Tracking Time in QuickBooks-Part 2

Recording Employee Hours

There are two ways to enter hours for your employees who provide services to customers and are paid by the hour. The first is to create a work ticket for a single activity. Click Enter Time on the home page, and then Time/Enter Single Activity to open this window:

Single-activity work tickets for employee hours are especially useful if you need to set a timer.

First, check the date to make sure it displays the day when the work was actually done, not recorded. Click the arrow in the field next to Name and select the employee’s name from the drop-down list that opens, then do the same in the Customer:Job field below. The Service Item field needs to display the name of the service performed by the employee.

If you want to time a period of activity, use the Start, Stop, and Pause buttons under Duration. You can also replace the 0:00 that appears by default with the number of hours and minutes that were worked.

In the middle column, you’ll select the correct Payroll Item from the drop-down list. You can add a new employee if necessary without completing his or her entire record, but be sure to go back and complete it before your next payroll.

Hidden behind the drop-down menu is a field titled WC Code, which stands for Workers’ Compensation Code. It will only appear if you’re using QuickBooks Enhanced Payroll and have that feature turned on.

Tip: If these two fields do not appear, you’ve selected an employee who isn’t timesheet-based.

In the upper right hand corner, you’ll see a field labeled Billable. Be sure you click in the box to create a checkmark if you’ll be invoicing a customer for the work done.

Save the activity record when you’ve completed it.

Using Timesheets

You can enter employees’ hours directly on a timesheet instead of creating a single activity record.

QuickBooks offers a second option for entering employee hours: timesheets. You’ll notice that there’s a Timesheet icon in the toolbar of the Time/Enter Single Activity window. If you click on it with a completed record open, a new window opens containing a graphical representation of a paper timesheet.

If you enter employee hours in a single activity record, they will appear on a timesheet, and vice versa. There are two advantages to entering hours directly on the timesheet, though. The first is that it’s faster. And secondly, you can click the Copy Last Sheet icon if you’re just going to duplicate an employee’s previous pay period’s hours. If you want to go there straight from the home page, click Enter Time | Use Weekly Timesheet.

Billing Customers for Time

QuickBooks makes it very easy to transfer billable hours worked by employees to the corresponding customers’ invoices. After you’ve entered blocks of time spent on services, open an invoice form and select the customer. This window will open:

Once you’ve entered billable hours worked by an employee, simply open an invoice form and select that customer to open this window.

By default, Select the outstanding billable time and costs to add to this invoice? is checked. When you click OK, a new window opens displaying a grid that contains all of that customer’s billable time. You can Select All or click in front of each entry you want to include. You’ll notice here that there are also tabs on the grid for Expenses, Mileage, and Items that can be billed back to the customer.

If you choose not to carry billable hours over to the invoice at the present time, you can always add them by clicking Add Time/Costs in the invoice’s toolbar.

Questions? We’re always available to help ensure that you’re billing customers for all costs they incur – and to talk about any other element of your QuickBooks.

Small Business Solutions LLC
Intuit Premier Reseller

Getting Ready for Payroll in QuickBooks Online

Taking on your company’s payroll with QuickBooks Online? Knowing what you’re up against ahead of time will make your setup tasks much easier.

Our Purpose Here

We’ll provide some step-by-step instruction, but initially, we just want you to see what information you’ll need to have available and how QuickBooks Online handles it. This is not meant to be a payroll setup tutorial.

Building a Backbone

There’s no particular order set in stone for your payroll preparation tasks, although you will need to provide some background information about your company and its policies before you can start creating employee records.

QuickBooks Online doesn’t walk you through the steps required. It does though display a page with links to all of the data you’ll have to enter. Click the gear icon in the upper right, and then click Payroll Settings. You’ll see this screen:

QuickBooks Online’s Payroll Settings screen displays links to the pages where you’ll manage your setup tasks.

You would have entered information about your Contact Information and Work Locations (under the Business Information heading) when you first signed on to QuickBooks Online. At the same time, you would have been exposed to the Chart of Accounts, which already has accounts designated for payroll. You can see them by clicking Preferences | Accounting, but please do not customize these. If modifications are needed, we’ll do them for you.

