Notes QuickBooks Exam - Section 1

To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. You notice that there is a large amount in the Opening Balance Equity account. Which 3 reasons could be causing this balance?

Opening balance for an inventory item was entered during the setup process The client entered an Opening Balance when creating an Other Current Asset account Opening balances were included when importing customers using the Import data tool

pass along discounts

(alternatively, the "Bill-My-Client" option) gives your clients up to a 12-month discount on their subscription and then reverts the monthly charge to the then-current list price. Under this option, your client is billed directly for the subscription.

to be listed in apps

- must be approved by intuit

With wholesale billing, you control how the cost is passed along to your clients. The benefits include:

-Bundling expenses: Add the cost into the services you provide to your clients -Easy tracking: Receive a monthly itemized bill for your subscription for easy tracking -Switch anytime: Remove clients from Wholesale billing seamlessly or cancel anytime

Which 2 features of QuickBooks Online Advanced aren't available to QuickBooks Online Plus clients?

-Unlimited accounts and classes -Advanced import and batch entry

Online Advanced Subscription

-Up to 25 users -Smart reporting powered by Fathom -Importing of invoices Custom user permissions -Dedicated Customer Success Manager -Premium care with Priority Circle -Self-paced online training

Plus Subscription

-budgets and reports (Fathom) -unlimited accounts and classes -advance import and batch entry -custom user roles -dedicated manager and online training -25 users & 3 accountants & premium care

Essentials Subscription

-growing business -Manage accounts payable & accounts receivable -recurring transactions -time-tracking -multicurrency -3 users & 2 accountants

How do you see client usage?

-open QBO > Gears Icon > Accounts & Settings > Select Usage Tab

What are the 5 main account types in the Chart of Accounts?

Assets Liabilities Income Expenses Equity

Once account numbers have been enabled, where can the numbers be assigned and edited?

Chart of Accounts

Where can she see which apps are connected to the client's account without logging out of the account?

Client Overview > Company Setup

Below is a series of steps for accepting an invitation from the client to become their accountant user: Open the email account you use for your Intuit ID You will see an invite from the client company Select the Accept button to accept the invitation ________________________ and you'll see a Success! box Select Continue What is the missing step?

Create a new username and password for the client company

What are the 4 Product/Service types that can appear on your client's purchase and sales transactions?

Inventory Non-inventory Service Discount

What are the first step(s) in the client onboarding workflow?

Meeting with client and gathering information

Which 2 statements are true regarding Intuit-approved QuickBooks Online apps?

You or your client can add apps to the client's account They must be developed by Intuit They must be free of charge They must be available via the Apps screen in QuickBooks Online Accountant or apps.com

In QuickBooks Online, where do you go to see all a company's categories organized into account types?

chart of accounts

What business industry type does this best describe?

retail and e-commerce

Where can you find the QuickStart template in QuickBooks Online Accountant to begin the client onboarding process?

work

With the wholesale discount,

you can offer your clients the best long-term discount we have available for QuickBooks Online. It is good for up to 50% off the current list price with the option to cancel at any time. Under this option, you are billed monthly for the subscription and will have an itemized view of all of your wholesale subscriptions for easy tracking.

By invitation

your client has already signed up to QuickBooks Online, they simply need to send you an invite. When you accept their invite, they'll be added to your QuickBooks Online Accountant, and appear in your client list.

Benefits of wholesale billing QBO

-reliable savings: An exclusive discount that only you can secure for your clients who are new to QuickBooks Online. Offers predictable savings with your firm billed at up to 50% off the current list price of the subscription. Flexible billing: Enables you to add a QuickBooks Online subscription as part of your services to clients, whether you bill hourly or flat fee. Effortless management: Gives you full control over your wholesale subscriptions with a monthly itemized bill, and the option to cancel at any time.

Self-Employed Subscriptions

-schedule C: Cash Basis -1099 income & W2 -Separate Business/ Personal Account -1 user and 1 accountant

Simple Start Subscription

-sole proprietor or single-owner corporations -full general ledger & accounts receivable -multiple sources of income -1 user and 2 accountants

How do I see a client's usage?

1. Open your client's QuickBooks Online 2. Select the Gear icon 3. Select Account and Settings 4. Select the Usage tab

Five different Subscription Plans

1. Self Employed 2. Simple Start 3. Essential 4. Plus 5. Advantage

How to enroll clients in the wholesale discount

1. Sign in to QuickBooks Online Accountant. 2.Enter your client's information in the Add client screen. 3. From the billing choices drop-down, select Wholesale discount (firm is billed). 4. Select the product(s) you recommend for your client, including Payroll if needed. 5. Select which team members you want to have access to the account, then Save.

Samantha is working through the Client Needs Assessment process. Which 4 areas should she focus on to gather information for her client?

1. Who is the client 2. What service does the Client need 3. How will the client work be completed 4. When does the client need their work completed. Explanation:- Areas sould she focus on to gather information for her client which start from who, what, when and how.

Which option completes this statement?

