Archive for August, 2009

Changing The QuickBooks Accountant’s Copy to .QBW

August 28, 2009 Leave a comment

The accountant’s copy is a special file ending in .qba. This is the working copy that the accountant uses to post entries prior to a set cut-off date. The full version of the QuickBooks file is the .QBW and when an accountant’s copy exists, you can only enter transactions after the set cut-off date. So what if you decide that you don’t want to import the accountant’s changes? You have the ability to remove the restriction, but beware this cannot be undone. At the same rate the accountant can also convert the accountant’s copy into a full .QBW. I will show how to do both here starting with converting the accountant’s copy into a QuickBooks Working file – .QBW. It is actually really simple and can be shown in one screen shot. You simple click File–>UtilitiesàConvert Accountant’s Copy to Company File/QBW:

To cancel the accountant’s changes on the original QBW (Client copy) simply click FileàAccountant’s CopyàClient ActivitiesàRemove Restriction

Once this is done you will not be able to import the accountant’s changes. It is not a bad idea to create a special backup prior to doing this, so that if you need to you can restore a copy with the accountant’s changes still pending. This way you can get back the ability to import the accountant’s changes should you decide you need/want to after all.


QuickBooks – The Basics

August 23, 2009 1 comment


QuickBooks – The Basics

Purchase the video tutorial today.


This is a comprehensive beginner course on QuickBooks covering everything from each menu item that you could possibly need to know in order to set up a company file and work with the different types of files as well as enter all sales and expenses. If you are new to QuickBooks this is a complete and thorough beginning. You can pause and resume play so you can watch at your own pace. The entire running time is about 3 hours and 5 minutes, so you know we have covered a lot of ground here.

Below is an outline of what we go over. Please feel free to call us at (866) 945-8070 if you have any questions.

Purchase the video tutorial today.

QuickBooks Inventory Process – how the transactions flow from balance sheet to profit & loss

August 19, 2009 Leave a comment

When you are in the business of selling products it is important to understand how those transactions flow in QuickBooks or any accounting software.

When you purchase inventory you now own something – an asset. This is not an expense. In fact because without the right marketing and customer base, you might never sell it, it is not an expense.

When you sell the inventory you have 4 things that happen:

    A sale = Income

    Inventory moves = reduction in invenory

    Cost of Goods Sold Incurred = that reduction in inventory is offset in effect by recognizing it’s cost (which is equal in amount to the reduction in value of inventory)

    Either a payment or a receivable = either I get money or someone owes me money for the sale.

The difference of course between what I sold it for and my Cost of Goods Sold (COGS) is the profit on that product sale.

In this web cast we go over how this works using QuickBooks – the accounting & bookkeeping concept is the same regardless of whether you use QuickBooks or something else.

Please enjoy the web cast by clicking here:

QuickBooks Real Estate – accounting for the return of a security deposit

August 19, 2009 Leave a comment

Last week’s web cast went over how to account for a security deposit received. This is a follow up to that web cast in which we go over how to account for the return of the security deposit, particularly where you have to withhold monies to cover for damages. We also discuss the issue of properly formatted financial statements. When you pay a company like ours to get it done “right”, you save money because you are able to get that line of credit at a better rate or become more profitable because of your ability to better analyze your business, what is working, and what isn’t.

We also discuss how we are able to work with companies to provide a much higher level of service compared with what you get with your average bookkeeper. If you want financial statements properly formatted so you can get financing with your bank, you want to make sure that you hire someone like us who knows more than just how to post a check or bill and what account it goes to. You want someone who understands QuickBooks and accounting together such that you get the best result in terms of financial statement presentation.

Please enjoy the video tutorial by clicking here:

QuickBooks for Real Estate Rental Properties – How to account for the security deposit

August 19, 2009 Leave a comment

When accounting for a security deposit received there are several ways to handle this in QuickBooks. The one thing that can make it challenging is that the tenants will often write one check for both rent and security deposit just before they move in. Well the best way to record the rent in QuickBooks is to post an invoice that goes off automatically each month on the 1st. So the check I receive that includes the security deposit the first time around cannot be posted to the invoice unless that invoice includes the security deposit. But the security deposit is not income, so it has to be set up properly as an item in QuickBooks. This web cast will show you how to set that up along with a few other handy tips.

Please enjoy the video web cast:

QuickBooks Inventory – Manufacturers Inventory Assembly Items

August 19, 2009 Leave a comment

Watch the web cast here:

When you sell inventory (products) there is a good chance you are in the business of making the products you sell, which means that you buy some products and then use those to create a new, finished product. QuickBooks provides for this using something called “Inventory Assembly Items”. When this happens you need to account for the original inventory you purchase, called Raw Materials and then you have to account for the transfer of that inventory into the final product, called Finished Goods. QuickBooks does have its weaknesses where inventory is concerned, but this represents an improvement along those lines. When you use a properly formatted Excel Template in conjunction with QuickBooks, it can work out very well.

In summary:

  1. Raw Materials inventory are the components that make up your final inventory. These are set up as regular inventory assembly items.
  2. Once the raw materials are used they go in to create “Finished Goods Inventory”. These items are called “Inventory Assembly Items”.
  3. When you first set up the inventory assembly items they will deduct quantities from the component inventory counts.
  4. After that you have to manually transfer quantities from the items to the Assembly items.


Watch the web cast here and feel free to ask questions by commenting on this blog post:

How to set up your QuickBooks company file and start entering transactions

August 18, 2009 Leave a comment

Below is a link to a video tutorial going over all of this in some detail just to get you started:

When you first decide to start a business there are two people you should always consult to be sure you know how to cover the important bases in two critical areas. These two people are an attorney and a CPA. We’re here to talk about the second one. Your CPA will guide you as to what you need to know in terms of making sure you have the right accounting setup. One of the first things he or she is likely to tell you is to go out and buy QuickBooks and start using it. They may also then refer you to someone like me to help with the setup. If you have no previous experience with business or accounting, then you are likely going to find yourself wondering where to begin. Luckily there are many resources out there where you can get QuickBooks help. This is one of them.

  • The first thing you will need to do is set up your company file. In order to understand what is involved here you will want to begin understanding the chart of accounts. This is your “list” of the accounts that make up your accounting and they are broken down into five general categories:
    • Assets
    • Liabilities
    • Equity
    • Revenues
    • Expenses
  • You will want to begin to understand the difference between these account types so that you have a better understanding of what is involved in your accounting. Here are some very simple definitions that will help you get started:
    • Assets = things you own or have rights to
    • Liabilities = obligations, things you owe, debts
    • Equity = Assets – Liabilities (the net book value of the company)
    • Revenue = Gross sales
    • Expenses = Cost of doing business

Once you have your accounts and overall company file set up you will want to begin entering transactions. Assuming you have been in business for a few months, then the best place to start is getting the expenses on the books. In all accounting software packages this is going to involve writing checks to start with.

Below is a link to a video tutorial going over all of this in some detail just to get you started:

Please feel free to post any comments or replies here with feedback, questions or suggestions.