Payroll Policies

How often will you pay your employees? Go up to the Payroll heading in the upper left and click on Pay Schedules. Click Create and open the drop-down list next to Pay Period to select the frequency desired. Then enter the date for the first payroll you’ll run in QuickBooks Online and the end date for the period that it covers. Click the box below if you want this to be the default setting for all employees. Then click OK to return to the previous page.

Open the Vacation and Sick Leave Policies window. If you don’t yet have accrual rules for these paid days off, let us help you here. It’s complicated. When you’re done, click the back arrow to return to the Pay Policies window and select Deductions/Contributions. Are you offering benefits like health insurance? You’ll need to have your paperwork and information handy before you start completing this section.

Before you can pay employees, you’ll need to have entered information about the benefits you offer so you can withhold dollars for them.

Click the plus sign (+) in front of Add a New Deduction/Contribution and complete the fields here, then click OK. You’ll assign these deductions to employees on their individual records in QuickBooks Online. If there are any Employee Garnishments needed (like child support), click the down arrow next to Add Garnishment for and select the worker from the list. You’ll provide details for these in the window that opens. This information was most likely provided to you by the agency requesting it. When you’re done, click OK.

Taxes and More

If you’re new to payroll and have never dealt with payroll taxes before, you’re going to need our help getting this complicated element set up correctly. Even if you have, we’d recommend that you let us work with you. QuickBooks Online does a good job of providing guidance here, but failure to submit payroll taxes (or pay them incorrectly) can lead to penalties and fines – or worse.

There are other setup tasks you’ll need to complete, like:

  • Connecting your payroll bank account to QuickBooks Online.
  • Creating employee records.
  • Setting payroll production preferences.

Setup is by far the most challenging part of processing payroll in QuickBooks Online. Once that’s done, you’ll just be entering hours and making modifications. Please connect with us at 256-337-5200 if you’re planning to take this on, and we’ll make sure you get a good start.

Small Business Solutions LLC
Intuit Premier Reseller


Tracking Time in QuickBooks-Part 1

Building the Foundation

We’ve discussed QuickBooks’ Preferences many times before. The software was designed to support small businesses with a wide variety of structures and needs, so it needs to be flexible. For that reason, we always recommend that you check in with your “Preference” options before you explore new features.

To get there, open the Edit menu and select Preferences. In the left vertical pane, click on Time & Expenses, then on the Company Preferences tab at the top. Here is a look at the top part of the window that opens:

The Company Preferences window for Time & Expenses displays multiple options.

To make sure that QuickBooks’ time-tracking features are turned on before you start, click the button next to Yes under Do you track time? Specify the First Day of Work Week by opening that drop-down list. If you know that all your time entries will be billable, click in the box in front of that statement.

There are other options in that window; we’ll talk about them next month.

Creating Service Items

Before you can start tracking billable time, you have to create a record for each service offered – just like you would for a physical product. Click the Items & Services icon on the home page or open the Lists menu and select Item List. The window that opens will eventually display a table containing all the items and services you’ve created.

To define a service item, click Item in the lower left corner, then New, to open a window like this:

You can create numerous types of items in QuickBooks; Service is one of them.

Click the down arrow in the field under Type to see your options here. There are many, ranging from Service to Inventory Part to Sales Tax Group. Select Service. In the field under Item Name/Number, enter a word or phrase and/or number that describes the service, and that won’t get confused with another.

If you had already created an item like “New Construction Services” and you wanted “Carpet Installation” to appear as a subitem of it, you’d click in the box in front of Subitem of to create a checkmark, then open the drop-down list below it and select “New Construction Services.”

Ignore the Unit of Measure section. If this designation is important to your business, talk to us (call 256-337-5200) about upgrading your version of QuickBooks. Connect with us, too, if the service you’re defining is used in assemblies or is performed by a subcontractor or partner, as these are more advanced situations.

Enter a brief Description in that box and your hourly charge—to the customer—in the field to the right of Rate. Click the down arrow in the field next to Tax Code to select the item’s taxable status.

It’s very important that you get the next field right. QuickBooks wants to know which account in your company’s Chart of Accounts should be assigned to this item. In this case, it would be “Construction Income.” If you’re not yet familiar with the concept of assigning accounts, let’s set up a session to deal with this and other basic knowledge you should have. When you’re done, click OK.

Next month in Part 2, we’ll talk about entering time items in records and timesheets.

