Areola, Venus Kate C.

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CHAPTER SUMMARY: SETTING UP BUSINESS’S ACCOUNTING SYSTEM

EasyStep Interview – this QuickBooks application's performance and helps provide

Accountant setup process walks you through for turning features such as on or off.
the setup procedures and helps you tailor To set up company preferences:
QuickBooks Accountant to suit your
business. 1. From the menu, select Edit > Preferences.
The Preferences window opens.
To create a new company file:
Start with opening the app and closing the company 2. In the left pane, click the category for the
created previously.   settings you need to change.

1. Click New Company until the setup 3. Each category includes the following two tabs.
window appears.  Select the appropriate tab.

2. Select the Detailed Start button, enter 1. My Preferences. Options on these tabs
necessary company information, and select affect the user who is currently
Retail Shop or Online Commerce.  logged in to QuickBooks.

3. Proceed in selecting the Corporation option 2. Company Preferences. Options on these

and select January in My Fiscal year. Do tabs affect the entire company file.
not enter a password and then click Next Preferences set on these tabs affect every
two times.  QuickBooks user. Only QuickBooks
administrators can access and change
4. Click the Drop-Down Arrow in the save in company preferences.
the text box to specify where you want your
data to be kept.  4. Make changes to preferences as needed.

This process continues until: 5. When you finish, click OK.

 Selecting Record each sale individually. Items – anything that your company buys,
sells, or resells in the course of business.
 Agreeing to charge tax sales
To set up/adding a new item:
 Saying No in creating estimates, tracking 1. Go to the Company center and click Item &
sales orders, using billing statements, and Services icon.
using progress invoicing.  2. Click Item at the bottom of the list and click
New.
The next processes focus on displaying Yes;
3. Click the Type drop down arrow and choose
 In keeping track of bills the type of item you want to create.
4. Enter an item name or number.
 Tracking inventory
5. Click TAB until you move into the Description
area and enter in a SHORT description of the
 Tracking time
service.
6. Enter a rate for the service.
 Having employees check
 Setting up the accounts and date chart. 7. If it is taxable, in the Tax Code List, select the
Preference – enables you to change the look appropriate sale tax code or create a new one.
If you do not see a Tax Code List, you must
of the QuickBooks Accountant Desktop. It
turn on the tax preference in the Sales Tax area
also helps to customize or modify the under Edit/Preferences.
 8. Then ACCOUNT section and choose the 3. On the Address Info tab, enter all
appropriate INCOME ACCOUNT where the the data of the vendor this includes their name,
revenue will be posted CHART OF address, and additional contact information.
ACCOUNTS. 4. If you owe this vendor a money as of
9. Click OK or Next (If you want to add a new the business’s start date, enter the amount in
item). the Opening Balance field.
5. Click the Additional Info Tab and
Customer – anyone who pays you for your complete the form. If you want to add more
services or products. (also called as clients fields in the forms, click Define Fields to
or members) customize them.
6. Click OK or Next (If you want to
To set up/adding a New Customer:
add a new vendor).
You can add new customers to the list at any time.
QB uses the list to hold information about the
Chart of Accounts – the complete list of all
people and companies to whom you sell your the company's accounts and balances.
products and services.
Opening Balances – the amount of money
1. From the Customer Center click on in, or the value of, an account as of the start
Customers button. date of your records in QuickBooks
2. Click on the New Customer & Jobs Accountant.
This will:
To set up/adding an Account to the Chart of
Accounts:
 Add new customers to your Customer: Job
list 1. From the Home window in the Company
 To change information about customers who center click Chart of Accounts icon.
are already on the list. 2. Click Account at the bottom of the list and
While most of the fields should be obvious click New.
you need to make sure the information 3. Click the radio button for the type of account
entered is correct and complete. you want to add. Information about the
account type displays in the right side of the
3. Use the Customer Name box to give the window.
customer a name that you will recognize when 4. When you are ready to add the new account,
recording transactions making sure to: click Continue.
5. In the Account Name field, enter the Name of
 Correctly spell their name the account.
6. If you use account numbers, enter the account's
 Put last name first unless you want to number in the Number field.
identify them by their company’s name  Enter a short description of the account in
 Capitalize the first letter the Description field. (Optional)
7. Click Next to save the account and enter
4. Click OK or Next (If you want to add a new another one. Or Click OK to save the account
customer). and close the window.

