Have you ever wanted to expand your knowledge in the world of accounting software?
This is how my interest aroused…
Product knowledge is very critical for product marketing and product management professionals. I thought of focusing my energy on studying different products in the market. As I was doing my research, I stumbled across the brilliant QuickBooks course offered at NOVA job center. I immediately enrolled for it. After extensive hands-on training, felt like I gained broad knowledge and could apply my Financial Management concepts learnt during my MBA.
I am writing this blog immediately after finishing my 14 hours of hands-on training on QuickBooks.
The best way to share what I learnt is to write a blog of few important concepts I learnt in this course.
So here we go…
- The two important bookkeeping methods used to create most reports in QuickBooks is: Cash or Accurral basis accounting.
- The five common accounts for all business are: Assets, Liabilities, Owner’s Equity, Income and Expense.
- You create a Company the output is get is Chart of Accounts
- The Chart of Accounts does not have Vendor Records
- Accounts Payable is an Asset and Accounts Receivable is a Liability
- Capital Investment, Retained Earnings and Draws are tracked through Equity account
- The two types of Inventory used in Quick Books are: Inventory Part and Non-Inventory Item
- Products you sell will appear on the Item List
- You should have inventory of items before you can sell them
- If the physical/actual inventory is less than the inventory documented in QuickBooks then, adjust the quantity using the Adjust Quantity/Value in Hand option
- Receive Ordered Items increases the inventory stock balance (Pay Bills and Create Purchase Order does not increase stock balance)
- Customer => New Customer is the way to setup New Customer in QuickBooks
- The Customer Type information is listed in the Additional Info tab
- Vendor => New Vendor is the way to setup New Vendor in QuickBooks
- The payment terms for the vendors are added in the Payment Setting tab
- Create Invoices is the method used to record sale of items on credit
- You generate Accounts Receivable every time you record a sale on credit
- Customer => Enter Sales Receipt is used to record the sale of items paid upfront
- The Undeposited Funds account acts like a “cash drawer” and is used to hold funds until you deposit them into bank account
- Receive Items is the option you will use when the vendors deliver the items you ordered but it did not come with a bill
- Purchase Item does affect the Balance Sheet or Income Statement
- Banking => Make deposits and Use Register are the two methods use to record deposit transactions to a bank account
- Banking => Write Checks and Vendor => Pay Bills are the two methods used to record payment transactions made to vendors and debtors
- Employee => New Employee is the way add New Employee
- Payroll Info is the tab used to add Employee pay rate
- Taxes is the place to enter filing status and allowances claimed by the employee in QuickBook payroll
- Timesheet is the way to enter hours worked for an employee
- Payroll schedules are required to run payroll in QuickBooks
- Payroll schedules help to group employees with the same pay frequency
- Payroll Liabilities and Payroll Taxes are linked with the Payroll items
- Price Level List is the process used in Quick Books to temporarily change the price of the items without changing the base price
- Profit and Loss Statement report is a financial statement reporting the revenues and expenses of a business for a specific accounting period
- Balance Sheet report is a financial statement reporting in detail the assets, liabilities, and equities of a business as of a certain date
- Timesheet is a document that shows the time spent by one person doing number of activities for any number of jobs within a seven-day period
- Payroll liabilities are created when payroll taxes are withheld from an employee’s paycheck
I am sure I will be frequently returning to this page as it is area of my interest to deal with financial numbers and hope it was helpful to you as well.