QuickBooks® Online For Dummies®
Australian Edition published by
John Wiley & Sons Australia, Ltd
42 McDougall Street
Milton, Qld 4064www.dummies.com
Copyright © 2017 John Wiley & Sons Australia, Ltd
The moral rights of the author have been asserted.
National Library of Australia
Cataloguing-in-Publication data:
Creator: |
Meli, Priscilla Jo, author. |
Title: |
QuickBooks Online For Dummies / Priscilla Jo Meli, Elaine Marmel. |
ISBN: |
9780730344971 (pbk.) |
|
9780730344995 (ebook) |
Edition: |
Australian edition. |
Series: |
For Dummies. |
Notes: |
Includes index. |
Subjects: |
QuickBooks Online (Computer program) Accounting — Computer Programs — Handbooks, manuals, etc. |
Other Creators/Contributors: |
Marmel, Elaine |
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.
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Dear reader,
Welcome to Intuit QuickBooks Online! I’m delighted that you’re taking a closer look.
You’re actually in great company, with the world’s leading cloud accounting solution for small businesses and their financial advisors. Each day, more than 50 000 Aussies — together with more than 1.6 million global customers — rely on our financial management solution to fuel business success.
Whether you’re new to cloud accounting software, switching from another program, or just checking us out, this book will give you plenty of tips and shortcuts to help make you a QuickBooks Online pro in next to no time.
In case you wondered, Intuit offers a localised, cloud-based QuickBooks Online version specifically made for Australia, backed by more than 30 years of leading innovation.
Our Aussie small business customers tell us that using QuickBooks Online is easy and frees up their time to focus on growing their business or doing what they love. What’s more, QuickBooks Online was designed mobile first, and customers can access and manage their finances anytime, anywhere and on any device.
A For Dummies book suggests the topic might be complex, so let me assure you, cloud accounting is pretty simple. For a start, it automates many business processes and removes time consuming tasks like data entry. QuickBooks Online can even help you get paid twice as fast thanks to our growing ecosystem and product innovation.
Around the world, we spend more than 10 000 hours with small business owners each year gathering insights to understand their experience with QuickBooks Online. The information we gather is then shared with our product development team so we can continually enhance our products, services and support. This is our innovation process and one that ensures we’re continuously working to improve how we fuel your success.
The move to the cloud is well underway with rapid changes taking place. I’m so excited about the emerging trends and their impact on cloud accounting. In fact, I look forward to the next edition of this book because I anticipate highlighting our continued innovation, such as artificial intelligence and machine learning.
I wish you the best of everything with your small business. Based on what our customers tell us, we know that managing a small business presents challenges, yet the rewards can be great.
I’d also like to thank you for picking up this book. Your commitment to building a strong financial foundation by using QuickBooks Online helps ensure your business is more resilient to market forces. In turn, this helps build a prosperous economy and nation. That’s great news for all.
Be sure to visit our community of customers at the following sites. I know they’d love to have you onboard and join the conversation.
You can find us on Facebook at www.facebook.com/QuickBooksAU
.
Engage with us on Twitter at @QuickBooksAU.
If you are looking for more resources, please visit our Small Business Centre at www.intuit.com.au/r/
.
And lastly, should you need an accountant or bookkeeper to help you get set up or to provide training, please find your perfect match at https://proadvisor.intuit.com
.
Until next time,
Nicolette Maury
VP and Country Manager, QuickBooks Australia
Find me on Twitter or LinkedIn
Have you been thinking about moving your accounting into a web-based product? Are you a QuickBooks desktop user who wants to stick with something you know but wants the flexibility of a web-based product? Are you interested in finding out more about Intuit’s web-based product, QuickBooks Online (QBO)? Are you an accountant who is considering beginning to support your QuickBooks clients via QuickBooks Online Accountant (QBOA)? If you answered yes to any of these questions, this book is for you.
QuickBooks Online and QuickBooks Online Accountant are web-based accounting solutions from Intuit. Don’t be fooled; they are not the desktop product migrated to the web. They’ve been built from the ground up to function on the Internet and can be used on multiple devices such as PC, Mac, iOS and Android. No matter which device, QBO will instantaneously synchronise data between users and devices.
