QuickBooks Online Certification Course: Master Every Feature

We will define assets and liabilities. You will get the most clear explanation of the definition of these words as they are used in accounting.

The fundamental accounting equation is the basis if debits and credits. It helped derive the accounting system we use today.

This learn accounting video will finally show you the origin of debits and credits. It comes from the accounting equation and keeps it balanced. You will also learn about "T" accounts.

Serina May Jackson teaches the ideas of how to make debits and credits in basic accounting. She uses the Mark Smolen 3 step plan in the T accounts.

You will have a clear understanding of accounts receivable, accounts payable, as well as equity accounts like capital and withdrawals and understand how and why we use them.

You will use the equity accounts to record debits and credits in the T accounts and it makes it easier with these general ledger accounts.

Old School Accounting recorded all debits and credits in the general journal first. Then we post the transactions to the ledger t accounts and make a trial balance

There are separate records from the ledger account called "accounts receivable" and the records of the individual customers. They must be in sync after each transaction. The same is true for accounts payable.

Customer Terms are the conditions that they must meet to get the early pay discount.

Vendors offer us discount terms that we can track in a purchase discounts account if we pay early enough.

This Accounting video tutorial will explain in the simplest possible terms, what is accounting and why do we need it. It will then introduce you to financial statements

Accounting Adjustments must be recorded periodically, the correct the general to account for the changes caused by the passage of time.

Each Partner has their own Capital Account and their own withdrawals account. Theses debits and credits will distribute the partnership income from income summary to each partner's capital account to each enjoy their own share of net income

Closing Debits And Credits summarize the owner's equity accounts. Income summary is used to bring the net income to the owner's capital account

Depreciation is the process of allocating the cost of a long-term asset over time based on its usage, recording the decrease in value as an expense using historical cost rather than market value to ensure accurate financial reporting.

You will learn how to calculate and record depreciation based on actual usage by estimating an asset’s useful life, determining a cost per unit (such as per mile), and making periodic journal entries to reflect the value used and value remaining.

You will learn the three common methods of depreciation—units of production, straight-line, and accelerated depreciation—and understand how each method calculates and records expense over an asset’s useful life, including the use of accumulated depreciation as a contra account.

The Internal Revenue Service (I.R.S.) tells you in Publication 946 exactly how to classify assets by useful life and create depreciation schedules that determine annual tax depreciation expense.

Inventory is the accounting theory that relates to the buying and selling of merchandise.

There are 4 accounts that you must debit and credit to record selling merchandise when you use the perpetual inventory system. You can see your gross profit from the T accounts

The periodic inventory method calculates cost of goods sold at the end of an accounting period using beginning inventory, purchases, and ending inventory, rather than tracking inventory continuously. It is used in a merchandise business that sells too many products to be able to accurately track quantities on hand.

If the same item is purchased by you more than once with the same purchase cost, then QuickBooks online needs to calculate a cost-per-unit in order to determine the cost of goods sold when the items are eventually sold. Of the 3 common inventory valuation methods, QuickBooks DESKTOP (not this) uses the “weighted average” method. However, our QuickBooks Online uses the “First In First Out” method (F.I.F.O) (FIFO) method of inventory valuation and ultimately calculating the cost of the inventory on hand for the “inventory asset” account as well as finding the goods sold for each sale.

Have a change in unit cost of your inventory items as you purchase them? How do you know your inventory value? You can take the weighted average cost of your inventory items to use for your inventory valuation. But what is weighted average anyway? It is the inventory valuation method that QuickBooks desktop applies to your goods on hand in order to value your inventory asset. It’s a method we use to do inventory valuation, so we know the purchase cost of all merchandise items that are currently on hand; even if purchase costs have changes while we were buying and selling inventory.

A merchandise business has several accounts in their revenue section of the P & L that service companies do not have. You will learn about these and how to use "contra accounts" in this video lecture

Check your understanding and retention of what you learned about the periodic inventory system and the contra accounts.

In this lecture, you will compare the closing entries of a merchandise compoany (that uses the PERIODIC inventory system) to the closing entries of a service type of business so you can learn it easier.

Test your understanding and skills when it comes to closing the books of a merchandise compnay that uses the periodic inventory system.

This QuickBooks Online Crash Course Training Tutorial will show you how you can sign up for free with the 30-day-free-trial version of QuickBooks Online. You must be sure to sign up with the plus version, so you have all the features you need.

In This QuickBooks Online Training Video, the interface and screen choices of the QuickBooks online plus version will be shown and explained to you. Each thing you see on the screen will be discussed in such a way that you will be able to navigate through any part of QuickBooks online. The main parts are: the “plus sign” for new transactions and documents, the “cog wheel”, for settings and set up data, and the left panel menu for things like reports and customer and vendor permanent data.

Hello My Friends,

Many of you taking this course may have seen a change in the interface in QuickBooks Online. The windows you need are still there and they are unchanged. Reports and Transaction windows are exactly the same and have not changed since 2013. However, they seem to move the place to click to open these windows. I deeply regret that I cannot re-make the course after each change. Please be patient and have confidence that this will not affect your learning.

And as always…………….

I’m here if you need me.

-Mark

In this QuickBooks instructional video, you will learn how to record and edit customer and vendor information. You can manage the customer center and vendor center like a small data base or a rolodex of information. You can edit any of the data fields in the customer or vendor center and easily see any permanent customer or vendor information. The main reason to have this list, is to see their names on the pulldown list when entering a transaction.

In this QuickBooks training tutorial, you will learn how to record and edit accounts in the QuickBooks online chart of accounts. QBO gives you a chart of accounts for you to use or customize. We will learn how to delete the accounts that QuickBooks put in, and then add the accounts we really need. We will address the issue of “account type” and the “detail type” fields as well.

In this QuickBooks training tutorial, you will learn how to record and edit “ITEMS” to and from the QuickBooks online items list.  Items are products or services that you would put in the body of an invoice or sales receipt. These are things that you would sell to a customer. QBO can track your income by item by choosing an income account to connect to a specific item.

In this learn QuickBooks video, you will learn how to record invoices to customers. You will set up 2 reports to prepare for the first transaction entered in this course. You will record the invoice and see the results immediately in the trial balance as well as the customer balance detail.

In this QuickBooks instructional video, you will do your first practical excesses in QuickBooks online. This project will have you entering invoices from the invoice list. You should enter them exactly as you saw in prior qbo videos. When you are finished, your results should be the same as the results shown by the teacher in both the trial balance as well as the customer balance detail.  

In this QuickBooks instructional video, you will learn how to find and fix basic mistakes. You will learn the difference between a summary report and a detail report. You will see the results of editing a transaction and how the qbo reports change immediately after changing a transaction.

In this QuickBooks training tutorial, you will learn how to delete transaction in QuickBooks online.  You will learn that only your invited accountant can see a report that show all deleted transaction in your qbo account. You will also learn how to customize a transaction number on a document in QuickBooks online. You should click the cog and change the setting so you are able to input the document number of the transaction yourself.

In this QuickBooks training tutorial, you will learn how to record payments from customers for open invoices.  Open invoices are unpaid invoices. When you receive payment from customers, the balance of the customer goes down in the customer balance detail report. Accounts receivable in the trial balance will decrease. You must choose the bank account that the customer’s money will be recorded in to. The invoices that have remaining balance will show on the open invoice report. You must choose an invoice to apply the payment to.

