QuickBooks 2009 Solutions Guide   This is the definitive, must-have reference for every business owner, entrepreneur, accountant, and bookkeeper who relies on QuickBooks 2009. Not a beginner’s guide, it’s a high-productivity resource for solving the problems that intermediate-to-advanced QuickBooks users encounter most often.   Author Laura Madeira is superbly qualified to write this book: she has twenty years experience training professionals on Intuit products and has been selected by Intuit to introduce its new releases to accountants and entrepreneurs. Here, she offers real solutions for every QuickBooks accounting module, helping readers achieve their true goal for QuickBooks: a clear, up-to-date understanding of where the business stands, and where it’s headed.   Thoroughly updated for QuickBooks 2009, this book brings together indispensable, start-to-finish techniques for troubleshooting QuickBooks data files and fixing QuickBooks mistakes wherever they occur. Drawing on her unsurpassed experience, Madeira offers expert advice on every facet of QuickBooks accounting: data files, banking, A/R, undeposited funds, employee advances, inventory, A/P, sales tax, payroll, reporting, sharing data with accountants, and much more.   This book will help you :      •    Quickly set up accurate charts of accounts – or improve existing ones      •    Use QuickBooks reports to understand the most important trends in your business      •    Correct data errors in any balance sheet account, from A/R and A/P to taxes and inventory      •    How to use the New for 2009! Client Data Review feature for accountants.      •    Properly review your payroll data and avoid expensive mistakes      •    Efficiently share business data with your accountant      •    Troubleshoot beginning balance differences, reconciliation errors, and many other problems      •    Learn to use the Intuit Statement Writer tool, New for 2009!       Laura Madeira  is founder of ACS, Inc., located in the greater Dallas, Texas area and an Intuit Solutions Provider that specializes in on-site and Internet-assisted accounting software implementation, set-up, training and troubleshooting. She has over twenty years of experience helping companies maintain accurate and timely accounting and financial information through one-on-one consulting, group classes, and web-based training.   Madeira currently writes technical documentation and presentations for the QuickBooks product line as a member of the Intuit Accounting Professionals Trainer/Writer Network. She has also served on Intuit’s Accountant and Customer Advisory Council and was a guest speaker for the QuickBooks Developer Network. Her “QuickBooks at Year-End” document has been distributed by Intuit at several national events and is one of Intuit’s most requested training and presentation documents.   Her expertise with QuickBooks and other Intuit software has been featured nationally in an Advisor Spotlight and widely-distributed promotional literature. She holds Intuit's Advanced Certified, Point of Sale Certified designations, as well as a bachelor of science in accounting from Florida Atlantic University.   Category  Business | Finance Covers    QuickBooks 2009 User Level    Intermediate–Advanced  

Table of Contents:
Introduction How This Book Is Organized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Conventions Used in This Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Menu Commands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Web Pages and Manufacturer Information . . . . . . . . . . . . . . . . . . . . . . . .4 Special Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4   1 Creating a New QuickBooks Data File . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 EasyStep Interview–Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Select a Start Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Enter Bank Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Review Income and Expense Accounts . . . . . . . . . . . . . . . . . . . . . . . . . .14 Converting from Other Accounting Software to QuickBooks . . . . . . . . . . . .15 Converting from Quicken to QuickBooks . . . . . . . . . . . . . . . . . . . . . . . .16 Converting from Peachtree, Small Business Accounting, or Office Accounting to QuickBooks . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Converting from QuickBooks for Windows to QuickBooks Online Edition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Converting from QuickBooks for Mac to QuickBooks for Windows . . . .21 Converting from QuickBooks for Windows to QuickBooks for Mac . . . . .21 Setting Up a QuickBooks Data File for Accrual or Cash Basis Reporting . . . .22 Cash or Accrual Basis Startup Transactions: Accounts Receivable . . . . . .24 Cash or Accrual Basis Startup Transactions: Accounts Payable . . . . . . . . .29 Cash or Accrual Basis Startup Transactions: Bank Account Statement Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Cash or Accrual Basis Startup Transactions: Checking Uncleared Bank Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35   2 Reviewing the QuickBooks Chart of Accounts . . . . . . . . . . . . . . . . . . . . .37 Understanding the Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Importing a Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Importing from an Excel File Format . