Quickbooks Online Essential Training

What is a credit memo in QuickBooks Online?

A credit memo in QuickBooks Online is a document that reduces the amount of an invoice, either partially or in full.

How can a journal entry affect the balance sheet of a business?

A journal entry can affect the balance sheet by changing the values of accounts on the balance sheet, such as assets, liabilities, and equity. Journal entries are used to make adjustments to accounts, which can ultimately change the values of accounts on the balance sheet. For example, a journal entry to increase accounts receivable will increase the total assets on the balance sheet.

In QuickBooks Online, what is the difference between a transfer and a credit card payment?

A transfer is a transaction between two balance sheet accounts, while a credit card payment is a transaction between a credit card account and a bank account. A credit card payment, on the other hand, is a transaction between a credit card account and a bank account, and is used to pay off the balance owed on a credit card.

What is the difference between a Sales Receipt and an Invoice?

Sales Receipts are used for recording sales when payment is received at the time of sale, while Invoices are used to request payment for goods or services provided and allow customers to pay at a later time. This distinction is important for managing cash flow and keeping track of outstanding payments.

What type of information do sales and item reports provide beyond basic financial statements?

Sales and item reports provide a higher level of detail beyond basic financial statements, including specific products or services sold, quantities, and revenue.

What is an example of "drilling down" in QuickBooks reports?

Select a total line in a summary report to see a detailed version with all the transactions adding up to that total. Drilling down allows you to see the details behind a summary report by selecting any total line and seeing a detailed version with all the transactions adding up to that total.

What is a vendor bill in QuickBooks Online?

a purchase from a vendor that you owe money for You can use vendor bills to track expenses and obligations, and to create accurate financial reports.

What is a statement in QuickBooks Online?

a summary of transactions for a customer, including outstanding invoices and payments made The statement shows the customer's current balance, and can be customized with different levels of detail depending on the customer's needs. Mostly used to track the summary of transactions for a customer, including outstanding invoices and payments made.

What are examples of Open Balance Reports in QuickBooks Online?

Accounts Receivable related reports like Customer Balance Summary Open balance reports are generated to understand who owes you money (Accounts Receivable) and who you owe money to (Accounts Payable). These reports provide a quick understanding of future cash flow and enable businesses to allocate resources accordingly.

What is an invoice in QuickBooks Online?

An invoice is a document that outlines the products or services a business has provided to a customer, along with the amount due and payment terms. Invoices are the customer related transaction used to track a sale that will be paid in the future. It allows to track product and services in the document.

Which accounts carry a balance in QuickBooks Online?

Balance Sheet Accounts such as Banks, Fixed Assets, Long Term Liabilities, etc. Any Balance Sheet account can have a beginning balance and carries a balance even if it's zero.

What are basic financial statements?

Financial statements provide a summary of a company's financial transactions during a specific time frame, and includes reports such as the Profit & Loss and Balance Sheet. These statements are crucial for businesses to evaluate their financial status, make informed decisions, and monitor their progress over time.

In QuickBooks Online, how can you create a new item for use in transactions?

From the Gear icon menu, select Products and Services, then click New. To create a new item for use in transactions in QuickBooks Online, users can go to the Gear icon menu, select "Products and Services", and click "New". From there, they can select the appropriate type of item (service, non-inventory, etc.), enter a name and description, and set up any necessary pricing or cost information.

In QuickBooks Online, where can you find the option to customize your company's sales forms, such as invoices and receipts?

In the Account and Settings menu, under the Sales tab To customize the look and content of your company's sales forms in QuickBooks Online, such as invoices and receipts, users can go to the Account and Settings menu and select the Sales tab. From there, they can access a variety of customization options, including adding a logo, customizing the template, and choosing what information to display on the form.

In QuickBooks Online, where can you go to customize your list income and expense categories?

In the Gear icon menu, under Chart of Accounts To customize your "income/expense categories" AKA: Accounts, you go in the chart of accounts in QuickBooks Online, users can go to the Gear icon menu and select "Chart of Accounts". From there, they can drag and drop accounts to reorder them and click the pencil icon to edit an account's name, description, or category.

