600 Blair Park Road, Suite 280 Williston, VT 05495 QuickBooks Professional Advisor Spring 2003 600 Blair Park Rd - Suite 280, Williston VT 05495 ~ www.jda-cpa.com QuickBooks Queries New Features in QuickBooks 2003 Each new version of QuickBooks increases the amount of information available to your business. Some of the new features in version 2003 include: ♦Automatically create a budget ♦Improved report customization ♦Improved customer statements with the information you want ♦Advanced options for backup ♦More printing options for forms ♦Improved tracking for all income and expenses by class ♦Customized E-mail forms ♦Run faster by storing old data ♦Now integrates with more software applications ♦Password-protected close data and closing date exception report ♦QuickBooks Remote Access - access your QuickBooks date file remotely, no matter where you are ♦Easier reconciliation reporting ♦Sort and reorder columns in reports ♦Organize and group memorized reports ♦More journal entry options JD&A News and Comments In July of 2002, Mary K. Loyer was awarded the professional designation of Certified Bookkeeper through the American Institute of Professional Bookkeepers. This distinction is earned through exam, demonstration of a broad level of skill and knowledge and the ability to apply both. Client Reminders: We strongly recommend you have us review your QuickBooks data quarterly to ensure you have accurate inhouse financial statements and to avoid problems or surprises at year-end. The first quarter review is particularly important. Many of our clients have found it cost effective to have us perform a monthly bookkeeping review service to include processing the bank reconciliation, post the necessary month end entries and process payroll tax filings. The benefits of using our service are: - A Certified Public Accountant with years of experience supervises all work. - Local support - a professional familiar with your business is processing and reviewing your data. - Your bookkeeping and accounting are taken care of, which allows you to concentrate more on running your business. - It creates a layer of internal controls. Please contact us to learn more about our engagement contracts for services in QuickBooks Training, QuickBooks SupportPlan and our newly added ASAP(Accounting Services Annual Plan) Program. Query: Should I use account numbers? The chart of accounts is the most important QuickBooks list. It is used to track transactions and generate financial reports. The chart of accounts should be designed to include the accounts necessary for financial and income tax reporting. Adding numbers can help identify the type of accounts. If the account number field does not appear in the chart of accounts edit window, you need to set the preference as follows: Edit, Preferences, Accounting, Company Tab, Use account numbers, then click OK. Using the Working Trial Balance we provide you with your business tax return as a guide for assigning account numbers will assist you as well. The following series is an example of account numbers that may be used. CHECK OUT OUR ALL NEW WEBSITE - WWW.JDA-CPA.COM Query: Should I use account numbers? (continued) Category Assets Accounts Receivable Fixed Assets Liabilities Accounts Payable Equity Revenues Cost of Goods Sold Expenses Other Income and Expenses Account Numbers 1000-1999 1200 1500-1699 2000-2999 2000 3000-3999 4000-4999 5000-5999 6000-6999 7000-7999 Query: Which reports should I be reviewing monthly? At each month end you should print and analyze a Balance Sheet Comparison, Profit and Loss Comparison, Accounts Receivable Aging and Accounts Payable Aging. These reports will allow you to analyze cash flow, look for trends and view accounts for accuracy. Query: How do I change or delete and invoice dated in the prior year? To change an invoice in a prior year, you need to create a credit memo in the current year. We recommend you use the original invoice number and add a ‘C’ on the end for an easy crossreference. To reduce the amount of the original invoice, select the items used in the orginial invoice and enter the adjustment amount. Save and Close. When you receive payment, enter the customer name, mark the invoice, then click Set Credit and mark the credit to apply. Save and Close. If you need to adjust the invoice to zero, you will need to create a credit memo as well. Create using the steps above. If the invoice adjustment is due to bad debt, create an item ‘Bad Debt’ and use the bad debt expense account. To clear the invoice from Customer Receivable reports you will need to select Receive Payments. Select the customer, leave the amount field blank, click on Set Credit, apply the credit, mark the invoice and click Save and Close. Query: How do I track classes and jobs for wages and payroll? You can track employee wages and payroll taxes for a job and/or class. To do so you need to change your payroll preference. From the edit menu, choose Preferences, Payroll and Employees, select Report all payroll taxes by Customer: Job and Class. You can assign one class per entire paycheck or earnings item. When creating paychecks you have a field to select the class and/or customer: job for the wages. Whichever you assign for the wages, it will automatically apply to the payroll taxes. Query: What versions of QuickBooks can we receive technical support for? In an ongoing effort to provide high-quality customer support, Intuit periodically retires older versions of QuickBooks, discontinuing support and most services for those versions. Sunsetting older versions of QuickBooks allows them to focus their resources on supporting their more current products, which are used by the vast majority of QuickBooks cusomters. QuickBooks has developed a Product Sunset Policy as follows: Effective 4-30-03, Inuit will sunset QuickBooks version 2000 for Windows, discontinuing live support and most services for that version with some exceptions. As a result, live technical support will be available only for the most current version of QuickBooks for Windows (QB 2003) and for two prior Windows versions (QB 2001 and 2002). Live support is also available for QB versions 5.0 and 4.0, release M12A, for Macintosh. For details on Intuit’s support policies for sunset products, visit www.quickbooks.com/support/policy/tech_support.html. When a QuickBooks product is slated to be sunset, Intuit will provide affected customers with advacne notice, generally by means of their web site. We strongly suggest you assign account numbers to your chart of accounts. This provides a cross reference for you when posting your year-end adjusting entries into QuickBooks. Query: How can I protect last year’s date from accidental change? Make a backup of the company file at year-end (use new, freshly formatted disks) labeled with the year. To do so, click File, Backup, insert disk and select the appropriate drive and click Backup. Freeze the past year’s transactions with a password after all adjustments have been made. You’ll be able to view the transactions, but QuickBooks will ask you for the password if you try to change them. To set up: from Company menu, choose Set Up Users. Click Closing Date and enter the closing date and password. Click OK. Query: How do I create a report that shows my general journal transactions? From the Reports menu, choose Accountant and Taxes, and then choose Journal. Click the Modify Report button and then the Filters tab. From the Filters list, select Date, then choose a date range. From the same Filters list, select Transaction Type, from list of options select Journal. Click OK. Query: Why do my Balance Sheet and Profit and Loss Reports show “Other” account balances? You need to reclass transactions posted to accounts listed as “Other”. This can be corrected by editing the accounts sub-account selection and removing the sub-account checkmark. Also, when using sub-accounts, make sure to select the sub-account instead of the main account when you are posting transactions. If you find you are posting to the main account versus the sub-account, you may need to create additional sub-accounts for your transactions.