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Importing from an Intuit Interchange Format (IIF) File . . . . . . . . . . . . . .46 Preferences That Affect the Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . .48 Accounts That QuickBooks Creates Automatically . . . . . . . . . . . . . . . . . . . .50 Methods to Troubleshoot and Correct Chart of Account Issues . . . . . . . . . .51 Removing Duplicated Accounts by Marking an Account Inactive . . . . . .52 Merging Duplicated Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Wrong Account Type Assigned to a Chart of Accounts Listing . . . . . . . .55 Assigning or Removing a Subaccount Relationship . . . . . . . . . . . . . . . . .57   3 Reviewing and Correcting Item List Errors . . . . . . . . . . . . . . . . . . . . . . . .61 Differences Between the Chart of Accounts, Items, Classes, and Customer Types . . .62 Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Customer Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Using Item Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Finding Item Errors in QuickBooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 Reviewing Accounts Assigned to Items . . . . . . . . . . . . . . . . . . . . . . . . . .69 Item Listing Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 Profit & Loss Summary Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72 Fixing Item Errors in QuickBooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 Correcting One-Sided Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 Making an Item Inactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Merging Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79 Creating Items as Subitems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80   4 Easily Review Your QuickBooks Data . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 Client Data Review–New for 2009! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 Choosing a Reporting Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 Reviewing the Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86 Account Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Prior Year Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Bank Account Balance(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Undeposited Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92 Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 Credit Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 Sales Tax Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 Other Current Liabilities and Long-Term Liabilities . . . . . . . . . . . . . . . . .96 Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Additional Data Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Payroll Summary Total and Payroll Expense Total . . . . . . . . . . . . . . . . . .96 Sales by Item Summary Compared to Total Income . . . . . . . . . . . . . . . .97 Net Income or (Loss) Agrees with Balance Sheet . . . . . . . . . . . . . . . . . .98 Reconcile Discrepancies Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98 Cash Basis Balance Sheet Has Accounts Receivable or Payable . . . . . . . .98   5 Power Reports for Correcting Beginning Balance Differences  . .101 How Can These Power Reports Help Me? . . . . . . . . . . . . . . . . . . . . . . . . .102 Troubleshoot Account Balances–New for QuickBooks 2009! . . . . . . . . . .103 The Working Trial Balance Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Tracking Changes to Closed Accounting Periods . . . . . . . . . . . . . . . . . . . .105 Setting a Closing Date and Password . . . . . . . . . . . . . . . . . . . . . . . . . .106 Setting User-Specific Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 Creating the Closing Date Exception Report . . . . . . . . . . . . . . . . . . . . .109 Using the Audit Trail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110 Using the Credit Card Audit Trail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Using the Voided/Deleted Transactions Summary or Detail Report . . . . . .114 Creating the Retained Earnings QuickReport . . . . . . . . . . . . . . . . . . . . . . .115 Using the Ctrl+Y Keyboard Shortcut . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117 Running the Transaction List by Date Report . . . . . . . . . . . . . . . . . . . . . . .118 Documenting Changes Made to a Data File . . . . . . . . . . . . . . . . . . . . . . .120   6 Bank Account Balance or Reconciliation Errors  . . . . . . . . .123 The Importance of Correct Bank Balances in Your QuickBooks Data . . . . .124 Reconciling a Bank Account for the First Time . . . . . . . . . . . . . . . . . . . . . .124 Verify That the Bank Account Has Not Been Reconciled . . . . . . . . . . . .125 Verifying That All Bank-Related Transactions Have Been Entered . . . . .125 Identifying All Uncleared Transactions . . . . . . . . . . . . . . . . . . . . . . . . . .127 Completing the Multiple-Year or Month Bank Reconciliation . . . . . . . .128 Troubleshooting an Incorrectly Reconciled Bank Account . . . . . . . . . . . . .130 Reviewing Uncleared Bank Transactions . . . . . . . . . . . . . . . . . . . . . . . .131 Reviewing Previous Bank Reconciliation Reports . . . . . . . . . . . . . . . . . .134 Locating Bank Account Reconciliation Discrepancies . . . . . . . . . . . . . . .135 Reviewing the Voided/Deleted Report . . . . . . . . . . . . . . . . . . . . . . . . . .136 Restarting a Previously Completed Bank Reconciliation . . . . . . . . . . . . .137 Undoing a Previous Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . .137 Reconciling with an Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139   7 Reviewing and Correcting Accounts Receivable Errors . . . . . . . . . . . . .141 Accounts Receivable Forms and Workflow . . . . . . . . . . . . . . . . . . . . . . . . .142 Preferences That Affect Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . .144 Sales & Customers Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Checking Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148 Finance Charge Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149 Jobs & Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 Reports & Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 Sales Tax Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Send Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Spelling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Time and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155 Reports to Review When Troubleshooting Accounts Receivable Errors . . . .157 Reconcile Balance Sheet Accounts Receivable Amount to A/R Aging Summary Total  . . . . . . . . .157 Review Open Invoices Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Generate a Missing Customer Invoices Report . . . . . . . . . . . . . . . . . . .160 When an Accounts Receivable Balance Appears on a Cash Basis Balance Sheet. . . . . .162 Correcting Accounts Receivable Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Removing an Open Balance from a Customer Invoice . . . . . . . . . . . . .165 Correcting Customer Payments Applied to the Incorrect Invoice, Customer, or Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172 When a Credit Memo Is Applied to the Wrong Customer Invoice . . . . .176 When Deposits Were Made Without Using the Receive Payment Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Grouping Deposited Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 Eliminating the Print Queue for Customer Invoices Marked to Print . .185 Unique Customer Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 Recording Your Accountant’s Year-End Adjusting Journal Entry to Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 When a Customer Is Also a Vendor . . . . . . . . . . . . . . . . . . . . . . . . . . . .187 Recording Customer’s Bounced Check . . . . . . . . . . . . . . . . . . . . . . . . .190   8 Reviewing and Correcting Errors with the Undeposited Funds Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 The Purpose of the Undeposited Funds Account . . . . . . . . . . . . . . . . . . . .194 Preference Settings that Affect Undeposited Funds . . . . . . . . . . . . . . . . . .194 Reviewing the Balance in the Undeposited Funds Account . . . . . . . . . . . .197 Creating an Undeposited Funds Detail Report . . . . . . . . . . . . . . . . . . .197 Creating a General Ledger Report of the Undeposited Funds Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199 Reviewing the Open Invoices Report . . . . . . . . . . . . . . . . . . . . . . . . . .200 Viewing Deposits in the Bank Register . . . . . . . . . . . . . . . . . . . . . . . . .202 Viewing the Deposit Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . .203 Fixing Errors with the Undeposited Funds Account . . . . . . . . . . . . . . . . . .205 Clear Up Undeposited Funds Account–New for QuickBooks 2009! . . .205 Removing Old Dated Payments in the Undeposited Funds Account . . .205 Reconciling Your Bank Register with the Bank Statement’s Deposits . . .208   9 Handling Current Asset Accounts Correctly . . . . . . . . . . . . . . . . . . . . . .213 Defining an Other Current Asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .214 Reviewing and Troubleshooting the Other Current Asset Accounts . . . . . .214 Matching Other Current Asset Balances to an Outside Document . . . .215 Creating a Custom Transaction Detail Report . . . . . . . . . . . . . . . . . . .215 Reconciling Other Current Asset Accounts . . . . . . . . . . . . . . . . . . . . . .217 Troubleshooting and Creating Unique Other Current Asset Account Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219 Correcting Balance Errors in Your Other Current Asset Accounts . . . . . .219 Deducting Employee Loan Payments from the Employee’s Payroll Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221 Recording Prepaid Expenses in QuickBooks . . . . . . . . . . . . . . . . . . . . .224 Tracking Customer Retainage in QuickBooks . . . . . . . . . . . . . . . . . . . .225   10 Reviewing and Correcting Inventory Errors . . . . . . . . . . . . . . . . . . . . . .229 Overview of the Accounting for Inventory . . . . . . . . . . . . . . . . . . . . . . . . .230 Preferences That Affect Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232 Inventory Processes and Forms and Their Effect on Accounting . . . . . . . . .236 Reviewing and Troubleshooting Inventory Balances . . . . . . . . . . . . . . . . . .238 Perform a Physical Inventory Count . . . . . . . . . . . . . . . . . . . . . . . . . . .238 Reconciling the Inventory Valuation Summary Report with the Balance Sheet