Have you ever wondered how QuickBooks performs your accounting? QuickBooks software provides an interface that allows you to use forms such as checks, deposit slips and invoices, making the accounting process more comfortable for the average business owner or manager. By using the built-in functions that pertain to your business, you are able to perform your company accounting by simply recording your vendor activities, customer activities, banking transactions, payroll checks and taxes. QuickBooks handles the accounting portion of each transaction behind the scenes.
Your company information can be located on the upper right corner of the home page or from the "Company" button on the top menu bar. You begin by inspecting your chart of accounts, which needs to be adequate for your accounting records. Every business may have a different chart of accounts. From the "Company" menu, you can also make journal entries, which only your accountant should perform. Once your company information is complete, you will rarely use this section.
Vendor information is located along the top one third of the home page or via the "Vendor" button on the top menu bar. This is the payables portion of your accounting system. As you receive bills, record the information in the "Enter bills" area. As bills come due, record payments in the "Pay bills" area. QuickBooks reporting features allow you to monitor your bills coming due, so you can hold your money for the longest possible period. When you pay your bills, you choose the account you pay from, and the software records the bank register side of the transaction automatically. You can also track 1099 data for your vendors by checking the 1099 feature on each applicable vendor.
Customer data is located in the middle third of the home page or from the "Customer" button on the top menu bar. Customer data is the receivable portion of your accounting system. Start with or without sales orders and estimates. Convert them to invoices, and send them to your customers. You can issue credits and refunds against existing invoices as necessary by using the "Refunds and credits" button. When you receive payments against invoices, record the transaction by using the "Receive payments" button. This reduces the amount owed by your customer but does not handle the banking side of the transaction, which involves the deposit.
The banking section of your program can be located on the lower right corner of your home screen or from the "Banking" button on the top menu bar. Once you receive payments, use the "Record deposits" button to record the date, amount and account for each deposit. In addition to recording deposits, you can write checks that did not have a bill, print checks and reconcile from the banking section. Each respective function has a button.
Employee-related accounting and record-keeping functions are located in the bottom third of the home screen or from the "Employees" button on the top menu bar. Your primary accounting function in the employee section is payroll. You run payroll by clicking on the button titled "Pay employees." After running payroll, you can also pay your liabilities by using the "Pay liabilities" button. For additional support, contact a QuickBooks ProAdvisor.
Jeremy Slaughter began writing business and hobby articles in 2009 after completing his master's degree in accounting at the Keller Graduate School of Management. As a tax, accounting and small business expert, Slaughter co-founded an accounting and tax firm where writing plays a daily role.