Small Business Solutions LLC
Intuit Premier Reseller

Customizing QuickBooks Online (QBO)

You can start using QBO immediately; however, your tasks will be easier and faster, if you customize it for your company.

Click on the small gear icon in the upper right corner. The window that opens displays links to all of the site’s options – a collection of choices that’s called “Preferences” in desktop QuickBooks.

When you click on the small gear icon in the upper right corner of QuickBooks Online, this window containing the site’s many options will open.
Global Settings

The first screen you should visit is Account and Settings. This page is divided into five sections, accessible by clicking on one of the tabs below:

Company -Your company’s name and contact information appears here, as well as identifying details like the tax form you file, as well as your industry.

Sales -You can do a lot of customizing here that will affect your company’s selling activities. For example, you can specify preferred invoice terms and delivery method, and indicate whether to turn on features like:

  • Shipping
  • Custom fields and transaction numbers
  • Discounts
  • Quantity and price/rate
  • Inventory quantity on hand
You can also access the site’s tools for customizing the design and layout of your sales forms (invoices, receipts, etc.).
Expenses -You’ll toggle expense-related tools on and off here. You can choose to, for example, track expenses and items by customer and make them billable. Will you be using purchase orders? What will your default bill payment terms be?
Payments -Here, you’ll be able to set up a merchant account so you can accept credit cards and bank transfers from customers through QuickBooks Online. If you already have a merchant account, you can connect it here.
Advanced -There’s a good reason why this section is named “Advanced.” You may not be familiar with some of the concepts here, like “closing books” and specifying default accounts for items like Markup. We can go over these things with you and help you make decisions.
Other entries in this list are easier to complete, though you may still want some guidance. Will you support multiple currencies? Automatically apply credits and invoice unbilled activity? Make individually-tracked time activities billable to customers?
Other Preferences
There are many other areas in this window that you’ll want to explore before you start processing a lot of transactions in QBO. If more than one person will have access to the site (we’ll assume you’re the Administrator), you must click on Manage Users. Here, you can set limits of what other employees can access. Click New on the screen that opens to launch this mini-interview, and follow its instructions:

You can restrict users to specific areas of QuickBooks Online.


Other preferences you should look at include:
  • Chart of Accounts – only to familiarize yourself with the accounts that make up the backbone of your accounting data. You’ll use these in transactions. Please do not make any changes here without talking to us.
  • All Lists – to see what’s available here, like ClassesRecurring Transactions, and Payment Methods.
  • Products and Services – to start building records for the items and services you sell. If you carry inventory and have never worked with a website that helps you manage it, please let us go over these concepts with you.
  • Budgeting – if you plan to create a budget. QBO contains a tool that will accommodate this critical task.
  • Audit Log – if multiple people will be using QBO. It tracks all activity by date and user.

QuickBooks Online is easy to use, but there’s a lot to learn upfront about customizing it to meet your company’s accounting needs. It’s natural to feel a bit overwhelmed at first. Let us help you get through those early days of use.  Connect with us at 256-337-5200, so we can guide you through the basics.


The “QB Bob” Team
Intuit Premier Reseller

6 QuickBooks Reports You Need to Run in January

A Report Dashboard
You may be using the Reports menu to access the pre-built frameworks that QuickBooks offers. Have you ever explored the Report Center, though? You can get there by clicking Reports in the navigation toolbar or Reports | Report Center on the drop-down menu at the top of the screen.
QuickBooks’ Report Center introduces you to all of the software’s report templates and helps you access them quickly.
As you can see in the image above, the Report Center divides QuickBooks’ reports into categories and displays samples of each. Click on one of the tabs at the top if you want to:
  • Memorize a report using any customization you applied.
  • Designate a report as a Favorite.
  • See a list of the most Recent reports you ran.
  • Explore reports beyond those included with QuickBooks, Contributed by Intuit or other parties.

Recommended Reports

Here are the reports we think you should run as soon as possible if you didn’t have a chance to in December:

1.  Budget vs Actual

We hope that by now you’ve at least started to create a budget for 2018. If not, the best way to begin is by looking at how close you came to your numbers in 2017. QuickBooks actually offers four budget-related reports, but Budget vs Actual is the most important; it tells you how your actual income and expenses compare to what was budgeted.

