the payment to the invoice. It's the one for $533.13. Select Save and close Recording a deposit Now Chris is ready to head to the bank and deposit the checks. At this point he's really excited, because the payments from Bill and Jennifer are about to hit his bank account. However, he needs to update his QuickBooks Online account too, because those Undeposited Funds are, well, no longer undeposited—they're deposited. Let's see how we can help him put that right. Recording a bank deposit in QBO The key thing to remember here is that Chris received two checks that will make up one deposit. Watch the video to see how it's done. The individual steps are below for you to follow. Go to the + New button and look to the right Select Bank Deposit. It's under the Other category heading Select Account as Checking account Change the date to today The two payments Chris has received will show up under Select Existing Payments. Check the boxes for Bill Gallinger and Jennifer MartinNotice how the total amount of the deposit is the sum of those two checks, and this will be the deposit shown in the check register. Select Save and close Whic option best describes why an Undeposited Funds account needs to be used for receving multiple payments? - It's used so that the QuickBooks Online Bank Register matches a monthly bank statement The Undeposited Funds account is used so that the QuickBooks Online Bank Register matches a monthly bank statement. Best Practice Workflows Chris, like a lot of clients, is impressed by the potential of QuickBooks Online to make accounting tasks straightforward and efficient, saving him time so he can get on with making his business a success. He's very eager to investigate its potential and maybe he's getting a little overconfident. Time to check in and see how he's managing his day-to-day sales and expenses balance, QuickBooks Online doesn't recognize the liability as being paid. Clients who use the Sales Tax Center must record all payments from it for the payments to be properly applied to the sales tax liability balances. Workflows Go Bad: The case of the uncompleted accounts payable workflow Another client, Karl, is still getting used to his new workflows in QuickBooks Online and so far, he's loving it. He's been struggling, however, to understand the accounts payable workflow. He's in charge of entering and categorizing the bills he receives from his vendors, and his bookkeeper records and prints the checks that are sent to his vendors. On reviewing his last Profit and Loss statement, he noticed that his materials expenses seemed rather high. So what went wrong? The problem During a meeting with Karl you discover that while he has been entering the bills to record the expenses, the bookkeeper has been using the Check screen to create payments to vendors, essentially recording the expenses twice in QuickBooks Online. The proper workflow would be to create a bill and then use Pay Bills to record the payments against the bill and close out the accounts payable balance. To identify issues: The Transaction Journal Report The Transaction Journal report shows debits and credits for each transaction and provides a more focused view of amounts and accounts not visible from the transaction itself. You can view everything the client has recorded, and even sort it by individual users to see if a bookkeeper is creating an error, as in our example with Chris from earlier in the lesson. The Transaction Journal report: Was created for accountants, but anyone familiar with double-entry accounting can use it for calculations, advanced insight, or auditing purposes Can be used as a tool to identify transactions that have gone out of balance Can assist in identifying suspicious or odd entries for accounts on other reports To identify issues: The Audit Log/Voided/Transaction tool The Voided/Deleted Transaction tool helps you to spot any transactions that a client may have deleted or voided, whether accidentally or on purpose. The tool is a filtered version of the Audit Log and it's available only to Accountant, users via the QuickBooks Online Accountant, Accountant Tools. The Audit Log The Audit Log allows you to filter to necessary details regarding changes to the QuickBooks Online file. By searching the Audit Log, you can see when changes happened—and who made them. The Audit Log can be a useful training tool or reference source. There are a few limitations to be aware of when printing the Audit Log. On screen, it highlights in yellow the changes made to a specific transaction. When printing the log, the highlighting does not print. Also, only 300 lines will print from the Audit Log for a particular search criterion. To print additional lines, you could screenshot the other lines and print your screenshots. Access the link for further tips on how to use the Audit Log Coaching Best Practice Workflows: Sales and Expenses Centers It's sometimes easier for clients to understand how things are recorded in QuickBooks Online by coaching them on how to view and work in the different centers in the Left Navigation Bar. The Sales Center is their hub for viewing and recording their invoices and income from their customers. The Expense Center is for recording incoming bills for products and services, and their payments to vendors. For many small businesses, this will be all they need to know when they start out. Encourage your clients to use the right terminology: bills come from vendors, and invoices go out to customers. There's even a glossary you can send out to them here. Coaching Best Practice Workflows: Keep It Simple Help clients to understand just what they need to do for the complexity of their business as it's operating currently—no more and no less! It's easy to overcomplicate things and overload clients with information that they might never need. You can add value to your client