To add a job, Click New Customer & Job then  For Bank or Credit Card Accounts it is a
click Add Job. good idea to enter the number for this account.
-If this account is a Subaccount, select the
Vendor – anyone you pay except Subaccount of checkbox and then click the
employees. drop-down arrow to select the account under
To set up/adding a New Vendor: which this account will be added.
 For Bank Accounts you will want to enter the
1. Click the Vendor Center icon at the opening balance.
top of the QuickBooks Enterprise Solutions -Click the Enter Opening Balance button and
window. enter the amount for the account.
2. Click New Vendor.  For Balance Sheet Accounts it is best that
you enter an opening balance based on the
 account's balance as of your QBs start date. If 1. Click the Employee Center icon at the top
you're not sure of the balance, you can leave of the QuickBooks Enterprise Solutions
the field blank and enter the information later. window.
2. Click New Employee.
Payroll – this is the business’s process of 3. On the Personal tab, fill in the form.
paying the employees. 4. Click the Address and Contact tab, fill in
the form and click OK.
To set up payroll for your business: 5. When prompted to set up the employee's
payroll information, click Leave As Is.
1. Go to the Employees menu and click Payroll
Setup. To set up an employee's payroll information:
2. Follow the onscreen instructions. 1. Click the Employee Center icon at the top
Tip: If at any time you need to leave the of the QuickBooks Enterprise Solutions
Payroll Setup interview before completing window.
all of your payroll setup tasks, click the 2. Click the Employees tab, select an
Finish Later button. When you reopen the employee from the list, and then double-
Payroll Setup interview, you can continue. click on the name.
To ensure accurate payroll calculations, 3. From the Change tabs drop-down list, click
complete your setup before using the Payroll and Compensation Info.
Payroll. 4. Fill in the Payroll Info form.
5. Click the Taxes button.
Payroll Setup has been grouped into the following 6. Click the Federal tab and fill in the form,
categories: based on the employee's W-4 information.
7. Click the State tab and fill in the form.
 Company Setup — Enter information about
8. Click OK.
the types of compensation and benefits.
 Employee Setup — Enter employee Back Up File – is a compressed file
personal information (name, hire data, containing everything you need to recreate
Social Security Number, and so on), pay your company file and QB’s environment.
information (pay rate, payments and Use a backup file to safeguard your QBs
deductions, paid time off balances, and so files against accidental data loss.
on), and tax withholding information (from
W-4 and state forms). The backup file is saved with a .QBB
 Taxes — QuickBooks Payroll automatically extension.
sets up your state and federal taxes.
However, you must still enter employer- To create a back up file:
specific tax rates (state unemployment
1. Choose File > Save Copy or Backup from
insurance) as well as any local taxes that
the menu bar
may apply.
 Payroll History — If you have issued
2. Choose Backup copy company file, and then
paychecks during this calendar year prior to
click Next.
using QuickBooks Payroll, you must
provide year-to-date payroll history to 3. Choose the location in which to store the
accurately generate tax payments and backup company file either Local backup or
filings. Online Backup
Note: After your initial payroll setup, you may need
to add new employees or edit employee payroll  It is very important to save the backup
information. version to a folder that does not contain your
regular company file such as a CD or a USB
Employees – workers who gets paid an Flash drive or to a folder on your network.
hourly wage or annual salary for a set job.
4. Click Options to make sure where the backup
To set up an employee's personal information: is going to be stored. The Backup Options
window opens
5. Click the Browse button and navigate to the
desired folder window.

6. Click OK and leave the other defaults as they

are.

7. Leave the other defaults as they are.

8. It happens when QBs has detected that you

are not backing up the file to another drive,
and is recommending that you do so. Just
ignore the window and click Use this
Location.

9. Click Next, choose Save it now, and click

Next again

10. Choose Save it now. Click Next. QB wants

to verify your backup location.

11. It should show you the location in the Save

in box since that is what you selected
previously. Click Save.

 QB will now verify your data integrity.

 Assuming the data is stable, you will receive
a confirmation message that the backup has
been saved.
12. Click OK.