QuickBooks Online 2024 ProAdvisor Certification Reviewer
QuickBooks Online 2024 ProAdvisor Certification Reviewer
QuickBooks Online 2024 ProAdvisor Certification Reviewer
Getting to know the clients and tailoring advice is essential for a Certified ProAdvisor. By knowing
the client’s business and their needs, you can make sure they get the most out of QuickBooks
Online.
Discover and target the needs of your clients by using the Client Needs Assessment tool. This
model gathers the right information focusing on the Who, What, When, and How.
Effective and efficient client onboarding
The New Client Checklist is a handy resource for getting to know new clients, gathering the
New Client Checklist
required information to set up their subscription, and discovering their business needs to best match
them to a subscription level.
Download a copy of the [New Client Checklist] here to use each tab to discover your client’s
needs.
1. Client Profile
The client profile tab of the new client checklist covers the basic you need in order to set up
your client’s QuickBooks online subscription.
2. Needs Assessment
The Needs Assessment tab lists all the functionality your client may need from QuickBooks Online,
and helps you to understand their business better. If needed, you can use the links on the right to
explain certain QuickBooks Online workflows.
The workflows you highlight in the Needs Assessment tab automatically appear in column
A and you can use column B to mark down any additional functionality they may require.
There will also likely be features they will want to include or discard at this point.
4. Mileage
If your client needs to track mileage, use this tab to collect their vehicles’ profile
information and help with the QuickBooks Online setup process.
Use the checklist in combination with the Client Onboarding project template that’s inside
the QuickBooks Online Accountant Work Center. Here, you can set up Projects with
subtasks and assign the tasks to your team members.
To ensure that you have all the information to identify the right QuickBooks Online solution for
your client, dig deeper by asking them questions about how their business operates.
Asking the right questions—part 1
Use the questions below along with the Needs Assessment tab within the New Client Checklist.
Does your client need to invoice for their product or service, or is their income generated
solely based on payment at point of sale? Do they provide estimates for projects that come
their way?
The questions to ask often revolve around your client’s vendor transactions. Do they offer
products for which they need to buy components? Did your client acquire a loan to set up
their company? If so, how are they making the repayments on the outstanding amount?
This part of the checklist covers their payment preferences, outstanding loans, petty cash
limits, and reimbursable expenses, among others.
Is the business run solely by the owner or are there employees (and therefore payroll
requirements)? How many employees does your client have? Do they offer a retirement
plan or any other employee benefits? How do they track their time?
If your client has inventory, they may want to include inventory tracking. If this is a
requirement, you can discuss with them how QuickBooks Online and/or third-party apps
can help.
6. Industry-Specific Needs
Asking the right questions—part 2
Businesses in different sectors will have different needs. Clients may need QuickBooks
Online with third-party apps enabled to track e-commerce sales, or manage their logistics,
manufacturing, shipping, point of sale, or many other variables such as their personal
billable time.
8. Reporting Needs
This section of the New Client Checklist probes how your client runs their reports. Which
reports work best for them? How often do they run and analyze their reports?
As an additional feature, if the client has employees, they may wish to add users to their
accounts who have reports-only access.
1. Professional Services
Managing cash flow is essential for these types of businesses because they incur expenses
before they receive payment, therefore time tracking and job costing are essential to ensure
profitability.
Minimum subscription
Pain points/needs How they can be solved
level
Time-tracking features
Keeping track of time worked on Unlimited time-tracking
Plus
each client/project only users
Projects
Uninvoiced Time report
Determining work in progress Plus
Uninvoiced Charges report
Projects
Uninvoiced Time report
Determining work in process Plus
Uninvoiced Charges report
Managing inventory and avoiding out-of-stock situations is critical for retail and e-
commerce customers.
Minimum subscription
Pain points/needs How they can be solved
level
Keeping track of inventory
Inventory feature Plus
quantities on hand
Keeping track of sales tax Automated sales tax Simple Start
Customizable sales forms Custom form styles Simple Start
Import of sales from Import invoices
Simple Start
ebsite/point-of-sale system
Batch-enter transactions
Advanced
Minimum subscription
Pain points/needs How they can be solved
level
Keeping track of inventory
Inventory feature Plus
quantities on hand
Customizable sales forms Custom form styles Simple Start
Import sales from third-party apps Import invoices Simple Start
Purchase orders
Preferred vendors
Show items table on
Purchasing Plus
expense and purchase
forms
QuickBooks Online seeks to help make keeping track of donations, pledges, and other
funds quick and simple.
Minimum subscription
Pain points/needs How they can be solved
level
Keep track of different types of
Customer types Plus
donors
Track various program revenues
Projects Plus
and expenses
Change Customer label to
Nonprofit-specific nomenclature Simple Start
Donors in Advanced Settings
Keep track of pledges Invoicing Simple Start
Keep track of donations Sales receipts Simple Start
Classes/Locations
Keep track of different Chart of Accounts Plus (up to 40) Advanced
services/funds structure (unlimited)
You’ve just completed a meeting with a new client and have established that they need the
Knowledge check
following capabilities:
Which 2 subscription levels would provide these capabilities through QuickBooks Online?
Simple Start
Essentials
Plus
Advanced
Check Answer
That’s right.
Plus would be the minimum subscription, and Advanced has all the capabilities
of Plus, and more.
In some cases, new clients likely have accounts in the QuickBooks Desktop program, in files in
Migration
Excel, or maybe in another accounting software. They need help migrating their data into
QuickBooks Online.
There are three ways to get information into QuickBooks Online:
Alternatively, there are apps that can help import other lists and transactions.
Detailed steps on how to migrate learners from QuickBooks Desktop are part of the Advanced
level QuickBooks Online training, but it’s good to have an overview. Select the links below to find
out more about migration.
ProAdvisor tip
Remind clients that a key benefit is that QuickBooks Online is cloud-based, so (unlike standalone
bookkeeping software) it can be accessed on any device. One migration means effortless access
from anywhere, anytime.
Getting it right
QuickBooks Online subscriptions
As a ProAdvisor, one of the first things you’ll do for your new clients is help them choose the right
QuickBooks Online solution for their business. With the many different levels of subscriptions
available to them, they might find selecting an option confusing.
Self-Employed
Simple Start
Essentials
Plus
Advanced
For you to be able to advise your clients on the right subscription, you need to understand all the
features available. We’ve therefore set up all QuickBooks Online Accountant “Your books”
subscriptions as QuickBooks Online Advanced.
Having access to QuickBooks Online Advanced allows you to use and understand the value of
all the features available in any subscription level. It’ll also help you advise clients on best
practices using these features or consult those considering adopting QuickBooks Online
Advanced.
ProAdvisor tip
Clients also have the option to upgrade or downgrade their QuickBooks Online subscription.
Before doing so, it’s important to highlight to them the features that they will lose by downgrading,
to make sure this is the right option for them.
Each subscription level in QuickBooks Online is designed for a wide range of users, whether they
Usage limits
are busy e-retailers, architects, or contractors. However, each subscription level also has limits.
What are the usage limits?
As the table shows, the usage limits vary according to the level of subscription.
It's recommended that you keep track of your clients' usage to help them keep their accounts
optimized. To do that:
Chart of accounts
The chart of accounts is the backbone of accounting software. All assets, liabilities,
income, and expenses are recorded here in an account or subaccount. This client has got
plenty of scope to increase their chart of accounts entries if they need to.
You’ll learn more about setting up clients with classes and locations in our Advanced
Certification training.
ProAdvisor tip
Remember you can use the New Client Checklist as a tool to help analyze clients’ needs and
recommend the appropriate QuickBooks Online subscription.
Billing options
Additional wins
Whichever QuickBooks Online solution your client chooses, they want value for money and
flexibility in how they pay for their subscriptions.
With our ProAdvisor Preferred Pricing program, you can offer your clients exclusive discounts on
ProAdvisor Preferred Pricing
subscriptions to QuickBooks Online, QuickBooks Online Payroll, and QuickBooks Time.
And it’s not just your clients who can benefit. Because you’re a valued partner, we want to make
sure you continue to receive the best pricing on QuickBooks Online. That’s why our ongoing
QuickBooks Online discounts are only available through ProAdvisor Preferred Pricing for
accounting professionals like you.
Regardless of whether your clients pay for their subscription directly or through you, with
ProAdvisor Preferred Pricing, you can pass along any pricing discounts to your clients.
ProAdvisor tip
How you charge your client is up to you. Some firms build the cost into their monthly fee, while
others separately charge a software fee or subscription fee.
These discounts are available whichever way you or your clients pay for their QuickBooks Online
subscription—the only difference is the duration of the discount period.
If your client
ProAdvisor tippays their QuickBooks Online subscription fees directly:
You can offer them ProAdvisor
Find out more here: a Direct discount on theirPricing
Preferred subscriptions for a limited time. The discount rates
are exactly the same as with our ProAdvisor discount—the only difference is that each discount is
valid for 12 months from the date of enrollment. The subscription fee then reverts to the listed
monthly charge for the service.
Knowledge check
With our ProAdvisor Preferred Pricing, what percentage discount off the list price of a
QuickBooks Online subscription can you offer your clients?
up to 20%
20%
30%
Up to 50%
Check Answer
That’s right.
Our ProAdvisor Preferred Pricing program lets you offer your clients 30% off
the list price of QuickBooks Online Simple Start, Essentials, Plus, or
Advanced.
Company Setup
Banking Activity
Common Issues
Transaction Volume
The Company Setup section indicates the complexity of the client’s QuickBooks Online company. It shows
the client’s subscription level, whether they subscribe to a Payroll product, and whether they have Sales tax
enabled.
It also shows the number of apps that the client has connected to their QuickBooks Online.
It’s important to know which apps a new client might be using to fully understand their workflow. You’ll
want to review this on a regular basis.
The Banking Activity section shows the register balance of each bank and credit card account in
QuickBooks. The register balance is the balance from the end date of the register, which could
include transactions dated in the future.
In the Banking Activity tab, we see the checking account, merchant account, and payroll checking
account displayed.
The bank balance comes from the Banking Center and shows the balance reported the last time the bank
connected to QuickBooks. By selecting the name of the checking account, you can view the transactions in
the bank register.
You can see the number of unreconciled transactions and the date the books have been reconciled through
using the Reconcile tool in QuickBooks Online.
The Common Issues tab is where you’ll see some diagnostic information about the condition of
the data in QuickBooks Online.
Here, you can check:
If there’s a balance in Undeposited funds, you can view the activity associated with that balance
by selecting the balance amount. This opens the register.
Select the Uncategorized asset account to view transactions that have been categorized to this
account.
In this case, it looks like there are two sales receipts deposited to the Uncategorized asset account
instead of to Undeposited funds!
Adding deposits without assigning an income account is a common issue among new users of
QuickBooks Online. Such transactions will appear in the Uncategorized asset account.
Just like the Uncategorized income account, most often transactions coded to the Uncategorized
expense account are added from the Banking Center without being assigned an expense account.
The Opening balance equity account should always be zero in QuickBooks Online. If you see a
balance here, it’s most likely because an amount was entered in the opening balance field during
the creation of a new customer, vendor, Balance Sheet account, or inventory product.
The Negative asset and liability accounts section displays the number of accounts that have a
balance contrary to their normal account balance (for example, a negative bank balance).
The Transaction Volume tab shows a grouped overview of the number of transactions for the
client for the last 30 days. However, you can change the date range to view the volume of
transactions for periods longer than 30 days.
This tab offers you a clear view of the client’s workload.
ProAdvisor tip
The Client Overview is a great feature for accountants, but clients with a QuickBooks Online
Advanced subscription can also access it.
Knowledge check
What are the key benefits of the Client Overview tab? Select all that apply.
Check Answer
That’s right.
The Client Overview offers at-a-glance information that you can use to see the
client’s subscription level and recent banking activity. It also helps you
spot potential errors.
QuickBooks Online is an open platform, so developers can create apps that integrate with it. This
The benefits of apps
allows data to flow easily from the apps into QuickBooks Online—making it even more useful.
For instance, clients can use an app to connect their webstore to QuickBooks Online so that
customer data from the webstore feeds into QuickBooks Online.
Only apps approved by Intuit are listed in the QuickBooks Online Accountant Apps tab and/or
the QuickBooks App Center at apps.com. To be approved, apps must meet strict requirements
and undergo a rigorous testing process.
1. Reduce data entry: Some apps automatically collect and input data, reducing manual
entry errors and eliminating inefficiencies caused when entering data into multiple
programs
2. Solve industry-specific tasks: Specialized apps solve industry- and client-specific pain
points such as sales force management, estimation, and job costing
3. 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
4. Expand business insight: Customizable reporting apps offer user-friendly dashboards
and graphics that improve visibility into performance metrics and provide deeper
business insights
5. Security and/or the separation of duties: Some apps will allow the ability to add
information to QuickBooks Online without giving access to sensitive company
information
5. Try it Out
You may also want to test the app yourself before you recommend it to a client. Most
apps in the App Center offer a free trial period without the need to give credit card
information. You can also request a demo of the app from the developer or sign up for a
webinar to learn about it.
Many developers offer partner programs, incentives, or special discounts for referring
your clients. These can be an additional revenue stream for your firm.
Note: Because it’s not recommended to test an app with a live QuickBooks Online
company, it’s best practice to create a trial company for testing purposes.
You can also read the privacy statement on the app’s website to find out how it shares
data with other parties.
What can you do to make sure the app is suitable before recommending it to your client?
Knowledge check
Select all that apply.
Read the reviews of the app from customers and other ProAdvisors
Check Answer
That’s right.
These are some of the many ways to learn more about an app. You can even test
apps out using a trial company or requesting a demo from the developer.
Client Onboarding
Onboarding workflow
Help clients get started
Before clients can fully enjoy the benefits of QuickBooks Online, they need help setting up their
company so that it works for them. A key responsibility of a ProAdvisor is onboarding clients
into QuickBooks Online in a way that’s right for their business.
QuickBooks Online Accountant has built-in tools to help you organize and track client
onboarding tasks, adjust the steps to the needs of your client, and allocate different tasks in the
onboarding workflow to other team members.
In this lesson, we’ll look at the key stages of the onboarding process.
Your current experience may differ from what you see here.
Onboarding tasks
To get started with onboarding, head to the Work section in QuickBooks Online Accountant and
you’ll find a QuickStart template with a default list of tasks to help you through the onboarding
process.
The template includes a set of editable tasks and sub-tasks, and even builds in time to train and
coach clients.
Use it along with the data you gathered in the New Client Checklist to tailor your client’s
onboarding to their needs.
Onboarding steps
The steps in the QuickBooks Online Accountant QuickStart template for onboarding aren’t just a set of
tasks to check off, but a list of opportunities to add value and develop a great working relationship with
your clients.
Getting this right gives the client the reassurance they may need that they’re getting
expert advice.
The completed Client Profile section will provide the information you need to complete
the client’s account settings for them. You can even request a copy of your client’s logo
to surprise your client with a customized homepage and sales template!
3. Customization
Whether you’re advising on a custom payroll setup, adding logos, or improving sales
form templates, you can demonstrate your value to clients by helping them to build the
best workflows for their unique business.
When setting up lists for businesses new to QuickBooks Online, review their current
customer/vendor lists to determine if you can utilize the current data to import into
QuickBooks Online or if you can tailor it to their needs with some adjustments to their
lists and categorization options.
Training and mentoring also allow you as a ProAdvisor to highlight your value as a
subject-matter expert, not just in accounting best practice and requirements, but also in
how they should work in QuickBooks Online to get the best results.
It’s a great time to remind them to download the QuickBooks Online app so that they can
keep track of their finances on the go.
The sooner they’re confident in recording their day-to-day transactions, the sooner they’ll
see the value and time-saving benefits of QuickBooks Online and their trusted advisor—
you!
ProAdvisor tip
You can find resources to help train your clients in the Benefits tab in the ProAdvisor area inside
QuickBooks Online Accountant.
QuickBooks Online status updates
Since QuickBooks Online is an online product, it’s a good idea to make your clients aware of
potential issues related to outages as part of your client onboarding process.
Check Answer
That’s right.
The Work tab is where you can find the QuickStart Onboarding template. Use it to build an
onboarding process that’s customized to your client’s needs.
As a ProAdvisor, you can add value to your client by ensuring that their chart of accounts
reflects the reporting for their business.
There are several ways to edit a chart of accounts in QuickBooks Online to make it work for
your client. In this lesson, we’ll look at the different customization options.
Your current experience may differ from what you see here.
Setting up a client’s chart of accounts correctly in QuickBooks Online means paying attention to
the business’s needs and business profiles.
The benefits of having a customized chart of accounts
For instance, the accounts for real-estate development, construction, retail, or property
developers have different accounting and reporting needs, and they might follow different
workflows. Some clients may not want accounts that do not apply to their business. Still, they
may need new accounts that are specific to their industry or unique to their business.