What does "Match" mean while working in Bank Feeds in QuickBooks Online?

It indicates that a transaction in the Bank Feeds has been matched to an existing transaction in QuickBooks. When a transaction in Bank Feeds is matched to an existing transaction in QuickBooks, it means that the two transactions have been recognized as the same transaction and are now linked. This helps to prevent duplicate entries and ensures accurate record-keeping.

What is the key benefit of downloading transaction data from your bank or credit card company in QuickBooks Online?

It speeds up data entry significantly by automatically importing transactions into QuickBooks Online. Downloading transaction data from your bank or credit card company in QuickBooks Online speeds up data entry significantly by automatically importing transactions into QuickBooks Online. This helps reduce manual data entry errors, and saves time by not having to enter every transaction manually.

Which browser tool can be used to open multiple pages/screens in QuickBooks Online?

Multiple tabs QuickBooks Online allows users to open multiple tabs in the same browser window, which can be useful when working on multiple tasks at once. Users can simply click on the "+" icon next to the existing tab to open a new tab, or they can use the keyboard shortcut Ctrl + T to do the same thing. Once multiple tabs are open, users can switch between them by clicking on the corresponding tab.

How are tags different than accounts?

Tags provide an additional way to track and categorize transactions beyond the traditional account and category system. They can be used for more specific purposes, such as tracking a specific project or department, or for grouping transactions across different accounts.

What are the two dashboards available in QuickBooks that provide a visual overview of a business?

The Business Overview and cash flow Planner are two dashboards in QuickBooks that provide users with visual representations of key metrics for their business, such as income and expenses, account balances, and trends over time.

What is the difference between a Profit and Loss and Balance Sheet?

The Profit and Loss reports on a company's revenue and expenses over a specific period of time, while the Balance Sheet reports on a company's assets, liabilities, and equity at a specific point in time. The Profit and Loss and Balance Sheet reports provide different types of information about a company's financial health, with the former focusing on revenue and expenses over a period of time and the latter focusing on assets, liabilities, and equity at a specific point in time.

How do you customize the available fields that will show as columns in a detailed report?

To customize the available fields that will show as columns in a detailed report, you need to click on the "Customize" button on the report and select the desired fields to add as columns.

What is the purpose of a vendor credit in QuickBooks Online?

Vendor credits are used to make adjustments to reduce the amount owed to a vendor, such as for returns or overpayments.

In QuickBooks Online, what information can be stored for each customer created in the system?

contact information, payment preferences, and transaction history QuickBooks Online allows for much more information to be stored for each customer, including contact information such as phone numbers, email addresses, and mailing addresses, as well as payment preferences such as preferred payment methods and terms. In addition, transaction history can be stored for each customer, providing a record of invoices, payments, and balances.

In QuickBooks Online, what are some of the elements that can be customized in a custom form style (template)?

logo, font color, available fields, etc. QuickBooks Online allows users to customize many elements of their custom form styles (templates), including adding their company logo, changing font colors and sizes, choosing available fields to include on the form, and adding custom fields for unique data. These customization options help businesses to create forms that are on-brand and visually appealing to customers.

Where can you find the navigation bar in QuickBooks Online?

on the left-hand side of the screen

What is a bank reconciliation in QuickBooks Online?

the process of matching transactions entered in QuickBooks Online with transactions recorded by your bank or credit card company A bank reconciliation in QuickBooks Online is the process of matching transactions entered in QuickBooks Online with transactions recorded by your bank or credit card company. This helps ensure that your financial records are accurate and up to date, and catches any discrepancies or errors early.

In QuickBooks Online, what are bank feed rules used for?

to automatically categorize and match downloaded transactions to existing accounts or create new transactions based on certain criteria Bank feed rules in QuickBooks Online are used to automatically categorize and match downloaded transactions to existing accounts or create new transactions based on certain criteria. This can help speed up data entry and ensure accuracy by automatically assigning categories and accounts to downloaded transactions based on specific conditions.

