How to Set a Budget in Quickbooks

Budgeting is an essential part of running a successful business. As a business owner, you’ll probably have to purchase various goods and services to facilitate your business’s operations. With a budget, you’ll have a better understanding of how much money your business can safely spend on these goods and services while staying profitable. If you use Quickbooks as your business’s accounting software, you can set a budget in just a few easy steps.

Check Your Last Fiscal Year’s Budget

Before setting a new budget in Quickbooks, you should check the budget of your business’s last fiscal year. You can do this by logging in to your Quickbooks account and selecting the “Company” menu, followed by “My Company.” Next, click the pencil-shaped icon and select “Report Information.”

You’ll need to pull up the specific report for your business’s last fiscal. Therefore, you’ll need to select the “Reports” menu, followed by “Company & Financial.” You can then choose either “Profit & Loss Detail” or “Balance Sheet Detail.” The former is used for profit and loss statements, whereas the latter is used for balance sheet statements. You can create a budget for either type by selecting the appropriate one.

Steps to Setting a Budget in Quickbooks

After checking the budget of your businesss’ last fiscal year, you can proceed to create a new budget for it. Go back to the home screen of your Quickbooks account and select the “Company” menu.  While hovering your cursor over the tab titled “Planning & Budgeting,” you should see an option for “Set Up Budgets.” Clicking this option will reveal “Create New Budget,” which you can select to set up a new budget in Quickbooks.

When setting up a budget in Quickbooks, you’ll need to specify a fiscal year. This can be either a calendar year or a separate period (a fiscal year). Along with a fiscal year, you’ll need to choose either “Profit & Loss” or “Balance Sheet.” Quickbooks offers budgets for both profit and loss and balance sheet reports. After performing these steps, select “Next” and proceed with the instructions. Depending on which option you choose, you may be required to enter additional information. Quickbooks will create a new budget for you once you’ve completed all the necessary steps. You can then find this budget in your Quickbooks account while using it to ensure that your business doesn’t overspend when buying goods or services.

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An Introduction to Quickbooks Online Advanced

Choosing the right accounting software is essential to your business’s success. Research shows that nearly half of all small- and medium-sized businesses spend over 40 hours a year on accounting. With the right software, you’ll be able to record and track financial transactions more quickly and accurately. Intuit, however, offers several types of accounting software, one of which being Quickbooks Online Advanced. If you’re thinking about using it, there are a few things you should know about Quickbooks Online Advanced and how it works.

What Is Quickbooks Online Advanced?

Quickbooks Online Advanced is the premium version of Intuit’s cloud-based accounting software. There are two primary types of Quickbooks software: desktop and cloud. Desktop refers to Quickbooks Desktop, which is installed and operated locally. Cloud refers to Quickbooks Online, which is installed and operated on the cloud. Quickbooks Online Advanced is the premium version of the latter type.

Features in Quickbooks Online Advanced

Being that it’s the premium version of Quickbooks Online, it shouldn’t come as a surprise to learn that Quickbooks Online Advanced is packed with features. It offers more features than the standard version of Quickbooks Cloud.

Quickbooks Online Advanced offers batch invoicing, for example. With batch invoicing, you can create and send multiple invoices to groups of customers in batches. It’s a faster way to facilitate your business’s invoices. If your business has a lot of customers — and your business uses invoices to collect payments — you may want to use this feature in Quickbooks Online Advanced. Batch invoicing eliminates the need for creating and sending invoices individually. Intuit, in fact, claims that batch invoicing is 37% faster than traditional invoicing.

Quickbooks Online Advanced also comes with premium support. You’ll have 24-hour access to Intuit’s support team. If you encounter a problem — or if you simply need an answer to a question — you can reach out to Intuit’s support team by phone or email. You can even connect your Quickbooks Online Advanced account to your Google account. In doing so, you’ll be able to export your business’s accounting data to Google Sheets.

