Blog

The Basics of Setting Up and Tracking Inventory in Quickbooks

If you run a small- or medium-sized business, you might be wondering how to set up and track inventory in Quickbooks. Intuit’s popular business accounting software is loaded with useful features, including inventory tracking. Also known as stock tracking, this allows you to track the products your business sells by one or more criteria. Unfortunately, many business owners overlook inventory tracking, believing it’s too difficult to set up and, therefore, not worth the effort. However, Quickbooks makes it easy to set up inventory tracking. Just follow the steps listed below.

The Different Ways to Track Inventory

Quickbooks supports four different methods for tracking inventory. First, you can track inventory by quantity, such as the number of products that your business buys or sells in a given period. Second, you can track inventory by the items that your business buys or sells but can’t use (known as non-inventory items). Third, you can track inventory by services, such as services your business sells and offers to its customers. Fourth, you can track inventory by bundle, which consists of multiple products and/or services that your business sells together as once.

How to Set Up Inventory Tracking

To set up inventory tracking, log in to your business’s Quickbooks account and click the gear icon at the top of the page. Next, click “Account and Settings” below the “Your Company” menu. On the left-hand sidebar, click “Saves.” You should see a new window in the middle of the screen labeled “Products and services.” Look for a pencil icon next to this window and click “Track Inventory.” Assuming you followed these steps, Quickbooks will now enable inventory items under “Products and Services.” You can test this by going back to the main screen and choosing “Products and Services,” followed by “New.” If it worked, you’ll see a new item type here called “Inventory item.”

With inventory tracking enabled, you can now choose “Inventory” as a product type. This essentially allows you to track the products that your business sells by one of the four aforementioned criteria. Not all businesses need to track inventory — and that’s okay. However, if your business sells a lot of products, tracking products is usually a good idea. It provides you with invaluable data on where your products are being sold and how they are bold sold. Using this information, you can optimize your business’s strategy to achieve greater success.

Have anything else that you’d like to add? Let us know in the comments section below!

What Is Detail Type in Quickbooks?

When using Quickbooks to keep track of your business’s finances, you may come across “detail types.” Intuit’s popular business accounting software allows you to select from one of several account types when you create an account, some of which include expense, income and liability. Depending on the account type, it will place the account into a new subcategory so that it’s properly recorded as per the Generally Accepted Accounting Principles (GAAP). To learn more about detail types in Quickbooks and how to use them, keep reading.

Detail Types Are Chosen Automatically

As previously mentioned, Quickbooks automatically places new accounts into a specific subcategory. Cash, for example, is placed on the Balance Sheet as an asset. Payroll, on the other hand, is placed as a payroll expense. Quickbooks automatically selects the most appropriate detail type for the respective account, meaning you don’t have to worry about choosing a detail type. As long as you select the right account, Quickbooks will categorize it with the appropriate detail type.

How to View Detail Type of an Account

So, how do you view the detail type of a specific account in Quickbooks? To view the detail type of an account, log in to Quickbooks and click the gear icon at the top of the page, followed by “Chart of Accounts.” From here, you should see a list of all your accounts along with their respective detail type.

How to Change the Detail Type

While Quickbooks automatically selects detail types for new accounts, you can change it in a few easy steps. To change the detail type of an account, click the gear icon at the top of the page, followed by “Chart of Accounts.” Next, click “View Register” below the “Action” menu, followed by “Edit.” You can then select “Detail Type” in the pop-up window. After choosing your preferred detail type, click “Save and Close” to complete the process. Quickbooks will ask you to confirm the change before proceeding. It’s recommended that you double check to make sure you’ve selected the right detail type. Assuming everything looks good, choose “Yes” to confirm, at which the account will have a new detail type.

After reading this, you should have a better understanding of detail types in Quickbooks. Selecting the right detail type is essential to your business’s accounting practices because it governs the way in which transactions are recorded.

Have anything else that you’d like to add? Let us know in the comments section below!

How to View Transaction Changes in Quickbooks Using Audit History

As a business owner, it’s important that you monitor your business’s financial transactions on a regular basis. If you don’t know where your money is going, or where it’s coming from, you won’t be able to optimize your business’s operations to achieve the highest possible profits. Using Quickbooks, however, you can easy view transaction changes using the accounting software’s Audit History.

What Is Audit History?

Audit History is a feature in Quickbooks that allows you to view all changes made on a transaction. It’s not uncommon for multiple people to access a business’s Quickbooks account. If you run a medium-sized business, for example, there may be several other corporate executives, as well as professional accountants, who regularly use your business’s Quickbooks account. As a result, some of these users may make changes to one or more transactions. Using Audit History, you can see who exactly made changes to a transaction recorded in your business’s Quickbooks account.

How to Use Audit History

To use Audit History, log in to your Quickbooks account and open the transaction that you’d like to view changes for. It’s important to note that Audit History only works with a single transaction. You can not use it to view changes on multiple transactions simultaneously. Rather, you’ll need to open and view each transaction separately to see their respective changes and who made those changes.

With the transaction open, click the “More” link at the bottom of the page, followed by “Audit Trail.” You should now see the Audit Trail featuring all changes made to the respective transaction. As you go through these changes, you can see who made them as well as when they were made.

What About Audit Log?

You can also use the Audit Log to view changes made to your business’s transactions in Quickbooks. The key difference between the Audit Log and Audit History, however, is that only the Audit Log allows you to view changes made to multiple transactions. To use this feature, log in to your Quickbooks account and click the gear icon at the top of the page, followed by “Tools.” Next, select “Audit Log” from the drop-down menu, at which point you can filter the results by user, date and events. The Audit Log in Quickbooks will show up to 150 transaction records at once. However, you can view more records by clicking “More” at the bottom of the screen.

Have anything else that you’d like to add? Let us know in the comments section below!

How to Set Up Bank Feeds With Quickbooks Desktop

If you use Quickbooks Desktop to keep track of your business’s financial records, you should consider setting up Bank Feeds. Exclusive to the desktop version of Intuit’s popular business accounting software, Bank Feeds will automatically connect your business’s bank accounts to Quickbooks so that you can easily monitor and record transactions. While there’s no rule stating that you must use this feature, enabling it is a great way to save time and improve productivity.

Check to See If Your Bank Is Compatible With Quickbooks Bank Feeds

To get started, you’ll need to check and see if your bank is compatible with Quickbooks Bank Feeds. This is done by logging in to your Quickbooks account and accessing Banking > Bank Feeds > Participating Financial Institutions. From here, you should see a long list of compatible banks located in the United States as well as Canada. There are more than 1,400 banks that support Bank Feeds, so scroll through the list to see if your bank is listed.

Connecting Your Bank Account

Quickbooks currently supports two different methods of connecting your bank account: Direct Connect and Web Connect. With Direct Connect, Quickbooks will automatically send information to your bank, and it will automatically download data from your bank. To use Direct Connect, you’ll need to enter the PIN or password associated with your bank account. Once you’ve set up the account, you’ll be able to download bank statements directly to your Bank Feeds in Quickbooks. Furthermore, Direct Connect allows you to use other financial-related services in Quickbooks, such as online vendor payments and account transfers.

Alternatively, you can use Web Connect to connect your bank account to Quickbooks. However, this method only allows Quickbooks to receive bank data through your web browser. This means you won’t be able to send payments to vendors or transfer funds — at least not directly from your bank account.

It’s important to note that you may incur fees when using either Direct Connect or Web Connect. Quickbooks doesn’t necessarily charge business owners for using these features. However, many banks charge fees to customers for internet-based data services like these. If this is your first time attempting to use these services, it’s recommended that you check with your bank to see what, if any, fees they charge. There’s nothing worse than being hit with an unexpected fee simply for accessing your bank information online.

Have anything else that you’d like to add? Let us know in the comments section below!

What Is Single-User Mode In Quickbooks?

In Quickbooks, you can switch between two different user modes: single or multi. Although they both allow you to perform basic accounting tasks, there are some key differences between the two modes that shouldn’t be ignored. Therefore, it’s important for business owners and accountants to familiarize themselves with single-user and multi-user mode. Only then will you be able to take full advantage of Intuit’s popular, award-winning accounting software.

Single-User vs Multi-User Mode: The Basics

The primary difference between single-user and multi-user mode in Quickbooks, as you may have guessed, is that the former prevents anyone else from accessing your Quickbooks company file at the same time that you access it. If you are logged in to Quickbooks and viewing or otherwise accessing your company file, anyone else who attempts to access your company file will be blocked — at least until you log out. In comparison, multi-user mode allows multiple people to log in and access your company file. It’s typically used by large businesses where multiple executives, accountants and other workers need to record financial transactions.

It’s important to note that some Quickbooks activities can only be performed single-user mode, whereas others can be performed in either single-user or multi-user mode. If you want to create a portable company file, for example, you’ll need to log in to Quickbooks using the single-user mode. Quickbooks prohibits users from creating a portable company file in multi-user mode. The same applies for rebuilding data — you’ll need to use the single-user mode to rebuild data in Quickbooks.

How to Switch Between Single-User and Multi-User Mode

Now that you know the differences between single-user and multi-user mode in Quickbooks, you might be wondering how to switch between these two different modes. Well, it’s actually a quick and easy process. To switch between single-user and multi-user mode, simple log in to the main Quickbooks interface, at which point you can click the “File” tab at the top of the page, followed by “Switch to Single-user Mode” or “Switch to Multi-user Mode.”

You can learn more about single-user and multi-user mode by searching for “single-user” or “multi-user” in the Quickbooks search bar. This should bring up a Quickbooks help article with information about the two modes and how they differ. As previously stated, though, the primary difference is that single-user mode prevents anyone else from accessing your company file at the same time you access it.

Have anything else you’d like to add? Let us know in the comments section below!

Understanding Assets on Your Quickbooks Balance Sheet

In Quickbooks, a balance sheet is an essential component of your business’s financial records. This document features two columns, one of which is a list of assets, whereas the other is a list of debt and liabilities. Analyzing your business’s balance sheet can help you understand the true value of your business. If your business’s debt and liabilities are greater than its assets, for example, it indicates a low (or no) value. But what exactly constitutes an “asset” on a balance sheet?

Cash

Cash on your business’s balance sheet refers to money in hand, deposits in bank accounts and any short-term investments that you can easily convert into cash.

Securities

Securities on your business’s balance sheet include market securities like stocks, bonds, certificates and other investments that you can easily trade.

A/R

While most business owners are familiar with cash and securities, many are confused when they see “A/R” listed on their balance sheet. A/R refers to accounts receivable. Not to be confused with accounts payable, accounts receivable is money owed to your business by a customer, client, vendor or any other party. Many businesses allow their customers or clients to pay after their product has been delivered or service has been completed. Until the customer or client pays the required amount, the transaction is considered A/R. If your business has significant money tied up in A/R, you should follow up with customers or clients on a regular basis to request payment.

Inventory

As the name suggests, inventory on your business’s balance sheet refers to tangible equipment, products, goods and other items that you can sell. Inventory is considered an asset because of its monetary value. You can essentially sell inventory to turn it into cash, thereby making it an important asset for many businesses.

Prepaid Expenses

Finally, prepaid expenses on your business’s balance sheet are ongoing, regular expenses needed to conduct your business’s operations. According to Intuit, insurance is a common type of prepaid expense incurred by many businesses. When a business purchases insurance, it must record those insurance payments as prepaid expenses on its balance sheet.

It’s important to note that there are also property and intangible property assets on balance sheets. These two assets, however, are considered non-current assets, whereas the other assets described in this blog post are considered current assets.

Have anything else that you’d like to add? Let us know in the comments section below!

What Are Classes in Quickbooks?

No, a Quickbooks “class” isn’t a training course where you learn how to use Intuit’s popular accounting software. Although this would make sense, classes in Quickbooks actually refer to something entirely different. So, if you’re planning to use Quickbooks to keep track of your business’s financial transactions, it’s important to familiarize yourself with classes. Only then will you be able to use this feature.

Class Tracking: The Basics

Classes are used to track transactions based one on or more criteria. If you operate a business with multiple locations, for example, you can create a class for each unique location. This way, you can see exactly how many sales one store generated compared to other stores. Class tracking is a relatively simple feature that opens up a world of new possibilities with Quickbooks. In addition to tracking by location, you can use classes to track transactions by account balances, bills and other factors.

Keep in mind that you aren’t required to use class tracking in Quickbooks. On the contrary, most small businesses owners never use this feature. But if you need to separate the financial metrics of some transactions from the rest, using this feature may prove helpful. Class tracking is a highly versatile and customizable feature that simplifies the process of separating transactions into groups.

How to Create Classes

To use class tracking in Quickbooks, you’ll first need to create a class. This is done by logging in to Quickbooks and clicking Edit > Preferences > Accounting. From here, click the “Company Preferences” tab at the top of the screen, followed by “Use Class Tracking.” After ticking the box for “Use Class Tracking,” click “OK” to complete the process.

Now that your class has been created, you can set up the appropriate categories for your accounts. This is done by clicking your lists from the main menu, followed by “Class List.” Next, click the green arrow icon adjacent to the “Class” button. From here, you can click “New” to create a new class for expense accounts, departments or other criteria. You’ll also have the opportunity to enter a name for the class, so choose something that will help you remember what it’s for.

Creating classes in Quickbooks is a pretty simple and straightforward process. However, it’s important that you associate any newly created classes with an expense.  If you need assistance with class tracking, contact your Quickbooks hosting provider for assistance.

Have anything else that you’d like to add? Let us know in the comments section below!

How to Delete a Bank Account From Quickbooks

One of the great things about adding your bank accounts to Quickbooks is that it allows you to see all the transactions — including deposits, withdrawals and payments — from Quickbooks. Rather than logging in to each of your online bank accounts, for example, you can simply launch the Quickbooks accounting software. It will automatically pull data from your respective bank accounts, revealing this information in a single, convenient interface. There are times, however, when you may need to remove a bank account from Quickbooks. So, how do you delete or remove a bank account from Quickbooks?

How to Hide a Bank Account

In some cases, hiding the bank account might be better than actually deleting it. When you hide a bank account, Quickbooks will retain all the data from the account, but it will remove this information from the screen so that you can navigate the accounting software more easily. As a result, you can still access your bank account’s information from Quickbooks even when it’s hidden.

To hide a bank account, log in to Quickbooks and click the gear icon at the top of the screen. Next, click the drop-down menu and select “Bank Accounts.” You can then scroll through the list of bank accounts to choose the one that you’d like to hide. Next to the account name, click the toggle button for “Show Account” so that it displays “OFF” rather than “ON.” Once finished, Quickbooks will hide this bank account.

How to Delete a Bank Account

Hiding a bank account doesn’t actually remove it Quickbooks. To completely remove a bank account, you’ll need to delete it. This involves going back to the main Quickbooks screen and clicking the gear icon. Next, click the drop-down menu again and select “Bank Accounts.” Scroll through the list of bank accounts until you find the account that you’d like to delete. You should see a trashcan icon in the upper-right corner of the account window. Clicking this icon will initiate the delete process. Quickbooks will ask you to confirm the account’s deletion by entering “DELETE,” after which the account will be removed from Quickbooks.

Remember, deleting a bank account completely removes the account from Quickbooks. This is a permanent action that you cannot undo. Therefore, it’s recommended that you create a backup before attempting to delete any bank accounts from Quickbooks.

Have anything else that you’d like to add? Let us know in the comments section below!