Intuit’s web-based accounting product is really almost two products: Business users who want to do their accounting on the web use QBO, whereas accountants use QBOA, which enables the accountant to log in to a client’s books and make changes and queries as needed. Although much of QBO and QBOA look and behave alike, QBOA incorporates tools that an accountant needs while working on a client’s books. And accountants need to manage multiple client companies, whereas business user clients typically do not.
This book has been divided into three parts. In the first part of the book, we examine what QBO and QBOA are — and what they aren’t — and we describe what you need to be able to use QBO and QBOA. We explain the various editions and features available. And in Chapter 1, you’ll find some information about the available interfaces for QBO and QBOA (you can work with the products using a browser or using an app).
The second part of the book focuses on using QBO and is aimed at the business user; however, the accountant who opens a client’s company via QBOA will be able to use the same tools that the business user uses to manage lists, enter transactions and print reports.
The third part of the book is aimed at the accountant and covers using QBOA.
We don’t pretend to cover every detail of every feature in QBO or QBOA. Instead, we focus on covering the tools we think most users will need as they navigate QBO and QBOA.
Before we dive in, let’s get a few technical convention details out of the way:
monofont
. If you’re reading a digital version of this book on a device connected to the Internet, note that you can tap or click a web address to visit that website, like this: www.dummies.com
.We had to assume some things about you to write this book. Here are the assumptions we made:
In addition to the content in this book, this product also comes with a free access-anywhere cheat sheet that gives you keyboard shortcuts for QBO and QBOA and some handy tool buttons in QBO. To get this cheat sheet, simply go to www.dummies.com
and search for ‘QuickBooks Online For Dummies Cheat Sheet’ in the Search box.
Simply turn the page. Seriously. You can dive in anywhere you want and come back as often as you like. You don’t have to read through this book cover to cover, because each section stands alone and provides step-by-step instructions for common tasks. You should consider this book a reference that you use when you need it.
That said, if you’re just getting started with QBO or QBOA, you might want to turn the page and follow, in order, the chapters in Part 1. Then feel free to explore any topic you like, using the table of contents or the index to help you find a topic.
Part 1
IN THIS PART …
Compare the differences between QBO products.
Learn the requirements to use QBO.
Meet the QBO interface.
Chapter 1
IN THIS CHAPTER
Taking a first look at QuickBooks Online and QuickBooks Online Accountant
Considering the cloud
Meeting requirements to use QBO and QBOA
QuickBooks Online (QBO) and QuickBooks Online Accountant (QBOA) are web-based products you can use to manage your business’s accounting. This chapter introduces these products and discusses whether you should move into the cloud to manage your accounting. It also examines the system requirements for these products.
QuickBooks Online offers you the ability to manage your business’s accounting in the cloud. The software is divided into two products: One for the business user and the other for accountants. QBO and QBOA work on multiple devices, such as PC, Mac, smartphone, tablet and mobile devices.
QuickBooks Online (QBO) is the cloud-based product for business users who need to perform typical accounting tasks.
QuickBooks Online Accountant (QBOA) is the cloud-based portal that accountants use to access their clients’ QBO companies, work in them, and communicate with clients and other members of their accounting team. QBOA also comes with one free company that accountants can use to track their own businesses.
QBO and QBOA were initially written and optimised to be used in the major web browsers — Chrome, Safari and Firefox. Later, Intuit added QBO apps that you can use for Windows, Mac and Android mobile devices. In this section, you explore what QBO and QBOA look like in a browser and in the Windows app.
In a browser, an open company in QBO looks similar to the one shown in Figure 1-1. We cover the interface in more detail in Chapter 3 but, for the time being, the most important thing to notice is the Navigation bar that runs down the left side of the screen. If you've been a QuickBooks desktop user and you’ve used the Left Icon bar in that product, you might find the Navigation bar a familiar tool. The Left Icon bar and the Navigation bar work the same way; you click a link in either of them to navigate to a portion of the program.
FIGURE 1-1: An open company in QBO.
When you collapse the Navigation bar, you have more screen real estate to view the right side of the QBO interface.
At the top of the screen on the far right side, you see tools that help QBO users create transactions, search for existing transactions and view recent transactions. These tools are marked by icons as follows:
Quick Create Tool: Shortcut to frequently used transactions |
|
Search Function: Including basic and advanced search options |
|
Settings Menu (Gear icon): Links to advanced settings and more complex functions |
|
Help Menu: Shortcut to support feature, including Online Chat and Forums |
Figure 1-2 shows what an accountant sees immediately upon logging in to QBOA. The Navigation bar changes to support an accountant’s needs; you can read more about the QBOA interface in Chapter 13.