In this QuickBooks instructional video, you will learn how to record sales receipts to customers. A sales receipt is the appropriate document when the customer pays immediately for a product or service you provided to them. Sometimes, the customer’s money is directly deposited in to the company bank account. You will learn how to edit the sales receipt. This video also introduces you to the “sales by customer detail” report. 

In this QuickBooks instructional video, you will learn how to customize any QuickBooks online report. You can add or remove columns to or from a report. You can change the date range of any qbo report. You can sort and filter QuickBooks online reports. The best repost is the journal. You should use it to find and fix mistakes and see where you left off when doing data entry with multiple transaction types.

In this QuickBooks instructional video, you will do a data entry exercise with all 3 of the customer transactions you learned so far. It will be a mix of: sales receipts, invoice payments and invoices that you will have to enter. When you finish, you should compare your results with the trial balance, customer balance detail and sales by customer detail report. If your results are different, you can use what you learned in the course to find and fix mistakes. After the exercise, there are puzzle type questions that help your problem-solving skills in qbo. You will see how to use logic to find and fix mistakes. This analytical and critical thinking when fixing mistakes will save you time. So, you do not have to go through every transaction 1 by one to find and fix your mistakes

In this QuickBooks instructional video, you will learn what “accounts payable” means. This is the total money that we owe to all vendors combined. This QuickBooks online lesson will introduce you to vendor related reports and vendor transactions. It will shoe our very first expenses and asset purchases. You will be introduced to your very first vendor report; the vendor balance detail.

In this QuickBooks instructional video, you will enter your first vendor’s invoice. QBO calls a vendor’s invoice a “bill”. You will see how to enter bills and see the results of these bills in the QuickBooks online reports.  This learn QuickBooks video will also show you how to add list items “on the fly”. That means you can enter new vendors or new accounts in to the chart of accounts at the moment you make the transaction. 

In this QuickBooks video tutorial, you will perform a data entry exercise where you enter multiple bills from vendors. After the exercise, you will compare your results in your trial balance and the results in your vendor balance detail to the results in the video. If they are different, you must use what you learned to find and fix mistakes. You will also be given problem solving questions and use critical thinking skills to answer the puzzle type of questions in the video

In this QuickBooks video tutorial, you will learn how to record bill payments for unpaid bills to vendors. You must apply the bill payment correctly and you can look at the vendor balance detail to see if you bill payments are correct.

In this learn QuickBooks video, you will learn how to record checks and record expenses. You will learn the difference between a “check” type of transaction and an “expense” type of transaction. They are similar and both reduce the bank account without changing the vendor’s balance. This is not the same thing as a vendor’s bill payment. These checks are for services or products that we pay for immediately.

In this QuickBooks training video, you will learn how to manage cash on hand and petty cash. This is cash that you received from customers that you will NOT deposit in to the bank account. Instead, you will use the customer’s cash to pay your companies’ expenses. 

In this QuickBooks training video, you will perform an exercise with inputting vendor transactions. When you finish the exercise, you must compare your results with the reports in the video. If you have different results, you must use what you learned to find and fix your mistakes. There are problem solving questions in the video. You must use your analytical skills and ability to think critically to answer the puzzle type of questions at the end of the video.

In this QuickBooks training video, you will learn how to record “basic deposits”. This is money that came in to the bank account from the owner or from customers. If the money came in from a customer, it would be better to record a sales receipt. This type of deposit will not record the quantity of the item you sold to the customer or the work hours you did. These deposits from customers will not show in the customer center or on sales reports. That is why it is better to use a sales receipt if you need either of those 2 things. I show this method to prepare you for the following video when the owner pay expenses directly with some of the cash he or she received from customers.

In this learn QuickBooks video, you will learn how to record deposits with cash back. This is a situation where the owner collects cash from a customer and does NOT deposit that money in to the company bank account. Instead, he / she uses that cash to pay expenses or withdraw for non-business reasons. 

In this learn QuickBooks video, you will create your own undeposited funds account. You will use “detail type” when creating the account. The detailed type in this current asset is undeposited funds. This account is where you record checks, cash and credit card swipes from customers. It will hold the customer’s money until you deposit the money in to your company bank account. 

In this learn QuickBooks video, you will learn how to edit a recorded deposit in QuickBooks online. The deposit detail report shows you the individual receipts and payments that were deposited with every deposit in the entire qbo account. This will help you edit the deposits and fix deposit related mistakes. That will be helpful when doing bank reconciliation.

In this QuickBooks online training tutorial, you will learn how to use the search tool. You can find any transaction or any list item by typing in to the search tool the data in the field you are looking for. You can use advanced search to find transactions with specific characteristics and search through everything in your QuickBooks online account instantly. When you see your results of your search displayed, you can filter the results and export to excel if you need to.

You will learn how to use the new advanced search feature in QuickBooks Online. It can help you find any transaction but can no longer search for data fields in list items. You can edit transactions from the search result list

This Learn QuickBooks Online video will show you how to record a refund receipt in QuickBooks Online. A refund receipt is what you would make if you are refunding a prior sale that was made with a sales receipt. It will have the exact opposite effect as the sale receipt does in the chart of accounts.

This Learn QuickBooks Online video training tutorial will show you how you can record a credit memo to a customer in QuickBooks Online. This will reduce the customer’s balance and you can apply the customer’s credit to any open invoice or retain as a credit to apply later.

This Learn QuickBooks Online video training tutorial will show you how you can record a refund that you will pay to your customer for an invoice that has already been paid. You can not make a refund receipt. You must instead make a credit memo and then write a check to pay the negative balance of the customer

This Learn QuickBooks Online video training tutorial will show you how you can record “pre-payments” or “advanced payments” from customers. This is sometimes called a customer deposit or down payment

This Learn QuickBooks Online video training tutorial will show you how to you the invoice deposit feature. This is something that you can activate in the company account settings and it will appear in the invoice window. You can record in to QuickBooks online the customer’s advanced payment and put the amount in the deposit field at the bottom of the invoice. The balance of the invoice stays on the open invoice report and the invoice can be printed to request final payment.

This Learn QuickBooks Online video training tutorial will explain the difference between “early pay discounts” and “qualifying sales discounts”. It will focus on the later and show you how you can set up a discount account. The account type should be “income” because it is a “contra income” account. The discount on the invoice or sales receipt must be a discount item that you set up with the items list.

This Learn QuickBooks Online video training tutorial will show how to set up terms on the terms list. The terms for early pay discount are the rules for an agreement. If the customer pays before the discount date then they will receive the early pay discount. The account that records the early pay discount is a “contra income” account. The discount on the invoice or sales receipt must be a discount item that you set up with the items list.

This Learn QuickBooks Online video training tutorial will show how to give customers the early pay discount. If discount terms were on an invoice, then the QuickBooks professional recording the payment must check the discount date and the invoice date and compare it to the day we received the customer payment to decide if the customer will receive the early pay discount. The discount amount is listed in the terms and the QuickBooks online invoice window can calculate the amount of the discount if discounts have been activated in the company account settings.

This Learn QuickBooks Online video training tutorial will show how to manage a customers bounced check. Sometimes customers or clients give us a check to deposit and the bank will return it as “not sufficient funds” if there is not enough money in the customer’s account to cover the check amount. We must the send an invoice to the customer to request reimbursement of the N.S.F check they gave us. The invoice we send should include an additional service fee for processing the bounced N.S.F check as well as the original amount of the bad check. The fee we charge our client should be more then the bank charges us for the bounced, bad N.S.F returned check.