relationships by touching base with them regularly and identifying new QuickBooks Online workflows that they might need to be taught. Understand their business and encourage them to use best practice workflows, but remember and remind them that, as their ProAdvisor, you're their go-to expert in QuickBooks Online and there to help their business thrive via the benefits QuickBooks Online can deliver. Coaching Best Practice Workflows: Keep checking back in Checking back in with Chris identified that after he received a check from his customer as a prepayment deposit, he selected the + New button and then selected Check in the Vendor column to record the payment. By doing this, he created a vendor instead of a customer and assigned Professional Fees as the category. Identifying the problem Let's take a look at the Transaction Journal for this entry to see why this isn't the proper workflow for this transaction. We can see that this decreases the balance in the bank account (credit) and increases the amount of Professional Fees that is reflected on the Profit and Loss report. Coaching Chris in the best practice workflow So how should Chris have recorded the prepayment deposit from his customer using the best practice sales workflow? We can point out to Chris that all the transactions in the + New menu are sorted by entity type. All the customer transactions are listed together, as are the vendor and employee transactions. The easiest way for Chris to record the deposit would be to create an unapplied screen to add the details of the purchase order to the expense From the drop-down arrow next to Save and Send, select Save and Close Converting an estimate to an invoice Chris has completed the installation of the generator and it's time to bill All City Library. Watch the video to see how it's done. The individual steps are below for you to follow. Select Sales then Customers from the Left Navigation Bar Select the Estimate tile in the Money Bar Select Start invoice in the Action column for All City Library Select the invoice date and set the due date for the payment as two weeks from then From the drawer on the right-hand side of the screen, select add under Estimate #1004 Select Total of all estimates lines = $34,075.00 then select Copy to invoice Select Save and Send Select Send and Close And that's it! Chris has completed the entire sales workflow for the All City Library job. Way to go! Which of these statements is true of estimates in Quickbooks Online? - Estimates are non-posting transactions - Estimate data can be used to create a purchase order in QBO - Estimate data can be used to create an invoice in QBO Estimates are non-posting transactions. They can be converted to invoices once they are accepted and the work is done or the service is provided and, of course invoices are posting transactions.Estimate data can be copied across to create a purchase order in QuickBooks Online. This saves time and is a great workflow to teach clients. Credit memos and custmoer statements Sooner or later, all clients will come across an issue with a service or product that the customer isn't happy with. Credit memos in QuickBooks Online allow you or your clients to allocate credits to customers so that next time they are invoiced, the credit can be applied. There's even a way to set this up to happen automatically. You can also create a customer statement to show this has been done. Let's see how we can create a credit memo for Chris. Note that this method is just reducing accounts receivable. It's not refunding cash to the customer. For that, you'd issue a refund receipt. Why use credit memos? When a client is working on creating credit memos, they may have questions. Here are some common ones you might need to answer! Why use a credit memo instead of just editing the transaction? It's not best practice to change transactions once they've been sent to a customer—it can cause confusion and isn't great recordkeeping. This is especially true when the original invoice is in a prior period, because making a change would cause the books to become out of balance with the tax return and change previously reported amounts. Why not just bill for less on the next invoice? It's important to create a new transaction in QuickBooks Online for each exchange between the supplier and the customer. This provides clarity to the timing and sequence of events with a customer. It can also affect the timing and balances of sales tax liabilities and movement of inventory in and out of the company. Why not just refund in cash and not record? It's important to capture all transactions, paid in cash or not, to ensure that the client's records are complete. If you pay the customer back in cash and don't record the transaction, you will pay sales and income taxes on the sales transaction and receive no benefit from the return transaction deduction. Can QBO apply credits automatically? Yes! In the Advanced tab of Account and Settings, you can select a checkbox that will tell QuickBooks Online to automatically apply credits to existing or new customer invoices. Auto-apply is great for clients who have simple accounts receivable (for instance, just a few invoices per customer). Use it with caution with clients who have higher-volume or more complex accounts receivable workflows. Create a credit memo and apply it to a custmoer invoice Let's show Chris how to record a credit memo and then apply it to a new installation invoice. Watch the video to see how it's done. The individual steps are below for you to follow. First, Chris will need to create a credit memo for the damaged light fixture. Select the + New button then Credit Memo Select Jeffrey S. Jacobs as the customer Select Other Miscellaneous Materials as the Product Service and QTY 1 and rate $49.95 for the malfunctioning light fixture Select Save and CloseNext, Chris