Throughout the next few months, we are going to take an in-depth look at how to perform some of the most basic functions in QuickBooks. We are going to start with the very first task of setting up a new company.
This part of QuickBooks is actually quite user-friendly if you use the "Interview" mode. Of course if you are a professional, you can just skip the whole interview and go right to setting up the company any way you wish.
So let´s get started with setting up a new company using the Interview mode:
1. Enter Company Information — In this screen you will enter the company name, address, telephone and fax numbers, tax identification numbers, etc. This one is very self-explanatory.
2. Set Up Password — I highly recommend this for privacy issues as well as not having your accounting information changed on accident or otherwise.
3. Create Company File — This screen directs you to where your file will be saved. I recommend you write the path down so you will know where to find your file if needed. (We will discuss why later)
4. Customizing — Select Industry — There are quite a few industries available to choose from. If you do not find your exact industry, don´t worry because you can set up your information any way you wish once you are done. For now, choose an industry that most resembles yours.
5. Services Only, Products Only or Services and Products — Choose one.
6. Will You Sell Products Online? Yes or No
7. Do You Charge Sales Tax? This one is recommended. Click Yes.
8. Do You Want To Create Estimates? This one is also recommended, however, if you know you will not be creating estimates, I would say no.
9. Do You Want To Use Sales Receipts? If customers occasionally or always pay in full at the time of the sale, i.e. retail, click yes.
10. Do You Want To Use Billing Statements? Do you send weekly or monthly statements to clients? If so, click yes.
11. Does Your Company Progress Invoice? This would be used for progress billing letting you invoice for jobs that are completed in phases.
12. Will You Keep Track Of Bills You Owe? This is a great feature to keep you from missing payments.
13. Will You Be Tracking Inventory? Yes or No
14. Will You Be Accepting Credit Cards? Yes or No
15. Will You Be Tracking Time? I recommend this for anyone who needs to invoice a client based on time spent, i.e. attorneys
16. Do You Have Employees? Either 1099 or W2
17. Enter Start Date. My personal opinion on this one is that you use the last tax filing date — i.e. if your company is on a calendar year, and filed taxes last year, start with 1/1/06. There are people who would like to have their entire history in QuickBooks. I think if you only have a few months to enter, that would be fine, but if we are talking about years, this is not recommended because of the time and expense involved in entering.
18. Add Bank Account — You may enter as many bank accounts as you wish. They may be checking, savings or any other type of bank accounts. You will be asked to enter the date you opened the account and the ending amount. Again, if you start with 1/1/06, I would recommend that you use the December 05 ending bank balances.
19. Review Expense Accounts — In this area, it will show you which expense accounts QuickBooks selected for your company based on the type of company you selected in the beginning. You have the option of clicking "yes" to accept these accounts, or "no" to set up your own accounts. If you are not very familiar with the chart of accounts function, I would recommend that you accept the default and you can add new items once you are in and working with the program.
20. Review Income Accounts — Same scenario as above. Go ahead and accept the defaults and make any adjustments later.
This is just one tiny little step towards working with your new QuickBooks program. Stay tuned for the next step!
"Tell me and I’ll forget. Show me, and I may not remember.
Involve me, and I’ll understand." ~ Native American Saying