FIGURE 1-2: The first view an accountant sees when he opens QBOA.
When an accountant opens a client’s company from within QBOA (see Figure 1-3), the interface resembles what a client sees, with some minor differences — compare, for example, Figure 1-1 with Figure 1-3. First, you know you’re using QBOA because the top of the Navigation bar shows QuickBooks Accountant. Second, the tools used to search for a transaction, go to a report and view recent transactions are combined into one Search box near the right side of the screen. And third, the Accountant Tools menu (the briefcase icon) displays tools not found in QBO that help accountants manage client companies.
FIGURE 1-3: An open company in QBOA.
Even though an open company looks a bit different depending on whether it is opened using QBO or QBOA, the basic functionality doesn’t really change, other than accountants having more options than business users have.
In addition to working in a browser, you also can work in mobile apps. To find the app that works best for you, visit the Intuit Mobile App website (www.intuit.com.au/mobile
).
So take your choice: Work in a browser, work in a mobile app or work in both, depending on your needs at the moment! You’re not limited; you don’t have to choose between an app and a browser. Work in one or the other, or both. The free app is a great resource for businesses with people on the road or offsite. They can have their customers sign off on orders via the tablet app, issue invoices, input expenses and receipts while all the time collaborating instantly with their teammates in the office.
FIGURE 1-4: QBO on a smartphone.
FIGURE 1-5: The QBO Self Employed app.
Just to make sure we’re on the same page here, we’re defining the cloud as software and data housed securely in remote data centres (not on your office premises) and accessed securely using the Internet. Working in the cloud can increase your efficiency by offering you the opportunity to work anywhere, communicate easily with others and collaborate in real time.
In the traditional model of software use, you buy software and install it on your computer. Or you might buy the software and install it on a vendor’s server. QBO and QBOA fall into the category of Software as a Service (SaaS). You typically don’t buy SaaS software; instead, you rent it (that is, you purchase a subscription).
Because SaaS software is typically web-based software, you access SaaS software over the Internet using a browser. A browser is software installed on your local computer or mobile device that you use to, well, browse the Internet, looking up cool stuff like what the stock market is doing today, what kind of weather you can expect on Friday when your vacation starts, how to get to your boss’s house for the party she’s having, and — oh, yes — to work with web-based software such as QBO and QBOA. In the case of QBO and QBOA, you can work with these web-based SaaS products using either a browser or an app you download to your computer.
Using web-based software can be attractive for a number of reasons. For example, using web-based software, you have access to that software’s information anywhere, anytime, from any device — stationary or mobile.
In addition to the ‘anywhere, anytime’ advantage, web-based software like QBO and QBOA promotes collaboration and can help you save time. Using QBO and QBOA, accountants, bookkeepers and business users can communicate about issues that arise, as described in Chapter 16.
Then there’s the issue of keeping software up to date. Desktop software such as QuickBooks is updated typically once each year. Unlike their desktop cousin, QBO and QBOA are updated (automatically by Intuit without your time and effort) every two to four weeks.
Before you make the move to the cloud, you should consider the needs of your business in the following areas:
Beyond the advantages described in the preceding section, the particular needs of a business might dictate whether you can use QBO. For example, QBO may not work for you if your business has industry-specific needs for which add-on applications are not currently available. In addition, QBO won’t work for you if you need to track your balances by class.
Using a web-based software product typically doesn’t require a lot of hardware and software; in fact, the demands of QBO and QBOA aren’t extensive. In particular, you need
Although QBO and QBOA work in all the major browsers, they work best, in our experience, in Chrome, with Firefox coming in a close second. Therefore, we use Chrome throughout this book, and the Part of Tens chapters cover using Chrome so that you can get comfortable with that browser. If you’re a Firefox user, give QBO and QBOA a try in Firefox.
You also can use the QuickBooks Online mobile app, which works with Windows phones and tablets, the iPhone and the iPad, and Android phones and tablets. The requirements for the QuickBooks Online mobile app are the same as those outlined for the non-mobile versions: You need a browser on your device and an Internet connection. Be aware that mobile devices do not support all features of QBO and QBOA (see Figure 1-6 for an example of this).
FIGURE 1-6: QBO using the mobile app.