2.  Budget Overview 

It is just what it sounds like: a comprehensive accounting of your budget for a given period. Profit & Loss Budget Performance is similar to Budget vs Actual. It compares actual to budget amounts for the month, fiscal year-to-date, and annual. Budget vs Actual Graph provides a visual representation of your income and expenses, giving you a quick look at whether you were over or under budget during specific periods.

3.  Income & Expense Graph

You’ve probably been watching your income and expenses all year in one way or another. But you need to look at the whole year in total to see where you stand. This graph shows you both how income compares to expenses and what the largest sources of each are. It doesn’t have the wealth of customization options that other reports due, but you can view it by date, account, customer, and class.

4.  A/R Aging Detail

QuickBooks’ report templates offer generous customization options.


Which customers still owe you money from 2017? How much? How far past the due date are they? This is a report you should be running frequently throughout the year. Right now, though, you want to clean up all of the open invoices from 2017. A/R Aging Detail will show you who is current and who is 31-60, 61-90, and 91+ days old. You might consider sending Statements to those customers who are way past due.

5.  A/P Aging Detail

Are you current on all of your bills? If so, this report will tell you so. If some bills slipped through the cracks in December, contact your vendors to let them know you’re on it.

6. Sales by Item Detail

January is a good time to take a good look at what sold and what didn’t in 2017 before you start placing orders for 2018. We hope you’re watching this closely throughout the year, but looking at monthly and annual totals will help you identify trends – as well as winners and losers.

QuickBooks offers some reports in the Company & Financial and Accountant & Taxes categories that you can create, but which really require expert analysis. These include Balance SheetTrial Balance, and Statement of Cash Flows. January is a good time to run reports you didn’t have time to do in December. We can help–call us at 256-337-5200 to scheduled an appointment.

The “QB Bob” Team
Intuit Premier Reseller

Using QuickBooks Online’s Customer Records

Your customers are your company’s lifeblood. Are you managing those relationships carefully? 

Keeping Thorough Records

The core of any good customer-tracking system is a comprehensive set of individual profiles. QuickBooks Online offers thorough, flexible record templates for just that purpose. Click Sales in the main toolbar, then the Customers tab at the top of the screen. To create a new customer record, click New Customer off to the right to open the Customer Information window.


Note: If you have your customer database in an existing Excel or .CSV file, you should be able to import it. QuickBooks Online provides instructions for this.

You can create a profile for each customer in the Customer Information window.

You’ll need to enter a lot of the information yourself here, mostly contact details. A down arrow next to a field indicates that there’s a drop-down list of options available.

The lower left quadrant of the screen contains a series of tabbed information windows. Click on each to enter what you can about each customer’s:

  • Address – both billing and shipping
  • Notes – any that you’d like to enter
  • Tax info – exemption details and default tax code (if taxable)
  • Payment and billing – preferred payment and delivery method, payment terms, and opening balance
  • Attachments – any files pertaining to this customer that you want to include

When you’re done, click Save. Your new record will appear in your list of customers. You’ll be able to toggle back and forth between the details you just entered and a list of their transactions.

Working with Customers

You can always add new customers as you go along, but it’s a good idea to enter records for all of them before you start creating transactions. It will save time down the road, and their accessibility will help with other accounting tasks.
When you click on Sales | Customers now, you’ll see something like this:
Your Customers page contains a list of customers with links to related activities. It also provides a color-coded row of bars that represent the status of invoices and estimates.

The Customers page consists of many elements. The main section displays a table of your customers. Click on one to open the page containing the Transaction List and Customer Details. On this screen, though, you’ll only see columns for Customer/Company, Phone, Open Balance, and Action by default; click the gear icon in the upper right if you want to include more columns here. When you click on the down arrow next to a field in the Action column, a drop-down list will display the options available for that customer, like Receive payment, Send reminder, and Create Statement.

A series of colored bars runs across the top of the screen. Each represents the current status of a specific transaction type: Estimates, Unbilled Activity, Overdue, Open Invoices, and Paid Last 30 Days. Click on any of these to open a list of pertinent transactions. You can do all of these activities elsewhere in QuickBooks Online, but it’s convenient to be able to work directly from the Customers screen, too. The fewer clicks, the better.

Call on Us

Did you make a resolution to start using QuickBooks Online this year? QBO was built for use by business managers, not accountants, but it can still be a little daunting at first. We’re always available to take your questions and help you with setup and/or daily implementation.

