In Quickbooks, each and every amounts of transactions created, such as invoices, bills, & banking, are actually journal entries processed behind the scenes. Journal entries are always balanced double-entries, debits and credits. For example, when you create an invoice of $100, - to one of your customers, the behind the scene journal entry is
Dr. Account Receivable $100, -
Cr. Sales Income $100,-
You can create General Journal Entries (GJE) using any of these methods:
• Select Company > make General Journal Entries, or
• Select List > Chart of Accounts, then right click and choose Make General Journal Entries from the menu, or
• Select List > Chart of Accounts, click Activities bar and choose Make General Journal Entries,
and the following window will appear:
Many small businesses keep a cash drawer at the office for business related expenditures, whether taken out by employees or owners. This cash drawer is also your company’s money, which means you have to keep track of incoming and outgoing funds.
First of all, you have to create a Cash/Petty Cash account in your Chart of Accounts:
1. Open Add New Account from your Chart of Accounts and select Bank type.
2. Name it Cash/Petty Cash.
3. Use account numbers if you are required to.
When you take money from your bank account and put it into your /Petty Cash account, use Banking > Transfer Funds, and fill in respective from & to accounts and amount.
Remember that the first step you have to do is setting up your new company file. There are 2 ways to create your new company file:
1. Using Express Start, and
2. Using Advanced Setup.
We are going to discuss how to setup your new company file using Advanced Setup:
1. After you start QuickBooks application and you don’t have any company file opened yet, a No Company Open window will open. Click Create a New Company button or click File menu > New Company.
A QuickBooks Setup window will open, then click Advanced Setup button.
2. You will then see the EasyStep Interview wizard, where you can always Leave, go Back, or move to the Next window, by clicking the corresponding button at the bottom of the window.
There are several types of budgets in QuickBooks:
1. Budgets based on your company P&L accounts,
2. Budgets based on your company P&L accounts in relation to your customers or jobs,
3. Budgets based on your company P&L accounts in relation to classes, and
4. Budgets based on your company Balance Sheet accounts.
Let’s walk into it by opening the Set Up Budgets wizard:
1. From the Main Menu, select Company > Planning & Budgeting > Set Up Budgets.
If this is your first budget, the following Create New Budget window will appear, otherwise your existing budget will show up instead:
In a certain industry, such as in a construction industry or auto body repair, most of customers will ask for estimates before proceeding with the project/job. Estimates are non-posting transactions, which mean estimates do not affect your financial records. When you create estimates, none of the amounts, items, jobs, and other information, will be posted to any of Chart of Accounts.
Creating estimates in QuickBooks are quite simple, especially if you are familiar with creating invoices already. In fact, you can create invoices from your estimates directly.
To create estimates:
1. Ensure Job & Estimates preference is turned on by selecting Edit > Preferences > Job & Estimates from the Main menu; select Company Preferences tab and check “Do you Create Estimates” yes button.
2. Select Estimates from Customers pane in the Home Page, or Customers > Create Estimates from Main Menu. Create Estimates window will appear as shown below: