Quickbooks

How to Add a Customer in Quickbooks

It’s not uncommon for customers to make multiple purchases over the course of their relationship with your business. As a result, it’s a good idea to store their contact information. By storing your customers’ contact information, you can track sales, personalize their experience and more. If you use Quickbooks to track your business’s finances, you can easily add customers to your account in just a few easy steps.

Steps to Add a Customer in Quickbooks

To add a customer in Quickbooks, log in to the accounting software, click the “Invoicing” tab on the right-side menu and choose “Customer.” From here, click “New Customer.” Quickbooks will then reveal several fields in which you can add information about the customer, some of which include the following:

  • Name
  • Company
  • Email
  • Phone
  • Mobile
  • Fax
  • Website


You don’t have to complete all these fields. If you run a business-to-consumer (B2C) business, there’s no need to complete the “Company” field, for example. Nonetheless, you should try to include as much information about the customer as possible. The more you know about him or her, the better service you can provide.

When you are finished adding the customer’s information, click “Save” to complete the process. If you need to add multiple customers to your Quickbooks account, simply repeat the listed previously listed.

How to Create a Sub-Customer

Quickbooks even allows you to create sub-customers for your business. A sub-customer is essentially a customer that’s placed under an existing, parent customer. Why would you need to create sub-customers? Well, one reason is to track customers for a specific job. You can place all customers associated with a specific job under a new parent customer.

To create a sub-customer in Quickbooks, go back to the accounting software’s home screen, click “Invoicing” and choose “Customers.” Next, choose “New Customer.” You can then complete the fields just like you would when adding a regular customer.

Before clicking the “Save” button, though, click the box labeled “Is sub customer,” at which point you can select the parent customer. Only after clicking this box and assigning the sub-customer to a parent customer should you click “Save.” Keep in mind that you’ll need to create the parent customer before the sub-customer.

Creating both customers and sub-customers is easy in Quickbooks, requiring just a few mouse clicks from the software’s home screen.

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How to Record Loan Payments in Quickbooks

Starting a new business isn’t cheap. According to the Small Business Administration (SBA), most U.S. small businesses with fewer than 500 employees require about $10,000 to start up. The good news is that you don’t have to tap into your personal funds to start your business. You can apply for a loan from a bank or private lender. When using a loan to fund your business, though, you’ll need to keep track of your loan payments.

Add Your Loan to Quickbooks

Before you can track your loan payments in Quickbooks, you must first add the loan to your Quickbooks account. After logging in to Quickbooks, click the gear icon at the top of the page, followed by “Chart of Accounts.” From here, choose “New,” followed by either “Long-Term Liabilities” or “Other Current Liabilities” for the account type. For the “Detail Type,” choose “Loan Payable.” Finally, enter the name of the account, after which you can click “Save and close.”

With the loan created, your next course of action should be adding an opening balance to it. Go back to the main screen and click the (+) icon at the top of the page, followed by “Bank Deposit” under the “Other” menu.” From here, scroll through the menu and choose the account to which you will make the loan payments. For the “Account” field, choose the payable account as well as the amount of the loan. When finished, click “Save and close.”

Recording Loan Payments in Quickbooks

Now that your loan is set up and ready to go, you can begin to record payments to it. To record a payment, go back to the main screen and click the (+) icon. Next, click “Check” under the “Vendors” menu. Assuming you use an Electronic Funds Transfer (EFT), you can simply enter “ETF” in the field here. If you’re making a payment on the loan using a physical check, however, you should enter the check’s number in this field.

Quickbooks will prompt you to complete a few additional fields in the “Account details” area. In the first field, enter the account for the loan as well as the amount of your payment. In the second field, enter the expense account used for the loan’s interest. In the third field, enter any other fees associated with the loan payment. After double checking to ensure this information is correct, click “Save and close.”

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What Is a Delayed Charge in Quickbooks?

When using Quickbooks to keep track of your business’s financial transactions, you may come across the term “delayed charge.” Unfortunately, many business owners are unfamiliar with this term, let alone know how and when to use it. In this post, we’re going to explain what delayed charges are used for, as well as instructions on how to record them in Quickbooks.

Delayed Charges Explained

In Quickbooks, a delayed charge is exactly what it sounds like: a charge billed to a customer or client in the future. It’s not uncommon for businesses to temporarily delay charging a customer or client for a product or service. In instances such as this, a delayed charge should be used. Delayed charges allow you to record charges while postponing the billing of those charges to a future date.

Why should you delayed charges exactly? Well, you won’t need to use this feature if your business collects payment or otherwise charges customers or clients at the time of the transaction. If your business charges customers or clients in the future, however, using delayed charges will help you record billable charges so that they don’t go unnoticed and unaccounted for.

Steps to Recording a Delayed Charge

To record a delayed charge, log in to Quickbooks and click the (+) menu at the top of the screen, followed by “Customers” and then “Delayed Charge.”

After selecting “Delayed Charge,” click the field for “Choose a customer” and select the customer or client for whom you wish to record the delayed charge. If the customer or client isn’t listed, click “Add new” to add him or her to your Quickbooks account.

You’re almost finished recording a delayed charge. You should now be able to select the date on which you purchased the product or service associated with the delayed charge. If you purchased materials to perform a job for a customer, for example, enter the date on which you purchased the materials.

For the “Products/Service” field, enter the product or service for which you are charging the customer or client. If it’s not listed, click “Add new” to add the product or service to your Quickbooks account.

Last but not least, select “Income Account” for the “Product or Service Information” option, followed by the price of the delayed charge. When finished, click “Save and Close” to complete the process.

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How to Make Tax Payments Electronically Using Quickbooks

Want to make tax payments for your business electronically? If you use Quickbooks, you can easily make electronic tax payments. Intuit’s Quickbooks accounting software allows business owners and accountants to set up electronic tax payments via the Electronic Federal Tax Payment System (EFTPS). It’s a quick and easy process that eliminating the need of driving to your local post office to send a check via snail mail. If you’re interested in making tax payments electronically using Quickbooks, keep reading for a step-by-step tutorial.

Sign Up for Electronic Services

To get started, you’ll need to sign up for electronic services in Quickbooks. This is found by logging in to Quickbooks and clicking the left-hand navigation bar, followed by Taxes > Payroll Tax > Pay Taxes. From here, Quickbooks will display a list of all taxes that your business must pay. You can then click “Create Payment” next to the tax that you’d like to pay. After entering your payment information, Quickbooks will ask you to verify it. Assuming everything looks good, click “Approve,” at which point the tax payment will be processed.

Viewing Your Past Tax Payments

Now that you know how to create tax payments using Quickbooks, you might be wondering how to view tax payments that you’ve already made. Well, this is done by going back to the main Quickbooks home screen and clicking “Taxes & Forms.” Next, choose “View Tax Payments” in the “Overview” menu. Place your cursor over the navigation menu and choose “Reports.. This should provide you with a list of all tax payments that your business has made. You can review these payments to ensure that are accurate and up to date.

What You Should Know About Electronic Tax Payments

There are a few things you should know about making electronic tax payments in Quickbooks. First, you might be surprised to learn that electronic tax payments are actually required when making federal tax payments. The Internal Revenue Service (IRS) changed its rules in 2011, thereby requiring the use of the EFTPS to make federal tax payments. This was done to save time and reduce the possibility of mistakes.

When you make an electronic tax payment, you’ll be required to approve the payment by no longer than two business days before the payment date. Your electronic tax payment will include some basic information, including the dollar amount, date of withdrawal and your EFTPS account number.

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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.

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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.

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Closing Your Accounting Records for the End of the Year in Quickbooks

With the year coming to a close, many business owners are scrambling to prepare their accounting records. January 1 marks the end of one tax period and the beginning of a new one. You’ll be required to pay tax on all your business’s profits, as well as any capital gains, for the previous year. If you use the Quickbooks accounting software, however, you can easily close your accounting records for the end of the year so that they don’t affect your records for the new year.

The easiest way to close your books in Quickbooks is to set a password-protected closing date. You can set the previous year as the date, meaning that neither you nor anyone else can modify the records for the previous year unless they log in using your specified password. Keep in mind that this feature is optional, and business owners aren’t required to set a password-protected closing date. Quickbooks Desktop makes automatic adjustments to records at the end of the year to prepare the business owner for the new period. But setting a password-protected closing date helps to preserve records from the previous year so that workers or accountants don’t accidentally make changes to them.

To set a password-protected closing date, log in to your Quickbooks Desktop account and access Edit > Preferences > Accounting. Next, click “Company Preferences,” followed by “Set Date/Password.” You can then choose your closing date — the date on which no more changes can be made without a password — as well as a password. After entering this information, click “OK” for “Set Closing Date and Password” and “OK” for “Preferences.”

In addition to setting a password-protected closing date, you may also want to review changes made to your business’s financial records in the previous year. Quickbooks has a built-in feature for this purpose. To view these changes, log in to your Quickbooks Desktop account and click Reports > Accountant & Taxes > Closing Data Exception Report. Choose your preferences and run the report, after which you’ll see a list of all changes made to your business’s records for the specific year or fiscal period.

Closing your books at the end of the year is important, as it preserves your business’s financial records. Assuming you use Quickbooks Desktop, you can easily close your books by setting a password-protected closing date. You can still technically modify your records from the previous year, but you’ll need to use a special password to do so.

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What Are Undeposited Funds in Quickbooks?

If you use Quickbooks Desktop to keep track of your business’s financial transactions, you may come across the term “undeposited funds” when looking through your account. Based on the name alone, it’s difficult to surmise what exactly it means. As a result, many business owners take the wrong approach with their undeposited funds. So, what are undeposited funds in Quickbooks?

Overview of Undeposited Funds

In Quickbooks, undeposited funds is a default asset account that’s automatically created by the Quickbooks software. It acts as a standing account in which money that your business receives is temporarily stored until you deposit them into your desired bank account.