This Learn QuickBooks Online video training tutorial will show how to manage, print and send customer statements. This is a legal document that we send our customers and clients every month to make sure that we agree with the details of what is owed and what is paid. The format of the customer statement can be a transaction list, open invoices or balance forward. If the open invoice report agrees with the customer and the customer does not notify us, we assume that we agree. If the customer does complain, we must reconcile with the customers to make sure the customer records and the customer balances are correct. We can send the statement via email or print and send in snail mail.

This Learn QuickBooks Online video training tutorial will show how to reconcile your customer records and customer reports with your client’s records to ensure accuracy. You must make sure that you agree with your customers regarding the individual customer transactions as well as the balance forward for every open invoice and the total balance itself. You must carefully check every transaction 1-by-1. If you have a difference, then you must call the customer or their bookkeeper and read off the transactions until you find the difference. The recommended report to read off to the client over the phone would be the transaction list by customer. Then either you or they can fix the QuickBooks online mistakes and make the data match.

This Learn QuickBooks Online video training tutorial will show how to find and fix customer’s misapplied payments. All the other mistakes in the customer records and on the customer reports can be fixed by reconciling with the customers the usual way. Comparing each transaction on the customer’s statements, one by one, will not help you find the misapplied payment. You must use what you learn in this QuickBooks instructional video to be able to find and fix this particular issue.

In this QuickBooks Online Training tutorial, you will learn how to use the delayed charges feature. A delayed charge is an event where money is earned, but the event is not yet ready to be placed on an invoice for billing the customer later. The transaction list by customer is the only report that will show delayed charges in QuickBooks online. They are recorded on separate documents that do not affect customers or account balances. They will only appear in the side panel of an invoice when you make an invoice for the customer that has delayed charges.

In this QuickBooks Online Training tutorial, you will learn how to use delayed credits A delayed credit is exactly the opposite of a delayed charges. They are recorded like any other QuickBooks online document. They are not transactions. They will only show up on the transaction list by vendor report. QuickBooks Online delayed credits can not be added to credit memos. They lower the amount of the invoice and can make the invoice balance become a negative number. Just like delayed charges in QuickBooks online, they will appear in the right panel when you make an invoice with the customer who has the delayed credit.

In this QuickBooks Online Training tutorial, you will learn how to write off an uncollectible account. The account is uncollectible if you have been notified that the customer is unable to pay. Once you determine you're not getting paid, you have to record a decrease to both the customer's balance and the accounts receivable account in the chart of accounts. At the moment you write off the customer's balance, you have a new expense called bad debt expense. And the bad debt expense increases by the amount of the customer's account that you just wrote off. After placing the bad debt expense account on the chart of accounts, you could either use the journal entry method or the credit item method to make a credit that will show up in the open invoice report, then apply that credit to the invoices that are uncollectible.

This Learn QuickBooks Online video training tutorial will show how to attach files to a transaction in QuickBooks Online. You can use the paper clip icon to attach a file the same way you would with an email. The file will upload to QBO and be viewable when you open the original transaction. You can see, manage and download all the file attachments that you have ever uploaded in the “attachments list” that you can open from the cog wheel.

This Learn QuickBooks Online video training tutorial will show how to Print checks from QuickBooks online. You must order the checks from QuickBooks Intuit and keep them in check number order. As you record the check, you leave the “to be printed” box checked. You will assign the check numbers only at the moment the check will print from QuickBooks online. That is when you open the “print checks” window. You can print to a PDF or an actual printer and then mail the check via snail mail to your vendor.

This Learn QuickBooks Online video training tutorial will show how to pay a vendor’s bill when there is a payment fee or payment processing fee when transferring the money to the vendor. Some QBO bookkeepers will ad the processing fee to the bill. The correct way to enter this is to add the processing fee as a separate bill with the same vendor name. This way, QuickBooks online can make 1 payment for the bill and the processing fee and the fee gets recorded on the proper date.

This Learn QuickBooks Online video training tutorial will show how to record receiving a refund from vendors for a prior check expense or cash payment where the vendor’s service was received, and payment was made immediately. Receiving a cash refund for these types of vendor transactions requires using the deposits window. The most important thing to remember is including in the QBO deposit the expense account of the service you originally paid for. The effect in the QuickBooks online chart of accounts and the vendor records and reports will be the opposite of the original vendor payment

This Learn QuickBooks Online video training tutorial will show how to record receiving credits from vendors for past bills that were entered in to QuickBooks online. You can receive a vendor credit memo that you can keep in your vendor records. They will show on the unpaid bills report until they are used and applied to past or future vendor bills. You can apply the vendor’s credit at the moment you pay a vendor’s bill from the pay bills window. When you apply a credit, the field to put the amount of credit will only show the total credit available and not the individual credit memos. If you apply less then the full amount of credit, then QuickBooks online will apply a proportional amount of each separate vendor credit to the bill you chose to apply the credit to. That’s a big difference in behavior from the QuickBooks desktop version.

This Learn QuickBooks Online video training tutorial will show how to record receiving a refund from vendors for a past vendor bill that has already been recorded as paid in QuickBooks online. A refund from a paid bill requires that you first make a credit memo the way we learned in the prior QuickBooks online instructional video. We learned how to enter and apply a credit memo. This time, we cannot apply the credit memo to the bill because it’s already paid. Instead, we have to record a check that increases the vendor’s balance and then apply the vendor’s credit memo to the check we received from the vendor. That will fix everything on the unpaid bills report. First we record the vendor’s refund check in the deposit window. Then, we can apply it to the credit memo that offsets the expense or asset account from the original vendor’s bill.

This Learn QuickBooks Online video training tutorial will show how to set up QuickBooks Online to be able to record all kinds of vendor discounts. A vendor could give a discount for several reasons. We could receive an “early pay” discount that would involve using vendor terms from the terms list to calculate and apply the vendor discount to a bill at the moment we make the bill payment. We would only get this discount type if we paid the bill with the vendor terms by the discount date stated on the bill. We can track vendor discounts sin a separate account and see the result on the profit and loss statement.

In this QuickBooks Online Training tutorial, you will learn how to record pre-payments, advanced payments, down payments and advanced payments to vendors for products or services that we will receive after payment has been given to the vendor. You need to write a check and include accounts payable as the account category in the check. This will cause vendors balance to be negative until the service or product is received from the vendor. Then, when finally received, we enter a vendor’s bill in to QuickBooks online to offset the check for the advanced payment. We use the QuickBooks online unpaid bill report to see that the prepaid expense check has been applied to the vendors bill

In this QuickBooks Online Training tutorial, you will learn how to reconcile your vendor and account’s payable records with the monthly vendor statements that you receive from vendors. To prove your vendor and accounts payable records are accurate, you must match the transactions on the vendor report with the monthly statement that you receive rom the vendor. The 2 vendor and accounts payable reports that you will use to compare transactions with are: the “unpaid bills” report and the “transaction list by vendor” report. If you carefully reconcile on the phone comparing 1-by-1 each transaction, you will be mostly correct. To get accurate payable records, you also must make sure you do not have a misapplied bill payment. The only way to determine this is to compare the unpaid bill amounts from the vendor’s statement to the unpaid bills report. Once you find the payment that was applied to the wrong bill, you can fix it by opening each bill payment and reapplying the vendor payment to the correct unpaid bill.

In this QuickBooks Online Training tutorial, you will practice all the advanced accounts receivable, accounts payable transactions that you have learned in this QuickBooks Online Advanced Playlist. This will determine how much you understood and remembered about your advanced QuickBooks online playlist course. You should compare your results in your QuickBooks online account with the results I n the practice QuickBooks video to make sure you have the same money amounts both before and after the exercise practice set.

This QuickBooks Online Crash Course Training Tutorial will show you how to use the register windows in QuickBooks Online. All “balance sheet” type of accounts account in the chart of accounts can be opened in a register window. The bookkeeper using QuickBooks online will be able to enter any transaction that you could record into the account as a direct entry to that account. It is mostly a short cut to the “make deposit window” and the “checks” or “expenses” window. It was designed to look like the old register checkbooks that people used to use to keep track of their bank and credit card balances. It makes entering bank transactions more manageable and gives you the ability to adjust the account balances from the same window that you can see the list of transactions in the account. You can see all the transaction that have been entered into an account as well as enter a transaction and see the running balance of the account, all from the same window.

In this QuickBooks Online Training tutorial, you will see how to use prepare your QuickBooks Online account to be able to charge company expenses with the company credit card. You must first put in to the chart of accounts an account that is a “credit card type” of account. You must enter the charges as they happen and save the credit card slip that comes from the machine at the moment you charge. That’s the proper way to record credit card charges in QuickBooks Online. You should save the slip to help you reconcile your credit card account in the bank reconciliation coming later. You should not wait until you get your credit card statement to enter the charges from. That would be like asking the fox to guard the henhouse. You must sacrifice the time to enter them 1-by1 from the slips as you charge and then compare you company credit card records to the credit card statement when you do credit card reconciliation.

In this QuickBooks Online Training tutorial, you will learn how to record credit card transactions in to QuickBooks online. Credit card charges are entered in the “expense” window of QuickBooks online. Simply open the QuickBooks online expense tab and then choose the credit card account that you made the business-related charge with and record the rest of the credit card transaction in to QuickBooks online. Credit card payments have their own window in the QuickBooks online new transaction menu form the new plus sign in the top right. Credit card credits have their own window in the QuickBooks online own transaction menu. Credit card payments in QuickBooks online have their own credit card payment window to record transaction where the credit card balance is paid down.

In this QuickBooks Online Training tutorial, you will learn all about journal entries. You do not need to understand debits and credits to be able to make journal entry transactions in to QuickBooks online. Journal entries are a way of recording transactions that are uncommon and do not have a usual document that records the transaction (i.e. invoice or check) It is the only way to make changes to account balances in the general ledger without changing any other area of data.

In this QuickBooks Online Training tutorial, you will learn how to record transactions where the owner invests cash or withdraws cash to or from the business. If the owner puts cash in to the business, you can use the deposit window and record it in to owner’s capital investment. If the owner takes cash out of the business, you can use the checks window or the expense window and record it in to owner’s withdrawals. This is true even if the owner goes to the A.T.M machine to withdraw company cash.

In this QuickBooks Online video lesson, you will learn how to record transactions where the owner invests cash or withdraws non-cash assets in to or takes out of, the business. When the owner brings things like equipment or supplies to the business, it gets recorded in the owner’s capital investment account. If the owner takes home equipment, furniture or supplies, it will be recorded in to the owner’s withdrawals account. Those 2 equity accounts should be changed in the make journal entries window. It’s the only proper way to record equity transactions with non-cash assets.

In this QuickBooks Online video lesson, you will learn how to record transactions where the owner invests cash or withdraws non-cash assets in to or takes out of, the business. When the owner brings things like equipment or supplies to the business, it gets recorded in the owner’s capital investment account. If the owner takes home equipment, furniture or supplies, it will be recorded in to the owner’s withdrawals account. Those 2 equity accounts should be changed in the make journal entries window. It’s the only proper way to record equity transactions with non-cash assets.

In this QuickBooks Online learning video class, you will learn how to record transactions where the owner pays business expenses with non-business, personal funds. If an owner co-mingles funds in this way, it means they are using their non-business, personal bank account, credit card account or pocket cash to pay for expenses and items used for the business entity that they own. If an owner does pay some business expenses in this way, it is the same thing as investing money in to the business. So, instead of investing cash in to the business bank account and then paying the business expense, the owner s simply skipping a step and paying the expense for business directly form the personal account or cash on hand in the house, not the office. You will record this in to the owner’s capital account exactly as if she / he gave the money directly to the business. You could use the register window or journal entry to record this type of owner’s equity transaction.

In this QuickBooks Online learning video, you will test your advanced QuickBooks online skills. This QBO practice exercise set will allow you to try inputting transactions for credit cards and journal entries the way that we learned in this course. This will help you determine your QuickBooks online skill level. You will gain a sense of how much QuickBooks online knowledge you remembered and understood. You can pause the video to check your results or do the data entry slowly and compare what you have to the QuickBooks online report results in this video. If you have any differences, you must use your QuickBooks Online advanced skills to find and fix your mistakes.

What Is Bank Reconciliation? This QuickBooks Instructional training video will explain exactly what the bank reconciliation process is and what it does for you and your company. The bank reconciliation feature is a self-checking tool that allow you to find and fix any QuickBooks mistake you may have made during the month when entering bank transactions. Even recording credit card transactions can be cleaned up with credit card reconciliation because it is the exact same process of reconciling the bank account in both QuickBooks desktop and reconciling in QuickBooks online. It does not fix everything but, it is a job skill that will always help you and the ideas, principles and concepts of doing a bank reconciliation will be explained here. It is the first in the series of bank rec QuickBooks videos classes that will make you an expert in QuickBooks and Q.B.O. The bank rec process will show prove that MOST of your QuickBooks online records and financial transactions are correct to the last detail. This QuickBooks video will show what specifically is proved correct and how it does it. The principals apply to any company anywhere even if you are not using your computer for account and financial record keeping.

What is the cleared balance when doing bank reconciliation in QuickBooks desktop or QuickBooks online? It is the balance of all your QuickBooks bank transactions that you have marked as cleared in your QuickBooks records. The bank reconciliation process only compared the cleared balance, the balance of the ones’ you check marked as cleared in the bank reconciliation window, will be compared to the statement balance. It’s normal to have uncleared transactions in QuickBooks that are not yet on the bank statement. They will usually clear in a following month. That’s why you only compare the cleared balance to the statement balance. This video shows how that relates to your bank reconciliation clean up process.

In This QuickBooks Online Video lesson, you will be introduced to all the steps necessary to complete the very first month’s bank reconciliation in a company that started using the bank account about the same time that QuickBooks Online account had been created and started up. You will see how to navigate the reconciliation window in QuickBooks online. You will experience each part of the first bank rec step by step. You will see how to pass the first window that asks for monthly service charge and interest if it is listed separately. You will mark each transaction as cleared and see the difference between the QuickBooks online bank account cleared balance and the bank statement ending balance become zero. Then you will have done your first successful bank reconciliation. You will then see the 2 bank reconciliation reports that QuickBooks online makes after each bank reconciliation. There are both summary and detail reports.

In This QuickBooks Online Video lesson, you will learn how to access and understand bank reconciliation reports.

In This QuickBooks Online Video lesson, you will be experiencing the second consecutive month doing bank reconciliation in QuickBooks online. The important things to notice are that the ending statement balance of last month will be the beginning statement balance of this month. The other important thing about the next month’s bank rec is that any outstanding checks from last month’s bank rec should show on this month’s statement as cleared. Therefore, you will mark them clear during this second month of bank reconciliation. The same is true for any deposits in transit from last month that cleared this month’s bank reconciliation.

In This QuickBooks Online Video training tutorial, you will learn about and use the QuickBooks Online Bank Reconciliation discrepancy report. This report will show every change to any transaction that has already been cleared and reconciled in a prior month’s bank reconciliation. You will know that there has been a change to a past transaction if the reconciliation window shows a beginning balance different from the statement beginning balance. You cannot reconcile this current month if the beginning balances do not match. If this happens, you will have to use the reconciliation discrepancy report to identify all the changes that have been made to cleared transactions since the last bank reconciliation was done. This report will show you everything that has been added, edited or removed from the cleared balance. It will give you the ability to undo and fix all of these changes right from the report window. Then you can go and reconcile normally.

In This QuickBooks Online Video class, you will learn and experience all the common bank reconciliation mistakes that someone could make when doing bank reconciliation in QuickBooks online. You will practice finding and fixing all of the mistakes a bookkeeper could make during the month that would be caught with the bank rec process. Things like: duplicate transactions, missing transactions and transposed numbers are errors that bank reconciliation was designed to find and fix.

In This QuickBooks Online Video tutorial, you will learn when it is appropriate to adjust a bank reconciliation to make it fit and match. The only time it’s appropriate to adjust the bank rec is the first month you do bank reconciliation. That’s because sometimes it’s not possible to know the “book” balance or what the book balance would have been at the beginning because you did not start reconciling at the moment you started using the bank account in QuickBooks Online. In fact, it’s actually called a “beginning balance” adjustment for people to know that you should only adjust to make the beginning balance correct because you only found out what the beginning balance really was after several months of outstanding checks clearing the bank account. Sometimes, you can get away with adjusting the bank rec if the difference is immaterial; but you cannot make that judgement without consulting your accountant

In This QuickBooks Online Video tutorial, you will learn how to undo a bank reconciliation. Anybody can mess up or screw up a bank rec. If you do not match numbers with the cleared balance and statement balance and force an adjustment, then you must undo the reconciliation and try again. You can only undo a reconciliation if you are logged in as an accountant user or if you are already using the accountant’s edition of QuickBooks online. When you undo a reconciliation, it will only unclear any transaction marked as cleared and remove any adjustment that was made for that reconciliation.

First time reconciling your QuickBooks records? Never input a beginning bank balance? Been using the account for years? This is the most common issue and challenge with the very first month’s bank reconciliation. You did not know what the book balance was when you started reconciling. You knew the bank statement balance at the start and finish of the month, but if you never input a starting balance in your bank account, then you will not have your cleared balance equal to the bank statement balance. You must adjust your QuickBooks records to input what the beginning book balance was for the first month you are reconciling.

If you want accurate records in your QuickBooks bookkeeping, you need to know how to make financial books and records correct. There are several features in QuickBooks and in QuickBooks online that give you the ability to make your QuickBooks numbers accurate and make your financial record keeping balances correct to the last detail.

In This QuickBooks Online Training Video, You will learn the last part of proving all records are correct: Reclassifying expenses to the correct category. The is the only piece of data not verified by an independent source. You can run special reports or use the accountant’s toolbox with the “reclassify transaction” tool to put all expenses in to the proper expense account.

In This QuickBooks Online Training Video, you will learn about account settings and how they effect your usage of QuickBooks Online. Settings are the: “options”, “defaults” or “preferences” that make the QuickBooks Online Plus account behave the way you need it to as a contractor. We will adjust the specific settings that contractors would need. This will activate features that were not activated before the settings were changed and we need several of these as contractors.

In This QuickBooks Online tutorial lesson, you will learn how to customize and save the most important contractors reports from that QuickBooks Online makes available for contractors. These are reports that help contractors manage jobs from start to finish. After customizing them to fit the way a contractor would need, you will “save customization” so you can quickly access these reports from the “custom reports” tab. Then you can see each phase and area of job information. The reports that you will customize in this QuickBooks training video are: The Trial balance, Estimates and Invoicing Progress by customer, Open Invoice, transaction list by customer, profit and loss by customer, unbilled charges, unbilled time activities and uninvoiced time.

In This QuickBooks Online tutorial lesson, you will learn how to input customer and vendor information such as their name, address, phone number and email into Quickbooks Online. You will need to choose customer and vendor names from drop down menus later in this course.

In This QuickBooks Online tutorial lesson, you will learn about the projects window. The Projects window in QuickBooks Online is a window that puts together everything you need for your projects all in one place. It gives you the ability to separate the income and expenses per project if they're under the same client. This way, you can run reports that show the profitability of only the individual jobs without mixing them together under the same client and find out how much a specific project is actually making.

In This QuickBooks Online tutorial lesson, you will learn about the chart of accounts that a professional contractor would need. QuickBooks Online plus version already comes with a chart of accounts. You can modify the accounts in the account list to add, edit or remove any account. You can make accounts inactive and change the account type. Account type in QuickBooks Online will be explained here. There is a small discussion of “detail type”, but that is usually not relevant to how the account will behave.

In This QuickBooks Online tutorial lesson, you will learn how to manage the ‘items list” This is the list of products and services that you technically “sell” to your clients when you make a contract and execute the contract over time. These services are “connected” to an income account so that when you list these services on an invoice, the proper income account increases, and you can track your income from the different services and products that you sell to your clients. These items are listed on the job estimate and then copied to each invoice as the work is completed over time.

In this QuickBooks Online contractor training class, you will learn how to record job estimates in QuickBooks Online. These estimates are documents you make that reflect the specific services that you will perform for your client during the life of the contract. It will list the items on the products and services list that we set up in a prior video. The money amount of the estimate total should be the same as the total of the signed contract. You will make invoices from this estimate as the “base” of the progress percent complete. To check the progress of the main job contract estimate against the invoices that you billed to the client during the contract, you should check the report called “Estimates And Progress invoicing summary by customer” report. Please note, estimates are not technically transactions, they are simply documents that record the details of the contract event and help you track the percent complete of a contract based on the invoices that have been applied to the estimate.

In this QuickBooks Online contractor Video lesson, you will learn how to record invoices to bill the clients for work done on the jobs we do. The invoice is taken as a part of the estimate that we created in the prior video. By making the invoice in this way, we are able to see the progress of the job completion as well as making sure that the same items on the invoice are on the original estimate. These invoices will cause the client’s balance to increase and also record income earned in the chart of accounts and show on the trial balance. The report that shows the progress of the jobs based on the recorded invoices is the “Estimates And progress Invoicing Summary By Customer”. The best report to show the client’s balance as well as the remainder of each unpaid invoice is the open invoice report.

In this QuickBooks Online contractor training tutorial, you will learn how to record payments that you receive from clients for the job-related invoices that you have already billed them for. Usually payments from clients are applied to the oldest invoices first. They will decrease the balance of the client’s money owed for a job. The best report to see the invoices and the balance of the client is the open invoice report. This will sow the remaining amount unpaid of any invoice that the client has not paid. However, you can see all transactions in date order of any client by using the “transaction list by customer” report.

In this QuickBooks Online contractor instructional lesson, we will discuss the options on how to record advanced payments, pre-payments and job deposits on contracts. There are 2 main methods. There’s the “credit memo” method and the “Job deposit” method. Each method has good and bad attributes and this video explains the “pros” and “cons” of both methods and gives you an overview of what happens when you use them. You will set up estimates and jobs to prepare for both methods in upcoming videos.

In this QuickBooks Online contractor video class, you will learn how to use the invoice deposit feature. This feature gives you the ability to record a job deposit received from a client when you record your fist job invoice for the project. This feature must be activated in the account settings window. It will add a field to the invoice window specifically for the amount of the deposit received from the client at the moment you create the invoice. Usually, this feature is used when there is only 1 job invoice for the whole client project. The important thing to note, is that your income accounts, receivable account and client’s balance will not be accurate until the job is complete. That’s because you must record the invoice, which increases income accounts and customer’s receivable accounts, before you start work on the job. The numbers all become correct when the work on the job is done. You would then re-print the invoice and give it to the client to request final payment from your customer.

In this QuickBooks Online contractor training tutorial, you will learn how to track income and expenses by job. Income by job is tracked as invoices are made for clients and specific jobs. However, in order to track expenses by job to determine profit for each job, you must make sure that you put the name of the client’s job in the “customer” field of the check, expense or bill. I order to have the “customer” field appear in these 3 transaction types, you must activate “track expenses by job” in the account settings window the way that we did in the set-up video when we learned about account settings. The most important report that shows the income, expenses and profit for each job is the “profit and loss by customer” report.

In this QuickBooks Online contractor training tutorial, you will learn how to use the budget by job feature. It remembers the amounts of each expense or other accounts that you input into the data sheet as the budgeted amounts. Then, after putting in the budgeted amounts, simply run the report called budget versus actual and you will see all the differences between the budgeted amounts and the actual transactions. The most important thing you need to know about running budgets is that you can change any budgeted amount or any actual transaction amount at any time, and the budget versus actual report will reflect the change immediately.

In this QuickBooks Online contractor video tutorial, you will learn how to make billable expenses become a reduction of your own expense at the moment you bill the client for the job cost that you paid for. If you pay for a job cost or expense, then at that moment that is YOUR expense or cost. However, if the client then reimburses you, at that moment, you no longer have that expense, the client does because you have increased their balance and added it to a job invoice. Therefore, at the moment you bill the client, you expenses go down for the amount that you just billed the client for. You can make this happen if you change the default settings in the account settings or company settings window.

In this QuickBooks Online contractor instructional class, you will learn how to bill clients for specific items and expenses that the customer has agreed to pay for upon signing the job’s contract. It is common for clients to agree to pay the contractor’s fee along with project related expenses. The way to add these expenses and costs to the job-related invoices is to mark them as “billable” to the customer or job that you add to the customer field on a check, bill or expense type of transaction. We learned how to add the customer or job to these transactions in the prior video. We will do the same thing here and add 1 step; click the checkmark in the billable box next to the customer’s name. This will allow us to see the transaction we marked as billable in the right panel whenever wo go to make another invoice for that customer’s job. Then, we can just add the transaction to the invoice and the client can see the exact transaction they are getting billed for. If you record an expense type of transaction marked as billable, it will immediately show on the unbilled cost reports. It will stay there until placed on an invoice. The only way that any of this is possible would be if, at the beginning, you changed the account settings to activate the billable option feature.

In this QuickBooks Online contractor training class, you will learn how to track income from billable expenses. When clients reimburse you, you could track this money as income. If you do, QuickBooks online by default, will track income from this client’s reimbursement from a default income account called “billable expense income”. However, if you want to track this billable expense income in to a different income account, you must create the income accounts you want to use and then change the defaults and settings in the account settings or company settings window. If the options in the settings window are changed to “in multiple accounts” then you can record the reimbursement transaction the same way you did in the prior video. You must re-open the new income account that you created and tell QuickBooks online which income account the income will be tracked in when billing the client for that specific expense. The report that will show before billing is the “unbilled expense” report until the item is placed on an invoice. Then, it will show up in the “profit and loss by customer” report in the income account you chose.

In this QuickBooks Online contractor training class, you will learn how to resolve billing issues by using the description field. When you record any check expense or bill, you have to make extensive use of the description field because the description field is the only field of information that actually flows through from the expense to the final invoice that you place the expense on. It allows us to find a bill if we're looking at an invoice and find the corresponding invoice if we're looking at a bill. Always put something in the description field of the expense or check that is somewhat unique, that identifies what the expense was for.

Expense Items in QuickBooks Online, are items that get input into the QuickBooks Online list of products and services. Prior contractor items on this list were only “connected” to an income account. However, QuickBooks online allows you to make special items on this list to connect to both an income and expense account. We call this a “2-sided item” on the list of products and services. The reason for this special items type, is to be able to give more details to the client when billing them for reimbursable job expenses. The additional difference between this method of client billables and the prior methods shown, is that this is not affected by any settings in the account settings window. In other words, in the prior billing method, either income would increase OR expenses would decrease at the moment you would bill for an item that you previously purchased for that job. However, if you use expense items, and in this case 2-sided expense items, then when you bill, the income account goes up no matter what you put as the preferences and the accounts settings window.

This Quickbooks video gives an overview of the actions you can take in the Quickbooks online bank feeds center.When you set-up bank feeds in QuickBooks online, you must connect your QBO account to the bank account by logging in to the bank through QuickBooks online banking center. After you input your credentials, the bank transactions will download and be imported into the QuickBooks online review list in the banking center. The remaining videos in this playlist will show you how to review, enter and match or even remove and delete transactions from the review list. This is just the start of the bank feeds and importing transactions playlist. In this Quickbooks training tutorial, you will learn how to set up bank feeds for Quickbooks online. You will see how you can connect to chase bank or PayPal or other institutions for free. After you connect, you will see how to navigate through the bank feeds review list.

How to record from the QuickBooks Online Review List the transactions that were downloaded from the bank account? This QuickBooks online training tutorial will show you how to navigate the review list and add and add transactions after approving transactions from the bank feeds banking center Q.B.O. downloaded review list.

After importing the bank data into QuickBooks Online, you need to go through the review list slowly and enter from the review list any transaction that you agree is legitimate and not a bank mistake. QuickBooks online will suggest the account category but, only you know what the check or deposit was really for. If you think some downloaded transaction is a bank mistake or you have already entered it yourself, then you will click “exclude” instead of “add”. If you click the quick add option, it will add to QuickBooks Online the selected transaction and change the report numbers accordingly.

In this QuickBooks training tutorial, you will learn how to match transactions from the QuickBooks online bank feeds center. Matching a transaction from the QBO bank feeds review list will simply take it out of the review list. There will be no other effect besides removal from the review list. It will be the same result as excluding a transaction from the review list. This ensures that you do not double count or duplicate a transaction that has already been entered.

What are the rules for auto enter transactions in QuickBooks Online? The QuickBooks Online banking center gives you the ability to create rules that will automatically enter the downloaded bank transactions and record them in your QuickBooks online records. You need to create the rules in the rules list window. Then, you have to set-up the QuickBooks rules by telling QuickBooks what account goes into the account field of the downloaded transactions that you want to enter into QuickBooks Online from the bank feeds review list.