Connect with us if you need assistance.


The “QB Bob” Team
Intuit Premier Reseller

Are You Using QuickBooks’ Reminders?

QuickBooks’ Reminders can prevent countless problems with your finances.

Totally Customizable

To start setting up Reminders, open the Edit menu and select Preferences. Click Reminders in the left vertical pane. With the My Preferences tab highlighted, click in the box in front of Show Reminders List when opening a Company file to create a checkmark. Then click on the Company Preferences tab to open this window:

When you’re setting up your Preferences for QuickBooks’ Reminders, you can customize each type in multiple ways.

As you can see in the above image, QuickBooks lets you create reminders for a wide variety of actions. For each, you can indicate whether the Reminders window will display a summary or a list, or whether that particular activity will not be included. For those that are time-sensitive, like Checks to Print, you’ll also be able to specify how much warning you’ll get – how many days in advance each item will appear in the Reminders list.

My Preferences vs Company Preferences

If you haven’t worked much with QuickBooks’ Preferences, you may not understand the difference between the two tabs that appear in each window. Only the QuickBooks Administrator can make changes on the Company Preferences page, since these affect company-wide settings. All users, though, can change any options that appear in the My Preferences window.

Here’s an example of a Preference (General) where all employees can indicate how they want QuickBooks to work for them specifically:

Open the Edit menu and select Preferences, then General to open this window. Everyone who uses QuickBooks can set up their Preferences here, but only the administrator can modify Company Preferences.

Using Reminders

If you indicated in My Preferences that you want the Reminders window to open every time you open your company file in QuickBooks, it should appear on top of your desktop. If you didn’t, or if you need to see it after you’ve closed it, open the Company menu and select Reminders. A link should also be available in the toolbar.

Using the Reminders tool is like using any other interactive to-do list.

QuickBooks’ Reminders window displays the tasks you need to do today and in the near future. You can click the arrows to the left of each boldfaced category to expand or collapse the list.

There are two icons in the upper right of the window (not pictured here). Click the plus (+) sign, and the Add To Do window opens. You can create six types of to-do items here: call, fax, e-mail, meeting, appointment, and task. Each can be assigned to a customer, vendor, or employee, or earmarked as a lead. You can designate a priority (low, medium, high) and a status (active, inactive, done) to each. You can also assign a time and date due, and enter descriptive details. Each to-do then appears in the appropriate place in QuickBooks.The left pane of the window displays tasks that must be done today, while the right shows upcoming tasks. Small arrows to the left of each task category expand and collapse each section when you click on them. Double-click a task (not the category label), and the relevant form or other document opens. When you’ve completed the chore, it will disappear from the list.

The other icon, a small gear, opens your Preferences for Reminders.

The mechanics of setting up your Reminders window are not difficult. What can be a challenge is watching your cash flow as all these transactions occur. If you’re struggling with that, let’s sit down together and develop a plan for keeping your cash flow positive while meeting your financial obligations.

The “QB Bob” Team
Intuit Premier Reseller

Downloading Financial Transactions in QuickBooks Online (QBO)

Setting Up the Connection

Haven’t connected your financial institution to QuickBooks Online yet? It’s easy. Click the Banking link in the toolbar, then Add Account in the upper right. The Find your bank window opens. Start entering the name of your bank, credit card company, or service like PayPal in the blank field. A list of potential matches will drop down; you simply select the one you want. A window like this will open:

All you need to do to start downloading transactions into QuickBooks Online is select your financial institution and enter the User ID and Password you use to connect directly to the site.

You will have to go through some security procedures, and then QuickBooks Online will download 90 days of transactions (you can shorten this if you’d like). You’ll also be asked which QBO account should receive the transactions. After a few minutes, the register for that account will appear, displaying the transactions you just downloaded.

Warning: The mechanics of connecting to your bank and downloading your first batch of transactions may sound easy, but if everything is not absolutely clear to you as you’re going through the process, please contact us sooner rather than later.

Working with Transactions

Once you’ve downloaded a set of transactions, you’ll want to look at them. Again, click the Banking link in the navigation toolbar. Your accounts will appear in small boxes at the top of the page, along with two balances: the one that came from the financial institution and the one in QuickBooks Online. Select the one you want by clicking on it, and its register will open.

