QuickBooks Online Made Easy For Small Companies

would you like to get your bookkeeping completely  out of the way so that you can concentrate on   running your business would you like to spend the  absolute least amount of time doing bookkeeping   so that you can turn your full attention to  running your business and making it flourish   well then you need to take this course  QuickBooks Online crash course it's the   fastest and easiest way to learn QuickBooks  Online you will quickly and easily learn how   to record all the transactions from your bank  and credit card statements into QuickBooks so   that QuickBooks can turn around and quickly and  easily give you all the financial reports you need   you will quickly and easily be able to generate  a profit and loss report that shows how well your   company did during a period of time you'll also  be able to generate a balance sheet that compares   what your company has to what your company  owes so that you can easily see the financial   position of your company my name is Mark smolen  I'm the founder and CEO of worldwide QuickBooks I   personally guarantee you the clearest possible  explanation for only the topics that a small   business owner needs to use QuickBooks to run  their business and keep their financial records   this tutorial Will Not Waste one second of your  time with a topic that you don't need the way   all the other introduction to QuickBooks Online  tutorials will do and if that's not enough you   have the benefit of a live teacher because I  answer all my students questions immediately   if you simply leave any question you have in  the comments section below that's right just by   watching a little of this YouTube tutorial every  day you will have everything your small business   needs to manage your books and Records using  QuickBooks online and it's all free free free foreign [Music] how can this be so fast and easy how can I  promise you that you will learn so much in   such a short period of time well that's because  most small companies only need one area of data   they only need one set of records and it's called  the general ledger the computer calls it the chart   of accounts and in the days before the computer  it was simply the main book the main place that   you would record your transactions and each  page in the book was simply a different set   of transactions that you would record you see if  you were a large corporation you would need an   in-house bookkeeper because there would be other  areas of data to manage in addition to the general   ledger large companies need to keep track of which  customers owe them and what the continuous running   balances of each customer large companies even owe  their vendors who give them service for several   months at a time and have to keep records of which  vendor is owed for what bill and why in fact some   companies even sell merchandise and they need  a separate area of Records just to keep track   of their profit and their quantity on hand but if  you're a typical small business owner you don't   need any of that all you have to keep records of  are the transactions in the general ledger that's   why this crash course is going to make things so  easy and smooth for 99 of small business owners   that only really need to do the minimum amount of  bookkeeping I suggest that if you need one of the   other areas of data you finish this course first  so that it gives you a nice foundation and a nice   overview of QuickBooks Online once you finish this  course that should make it easier to self-teach   any of the other areas of QuickBooks that I just  mentioned and only if you need it in the future   you see doing bookkeeping with only the general  ledger in a small business is a very smooth   process all you have to do is pull out your bank  and credit card statements that pertain to the   company and record each transaction one by one  into the data input windows that QuickBooks Online   provides for you to record your bank and credit  card transactions once you record them into the   proper windows and QuickBooks QuickBooks  will record them into the general ledger   and the QuickBooks general ledger which QuickBooks  calls the chart of accounts is behind the scenes   and it's processing the information in the same  way that they used to process it in the days   before the computer the general ledger gives  you the ability to organize and summarize your   financial transactions so that they can place  them on a main report called the trial balance   now the trial balance is simply a list of each  account in the chart of accounts with their name   and the current ending balance but it's that  report you need to pull off the numbers and put   onto the financial statements that you're going to  give your accountant so your accountant can do all   the taxes that your small company needs and some  of the numbers in the trial balance get placed   on the balance sheet and some of the numbers get  placed on the profit and loss but all of them get   placed on either one so that you can see how well  you did and you can check your financial position   at the end of the period again it's really a  very smooth process all you have to do first   is sign up and set up then the fun starts  chapter 3 signing up with QuickBooks Online   would you like to study QuickBooks online  without having to pay for the software   well you should know that there is a way that  you could sign up for QuickBooks online and it   will be completely free you see there is a  link in the description field of this video   so if you're looking at this video look right  below the video as it runs and you can click in   the description field which is the text right  below the video and if you click the show more   button right at the end of the text the rest  of the description field will open up and it   will reveal the link where you can sign up for  free for QuickBooks Online 30-day free trial   once you click on the link all you have to do is  choose a password and put in your email address   and you will be given prompts to sign up now  they're very easy and all you have to do is follow   the simple prompts and you will be able to sign up  for the plus version of QuickBooks online for free   but you should know that the reason the sign up  is a separate video and that I did not include it   in this video for a reason and that's because  the steps of the sign up and the prompts that   they give you will change slightly over time but  they never change so much that you cannot know   what to do when they ask for some information as  part of the sign up just try to answer the setup   questions in the way that speeds things along the  best so just remember some simple things when you   go to sign up so that even if there's something  different on the screen that's a little different   in the video you will still know what to click  on when you sign up so just remember you're just   getting started and that will speed things along  when you answer the questions in QuickBooks Online   remember to tell QuickBooks online that you're  a sole proprietor and that you don't have any   partners and that your company provides a service  so there's no need to count and manage quantities   of inventory also remember you're the owner okay  so that you have all authority over the company   and make sure you make the right choices as you  click for the answers now for everything else you   can pretty much just find the skip Now button  and every time you're actually given an option   to skip now always click the skip Now button to  pass the section that you're in so that you can   speed things along and finish signing up you see  if you don't click the skip for now button you   might waste time activating irrelevant features  that will clutter things up and make the sign   up take longer than it needs to remember we're  speeding things along to do the absolute minimum   bookkeeping to be able to satisfy the bookkeeping  requirements for taxes or anything else you need   so once you finish answering the questions you  will get the screen that looks similar to this and   you'll be ready to get started just remember the  link to sign up is in the video description below   and you should utilize the video description below  when you're looking at the video and you click   in the description field at the end of the text  where it says show more you'll get more than just   the link to the sign up video you'll get the full  table of contents where you can click on the time   index of any particular chapter and the video will  jump right to that chapter if you want to watch   things in a different order if it's the second  or third time that you're watching the video   that will make learning easy and fun so I hope  you have an easy time signing up and I hope   you'll come right back to this video where we can  jump right into the learning of QuickBooks Online chapter four navigating QuickBooks Online so what  exactly are you looking at when you first join up   with QuickBooks Online well some people will be  lucky enough to have QuickBooks Online set them up   in something called business view but other people  will be randomly selected when they sign up and be   given accountant view now those are the only two  possible views that you could see when you first   sign up with the QuickBooks Online plus version  you see if you're looking at accountant view the   left panel will look like this but if you were  unlucky enough to be assigned business view when   you signed up it will look like the panel on the  left now with accountant view all the menu choices   are written out clearly but if you were unlucky  enough to get business view you have to click to   open a sub menu in order to get the rest of the  choices and that's why in this course we will be   looking at the interface in accountants View and  don't worry I'm going to show you how to switch   between them in a moment and it's very easy but  no matter what you're looking at in QuickBooks   Online there will be always three things that will  be the same first you will always have a cog wheel   in the top right corner of your interface and the  cogwheel will always open a set of menu choices   and these menu choices are all about setting  up and maintaining the usage of your QuickBooks   online account so that's the category of choices  when you click the Cog wheel in the top right   however if you click the plus sign in the top  left the menu that opens up there is a set of   sub menus that allow you to record and enter  the day-to-day transactions that you have when   you're running your business pretty simple so far  however the third place that you need to know to   click on is the left panel and the left panel  has mostly repeats of the same windows that you   can open from either the Cog wheel on the right  or the plus sign on the left but there is one   thing that you have to click in the left panel for  and that's to find the QuickBooks Online reports   in fact the left panel is the only place where you  can click to get the QuickBooks Online reports and   the reports are the most important Windows because  they are the windows that not only show you the   results but they actually allow you to easily  find and fix any of the transactions that you   recorded and that's the way we're going to do it  in this course you see once you get into business   view all the shortcuts in the uh dashboard that  you're looking at that are next to the control   panel they're all the same shortcuts to the same  windows that you can open up from either the   cogwheel or the plus sign in the left but these  shortcuts that are here on the dashboard change   all the time whereas the menu choices from the  Cog wheel and the plus sign tend to stay the same   so if you have the plus version you can just  click on the Cog wheel here and you will see   this menu open up and when you look at the  nature of the choices you will see that this   is about setup and maintenance however if you  click in the top left you can see clearly that   the menu choices presented here are all about the  different types of transactions that different   companies would make and you'll notice the  panel on the left reflects the accountants   view where everything is written out clearly  that's why I recommend you keep your settings   in the accountants view so that you can easily  get to the reports menu which is literally the   most important menu choice in all of QuickBooks  but in order to change views from business view   to account view you need to know a little bit  about the QuickBooks online account settings   you see the settings in QuickBooks Online are the  defaults the options the preferences basically the   settings are the automatic behavior of QuickBooks  Online unless you specifically State differently   and we will adjust the very first setting the most  important setting that you need to know at the   beginning we're going to change from business view  to accountants view just by clicking to open up   the menu from the Cog wheel and then look in the  bottom right where it says switch to accountants   view or business View and then you will see the  interface change here watch if I click on the Cog   wheel it says switch to business view so I give it  a click and I wait a moment and you can see that   we have this very abbreviated and confusing  main menu with icons and sub menus and so on   but if you click in the Cog wheel and you go back  to switch to accountant View then you can see a   nice clear left panel where the sub menu choices  are much easier and it reflects much more like the   old interface and QuickBooks online but you still  need to learn more about the accountant setting   because all the other settings that you would  need to change in QuickBooks Online are in the   account settings window and the account settings  window you open from the Cog wheel and one of the   menu choices is account and settings now in  the case of a simple small company the only   setting that you actually need to change is the  name and address of the company and whatever   you put there will show on the reports and the  documents that you print from QuickBooks Online   and you can always go back and change the  name and address right there in the same area   so here's the example company address it's  the holding Holden wedding video company 1700   Prospect Avenue East Meadow New York 11554 just as  an example okay so watch you click the Cog wheel   and then you click account settings and if you had  a complicated company you would have to go through   each of these choices and set the settings for the  uh difficult things that uh complex companies need   but in our case we have a simple company so  just click the company section of settings and   in order to change the name and address you have  to click the pencil icon to open up that section then simply click in the proper field  and type in the name that you need   now of course in real life you would put the EIN  number and the social security number and so on   and then you would simply click save and that's  what would print the contact info and Company   address specifically the company address is  what will change and what will actually print   on most of the reports and documents so let's  click the company address and change it to   in this example 1700 Prospect Avenue East Meadow  New York 11554 if it doesn't come up automatically   it should give you the ability to type it in  then when you click save you can rest assure   that all of your financial reports and all of  your transaction documents will print with the   name you put up here and print with the address  you put in this section of account settings   and if you get more advanced with QuickBooks you  can see that there are other areas of settings   that you will use in order to uh run your business  if it's one of the more complicated business not   the kind we're doing here when you finish in the  settings window make sure it's saved by going to   the bottom right and click done and now you know  how to change the name and address of the company   or now you know where to go if there's any other  setting you need to change chapter five input list   of customers and vendors the most important  set of names that you will be dealing with   obviously will be your list of customers and it  will benefit you to have their name address and   contact information in QuickBooks Online for  you to easily access in the customer section   but in order to service these customers  you will have to pay other professionals   to provide service to you so you're able to  do for the customer what you need it would   therefore also be helpful for you to put on the  names list the list of vendors whom you deal with   now it's very simple to input the customers on  the customer list and two customers are plenty   for our example if this is in fact a crash course  so how do we do it well all of the customer data   is under the left panel Choice called sales and  when you click on the sales in the left panel   a menu opens up where you can see all of  the different choices that relate to sales   all you have to do is click on the  customer Tab and you'll get to the   section of customer data so let's go ahead  and put in the customers that we have here   we go over to QuickBooks online and we click sales  and then go down to customers now if it's the very   first time that you're coming to this window you  make a choice of importing or adding and in this   crash course we're adding because importing is  another course entirely so we click add customer   and notice we get the new customer window where  we can input all the fields of data that we need   and now we see the fields of data that we need  to fill out so we can always call it back to   contact the customer or put the customer on a  transaction so all we have to do is copy it over   and you can pause the video in this position if  you wish to copy it yourself at your own pace   and you may notice that after you type in the  first and last name it should automatically   display in the customer display name and if it's  an individual you should also copy that to the   company name field but if the company name is  different of course you would put the actual   company name now of course here we have the phone  number and you can pause the video and type it in   at your own pace and if you had any other of these  fields of data of course you would type them in   but one of the most interesting fields of data  is something that's extremely helpful to you it's   the notes feature and each customer will have a  separate area of data where you can write notes   all about that specific customer you see the notes  feature allows you to add any other data that you   might need That's Unique for that specific  customer for example if Alan were allergic   to peanuts you'd want to remember that so that  you don't eat any Planters while you're sitting   there negotiating with him so what you would  do is you would type that into the notes field in fact you don't even have to spell  things correctly because it has its own   spell check right click and it will fix  it then all you have to do is click save   and you'll notice you have his information saved  and if you wish to see what it looks like on the   list of customers you can just click customers up  here and you can see now we only have one customer   on the list click new customer and now we'll put  in Betty boops information so we'll come back here and again you can pause the video to type it in  at your own pace zero one two three four five and whatever else the data happens to be 9678 and now if you don't have any notes to record  for Betty for anything special just click save   and you see Betty has been recorded and when  we click the main customer list we can see   that this is what your customer list looks like  and you can always click on the name to call up   their account and then click edit to go back to  the fields to change and save anything you need putting in vendors is the exact same thing  as putting in customers all of your vendor   data is under the area of expenses in the left  panel and when you click on it you get a sub   menu just like you did with the sale Section  and if you click on the vendor tab you'll get   the vendor data and managing the vendor data  is one hundred percent the same as managing   the customer data here watch we click expenses  and vendors now because this is a crash course   it should be sufficient just to put their name  on the vendor list you could always go back and   add the address and contact information for any  vendor that you'd like to have the information   for including the notes but just to speed things  along it might be convenient even in your own   situation just to put the name on the vendor  list so we just put the first one here Staples   and of course let it display as the  company name then you can click save   now you see Staples is on the list click new  vendor and now we'll put the next one Office Max and of course we save and then Office Max  is on the list of vendors with staples and   you could always click for the name and  reopen it and then once it's in front   of you click edit so that you can add  back anything that you choose later on   let's just put in the rest let's go ahead and  click uh well excuse me actually we'll click   back to the list of vendors by clicking here and  now we'll click new vendor and see who's next UPS that's it save new vendor who's next FedEx that's it save go to the next one Con  Edison Con Edison Consolidated Edison is the electric company out here in New York City  and the last one will be Rex repair shop and we click save now the list of vendors and  list of customers are finished and you have   all the names on the list to be able to record  transactions and get the contact information for   anyone you do business with chapter six setting up  reports you see we have to set aside the reports   that we use in this crash course so that we  can quickly access only the reports we need   without having to sift through hundreds of other  reports that QuickBooks Online makes available   all we have to do is find them open them and save  them and then once we save them they will be set   aside in a place that's easy to find so first  we'll set up the name reports the reports that   list every transaction for each customer and every  transaction for each vendor so how would we do   that we would click reports and notice the reports  tab in the left panel has three sections standard   custom and management the standard section  is the place where QuickBooks Online makes   available all 150 or 200 reports that  can be applied to any type of business   but the custom section is the place that we save  it to this way we have only the few reports that   we need and they look exactly the way we need  them to look and we won't have to sift through   hundreds of other reports every time we need  to open one of our documents so again only the   left panel has the reports menu and let's click  standard and find the transaction list by customer   go down to where it says sales and customers  and towards the bottom is a report that's called   transaction list by customer now we click on it  and we notice that by default it's only showing   the transactions from whatever the beginning of  the current month is until today but we don't want   that we want this report to show the results of  all transactions regardless of date so we click   the pull down and we click all dates and then we  click run report and you'll notice when we click   run report instead of showing that this is from  the beginning of the month until today it'll show   All Dates so remember you have to click run report  before you can save it and you should know that   once you open and save the report they will be set  aside for your convenience so let's take a look so   if now that we ran the report and made the change  we click save customization and then click save   and we can check it's set aside in the special  place that makes it easy for us to find reports   if we click reports and then we click custom  report we can see our good friend transaction   list by customer is right here and we can double  click and open it up and we notice that QuickBooks   remembered that our custom report remembers that  we like to see the results of all transactions   regardless of date let's do that for the vendors  as well reports we pull it out from the standard   section scroll all the way down to the section  in the reports that say expenses and vendors   and towards the bottom will be transaction list  by vendor and we double click and again notice   that the pull down only applies to the current  date but in our course we need it to apply to   all transactions regardless of date and the change  will not take effect unless we click run report   now the change took effect so we click save again  and now that we click save we can click reports   custom report and we have both reports here  waiting for us set aside so we can find   it quickly and easily and the reports  remember the way we need them to look   so what did we learn we learned that any change  we make to the report counts as customization or   customizing and we also learned you must click  run report to be able to see the change then   of course once you click save customization  QuickBooks will not only set it aside but it   will remember the change that you made so  now let's set up our financial statements   the trial balance that we'll use every day in this  course and the other two financial statements that   come from the trial balance if we ever want to  present our results well it's very simple reports   we go to the standard section scroll down to  this all the way down to the place that says   for my accountant and the most important report  that we will use every day to check our results   is the trial balance we double click and again  we don't want the trial balance this month to   date we have to click the pull down and click All  Dates don't forget to click run report and then   save customization in fact when you customize  you can actually slightly change the name my trial balance you see now when you click save and you then click  reports and custom report instead of saying trial   balance it will say my trial balance this way when  you double click you'll know that my trial balance   is the one that I change the date for or made any  other customization that you'll learn about later   so let's put on the other two financial statements  reports standard scroll all the way down   to where it says for my accountant and  look we have the balance sheet click on it   and then we click the pull down All Dates  run report say save customization and Save   and the last one reports in standard scroll all  the way down to the for my account profit and   loss which some people call the income statement  pull down All Dates run reports see the change   save customization and Save now anytime we need  to find any transaction we're looking for we can   click reports custom reports and we can click to  open any of these in fact we could even edit and   make more changes or even change the name but just  by using these five simple reports we will always   know our financial condition and we will always  be able to find and fix any transaction we record   chapter 7 the chart of accounts now you may well  ask what is the chart of accounts well in the days   before the computer the chart of accounts was  called the general ledger and basically it was   a book where each page in the book listed and  recorded a separate category of the financial   transactions of the company now that we have the  computer it's the same exact idea but each page   in the book is basically a little separate file or  section within the chart of accounts it's supposed   to replicate the functionality of having a book  where each page would record a different category   of transactions for example the first page might  be called video income where you would record   every deposit you made where you earned income  specifically for that one service video this   way you could compare it to the other page that  recorded your income from another service so you   would be able to tell where your money is coming  in from some of the other pages in the general   ledger and chart of accounts would also be expense  categories that you would write down for example   delivery expense might be the page that you write  down every time you pay for a company delivery and   whether you pay FedEx or UPS it wouldn't matter  if that's the service you paid for then that   would be the page that you would write down that  transaction now of course you will need an account   and the chart of accounts for each separate  expense you have so you can record and find the   total of that expense you would need a separate  account in the chart of accounts for each of the   different ways that you earn income so that you  could record them on separate pages and track them   separately and because the bank and credit card  companies are also keeping records of your account   you should also have a separate page or a separate  account in the chart of accounts for each Bank   type of account you have and each credit card you  have this way you can record those transactions on   separate uh files in separate areas so that you  could find the total and always know the running   balance now in the days before the computer it  didn't look like this basically the general ledger   was a book like you saw a moment ago where each  page in the book looked like a spreadsheet with   columns that had different widths and whenever you  had a transaction that related to that specific   category you would record each piece of data  regarding that transaction across the row so   each row represented a transaction and each column  represented a section of data for each transaction   recording it logically in this way made  it very clear what transactions we had   and although it was helpful to look at the pages  of the listed transactions the most important   results came from summarizing and totaling  the numbers once we got the total of every   account in the chart of accounts we could  then use those totals for valuable insights   we would then organize those totals onto the  financial statements that we've been speaking   about so that we can have a clear picture of  what's going on in the business for example the   results of all the income and expenses would be  listed on a report called the profit and loss and   the profit and loss would clearly show how well  your company did during a specific period of time   and the other numbers that did not go on the  profit and loss went on another report a different   report called the balance sheet and the balance  Sheet's purpose is to show you what you have   compared to what you owe and of course this is  a very abbreviated balance sheet but you can see   if you compare your bank accounts balance to your  credit card balances you'll have a good sense of   the financial position of the company and that's  the reason we use the chart of accounts and all of   this accounting ultimately results in taking the  ending balance of each account and listing it on   our good friend the trial balance once the trial  balance confirms that all the numbers are correct   then we would take some of those numbers and put  them on a balance sheet and put the rest of the   trial balance numbers on the profit and loss and  it's the two financial statements that experts   in business and financial people would look at  to judge how well your business is doing and   what position your company is in so that's how we  would use the general ledger in a common sense way   of course the financial statements would be  presented to people who we who would need to know   the financial position and how well the company  is doing in large companies it's usually the upper   management or the stockholders but no matter what  type of company you have you will ultimately have   to report the ending balances and your general  ledger to the IRS so that's how it works when   you're using a book for the general ledger and  that's exactly how it works in the computer now   inputting the chart of accounts into QuickBooks  Online is as simple as putting in a list of data   and what we're looking at here is what we want  the chart of accounts to look like when we finish   and you may notice there are three areas of data  that we have to input when we put in the list of   accounts that we need for our specific company  so let's quickly talk about them you have to   put in the name you have to tell QuickBooks  Online which account type it is and you also   in QuickBooks Online have to tell QuickBooks  what detail type the account is now what do   all three pieces of data really mean well name can  be anything you want you can type it in but in our   course we're going to put all capitals this way  we can clearly distinguish between the accounts   that we created and the accounts that QuickBooks  Online created for us and exactly what you type   in in the name field when you create the account  is what's going to show up on the reports now when   choosing account type account type determines  what transactions you can put into the account   for example if it's a bank type of account you  can record Bank deposits but if it's an expense   type of an account QuickBooks Online will not give  you the ability to record your bank deposits into   an expense type of account and the account type  also determines what position that account will   appear on your financial statements now the third  piece of data is relatively unique to QuickBooks   Online you also have to choose a detail type  and the detail type is also called tax mapping   and it determines where on the company tax forms  will the balance of that specific account show up   now remember it usually does not affect your  day-to-day QuickBooks usage it really is the   truth that in this course if you accidentally  put the wrong detail type in most cases it will   not affect you it's simply for the accountant  if the accountant who's doing the taxes wants   to access the QuickBooks online account all they  would have to do is log in as the accountant user   and they'd be able to import all the accounts  onto the tax forms if they were mapped correctly   so don't worry too much about detail type and  tax mapping because where the bookkeeper our   job is to just make sure the numbers are right  regardless of where they go on the tax forms   now when we go to record the accounts you will  see that there are different choices you have to   make in order to create these accounts first you  have to choose an initial General category from   the six choices up here but when you go to do that  it will be clear what category you should choose   based on the name of the account and you're going  to do it along with me so you don't have to worry   now once you choose the general category it's a  simple choice to choose the account type usually   the account type that we're going to use in the  simple course should be the same name as the   general category and they're all right there  on the pull down list then once you chose the   account type you choose the detail type and again  the detail type might not affect us in this course   but if your accountant is using the convenience  of importing from QuickBooks Online it might help   your accountant do the tax forms more quickly if  you map it outright and make the correct detail   type choice please note QuickBooks Online already  added to your chart of accounts a huge number of   accounts for you to use the ones that we use will  be in capital so it'll be easier for our eyes to   see it when we go to make transactions and don't  worry that there are so many other accounts on   the list you will see later how to remove them  if you have time on your own and you'd like to   make it clear so for now let's take a look at this  list and one by one put in each of these accounts   we scroll down to where it says accounting and  then click chart of accounts if it's your first   time here you have to click on the green button  now you may notice that there's a huge number of   accounts that's already on the list of accounts  and QuickBooks Online thinks that it's trying   to help you by giving you all these accounts to  choose from when you do your work but you see I   find it much easier to put in the accounts the  specific accounts that we need when we're First   Learning so let's go ahead and click new and  notice you have the picture we saw a moment ago   now when we look at our list of accounts the  first one up here is a bank type of account   and normally the First Choice you make we're  going to make it simple by clicking here and   putting whatever name is similar to the general  category then the detail type in this example   was checking and the name that we're going to  put is Chase Bank number one two three four   so we click in the account  name field and we type in and if you need a moment to type you can pause the  video just to type it in so we can do it together   and when you click save you will notice if you  scroll down a bit or sort by name you or sort   by type eventually you will find on the list  the account that we just saved it's a little   difficult to find because there's so many  others but our eyes can find it more easily   because we saved it in capital letters so let's  do the next one cash on hand A Bank cash on hand   type of account so we come back here new it's a  bank type of account and we'll explain why later   so again we want to click bank accounts  the tax form section would be cash on   hand because that's the detail type  and that's also the name we type in   and again you don't have to type it as quickly  as I do but when you finish click save and then   you'll notice it's saved on the list of accounts  in the chart of accounts let's do company credit   card Amex number five six seven eight and  these are the types well it's very easy new   credit card credit card credit card  is the easiest and then you type in and then you simply save it and you can  rest assured when you go down to the   credit card section you'll be able to find the  account that you just saved okay now I'll do   two more with you and you'll see if you can  do the rest yourself by making the appropriate   choices what about Holden's capital investment  so we click up here new that would be equity   and then the type would be equity and then the  tax form section well what does it say on the   list it says owner's equity so we click here  choose owner's equity and we type in the name and after we type it in we can click save and  rest assured if you scroll down to the equity   section you'll see the one that you made and you  could even make the column a little wider if you   want to see oh sorry about that if you want to see  it but there we go so see if you can without the   teacher pause the video and put in the remaining  seven accounts yourself it won't look like this   when it's finished but I'll show you a way that  you can get it to look like this and make it easy now keep in mind when you finish your chart  of accounts will not look like this that's   because these accounts will be spread out over  all the other accounts that QuickBooks Online   comes with but if you scroll down slowly then  you will find little by little that you have all   of the accounts and you could Resort the list  by name by clicking name type by clicking type   you could even sort it by detail type and that  might help you find what you're looking for   if you made a mistake you can just click  edit and it's in the same place as make   inactive so now watch for example if I wanted  to change the name of this account or remove   it I would go all the way to the right and  I would click the pull down now if I click   edit I have the ability to change the type the  account type or even type in a different name and if I save the change you can see right away  the change affects the chart of accounts and I   made the edit but if I wanted to remove it  completely I would click the same pull down   arrow and click make inactive and as long as  the account has not recorded a transaction in   it I'll get a warning I'll click yes and it  will be gone and if you want you can remove   all the other accounts or at least most of the  other accounts that are getting in our way that   we are not using but you'll have to do that  after the video and you don't have to do it   you only have to do it if you want a little bit  of an easier time finding the accounts you're   looking for when we work on later videos chapter  8. recording deposits the bank deposit slip window   is as simple as the deposit slip you fill out at  the moment you actually make the deposit and it   has a space and a field for each of the pieces of  information you would need it has a field for what   who when how much and why and all you have to do  is answer those questions by clicking and typing   or choosing the data into the respective fields  and the transaction will be recorded but why are   we making a deposit well there can be only two  reasons why a company is recording a deposit   either we received income from a service that we  provided from a customer or that deposit money is   coming from the owner's personal pocket and the  non-business funds that the owner kept separate   and those can be the only two reasons but once we  do that we record the deposit and the results will   show immediately in the trial balance and that's  the great thing about using a computer and the   great thing about using QuickBooks Online for  example let's imagine on January 1 we deposited   three thousand dollars from customer Allen for  a wedding video that we did today on January 1.   now once we record this deposit what do you think  the result will be in the trial balance well if   we just deposited three thousand in the Bank cash  and Chase Bank will show up for the first time as   three thousand dollars then because the reason we  recorded this deposit was we earned video income   video income will also show up on the trial  balance for the first time as three thousand   dollars so let's take a look from the top left we  click new and we go all the way over to the right   and we click bank deposit and we get our good  friend the bank deposit window now we have to make   sure that we're pulling it from the correct bank  account so choose Chase Bank one two three four   click right next to the date number to get the  date box and we can go back one choose January   1 and then just edit the little year to be 2024  regardless of when you're watching this now if   we want to record who we received the money from  click directly under the received from field and   you get the arrow click the pull down arrow and  you'll be able to choose the name of the specific   customer who gave us the money then the reason why  click the pull down arrow and we have this huge   chart of accounts that I'm going to edit later  don't worry but you don't have to edit it because   you could find easily the account  you're looking for just by typing   in the first letter of the account name  that you're looking for and QuickBooks   will filter it and then you can click video  income and then click in the amount field   and type in the amount when you finish typing  the amount in any field to save the field without   saving the whole window go to the left of your  keyboard and push the tab key and the Tab Key   will move the cursor away and save the data so  that QuickBooks knows before you save this deposit   you're depositing three thousand now when we click  save and new or actually you could click here and   click save and close and it would close the window  close the window regardless yes because there was   no data now let's open the trial balance and see  if the results are exactly as what we expected we   click reports and then we open the trial balance  and you can see cash and Chase Bank showed up   for three thousand dollars and video income also  showed up for three thousand dollars pretty clear   now example two let's imagine on  January 2nd we deposited fifteen   hundred dollars from customer Betty for  an editing job that we did on January 2nd   so what will the results be in the trial balance  well before we record a fifteen hundred dollar   editing job with money earned this is the way  the trial balance looks but if we just suddenly   earn 1500 in editing income editing income will  show up for the first time as fifteen hundred   and because the bank account has increased by  fifteen hundred from this very same transaction   Chase Bank will increase and the balance  there will become forty five hundred dollars   so we record it the same way we click  new from the top left we go all the way   to the right and click bank deposit we  put the date of the event as January 2.   so we put the when now make sure it's the right  bank account you're depositing it to make sure   it's the right customer you're choosing when  it comes to the amount you put the amount   in the amount field and the reason why we got  this money is reflected in the account we choose   we click the pull down arrow and there are so many  but the first letter in the account we're choosing   is e for editing income so we can look around here  for the E we if we type in e d it even filters it   better and then editing income here we are we have  the when the who the how much and where and why   now once we click save and close you can see  the results in the trial balance are exactly   as what we expected Chase Bank is now 4500  and we now have 1500 of editing income so far   and for our last deposit let's imagine that on  January 3rd Holden took a thousand dollars from   his personal non-business funds that he normally  uses for his family and he took that money from   the account walked over to the other bank Chase  and physically deposited that 1000 into the Chase   business bank account so what will be the result  after this third transaction well this is the way   it looks now after the second transaction but if  Holden invested a thousand then Holden's capital   investment will show up for the first time as a  thousand dollars and because the bank account now   increases by that same thousand dollar transaction  we should show 5500 in the bank account after this   transaction so we'll do it the same way new bank  deposit we put when we make sure it's the right   bank account that's going to we put who it's  coming from we can actually leave this blank   if it comes from the owner or you could put  the owner's name but we're going to put in   type in the first three letters so we filter the  accounts and the amount is a thousand dollars   now when we click save and close you  can see the results are exactly as   what we expected we now have a capital  investment of a thousand dollars and the   amount in the bank account is exactly as what  we expected five thousand five hundred dollars now at this point some of you might be asking what  if I made a mistake and I put the wrong amount   or put something wrong with the transaction no  problem just reopen the transaction and change it   okay so before we do something fun watch I'm  going to show you if you wanted to change any of   these transactions from the trial balance all you  would have to do is hover over the total balance   of the account that the transaction was recorded  into any one of these and double click and when   you double click you will get a list of every  transaction that was recorded into that account   you can just double click on any one of the list  in the detail here and if you double click along   the row of any one of these transactions you will  go right back to the very same window that you   actually recorded the transaction in and once  you're in that window you can change anything   you want and once you save the change the results  will change immediately in the trial balance okay   so let's do something fun let's make the January  2nd transaction become a million dollars Let's   Pretend that's the mistake and see what happens  so we come here and well let's go back to reports   trial balance so if you notice something funny  about a total balance double click to get the   detail then go up and down scroll left and  right until you find the transaction you're   looking for and anywhere on the row double  click now instead of fifteen hundred dollars tab to save the field now it's a million dollars  now look what happens when I click save and close   see when I go to the right the million dollars  is reflected here and it screws up the balance   so if I click reports trial balance I can see  I now have a million dollars in editing income   and one million four thousand dollars in the Chase  Bank and we know that's not right but the point is   that's how you would change something so let's fix  it and this is the way you would fix it you notice   the total is wrong so you double click and then  you go one by one until you find from the list   which one is the wrong one clearly this one is  the wrong one so anywhere in the row double click   and then all you have to do is fix what was  mistaken no matter what field of data it is then   click save and close and you can see it's fixed  in the account and if you go back to the trial   balance the results are correct again and one last  Point these very same transactions you can find if   you open the list from the customer transaction  list by customer right now there's only one   transaction for Allen but if there were more  they'd be all listed in the Allen section there's   only one transaction for Betty but if there were  more they'd be listed in the Betty section and   we could double click the transaction from this  report as well and change and fix anything we want chapter nine checks and expenses why would we  write a check or record an expense well there   can be only one of two reasons either we're  making a normal business payment for a normal   business expense or the owner is taking money out  of the company for non-business personal reasons   now the expense window and the checks window  are really the same thing and when you record   something in either of them they have the exact  same result they both have almost the same areas   of data and data entry fields that you would use  to record things in so here's the check window   and when you record a check there's a place  for what who when how much and why just like   you would record if you were writing it down  in a checkbook and keeping track of it by hand   now notice the expense window is almost exactly  the same thing the only real difference is that   instead of the field saying check number it says  reference number and it's basically just the   transaction number or the number that refers to  that specific transaction the way a check number   would and you would use the expense window for any  reduction in the bank account that's not a check   regardless of which of the two windows you record  a transaction into the results will show up   immediately in the trial balance and the results  will be exactly the same regardless of which of   the two windows you recorded the transaction  in for example let's imagine on January 4th we   paid UPS 500 for a delivery paid with check number  661. now this is what the trial balance looks like   after our previous transaction so what will the be  the result in the trial balance now at the moment   we record and save this check well cash will have  to go down by 500 because we just wrote a check   from Chase Bank and because we wrote the check  for delivery delivery expense will show up for the   first time in the trial balance as five hundred  dollars let's take a look at how to record it   we click new and go to the second column where  it says vendors and go down and click check   and we get our good friend the check window  Now we move the date back to what it's supposed   to be in this case we're imagining it's  January 4th of 2024 and who are we paying and why are we paying UPS we click down  here and we're paying UPS for delivery   expense just type the first two letters and  the filtered account should show up somewhere   on the short list and you can see it clearly  and click on it and the amount we're paying now don't forget to put in the check number and you can study about checks later now that we  have all the information we click save and close   and now let's check the trial balance we click  reports we go to custom reports and we click my   trial balance and we can see that the balance  of the bank account has been reduced to five   thousand dollars even and delivery expense shows  up for the first time as five hundred dollars and now we'll do our third example let's  imagine on January 6 Holden made an ATM   withdrawal from the Chase business bank account  for personal non-business reasons it was two   hundred dollars and here's the reference number  well as we mentioned before it's not a check so   we would record this in the expense window  now this is the way the trial balance looks   before we record a withdrawal specifically for  non-business reasons so at the moment we record   this expense Holden's withdrawals will show up  for the first time in the amount that he took out   of the company not just out of the bank account  out of the business that's two hundred dollars   and