Inventory Balance . . . . . . . . . . . . . . . . . . . .239 Reviewing the Recorded Average Cost Valuation . . . . . . . . . . . . . . . . . .242 Reviewing Aged Open Item Receipts . . . . . . . . . . . . . . . . . . . . . . . . . .243 Reviewing Aged Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .248 Correcting Inventory Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250 Creating an Inventory Quantity Adjustment . . . . . . . . . . . . . . . . . . . . .250 Creating an Inventory Value Adjustment . . . . . . . . . . . . . . . . . . . . . . . .251 How QuickBooks Handles Negative Inventory . . . . . . . . . . . . . . . . . . . . . .254 When Inventory Has an Average Cost from Prior Purchase Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254 When Inventory Does Not Have a Prior Average Cost . . . . . . . . . . . . .256   11 Reviewing and Correcting Accounts Payable Errors . . . . . . . . . . . . . . . .261 Accounts Payable Forms and Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . .262 Accounts Payable Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262 Accounts Payable Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265 Preferences That Affect Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . .268 Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .269 Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270 Checking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272 Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273 Reports and Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274 Tax:1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274 Reports to Review When Troubleshooting Accounts Payable Errors . . . . . .275 Reconcile Balance Sheet Report Accounts Payable Balance to A/P Aging Summary Report Total . . . . . . . . . . . . . . . . . .276 Review the Unpaid Bills Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . .278 Reviewing Aged Open Item Receipts . . . . . . . . . . . . . . . . . . . . . . . . . .279 Reviewing Item Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281 When an Accounts Payable Balance Appears on a Cash Basis Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283 Reviewing and Printing Year-End Vendor Tax Forms . . . . . . . . . . . . . . .287 Correcting Accounts Payable Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .290 When a Vendor Was Paid with a Check . . . . . . . . . . . . . . . . . . . . . . . .290 Misapplied Vendor Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .295 Removing Aged Open Item Receipts or Vendor Bills . . . . . . . . . . . . . . .296 General Journal Adjustments to Accounts Payable . . . . . . . . . . . . . . . .298 Unique Accounts Payable Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .301 When Your Vendor Is Also Your Customer . . . . . . . . . . . . . . . . . . . . . . .301 Recording Vendor Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .303 Entering Mid-Year 1099 Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . .305 Taking Discounts on Vendor Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . .306 Memorizing Recurring Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .308 Depositing a Vendor Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .309 Paying and Recording a Credit Card Bill . . . . . . . . . . . . . . . . . . . . . . . .310   12 Reviewing and Correcting Sales Tax Errors . . . . . . . . . . . . . . . . . . . . . . .313 Preferences That Affect Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .314 Sales Tax Items, Groups, and Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318 Creating and Using Sales Tax Items . . . . . . . . . . . . . . . . . . . . . . . . . . .318 Creating and Using Sales Tax Group Items . . . . . . . . . . . . . . . . . . . . . .319 Creating and Using Sales Tax Codes . . . . . . . . . . . . . . . . . . . . . . . . . . .320 Assigning Sales Tax Codes to Products or Services . . . . . . . . . . . . . . . . . . .322 Assigning Sales Tax Codes and Items to Customers . . . . . . . . . . . . . . . . . .323 Reports to Review When Troubleshooting Sales Tax Errors . . . . . . . . . . . . .324 Reviewing Customer Lists for Tax Code and Tax Item Assigned . . . . . .325 Reviewing the Item List for Tax Code Assigned . . . . . . . . . . . . . . . . . . .326 Reconciling Total Sales to Total Income . . . . . . . . . . . . . . . . . . . . . . . .327 Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable . . . . .329 When a Check or Bill Form Is Used to Pay Sales Tax . . . . . . . . . . . . . . .330 Properly Paying Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .331 Paying Sales Tax Without an Adjustment . . . . . . . . . . . . . . . . . . . . . . .331 Paying Sales Tax with an Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . .333 Correcting Sales Tax Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .335 When a Check or Bill Form Was Used to Pay the Sales Tax . . . . . . . . . .335 When the Sales Tax Liability Report Shows Past Sales Tax Due . . . . . . .337 When Total Sales Does Not Equal Total Income . . . . . . . . . . . . . . . . . .340 Unique Sales Tax Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .341 Tracking and Collecting Multiple Sales Tax Rates . . . . . . . . . . . . . . . . .341 When Your State Imposes a Maximum Sales Tax . . . . . . . . . . . . . . . . .341 