Whether you work on a desktop computer or on a mobile device, the computer or device should meet the basic requirements of the operating system you use on that computer or device. For example, if you’re using a Windows desktop computer, you need the amount of RAM (random access memory) specified by Microsoft to load Windows on the computer before you can even launch your browser. If you don’t have sufficient RAM to run the operating system, you certainly won’t be happy with the behaviour of QBO and QBOA. You won’t be happy with the behaviour of the computer, either.
Basic requirements (and we stress the word basic) for a Windows 7, 8.1, and 10 computer, as specified by Microsoft, are
These versions of Windows work with multi-core processors, and all 32-bit versions of Windows can support up to 32 processor cores, whereas 64-bit versions can support up to 256 processor cores.
If you buy a new computer, you don’t need to worry about much to meet more than the basic requirements. We’re pretty sure you can’t buy a new computer containing a 1GHz processor; most computers today come with at least 2.5GHz processors and they support better graphics than the DirectX 9 graphics listed in the basic requirements. And most monitors available for purchase today don’t support low resolutions such as 800 x 600; you most likely own a monitor that supports higher resolution. In our opinion, 1GB of RAM is insufficient; your desktop computer should have at least 4GB of RAM, and you’ll be much happier if it has 8GB of RAM. On the hard drive requirement, if you don’t have the 16GB or 20GB of available space specified, you probably should be considering a hard drive replacement for your computer.
The amount of RAM your computer can successfully use depends on the computer’s architecture — in particular, if your computer uses a 32-bit processor, as older computers often do, your computer might not be able to ‘see’ more than 4GB of RAM. So, you could put 16GB of RAM in the computer and only be able to use 4GB. And part of that 4GB goes to other stuff, like your video card; so, with most 32-bit processors (there are a few exceptions), your computer can use only 3GB of RAM. Bottom line here: Newer computers use 64-bit processors and can take advantage of much more RAM, which makes them much faster.
Chapter 2
IN THIS CHAPTER
Understanding available QBO subscriptions and their costs
Examining ways to meet payroll needs
Making the move from your desktop to online
Taking a tour of the App Centre
QBO and QBOA are not traditional software that you buy and install on your local computer. In this chapter, we explore the QBO/QBOA software format. If you need more help evaluating whether QBO can meet your needs, head back to Chapter 1.
QBO and QBOA fall into the category of Software as a Service (SaaS). As such, you don’t buy the software. Instead, you rent it; that is, you buy a subscription to use the software for a time period specified by the seller.
Of course, a QBO user can pay varying amounts for a subscription, depending on the subscription level purchased.
QBO is available at four different subscription levels, and each subsequent subscription level costs more and contains more functionality. The QBO subscriptions available at the time of writing are
After you assess your needs as described in Chapter 1, use the following information to identify the subscription level that will meet your requirements. You can also later upgrade subscriptions to a higher level, but you cannot downgrade to a lower level.
This version of QBO is aimed at freelancers and self-employed individuals who do not track GST. Using the Self-Employed version, you can
Like the other versions of QBO, you can use a tablet or smartphone to access your data. In addition, the Self-Employed version uses the same security and encryption as banks, and your data is automatically backed up online. As you might expect, this version has the fewest reports available — only three — and only permits one user.
The Simple Start version of QBO is great for a new business with basic bookkeeping needs. With Simple Start, you can
Although the Simple Start version supports Accounts Receivable functions, you can’t track bills due in the future in the Simple Start version because it doesn’t include any Accounts Payable functions. And one other important consideration: The Simple Start version also has no general ledger.
Although the Simple Start version allows two accountants to work in the client’s company (or an accountant and a bookkeeper), Simple Start is still designed for a single user. Therefore, the accountant cannot create the client’s company for the client. At the time the company is created in QBO, whoever creates the company becomes, in QBO language, the Master Administrator.
Although QBO Simple Start has a single-user restriction, it offers more than 20 reports. And Simple Start users can memorise report settings and produce memorised reports.
The Essentials version of QBO includes all the features found in Simple Start. In addition, you can
The Essentials version permits three simultaneous users and two accountant users. In addition, the Essentials version contains the reports found in Simple Start and 20 additional reports.
The Plus version of QBO is the most full-featured version of QBO. It contains all the features found in the Essentials version. In addition, you can
Track inventory using the first in, first out (FIFO) inventory valuation method.