because he took it from the Chase bank  account the Chase bank account will go down   by 200 and the result will be four thousand  dollars let's take a look we come here and   we click new and because it's a reduction of the  bank account that's not a check we click expense   we first make sure that we're writing or  excuse me recording the expense and the   ATM withdrawal from the proper bank account  we set the proper date for this transaction   and we can skip the payee if it's the owner  or you could put the owner on the list   now the reason we're taking this money  is non-business so we type in h-o-l click Holden's withdrawals and then  all we have to do is put the amount remember if it's not a check there should be some   transaction number or reference  number in this case 9988-776 it's usually a weird number and at the moment we click save and close the  results in the trial balance are exactly as   what we expected Holden's withdrawals showed up  for the first time as two hundred dollars and the   cash and Chase bank account decreased to four  thousand now this is very good but you should   know what to do if you make a mistake if you make  a mistake it's not a problem as we mentioned in   the previous lecture just reopen the transaction  and change it so let's do something fun let's make   January 6 become 4200 instead of just 200. well  we can do that pretty easy we could double click   either Holden's withdrawals and then see the  one transaction that's listed there let's go   back or we could double click Chase Bank and find  the transaction that way and we could go down to   January 6 and by double clicking anywhere across  the row so you can scroll across to see the whole   row but if you double click anywhere in the row  of the January 6 transaction you can come back to   the window and do anything you want with it and  make any change that you want so now I changed   it to 4200 by clicking in the field changing the  number and pushing tab when I click save and close   and I go back to reports trial balance the bank  account is cleaned out and Holden ran away with   the money or at least it looks like he ran away  with the money but it's not a problem because   we can fix it easily you see all we have to do  is double click Holden's withdrawals find the   only transaction that's there and double click  to open it up and we can change it right back push tab to save the field we can change any of  the data fields including which account category   which bank account date reference number anything  click save and close And now when we click reports   trial balance you can see the  numbers have fixed themselves   now there is one more thing you should know  before we jump into our first little exercise   every once in a while there's something that you  can't fix and you have to delete and if you delete   it it's like you never entered it in the first  place which means you might have to delete and   re-enter so let's delete the charge for supplies  for Office Max and see what the result is before   we put it back so if we go to supplies expense we  could finally charge here or List it in the bank   account if we go here it's only one transaction if  we come here to the bank account and double click   we can find the Office Max you know you could see  the name you could find it by date when you look   up and down the rows and the columns and then  you can come across so the Office Max one for   800 let's delete it and then we'll re-enter it we  double click now how do you delete a transaction   down here there's a button that says more and  it's the more button that allows you to delete   the transaction that's in front of you so we click  more and then we click delete are you sure yes see   this way you don't screw up and delete something  by accident now you can see that's gone if we go   back to our good friend the trial balance there is  no supplies expense there are no supplies expense   so it's almost like it never existed in fact if  we click reports and we look at the transaction   list by vendor you can see that we well it doesn't  really show a lot of vendors it just really shows   UPS because the Office Max one was deleted and  the withdrawal from Holden we didn't put a name   but let's be nice and put back the  transaction that we just deleted   it was January 5th an expense to Office  Max for supplies for 800. remember new   expense put the proper date always double check  that you're dealing with the right bank account   it was s u excuse me click for the pull down  arrow and then type S U for supplies expense   it'll filter it nicely and the amount was 800 and  again the reference number is very important 98765 don't forget to put Office Max as the vendor  and then click save and close we have replaced   the uh transaction that we deleted so  when we click reports trial balance you   can see supplies expenses back and the Chase  bank account is back to its correct balance   chapter 10. simple practice exercise set  this is what the trial balance should look   like before you start the practice set if you  have any numbers that are different you need to   use what we learned in the course to find and  fix your mistakes and enter things properly so   that we're both starting with the same sets  of numbers and this is what the customer and   vendor transaction list should look like  before you start the exercise again make   sure the details are the same and if they're  not fix them exactly the way that we learned   now here are the transactions that you're  going to record during this exercise   record them slowly you might have to pause  this video so that you can look back and   read the transactions and enter them at your  convenience make sure you enter them exactly   the way that we learned in the course if you  forgot how to enter a particular transaction   then I suggest you go back to a particular  video lecture the one that shows how to record   the transaction you forgot watch how it's  done and then come back here and enter it   there weren't that many so it shouldn't be too  bad to record all of these transactions properly   when you finish your trial balance should look  exactly like this if it does then congratulations   if it does not then you have to apply the  techniques that we learned in the two prior   videos to find and fix your mistakes and make sure  your results end up the same as mine and here's   what the transaction list by customer should  look like with all the details after you record   everything in this exercise set and this is what  the transaction list by vendor should look like   make sure all the numbers and all the details are  the same and if not reopen the transactions and   the way that we learned fix what's different  and then save it I'm absolutely sure when you   finish this exercise you will be at a higher  level of QuickBooks Online good luck and I'll   see you in the next video chapter 11. managing  cash transactions there are always some cash   transactions in any company and there's nothing  wrong with cash transactions as long as you keep   receipts and proper records it's appropriate  to make cash transactions for any company there   could be many reasons why it's more convenient  to pay cash for things even for a large company   and the record keeping for your cash on hand is  exactly the same as it would be as if the cash   were physically in the bank account it doesn't  matter where the cash is the record-keeping that   we do in QuickBooks will be the same you see  with a bank account the bank account's balance   will increase when we deposit to the bank account  meaning we physically put money in and the bank   account's balance will decrease when we pay from  the bank account because the money's coming out   and it's the exact same thing with the company  cash no matter where you keep the company cash   whether it's a lock box or the company cash is  kept simply in the owner's wallet you still are   depositing to the company cash when you put cash  in the place that the company keeps the cash and   it still decreases when you take that cash and you  pay from that pile of cash for company expenses   and that's the reason why the record keeping  for your cash on hand is exactly the same as the   record keeping for your bank account now just like  your bank balance will always show as the current   balance on on the trial balance report you'll have  a separate account in the chart of accounts that   shows a separate number that reflects the current  balance of the company's physical cash on hand   so in so many ways it's all the same you're  actually going to use the same window that you   use to record depositing money into the bank  account as the window that you use to record   increasing the pile of cash for the cash on hand  it's the same exact bank deposit window and again   as soon as you record it the results will show in  the trial balance immediately the only difference   between recording a deposit to the bank account  and the deposit to the cash on hand is that when   you use the bank deposit window you must make  sure to choose the cash on hand Bank type of   account instead of the bank account and then the  results will show properly in the trial balance   in fact when you pay from the cash on hand you use  the very same window that you record paying from   the bank account you record the expense window  and again the results will show immediately in   the trial balance of course the only difference  this time is that when you use the expense window   to record paying from cash on hand you have  to make sure that you chose the cash on hand   account from the pull down list in the expense  window so it records coming from the right place   now you may well ask where is the proof of a  cash transaction you see these are the only   transactions that a small company deals with  that are not on statements that come from a   bank or come from a credit card company or  some financial institution so therefore you   must have the original paper receipts or deposit  slips or any other source document that proves a   cash transaction and you have to keep them in a  safe place the same way that you keep the cash   in a safe place because they're the only proof  of a cash transaction and when we do our example   transactions you just have to imagine that we're  reading it off these paper receipts rather than   reading it off the screen for example let's  imagine on January 15th Holden the owner took   five hundred dollars cash from his home family  non-business cash and put it into the company   cash lock box to establish the cash on hand fund  now what will be the results well this is what   the trial balance looks like right now