Multiple Sales Tax Rates on One Invoice . . . . . . . . . . . . . . . . . . . . . . . .343 Issuing Credit Memos When Sales Tax Should Not Have Been Charged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345   13 Reviewing and Correcting the Opening Balance Equity Account . . . . .347 Purpose of the Opening Bal Equity Account . . . . . . . . . . . . . . . . . . . . . . .348 Transactions in the Opening Bal Equity Account . . . . . . . . . . . . . . . . . . . .348 Bank Statement Ending Balance Entered in the EasyStep Interview . . . .350 Opening Balance in the Add New Account Dialog . . . . . . . . . . . . . . . .351 Entering a Total Value for a New Inventory Item . . . . . . . . . . . . . . . . . .354 Bank Reconciliation Adjustments (QuickBooks 2005 or Older) . . . . . . .356 Accrual Basis Startup Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .357 Reports to Review and Troubleshoot the Opening Bal Equity Account . . . .358 Closing Opening Bal Equity into Retained Earnings . . . . . . . . . . . . . . . . . .360 Setting a Closing Date and Password . . . . . . . . . . . . . . . . . . . . . . . . . . . .363   14 Reviewing and Correcting Payroll Errors . . . . . . . . . . . . . . . . . . . . . . . .365 Payroll Service Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .366 Payroll and Employees Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .368 Payroll Forms and Workflow in QuickBooks . . . . . . . . . . . . . . . . . . . . . . . .370 Payroll Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .370 Payroll Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .371 Using the Payroll Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .373 Using the Run Payroll Checkup Diagnostic Tool . . . . . . . . . . . . . . . . . . . .375 Reports to Review When Troubleshooting Payroll . . . . . . . . . . . . . . . . . . .382 Payroll Item Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .383 Comparing Payroll Liabilities Balances to the Balance Sheet . . . . . . . . .384 Compare Payroll Summary to Filed Payroll Returns . . . . . . . . . . . . . . . .388 Adjusting Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389 Unique Payroll Transactions and Processes . . . . . . . . . . . . . . . . . . . . . . . . .393 Scheduled Payroll and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .394 Deposit a Refund of Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .395 Reprint a Lost Payroll Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .396 Setting Up Payroll Mid-Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398 Paying a Taxable Bonus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .402 Employee Loan Payment and Repayment . . . . . . . . . . . . . . . . . . . . . . .403 Adjusting an Employee Paycheck . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409   15 Sharing Data with Your Accountant or Your Client . . . . . . . . . . . . . . . . .411 Sharing QuickBooks Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .412 Benefits for the Business Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .412 Benefits for the Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .413 QuickBooks File Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .413 Choosing a Method to Share Data . . . . . . . . . . . . . . . . . . . . . . . . . . . .416 Data Sharing for the Business Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . .418 Reviewing Your QuickBooks Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . .420 Using the Accountant’s Copy Feature . . . . . . . . . . . . . . . . . . . . . . . . . .420 What the Business Owner Can and Cannot Do . . . . . . . . . . . . . . . . . . .425 Importing Your Accountant’s Changes . . . . . . . . . . . . . . . . . . . . . . . . .427 Canceling an Accountant’s Copy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .431 Data Sharing for the Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .432 Creating an External Accountant User Type . . . . . . . . . . . . . . . . . . . . .433 Preparing Your Client for the Data Exchange . . . . . . . . . . . . . . . . . . . .434 Working with an Accountant’s Copy File . . . . . . . . . . . . . . . . . . . . . . . .435 What the Accountant Cannot Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . .442 Returning the Accountant’s Copy Change File to the Client . . . . . . . . .443 What to Request from the Client When the Import Is Complete . . . . . .446 Converting the Accountant’s Copy to a Regular Company File . . . . . . .447   16 Reporting Tips and Tricks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .449 Intuit Statement Writer–New for 2009! . . . . . . . . . . . . . . . . . . . . . . . . . .450 Benefits of Using the Intuit Statement Writer . . . . . . . . . . . . . . . . . . . .451 Functions of the Intuit Statement Writer . . . . . . . . . . . . . . . . . . . . . . . .451 How to Use the Intuit Statement Writer . . . . . . . . . . . . . . . . . . . . . . . .456 Creating Supporting Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .472 Company Snapshot–New for 2009! . . . . . . . . . . . . . . . . . . . . . . . . . . . . .478 Income and Expense Trend Graph . . . . . . . . . . . . . . . . . . . . . . . . . . . .479 Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480 Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480 Customers Who Owe Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480 Vendors to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .481 Defaulting the Company Snapshot as Home Page . . . . . . . . . . . . . . . .481 Using the Report Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .482 Reporting Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .484 My Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .485 Company Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .485 Modifying Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .488 Modifying Options Available on the Report Window . . . . . . . . . . . . . .488 Modify Report Button . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .489 Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .490 Creating Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .490 Using Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491 Managing Report Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .493 Memorized Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .494 Exporting and Importing Report Templates . . . . . . . . . . . . . . . . . . . . . . . .495 Exporting a Report or Report Group Template . . . . . . . . . . . . . . . . . . .495 Importing a Report or Report Group Template . . . . . . . . . . . . . . . . . . .496 Exporting Reports to a .CSV File or to Excel . . . . . . . . . . . . . . . . . . . . . . .497 Emailing Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .499 About Financial Statement Designer . . . . . . . . . . . . . . . . . . . . . . . . . . . . .501   17 New for 2009! Detecting and Correcting with the Client Data Review Feature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .503 Introduction: Features and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .504 Starting a Client Data Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .506 Customizing the Client Data Review Center . . . . . . . . . . . . . . . . . . . . . . .507 Modifying the Review Date and Basis . . . . . . . . . . . . . . . . . . . . . . . . . .509 Changing the Task Display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .509 Hiding and Showing Task Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . .511 Assigning Status and Notes to Review Tasks . . . . . . . . . . . . . . . . . . . . .512 Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .513 Troubleshooting Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . .514 Opening the Working Trial Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . .518 Review List Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .519 Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .520 Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .521 Fixed Asset Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .522 Payroll Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .523 Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524 Vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524 Fixing Unapplied Customer Payments and Credits . . . . . . . . . . . . . . . .525 Clearing Up Undeposited Funds Account . . . . . . . . . . . . . . . . . . . . . . .527 Reviewing the AR Aging Detail Report . . . . . . . . . . . . . . . . . . . . . . . . .529 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .531 Fixing Unapplied Vendors Payments and Credits . . . . . . . . . . . . . . . . .531 Evaluating and Correcting the 1099 Account Mapping . . . . . . . . . . . .533 Reviewing the AP Aging Detail Report . . . . . . . . . . . . . . . . . . . . . . . . .534 Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .534 Finding Incorrectly Paid Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . .535 Adjusting Sales Tax Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .537 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .538 Adjusting Inventory Quantity/Value on Hand . . . . . . . . . . . . . . . . . . . .539 Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .542 Finding Incorrectly Paid Payroll Liabilities . . . . . . . . . . . . . . . . . . . . . . .543 Run Payroll Checkup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .545 Reviewing Employee Default Settings . . . . . . . . . . . . . . . . . . . . . . . . . .550 Entering After-The-Fact Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .551 Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .553 Reconciling Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .553 Locating Discrepancies in Bank Reconciliation . . . . . . . . . . . . . . . . . . .554 Reviewing Missing Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .556 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .556 Setting the Closing Date and Password . . . . . . . . . . . . . . . . . . . . . . . .557 Reviewing Quickbooks Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . .559 Finishing a Client Data Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561 Saving the Review as a PDF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561 Marking Review Complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561 Reopening a Client Data Reviw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .563 Reporting on Review Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .563 Creating an External Accountant User . . . . . . . . . . . . . . . . . . . . . . . . . . .566   Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .569