QuickBooks Pro Plus desktop 2020 to company preferences, jobs and estimates, multiple currencies, payments and payroll Get ready because we bookkeeping pros are moving up the hill top with QuickBooks Pro desktop 2022. Here we are on the desktop we got our QuickBooks software icon on the left hand side we’ve got our company file get great guitars we set up in a prior presentation on the right, we’re going to open them up by double clicking the software icon which should then open up the company file because that’s the last one we had open asking for the password, we set up a secret encryption just so no one can get our passwords.
00:37
So the three equals GZ equals one, n equals two P equals three ads too complicated the password is going to be just capital G G, G 1234, GGG, 1234. Okay, here we are in our gig great guitars file, we’re going to maximize them the home page, we’re going to go to the View drop down, and then the open windows list. On the left hand side we’re looking at those preferences, edit drop down, preferences on down at the bottom, and prior presentations, we left off with the items and inventory this time moving on to the jobs and estimates jobs and estimates nothing in the my preferences go into the company preferences.
01:18
This is something that would typically be used if you have some kind of job cost system. Usually people think of like construction jobs in this case. But you could have service companies that also have a job cost type of system, such as bookkeepers and law firms where you’re basically tracking information by the job. And then you could track them in this way, having them pending the awarded.
01:39
So if you had a job that you’re contracting for, for example, or you’re bidding on, and then it could be in progress, that you’re working on the job at that point in time, and then close the job is closed and not awarded. So these are going to be icons that could be used, we won’t get into a job cost system in detail now. But we will keep it on and reference it a little bit. We do have other courses that are designed to look more specifically into job cost systems themselves.
02:05
Do you create estimates, if we turn this off, then we’re going to lose this estimate item over here. We’ll keep it on just so we can mention it as we go through the system. We won’t be creating estimates for the bulk of our data input process here. You could turn them off, if you’re not going to be using them. Do you do progress invoicing? Once again, this is something that would be kind of a specialty type of area, we’re going to say no. So we’ll keep our invoicing kind of a standard invoicing process, meaning we do the work.
02:32
And then we in essence, bill for the invoicing, instead of having a percentage of completion or a you know a completed contract kind of method. Those are specialty kind of areas typically. So close estimates after converting into an invoice, I’ll keep the default here warn about duplicate estimate numbers, that’s that same internal control that you might have with like duplicate check numbers and so on, we’ll keep that on by the default, going down to the multiple currencies.
02:57
This is another specialty area, nothing’s on the my preferences tab, if you’re going to be we do have a course that focuses in on multiple currencies as well. But we’re gonna not go into it at this point in time, because it’s a specialty type of area, the general concept would be that you’re measuring your whatever you’re doing, whether that be inventory, or anything else, your receivables, your payables, and one particular currency, we’re going to be using the US dollar here, but you could use any currency.
03:26
And you can have the same kind of concept and follow along with the general concepts. But you might have a situation that you do transactions with currencies other than yours. So if we’re using the US dollar, and we are going to be selling something, and we’re going to be receiving a receivable, for example, in a foreign currency, now we’ve got a measurement problem.
03:48
And we’re going to have to account for that. and QuickBooks can kind of help us out with those currency exchange kind of transactions and how to record them. It’s another again, it’s a specialty kind of area, we won’t get into it here. Note that if you do turn on the multiple currencies, then it’s on like for good, you can’t turn it back off at that point in time.
04:07
And it doesn’t really mess anything up. You can you can have multiple currencies on and that’s okay. Although it could have it could have some effect on a couple things, it’ll give you a warning when you turn it on. And then you’ll always have this kind of field that will allow you to pick whether or not you want to assign a different currency. So just note that if you’re experimenting with it, you want to set up another company file typically. So we’re going to go to the payments then and the first tab on the my preferences for the payments doesn’t have anything there.
04:34
Second tab payments is going to be the the payment item down below where we have the receive payments here generally. So we’ve got the automatically apply payments, we’re going to keep that on as the default. So it applies out automatically calculate payments, so we’re going to keep that on as the default. That kind of confusing what oftentimes is this use undeposited funds as default deposit account.
04:57
That one is is often an issue because people don’t understand the undeposited account or what it’s used for, often times, and when you learn accounting, just in general, we think of cash is basically just cash. And we don’t really think about the depositing of the cash as an issue into the checking account from an undeposited funds. But it is an issue in practice, because it’ll help us out with the bank reconciliation process.
05:21
So if I close this out, for example, if I was to go to a receive payment item, which they may not allow me, because I don’t have any invoices, they did, okay, good. So now, and this area, this defaults, then when you when you enter this information in to decreasing a receivable, and we don’t have any, any items, that’s why I thought they might not let me open it because we don’t have any data in it yet.
05:44
But then the other side is going to go into undeposited funds, and I don’t have an option for it to go say directly into the checking account, which would be the other common option to turn to make that option, then which we’re going to turn it on at this point, you go to the Edit, drop down preferences, and then we’re in the payments, we’re going to go to the company preferences, I’m going to uncheck that. And then say OK, and then let’s take a look at the change that has happened into that form, I’m going to go to the company drop down homepage, opening up the homepage, again, maximizing it receive payment.
06:18
So when we see the received payment here, now we’ve got this icon, it’s going into undeposited funds, but we also have the ability to deposited directly into the checking account at the point in time we receive the payment. If not, then what happens is it’s going to go into undeposited funds. And then we have the added step of making the deposit over here. That added step being designed to allow us to group those deposits into the same format, as they will be going into the bank account making the bank reconciliation process easier.
06:50
You can also see that on the create sales receipts up top. This would be like if you’re making the sale at like a cash register, you can imagine it you have a similar situation where this undeposited funds would not be there. By default, we turned it on. If you got multiple cash receipts payments, you can imagine then going to the bank, depositing them at one time, meaning that in your bank statement, they’re going to be in there as one deposit. And you would like them to be as one deposit at least in the checking account on your end as well. So that you can reconcile.
07:23
So that’s a confusing component, oftentimes, going back to the edit, and we’ll we’ll actually, when we enter data go over that in a lot more detail. So we’re going to go to the payments, we’re going to go to the company preferences, we turned that we unchecked here, set a payment receipt template, so we can adjust the templates, we do have another section where we go into like the templates and customizing templates. But we’re gonna keep the default templates at this point in time and focus in in this practice problem on the data input.
07:51
Your customers can pay pay you online using, so you could turn on the credit cards, which could then we would have to kind of get that set up with basically the bank and so on to allow the credit card payments. And then the bank transfers, again, you kind of have to set that up so that you can allow them to straight bank transfers and have them track within the system as well. So that you can have them track through you know the payment process.
08:15
So if you Bill and Ben received the payment that you can receive the payments and allow them apply to apply to the invoice and that way. And so to make payments active or inactive, go to the lists menu, click customers and vendor profile lists, and then click payment method list. So we might so then you got the payment reminders. Do you want to send payment reminders? So in other words, if you have an invoice, for example, and you haven’t received the payment, do we want to resend reminders? The default would be yes. Because typically you would think you would if you’re tracking accounts receivable and you haven’t gotten payment.
08:51
If QuickBooks Desktop is open prompt me at, then it’s going to give you the prompt to to give you the reminders to send out the reminders, how frequently should it be, should it be on a daily basis or so or weekly or monthly, we’re going to keep it the default here. Note if QuickBooks is it open, you’ll see the prompt whenever you open next. Then next we have the payroll information to tabs up top, nothing is in the my preferences, we’re looking at the company preferences, we’re going to turn on the manual payroll. Now we don’t recommend using the manual payroll to actually process the payroll because payroll has become somewhat complex and to do it manually.
09:28
It’s not difficult to do any one thing in payroll, but it’s really easy to miss a little step which can cause you problems. It later on down the line typically resulting in problems come to light at the point time at the end of the quarter or the end of the year. When you’re when you’re really busy. And then fixing the problem can cause you a lot more pain. Therefore, it’s typically worthwhile to get support with payroll either through QuickBooks actually paying for payroll so they can help you to do some default calculations in so on. And or if you don’t want to do it through payroll, you can hire a third party provider.
10:05
We’ll talk more about this in future presentations. But you can hire like an ADP or a paycheck that’s specifically works in payroll, and may not, they may not be using the QuickBooks system, but then you’ll kind of outsourcing the payroll process. Those are your two general options. However, the manual payroll for practice purposes is great, because it does make you actually do some of the calculations and therefore actually think about what the transaction is.
10:30
And what we want to do on the bookkeeping side is have a better idea of what is the impact on the transactions, and the end result on the financial statements so that when there are problems, we can look at those problems, we can figure them out. And we can also be more useful when we’re setting up the payroll process and trying to enter the data into the system, or set up the system so that it can enter the data when we process the payroll. So it says here before continuing with manual payroll, did you know that QuickBooks payroll services helps with the hard work with QuickBooks payroll services, get payroll done in minutes and rest easy.
11:04
So they’re going to say we offer payroll, I’m going to say, No, we don’t want the payroll, I want to keep on the manual payroll next, and so active, so manual payroll has been activated. So I’m going to say, okay, that’s what we want it to do. So then it has no payroll, online payroll, we’re going to keep the manual.
11:22
And it says pay stubs and voucher printing, these are going to be options that we’ll have to set up. When we set up the payroll, I’m not going to go through the full setup process at this point. We’ll talk more about that as we go through the payroll process. But workers comp is going to be something that’s going to be in the United States more individualized. In other words, you’ve got federal payroll, that’s going to be basically Social Security, federal income tax Medicare, and then you’ve got state taxes and so on. And then you got the workers comp sick and vacation pay.
11:54
We’re gonna we’re not going to get into that right now. Copy earnings detail from previous paycheck. So I’ll keep the default recall quantity field on paychecks, we’ll keep that on as the default. Recall our field on paychecks, we’ll keep the default job costing an item tracking for paycheck expenses, we’re not going to be really applying it to the to the Job Costing but I’ll keep it on there. By default, item tracking will keep there by default as well. Changing the employee name display preferences will cause all QuickBooks Desktop windows to close.
12:28
Please finish paying your employees before you do display list. So you can have the first name or the last name how you want them to display. So do you want the first name and then the last name or last name comma first name, Mark new employees as sales rep. We’re going to keep that off by the default. If you have sales reps, then you can you can look into the more options with regards to them.
12:50
Display employees social security numbers in the header on reports. This can be useful but obviously social security numbers are sensitive information so we’ll keep it off as the default so that we’re going to continue on with more of these next time. I’m going to save the changes here by going to okay and then if it asks you a prompts you to save the changes, we’re going to save those changes happen the manual payroll on