before we  record taking Holden's personal cash and putting   it into the company cash on hand box but at the  moment that he does that cash on hand should   show up for the first time as five hundred dollars  because that's now the balance of the cash on hand   and because the money came from Holden's personal  pocket Holden's capital investment will increase   by 500 and the result will be four thousand  dollars let's take a look at how to record it   so here's the trial balance with all  the numbers from the previous video   to record a cash deposit into the uh lock  box we click new and even though it's not   physically in the bank it behaves the same  as the bank account so we click bank deposit   and of course we have to put the date  January 15th of 2024 in our little story and we don't have to put received from if it's  the owner you can if you want to but you don't   have to but most important to understand  the reason why this cash on hand is going up   is because Holden invested more from his pocket  so the account reflects the reason and normally   the reference number would be some kind  of uh ATM withdrawal slip if he took it   out of his personal bank account or some kind  of cash flip but we'll skip over that for now   any document that represents the transaction  has a number that usually goes here and the amount is five hundred dollars very simple  when we click save and close you can see that the   results in the trial balance are exactly as what  we expected cash on hand showed up for the first   time as five hundred dollars and Holden's capital  investment increased to four thousand so let's do   a second example let's imagine on January 16th we  paid Office Max fifty dollars for supplies expense   and we paid with cash and we have this receipt  number so what will be the result in the trial   balance after paying fifty dollars more for office  supplies well if we paid fifty dollars from cash   on hand then cash on hand decreases by fifty  dollars and becomes 450 and because we purchased   more supplies supplies expense increases by fifty  dollars and becomes one thousand six hundred fifty   again from the top left we click new and we go  over to expense we advance the date to the date   of the transaction make sure you're paying from  the correct Bank type of account in this case   cash on hand we're paying Office Max and when  you get this message in a check or an expense   they're asking if you always want to use the same  expense type of account for the same vendor it   might be convenient but they're also asking you  do you want to put the same amount as last time   I say always click no because it's never or almost  never going to be the same amount each time even   if it's the same expense QuickBooks Online  was trying to help you with that message but   we don't need it and the reason why we're paying  this money is reflected in the account we choose   type in the first two letters to easily filter to  the account you need and the amount in this case   is fifty dollars now remember there's usually a  cash receipt little piece of paper that has the   reference number or the transaction number and  that helps you prove it so you should copy the   number from the little piece of paper and save the  little piece of paper with the rest of the company   cash now when we click save and close you can  see the results are exactly as what we expected   cash on hand decreased by fifty  dollars and became 450 and supplies   expense increased by fifty dollars and  became one thousand six hundred fifty   now let's do a third example let's imagine on  January 17th Holden paid Rex for a hundred dollar   cash repair of his equipment and Rex gave him a  handwritten receipt 05 27 1966. so let's record   that exactly the way we recorded the other but  what will be the result in the trial balance   after paying a hundred dollars cash for more  repair well cash on hand decreases by a hundred   dollars because we're taking a hundred from  the cash on hand and 350 will be the balance   and if the reason why we're paying is because  of repair we paid a hundred more for repair   so repair expense increases to a thousand dollars  we click in the top left new we go over to expense   we advance the date to the date of this  transaction always double check that you're   paying from the correct Bank type of account this  time it's Rex repair okay and the reason why we're   paying is we click under the word category to get  the pull down arrow click on the Arrow Type R E   just to filter the account so that you can easily  find repair expense and the amount was a hundred   dollars and always put in the number on the slip  and always save a copy and the hard copy of the   slip with the cash oh five two seven one nine  six and whatever then we click save and close and   the results in the trial balance are exactly as  what we expected cash on hand decreased to three   hundred and fifty dollars and supplies expense  increased to one thousand six hundred fifty   now let's do a fourth example this one is  the most interesting pay close attention   January 18th hold and made you know the owner made  an ATM withdrawal of six hundred dollars and he   withdrew the cash from the company bank account  and put that very same cash into the lock box to   be spent as cash for the company well first let's  think about what we need the results to be and   then we'll talk about how to record it we know if  the cash on hand is increasing by 600 the result   should be 950 dollars and we know if the cash in  the bank account is decreasing by 600 the result   there should be five thousand eight hundred  so we know that should be the result but wait   how to record this particular type of transaction  there are several ways which I Will Not Waste   Your Time on several ways that you can get the  results to be correct but the proper way is to use   the transfer window because technically you are  transferring the funds from the bank account to   the company cash on hand account so that's where  the money's coming from that's where the money's   going to so we will use the transfer window and  the transfer window is the appropriate place to   record a transaction like this and it's a very  simple window I don't think I need little arrows   to show you what to put in the little Fields  so remember this is what the transaction is   and this is what we and you know we want the  results to be what we showed a moment ago so   let's go ahead and use the transfer window in  the top left we click new and of course we go   all the way to the right under the bank deposit we  click transfer and it's very simple we advance the   date to the date that the transfer happened and  it's the easiest thing to put we put where the   money's coming from it's coming from the bank  account we put where the money's going to it's   going to the cash on hand account and the amount  that we physically took out that's reflected if   there's a deposit slip number you might want to  put it in the memo field make sure it matches   I mean excuse me an ATM withdrawal slip number  I don't know if I gave one but if there is you   should put it in the memo field or any number  on any document associated with the transaction   save and close and the results in the trial  balance are exactly as what we expected   cash on hand increased to 950 and cash in Bank  decreased to five thousand eight hundred dollars   now we know that this is the correct result  but I want to leave you with one final note   sometimes in a small company where things are  done Loosely the cash on hand can simply be a   place in the owner's wallet and you might not  really have to set aside a place for cash on   hand just think about this for a moment if  at any given moment the cash in the owner's   wallet is more than the balance of the cash on  hand that's indicated in QuickBooks then all   that means is that the extra cash belongs  to the owner as an individual and that's   his or her personal cash and the cash that's  reflected in the balance of QuickBooks Online   that part of the cash in his wallet belongs to  the company so that's pretty easy to understand   but what if the cash on hand or the balance in  QuickBooks is lower excuse me m is greater than   the physical amount of cash that you have in  the wallet well think about it if it says we   have 950 cash on hand and the wallet only has  500 what would that mean it means if the cash   in the wallet is less we assume that the owner  spent that difference for non-business reasons   and simply did not have an opportunity to record  that in the expense window so you can do things   Loosely and keep the company cash in your wallet  and if the company cash in your wallet is lower   than what's indicated in the balance in QuickBooks  it means you made an owner's withdrawals you don't   have to explain what it went for you just have  to remember at the moment you make your financial   statements record an expense and put owner's  withdrawals chapter 12 using register windows every bank and credit card account that we use  in QuickBooks Online can be opened in a register   window let's take a look you see if you click  accounting chart of accounts you get the list   of accounts that we already put in and many  of these have available the register window   the account we used most in this course was cash  and bank for Chase so let's click view register   as you can see it lists all the transactions  that we recorded in the Chase bank account and   it also has something called a running balance  so that you can actually see the balance after   each transaction that means you can see the  balance at a specific moment in the past   you probably also noticed that there are  two lines in the register for every one   transaction because that's supposed  to approximate the Old Register books   that people used when they would keep track of  their checkbooks in the days before the computer   now you can sort this register or any register  window by any column heading so you can sort   by date or payee or payment or anything else  let's take a look first let's sort by name   so when we come here as I mentioned there are two  lines for every one transaction and if you come   here you see that payee and account are in the  same column so you click the arrow next to payee   and now you notice all of Alan's transactions are  next to each other all of Betty's transactions are   next to each other and so on let's filter  let's sort by date if you click the arrow   next to the word date in the column heading now  you see its oldest to newest as you scroll down   but if you click the arrow uh the triangle again  now it's newest to oldest so you can sort in any   way that