will need to create a new invoice for the new light fixture. From the + New button, select Invoice Select Jeffrey S. Jacobs in the customer list Add a new product item: Avalon Light Fixture It's one item at $49.95Next, Chris will need to manually apply the credit to the new invoice unless he has Automatically apply credits selected, in which case QuickBooks Online would prompt him to apply the existing credit memo to the new invoice. See the ProAdvisor Tip at the end of the lesson for how to do this. To manually apply the credit: Select the + New button then Receive payment Select Jeffrey S. Jacobs from the Customer drop-down list Select Invoice #6 under the outstanding transactions and Credit Memo #4 from the credits by checking the box next to each Select Save or Save and Close customer's accounts receivable account, but for vendor transactions. Let's cover the key principles before seeing how it works in action in Chris's file. Vendor Credit Workflows Vendor Credits are designed to account for returns of products or services or discounts received on account after a bill has been issued by a vendor and recorded in QuickBooks Online. For example, if Chris purchases some wire which is found to be faulty, the vendor will normally issue a credit to remove the expense of the faulty electrical wire. The Vendor Credit can then be: Applied to an existing bill Held as open and applied to a future bill Vendor Credits post as a debit to decrease accounts payable. Note that, like credit memos, Vendor Credits can be automatically applied to existing open or future bills by selecting Automatically apply credits in the Advanced tab in Account and Settings in the Gear menu. Creating a Vendor Credit Let's see how to record the Vendor Credit for Chris. Watch the video to see how it's done. The individual steps are below for you to follow. There are two separate bills from the vendor, Lang and Sons, in the Expenses Center, one for each of the generators Chris ordered. Each was priced at $500. Sam at Lang and Sons agreed to the credit when Chris returned the generator today, so we can go ahead and create the Vendor Credit in QuickBooks Online. Select the + New button Select Vendor Credit, under the Vendors heading In the Vendor Credit screen, select Lang and Sons from the Vendor drop-down The date of the credit is today so we can leave it as it is Select Generator - 3500 Watt from the Products and Services list under Item details Add a note explaining the credit The quantity is 1. Add the rate, which is $500, the credit amount or the full price of the generator Add the customer that the generator was ordered for, Jaime Sullivan In the memo field, add Credit issued by Sam Select Save and closeBack in the Expenses Center we can see the original bills, plus the Vendor Credit. Now let's apply the Vendor Credit to a bill. On the row of the first bill for the generator, select Mark as paid from the drop-down next to the Schedule payment button. This is the one Chris returned If we scroll down, we can see that the Vendor Credit has already been applied to the total outstanding amount ($1,000 for two generators), reducing the amount payable to $500. Chris will be paying for the second generator by check which he will give to Sam later, so we'll record that payment later. Which of the following statement are true of Vendor Credits in QBO? - Vendor credits post as a debit to decrese accounts payable - Vendor credit can be linked to a cash refund, when the cash is deposited Deposit Transactions In QuickBooks Online you can easily categorize deposits like refunds or proceeds from loans so that they're not confused with sales income, and so that taxable and nontaxable income are separate and in the right place. Let's look at how this is done. Understanding Deposit Transactions Along with grouping existing payments in Undeposited Funds into deposits, deposit transactions are also used for adding new deposits for activity not related to sales transactions, such as: When a company receives funds from loan proceeds or contributions of cash from owners When companies receive a refund from a vendor and want to record it directly against the expense account or to a Refunds Received income account When a company doesn't record income using sales transactions (invoices or sales receipts) and wants to record deposits directly to income accounts When an employee reimburses the company, and the reimbursement needs to be recorded against the Employee Loan receivable account When there is a tax refund. This screen is where you record it in the Tax Refunds account Chris's SBA loan check is a good example of the first category. Put simply, this is money into the business that is not subject to sales tax or income tax and that doesn't have to be matched to a sales receipt or invoice in QuickBooks Online. It does, however, need to be recorded and categorized to the appropriate account on the Chart of Accounts. You can add multiple funds to the same deposit. Recording a deposit transaction Chris needs to record the deposit he made at the bank for the loan proceeds—but he needs to make sure it's in a separate category from his sales income. Let's see if we can help. Watch the video to see how it's done. The individual steps are below for you to follow. Go to the + New button, and in the menu, select Bank Deposit, just like we did for recording the sales deposits Add a date: 09/30/2020 Specify the account as Checking In the Add New Deposits section, enter deposit detail: Received From: Bank of Anytown For account, select SBA Loan Payable. Note that this is a liability account, so this deposit will not be classified as income Add the description. Make it Proceeds from loan Payment method is Check. Enter the insurance company's check number, 5487, as the reference number The amount should be $25,000.00 Now select Save and Close