Other features in Quickbooks Advanced include the following:

  • 1099 preparation
  • Inventory tracking
  • Location tracking
  • Payment scheduling
  • Profitability tracking
  • Class tracking
  • Workflow automation
  • Company data restoration
  • Custom chart building
  • Role-based access customization

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How to Void a Payment in Quickbooks

Have you received a payment from a customer that you need to void? Maybe the customer accidentally paid twice, or perhaps the customer requested a refund. Assuming you use Quickbooks Payments, you can easily void payments from customers or other business contacts in just a few simple steps.

Steps to Voiding a Payment in Quickbooks

To void a payment in Quickbooks, log in to your Quickbooks Payments account and click the “Processing Tools” menu at the top of the homepage. You should now see a list of several options. From this list, select “Reverse a Transaction.” On the next screen, you’ll see a list of all your payments that have been processed.

Depending on how many payments you have, you may need to filter this list to find the specific payment that you want to void. You can use the filtering options combined with the “Search” function to narrow down the payments. After locating the specific payment, click it and choose “Submit.” Quickbooks will then void the payment so that the customer isn’t charged for it.

Steps to Partially Refunding a Payment in Quickbooks

Using the aforementioned method, you can easily void a customer’s payment in Quickbooks. But what if you only want to void part of a customer’s payment? Fortunately, Quickbooks supports partial refunds for payments. To do this, you’ll need to log back in to your Quickbooks Payments account, followed by selecting the “Processing Tools” menu and then “Reverse a Transaction.”

Once you’ve found the transaction for which you’d like to issue a partial refund, select it. For the “Amount” field, enter the amount of the payment that you want to refund. If it’s a $100 and you want to issue a $50 refund, for instance, enter $50 in the “Amount” field. When finished, click “Submit.”

Quickbooks will then ask you if you’d like to proceed with the full refund. Since it’s a partial refund, click “Cancel,” after which you can enter the amount of the partial refund — the same amount from the previous step — in the available field. When finished, click “Continue.” You can then either email or print the receipt confirming the partial refund.

In Conclusion

Voiding payments is a regular occurrence when running a business. Unless your business operates exclusively on cash, you’ll probably encounter instances in which customers need to be refunded. With Quickbooks Payments, you can void payments and partially refund payments.

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5 Tips on Choosing a Password for Quickbooks

Your Quickbooks company file probably contains a lot of sensitive data. From customers’ names and addresses to credit card numbers, bank account numbers and more, you’ll need to protect this data from prying eyes. Fortunately, you can lock down your Quickbooks company file by creating a strong password for it. Below are five tips on how to choose the right password that lowers your risk of data breach.

#1) Use a Minimum of 7 Characters

According to Intuit, passwords created for Quickbooks company files should consist of at least seven characters. You can’t create a password, in fact, that’s shorter than seven characters. Quickbooks requires the use of at least seven characters for all file passwords.

#2) Use Letters and Numbers

Avoid using all letters or all numbers in your password. Instead, create an alphanumeric password that contains both letters and numbers. Mixing up your password with both letters and numbers will inevitably make it stronger and, therefore, harder to crack.

#3) Lowercase and Uppercase

For the letters in your password, it’s recommended that you use a combination of lowercase and uppercase letters. Some people make the mistake of only using lowercase letters or uppercase letters, believing it poses no risk. In doing so, they end up with a weak password that places their businesses at risk for a data breach. For a higher level of security, you should use both lowercase letters and uppercase letters in your password.

#4) Make It Unique

Always create a unique password for your Quickbooks company file. In other words, don’t reuse the same password from one of your other accounts or services. You may have one or more “favorite” passwords that you use for your email account, YouTube account or other accounts. Rather than using one of these existing passwords for your Quickbooks company file, create a new password. Unique passwords are far more secure than old and existing passwords. By creating a unique password, your Quickbooks company file will be more secure.