1. apps; 2. streamline

direct discounts

Direct discount is when you add a subscription through QuickBooks Online Accountant, but you want your client to pay. The client will be required to enter their credit card information when they sign in to the newly created subscription, but they typically get a discount on the pricing for a finite period of time.If clients sign up for Direct Discount, they get a limited-time discount on their subscription which then reverts to the listed monthly charge. Your client is billed directly for the subscription.

Where do you enable account numbers for the QuickBooks Online Chart of Accounts?

Gear > Account and Settings > Advanced > Chart of Accounts > Enable Account Numbers

Adding a new client

If your client is new to QuickBooks Online and hasn't signed up yet, you will want to add them via QuickBooks Online Accountant. If you, as their accountant and ProAdvisor, set this up for them, you'll be able to: Ensure they're signed up to the subscription level that best fits their needs Take advantage of discounts, like wholesale billing Access their books right away, using your own sign-in credentials, without waiting on an invitation Assign access to team members in your firm to work on their books. Multiple users can be signed in at the same time

Geoff Howard runs a haulage and warehouse business. The HQ is in Idaho but the business also has distribution centers in Maine and New Mexico. Geoff manages a team of around 50, made up of a mixture of employees and contractors. His truck drivers don't need access to QuickBooks Online, but his finance team, the separate sales team, and purchasing department all need access to different sets of data. You completed the Needs Assessment with Geoff, but at the next step he has identified the need for an additional feature.

QuickBooks Online Advanced Geoff has many requirements that QuickBooks Online Advanced is designed to solve. He's a large SMB with more than 10 users He would benefit from giving his sales and purchasing teams custom access to the financial data There are likely to be complex Class tracking and Location tracking requirements

Johanna's Jams and Jellies is looking to be set up on QuickBooks Online. Johanna wants to be able to set up specific roles for the 15 different users in her company, including providing access to her CPA, outsourced CFO, and an outside integration specialist and ProAdvisor. Which version(s) of QuickBooks Online would allow her to accomplish this?

QuickBooks Online Essentials, Plus, or Advanced

Remember Chris Grier, our master electrician? He's only been in business for two months and is very new to running his own business. He's relying on you to show him the ropes and look after his accounting so that he can focus on building his client list even further. Having already been through the Needs Assessment with Chris, his business needs have been identified and automatically appear next to the related QuickBooks Online feature in column A of the spreadsheet.

QuickBooks Online Plus Chris might only just be starting out, but he already requires Location tracking, Budgets, and Purchase Orders, which are all features of QuickBooks Online Plus.

Which subscription options, if any, include bank feeds, access from any device at any time, and integration with a wide range of apps?

QuickBooks Online Simple Start, Essentials, Plus, and Advanced

Marcia Applegate is a henna artist from California. She likes to keep her business simple with basic invoices and, aside from her expenses, only needs to track her mileage and income tax.

QuickBooks Self-Employed

Benefits of using apps for QuickBooks

Reduce data entry: Some apps automatically collect and input data, reducing manual-entry errors and eliminating inefficiencies caused when entering data into multiple programs Solve industry-specific tasks: Specialized apps solve industry- and client-specific pain points such as sales force management, estimation, and job-costing Streamline workflow processes: Apps can offer robust features that optimize common business processes such as inventory management, shipping, and e-commerce or field-service management Expand business insight: Customizable reporting apps offer user-friendly dashboards and graphics that improve visibility into performance metrics and provide deeper business insights Security: Some apps allow users to add information to QuickBooks Online without giving them access to sensitive company information

What is the missing step?

Sign in to the client's QuickBooks Online company

Which subscription level in QuickBooks Online would you recommend?

Simple Start, Essentials, Plus, or Advanced

You have a client who needs a QuickBooks Online solution that includes tracking for sales and sales tax. Which subscription level in QuickBooks Online would you recommend?

Simple Start, Essentials, Plus, or Advanced

Which 2 statements about Wholesale billing in QuickBooks Online are true?

The practice gets billed at wholesale prices for QuickBooks Online subscriptions The practice gets billed directly and determines the amount to bill the client

Which 4 statements regarding the Chart of Accounts are true?

To add a new account, open the Chart of Accounts by selecting Accounting from the Left Navigation Bar, then selecting New to open the Account window Uncategorized Income and Uncategorized Expense are default accounts for online banking activity If you add a new account, the detail type determines which financial statement this account will appear on When you specify a sales price/rate when setting up Products and Services, you link them to the Chart of Accounts The Sales of Product Income account is a default account when inventory is turned on

Which 2 actions can help this client quickly transfer her data into her new QuickBooks Online company?

Use Upload from file tool in the Banking Center to upload banking activity

You have just engaged a new client who has been in business for over a year and using Excel to track her monthly business activity. Which 2 actions can help this client quickly transfer her data into her new QuickBooks Online company?

Use Upload from file tool in the Banking Center to upload banking activity Select Transfer under the + New menu Select Migrate Data in the Account and Settings menu Import her existing data from Excel lists using the Import Data tool