Tip: QuickBooks Online generally updates your accounts once daily. If you want to launch a manual update at any time, click on Update in the upper right corner.

Let’s look at one downloaded transaction to see what you can do with it. Make sure the For Review column is highlighted above the register. Select a transaction by clicking on it. A window like this will open below it:

QuickBooks Online does more than simply download financial transactions: It lets you define them in greater detail.

There are several options here, including:

  • Add to register. If you’re satisfied with the information as is, just click the Add button to the right (not pictured here).
  • Split. If you want to split the amount/category (SuppliesTools, etc.)/class of a transaction, click Split (also off to the right and not pictured). A window will open to let you specify that.
  • Assign categories. QuickBooks Online may automatically make assignments to obvious categories, which you can change if incorrect. You can also click the down arrow to the right of that field and select your own from the list.
  • Bill an expense to a customer. Did you purchase something that needs to be billed to a customer? Click in the box under Billable and select the correct one from the drop-down list that opens.
  • Find matches. This can get complicated, and we recommend you let us work with you on it. Let’s say you entered an invoice in QuickBooks Online, and an income item for that exact amount gets downloaded from your bank. QBO will assume that those two “match,” and display them in the In QuickBooks column. You can click Undo if this is incorrect. But you can also click Find match in the transaction window, and QBO will open a list of possibilities.

As you can see from browsing the lists of downloaded transactions, there’s a lot to learn here. We’d be happy to get together and walk you through your first explorations of these powerful features. Call us today at 256-337-5200.

The “QB Bob” Team
Intuit Premier Reseller

Keeping Vendor Records in QuickBooks

Filling in Fields

To create a vendor record, open the Vendors menu and select Vendor Center. Above the tabbed table, there’s a small toolbar. Open the New Vendor menu and click on New Vendor. A window like this will open:

You can store an enormous amount of detailed information about your vendors in these record templates.

At the top of the screen (not pictured here) is a box labeled Vendor Name. Enter it, then move on to the Opening Balance field and supply the amount and date. If you don’t understand the concept of opening balances, we can go over this with you.

Fill in as many of these fields as you can, then click on the Payment Settings tab in the toolbar on the left. The fields in this window-Payment TermsCredit Limit, etc.-are optional, but complete what you’re able to. The more you can fill out now, the less work you’ll have to do later, since much of the information here automatically comes up when you create transactions.

The other tabs here open windows where you can specify:

  • Tax Settings. Vendor Tax ID and 1099 eligibility.
  • Account Settings. Here, you can select the default account that should be automatically selected when you enter a bill or expense for this vendor (for example, phone bills=Utilities:Telephone). Talk to us if you don’t understand this. It’s OK to leave it blank for now.
  • Additional Info. Vendor Type (subcontractors, for example) and Custom Fields (fields you can define for your own use).
When you’re done, click OK.

Viewing Your Records

Once you’ve created one or more vendor records, the Vendor Center will display a list of them in its left pane. Click on one to highlight it, and you’ll see something like this in the right pane:

The Vendor Information window displays contact information in the top pane (not pictured here), and additional details below.

Here’s where your conscientious work creating records starts to pay off. Click on any of the five tabs in the top toolbar to display that vendor’s Transactions, the Contacts from that company, any related To Do’sNotes you’ve taken, and Sent Email. Once your lists grow unwieldy, you can search by a variety of filters.

Using Records in Transactions

There are numerous transaction types that require vendor information, like purchase orders, bills, checks, and sales tax payments. When you open one of these transaction forms and click the down arrow in the Vendor field, your list will drop down. Select one, and related details that you’ve already entered will automatically appear in the correct fields.
You can create vendor transactions from either the home page or the menus. You can also do so from the Vendor Center.With either the Vendors or Transactions tab active, you’d click on the New Transactions link in the upper toolbar and select the one you want to launch.

QuickBooks provides numerous paths to creating vendor-related transactions.

The mechanics of filling in the fields in vendor records and using that information in transactions are not overly complicated. However, as we’ve noted here, you may run across unfamiliar concepts. We’d be happy to spend some time with you exploring this whole topic–please call us at 256-337-5200 today to set up an appointment.