In QuickBooks Online, what is the purpose of setting up tag groups and tags?

to categorize transactions for alternate reporting and analysis Setting up tag groups and tags in QuickBooks Online allows users to categorize transactions for alternate reporting and analysis purposes. Tags can be used to group transactions by specific projects, locations, departments, or any other category that is relevant to the business. These tags can then be used to generate alternate reports that separate financial statements and operations reports.

What is the purpose of the New button (+) in QuickBooks Online?

to create a new transaction or record in QuickBooks Online The +New button is used to create new transactions or records in QuickBooks Online, such as invoices, bills, or customers. Users can click on the +New button from anywhere in QBO to quickly access the most commonly used transaction types.

What is the purpose of reconciliations accounts in QuickBooks Online?

to ensure that the company's financial records match the bank's records and to catch any discrepancies or errors This helps ensure that your financial records are accurate and up-to-date, and can help prevent potential problems such as overdraft fees, bounced checks, or fraudulent activity.

In QuickBooks Online, what is the purpose of creating expenses paid from credit cards?

to enter credit card charges and credit card refunds/credits to match the statement's transaction detail Creating expenses paid from credit cards in QuickBooks Online is used to enter credit card charges and credit card refunds/credits to match the statement's transaction detail. This includes payments made to vendors, contractors, or employees using a credit card, and can be used to track the payment status of these transactions.

In QuickBooks Online, what is the purpose of creating expenses paid from bank?

to enter transactions paid from the bank that are electronic in nature (not checks) Creating expenses paid from bank in QuickBooks Online is used to enter transactions paid from the bank that are electronic in nature (not checks). This includes payments made via electronic fund transfer (EFT), automated clearing house (ACH), wire transfer, or other electronic payment methods.

In QuickBooks Online, what is the purpose of setting up a vendor as a 1099 subcontractor?

to indicate that payments made to the vendor may be subject special reporting requirements, such as creating a 1099-NEC form. By designating a vendor as a 1099 subcontractor in QuickBooks Online, the user is indicating that payments made to that vendor may be subject to 1099 reporting requirements. This information can be used to generate the necessary tax forms and filings at the end of the year.

What is the purpose of an A/P Aging Report?

to list all the vendors you owe money to with columns adding up the amounts owed grouped by the bills due date The A/P Aging Report is used to track the amounts owed to vendors and how long they have been outstanding, which helps in managing cash flow and paying bills on time.

What is a journal entry mostly used for in QuickBooks?

to make adjustments to the balance or value of any account A journal entry is used to make adjustments to the reports and comply with accounting standards, such as correcting an error, allocating expenses or revenue, or adjusting inventory or asset values.

In QuickBooks Online, what is the purpose of writing and printing checks?

to record payments made using checks, which are still a common form of payment in many businesses This includes payments made to vendors, contractors, or employees, and can be used to track the payment status of these transactions.

In QuickBooks Online, what is the purpose of creating a sales receipt?

to record sales with detailed product/service items and at the customer level, without tracking accounts receivables Creating a sales receipt in QuickBooks Online allows businesses to record sales with detailed product/service items and at the customer level, without tracking accounts receivables. Sales receipts are used when immediate payment is received, and can be used to track sales for cash, check, or credit card transactions.

What is the purpose of receiving customer payments in QuickBooks Online?

to record the payment made by the customer for the products or services they purchased Receiving customer payments in QuickBooks Online is necessary to record the payment made by customers for the products or services they purchased, which helps businesses keep track of their accounts receivable and the cash they receive. The incorrect answers are not related to the topic of receiving customer payments or provide incorrect information.

In QuickBooks Online, what is the purpose of creating a new account in the chart of accounts?

to track a specific type of income, expense, asset, liability, or equity The chart of accounts in QuickBooks Online is used to organize all financial transactions and create meaningful financial reports. Creating a new account allows users to track a specific type of income, expense, asset, liability, or equity and ensures that these transactions are properly reflected in the financial reports.