#5) Change Every 90 Days

Even with a strong password, you should consider changing it once every 90 days. Passwords can become compromised. Maybe your computer becomes infected with malware, or perhaps a hacker discovers your password through a brute-force attack. Regardless, changing your password once every 90 days will minimize your risk of a data breach.

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How to Add Expense Categories in Quickbooks

Expenses are a common occurrence when running a business. Whether your business sells products, services or a combination thereof, it will inevitably incur expenses. You’ll need to track these expenses, of course, for accounting and tax purposes. Fortunately, Quickbooks makes it easy to track expenses. In Quickbooks, you can use expense categories to group similar expenses together. With expense categories, you’ll be able to see all expenses that fall under a given category. How do you add expense categories in Quickbooks exactly?

Steps to Adding Expense Categories

To get started, log in to your Quickbooks account and click the “Accounting” menu at the top of the home page, followed by “Chart of Accounts.” From the “Chart of Accounts,” find the option titled “New” and click it. You can select either “Expense” or “Other Expense.” for the type of account.

You’ll also have to give the new expense category a name. To name the expense category, click “Detail Type,” followed by entering a name in the available field. Keep in mind that you can enter any name for the expense category. With that said, it’s recommended that you give the expense category a descriptive and relevant name. If you’re creating an expense category for utilities, for example, you may want to name it “utilities.” If you’re creating an expense category for supplies, on the other hand, you can name it “supplies.” Using a descriptive and relevant name will allow you to identify the expenses more easily.

How Expense Categories Work

With a new expense category, you’ll have the option of assigning all related expenses to that category. Known as expense tracking, it’s a native feature in Quickbooks. You can track your business’s expenses using this feature. Simply add an expense category, after which you can assign all relevant expenses to that category. When reviewing your business’s financial transactions in Quickbooks, you can sort or filter them by the appropriate category. Quickbooks will show you all of the expenses that you’ve assigned to the selected category.

To recap, you can add expense categories from the “Chart of Accounts” section in Quickbooks. Once added, you’ll have the option of selecting the new category when recording your business’s expenses. Just remember to choose the right category. After all, you can only track expenses if you assign them to the right categories.

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Single-User vs Multi-User Mode in Quickbooks: What’s the Difference?

Quickbooks offers two different hosting modes: single-user and multi-user. As you may have guessed, single-user mode is designed for a single user, whereas multi-user mode is designed for multiple users. If you’re planning to use Intuit’s popular accounting software, you’ll need to determine which mode is right for your business’s needs. Some businesses require single-user mode. Others require multi-user mode. To learn more about the nuances between these two modes, keep reading.

The Basics of Single-User and Multi-User Modes

Single-user and multi-user are the two main types of modes offered in Quickbooks Desktop. These mode types refer to the way in which you — or someone else who works at or for your business — accesses your company file. Single-user mode means that only one user will be able to access your company file. Multi-user mode, conversely, means multiple users will be able to access your company file.

Portable Company Files

If you’re hoping to create one or more portable company files, you’ll need to enable multi-user mode in your Quickbooks account. Portable company files is a feature that’s exclusive to multi-user mode. You can’t create portable company files in single-user mode. Rather, you’ll have to switch to multi-user mode.

Disable Quickbooks Manager

In addition to creating portable company files, multi-user mode also allows you to disable Quickbooks Manager. Quickbooks Manager, of course, is a server feature that allows you to share your company file with other computers. When enabled, you can use this feature to send your company file to other computers on your business’s network. You can disable Quickbooks Manager in multi-user mode.

Manual Payroll

Manual payroll, on the other hand, is only available in single-user mode. If you want to use manual payroll, you’ll need to configure your Quickbooks account to single-user mode. Multi-user mode supports direct deposit payroll — a form of automated payroll — but it doesn’t support manual payroll.