The “QB Bob” Team
Intuit Premier Reseller

Setting Up Sales Tax in QuickBooks Online

Setting Up Sales Tax

Below is the process of setting up sales tax rates so you can see how it will work. Click the Taxes link in the toolbar. The new screen should open to the Sales Tax Center; if it doesn’t, click its link in the toolbar above. In the right vertical pane, under Related Tasks, click Add/edit tax rates and agencies. Then click New to open this window:

You can define either a Single tax rate or Combined tax rate in this window.

You’d enter the Tax name, Agency name, and Rate in the designated fields if you’re just creating a Single tax rate. In some cases, you may have to enter a Combined tax rate. If so, click the button in front of that label. The window that opens contains fields that are similar to the ones in the above image, except that Tax name is replaced by Component name. You’ll choose this option when you have to record individual elements of the tax separately. For example, Ft. Myers | Lee County| Florida State.

To muddy things up even more, some items in some situations are exempt from sales tax.

Questions about the Combined tax rates? Contact us at 256-337-5200.

When you’re done, click Save. You’ll see the tax you just created in a table in the window that opens. To define a New tax, Edit an existing one, or Deactivate one in the list, click the appropriate button. If you’ve entered all you’ll need for now, click Return to Sales Tax Owed and Recent Payments.

Your Responsibilities

Once you’ve set up all the sales tax rates required for you, QuickBooks Online will calculate them for you in transactions where they need to be collected. You can see the running tally in the Sales Tax Center, but it’s up to you to create and record payments on the prescribed schedule. You can also run related reports here.

The site bases its calculations on three things:

  • The state(s) where you have obtained a sales tax permit(s),
  • Your company’s physical location, and,
  • The customer address on the sales form.

QuickBooks Online can’t know the exact tax situation for all its users. You have to do some detective work before you even start setting up sales taxes. You’ll need to know, for example, whether your state taxes the products or services you sell. Also, what’s the sales tax rate(s) for the affected states? What agency collects it? When are the payments you’ve collected from your customers due?

Your state government’s website should cover all of this.

Sales Tax Settings

Before you start working with sales tax, you’ll also need to make sure your settings are correct. Go back to the Sales Tax Center and click Edit tax settings on the right side of the screen to open this window:

To save time, QuickBooks Online lets you set some default sales tax actions.

Click the button in front of Yes after Do you charge sales tax? if it’s not already selected. If most of your transactions will use the same sales tax, you can set it as the default (but change it during transactions if necessary). If the majority of customers, products, and services will be subject to sales tax, you can check the boxes in front of the Mark all…statements (these designations, too can be edited in individual transactions).

You can see that using QuickBooks Online’s sales tax tools requires research, decisions, and extreme accuracy (state revenue departments run occasional audits). We have to stress again the importance of consulting with us for assistance. It’s an exceptionally complex element of accounting, and we want to make it work for you. Call us today at 256-337-5200.

The “QB Bob” Team
Intuit Premier Reseller

Creating Customer Statements in QuickBooks

Invoices not being paid promptly? Customers questioning their payment history? Create statements.

A Simple Process

Here’s how they work. Click Statements on the home page, or open the Customers menu and select Create Statements. A window like this will open:

QuickBooks provides multiple options on this screen so you create the statement(s) you need.

First, ensure the Statement Date is correct, so your statement captures the precise set of transactions you want. Next, you have to tell QuickBooks what that set is. Should the statement(s) include transactions only within a specific date range? If so, click the button in front of Statement Period From, and enter that period’s beginning and ending dates by clicking on the calendar graphic. If you’d rather, you can include all open transactions by clicking on the button in front of that option. As you can see in the screen shot above, you can choose to Include only transactions over a specified number of days past due date.

Choosing Customers

Now you have to tell QuickBooks which customers you want to include in this statement run. Your options here are:

  • All Customers.
  • Multiple Customers. When you click on this choice, QuickBooks displays a Choose button. Click on it, and your customer list opens in a new window. Click on your selections there to create a check mark. Click OK to return to the previous window.
  • One Customer. QuickBooks displays a drop-down menu. Click the arrow on the right side of the box, and choose the correct one from the list that opens.
  • Customers of Type. Again, a drop-down list appears, but this one contains a list of the Customer Types you created to filter your customer list, like Commercial and Residential. You would have assigned one of these to customers when you were entering data in their QuickBooks records (click the Additional Info tab in a record to view).
  • Preferred Send MethodE-mail or Mail?

Miscellaneous Options

At the top of the right column, you can select a different Template if you’d like, or Customize an existing one. Not familiar with the options you have to change the layout and content of forms in QuickBooks? We can introduce you to the possibilities–call us 256-337-5200!

Below that, you can opt to Create One Statement either Per Customer or Per Job. The rest of the choices here are pretty self-explanatory – except for Assess Finance Charges. If you’ve never done this, we strongly recommend that you let us work with you on this complex process.

When you’re satisfied with the options you’ve selected in this window, click the Preview button in the lower left corner of the window (not pictured here). QuickBooks will prepare all the statements in the background, then display the first one. You can click Next to view them one by one. At the bottom of each, you’ll see a summary of how much is due in each aging period, like this:

It’s easy to see the past due amounts within each aging period with the Summary that appears on the statement. 

After you’ve checked all the statements, click the Print or E-mail button at the bottom of the window.

Other Avenues

Your company’s cash flow depends on the timely payment of invoices. Sending statements is only one way to encourage your customers to catch up on their past due accounts. There are many others, like opening a merchant account so customers can pay you online with a bank card or electronic check. If poor cash flow is threatening the health of your business, give us a call @ 256-337-5200!. We can work together to identify the trouble spots and get you on the road to recovery.

The “QB Bob” Team
Intuit Premier Reseller

QuickBooks Online’s Mobile App

If you haven’t yet tried out the site’s companion mobile app, you might be surprised at how much you can actually accomplish on your smartphone. Take a look at the app’s main menu (with a partial view of the Activity screen to the right):

You can’t do everything on QuickBooks Online’s smartphone app that you can do in the browser-based version, but there’s a surprising amount of functionality here.

Once you’ve downloaded the app and signed in with your QuickBooks Online user name and password, you’ll see a home page divided into two vertical sections; you can toggle back and forth between them. One is your Dashboard, which displays current account balances and a graph showing an abbreviated version of your Profit and Loss report, as well as a graphical summary of paid and unpaid invoices. Click on Activity to see a list of your most recent actions and transactions.

Click on the three horizontal lines in the upper left of the screen, and the app’s main menu slides out. As pictured in the image above, this interactive list also serves as the app’s primary navigation tool. Any data that you’ve entered in the browser-based version (as well as anything you add here) will appear in list form when you click on an entry here. To add customers, invoices, sales receipts, etc., click on the + (plus) sign. You can also enter new transactions from each individual list screen.

Adding Transactions

If you’ve worked with mobile apps at all, you know that the user interface is different from what you see in full versions of applications accessed through a browser. QuickBooks Online’s app, though, is exceptionally easy to understand and use – perhaps even easier than the browser-based QBO.

Take the app’s New Expense screen, for example. At the top of the page is a camera icon. Click it to take a picture of a receipt. You can also enter the total manually in a field to the right. Below that are three buttons representing CreditCheck, and Other, so you can indicate how you paid for the purchase.

You’ll describe the expense by clicking on links that contain labels like:

  • Who did you pay?
  • What kind of expense is this?
  • Who was it for?

When you click on one, the app opens your list of related data. So, Who did you pay? opens your list of Payees. You can select one or add a new one. Click on the Billable button if the expense can be charged to a customer, and click Add a Split if you need to separate some of the items. There’s also room to add a Ref # and Memo. When you’re done, click Save to add it to your main QuickBooks Online file.

Viewing Existing Information

Besides entering data in the QuickBooks Online app, you can look up existing information.

You can just as easily find records and transactions you’ve entered either in the browser-based version of QuickBooks Online or on the app. You can follow the journey of an invoice as pictured in the screen shot above. QBO even prompts you to complete steps you haven’t taken. Click on the pencil icon in the upper right, and you can edit the data that appears on that screen.

Warning! Editing transactions that have been processed is risky. If you’re making errors that need correcting, we can help you determine when this is safe.

The QuickBooks Online app can also provide quick overviews of customer activity, with links to actions.

You may never need to access your QuickBooks Online data remotely on your smartphone. If you do, though, we can help you get set up with the site’s companion app so you’ll learn how they work together.

The “QB Bob” Team
Intuit Premier Reseller

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