QBO supports light inventory needs: If you sell finished goods, QBO should be able to manage your needs. But if you need to assemble finished goods to sell, QBO won’t meet your needs on its own. You can look for an app to supplement your inventory needs; we talk about apps at the end of this chapter.
Track billable hours by customer.
QBO supports light job-costing needs, but it does not allow you to automatically cost labour.
The Plus version supports five simultaneous users and two accountant users. The Plus version also contains more than 65 reports: All the reports found in both the Simple Start and the Essentials versions, and some additional reports.
When purchasing your subscription through an accountant or bookkeeper, the subscription will come with unlimited users.
The big question: What does it cost? The price is dependent primarily on the QBO version you choose.
If you’re a business user who signs up on your own for a QBO subscription, the price per month at the time of writing appears in Figure 2-1. You should check the Intuit QuickBooks Online website for regular specials and the option of a free trial.
FIGURE 2-1: QBO subscription pricing.
If you are an accounting professional, you can sign up for the Wholesale Pricing program and use QBOA for free. If you create a client’s company as part of the Wholesale Pricing program and you manage the client’s subscription, Intuit sends you the bill for the client’s subscription. It is then your responsibility to bill the client for the QBO subscription. The bill you receive from Intuit is a single consolidated bill for all the QBO subscriptions you manage. For a little more information on the Wholesale Pricing program, see Chapter 13. But for the complete skinny on the Wholesale Pricing program, contact Intuit. Note that accounting professionals might be able to get QBO for their clients at a reduced price.
If your client initially sets up QBO with his or her own subscription, you can move that existing QBO subscription to your consolidated bill at the discounted rate. And, if your arrangement with your client doesn’t work out, you can remove the client from your consolidated bill, and the client can begin paying for his own subscription.
When you sign up for QBO Simple Start, Essentials or Plus subscriptions (or your accountant/bookkeeper creates a file for you), you will automatically have access to payroll features via KeyPay, a third-party provider with software that is fully integrated into the QBO program. At the time of writing, payroll is free for up to 10 employees per month — if you have more employees than this, an additional cost of $4 per additional employee is charged via a separate billing method. This means KeyPay will prompt you to enter payment details and will bill you directly. For details on paying employees, see Chapter 9.
To turn on the Payroll feature, go to the Employees section of the Navigation bar and click the Turn on Payroll button (see Figure 2-2).
FIGURE 2-2: Turning on the Payroll feature.
At this point (or maybe earlier than now), you might be wondering if you can easily switch to QBO if you have been a QuickBooks desktop program user. The answer is yes. The Appendix provides details on importing QuickBooks desktop data into QBO. And the import process doesn’t affect your original desktop company; it’s still available via the desktop product.
And if you want some reassurance that you’ll get the same accurate information from QBO that you got from QuickBooks desktop, you can ‘run in parallel’ for a time period you specify. For example, you might decide to enter all your transactions in both versions of the software for one month; at the end of that time, you can run reports from both products and make sure you see the same information.
QBO doesn’t operate as a complete, standalone accounting solution. It does have functional limitations. To achieve more functionality in QBO, you can use apps (available via Intuit add-ons).
Many third-party developers have been creating apps to enhance the functionality of QBO and, over time, you can expect more apps to be developed.
In QBO, you can click the Apps link in the Navigation bar that runs down the left side of QBO to visit the App Centre and explore available apps. In QBOA, this won’t appear, so you need to go directly to the QuickBooks App Store (apps.intuit.com) to research and connect apps to your file. Figure 2-3 shows the QBO App Centre and some of the available apps.
FIGURE 2-3: Take a trip to the QuickBooks App Centre to search for additional functionality for QBO.
Click any app to navigate to a page that describes the app, provides pricing information and often provides a video about the app (see Figure 2-4).
FIGURE 2-4: When you click an app in the App Centre, you see details for the app.
Apps are making inroads towards eliminating any possible software limitations. For example, Lettuce, an app that provides advanced inventory management features for QBO, did such a fine job of handling inventory functions that Intuit acquired Lettuce for the purpose of integrating it into QBO.
Part 2
IN THIS PART …
Become familiar with the QBO interface.
Manage list information needed to use QBO.
Enter transactions in QBO to update your company’s books.
Keep your GST and PAYG payments correct and up to date.
Use reports to examine the condition of your company.
Prepare (and stick to) a budget for your company.
Chapter 3