In this QuickBooks training tutorial, you will learn how to clean out your account and prepare it to enter new data in the following video practice exercise.

In this QuickBooks training tutorial, you will learn how to change the settings so that you can track your expenses by customer or by job, right from the bank feed center.

The bank feeds center you can make rules adding class and make rules adding jobs to your downloaded banking transactions. If display advanced mode and change the bank feeds defaults in the preferences window, then you can open the bank feeds center in advanced mode. Then create advanced rules that allow you to put customer/job in a rule and even put class in a rule in addition to what you could do with express mode rules like input account category and input vendor automatically.

In this QuickBooks training tutorial, you will learn how to disconnect a bank account from the review list. Your bank account is connected to the review list after the very first time you either imported or downloaded any transactions into that particular account when using the review list and the bank feed center. Now, the problem with that is that once you've categorized transactions, they will remain on the categorized list forever. This means that any time in the future, you can undo a transaction, as long as they're still listed there, and that condition may be a problem for you in the future. You see, that condition will remain forever until you actually disconnect the account from the review list. Because someone may accidentally undo the transactions that were already reconciled or already recorded in a closed past accounting period. That's why you may at some point need to disconnect the account from the review list so they will disappear and you will not be at risk. You will automatically be reconnected as soon as you import new transactions.

If you combine two things that we learned in this course, downloading your transactions from the bank, combined with the rules that we learned about, allows 90% of companies to do 90% of their bookkeeping in 90s a day. You can download in just one simple click all of the transactions that were not yet downloaded, and if you set up rules, that means that the rules will immediately classify the data you entered, and then as soon as they're entered into the review list, they will be put into QuickBooks online. So you connect directly to the bank. The transactions immediately come from the bank into the review list and only the ones that were not yet downloaded. And then as soon as they get into the review list, the rules immediately put them into QuickBooks online reports and records. So in a blink of an eye, you have done most of your bookkeeping here.

In this QuickBooks Online Inventory training class, you will receive an overview of the QuickBooks online inventory playlist and what to expect in this free, mini course. The 2 videos that follow this one separately shows 2 different ways to get a new blank, empty QuickBooks online account for free. You could use the free, accountant’s edition or sign up for the free-for-30-days plus version of QuickBooks Online. Then you can follow along step-by-step and master every possible transaction, situation or idea that relates to using QuickBooks Online for inventory management.

In this QuickBooks Online Inventory training class, you will learn how to set up your QuickBooks online account for this QuickBooks Online Inventory Course. You will follow entering customers, vendors, setting up reports and changing the account settings for this particular example company.

In this QuickBooks Online Inventory training class, you will the reason for, as well as how to use, non-inventory parts. These are items that go on the same products and services list in QuickBooks online that your actual merchandise inventory would go on. The only difference from a record keeping and bookkeeping perspective is that these “2 sided items” do not have their quantity tracked in QuickBooks online. Mostly everything else about 2 sided items and non-inventory parts are the same when recording sales and purchases for these goods. Usually, these are things that you would use as part of a job like “supplies” or something that you use to enhance the service that you may or may not bill your client for. They have both an “income” type of account to record the sales price and an “expense” type of account to record the cost of purchases of these items. When putting them on a purchase document, like a bill or a check, the purchase cost you set up will appear. However, when putting them on a sales document like an invoice or sales receipt, the sales price you set up for that item in the items list will appear on the document. You can input the quantity when buying and selling just to help calculate the money amount of the transaction, but the accumulated running quantity on hand will not be saved in any reports.

In this QuickBooks Online Inventory learning session, you will see how to “activate” inventory parts in QuickBooks Online. This means turning on the inventory track quantities in the account settings window or the company settings window, depending on what subscription level of Q.B.O. you have. Once you change this setting, QuickBooks Online will add inventory features and inventory reports to your existing QuickBooks online account. The reports will show the tracked merchandise inventory quantity of each purchase, sale and return of goods as well as the running quantity on hand. Activating this option will allow QuickBooks Online to add inventory parts to this products and services list and add more options to the New transaction plus sign menu specifically for inventory.

In this QuickBooks Online Inventory learning session, you will learn how to record purchasing merchandise for cash or any other immediate payment method for buying your goods for resale. When you pay to purchase new merchandise, your bank account decreases, and the inventory asset account increases by the purchase cost of the new goods you just bought. If you wrote a check, you could use the checks window or if you paid online, you could us ether expense window from the QuickBooks online interface. The quantity of the items purchased will increase and you will see that increase on the inventory valuation detail. You will see the quantity on hand increase after each purchase.

In this QuickBooks Online Inventory learning session, you will learn how to record purchasing merchandise “on account”. This means that we buy the merchandise and pay after the goods are received. When you pay to purchase new merchandise when the customer pays later, the account that records the future payment is accounts payable. This account is a current liability and it will increase when you purchase merchandise inventory from a vendor whom you will pay after the goods are received. Just like any other purchase of inventory, the inventory asset account increases by the purchase cost of the new goods you just bought. The quantity on hand of the inventory item still increase after each purchase and you will see this change on the inventory valuation detail report as soon as you enter the vendor’s bill for the merchandise inventory that was shipped to you from the vendor.

There are 4 accounts that you must debit and credit to record selling merchandise when you use the perpetual inventory system. You can see your gross profit from the T accounts You will quickly and easily understand the most important accounting ideas from this, perfect, easy to understand playlist. Users of Accounting Software should be able to make journal entries themselves. This course will give you the ability to do that. You will properly learn the appropriate accounting vocabulary. Then, you will see how our accounting system started with the fundamental accounting equation. This playlist will finally get a clear explanation for the ideas of debits and credits. We will practice them together before learning about the general journal and the accounting cycle. For merchandise companies, I provided an explanation of Inventory Valuation, Inventory Adjustment and Cost Of Goods Sold. You will enjoy the presentation about Account Adjustments, Closing Entries and distributing partnership income. I even included the calculation of early pay “cash” discounts as well as interest and mortgage calculations. The teaching and learning methods of accounting have been extremely successful regarding student passing rate and job placement.

In this QuickBooks Online Inventory learning session, you will learn how to record sales of your merchandise inventory when the customer pays cash or gives some kind of immediate payment. If the customer pays up front, the correct transaction document to make for the sale of your goods is a sales receipt. When you list your products on the sales receipt, QuickBooks online will credit the sales price to the sales income account and calculate the cost of goods sold for that sale based on your purchase cost of the goods that you sold and listed on the sales receipt. The cost of goods sold account will increase by the purchase cost of the goods on the receipt that were part of the merchandise sale.

In this learn QuickBooks Online Inventory training class, you will learn how to record sales of your merchandise inventory when the customer pays for the merchandise you sell after the day of the sale. This could be called a “credit sale” or a “sale on account”. When this happens, the proper transaction document is an invoice. Creating an invoice for a client for selling your goods will both increase the customer’s balance a well as decrease the quantity on hand for the item that you are selling. The income from the sale will be recorded as the sales price increasing the sales income account. The cost of the sale for what you originally paid for the goods will be recorded in to the cost of goods sold account as the original purchase cost is removed from the inventory asset account.