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

Now that you know the differences between them, you might be wondering how to switch between single-user and multi-user mode in Quickbooks. In Quickbooks Desktop, you can change between these two mode types by accessing the “File” menu. From the “File” menu, you should see an option for “Switch to Single-User Mode” or “Switch to Multi-User Mode.” Selecting one of these options will change the mode type.

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What Are Other Current Assets in Quickbooks?

When using Quickbooks to track your business’s financial transactions, you may come across other current assets. It’s a category of assets displayed in Intuit’s popular accounting software. Like all assets, other current assets consist of things — both tangible and intangible — that your business owns. You can typically convert assets into cash, thus increasing your business’s cash flow. Other current assets, however, are distinguished from traditional assets in a few key ways. What are other current assets in Quickbooks exactly?

Overview of Other Current Assets

Other current assets refer to non-standard assets that can be quickly converted into cash. In accounting, current assets are defined by their fast conversion process. They can be converted into cash within a single operating cycle, such as one year. Some current assets are standard or traditional. There are also other current assets that fall under a separate category.

Traditional current assets consist of cash, account receivables (AR), inventory, prepaid expenses and securities. Regardless of what type of business you operate, it probably has traditional current assets such as these. All businesses use them as part of their daily operations. With that said, not all assets fall under this category. There are non-standard assets that encompass other items of value. Known as other current assets, they too can affect your business’s operations.

Common examples of other current assets include the following:

  • Payroll advancements
  • Real property
  • Investments

Current vs Non-Current Assets

In addition to other current assets, items of value owned by your business can be classified as non-current assets. Some assets are current, whereas others are non-current. Current assets, as previously mentioned, include those that can be converted into cash within a single operating cycle. Most businesses use a 12-month period for their respective operating cycle. If you can current an asset into cash within one year, it’s typically considered a current asset.

Non-current assets, on the other hand, have a longer conversion process. You can’t convert them into cash within a single operating cycle. Also known as long-term assets, they take longer than a single operating cycle to convert into cash. Non-current assets may include vehicles, machinery, equipment, patent and trademarks. They are considered non-current assets because of their long conversion process.

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How to Find Uncleared Checks in Quickbooks

Are you trying to find uncleared checks? Whether you’re making a deposit or payment, it typically takes a few days for banks to clear a check. Until this happens, the respective check will remain in an uncleared status. You can easily find uncleared checks, however, if you use Quickbooks. Quickbooks offers a reporting feature that allows you to filter checks by their status, thus revealing which checks have cleared and which checks haven’t cleared.

Run a Bank Report

The easiest way to find uncleared checks in Quickbooks is to run a bank report. In Quickbooks Online, you can run a bank report by navigating to the “Accounting” menu, followed by “Chart of Accounts.” From here, select the bank account for which you’d like to search for uncleared status. You can then select “Run Report” under the “Action” menu.

Filter By Uncleared Status

Assuming you followed the steps listed above, you’ll need to filter the results of your bank report to pinpoint your uncleared checks. There are several filtering options available, one of which is uncleared status. For the “Report period,” menu, click the drop-down button and select “All Dates.” Next, click “Filter.” You should then see a box labeled “Cleared.” Clicking this box will allow you to choose “Uncleared.” This option will essentially filter the results by the uncleared status. In other words, you’ll only see uncleared checks associated with your selected bank account.

Sort By Cleared Status

In addition to filtering by uncleared status, another way to find uncleared checks in Quickbooks is to sort by cleared status. You can do this by going back to the “Accounting” menu and selecting “Chart of Accounts.” Next, select the bank account for which you are trying to find uncleared checks. After pulling up the bank account, click “View Register,” followed by “Run report” under the “Action” menu. For the “Report period” menu, choose “All Dates.”

You should see a menu labeled “Sort.” Clicking this menu will allow you to choose sorting options, one of which being cleared or “Clr.” Selecting the cleared status sorting option will place all of the cleared or uncleared checks at the top of the results. Using either this method or the former method, you can easily find uncleared checks in Quickbooks.

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What Is a Progress Invoice in Quickbooks?

Have you come across progress invoices in Quickbooks? If so, you might be wondering how they work. Countless businesses use invoices. After completing a service for a client, they’ll send the respective client an invoice to collect payment. Progress invoices are similar, but they actually consist of multiple invoices rather than a single invoice.

Overview of Progress Invoices

A progress invoice is a sequence of invoices that are sent to a client throughout the completion of a service. Depending on the type of business you operate, you may want to use them. With a traditional invoice, the client will have to pay for the entire cost of the service all at once. With a progress invoice, the client can make multiple, smaller payments throughout the completion of a service.

How to Turn on Progress Invoices

You can turn on progress invoices by clicking the “Settings” menu in Quickbooks and selecting “Account and settings.” From the “Sales” tab, navigate to the “Progress Invoicing” section and click the “Edit” button. You should see an option labeled “Create multiple partial invoices.” Clicking the box next to this option will place a checkmark in it, thus enabling progress invoices with your Quickbooks accounts. To complete the progress, click “Save and Done.”

Steps to Create a Progress Invoice Template

After turning on this feature, you can create a progress invoice template in just a few easy steps. Go back to the “Settings” menu and choose “Custom form styles.” Next, click “New style,” followed by “Invoice.” Quickbooks will then ask you for some basic information about the template. You’ll need to give it a name, for example, and you’ll need to choose a design for it. When finished, click “Done” to finish creating the template for your progress invoice.

Now that you’ve created a progress invoice template, you should set it as the default template. You can do this by selecting the “Custom Form Styles” option. Under the “Action” column, click the drop-down menu and choose “Make default.”

Keep in mind that progress invoices work in conjunction with estimates. After creating an estimate, you can turn it into a progress invoice, which will consist of multiple invoices for a given service or project. Following the steps listed here will allow you to turn on progress invoices and create them in Quickbooks.

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How to Use Projects to Track Income and Expenses in Quickbooks

Does your business perform projects as part of its operations? If so, you’ll probably want to track the income and expenses associated with them. Projects can cost money to perform, but they can also generate money in the form of revenue. Fortunately, Quickbooks has a tracking feature that’s designed specifically for projects. It’s available in Quickbooks Online Plus as well as Quickbooks Accountant. To learn more about this tracking feature and how to use it for your business’s projects, keep reading.

Enable Projects

By default, projects are disabled in Quickbooks. You’ll need to enable them before you can begin tracking income and expenses associated with your business’s projects. To enable this feature, log in to your Quickbooks account and click “Settings,” followed by “Account and setting.” Under the “Advanced tab,” navigate to the “Projects” section and choose “Edit.” You should then see an option labeled “Organize all job-related activity in one place.” Selecting this option will enable project-based tracking in your Quickbooks account.

Create Projects

Once enabled, you can create new projects for tracking purposes. From the home screen of Quickbooks, click the “Projects” menu and choose “Start a Project” to create your first project. Alternatively, if you’ve already created a project, you can choose “New project” to add a new project to your account.

You’ll need to create a name for your project. Quickbooks doesn’t require you to any specific format for the project’s name. Nonetheless, it’s recommended that you choose a descriptive and memorable name that reflects the projects. After creating a name for the project, you can select the customer for whom you are performing it. There should be a drop-down menu next to the project creation option. Clicking the drop-down menu will allow you to choose a customer from your business’s list of known customers.

Adding Income and Expenses

In addition to creating a project, you’ll need to add income and expenses to it. You can open the project in Quickbooks, followed by selecting the “Add to project” to record income and expenses with which it’s associated.

Quickbooks lists several options for adding income and expenses to projects. You can select either “Invoice,” “Receive payment,” “Expense,” “Estimate,” Bill” or “Purchase order.” Regardless, selecting any of these options will tag the project with the appropriate income or expense.

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