Creating a Delayed Charge Invoice in Quickbooks

It’s not uncommon for business owners to invoice their customers or clients at different intervals. While some business owners collect payment during the transfer of the goods or services, others wait until later. When accepting payment after the delivery of goods or services, you should consider using a delayed charge invoice. As the name suggests, this special type of invoice “delays” the charge, allowing customers or clients to pay for their purchase at a later date. To learn more about delayed charge invoices and how to create them using the Quickbooks accounting software, keep reading.

You can easily create a delayed charge invoice in Quickbooks Online — the cloud-based version of Intuit’s accounting software — by logging in to your account, clicking the (+) menu at the top of the screen and choosing “Delayed Charge” under the column for “Customers.” From here, you’ll need the select to whom you want send the delayed charge invoice. If the customer isn’t listed in your Quickbooks account, you’ll need to add him or her by clicking the “+Add new” button. While adding a new customer may sound tedious, you don’t have to enter all the information for the customer. Rather, creating a delayed charge invoice only requires you to enter the customer’s name. You can go back into your Quickbooks account later to update the customer’s other information.

After selecting the customer, Quickbooks will prompt you to enter a date for the purchased product or service. Keep in mind that this is not the “due date” for the invoice. This is the date on which the customer agreed to purchase the product or service. Double check the date to ensure it’s correct, at which point you can proceed to the next step. Next, you’ll need to enter the product or service that you sold to the customer. Like customers, Quickbooks allows you to select the product or service from a drop-down menu. And if the product or service isn’t listed in your Quickbooks account, you’ll need to add it by clicking the “Add” button.

You’re almost finished. Now comes the process of choosing an “Income Account” in the “Product or Service Information” field. Finally, enter a price for the product or service, followed by clicking “Save and Close” to complete the process. Once finished, you’ll have a delayed invoice ready for the customer or client.

Did this tutorial work for you? Let us know in the comments section below!

How to Record a Bounced Check Payment in Quickbooks

When accepting checks as a form of payment for your business’s products or services, you run the risk of having the check bounce. If the customer doesn’t have enough funds in his or her bank account to cover the cost of the purchased product or service, the check will bounce. Typically known as non-sufficient funds (NSF), it’s a common occurrence encountered by countless businesses. To prevent a bounced check from negatively impacting your business’s financial records, though, you’ll need to record it. If you use Quickbooks, you can easily record a bounce check payment in just a few simple steps.

Bounced Check Feature

Quickbooks Desktop actually has a bounced check feature that’s designed specifically for recording bounced check payments. To use this feature, log in to your Quickbooks account and click Customers > Customer Center > Transactions > Received Payments. From here, you’ll see a list of all payments that your business has received. Scroll through the list until you see the payment associated with the bounced check, at which point you can double-click it to record it as an NSF.

There are a few more steps to recording a bounced check using this feature, however. Once you’ve marked the customer’s payment as an NSF, you’ll need to access the “Receive Payments” window, from which you can click the “Record Bounced Check” option. Keep in mind that you can only record a bounced check if the check is not waiting to be cleared. Rather, this feature is only available to checks that have been cleared by the respective bank, even if the clearing resulted in an NSF.

Manually Recording Bounced Check

You can also record a bounced check payment in Quickbooks manually. This is a slightly more tedious process, but it’s still a viable solution for handling these bad payments. To record a bounced check manually, you’ll need to create an account as well as an item to track the NSF. Next, you must record the NSF that your business incurred from its bank. Finally, you can reverse the customer’s original payment so that it doesn’t affect your accounting records. While optional, you can also send the customer an invoice for the NSF fee charged by your bank. If you don’t send a customer an invoice for this fee, your business will incur this expense, which is usually around $30 or $40.

Did this tutorial work for you? Let us know in the comments section below!

LAYOUT

SAMPLE COLOR

Please read our documentation file to know how to change colors as you want

BACKGROUND COLOR

BACKGROUND TEXTURE