In this learn QuickBooks Online Inventory instructional class, you will learn how to record returns of merchandise from customers from cash sales that had sales receipts. The way to record this is to make a “refund receipt”. This is a document that records the return of merchandise and the giving of a refund to a customer who paid cash for the items that they purchased. It is very simple to make a refund receipt; it is exactly the same as making a sales receipt, but it simply has the opposite effect in QuickBooks online records and data. You MUST put the exact same inventory items on the refund receipt as were on the original sales receipt. This way: the quantity of the goods will increase for what was returned, the sales income for the products returned will decrease by the original sales price and the cost of goods sold will also decrease by the purchase cost of the goods returned. Of course, your cash will also decrease for what you refund ack to the client.

In this learn QuickBooks Online Inventory training lesson, you will learn how to record returns of merchandise from customers who pay by credit where the original sale was recorded on a sales invoice. The proper accounting procedure would be to make a credit memo for the goods that were returned from the customer. This credit memo has the exact opposite effect of the invoice. That’s what you need to record, and you must put the retuned items on the credit memo exactly the way you did in the original invoice. This will reduce the customer’s balance to the appropriate amount. The credit memo must then be applied to the original invoice in the sale. The way to do that is to us the receive payments window to record a “zero-dollar payment”. This will be a separate transaction with an amount of zero. What this does do, however, is “apply” the credit memo to the invoice. This extra step allows you to see the remaining balances of specific invoices after the credit has been applied.

In this learn QuickBooks Online Inventory video tutorial, you will learn how to record returns of merchandise from your company to the vendor whom you purchased your products from in the first place. Any prior purchase made “on account”, by recording a vendor bill, requires a “vendor credit” be created to reverse the effects of the original purchase. A vendor credit decreases the vendor’s balance and also decreases the quantity on and off merchandise. Your count for your goods available goes down because you are giving back merchandise to the vendor so therefore you have less on hand. The vendor credit must be applied to the original vendor’s bill that you entered when you recorded the purchase. The effect of the credit will be the exact opposite of what the effect of the bill was if you assume that you put the exact same items on the credit as was on the bill. The vendor credit must then be “applied” to the original bill by making a “zero-dollar” payment. This is because the “pay bills” window is the only window that allows you to apply vendor credits to vendor bills. Just like you can check the quantity on hand via the “inventory valuation detail” report, you can check the vendor’s bills you owe and see if the credit was applied correctly by looking at the “unpaid bills detail” report.

In this learn QuickBooks Online Inventory training tutorial, you will learn how to record returns of merchandise to a vendor where the original purchase was made for cash. These cash purchases have a special purchase returns procedure to record. You still need to make a vendor credit for that return. You will see that when you make the deposit in the deposits window for the vendor refund check. This purchase return refund amount will show up as a positive amount in the vendor’s balance. The credit memo you made is like a refund receipt to the vendor. The negative amount of the credit memo and the positive amount from the refund that you deposited will “zero out” the vendor’s balance if you use the pay bills window to do this. You need to make a “zero-dollar” payment on the day of the return and then check the unpaid bills report to be sure that the deposit check from the purchase return was applied properly to the vendor’s credit. Of course, the balance and quantity on hand of your inventory will go down for what was given back to the vendor.

In this learn QuickBooks Online Inventory video class, you will learn how to record and manage purchase orders to vendors. Purchase orders are NOT transactions. They simply request the merchandise from the vendor. You must activate purchase orders in the account settings or company settings window. After you activate purchase orders, you will have purchase order related reports and the ability to record purchase orders. These purchase order documents are not transactions. They will not effect your financial balances anywhere until the order is received. The only reports that they will show up on are: open purchase order detail”, open purchase order list and transaction list by vendor. They will not appear in any other report. When the order is received, the quantity of goods on hand increases and the purchase order will disappear from the open purchase order report. If the order is only partially filled because the delivery from the vendor only included some of the requested product, then the order will remain on the open purchase order report. These “back order” items will be received later and close the purchase order to remove it from the report.

In this learn QuickBooks Online Inventory course section, you will learn how to adjust inventory quantity on hand for special, rare or unusual situations. Normally, the quantity on hand of your merchandise will only change when you have a: sale, purchase or return. However, sometimes the physical count of inventory will change for things like: theft, casualty loss, spoilage, obsolescence or stupidity. You could even gain goods that you can make available for sale If you find or even if someone donates to you the product you sell. When you adjust inventory, the quantity will change in the inventory valuation detail report. The inventory asset account will change and the “balancing entry” for the other account that would change when adjusting inventory is called an “adjustment account”. It is usually an “other income” or “other expense” type of an account. This mean it will affect your net income but not your normal operating net income.

In this learn QuickBooks Online Inventory training tutorial, you will learn how deal with prepaid inventory. Any time you purchase merchandise and pay more than just a few days in advance before receiving the goods. If you pay very early, the account that represents your pre-paid inventory should be separate from the normal inventory asset account. It is also a current asset. However, since NO accounting program has a feature that tracks specifically, pre-paid inventory, you must do the “work around” shown in this video in order to track the prepaid inventory details in Quickbooks Online. This involves making an account for prepaid inventory. To make this work, the prepaid account must be a “bank” type of account. This is because this ‘work around” will use the “checks window” or the “expenses window to transfer the inventory from prepaid to inventory asset upon receiving the goods. The quantity on hand of your products should NOT increase until the items are physically received and available for sale to the customer. Since the inventory asset account is matched with the “inventory valuation detail” report for quantities of each item of goods, the prepaid inventory account has no separate report that shows quantities and individual item values. You MUST use the Memo field of the account to record item details. This is the closest any accounting program can come to managing details of purchased merchandise before receiving the items. For refunds, use the deposit window exactly the way you used the checks window when recording prepaid inventory transactions. This very special method that I invented for my clients in the late 1990’s will work best. I hope it’s ok, therefore, to call it the Mark Smolen method of prepaid inventory.

In this learn QuickBooks Online Inventory training tutorial, you will learn how QuickBooks Online manages changing purchase costs for identical items that you buy and sell. If the same item is purchased by you more than once with the same purchase cost, then QuickBooks online needs to calculate a cost-per-unit in order to determine the cost of goods sold when the items are eventually sold. Of the 3 common inventory valuation methods, QuickBooks DESKTOP (not this) uses the “weighted average” method. However, our QuickBooks Online uses the “First In First Out” method (F.I.F.O) (FIFO) method of inventory valuation and ultimately calculating the cost of the inventory on hand for the “inventory asset” account as well as finding the goods sold for each sale.

This Amazon Learn QuickBooks lesson explains how the “periodic inventory system” works for your Amazon Online Store. Since you cannot keep a continues running count of the quantity of your merchandise as it comes in and goes out, you must use the periodic inventory system. This system requires that you physically count and value your inventory on hand at the end of each month. You must find the amount that you paid for the inventory on hand each month. Then, you will have to make 3 adjusting entries to properly calculate the cost of goods sold. That’s what you paid for the goods you sold the customer. Then, you will subtract that from your gross sales to find your gross profit from selling merchandise.

This Amazon Learn QuickBooks Online training class will Show you how to make the monthly inventory adjustment to find the cost of goods sold. You must properly calculate the cost of goods sold in order to find your gross profit and net income. The calculation and adjustment comes from the standard monthly adjustment procedures of a merchant seller or store that uses the periodic inventory system. If you follow these steps, your profit and loss will always be correct every time.