Whenever you receive a payment in Quickbooks, the software will place that money in a “Deposit To” account. And while you can specify your own “Deposit To” account for this purpose, Quickbooks uses undeposited funds as the default “Deposit To” account. All money that your business receives is transferred, by default, to the undeposited funds account. And it remains here until you deposit it in another account.

Tips on Using Undeposited Funds in Quickbooks

There are a few things to keep in mind when using undeposited funds in Quickbooks. First, Quickbooks Desktop allows you to deposit entire groups of payments. If a customer paid you multiple times (e.g. he or she made three or four purchases), for example, you can deposit all his or her funds into your bank account using the group function.

You’ll also find your bank account register doesn’t display the customer’s name when using undeposited funds.  This is because Quickbooks doesn’t look at the customer’s name because some deposits contain multiple payments from the same customer.

You can also change the default “Deposit To” account in which your business’s received payments are stored. This is done by logging in to Quickbooks Desktop and choosing Edit > Preferences > Payments > Company Preferences. From here, click the box labeled “Use Undeposited Funds as a default deposit to account” so that it longer contains a check mark. Once the check mark has been removed, click “OK” to save your changes and complete the process.

To remove deposited funds from undeposited funds, log in to your Quickbooks account and access Banking > Make Deposits > Payments and Deposits > select the payment > OK. Next, enter the negative total dollar amount in the field labeled “Amount,” and enter zero for “Deposit subtotal.”

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Help! I’ve Encountered The Wrong Balance in My Reconciliation Window

When you attempt to run a reconciliation report in Quickbooks, do you see the incorrect balance being displayed in the reconciliation window? Conventional wisdom should tell you that you can’t run an effective reconciliation report if the beginning balance is incorrect. This may occur from one of several different reasons. If you entered the wrong balance when creating the account, for example, it will display this balance in the reconciliation window. Alternatively, this problem may occur if you voided, deleted or changed the reconciled transaction. The good news is that you can fix an incorrect balance in the reconciliation window by following just a few simple steps.

If your reconciliation window shoes a $0 balance, you’ll need to recreate the opening balance. To do this, log in to your Quickbooks account and create a journal entry by accessing Company > Make General Journal Entries. From here, change the date so that it reflects the actual statement date of your account’s beginning balance. For the first field, choose the appropriate account from the drop-down menu. Next, enter the right opening balance in the “Debit” field.  For the second field, choose “Opening Balance Equity.” When you are finished, click “Save” to save your changes and complete the process.

You’ll now need to run a mini reconciliation to fix the beginning balance. This is done by accessing Banking > Reconcile. From here, choose the account from the drop-down menu and enter the statement date so that it reflects the journal entry. When finished, click “Continue.” Next, choose the journal entry for the “Deposits and Credits” field,” after which you can click “Reconcile Now” to begin the mini reconciliation. After it finishes, you should see the problematic transaction or transactions that’s causing the wrong beginning balance.

If your reconciliation windows has a positive balance that’s incorrect, you’ll need to run a reconciliation report. This is done by logging in to your Quickbooks account and choosing Reports > Banking > Reconciliation Discrepancy. From here, choose the account from the drop-down menu, after which you should see a list of all transactions that have been modified since the last report that you’ve run. You can then use this list to ensure that it matches your financial records. If you discover a discrepancy, make a note of the problematic transaction so that you can go back and fix it.

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What Does ‘Closing Books’ Mean in Quickbooks?

Quickbooks has become the preferred accounting software for business owners everywhere. Whether you operate a small-, medium- or large-sized business, you can’t go wrong with Quickbooks. It’s user-friendly interface, combined with constant updates and unparalleled customer support, simplifies the otherwise complicated and time-consuming task of recording your business’s financial transactions. However, it’s important that you familiarize yourself with “closing books” when using Quickbooks.

As most professional accountants know, “closing books” refers to the process of locking a particular time period so that new entries can no longer be added and existing entries can no longer be modified. When a new year rolls around, for example, you may want to close your books on the previous year. Assuming you’ve received payment for all outstanding invoices, you can close this year to ensure that neither you nor anyone else changes the entries.

The good news is that Quickbooks Desktop — the desktop version of Intuit’s popular business accounting software — makes automatic adjustments at the end of the year so that you don’t have to manually close your books. Known as year-end adjustments, they are created automatically using the start month of your fiscal year. So, how does it work? Basically, Quickbooks will automatically adjust your reported income and expense accounts so that they cancel each year, thereby allowing you to start the new year with a zero net income.

For December 31st of the previous year, Quickbooks will make closing entries to transfer the balance of your income and expense accounts to your retained earnings. Ideally, this should result in a zero net income while transferring your actual fiscal year’s net income to retained earnings.

But what if you want to review all changes that Quickbooks has made to your books? Thankfully, you can by following just a few simple steps. To see all changes made to your financial transactions, either on or before the closing date, log in to your Quickbooks account and click Reports > Accountant & Taxes > Closing Data Exception Report. Under “Closing date history,” you’ll see a list of all closing dates and the respective user who set them.

As a business owner, it’s important that you close your books at the end of a fiscal period. Neglecting to do so could result in accidental changes being made to your financial records, which can throw off your records come tax time.

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