As a ProAdvisor, you can help them reflect this in the way you set up their COA. The aim is to
make sure that transactions and other data post to the appropriate accounts so that:
Essential data is accurate and complete, providing insight into balances such as taxes and
cash flow
Valuable and informative reports can be run for important decision-making (such as
which jobs are most profitable and which employees are most productive)
ProAdvisor tip
You can also view examples and import sample charts of accounts using an industry-specific
Excel template. Find out more in this article about importing chart of accounts.
You might want to customize a client’s account numbering and hierarchies to create consistency
across all clients or to comply with the industry or the government’s accounting standards.
Adding account numbers
Before you can add numbers to a client’s account, you need to enable numbering.
Let’s see how to do that and add some numbers.
Watch the video to see how it’s done. The individual steps are below for you to follow.
To enable account numbers:
1. From the left-hand navigation, select Accounting and choose Chart of Accounts
2. Find the account to rename and in the Action column dropdown, select Edit
3. In the Account pop-up window, enter the new account name in the Name field
4. When done, select Save and Close
Merging accounts is a common practice when there are duplicates or two accounts used for the
Merging
same thing. accounts
Note that the merging process is permanent and can’t be reversed. Any transactions in merged
accounts are also merged and will appear under one entry in reports.
Watch the video to see how it’s done. The individual steps are below for you to follow.
1. From the left-hand navigation, select Accounting, then choose Chart of Accounts
2. Find the account to be merged in the list, and in the Action column dropdown,
select Edit
3. In the Account pop-up window, copy the exact Name of the account by highlighting,
right-clicking, and then selecting Copy
4. Close the pop-up window
5. Next, back in the Chart of Accounts list, find the other account to be merged. In
the Action column dropdown, select Edit
6. In the Account pop-up window, paste the Name of the previous account by highlighting,
right-clicking, then selecting Paste
7. Next, select Save and Close
8. To confirm that you want to merge the accounts, select Yes
When setting up a client file, you may want to make default accounts inactive. This helps keep
the chart of accounts tidy and prevents clients from posting transactions to the wrong or a
Makingaccount
redundant accounts inactive
by mistake.
QuickBooks Online lists inactive accounts as deleted on reports. However, transactions in
inactive accounts remain part of the company data. They would appear on reports if the
transactions were posted to the account when it was active.
Watch the video to see how it’s done. The individual steps are below for you to follow.
1. From the left-hand navigation, select Accounting, then choose Chart of Accounts
2. Find the account to be made inactive and in the Action column dropdown, select Make
Inactive
3. Select Yes to confirm
By default, inactive accounts are not visible from the Chart of Accounts. To make an account
active again:
1. In the Chart of Accounts screen, select the small Grid Gear icon above the Action
column
2. Check the Include inactive option
3. Find the account you want to make active again, and select Make active from the Action
column
Account-editing limitations
Because QuickBooks Online requires some default accounts to carry out essential functions,
customization has certain limitations.
Knowledge check
Which of the following options are true regarding editing a chart of accounts? Select
all that apply.
You can’t make an account active once it has been made inactive
All transactions are deleted from an account if you make it inactive
Merging accounts isn’t possible for all account types
Transactions posted to merged accounts are also merged
Check Answer
That's right.
Not all accounts can be merged because some are essential to QuickBooks Online functionality.
For accounts that are merged, the transactions are also merged under a single entry in any related
reports.
You know that a chart of accounts is made up of lists of data detailing a client’s business. Many
Products
clients and
are likely services
to have really long lists, and this all needs populating and then managing in
QuickBooks Online. This can be a challenge for clients, especially in larger businesses.
Setting up the Products and Services list with prices, descriptions, and purchasing information
for the range of offerings for a business saves significant time when it comes to entering
transactions. It also provides precise sales data to help make business decisions.
If you can get your clients into good habits managing their Products and Services list early on,
it’ll be easier for everyone in the long run—including you!
Your current experience may differ from what you see here.
The Products and Services list contains the items that will appear on your client’s purchase and
Types
sales of products
transactions. Each itemand
mustservices
be mapped to an account in the chart of accounts.
Each time an item is used in a transaction, the appropriate entry is added to the list behind the
scenes.
In QuickBooks Online, you’ll have four item types to choose from:
Non-inventory
These are products bought and sold where it isn’t necessary to track quantities on hand, such as
small parts used in the installation or delivery of a product.
Service
This includes services that are provided to customers, such as an emergency service call or other
labor.
Bundle
This is a collection of products and services that are sold together, such as the installation of a
product that includes both labor and materials.
To customize the fields and columns on sales forms, select the Gear icon and then Account and
•Settings. In the Sales column
Show Product/Service tab, youoncan turnforms:
sales someThis
options onmust
option and off.
be selected to use Product/Service
items on sales forms. Deselecting this setting will limit clients to adding only descriptions to each line
item of a sales form and will use the default product or service item defined by QuickBooks Online.
• Show SKU column: Select this option to add a column to track SKU numbers to sales and purchase
forms.
• Turn on price rules: Select this option to enable the Price Rule feature in QuickBooks Online Plus and
Advanced subscription levels. This feature allows clients to create special pricing for different types of
customers and products/services.
• Track quantity and price/rate: This option adds the quantity and rate columns to sales and purchase
forms.
• Track inventory quantity on hand: Select this option to turn on the inventory-tracking feature in the
QuickBooks Online Plus and Advanced subscription levels.
ProAdvisor tip
You can change the sales settings at any time by selecting the Grid Gear icon at the top right of
any sales or purchase form in QuickBooks Online.
Note that you can also import data from Google Sheets.
You can give this list to your client and ask them to delete the sample data and populate
the columns with their data. Alternatively, you can ask them to change their existing
spreadsheet to correspond with the sample spreadsheet. Pay attention to the naming
conventions, how the columns are ordered, and the fields that can be imported.
Note that you don’t have to have all of the data in the spreadsheet because you can add it
later (this includes income accounts).
You can remap products and services or any other field at any time by selecting Edit from
the Products and Services screen.
1. Select Sales in the left-hand navigation, then select Products and services
2. Select Edit in the row of the product that is to be assigned a preferred vendor
3. Scroll down in the Product/Service information drawer and in the Preferred
vendors dropdown, either select the vendor or select Add new and add the vendor and
select Save
Let's not worry about the company details; we can add these later.
4. Select Save and close
Knowledge check
If your client was selling a combination of products and services, such as a computer
service, IT support for a year, and a pack of USB sticks, which option would you
select when setting up their product and service items?
Non-inventory
Bundle
Inventory
Service
Check Answer
That’s right.
A bundle is a collection of products and services that you sell together.
2. Terms
This displays the list of terms that determine the due dates for payments from customers, or
payments to vendors. Terms can also specify discounts for early payment.
3. Attachments
This displays the list of all attachments uploaded. From here, you can add, edit, download, and
export your attachments. You can also see all transactions linked to a particular attachment.
Adding customers
Getting the ball rolling
To help your clients track sales and start invoicing, you or they need to add their existing
customers to QuickBooks Online.
QuickBooks Online gives you and your clients a great set of tools for managing their customer
details. You can start with the basics by adding customers individually, or speed up the process
by importing them as a list.
Your current experience may differ from what you see here.
Customer details
When you set up a new customer, you can decide how much information you want to record
about them.
You can start by entering the basic customer information (such as name and contact details), but
it’s a good idea to enter as much information as possible. This helps you fully utilize the power
of the QuickBooks Online database when creating reports and working with your list data.
In the Customer Information screen, seven tabs allow you to add additional details.
1. Address
The Address tab allows you to have different billing and shipping addresses.
2. Notes
The Notes tab is where you can enter notes about your customer, such as products, specifications,
or shipping account info.
3. Tax Info
This is where you indicate whether the customer should be charged sales tax, and select a default
tax code. If the customer is tax exempt, you could also store the customer’s resale number in the
Exemption details field.
5. Attachments
The Attachments tab is where you can associate a document with the customer. This could be a
contract or a customer resale certificate.
6. Additional Info
The Additional Info tab allows you or your clients to select a customer type.
7. Language
This is where you capture the language preference for the customer.
Adding a new customer
Let’s see how to add a new nonprofit customer to a QuickBooks Online company.
Watch the video to see how it’s done. The individual steps are below for you to follow.
As a nonprofit, this customer is not taxable, but the reseller number needs to be added.
5. Select Tax info
6. In the Exemption details filed, enter the customer’s reseller number
7. Then select Payment and billing
There may not be customer information for every field. You can tell when a field is
mapped because the line will have a green checkmark next to it.
Don’t enter anything in the Opening Balance field because this will make adjustments to
the General Ledger for each customer on import.
7. When done, select Next
The Import screen displays the data before importing it into QuickBooks Online. You can
make changes here if necessary.
8. Then select Import
The imported customers appear in the Customers tab of the Sales screen.
Knowledge check
Once you’ve imported a customer list, where will you find the newly added customers
in the client file?
Check Answer
That’s right.
If your import was successful, you’ll see all of customers listed under the Customers tab in the
Sales Center.
More setting up
Adding vendors
To process bills and record purchases, your clients first need to set up their vendors in
QuickBooks Online.
QuickBooks Online gives you and your clients a great set of tools for managing their vendor
details. You can add vendors individually, or speed up the process by importing them as a list.
Your current experience may differ from what you see here.
Vendor information
Payments to vendors are money-out transactions. By setting up vendors, clients can quickly enter
vendor bills and include information such as the remit-to address and the due date. This will then
pre-populate this information on the purchase forms.
Having vendors set up also allows clients to keep track of expenses by vendor and run reports to
see where and on which items or services they are spending the most money.
When adding a new vendor, add as much information as you can about them in the Vendor
Information screen. Let’s look at what information you would need about them.
1. Company and individual name: The Display name as field is populated with the First, Middle, or
Last name, or the Company name, depending on which is entered first. You can change the
Display name as field by selecting the down arrow and choosing the preferred option.
2. Print on check as: This field automatically populates, based on the Display name as field. If the
payee is different, remove the check and enter the correct name.
3. Address (also known as the remit-to address): this is where payments will be mailed.
4. Email, phone, mobile, fax, website: Enter these contact and website details.
5. Cost rate, Billing rate, Terms: The default payment terms are entered here. The cost rate only
appears if the client is using Projects and the vendor is not being paid via expenses, or if the
vendor bills as a contractor on a daily rate billable to the client.
6. Opening balance: This field records the beginning balance for a new vendor. In almost all cases,
it should be empty. When an amount is entered here, QuickBooks automatically creates a journal entry to increas
Entering amounts into this field is typically not recommended because you won’t capture any
details about the bills that make up the balance (such as the category or product/service items).
7. Account number: Enter the vendor’s account number. This will show up on the memo on the
check.
8. Business ID/Social Security Number: Here you store the tax ID number (Employer Identification
Number or Social Security number) of a vendor. This number is used when creating Forms 1099-
MISC.
9. Track payments for 1099: This selects the vendor to be used in the 1099 wizard when creating
Forms 1099-MISC.
Adding a vendor manually
Let’s see how to add a vendor manually to QuickBooks Online.
Watch the video to see how it’s done. The individual steps are below for you to follow.
If this is the first vendor you add, you are taken straight to an easy entry screen.
3. Enter the name of the vendor in the Company field and add the other details, including
their address, email, and phone
4. In the Terms dropdown, select the terms agreed with the vendor. In this case, it’s Net 30
5. Make the Opening balance zero
6. Enter the as of date
7. Finally, select Save
You can import vendors from Excel, CSV, or Google Sheets files.
Knowledge check
Which options are true about the journal entry QuickBooks Online creates if you add
a new vendor with a non-zero opening balance? Select all that apply.
Check Answer
That’s right.
The journal entry will increase Accounts Payable and decrease the Opening Balance Equity
account.
Entering amounts into this field is not best practice because they are not recorded when the
journal entry makes the adjustment, so you won’t capture any details about the bills that make up
the balance (such as the category or product/service items).
By having bank data fed into QuickBooks Online, clients can benefit from time-saving
workflows that will keep everything up to date and aligned.
The bank feed technology in QuickBooks Online imports bank data from your bank, allowing
you to add and match transactions to ones recorded in your QuickBooks registers.
This lesson looks at how to get connected.
Your current experience may differ from what you see here.
Connecting bank accounts
To connect an account, clients need to:
You’ll want to do this with your client, so they sign in to their bank and preserve the
confidentiality of their banking password.
It might take a couple of minutes for the bank’s database to connect to QuickBooks
Online.
5. Select the bank account from the chart of accounts for the business that corresponds to
the account listed by the bank. If there isn’t a QuickBooks Online account in the list that
matches the bank account, just select Add New
6. Choose the account type, either bank or credit card, and choose a detail type
7. Give the account a name
8. Then select Save
QuickBooks Online connects to the account and (by default) downloads all the transactions for
the last 90 days.
1. What is OAuth?
OAuth stands for open authorization. It means that your client no longer has to provide their bank
username and password after initial setup.
Instead, your client gives permission at their financial institution (FI) for QuickBooks
Online to access their account. Their bank sends QuickBooks Online a token that is used
to access their account. After that, QuickBooks Online can still securely access the
account even if your client changes their password, giving them a more reliable
connection.
The list of banks connecting to QuickBooks Online using OAuth is ever-growing. Here’s
the list of banks, with more exact dates and timelines for each bank.
3. Can anybody who has access to the bank website set up the new OAuth connection?
Some banks or financial institutions have restrictions on who can establish this new
OAuth connection.
The primary user for the bank’s website can always set up the connection, but delegate or
secondary users can’t always establish the connection.
This is not something you can do on your client’s behalf because it requires the sign-in
credentials for their bank or financial institution.
Find more information on setting up banking here.
4. How much historical data does the new connection bring in?
Conventional bank feed connections import 90 days of historical transactions by default.
With OAuth, it will vary by financial institution. The range will be between 30 days and
two years.
If your client needs more than what’s available for their financial institution, you can
download the transactions manually from their bank and import them. We cover how to
do that next.
If for some reason your client’s transactions aren’t feeding into QuickBooks Online
automatically, your client needs to import them manually.
Manually importing bank transactions
Watch the video to see how it’s done. The individual steps are below for you to follow.
Before importing transactions into QuickBooks Online, you or your client first need to export the
data from their financial institution in CSV format and have it ready on a local drive.
The Banking Center is now populated with the transactions from the bank file.
If you need to import a bank file next month or into an established QuickBooks Online
company, repeat this process.
Knowledge check
How many days of historical data are carried over from a bank account that is
connected using OAuth?
30 days
60 days
90 days
Depending on the financial institution, between 30 days and 2 years
Depending on the financial institution, between 90 days and 5 years
Check Answer
That’s right.
It used to be 90 days, but is now between 30 days and 2 years.
Bank feeds into QuickBooks Online perform an essential role in how your clients manage their
Managing existing connections
books. But what if something goes wrong with the connection? In these instances, you and your
clients need to understand how to get things flowing once more.
Run through the dropdowns, in order, to understand the steps to follow to recover a
disconnected bank feed.
If downloads seem slow or stuck, the issue may be at the bank’s end. Sign in to the bank’s
website to check. First, get the URL QuickBooks Online uses to connect:
a. Go to the Banking Center
b. Select Link account
Note: You won’t add an account, you just need the listed URL.
c. Search for your client’s bank and select it
d. Copy the URL listed for your client’s bank
e. Sign in to the bank or credit card’s website using the copied URL
If you can sign in, it’s a good sign that there isn’t a major issue. Do this next:
By connecting a client’s business app accounts to their QuickBooks Online company and downloading
transactions, clients can see each transaction’s details imported from the connected e-commerce app
account. The imported detail includes the transaction date, customer name, product description, quantity,
purchase price, and any fee breakdowns. This makes integrating app transactions all the more valuable to
your clients.
ProAdvisor tip
Remember that you only need to import transactions for periods you haven’t yet reconciled in
QuickBooks Online. If you import more transactions than you need, don’t worry—you’ll learn
how to exclude them in a later lesson.
Special client onboarding tasks
Clients who sell products and services need to ensure that they follow the tax regulations of their
states. However, with more than 40,000 different tax laws across the U.S., it can be a challenge
for clients to keep track of how much sales tax to collect every time they make a sale.
As a ProAdvisor, you can set up your clients’ sales tax information for the cities and states where
they do business. Then you can review their products, select a sales tax category, and identify the
type of product they sell.
Once the setup is complete, QuickBooks Online will automatically calculate the sales tax each
time the client creates an invoice or sales receipt. The sales tax is based on the location of the
sale and the type of product or service.
Your current experience may differ from what you see here.
The Sales Tax Center is a one-stop shop where you manage all your sales tax tasks. You can:
About the Sales Tax Center
See when tax payments are coming up
View sales tax liability reports that you can customize by date, tax agency, and more
Change sales tax settings, such as adding new tax-collection agencies if you start
expanding into new states
Before setting up a client’s sales tax, you should find out what their sales tax requirements are
for their business and locality. Some key questions are:
Watch the video to see how it’s done. The individual steps are below for you to follow.
