2012

Perform a Complete Company File Setup using the 12-step process

Choose a Start Date Use the EasyStep Interview to setup your

Company File Setup Accounts in the Chart of Accounts

List Gather Your Information for Setting up

Opening Balances Enter Opening Balances Enter Year-to-Date Income and Expenses

Adjust the Opening Balance for Sales Tax Payable

Adjust Inventory for Physical Quantities on Hand

Verify your Opening Balances Close Opening Balance Equity into

Retained Earnings Back up the File and Setting the Closing

Date Set up Users and Passwords

1. Start Date2. Create company file3. Chart of Accounts and lists4. Opening Balances5. Enter outstanding transactions 6. Year-To-Date Income and Expenses (if

necessary)

7. Sales Tax Payable8. Inventory9. Payroll Lists and Year-To-Date Payroll

information10. Verify Trial Balance 11. Close Opening Balance Equity 12. Back up your file

Best start dates:◦ Calendar-Year Basis

December 31◦ Fiscal Year basis

Last day of fiscal year◦ For a new company

First day of the business

Express Start Advanced Setup

To set up the Chart of Accounts, we will cover the following:◦ Account Types ◦ Activating Account Numbers ◦ Adding Accounts ◦ Adding Subaccounts ◦ Removing Accounts from the Chart of Accounts ◦ Reordering the Account List

Assets:◦ Bank◦ Accounts Receivable◦ Other Current Asset◦ Fixed Asset◦ Other Asset

Liabilities:◦ Accounts Payable◦ Credit Card◦ Loan◦ Other Current

Liability◦ Long Term Liability

Equity Income:

◦ Income◦ Other Income

Expenses:◦ Expense◦ Other Expense◦ Cost of Goods Sold

Deleting Accounts - Option 1 Deactivating Accounts - Option 2 Merging Accounts - Option 3

Select the account you wish to change

Rename the account to the account you wish to keep

Sorted by name without account numbers

Gathering Your Information Entering the Opening Balances Understanding Opening Balance Equity

Trial Balance for your start date Bank Statements (all accounts) Outstanding Checks and Deposits Open Invoices Unpaid Bills Employee List and W-4 Information Payroll Liabilities by Item Year-to-Date Payroll Detail by Employee Year-to-Date Payroll Tax Deposits Physical Inventory by Inventory Part

Two Methods◦ Directly Editing the Account ◦ Using a General Journal Entry to Record

Opening Balances

As the opening balances for assets and liabilities are entered, QuickBooks automatically adds offsetting amounts in the Opening Bal Equity account

Opening Bal Equity will be “closed” into Retained Earnings (or Owner’s Equity).

Outstanding Checks and Deposits Open Bills (Accounts Payable) Open Invoices (Accounts Receivable) Open Purchase Orders Open Estimates and Sales Orders

General Journal Entry to enter your year-to-date income and expenses

Summarize the total income and expenses Only for mid-year setup

Total Tax Due = Collected Tax + Uncollected Tax Uncollected Tax = Tax on Open Invoices Collected Tax = TotalTaxDue – Uncollected Tax

Setting up payroll in QuickBooks is a lengthy and involved process

See Payroll Setup Chapter

Set the start date as the Closing Date to Protect your Setup Balances

Backup your finished file

Multi-User Mode Single-User Mode

Perform a Complete Company File Setup using the 12-step process

Choose a Start Date Use the EasyStep Interview to setup your

Company File Setup Accounts in the Chart of Accounts

List Gather Your Information for Setting up

Opening Balances Enter Opening Balances Enter Year-to-Date Income and Expenses

Adjust the Opening Balance for Sales Tax Payable

Adjust Inventory for Physical Quantities on Hand

Verify your Opening Balances Close Opening Balance Equity into

Retained Earnings Back up the File and Setting the Closing

Date Set up Users and Passwords