Once the settings for the sales tax are done, the next step is to review the products and services
and select the appropriate sales tax category.
Selecting the right sales tax category
Let’s take a look at how it works.
Step 1
In the Product and Services screen, select Edit next to the item to open the pop-up window.
Select an option from the Sales tax category dropdown. If you know the item is either
nontaxable or always taxed at the standard rate, you can select one of those options.
If you know your item can sometimes be taxed differently, or you are unsure, select Choose a
special category.
Step 2
You can drill down into the different categories to select one that is most like what is sold.
Once you find a category that describes what is sold, select it.
Step 3
Selecting a heading opens up more options so you can get to the detail you need.
Step 4
You’ll see the category reflected on the item create screen, and QuickBooks Online will automatically
apply the correct sales tax rate based on where the item is being sold.
QuickBooks Online will do the sales tax calculations for them based on:
When sales tax is set up in QuickBooks Online, the heavy lifting is done for you! You can view
the calculated tax and adjust the sales tax settings right from the sales entry screen. You can
update the customer exemption status, view and update the sale location, and update the Tax
Categories and Totals applied to the sale. Watch the video to see how the calculation on each
sales transaction is worked out.
Note that by selecting the See the Math link on the invoice, a pop-up window opens up that
shows you how sales tax was calculated.
Let’s take a quick tour around its key features in another client’s QuickBooks Online.
Select each of the highlighted areas to find out more.
This is the total amount your client currently owes to one or more tax agencies.
Due this month: This shows taxes that are currently due, in other words, require more immediate
action.
Upcoming: This shows tax amounts being accrued for the following period.
Overdue: This shows taxes for which the due date has passed and no tax payment has been recorded
within the QuickBooks Online account.
• View return
When it’s time to file the return and for your clients to pay sales tax, this gives you the information you
need to file the tax return outside of QuickBooks Online.
Typically, you need to go to the state’s website to pay the tax and file the forms.
You then record the payment in QuickBooks Online so that it can be marked as filed and moved to your
client’s history area.
Record the payment in QuickBooks Online by selecting View return and then Record Payment.
• History
Here, you can review any returns that were previously marked as paid/filed within QuickBooks Online.
Here, you can view and edit any tax agencies you have set up within your client’s QuickBooks Online
account, and add new agencies. A tax agency can be made inactive at any time by selecting the Edit
button next to it.
• Reports
There are shortcuts here to the Sales Tax Liability report and the Taxable Customer report. All other
reports can still be found using the Reports tab in the left-hand navigation.
• Shortcuts
Access anything that feeds into sales tax calculations, like customer addresses, product and services
lists, and more.
Knowledge check
Your client wants to review how much sales tax they paid last quarter.
Where will they find this information in the Sales Tax Center?
History
Sales Tax Liability report
Tax breakdown/Previously paid area
Check Answer
That’s right.
The History link is where you review any returns that were previously marked as paid/filed
within QuickBooks Online.
Setting up payments
Get paid faster
Trips to the bank to deposit customer payments take time and keep people from doing other
important tasks. And clients need invoices to be paid faster, and money transferred to their
accounts as swiftly as possible for improved cash flow.
QuickBooks Payments is the unique ACH debit and merchant service solution that is built into
QuickBooks Online. Once activated, clients can use it to send emailed invoices that enable
customers to pay online in an instant using the invoice’s payment button.
Your current experience may differ from what you see here.
Key features
What are the Key Features Involved?
Clients pay a small fee per transaction processed. The merchant service plans include Amex,
MasterCard, Visa, and Discover. Once the client has applied for QuickBooks Payments, Intuit
will verify their details. If they’re approved, their merchant account will be created.
Once approved, your client’s customers can pay via an online invoice, just by selecting a Pay
Now button, or in person via a card reader.
Your clients can also accept payments from their customers over the phone if they have a signed
authorization form on file. Your clients also have the option to enter credit card or bank account
information directly in QuickBooks Online on the Receive Payment screen. Your clients can:
Email invoices that contain a link, allowing customers to view and use Pay Now securely
Have customers pay via credit card or ACH debit (electronic bank transfer) with the tap
of a button
Accept payments in person or over the phone. QuickBooks Payments processes credit
card payments directly from the QuickBooks Online Sales receipt and Receive payment
Use a card reader to receive payments in person via the mobile app
The Receive payment transaction, subsequent batched bank-deposit transaction, and even the
merchant service-fee transaction are all automatically recorded in QuickBooks Online by the
QuickBooks Payments service.
How long do payments take to reach client accounts?
Clients can sign up for next-day deposits to speed up payments so that all payments hit their
account the next day.
Select the link for more about the payments and processing schedules and the different options.
ProAdvisor tip
QuickBooks Payments means businesses can accept payments by credit card, Apple Pay, or bank
transfer directly from the invoice. QuickBooks Online automatically matches payments with
invoices to save time.
If a client is on a Direct billed plan, they can connect their existing merchant account in
the Billing and Subscriptions tab in Account and Settings.
If a client is on a Firm billed plan, they need to contact Support to connect their existing
merchant account.
If a client needs help syncing or migrating their existing merchant account, in QuickBooks
Online Accountant select Help from the top right, then Contact Us and follow the instructions to
receive a callback from Support.
Note that the QuickBooks Payments account can be used with either QuickBooks Desktop or
QuickBooks Online. However, it won’t work with both simultaneously.
ProAdvisor tip
It’s recommended that the Primary admin of the QuickBooks Online company and the merchant
account connects QuickBooks Online to QuickBooks Payments.
If you have trouble with this step, contact the QuickBooks Payments support staff to map the
services together on the back end. If the applicant expects to process more than $7,500 per month
using QuickBooks Payments, call 866-827-9500 for special pricing.
QuickBooks GoPayment
For clients who are out on the road, a mobile point-of-sale app like QuickBooks GoPayment is
an ideal way to get paid fast.
With this add-on app, clients can accept payments on the go using their mobile devices.
Find out more about QuickBooks GoPayment: Processing payments in the GoPayment app
ProAdvisor tip
QuickBooks Online ProAdvisors get special rates on QuickBooks Payments, plus the same
discounts for clients. You can choose between pay-as-you-go or monthly pricing.
Find out more about rates here.
Knowledge check
When a client sets up QuickBooks Payments the first time, what sections do they need
to fill in? Select all that apply.
Personal information
Tax information
Business information
Company bank details
User permissions
Check Answer
That’s right.
New clients need to fill in three sections: personal info, business info, and bank details.
Payment links are single-use links that clients can send to their customers in emails or messages.
These links automatically expire once a customer has paid.
Payment links are great if your client expects their customer to pay straight away. If they have
payment terms with your client, or your client doesn’t need them to pay immediately, then an
online payment option added to their invoice would be better.
Clients should use the Payment links tab in the Sales menu to send payment links. When creating
a new link, clients can detail what the payment is for, its value, customer details, and payment
options.
Once they’ve created a link, they can copy it to a different email from the one detailed in the
link, or even paste it into a text message. It really is that flexible. They can also generate a QR
code on their phone that the customer can scan to pay immediately.
Once your clients have been using payment links for a while they can view a list of their issued
links to see their status. This view also allows for reminders to be sent, and a link can be edited
from the page, so long as the customer hasn’t viewed it.
Payment links are another great example of how QuickBooks Online can make your clients’
lives that much easier.
Bill Pay, powered by Melio, is a free, integrated payment solution that allows QuickBooks
Online users to pay business bills in the office or when out and about. It makes managing cash
flow and paying bills easier.
The Bill Pay experience is available in QuickBooks Online Essentials, Plus, and Advanced. It’s
also available in QuickBooks Online Accountant (great for paying your practice’s bills).
Your current experience may differ from what you see here.
The benefits of Bill Pay
Time is a valuable commodity for anyone running a small business. Bill Pay helps free up
precious time by taking on the logistics of sending payment to vendors.
Here’s just a taste of how it can help you and your clients.
Anytime, anywhere
They can also access the service via the QuickBooks mobile app, so can stay in control and pay
their bills even when they’re away from the office.
Flexibility
Clients can enjoy multiple payment options on the go, with the ability to send checks and ACH
payments to vendors quickly and easily. They can also control which account the payment is
made from by choosing between bank transfer, debit, and credit card.
Let’s look at how to set up Bill Pay in QuickBooks Online and use it to pay a bill.
Setting up and using Bill Pay
Watch the video to see how it’s done. The individual steps are below for you to follow.
The options available are Bank account, Credit card, and Debit card. Note that credit card
payments are subject to a fee of 2.9%.
6. Select how you want to connect to your bank account. In this case, we select Connect
instantly and sign in to the online banking
There is an option to manually enter the account and routing number and verify with two
micro-deposits. Note that this may delay your client’s ability to use Bill Pay by a few
days.
7. Select Continue
8. Select the bank from the options and select Continue to proceed and enter
the login credentials
Choose either to send a paper check or set up a bank transfer if you have the vendor’s
bank account routing and account number.
Alternatively, select Ask vendor for payment details to allow the vendor to choose how
they would like to receive the payment and enter their email address, then select Next.
12. Set the date when the payment should be deducted. Notice that the estimated payment
delivery date will be displayed. Then select Continue
13. To leave an optional memo for the vendor, enter the note and select Continue
Once the payment is made, its payment status is visible in QuickBooks Online.
Tracking the status of bill payments
1. How to view its status?
To view the status of a bill payment, follow the steps below:
ProAdvisor tip
Bill Pay powered by Melio is a great way to streamline the accounts payable process, even more
so when using the Receipt Capture feature.
Accountant Portal: You can access all your clients from one dashboard
Approvals workflows: You can schedule payments, and then the client needs to approve
the payment before it is sent to the vendor
Multiple Users: You can add other users that do not have access to QuickBooks Online
Invoices: Vendors that use Melio can send their invoices directly into the Melio app
Syncing: The Melio app syncs with QuickBooks Online, which means that bills entered
in QuickBooks Online will show in Melio, and bills entered in Melio will show in
QuickBooks Online
The Approvals workflow is great for accountants as it shifts the final responsibility for making
the payment back to the client.
Which of the following charges apply when using the debit card option to pay bills?
Knowledge check
0%
1.8%
2.2%
2.9%
Check Answer
Paying bills via bank transfer or debit card is free.
That’s right.
The App Center in QuickBooks Online Accountant allows you to choose from a range of apps
and add them to your clients’ QuickBooks Online. You can see and manage all apps connected
to your clients to better understand opportunities across your client base.
Your current experience may differ from what you see here.
Who can add apps?
Apps can only be added through QuickBooks Online Accountant. However, not everyone with
access to a client account can add apps.
As you can see below, both the Primary Admin and Full Access Team User can add apps to both
the firm’s books and a client’s QuickBooks Online but Basic users can’t.
You can access all app-related information from the Apps menu in the left-hand navigation of
QuickBooks Online Accountant.
The Apps menu
1. Finding apps
The Find apps tab is where you can browse through different categories of apps
available to clients and your firm.
You can search for apps in two ways: using the search box or the Browse category
dropdown.
2. Tracking client apps
The Client apps tab in your firm’s Apps menu shows the apps your clients are subscribed to. The
listing also details the status of the apps.
Adding apps
Once you select the Get app now button, you’ll be taken to the next step.
1. If the app purchase is for your firm then you check this box.
2. If the app purchase is for a client, then simply select the business from the dropdown.
3. Once you’re ready, select Install.
Remember that, once the app is installed, you’ll need to take care to accurately map the
fields to QuickBooks Online, in much the same way you would when uploading lists.
Knowledge check
Who can add and manage app subscriptions for clients? Select all that apply.
Check Answer
That’s right.
Primary Admins of the firm, lead accountants and Full Access team members can add and
manage apps on behalf of their clients.
QuickBooks Time and QuickBooks Online Payroll
The age-old challenge
For many of your clients, employing people is an inevitable reality of running a successful
business. For these clients, keeping track of their people’s time and running payroll are
significant and often stressful parts of the job.
QuickBooks Online integrates seamlessly with two other QuickBooks products: QuickBooks
Time and QuickBooks Online Payroll. Adopting these time-tracking and payroll subscriptions
can save clients time and money, allowing them to focus on their commercial priorities.
In this lesson, you can get an overview of their functions, benefits, and subscription options. For
more in-depth information, visit our separate training for QuickBooks Time and QuickBooks
Online Payroll.
Your current experience may differ from what you see here.
Subscription benefits
Let’s look at some of the benefits of integrating QuickBooks Time and QuickBooks Online
Payroll.
All standalone and integrated subscriptions have a broad range of analytical tools, but
QuickBooks Time Elite, being optimized for running and managing projects, offers even
greater insight.
For more detail on the reporting and analysis options, review our dedicated courseware
on QuickBooks Time.
1. Standalone or integrated?
QuickBooks Time is offered either as a standalone or an integrated subscription.
QuickBooks Time subscriptions
Standalone versions of QuickBooks Time allow clients to export their timesheet data to
third-party payroll applications such as ADP and Paycor.
Integrated versions of QuickBooks Time are included with the equivalent QuickBooks
Online Payroll subscription and automatically transfer approved timesheet data to it.
2. Premium or Elite?
There are two levels of subscription available for both the standalone and the integrated
users.
a. QuickBooks Time Premium gives your clients all the functionality they need to
plan for, record, manage, and approve the hours their employees and contractors
work.
b. QuickBooks Time Elite includes all the benefits of QuickBooks Time Premium
as well as additional capabilities to improve project efficiency and profitability.
These include mileage tracking, Geofencing, timesheet signatures,
enhanced reporting, and (importantly) project estimates versus actuals
ProAdvisor tip
Accounting professionals who sign up for QuickBooks Online Accountant get a free
QuickBooks Payroll Elite subscription for their firm, which includes QuickBooks Time!
QuickBooks Online Payroll subscriptions are designed to be flexible to meet the needs of all of
your clients. The subscriptions have the option to include full-service features, which means that
QuickBooks Online Payroll subscriptions
the QuickBooks Payroll team fills in forms for your clients and manages the submission of taxes.
Intuit rolled out a major improvement to QuickBooks Online Payroll by including auto pay and
auto file to all of its payroll subscription plans! Clients who previously subscribed to
QuickBooks Online Enhanced Payroll have been switched to the QuickBooks Online Payroll
Core plan. This eliminates the hassle of remembering tax payment and filing deadlines because
Intuit makes them automatically!
For QuickBooks Time, which subscription options can you choose from? Select all
Knowledge check
that apply.
Standalone vs integrated
Monthly billing vs annual subscription
Premium vs Elite
Desktop vs Online
Check Answer
That’s right.
You can choose between the standalone and the integrated versions, and the Premium and Elite
subscription levels.
The choice of subscription levels for your clients will depend on the nature of their varied
Signing your clients up to QuickBooks Time and QuickBooks
operations.
Online Payroll
Before signing your clients up to any of the QuickBooks Time or QuickBooks Online Payroll
subscription options, we recommend browsing through our training dedicated to each product.
You can gain greater insight into the inner workings of the applications and how to select the
right subscription for your clients.
Customizing sales forms
Stand out from the crowd
For your clients, getting their business brand out there among current and prospective customers
is important. Invoices are essential to any business as they are a part of the business process, but
they are also potential marketing tools to communicate a brand.
QuickBooks Online contains tools to customize sales forms, such as invoices to match your
clients’ branding, and they can be configured to offer your clients’ customers quick and easy
ways to pay.
Your current experience may differ from what you see here.
1. In the client’s account, select the Gear icon, then Custom form styles
2. Select the dropdown next to New style and select Invoice
3. Select Make logo edits, then select Add a logo and upload the client’s logo
4. When done, select Save
Note that there is also an option to change the font of the invoice.
8. To customize what details of pricing, costs, or taxes appear on the invoice, select
the Content tab, and select the Pencil icon next to the section to edit. Check and uncheck
the relevant boxes
9. Select the Emails tab to choose which invoices appear in emails. Here, there’s an option
to select whether the customer sees Full details or Summarized details, and whether they
see the full invoice from within the email itself, or with the PDF attached
10. Select Done to save the changes
11. Next, from the arrow in the Action column next to the customized invoice, select Make
default
Now that the invoice is customized, clients can send it to their customers:
To see the invoice before you send it, select Print or Preview at the bottom of the screen.
5. When ready, select Save and send
6. Finally, select Send and close
That’s it. The client’s customer will now receive the customized invoice in their email account.
Clients can boost their payment speed to the next level by turning on QuickBooks Payments.
This gives their customers the freedom to pay their way because it accepts all credit cards and
free bank transfers—and they can pay directly in the Online Invoicing portal at the tap of a
button.
This unique Pay Now link ensures that payments are encrypted. It’s powered by technology from
the makers of TurboTax and Mint, so it’s secure and reliable.
As well as adding the logo to the invoices, how else can you customize an invoice?
Knowledge check
Select all that apply.
Check Answer
That’s right.
To bring the client’s invoices on brand you can add color, change the font, and change the size
and position of the logo.
QuickBooks Online has the flexibility to display company data in different ways to different
types of users, ensuring that some data remains inaccessible. You can help your clients set up
permission levels to allow the right level of access to different employees.
There are four types of user permissions that you can set up.
Company administrator
This permission level gives access to all areas of QuickBooks Online, including settings and full
access rights to all other services the QuickBooks Online company subscribes to (such as Payroll
and Intuit Payments).
Standard user
You can control which areas of QuickBooks Online the user has access to.
Time-tracking only
This enables users to sign in to a special version of QuickBooks Online that only has timesheets.
This is where users fill out and change their own timesheets but don’t have access to other users’
timesheets.
Reports only
This enables users to sign in to a special version of QuickBooks Online that gives them access to
almost all reports, except Payroll and list reports that include contact information. (This is only
available in QuickBooks Online Plus and Advanced.)
ProAdvisor tip
QuickBooks Online Advanced subscribers have access to more robust user permissions and
roles. These are suited to the needs of more complex businesses, ensuring each team member
only has access to what they need to do their job. You can learn more about these user roles in
our specialized training on the QuickBooks Online Advanced subscription.
On the next screen, by selecting the different options on the left, more information
appears on the right about the access rights.
5. Check the Limited option and check the Customer box to give the employee access to
invoicing
6. SelectNext
7. On the new screen, answer some further questions about user settings
8. When done, select Next
9. Add the Name and Email of the employee to give access to
10. Select Save
There’s a new entry in the Manage users screen. Note that the status is Invited. The
employee will get a notification email with a link. They need to follow the link to sign in
and get access.
Now let’s allow a new subcontractor to make entries to track their time.
There’s another entry in the Manage users screen, and they both appear as Invited.
ProAdvisor tip
If your client has Payroll enabled, they can use the Payroll access checkbox when selecting
access rights to allow or restrict access to their employees’ salaries. This is useful if, for
example, an employee is responsible for creating invoices, but won’t need access to payroll.
There’s no left-hand navigation, and no + New function in the Reports only view. Everything they need is
in this view.
In order to focus on areas of the reports needed for each task, Reports only users can collapse report
sections to hide data until it’s needed.
ProAdvisor tip
Reports only users are perfect for nonprofit entities that need to provide reporting access to their
board members.
Please note that this feature is only available in QuickBooks Online Plus or Advanced.
Knowledge check
Where would you go in QuickBooks Online to manage user access?
Check Answer
That’s right.
This is where you can manage user permissions.
The main difference is their appearance. Feature, menu, and button names are different, but the
actions in each view are identical in most cases. Some features are only available in one view or
the other.
1. Accountant View
As an accountant or bookkeeper, you’ll mostly use this view. It uses standard accounting
language and gives control over features like your client’s chart of accounts and other
features that are aimed at financial professionals.
You may choose to recommend your client also uses this view so that when discussing
their accounts you both see the same product navigation.
In all ProAdvisor training, we use the Accountant view.
2. Business View
Small business owners who use QuickBooks Online without the support of an accountant
or bookkeeper might prefer the Business view. This option simplifies the workspace so
that day-to-day tasks like sales and billing are easier. It also uses non-accountant terms
and allows them to do their accounting without learning complicated steps or processes.
To switch between the two views, select the Gear icon, then select Switch to
Business view or Switch to Accountant view.
Managing your Clients at Work
Client List
The Client List gives you a one-stop shop for all your client information—even clients who don’t
use QuickBooks Online.
Keep your client contact info, notes, and documents close at hand with a consolidated Client
List, and access client QuickBooks Online accounts and ProConnect Tax Online from one
location.
Select each of the highlighted areas to find out more about the Client List.
1. Banking
Check the status of the client’s online banking transactions.
2. Payroll alerts
If your client has an active QuickBooks Payroll subscription, you will be able to view
alerts regarding payroll runs and tax payments and filings.
3. Prep for taxes
Select Review Data from this column to open the Prep for taxes tool. You’ll be able to
quickly review balances and make year-end adjustments to your clients’ books. You can
also map the accounts in QuickBooks Online to the tax form lines and export balances to
ProConnect Tax Online.
4. Tax returns
Here, you can see any tax return information relevant to the client, including the status
of any return that has been started.
5. Lead
See which lead is assigned to each client.
6. Actions
Here, you can edit the client’s details, start Prep for taxes, create a tax return, or make
clients inactive.
Client details
Let’s take a look at the client details for a client.
1. Select Edit client to view or edit your client’s contact information, see details of their
subscription, and check which members of your firm have access to them.
2. The Notes tab allows you to capture notes created by your team. You can see who
created a note and when. Here’s how it works:
When you add a note to the client file, it’s automatically stamped with the time and
original author
Notes can be viewed and edited by all team members who have access to that
client
Your client will never see notes added here
You can include hyperlinks in notes to give your team fast access to relevant files
and websites
3. Any documents you or your client upload to their QuickBooks Online My Accountant tab
are stored in the Shared Documents tab. With documents saved in a safe and secure
location, there’s no more worrying about sharing confidential information over email or
wondering whether you’re looking at the right version of a file.
4. For important notes, add a star icon and filter them through here.
Adding notes while in a client file
The Notes tab in the Client List allows you to capture notes created by your team. However, you
can also add and view notes while you’re in your client’s books. To do this:
You can see previous notes added via the client screen in date order, plus any pinned notes.
2. Enter your note in the Add a note field
The Who can see this? link shows which team members have access to this file and can see notes
created here.
Your notes will automatically sync to this client details section in QuickBooks Online Accountant and are
only visible to you and your team.
Bookkeeping and month-end review
The Bookkeeping tab in the Client List gives busy practice owners an easy way to see the month-end
review status of each client on their Client List.
1. Progress tracking
Progress tracking in the Client List makes it easier to identify roadblocks before the end of the
month and provides additional support to bookkeepers who need it.
Transaction review
Account reconciliation
Final review
Waiting
Done
In this example, perhaps the bookkeeper needs to schedule a call with the client to review
their personal transactions to unblock the transaction review stage.
You can find out more about the Month-end review functionality in the Month-end
review lesson.
Check Answer
That’s right.
The notes sit inside QuickBooks Online Accountant, so only team members who have access to
client files will be able to see them. This means it’s a great way for team members to keep the
client details up to date.
Managing subscriptions
Keeping an eye on your client requirements
Managing client subscriptions and billing is a key part of your role as a ProAdvisor. As
companies grow, so do their requirements in their QuickBooks Online company, so there may
come a time when you need to reconsider their subscription levels.
The client’s Usage dashboard makes it easy to check they’re using the subscription level of
QuickBooks Online best suited to offer them the tools they need to manage and grow their
business.
The tabs at the top of the dashboard page show you clients’ subscription information according
to how they are billed, and you can view your billing details.
1. Accountant-billed subscriptions
In this tab, you can see the subscription status and QuickBooks Online subscription level
for the clients whose subscription costs you pay. You can see the current estimated
monthly total, and details of previous bills and payments.
2. Client-billed subscriptions
This tab shows you the subscription status and QuickBooks Online subscription level of
clients who pay their subscription costs directly.
3. Billing details\
The Billing details page provides a snapshot of your QuickBooks Online and Payroll
subscription charges, and a monthly breakdown of your QuickBooks Online charges.
You can see the estimated monthly total for all your active client QuickBooks Online
and Payroll subscriptions
Below this, you can review your previous monthly charges in the history section,
including payment method and amount
You can review your monthly charges in detail using the View PDF or Download
CSV options
To update your payment information at any time, simply select Edit billing
information
ProAdvisor tip
The dashboard currently displays the details of your client’s QuickBooks Online and Payroll
subscriptions, with QuickBooks Time subscriptions added soon.
Knowledge check
Which of these can you select in the Billing details tab to view an itemized invoice? Select
Print apply.
all that
View
Download
Send to email address
Check Answer
That’s right.
If you need to see an invoice you are creating in an itemized format, you can either Download
CSV or View PDF.
Each subscription level in QuickBooks Online is designed for a wide range of users, whether
Usage limits
they are busy retailers, architects, dentists, dieticians, or demolition teams. But each subscription
level also has limits.
By monitoring your client’s usage limits, you can help make sure that, as their business grows,
they’re using the right version of QuickBooks Online for their needs.
The Usage tab shows how much the client has used up of the following limits:
Billable users
Chart of accounts
Classes and locations
Tag groups
ProAdvisor tip
Learn what usage limits are, how they affect your account, and what to do if you exceed your
limit.
Learn about the different options for user roles and access permissions.
Upgrading and downgrading
Does your client need more from QuickBooks Online? Or is their current subscription more than
they need? A subscription level that was a good fit for your client a few years ago might be
insufficient now. They may need more room to maneuver, and improved features and space to
continue to grow into.
You can upgrade or downgrade the subscription level for your ProAdvisor Preferred Pricing
clients and for those who pay for their QuickBooks subscription themselves.
a. In QuickBooks Online Accountant, select the Gear icon and then select Subscriptions and
billing under Your Company
b. Select the Accountant-billed subscriptions tab
c. Find the client you want
d. Use the Subscription actions dropdown and select Upgrade or Downgrade
Note: If your client downgrades from QuickBooks Online Advanced, they (or more likely
you) may need to remove users to stay within their usage limits.
a. Features: Downgrading means losing some features in your client’s current QuickBooks
Online plan. Make sure the new QuickBooks Online plan meets their needs. Check out
this comparison chart to review what will be lost when they switch
b. Third-party apps: Changing a plan might affect some third-party apps connected to
QuickBooks Online. This happens when the new plan doesn’t support the feature the client
app works with. Review each affected client’s apps by selecting Apps in the left-hand
navigation in QuickBooks Online Accountant, then selecting the Client apps tab
c. Plan discounts: Downgrading will remove all discounts on the current plan
ProAdvisor tip
As a ProAdvisor, you’re in a great position to assess your clients’ evolving business needs.
Remember: You can use the New Client Checklist as a tool to help analyze a client’s needs and
recommend the appropriate QuickBooks Online subscription.
Knowledge check
Which usage limits can you see in the Usage tab under Account and Settings? Select all that
apply.
Billable users
Classes and locations
Chart of accounts
Apps
Tag groups
Product/Services list
Check Answer
That's right!
Classes and locations are only available with QuickBooks Online Plus and QuickBooks Online
Advanced subscriptions. QuickBooks Online plan limits depend upon the subscription level.
Firm users can get access to certain client files, but clients don’t see the names of the users or
individual staff names. All the client is aware of is that they are working with an accountant
specialist or ProAdvisor. They could, in fact, be working with two or three.
Firm users can be granted three levels of access to the firm’s QuickBooks Online Accountant company
file. Not everyone will need to have full access to everything, so a bookkeeper might need full access to
the client’s books, but other team members might not.
Full access: This allows the user to edit QuickBooks Online Accountant firm
information, modify team users, update the firm’s ProAdvisor Preferred
Pricing subscription billing account, and access the firm’s books
Basic access: This gives the user view-only access to QuickBooks Online Accountant
firm information, but no access to team and subscription billing, and no access to the
firm’s books
Custom access: This option allows you to customize the permissions for the team user
Use the Team menu in the left-hand navigation to access team user details. You’ll see a grid
with the name of each of the firm’s staff, their title, email address, type of access, and status.
ProAdvisor tip
If you add a member of your team to a client’s QuickBooks Online file as an accountant user,
they’ll have the same permissions as a company administrator.
It’s worth considering that while access to the firm’s QuickBooks Online Accountant company
can be customized, team users can’t have custom access to client files. This means that they see
everything, including the client’s payroll.
You can set custom access to your firm’s own accounts here.
5. From the Access dropdown, select the right level of access
That’s it! The new user is now added as a firm user and has access to the defined areas of the
selected clients.
Team access rights
When setting up a new firm user, you can manage their degree of access to the firm’s books in a number
of ways.
There are three levels at which you can set firm user access that allow employees to manage the
firm’s administration. You can use these to support the safe and efficient management of the
business.
1. In Quick Books Online Accountant, select Client from the left-hand navigation
2. Select the Filter icon and select the Edit leads link
3. Select the dropdown next to the client and choose the user to be assigned as the client
lead
4. Select Save
5. Finally, select Got it
The client lead’s initials now appear as the lead for the client file. They can now easily
filter the list to show just the clients they’re responsible for.
Knowledge check
Which team permissions should you set to Yes for a firm user assigned to invoicing for the
firm?
1
2
3
4
5
Check Answer
Great job.
By giving the team user access to customers and accounts receivable, they’ll be able to create
invoices for any of the firm’s clients, but without being able to access their QuickBooks Online
data.
Managing your work
You don’t need to juggle
As a financial professional, you want to make sure that you meet deadlines for all clients and
accounting periods. However, keeping track of everybody’s tasks, including your team’s and
clients’, can be challenging.
Create projects and tasks right from your Work dashboard for all your clients. If they
don’t use QuickBooks Online, you can add them as a client at the same time you create a
project
Assign projects or specific tasks to yourself or your team members
Manage requests and messages for your clients, along with all the work you do for them
See a bird’s-eye view of the deadlines of your firm and what’s due today, next week, or
next month, or what’s overdue
Set up repeating projects that will occur on a regular basis for the same client
Duplicate existing projects across multiple clients to save time on manual entry
With this level of organization, you no longer need separate to-do lists for different clients, and
you can better manage your time and focus your attention. You can also better understand your
team’s capacity and never miss a deadline.
1. Create a new project with unlimited number of tasks.
2. Use one of the QuickStart templates or create a project template from scratch.
3. Filter tasks by client, team member, or project type.
4. Switch between the card, list, and calendar view.
5. Use the dropdown to change the status of the task. The options are:
To do
In progress
Blocked
Done
6. Click here to edit the notification emails that you receive regarding projects and tasks assigned to
you. Notification settings can also be accessed from the Company settings, in the Notifications
tab. These settings are unique to each team member.
7. Request information and documents from your clients from right inside QuickBooks Online
Accountant. You'll learn more about Client request in the next lesson.
8. QuickBooks automatically adds tasks to your Work dashboard for unreviewed Bank feed
transactions and outstanding payroll tasks. If you don't want these automated tasks included, just
select the toggle button here to turn it off.
Let’s see how to set up a project for a team member to manage a client’s weekly payroll.
Creating a project in the Work Center
Watch the video to see how it’s done. The individual steps are below for you to follow.
To add more tasks, select Add a task again. You can add as many tasks as needed to
manage the process. In our case, we only need one task, so we’re done.
14. Next, select Save
That’s it. This project and task are saved in the Work Center.
Knowledge check
Which of these does the Work feature in QuickBooks Online Accountant allow you to do?
Select all that apply.
Set up repeating projects for the same client that will occur on a regular basis
Receive messages from clients in real time
Filter tasks by client, team member, or project type
Share your practice dashboard with your clients, so they can see what you’re working on
Check Answer
That’s correct.
The Work menu allows you to set up repeated projects and you can filter all tasks by client, team
member, or project type.
Project templates
To make the process of assigning projects with multiple tasks easier, you can access a range of QuickStart
project templates or can create your own custom templates to reuse.
1. QuickStart Templates
You can use QuickBooks Online Accountant’s standard templates if you’re mapping out
a common series of tasks. You can adjust tasks, due dates, and assignees to tailor it to
your needs.
Alternatively, you can duplicate these and use them as a starting point to create a fully
customized project without having to start from scratch.
Bi-weekly payroll
Client onboarding
Monthly bookkeeping
Yearly taxes
2. Custom Templates
You can create and save fully customized templates from a QuickStart template or from scratch.
These custom templates allow you to build workflows specific to your firm or clients’ needs and
ensure that every team member applies a consistent workflow every time.
3. Creating a project using a template
To use a template, start creating the project as you'd normally do.
Then from the Project template dropdown, select the desired template.
Once the template is selected, the settings and the tasks associated with the template by
default appear in the drawer.
For example, selecting the Monthly bookkeeping template automatically turns the Repeat
option on and adds some predefined tasks that you can edit or add to.
Client requests allow you and your client to share documents and messages with ease. All
2. Client View
Clients can see your requests in the My Accountant tab in their QuickBooks Online. To ensure
they don’t miss anything, they can sort requests by due date. They can respond to requests and
share documents, and all documents shared this way appear in the Shared documents tab.
ProAdvisor tip
While you can add clients without QuickBooks Online to your client list, you can only send client requests to clie
Let’s see how to send a client request to upload their bank statement to QuickBooks Online.
Creating a client request
Watch the video to see how it’s done. The individual steps are below for you to follow.
1. Starting in QuickBooks Online Accountant, select Work from the left-hand navigation
2. Select Create client request
3. Enter a name in the Request name. In our case, we want to task the client to send their
bank statement, so we call it Upload bank statement
4. Choose the client from the Client dropdown
5. Set a due date
6. Set the Status of the request. In our case, it’s To do
7. In the Details box, enter any details the client might need to know
8. To send an email notification to the client, check the Notify client box
9. Next, select Publish to client’s QuickBooks
Knowledge check
You asked a client to send you their bank statement, but they sent it for the wrong date range.
How can you ask the client to send the correct bank statement, as part of a tracked
conversation?
That’s right.
Using the comments feature on the client request makes it easy to keep track of the whole
conversation with the client.
Supporting your Small Business Clients
Let’s see how your clients would record received but not yet deposited checks in QuickBooks
Recording payments as Undeposited Funds
Online.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Let’s start with recording the first payment from a customer.
By selecting the invoice, QuickBooks Online will calculate an amount in the Amount
received field. Make sure this amount matches the actual amount of the check.
8. Select Save and new
Now let’s add another payment from a different customer:
1. From the Customer dropdown, select the customer the second payment is from
Now let’s see how your client would record a bank deposit for the two checks we added in the
Recording a bank deposit in QuickBooks
previous video.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Online
1. Select + New and then Bank Deposit
2. In the Account dropdown, select the Checking account
3. Set the Date
Notice how the two payments we added earlier show up in the Select the payments
included in this deposit section.
4. Check the boxes for the payments to include
The total amount of the deposit reflects the sum of the selected payments, and this will be
the deposit shown in the check register.
5. Select Save and close
Knowledge check
Your client records payments from customers in QuickBooks Online as they receive them
throughout the day. They have just been to the bank and deposited 4 checks.
What’s the next step they have to do to deposit those payments in QuickBooks Online?
Check Answer
That’s right.
From the Bank deposit screen, they can now select the undeposited payments and make them
deposited.
If clients don’t follow the appropriate accounting workflows, then things get out of sync. This
When workflows go bad
may result in incorrect financial data, and many times numbers don’t add up when you’re trying
to reconcile them.
You may sometimes have to unravel a problem and show them the best way to get something
done.
Select the headings to find out more about some of the most common workflow errors.
1. Misposted Checks
a. The client’s workflow
Take an example client, Charlotte. She has received a check from her customer as
a prepayment deposit on a job that she will complete in the future. To record the
deposits, she taps the + New button and selects Check to record the payment.
b. The problem
By doing this, Charlotte inadvertently creates a vendor instead of a customer and
assigns Professional Fees as the category. This decreases the balance in the bank
account (credit) and increases the amount of Professional Fees expense reflected
on the Profit and Loss report.
c. Solution
You can point out to Charlotte that all the transactions in the + New menu are
sorted by entity type. Instead of selecting Check from the Vendors column, she
should have looked at the Customers column and selected Receive payment. Once
she creates the invoice for the completed job, she can apply the payment to the
invoice to reduce the amount owed.
When recording a check paid by a customer, going to the + New button and selecting Check to
record the payment
When recording a check paid by a customer, going to the Customers column and selecting Receive
payment
When recording a check paid by a customer, going to the Banking center and recording the check
there
Check Answer
You can use specific tools in QuickBooks Online to unravel the cause of the problem.
Tools in QuickBooks
1. The Transaction Journal Report Online to identify issues
The Transaction Journal report shows debits and credits for each transaction and provides
a more focused view of amounts and accounts not visible from the transaction itself.
You can view everything the client has recorded and even sort it by individual users to
see if a bookkeeper is creating an error.
While the Transaction Journal report is mainly for accountants, anyone familiar with
double-entry accounting can use it for calculations, advanced insight, or auditing
purposes.
2. Voided / Deleted Transaction Tool
The Voided/deleted transactions tool helps you spot any transactions that a client may
have deleted or voided, whether accidentally or on purpose.
The tool is a filtered version of the Audit Log where you can see when changes happened
and who made them.
ProAdvisor tip
There are a few limitations to be aware of when printing the Audit Log. On screen, it highlights
in yellow the changes made to a specific transaction. However, when printing the log, the
highlighting does not show. Also, only 300 lines will print from the Audit Log for a particular
search criterion. To print additional lines, you could screenshot the other lines and print your
screenshots.
Follow the link for further tips on how to use the Audit Log:
Get into the habit of coaching your clients in the correct workflows. Here are some hints and tips to start
you off.
Tips on coaching best-practice workflows
1. Sales and Expense Centers
Your clients might find navigating QuickBooks Online easier if they understand what the
different terms mean and what the different menus are for. Help them get into the habit of
using the right words: bills come from vendors, and invoices go out to customers. There’s
even a useful glossary you can send out to them.
The Sales Center is their hub for viewing and recording their invoices and payments from
their customers.
The Expense Center is for recording incoming bills for products and services and their
payments to vendors.
For many small businesses, this will be all they need to know when they start out.
2. Keep it Simple
Help clients understand just what they need to do for the current complexity of their
business—no more and no less!
Understand their business and encourage them to use best-practice workflows, but remind
them that, as their ProAdvisor, you’re their go-to expert in QuickBooks Online.
This way, you can catch potential errors in time and coach your client on best practices.
Estimates are non-posting transactions that your clients can send to their customers to indicate
how much their product or service would cost.
The estimate workflow
As estimates move from the proposal stage to sale, clients can update the status and mark them
as Pending, Accepted, Rejected, or Closed. When estimates have been invoiced in full,
QuickBooks Online automatically marks them as closed.
That’s it. QuickBooks Online will send the email with the estimate to the customer.
Before clients can create a purchase order using an estimate, they need to activate the Use
purchase orders option in Account and Settings.
Using an estimate to create a purchase order
Let’s see how to do that and use an estimate to create a purchase order.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Let’s start with turning the Use purchase orders option on. To do this:
Notice how the estimate we created in the last video appears there.
3. Select the 1 Open Estimate option in the Open Estimates column
4. Next, select the line of the estimate to be turned into a purchase order
5. On the Estimate screen, select the down arrow next to Pending and change the status to
Accepted.
Note how there are four different status types for estimates in QuickBooks Online:
Pending, Accepted, Closed, and Rejected.
6. Next, select the down arrow next to Create invoice and select Copy to purchase order
7. Select OK when the pop-up appears. If another pop-up appears, select Yes
8. On the Purchase Order screen, select the Vendor your client wants to order the item
from
9. In the Ship to dropdown, select the customer whose project the item is for and who the
estimate was created for
10. Fill in any other details as necessary
11. When done, select Save and send. This will send the purchase order to the vendor
Once the vendor delivers the item, your client can add the purchase order to a bill, check, or
expense, depending on how they’d like to pay for it. Let’s see how to add it to an expense
transaction.
Finally, let’s see how to bill the customer when the job is complete.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Converting an estimate to an invoice
1. From the left-hand navigation, select Sales, then Customers
2. Select the Estimate box in the money bar
3. Find the right customer and select Start invoice in the Action column
4. Set the Invoice date and the Due date for the payment
5. From the drawer on the right, select add to add the details of the estimate to the invoice
6. Review the invoice and the content of the email in the Send email screen. When ready,
select Send and close
Knowledge check
Which of these statements about estimates in QuickBooks Online are true? Select all that
apply.
Check Answer
That’s right.
Estimates are non-posting transactions and they can be used to create purchase orders and
invoices.
Your client may have some questions about credit memos. Let’s see some of the most common
ones.
Now, let’s create an invoice and apply the Credit memo to it.
If your client has the Automatically apply credits option switched on in Account and
Settings, QuickBooks Online will prompt them to apply the existing credit memo to the
new invoice. Otherwise, they would have to do it manually.
Knowledge check
Which of these options is true about Credit memos in QuickBooks Online?
Check Answer
That’s right.
A credit memo is a credit applied to the customer’s accounts receivable and it reduces the
client’s accounts receivable.
Customer statements
Your client’s customer may want a clear statement to see where their account with the client’s
business stands and ensure that they have applied the credit. Your client can do that by creating a
customer statement.
There are three different types of customer statements your clients can create in QuickBooks
Online. They are:
The Balance Forward statement shows a list of invoices and payments with
the balance for the date range selected.
Balance Forward
It’s perfect for situations where a client wants to provide customers with a
summary of what is still due on their account.
With the Open Item statement, your client can show a list of all open and/or
unpaid invoices.
Open Item
Advise clients to use this when they want to provide detail of all unpaid
invoices, unapplied payments, and credit memos to their customers.
Use the Transaction Statement to show all the transactions between the
Transaction customer and the client’s business between two set dates.
Statement Clients might use this when there is a large volume of transactions for a
customer so they can see how their payments have been applied.
View existing Customer statements
Your clients can easily view existing statements. They need to:
Vendor Credits
Returning items
Sometimes, clients might have to return items to the vendor, who, instead of refunding the cost,
may decide to credit your client’s account. Your client can then use this credit against future
purchases, but needs to record the credit and adjust the original expense.
Vendor Credits are for returns of products or services, or discounts received on account after the
About Vendor Credits
vendor has issued the bill and the client has recorded it in QuickBooks Online. They post as a
debit to decrease accounts payable.
A Vendor Credit can then be:
ProAdvisor tip
In the Advanced tab in Account and Settings, clients can select Automatically apply credit
to automatically apply Vendor Credits to existing open or future bills.
1. To access the Vendor Credit screen, select + New, and then Vendor
Credit. Alternatively, select New transaction from the Expenses Center and then select
Vendor Credit
2. In the Vendor Credit screen, from the Vendor dropdown, select the vendor the credit is
from
3. Next, set the Payment date of the credit
4. In the Item details grid Product/Service column, select the item the vendor credit is for
5. In the Description column box, add a note explaining the credit
6. Set the Rate and the Quantity of the credited item
7. In the Customer column, add the customer the item was ordered for
8. In the Memo field, your client can add additional notes
9. Then select Save and close
Now let’s go and see the Vendor Credit and apply it to a bill.
Knowledge check
Which of the following statements is true about Vendor Credits in QuickBooks Online?
Vendor Credits can’t be applied to a bill that has already been received
Vendor Credits post as a debit to decrease accounts payable
A Vendor Credit can be linked to a cash refund, when the cash is deposited
Vendor Credits post as a debit to increase accounts payable
Check Answer
That's right.
Vendor Credits post as a debit to decrease accounts payable.
Deposit transactions
The need for categorizing deposits
Sometimes clients may receive deposits that are not related to customer transactions. Adding
these along with the rest of their income deposits would lead to confusion and inaccuracies with
future tax payments.
Simply put, deposit transactions are for any money coming into the business that is not subject to
Understanding deposit transactions
sales tax or income tax, and that doesn’t have to be matched to a sales receipt or invoice in
QuickBooks Online.
However, clients need to record and categorize these transactions to the appropriate account on
the chart of accounts.
Have a look at some cases when clients would use deposit transactions:
When the client receives funds from loan proceeds or contributions of cash from owners
When the client receives a refund from a vendor and wants to record it directly against
the expense account or to a Refunds Received income account
When the client doesn’t record income using sales transactions (invoices or sales
receipts) and wants to record deposits directly to income accounts
When an employee reimburses the client’s company, and the client needs to record the
reimbursement against the Employee Loan receivable account
When the client receives a tax refund. This screen is where you record it in the Tax
Refunds account
ProAdvisor tip
Your client can add multiple funds to the same deposit. For example, they might include both
customer payments and other funds in a single deposit.
Knowledge check
Which of these situations would call for a deposit transaction? Select all that apply.
Your client receives a payment from a customer, but it’s not a check
Your client receives a tax refund from the IRS
Your client receives a cash back payment from a vendor for ordering in bulk
Check Answer
AThat's
tax refund
right. or a cash back payment are perfect examples of money coming in that isn’t matched
to an existing payment. They need to be be recorded as deposit transactions.
QuickBooks Payments
Faster payment
Your clients are busy people, focused on delivering a service to their customers. If they get paid
in cash or check, receiving the payment can take time, not to mention the time it takes for clients
to deposit these payments in the bank.
When clients create an invoice with QuickBooks Payments, they can select the way they’d like
to get paid (credit card or ACH or both) and then send the invoice via email to their customer.
When the customer selects the View and Pay button to view the online invoice, they then see the
option to select the Pay button. Any payment made here is recorded automatically in
QuickBooks Online.
Sales receipts and QuickBooks Payments
If clients are paid by customers at the time of sale, they won’t want to create and send an invoice.
In these cases, they just need to create a sales receipt to record both the sale and payment on the
same screen in QuickBooks Online. Customers can then be mailed the receipt so they have a
record of the sale.
The sales receipt workflow starts by selecting the + New button and then Sales Receipt in the Customer
column. After completing the customer and sales details, select Credit Card as the payment
method, then use the Enter credit card details button to take payment. Finally, clients save the sales
receipt and send it to the customer.
How does QuickBooks Payments work for customers who don’t pay at the point of sale?
When clients send the invoice to the customer, the status is updated to Sent in the Invoices tab in
the Sales Center.
The customer receives the email and is able to tap Review and pay to view the invoice in a
browser and make a payment.
STEP 3: THE PAYMENT PROCESS
The customer enters the payment information (debit card, bank transfer, or credit card) and selects
the Pay button.
STEP 4: PAYMENT CONFIRMATION
The customer receives a payment confirmation and can print or download the receipt directly
from the browser.
The payment status is automatically updated in QuickBooks Online. There’s no need for clients
to record the payment or the deposit—QuickBooks Online does it all!
ProAdvisor tip
The QuickBooks Payments Instant Deposits option is a great way for clients to manage their
cash flow by getting paid faster. For an additional 1% per transaction, available funds can be
instantly deposited into their bank account, allowing them to pay their bills, pay employees, and
keep the business moving.
Clients can deposit a minimum of $1 or a maximum of $2,000. They can use Instant Deposits up
to three times daily as long as they don’t exceed the $2,000 limit. For more information about
our Instant Deposits options, please visit our Instant Deposits help page.
If your client has authorization from their customer to charge a recurring amount, they’ll be able
Recurring payments
to create sales receipts that automatically record the sale in QuickBooks Online and deposit
funds into their bank account. This is a great way of automatically billing and getting paid for
services such as monthly maintenance plans or service agreements.
Note: Before a client sets up a recurring monthly charge for a credit card or ACH, Visa, or
Mastercard, they must have written authorization from their customer. The authorization form
appears automatically when saving a new recurring sales receipt.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Knowledge check
Before a client sets up a recurring monthly charge for a customer’s credit card or ACH,
Visa, and Mastercard, what does your client need to do?
Check Answer
That’s right.
Before a client sets up a recurring monthly charge for a credit card or ACH, Visa, and
Mastercard, guidelines require them to have written authorization from their customer. The
authorization form appears automatically when saving a new recurring sales receipt.
Journal entries
When one size doesn’t fit all
Clients normally use sales and purchase forms to record income and expenses in QuickBooks
Online. However, sometimes these forms just aren’t appropriate for the client’s purpose.
A journal entry is an accounting transaction that posts directly to the General Ledger.
When to use journal entries
Here are some rules regarding Journal Entries:
Total debits must equal total credits in order to save the journal entry
You can’t use Products and Services items in a journal entry
When posting to accounts receivable, you must specify a customer
When posting to accounts payable, you must specify a vendor
Your client may use multiple accounts receivable and/or accounts payable accounts in the
same journal entry
Your client can’t mark an amount as billable to a customer
Creating a journal entry
Let’s see how to create a journal entry for the depreciation of equipment that was donated to the
business by the owner.
Watch the video to see how it’s done. The individual steps are below for you to follow.
An adjusting journal entry is an entry in a company’s General Ledger that occurs at the end of an
About adjusting journal entries
accounting period before the company produces its financial statements.
Only
To users
mark with access
a journal to adjusting,
entry as QuickBooks justOnline Accountant
enter the can create
journal entry adjusting
as normal journal
and check the Is
adjusting journal entry? checkbox.
There are a few scenarios where QuickBooks Online would mark journal entries as adjusting
journal entries.
1. ACCRUED EXPENSES
These are expenses your client has accrued but hasn’t paid yet, like loan interest or
accrued payroll. Accrued expenses appear on the Balance Sheet as liabilities.
2. DEFERRED EXPENSES
This is where your client has paid for something but not yet realized the benefit. An
example of a deferred expense would be if they pay for their insurance a year in advance.
Deferred expenses appear on the Balance Sheet as assets.
3. ACCRUED REVENUES
This is where a client has earned the revenue, but they haven’t invoiced the customer yet.
This is a common practice in many industries that work on long-term contracts. These
appear on the Balance Sheet as accounts receivable, which is an asset account.
4. DEFERRED REVENUES
These occur when your client has been paid in advance by a customer but they haven’t
finished the work yet. This appears on the Balance Sheet as unearned income, a liability.
5. NON-CASH TRANSACTIONS\
Not all expenses are cash expenses. Some things represent expenses that don’t have a
cash effect on your client’s business. Depreciation and allowance for doubtful accounts
are two examples of common non-cash transactions.
If regular adjustments aren’t recorded to reflect these activities, it’s easy to get a skewed
picture of a company’s financial position.
For example, a client that has no liability accruing for their annual loan interest might
overestimate how much cash they have. Without ensuring that they keep track of their
growing current debt, they will have incorrect information about the profit they make
each month. Also, when they make the annual business insurance payment and it’s not
accrued, they will have the monthly insurance expense reflected in the wrong accounting
period.
ProAdvisor tip
As an accountant, you can set adjusting journal entries to post automatically using the Recurring
transactions feature in QuickBooks Online. That way, you know that most (if not all) of the
necessary adjusting entries are reflected when viewing monthly financial reports.
Which of these are true about journal entries in QuickBooks Online? Select all that apply.
Knowledge check
You can’t use Products and Services items in a journal entry
Total debits must equal total credits in order to save the journal entry
You can’t use multiple accounts receivable and/or accounts payable accounts in the same journal
entry
Check Answer
That’s right.
You can use multiple accounts receivable and/or accounts payable accounts in the same journal
entry, but you can’t use Products and Services items in a journal entry. Total debits must equal
total credits in order to save the journal entry.
In the past, clients could record their credit card payments in a few ways:
Why use the Pay down credit card feature?
By creating a transfer transaction and matching it from the bank feed
By writing a check
However, they aren’t always sure how to categorize the payment correctly. A common mistake is
categorizing payments from a credit card to an expense account rather than to the credit card
liability account. This leads to incorrect balances in the Banking Center, the Profit and Loss, and
the Balance Sheet.
The Pay down credit card feature uses client-friendly language to help them make the right
choices and it’s a simple workflow to follow. Coaching your clients in this workflow can help
avoid duplicate or miscategorized transactions that you need to tidy up for them at month-end.
Clients still have the choice to pay by check if that’s what they prefer.
Let’s see how to use the Pay down credit card feature.
Paying down a credit card
Watch the video to see how it’s done. The individual steps are below for you to follow.
Notice that there is an option to record making the payment by check. Clients can
also add memos and attachments
7. Select Save to record the transaction
8. Once it’s saved, you or your client can select the More button at the bottom of the
transaction and choose the Transaction journal to see if the right accounts have been
debited and credited
Transfers
Moving your money
Your clients may have multiple company-owned bank accounts for different purposes. They
need to make sure that their books reflect any changes when they’re transferring funds between
them.
Knowledge check
Which is a correct example of using the Transfer functionality in QuickBooks Online?
Check Answer
That’s right.
The Transfer function is to move money from one balance sheet account to another balance sheet
account.
Banking and Tools
Managing receipts and bills
The age-old problem
Keeping track of receipts and bills is a challenge for business owners of all sizes. As a financial
professional, you may have come across clients who collect receipts in shoeboxes or clients who
don’t know how to automate their bills.
The Receipt Capture feature means receipts and bills can be scanned, snapped, then added and
managed in QuickBooks Online. This can be done in all subscription levels.
The Receipts tab in the Banking Center is the home of adding and tracking receipts and
Once a receipt
Logging or receipts
bills and bill is inand
the matching
Receipts them
tab, you can review, isedit,
to transactions add,to
similar orthe
match
banking workflow
Adding bills and receipts to QuickBooks Online
and can be viewed within the Banking Center.
There are three ways to capture bills and receipts so that they can be matched to transactions and
added to the bank feed.
1. FORWARDING BY EMAIL
If bills and receipts have been generated or sent to you or your client via email, you or
they can forward these directly to your client’s QuickBooks Online account.
As a ProAdvisor, if you’re working with multiple companies, you can create one unique
customizable email address per company to make sure every receipt and bill gets
forwarded to the right place. Note that you can only register one unique customized email
address for each QuickBooks Online company.
Once you or your client has set up this email, they can forward bills and receipts as
attachments (if they want to forward several at once) or within the body of an email (if
they’re only forwarding one receipt per email).
If a client accidentally sends a receipt to an email address that isn’t registered with
QuickBooks Online, they’ll get a notification email.
2. FILE UPLOAD
If your client has receipts stored on their computer already, they can drag and drop them
directly into QuickBooks Online. To do this, use the Upload from computer area in the
Receipts tab of the Banking Center.
Here, they can also upload bills and receipts directly from their Google Drive.
Be aware that it may take up to 15 minutes for QuickBooks Online to process the file and
for it to show as ready in the account.
Clients need to simply open the app, take a snapshot of the receipt, and the file will be
uploaded to their account.
Clients can only process one receipt at a time this way. To capture new bills or receipts, they have
to start the scanning process again.
ProAdvisor tip
No matter which method you use, once the receipt files are uploaded, QuickBooks Online uses
OCR (optical character recognition) to scan the information on the receipt and extract the
necessary data to build a transaction record.
You’ll be able to check this information and amend it where necessary before accepting and
adding the transaction.
Setting up receipt forwarding
With emailed bills and receipts, your clients can forward the email to a customized QuickBooks
Online email address. The details are then picked up by the OCR technology and added to the
QuickBooks Online Receipts tab.
Let’s see how to set up a client with receipt forwarding.
Watch the video to see how it’s done. The individual steps are below for you to follow.
To make receipt forwarding active, you’ll need to enable a unique email address within the
client’s QuickBooks Online.
Note that QuickBooks Online can only recognize one receipt at a time when they are sent in the
body of the email rather than as an attachment. However, clients can include multiple receipts in
the same email as long as they are separate attachments.
Let’s see how clients can use the QuickBooks Online app to snap a photo of receipts and add
them to QuickBooks Online.
Capturing bills and receipts in the mobile app
Watch the video to see how it’s done. The individual steps are below for you to follow.
Note that QuickBooks Online frames the receipt so that you can make sure you capture
all of the information needed, including the date, merchant name, and amount.
2. Once satisfied, tap the capture button on the device
Select crop and drag the corner markers to fit the receipt if necessary.
3. If everything looks good, select Use this photo
The app uploads the image of the receipt and the OCR technology reads and transfers the
data to QuickBooks Online.
If necessary, clients can update any missing or incorrectly mapped fields directly in
the For Review section in QuickBooks Online.
Reviewing, matching, and adding bills and
receipts
Once bills and receipts are added, they appear in the Banking Center under For Review in
the Receipts tab.
From here, your client can select the row to have a side-by-side view of the receipt and the data
that has been extracted. Clients can also:
Select Review to edit the extracted information for the receipt. If there are multiple
matches, selecting Review will allow them to choose the match they want
Select Add if they want to create a new expense in QuickBooks Online with the receipt
attached
Select Match if they’re ready to match the receipt with an existing record in QuickBooks
Online
Note: If an imported banking transaction and a receipt are both in For Review, QuickBooks
Online won’t suggest a match until you select Add for one of them.
Let’s see how clients can review bills and receipts in the Banking Center.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Reviewing bills and receipts
1. Go to the Banking Center
2. Select the Receipts tab
If QuickBooks Online finds an expense or bill already entered, it’ll suggest that
you Match the bill or receipt to the existing transaction. Where QuickBooks Online is
unable to find a match, clients can add a transaction manually.
3. In the For review tab, select Review from the action column
4. Set the Document Type
5. QuickBooks Online fills in the fields it can using OCR technology. Add any missing
fields if necessary
6. When done, select Save and next
7. If this is a bill or receipt for a new expense, select Create bill to add it to QuickBooks
Online
QuickBooks Online automatically includes the image of the receipt with the transaction.
To check this, select the Reviewed tab.
Managing users and addresses
Once you’ve registered a unique email for the client, you can specify which users can email
receipts by selecting Manage Senders.
For users to send receipts, they need to be at least standard users with vendor permissions.
As a ProAdvisor, you can forward email receipts to all your clients who have receipt forwarding
enabled. Just remember to use the unique forwarding address for each client that was created
when this feature was enabled in their QuickBooks Online account.
What is the next step in the receipt addition process once your client has captured a receipt
Knowledge check
for a new expense and uploaded it from their computer?
Check Answer
That’s right.
All uploaded receipts that enter QuickBooks Online first appear in the For Review section of the
Receipts tab in the Banking Center.
Excluding a transaction involves removing it from the bank feed and not recording it in your
When to exclude transactions
client’s QuickBooks Online register.
Why might such an action be required? Your client, for example, might inadvertently import a
transaction that has already been reconciled. However, the Banking Center doesn’t match
imported transactions against reconciled transactions, so this creates a duplicate of the
transaction.
The transaction has now been removed from the For Review tab in the bank feed.
4. Select the Excluded tab to see these transactions. From here, you can manage them
further if necessary
If your clients exclude a transaction that they later require in the bank feed, you or they can
Reinstating an excluded transaction
easily reinstate it.
Knowledge check
Which is the best example of when you might need to exclude some transactions from a
bank feed?
Your bank mistakenly imports transactions more than once when first set up
You have transactions that are personal expenses which you don’t want to include in your accounts
You see transactions in the bank feed that match those in your expense transactions
Check Answer
That’s right.
The best example is if your bank mistakenly imports transactions more than once. If this
happens, your statement won’t match the already reconciled transactions, so you’d need to
identify and exclude any duplicates.
Rules can be prioritized, copied, edited, deleted, and exported. Clients can even create bank rules
to add transactions to the register automatically.
They can also be used to automatically split transactions, which means assigning different
categories to multiple lines of a transaction.
Let’s see how to set up a simple bank rule to automatically categorize a client’s equipment rental
expenses.
Creating a rule
Watch the video to see how it’s done. The individual steps are below for you to follow.
Note that the Auto-add feature automatically applies the rule to the imported bank feed
transaction without review. If you would like to review the transaction before it’s added,
use the slider to turn it off.
9. Finally, select Save
Back in the Banking tab under the For review section, there are already transactions that
have been categorized according to the rule and there’s a Rule icon attached to them.
Knowledge check
Which bank feed elements can be automatically configured via a bank rule? Select all that
apply.
Type
Category
Payee
Class
Location
Check Answer
That’s right.
Bank rules can categorize transactions based on all of these.
Reconciling to the bank
Keeping things synced
Reconciling accounts is important to ensure that a client’s bank balances match with their
financial data. However, going through each account statement and manually finding the right
match can take time and attention.
It’s best practice to reconcile accounts monthly to ensure that what clients have in QuickBooks
Online reflects the actual income, expenses, and other movements and adjustments of cash.
Overview of the reconciliation process
The process is necessary to find errors and omissions between QuickBooks Online registers and
the bank.
To reconcile accounts for your clients, you need the beginning and ending balances and the total
Reconciling accounts
amount of withdrawals and deposits on their account.
Let’s see how to reconcile their account with that information.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Notice that QuickBooks Online has already marked all the transactions for that month
cleared in the register and that the difference is zero.
Because all transactions were previously matched and added in the Banking Center
(marking transactions as tentatively cleared), the reconciliation process is seamless.
5. Select Finish now, then Done
ProAdvisor tip
Once the reconciliation is complete, view, print, or download the Reconciliation Discrepancy
report by selecting Last statement ending date xx/xx/xxxx. Or view the reconciliation reports
for all periods by selecting History by account at the top right of the screen, then
selecting View in the Action column next to the right period.
It’s best practice to connect your client’s bank account to the QuickBooks Online Banking
Center. This way, you get account statements automatically on the reconcile page without having
Viewing account statements
to work with paper statements or sign in to the many bank accounts of the different clients.
a. Select the statement you want to use for the reconciliation from the list
You can also see a list of statements that have already been reconciled.
b. Select Done to return to the Reconcile page to begin or resume the reconciliation.
3. VIEWING THE STATEMENT
ProAdvisor tip
You also have the option to change the payee and the posting account. If a check transaction
didn’t come through with the check number, you can also add it here, along with any memos.
Knowledge check
1
2
3
4
5
Check Answer
That’s right.
You can use the filter to search for cleared transactions. You can also use the filter to search by
memo, reference number, amount, transaction type, payee, or date range.
QuickBooks Online alerts you if there’s a discrepancy between the beginning balance on the
Discrepancies with beginning balances
client’s account statement and QuickBooks Online. Before you can start the reconciliation
process, this needs to be resolved.
QuickBooks Online offers a link to run a Reconciliation Discrepancy report, which provides
some guidance on how you can resolve the transactions.
Changed after they were reconciled, if the change affected the beginning balance of the
account
Deleted after they were reconciled
Manually reconciled in the register by changing the reconciliation status to reconciled (R)
Unreconciled in the register by changing the reconciliation status from reconciled (R) to
cleared (C) or no status
Once you’ve resolved the issues with the transactions and the Total Discrepancy Difference is
zero, you’re ready to reconcile.
Rogue transactions
QuickBooks Online’s smart learning capability helps you identify any rogue transactions that
may be preventing you from reconciling.
For example, it can help you identify if a transaction date is incorrect because the posting date
was manually entered and has a clearing date that differs from the bank data. QuickBooks Online
will identify these hidden transactions and give you a link to display them.
This smart learning is available to QuickBooks Online accounts that have been connected to
online banking because it relies on the cleared bank feeds’ transactions.
ProAdvisor tip
We’ll cover more about troubleshooting bank reconciliations in the Advanced product training
on QuickBooks Online.
In most cases, there’s no need to change reconciled transactions. However, if an error is made,
Changing a reconciled transaction
it’s easy to change even a reconciled transaction.
Let’s see how to do this if a client manually changes the amount on a transaction that has been
reconciled.
Watch the video to see how it’s done. The individual steps are below for you to follow.
When you’re next trying to reconcile the accounts, you’ll see an alert warning you that this
account isn’t ready to reconcile.
The Reconciliation Discrepancy Report screen shows the transaction that is causing the
problem. In this case, the issue is with the amount.
2. Select the transaction and edit the amount
3. Then select Save
4. Finally, select Done
While the best method to fix errors with a reconciliation is to use the Reconciliation Discrepancy
report, Accountant users can undo reconciliations if necessary.
Undoing a reconciliation
You may undo a reconciliation if the reconciliation was forced, meaning it was saved even
though the difference was not zero.
Undoing the reconciliation allows you to start over so that you can find the discrepancies.
To undo a reconciliation:
Note that this is only available to Accountant users. Client users won’t see this option.
Overview of recurring transactions
Saving valuable time
For many businesses, most of the expense transactions are one-offs. However, your client may
need to set up and manage transactions that recur on a regular basis.
Recurring transactions in QuickBooks Online can be set up to manage pretty much any
transaction in any workflow, like sales receipts, invoices, bills, journal entries, checks, deposits,
Overview of recurring transactions
or expenses. There’s even an option to include unbilled charges and automatically send emails.
They’re a great way to automate money-out transactions (like rental or insurance payments) that
your client needs to pay at regular intervals and in fixed amounts.
On the money-in side, your client can use recurring transactions to automatically invoice
customers for regular, fixed-price services (such as weekly lawn mowing or monthly
membership subscriptions).
Your client can even set a recurring charge to a customer’s credit card or bank account (ACH)
using a sales receipt, with advance customer authorization.
More advanced recurring transactions can be set up for non-posting transactions, such as
purchase orders or estimates. Notice that the transaction does not have to be scheduled. So, for
example, if your client’s purchase order typically contains the same items purchased but they
don’t order on a scheduled basis, select Reminder or Unscheduled from the Type dropdown.
As an accountant, you can even set up recurring journal entries to reclassify deferred revenue or
prepaid expenses.
You’ll learn more about advanced uses of recurring transactions in the certification training.
ProAdvisor tip
Keep an eye on the recurring transactions to avoid sending out automated invoices for canceled
or delayed work.
Note that a customer, vendor, employee, product/service, or account can’t be deleted if they are
on a recurring transaction.
Which of these recurring transactions could be used if a client needs to set up a monthly
Knowledge check
recurring customer charge including payment?
Check Answer
That’s right.
The great thing about QuickBooks Online’s recurring transaction functionality is that it allows
your client to create them to match their circumstances and needs.
In this case, the client can set up a regular, recurring sales receipt for landscaping services carried
out each month. Remember: A sales receipt means you get paid at the time of sale, so provided
the client is signed up for QuickBooks Payments and has prior authorization to charge the
customer, you can set up the payment as part of the recurring sales receipt transaction. The other
examples are great illustrations of other uses of recurring transactions—they’re just not suitable
for the client’s needs here.
ProAdvisor tip
Clients can also create recurring transactions by selecting Make recurring at the bottom of
eligible transaction screens.
Introducing tags in QuickBooks Online
The easy way to track money
It has always been possible to use accounting tools to track money in and out of a business, but
using classes, locations, and jobs is cumbersome and carries limitations.
Let’s learn more about tags and how they work in QuickBooks Online.
Tagging
1. WHAT ARE basics
TAGS AND TAG GROUPS
Tags are customizable labels that clients can assign to transactions of their choice. Clients
can then group tags and run reports to see how specific areas of the business are
performing.
For example, a charity might want to see donations received and expenses surrounding
each of its fundraising events. In this case, tags and tag groups would look like those
shown below.
2. WHAT CAN BE TAGGED
Tags can be added to:
Estimates Delayed charges Purchase orders
Invoices Delayed credits Vendor credits
Sales receipts Expenses Credit card credits
Credit memos Checks Bank deposits
Refund receipts Bills
The limit on grouped tags is 300, distributed among up to 40 tag groups for QuickBooks
Online Simple Start, Essentials, and Plus subscribers, while QuickBooks Online
Advanced users can create unlimited grouped tags.
4. CAN MORE THAN ONE TAG BE USED FROM THE SAME GROUP?
As many tags can be added to a transaction as are needed, but only one can be added
from each group.
If your clients choose to delete a tag group then the tags contained in that group aren’t
deleted, but they’re no longer associated with the deleted group. If clients elect to do this
then they’ll receive a warning message explaining the impact.
Tags provide a quick and easy way to compare data—perfect for when other categorization
methods may be more complex.
The benefits of tags and tag groups
For example, a professional services firm may tag sales and expenses for various clients based on
the referral source. Using tags in this way can help clients see which advertising channels yield
the most business.
Another example could be a sales manager who uses tags to track sales made by individual team
members to see who’s selling more. Additionally, he could use tags to see who’s billing the most
expenses. This combined data can show who’s contributing the most to the bottom line.
Unlike other methods that must be used consistently on every transaction to generate accurate
reports, clients can assign tags as needed. They work best for items selected from a list such as
invoices, sales receipts, and credit memos. By contrast, custom fields are best for unique data,
such as purchase order numbers.
Even if you or your clients already use classes, locations, jobs, and custom fields, tags can
provide another dimension of data labeling.
Tags are available in all subscription levels of QuickBooks Online, offering a cost-effective
solution for many businesses.
Which of the options are true of tags and tag groups in QuickBooks Online? Select all that
Knowledge check
apply.
Up to 40 tag groups can be created with a QuickBooks Online Simple Start, Essentials, or Plus
subscription
Unlimited groups can be created with a QuickBooks Online Advanced subscription
Up to 300 grouped tags and unlimited ungrouped tags can be created with any QuickBook Online
subscription
Tags cannot be deleted
Tag groups can be deleted
Tags cannot be added to invoices
Check Answer
That’s right.
There’s a limit of 40 tag groups and 300 grouped tags for each QuickBooks Online company,
with the exception of QuickBooks Online Advanced, which offers unlimited groups. Ungrouped
tags are unlimited.
Tag groups and tags don’t affect the books themselves so they can be deleted and reconfigured as
many times as necessary.
If a tag group is deleted, a warning will appear indicating that the individual tags in the group
will still be available, but they’ll be ungrouped if you proceed with the deletion. These newly
ungrouped tags will still be associated with their transactions.
1. Here, the tag group is for money-in transactions such as sales, invoices, or deposits.
2. Here, the tag group is for money-out transactions such as bills, expenses, or credit notes.
3. This shows the aggregate amount of money-in transactions assigned to each tag.
4. This shows the aggregate amount of money-out transactions assigned to each tag.
5. This shows the number of tags created and remaining, and the number of tag groups
created to date.
Let’s tag some transactions to see how to track expenses and sales.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Tagging transactions
1. Navigate to the Expenses Center
2. Select any expense from the list and open it
3. Notice that by selecting the Tags field, a list of existing tags is displayed. You can select
any of these, or add a new tag or tag group by entering the name of the tag and selecting
+Add
4. Select Manage tags
5. Select Create group
6. Enter the Group name and assign a color for the new group
7. Then select Save
8. Now you or your client can create tags within the tag group. Enter the tag name and
select Add
You can add tags to a transaction from different groups, but not more than one tag from
the same group.
9. Once the tag group and the tags are ready, select Done, and close the drawer. This will
return you to the transaction edit screen
10. To tag the transaction form, select the tag from theTagsfield or start entering the name
of the tag and select it when it appears
11. Next, select Save and close
The Money In and Money Out cards indicate the total dollar value summary of relevant
transactions by tag within a tag group.
3. Use the dropdowns to choose a date range and a different tag group or ungrouped tag
Selecting the colored bars (green for Money In, turquoise for Money Out) allows you or
your client to zoom in and see the list of Transactions by Tag making up that total.
Disabling tags in QuickBooks Online
By default all QuickBooks Online company files have tags turned on, but they can be turned off
via the Tags setting if required.
To access the Tags setting:
QuickBooks Online offers a range of reports to help you and your client analyze the state of their
business.
There are a few key reports (such as the Profit and Loss and Balance Sheet reports) that help
clients gain business insights and make sound decisions.
However, you need to be able to analyze them to get the most out of them. For that, QuickBooks
Online also offers various chart options to visualize your clients’ financial data.
Your current experience may differ from what you see here.
The Profit and Loss report is the one that most clients are familiar with. It summarizes the
amount of financial activity associated with each income or expense account for a specific period
ofThe
time.Profit
This willand Loss
indicate report
whether your client is operating at a profit or a loss.
By running a prior period comparative Profit and Loss report, you can reveal cash flow trends in
spending and earnings from the business.
Running a comparative Profit and Loss report
A comparative Profit and Loss report allows your client to compare the current or past
performance of their business with that of a different period.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Expenses:
Review the video to see how the conversation between you and a client might go.
The key metrics to consider when analyzing the Profit and Loss report are:
Gross Profit: This shows how much of your client’s revenue is available to pay for
operating expenses after paying for cost of goods or services sold
Gross Profit Margin: This shows the amount of gross profit made for each dollar of sales
Net Profit (loss): This shows the amount the company made or lost from operations
Net Profit Margin: This shows the amount of net profit or loss for each dollar of sales
You’ll see that some transactions will need reclassifying. We’ll cover that inThe Reclassify
transactions tool lesson.
Knowledge check
Which accounts on this Profit and Loss report need more investigation? Select all that
apply.
1
2
3
4
5
Check Answer
That’s right.
Rent and Lease have seen a significant decrease in value. You’ll want to ask your client why this
is.
Ask My Accountant is automatically registered as an uncategorized expense by QuickBooks
Online. You’ll want to take a deeper dive into the transaction report with the client to agree on
how each of these should be correctly categorized in the future.
A balance sheet summarizes the financial position of a business at a single moment in time.
That’s why it’s commonly referred to as a snapshot of the business. This report reflects whether
the assets that the business owns are enough to offset its liabilities and leave a net equity balance
after all liabilities have been paid off.
Below, you can find a list of subsidiary reports to help you prove the Balance Sheet.
TOOLS:
ProAdvisor tip
You can also run comparison reports for the Balance Sheet to compare it with a previous period.
Add the % options to give you the opportunity for further analysis.
Knowledge check
What would you investigate on this balance sheet?
Uncategorized Asset
Furniture and Equipment
Good SMB Loan
Owner’s Pay
Check Answer
That’s right.
You’d want to investigate the uncategorized asset and ensure that it gets correctly categorized.
Charts in the Performance Center make it easier for managers and decision-makers to visualize company
financial data. This feature, available to all accountant users in any QuickBooks Online subscription,
Performance
enables more effectiveCenter charts monitoring and informs commercial strategies. The feature
business performance
is also available to client users in QuickBooks Online Advanced subscriptions.
QuickBooks Online Advanced users access Fathom within the Reports menu
under Smart reporting.
Going
Reportthe options
extra mileto
foranswer
your clients
common business questions
Effective reporting can give your clients the business intelligence they need to make those all-
important business decisions—but where do you go to provide them with it?
QuickBooks Online gives you and your clients the tools to keep track of their financial data so
that it’s accurate, reliable, complete, and available in real time.
Using reports to their full potential will prepare you to help your clients make decisions and
support their business goals.
Your current experience may differ from what you see here.
Exploring the dashboard
Apart from the Reports Center, clients can gain immediate insight from the dashboard in QuickBooks
Online. The two tabs offer an easy-to-digest financial summary for the business.
BUSINESS OVERVIEW
The Business overview tab offers a useful overview of the business’s point-in-time financial position. The
way the sections are laid out allows clients to easily spot issues as they emerge.
Start with the end in mind
In order to make good decisions about their business, clients need data that is accurate, reliable, and
complete.
Let’s take a look at how best-practice workflows and accurate bookkeeping are crucial to the reporting
process.
There are a number of common business questions clients will ask. You can add real value by providing
them with key reports that clearly answer their questions.
Answering common client questions: Part 1
1. Who owes me money?
Report to use: A/R Aging
Why: It lists all customers who currently owe balances and how old the balances are.
8. How much revenue (less cost of goods sold) is available to cover operating costs?
Report to use: Profit and Loss
Why: This is an important profitability metric. You can tell a business owner whether
they need to raise prices or reduce spending, or both.
12. If I show a profit, why isn’t there any cash in the bank?
Report to use: Statement of Cash Flows
Why:The Statement of Cash Flows shows the cash flowing in and out of a business for a
specific period of time. It breaks down the source of cash received and spent into
operating, investing, or financing activities. This can help a business identify whether it’s
generating more cash than it’s using.
ProAdvisor tip
Download a pdf copy of these questions and reports here: Common questions you can answer
with reports
Knowledge check
Your client is considering new computers for their business. They would love to be able to see
real-time accurate financials so that they can decide whether they have enough profit and cash
flow to take out a small business loan to cover the cost of the equipment.
Which reports should you compare to help them make this decision? Select all that
apply.
Balance Sheet
Profit and Loss report
Statement of Cash Flows report
Expenses by Vendor Summary report
A/R Aging report
Check Answer
That’s right.
Before applying for a loan, your client should ensure they have clean books and have reviewed
the Profit and Loss report against the Cash Flow Statement so they can be sure they’ll be able to
make the repayments.
One of your e-commerce clients ordered far too many products in the build-up to the holiday
Knowledge
season last winter.check
This left them with too much stock in January and they had to offer discounts
in order to shift the stock.
Which report could help prevent them from making the same mistake next year?
Check Answer
That’s right.
The Sales by Product/Service Summary report will help your client track the sales of each
product over time to best evaluate past growth and figure out the sweet spot.
If a client is not set up properly (using Product/Service items) and following proper workflow
(using sales receipts or invoices), they could end up ordering the wrong amount. This would
result in either too much of the product (tying cash up in the product as an asset) or too little
(resulting in lost sales opportunities).
Customizing reports
Give your clients exactly what they need
To make the right decisions about their business, clients need the right access to their financial data.
However, standard reports might not present the information they’re after in the most meaningful way.
QuickBooks Online allows your clients to customize reports in different ways, depending on the
type of report they’re running.
Available customization options vary depending on the type of report you’re running. The
customization options are divided into five main categories:
General
Rows/Columns
Aging
Filter
Header/Footer
Your current experience may differ from what you see here.
4. Some reports allow report comparisons from multiple time periods, including a custom
period, and see changes over time. Comparison columns can also be reordered.
5. Choose Cash to include only money paid or received.
Choose Accrual to include invoices and bills dated during the reporting period, regardless
of whether or not they’ve been paid.
6. You can expand or collapse sub-list items by selecting this option. Alternatively, to
collapse some sub-list items, select the down arrow to the left of the name to be
collapsed. Selecting the right-facing arrow next to a name expands the list.
It’s also possible to sort reports in ascending or descending order and add notes to the
bottom of a report. Tap on the header to include the logo (if there’s a default one
connected with the company), or edit the company name, or report title.
7. Select this option to sort by total in ascending or descending order.
8. Add a note to be displayed, printed, or exported with the report. Notes added here will appear
in the bottom left corner of the report.
9. You can view a visual chart containing the data from many reports. You’ll learn more about
charts later in this training.
10. Select Edit titles to replace the default section titles used in all Profit and Loss and Balance Sheet
reports for this company.
11. Select the Envelope icon to email your report to any recipient. Emails can be customized and are
sent from quickbooks@notification.intuit.com
12. Select the Printer icon to print a report. The options you see in the print dialog box will vary
depending your printer, but you will always be able to choose the orientation and which pages
will be included in the printed document.
13. Select the Export icon to export the report to Excel, PDF, or Google Sheets. Note: Google Sheets
export is only available in QuickBooks Online Advanced subscriptions.
14. The options available from the Grid Gear icon depends on the report. For a Balance Sheet
report, it will compact the report, but for detail reports (for instance), it allows the displayed
columns in the report to be defined. There’s even a quick link to reorder the columns.
15. Selecting the Customize button opens up a suite of options divided into sections.
Section names and the options available within them may depend on the type of report, so
you’ll see different options for summary and detail reports, for example.
ProAdvisor tip
The filters applied to the report are displayed at the top. To remove a filter, select the X next to
the filter name.
The General section, shown here, offers some of the options also available from the report screen header.
However, it also allows additional editing options to modify the number format or define how negative
numbers are to be displayed.
Customization options: Rows and columns
The rows/columns customization options are different for summary and detail reports.
Let’s explore the different customization options that are available for each.
The Customize report tray displays an additional Aging section for aging reports. Your client can
choose from the following two aging method options:
Customization options: Aging
Current aging method: If the invoice was open at the end of last month but has since been paid,
it won’t appear in this report because it isn’t currently due. But if the invoice was open at the end
of last month and it is still open, it would appear in this report.
Report Date aging method: If the invoice was due on that date, regardless of whether or not it
has been paid in the meantime, it would appear in this report.
This section also allows you to set the number of days in the aging period and the number of
aging periods to show on the report.
Filters in the Customize tray allow you to select what you want to display.
Customization
What options:
can I specify in filter Filter
dropdowns?
There are some generic options at the top of most report lists. You can choose:
All: Includes all transactions in the report that fall within the other customize options
Not specified: This returns only transactions or names in which that field was left blank.
Examples of this would be if your client was filtering by class and just wanted to see transactions
that had no class assigned, or if they wanted a list of customers that hadn’t been assigned terms
Specified: This returns only transactions or names that have data in the specified field. It
excludes transactions where the field is blank
If you save a customized filtered report where you have used multiple selections, you’ll need to
update the saved custom report if you add any new names to QuickBooks Online.
What are the common filters for detail reports?
Detail reports offer different filter options. The list is larger, depending on the type of report, and
includes all the options for summary reports, along with status tags.
For instance, a client may have a custom field named Crew to track which team of workers
performed a job, and be able to filter a Sales by Customer Detail report to see transactions where
a specific crew was used. When using regular custom fields (not those available in QuickBooks
Online Advanced), the custom fields must include the string of characters contained in the
custom field.
ProAdvisor tip
The following filters do not have dropdown fields from which to select:
Amount
Ship Via (if shipping is enabled in Account and settings)
Memo
Custom fields (unless a dropdown custom field was created in QuickBooks Online Advanced)
Num (number)
In these custom fields, the text entered in the filter must be contained in the field entry. For
example, if the crew number is 1234, entering 123 brings up any transactions with crew numbers
that contain 123, including 1234 or 5123.
ProAdvisor tip
Note that you can’t add extra footer text to a report in QuickBooks Online in the customize
window. If you need to add footer text, add a note to the report (it will be left-justified at the
bottom), export the report to Excel, or use the Management reports option.
Knowledge check
Which of the following report customization options are available in QuickBooks
Online? Select all that apply.
Aging
Header/Footer
Rows/Columns
Filter
General
Check Answer
That's right.
All of these customization options are available.
QuickBooks Online’s management reports are editable templates that allow you to create a
packaged set of reports from the client's file in a PDF format.
This means the information already in QuickBooks Online can be packaged into a professionally
designed management report.
Your current experience may differ from what you see here.
Both ProAdvisors and clients can access the management reports features in a QuickBooks
Management
Online company, butreports
the access fundamentals
differs. Clients see three predefined management reports
templates in their company:
Company overview
Sales performance
Expenses performance
As a ProAdvisor accessing their file via QuickBooks Online Accountant, you will see two
templates:
To start creating a management report, select the Management reports tab in the Reports
Creating management reports
Center.
Creating a template
Because you can’t create a management report from scratch, you need to start with an existing
template and customize it.
1. It’s best practice to copy an existing template rather than editing it. To do that, select the
down arrow next to the template to use and select Copy
2. Once the template has been duplicated, select Edit from the options
Note that QuickBooks Online logs who created the new report and when it was modified. Note
that you can also define the report period.
1. Start with changing the template name at the top of the screen
2. Use the dropdowns to change the cover style and logo
3. QuickBooks Online automatically fills in some fields using data from Account and Settings or
where they’ve been defined in the report setup, but you can edit these
Notice that the Prepared by name by default is the name of the firm in the QuickBooks Online
Accountant settings. If your client is creating management reports, the Prepared by field is blank.
Customizing the preliminary pages
The Preliminary pages are commonly used for accountant reports when issuing prepared
financial statements.
1. You may want to change the name in the Page title field before adding notes
2. You can enter and format a letter in the Page content box or copy and paste it from another
source (like Word or Google Docs)
3. Use the options in the brackets dropdown to insert predefined company content that QuickBooks
Online populates automatically, for example: {Company name}
The actual text QuickBooks Online adds in here can be changed and updated globally wherever a
preset option has been used.
Customizing the reports included in the management report
In the Reports page, you can define which reports to include in the management report template.
To add a report in addition to the ones QuickBooks Online included in the template,
select the Add new report link
To add a customized report, you need to customize and save the custom report in the
Reports Center first. Note that you can't customize a report from the Management Report
screen.
To change the title of the reports that appear in your Table of contents or the report
period, use the Pencil icon on the right to enable editing. You can also choose to compare
to the previous year or period
To remove a report from the template, select the Trash icon on the report edit section
Note that there's no option to rearrange the order of the reports. The only way to do that is
by adding and deleting reports until you reach the desired order.
You can choose whether or not to include end notes by checking the Include this page option
If you do, you can give the page a title to appear in the Table of contents, add additional content.
Select Include breakdown of sub-accounts to include detail of subaccount totals in the End
notes section
Additional customization options
At the bottom of the page, there are more Advanced options to customize fields, the header or
the footer.
Fields are placeholders that are replaced with actual data when the report is created - same as in
the Preliminary pages. Fields are an easy way to add the same text to multiple places
The Header/Footer functionality allows you to enter text that will appear on every page of the
management report (except the cover page and the table of contents). You can also add fields here
To preview the management report, select Print or Preview at the bottom of the page.
Saving or exporting the management report
Once you’re happy with the editing of the report, select Save or Save and close.
Back in the Management reports tab of the Reports Center, you have the option to Export as
PDF or Export as DOCX from the Action column.
Knowledge check
Which of the following statements are correct regarding management reports in
QuickBooks Online? Select all that apply.
You can export management reports in Word, PDF, and Excel format
You can customize reports via the Management reports screens
You can add as many reports as needed to the package
You can’t reorder the reports included in the package
Check Answer
That’s right.
You can add as many reports as you need to a Management reports package, but you can’t
reorder the reports except by deleting and re-adding them.
However, you can only select from two templates by default when accessing from QuickBooks
Online Accountant. To customize reports, leave the Management reports editing functionality
and then add the reports to the Management Reports package afterward.
Closing the accounting cycle
Month-end review
No need to dread the end of the month
Clients rely on their books being accurate to be able to make business decisions. That’s why
checking transactions and reconciling the accounts are an essential part of your month-end
workflow. However, closing all your clients’ books on a monthly basis can be time-consuming.
The Month-end review feature in QuickBooks Online automatically finds errors, incomplete
expenses, and duplicate entries. This makes your typical month-end workflow faster and smarter.
You can easily track your progress for individual clients, or even see it across the whole practice
via the Client List.
Your current experience may differ from what you see here.
Review the graphic for a recap of what the key tasks are at each stage of the workflow.
Benefits of the month-end review
The Month-end review feature is designed to support your typical month-end workflow by
pulling all your tasks together into a single place so that nothing gets missed.
For those of you managing a team of bookkeepers, you have the added challenge of creating an
easy-to-replicate process that maintains a consistent quality of work without feeling like you’re
constantly chasing your bookkeepers!
Resources
Which of the options below does the Month-end review process help with? Select all
that apply.
That's right.
Fixing transactions and reconciling accounts are key processes in the month-end review.
Transaction review is all about setting your clients’ books up for success. To get started,
QuickBooks Online automatically identifies unaccepted bank transactions for you to review. By
selecting the Review now link, you’ll be taken directly to those transactions and you can accept
or remove them. Once complete, you can then begin resolving open issues.
1. Categorize
Open Issues: QuickBooks Online automatically reveals common bookkeeping issues such as uncategoriz
The application anticipates your needs as you work through the list. If you select an
uncategorized transaction, you’re prompted to reclassify it.
2. Transactions without payees
For transactions identified as being without payees, you’re offered three options: to add
the payee, to void the transaction, or to delete it.
3. Undeposited funds
Any undeposited funds the month-end review identifies are listed, and the action offered is to
record the deposit.
4. Unapplied payments
Unapplied payments can be voided or deleted.
5. Additional items
In the Additional Items section, you’ll find a list of recommended tasks to help you look
for other potential issues. The bookkeeper undertaking the month-end review can also use
the Add option to add their own items to the list.
ProAdvisor tip
If you follow any of the links from the Account reconciliation tab, use the browser’s back button
to return to the Month-end review.
Stage 3: Final review
The final step in the month-end review is to investigate unusual and unexpected balances and
review the financial statements for accuracy.
1. Placing a checkmark here displays the Action bar above, where you can select Void or
Delete.
2. Select the link in the Type column to open and view the transaction.
3. Select the three dots in the Action column next to each transaction to edit, void, or delete
them.
4. View transactions that are over 90 days old to determine whether you should take any
action.
5. Follow the links to open each of the reports and investigate unusual and unexpected
balances.
6. Transactions are marked as To do. Once you’ve cleared the open issues for each group of
transactions, mark the status as Done. If you have a problem with resolving the issue, you
can mark it as Waiting.
7. Here, you can add your own additional items to the list. You can even include links to
different screens in QuickBooks Online or to external sources when adding items here.
Tracking progress
You can mark the status of the tasks in each of the three tabs of the Month-end review screen.
When you update the progress, it will also update the status in your QuickBooks Online
Accountant Client List.
To see a bird’s-eye view of the month-end review status for all your clients, open
the Client Listin QuickBooks Online Accountant and select theBookkeeping tab. Here,
you can see the overall status of the three steps of the month-end review.
2. Identifying blockers
To take a closer look at which specific tasks have been completed at each stage, select
one of the Month-end review icons.
Knowledge check
Which of these are stages of the month-end review? Select all that apply.
Transaction review
Account reconciliation
Closing the books
Final review
Preparing for taxes
Running payroll
Check Answer
That’s right.
The month-end review is designed to support your month-end workflow by reviewing
transactions, highlighting any unreconciled accounts, and a final review prompting you to review
the financial statements for accuracy.
Easy fixing
The Reclassify transactions tool
Clients inevitably realize at year-end that they have miscategorized some transactions, resulting
in inaccurate financial data in reports and statements. Identifying and modifying these
transactions individually would take a long time.
The Reclassify transactions tool in QuickBooks Online Accountant allows you to review
transaction activity for a given period and recategorize transactions from one account to the other
in batch. QuickBooks Online Plus and Advanced subscribers who have the Class and/or Location
tracking turned on can also reclassify transactions between classes and locations.
Your current experience may differ from what you see here.
Let’s see how to use the Reclassify transactions tool to fix a miscategorized transaction.
Usingthethe
Watch Reclassify
video transactions
to see how it’s tool steps are below for you to follow.
done. The individual
1. From the client dashboard, select Accountant Tools, then Reclassify transactions
2. In the Account types field, select either Balance sheet or Profit and loss
3. Check the Basis of the transaction, either Accrual or Cash
4. In the From and To fields, set the range of the transactions
If needed, you can set further parameters, such as selecting the account or transaction
type, or even searching for a specific class or location, if they’re in use.
5. Select Find transactions
The left pane shows all of the available accounts, along with any subaccounts for the
selected criteria. Selecting an account would show all the transactions for that account in
the right pane.
6. From the left pane, select the account where the miscategorized transaction is
7. Check the box next to the miscategorized item in the right pane
8. Next, select Reclassify
9. In the Change account to dropdown, select the correct account
10. Select Apply
You can also use this function to reclassify in batch and save time.
Resources
You can change the class and/or location for invoices, sales
receipts, checks, or bills with items (products or services) on them. However, you can’t
change the accounts
You can’t change the payment account (bank or credit card) for expenses
You can’t change the account or class for inventory adjustments because they’re
connected to your inventory shrinkage and asset accounts
You can change the expense account for billable expenses, but not the income
account for the related income transactions
You can only manage your payroll transactions in the Payroll menu.
Knowledge check
When can you use the Reclassify transactions tool? Select all that apply.
Check Answer
That’s right.
The Reclassify transactions tool allows you to find transactions that have been assigned to
incorrect accounts or classes and reclassify them in batches. However, not all transactions can be
reclassified—in payroll transactions, for example, Payroll settings control this.
Every now and then, clients might have customers that don’t settle their invoices. When these
invoices become uncollectible, you need to write them off.
The Write off invoices tool in QuickBooks Online Accountant allows you to zero out the balance
of the invoice and write off uncollectable invoices in a batch for your clients. You can also use it
to balance out unpaid small dollar amounts.
Your current experience may differ from what you see here.
The Write off invoices tool zeroes out the invoice's balance by adding the invoice's open amount
toHow the Write
the discount field onoff invoices
the original toolItworks
invoice. writes off balances to the original invoice date and
removes accounts receivable balances. It does not adjust sales tax.
The Write off invoices tool should not be used for clients who report on an accrual basis or use
the sales tax feature. In this case, it is recommended to create a Credit memo for the customer in
the current period.
1. In QuickBooks Online Accountant, select Accountant Tools and then Write off
invoices
2. Use the Invoice Age dropdown to narrow down invoices for a certain period and set
the To date date
3. Use the Balance less than field to see invoices with an amount lower than specified
4. Select Find invoices
5. Check the boxes next to the invoices to write off, then select Write off
6. Select the account where you want the write-off to be posted. In this case, it’s the Bad
debts expense account
7. Finally, select Apply
And that’s it! The invoices are written off and no longer appear in the list.
Key tasks for year end
A busy time
Year end is always an important and busy time for clients and their accounting professionals.
Clients often need support with the many tasks involved in the year-end workflow, especially in
their first year of business.
You can guide clients through the processes involved in year end and help them understand
which features of QuickBooks Online can support them.
In this lesson, we’ll look at the key activities for clients and accountants at year end, and at how
QuickBooks Online can keep everything neat and tidy throughout the year in preparation for this
important time.
Your current experience may differ from what you see here.
Ensure that the reconciliation wasn’t automatically adjusted and that there are no changes
to reconciliations that affect the ending balance. QuickBooks Online has a number of
forensic tools, such as the Reconciliation Discrepancy report, that can help you
troubleshoot accounts that don’t add up.
The Reconciliation reports in QuickBooks Online are great tools to help you determine if
all balance sheet accounts are reconciled.
Other balance sheet accounts (such as fixed assets) and other receivables like employee
loans or liabilities (such as bank loans or unearned income) need to have supporting
detail reports showing what makes up the ending account balance. Payroll liability
accounts should match payroll taxes calculated for the period and paid in the next period.
Key actions
Check all accounts are reconciled
Verify amounts from reconciliation match the balance sheet
Key reports
Balance Sheet
Reconciliation Summary
Reconciliation History by Account
Reconciliation Discrepancy
Payroll Tax Liability
Ensure there are no entries in Uncategorized Income and Uncategorized Expenses in the
Profit and Loss account in QuickBooks Online.
Make sure that payroll wage and tax expenses match payroll reports, and file payroll
forms (such as annual IRS Form 940 and quarterly IRS Forms 941) for the year.
Key actions
Check for uncategorized/miscategorized transactions
Check tax filing for payroll
Make sure all contractors have been tracked for Form 1099 payments
Key reports
Balance Sheet
Payroll Summary by Employee
Profit and Loss
1099 Contractor Balance Detail
Likewise, confirm that all bills for purchases and services received or paid for during the
year have been recorded. Review the Unpaid Bills report in QuickBooks Online to make
sure that bill payments are applied to bills, paid bills have bill payments recorded instead
of checks duplicating expense, and that the report total matches the accounts payable
balance on the accrual-basis balance sheet.
Key actions
Check all purchases bills have been recorded
Check all payments received bills have been recorded
Key reports
Accounts payable including A/P Aging
Accounts receivable including A/R Aging
Open Invoices
Unpaid Bills
Key actions
Review major expenses
Record depreciation
Review equity accounts
Key reports
Balance Sheet
Profit and Loss
Key actions
Run the Taxable Sales report
Key reports
Taxable Sales
Year-end accounting checklist: Part 2
6. Review year-end financial reports with your client
You need to help clients carefully review their year-end financial reports. This is what
will be used to file their taxes and make projections for the new year. QuickBooks Online
management reports mean you and your clients can produce professional reports for a
wide range of needs.
Key actions
Produce any management reports
Key reports
Balance Sheet
Profit and Loss
If your client uses the QuickBooks Mileage Tracker throughout the year, it’s easy to
prepare the log for auto expense deduction.
Key actions:
Check calculated mileage
Look for vehicle changes (bought or sold)
Ensure no trips are left unreviewed
View Manage Vehicles
View All trips
You can find out more about year-end activities and also routine weekly, monthly, and quarterly
accounting activities using the link below. There’s also a heads-up about important tax
deadlines!
Small Business Accounting Checklist
If you are a tax preparer, try the built-in tool, Prep for taxes. To learn more about Prep for
taxes and how to prepare a tax return with this tool, take the QuickBooks Online Advanced
Certification training.
You can access a range of reports, such as the Balance Sheet and Profit and Loss, from
the Reports Center.
Select Reports from the left-hand navigation and scroll down to the For My
Accountant section.
In both the Balance Sheet and the Profit and Loss report, you can set the dates to cover a full
financial year for year-end purposes.
Accountant Tools
You can find a variety of tools in Accountant Tools to support your year-end activities.
These include:
Voided/deleted transactions
Close books
Reclassify transactions
Write off invoices
Prep for taxes
Knowledge check
Which of the following year-end tools would you find in Accountant Tools in
QuickBooks Online Accountant? Select all that apply.
Check Answer
That’s right.
Accountant Tools contains links to tools and reports, including tools to prep for taxes, write off
invoices, and reclassify transactions.
Best practice when working with mileage
The IRS requires specific information to substantiate deductible automobile expenses, including
vehicle type, date placed in service, and total mileage (business, commuting, and other personal
mileage).
To automatically record this information, your clients should use QuickBooks Online’s Mileage
Tracker throughout the year. It makes it much easier to prepare the auto expense deduction log.
When it’s time to review your clients’ mileage record, you should do the following:
Resources
Downloading Trips
1. Go to Mileage
2. Choose Download Trips
QuickBooks Online will download a CSV file that you can filter and sort to suit your needs, and save as a
backup document to substantiate the mileage deduction.
ProAdvisor tip
To record mileage expenses, you can either record a bill to reimburse your client or create a
journal entry. You need to set up a mileage expense account to categorize these entries.
Closing the books
Keep your work protected
When you or your client finish reviewing a financial period, you’ll want to lock it to ensure no
changes are made.
Otherwise, problems can arise if transactions are added, deleted, or changed after the books are
closed.
QuickBooks Online allows you to close your clients’ books at any frequency you or they prefer.
To help prevent changes once you close the books, you can set a closing date or even a
password.
Any changes made to the company file after you close the books will be logged. You can run an
Exceptions to Closing Date report to see the changes.
Your current experience may differ from what you see here.
1. In QuickBooks Online Accountant, select Accountant Tools and then Close books
Because this takes you to the Advanced tab in Account and Settings, clients would access
it through the Gear icon, Account and Settings, and then the Advanced tab.
2. Select anywhere in the Accounting section to enable editing
3. Use the Close the books slider to start the process
4. Set a Closing date. It can be the current date, although typically it’s at a period end
5. To protect the books with a password, select the Allow changes after viewing a
warning and entering password option from the dropdown
This prevents unauthorized users from making changes. Note that users with admin
access or access to the company file via QuickBooks Online Accountant can change the
closing date and password.
That’s right.
These all should be completed before closing the books.
The report allows you to track any changes made regardless of whether the books are password
protected.
Once you set the closing date, you can access the report through the Reports Center in
the For my accountant section. If no closing date is set, the Exceptions to Closing Date report
won’t be available.
You’ll only see details in the report when there’s a transaction edited that dates on or before your
closing date. If the report shows nothing, no transactions were changed by any users in the
company.
Running the Exceptions to Closing Date report
Let’s see how you can change a transaction after closing the books and how the Closing Date
Exception report can identify this.
Watch the video to see how it’s done. The individual steps are below for you to follow.
Because this transaction date is prior to the company’s closing date, a warning pops up.
2. Enter the password set to protect the account, then select Yes
3. Now go to the Reports Center
4. In the For my accountant section, select the Exceptions to Closing Date report
The report shows the Audit History window and the details of the edit we just made.
Knowledge check
What would be the reason for not seeing the Exceptions to Closing Date report in the
Reports Center?
Check Answer
That’s right.
You need a closing date set to see the Exceptions to Closing Date report in the Reports Center