suits you if you're looking for something  specific let's sort by amount that's interesting   if you come to the payment column and in  the heading of payment you click the arrow   now you get all of the transactions that are  only payments only reductions to the account and   they're listed from smallest to largest and then  when they're done the deposits are listed from   largest to smallest and it's the opposite if you  click the deposit Arrow if you click the deposit   Arrow now the deposits are listed from smallest  to largest and then the payments are listed from   large well they're not really any particular  order but that's what happens when you sort   and one of the greatest things is the filter tool  if you have a lot of transactions in your register   you could filter by date type and put and Pay E  which means you're filtering by the name of the   person whether it's a customer or vendor and you  could do that right from this little tool that   opens up in the top left for example let's filter  by date let's find all the transactions between   January 1 and January 15. so in order to get the  filter tool scroll all the way up and click the   little funnel in the top left right above the date  column heading when you do that you get the filter   box now we don't want all dates we want to click  from and we just want to put it for January 5th   and our little story is 2024. and we want the  cut off to be January excuse me January 15th   of 2024 in our little story once we have the date  set we click apply and now you can see the only   transactions that are showing in the register are  transactions between January 5th and January 15th   now let's see only the checks because you can  filter by transaction type in order to remove a   filter that's already there you could click clear  filter or click the little X next to custom and   it will reset to the normal way the register shows  now we'll click the filter box again we want only   certain transaction type in this case check and  then apply and now you can see we wrote check 6616263 and 6 4 and probably six five  will be the next one in succession   and again to remove the filter click the x or  clear filter you can edit any transaction just   by clicking on it for example let's reopen the  January 3rd transaction and add the word hello to   the memo field just to see what it looks like when  you edit a transaction from the register window you can more easily find it if you click  the date Arrow because we're looking for   the January 3rd transaction here remember there  are two lines for every one transaction to edit a   transaction in the register window just click on  it and this is the way the interface looks when   you're trying to edit a specific transaction  and you can change any of the data fields   the date the name the account even the money  amount we're going to click in the memo field and just add the word hello and just click save  just for the experience of changing something   from the register window but I had another  reason for telling you to do that because you   can search for any number or text that's anywhere  in any data field of the transaction and only the   transactions that have exactly that text in one  of the fields will come up so that's what makes   it easy to find if I scroll up and I click  the filter icon again to get the filter tool   in the find window in the find field here just type what you know is in the memo field and  click apply and the only one that shows up is the   one that we put the word hello in the memo field  and doing things like this make it very easy for   you to find specific transactions that you're  looking for don't forget to clear the filter by   clicking clear filter or the X next to the name of  the filter and then it goes back to the way it's   supposed to look the most convenient thing about  these register Windows is that you can record all   the transactions that relate to the account  that you're using directly into that accounts   register window and the result will be the same  as if you recorded it directly into the deposit   window or directly into the expense window the  way we learned in Prior videos for example let's   imagine on January 19th we deposited two thousand  two hundred dollars into the Chase bank account   from Alan Arby for a video job that we just did  well if this is what the trial balance looks like   right now before we record that Transaction  what will happen in the trial balance well   we just earned 2 200 more of video income so video  income will increase by that amount and become six   thousand nine hundred and because the bank account  also has two thousand two hundred more in it as   a result of the deposit the bank account will  increase by that amount and become eight thousand   so let's take a look at how to record this in  the register window so we go to the top and right   under the date column heading is the pull down to  choose the transaction you will record right now   by default it says add expense but if you click  the pull down arrow you get a list of transaction   types that you can choose from when recording  a new transaction into the register window   so we click deposit in this case and we know the  date is January 19th in our little story 2024. and we know that the person who paid us was  Alan Orby we know the reason he paid us was   video income so we type VI in order to filter the  account and go straight to it click on it and we   are recording the same exact data fields in the  register window that we did in the deposit window   the last thing was the deposit  amount so we click in the field   type the number and push tab just to save  the field now when we click save we can now   click reports trial balance and you can see  the results are exactly as what we expected   video income went up to six thousand nine hundred  and cash in Chase Bank went up to eight thousand   please note something very very important if you  reopen a transaction from a report it will open   in the original deposit or expense window  and it will not reopen the register window   so let me show you what I mean we just recorded  a transaction in cash and bank and video income   so I'm going to double click video income and  you see it looks like any other deposit that   was recorded in video income and when  I double click anywhere on the row of   the January 19th deposit that we just made  notice the deposit window opens up for this   one individual transaction and you did not  go back to the register window and that was   the reason why we needed to learn about Bank  deposits and expenses before we went to use   the register window so that you understand how  to re-edit when you're opening it from a report now let's try a second example let's imagine on  January 20 we paid Staples a hundred and fifty   dollars cash from the cash on hand and received a  paper receipt eight four seven two one two three   now if we paid a hundred and fifty dollars for  more office supplies what would happen well we   have a hundred fifty dollars less than cash on  hand so cash on hand will decrease from 950 to 800   because we just gave 150 dollars and if the reason  we paid the hundred and fifty dollars was for more   supplies supplies expense will increase by 150  and become eighteen hundred and these are what   the numbers should look like after we record this  particular cash payment so what do we do we go   accounting chart of accounts because we're using  the register windows in the same row of the cash   on hand account we click view register and now  we can see all of the cash on hand transactions   now this one is an expense so again click under  the date column heading to get the list of   transactions in this triangle and now we see from  the choices the appropriate transaction for this   is expense we put the date that we paid it from  which was January 20. of 2024 in our little story   now we paid Staples and we paid supplies expense  but what we don't want is the previous amount   from a previous transaction I don't know why they  do that it's supposed to be a hundred and fifty   dollars in this case and the reference number on  the cash slip that we got was eight four seven two   one two three whatever it is now when we click  save and we look at the trial balance we click   reports trial balance the results are exactly  as what we expected cash on hand decreased   to eight hundred dollars and supplies expense  increased to one thousand eight hundred dollars   and don't forget the rule that we learned  a moment ago if we reopen it the register   window will not pop up the expense window will if  we double click on supplies expense it looks like   any other expense we recorded and if we double  click the one that we recorded in the register   the individual expense window opens up and gives  us the ability to change anything we want and   again that's the reason why we needed to learn  the expense window before the register window   now our third example is the most interesting  let's imagine on January 21 Holden made an ATM   withdrawal of 400 from the company bank account  and put the cash in the company cash lock box   well what will be the result well we know the  bank account has 400 fewer dollars so it will   decrease from eight thousand to seven thousand  six hundred and we know the cash on hand has   400 more dollars so that will increase from 800 to  1200 but wait a minute which of the two registers   should we record this in the answer is either  one it does not matter because this transaction   affects both registers you can record it in one  and QuickBooks Online will automatically record   it in the other one for you so if you choose to  record this transaction in the bank register you   would record it as an expense and as long as  you remember to put the cash on hand as the   account in the transaction the result will be  exactly the same as if you do it the other way   you see the other way you could do it and  get the same result would be to enter it   as a deposit into the cash on hand register  instead of the bank register and then in that   case the account that you would put as part of  the transaction would be the Chase bank account   so you can enter it into the cash register and  put the bank account as part of the transaction   or you could enter it into the bank register  and put the cash account as the account in the   transaction and the result will be the same so  when you finish the numbers in your trial balance   and all the accounts will be the exact same  regardless of which register you record this in   so I'm going to allow you to record this without  me showing you and I'm going to allow all students   to choose whichever register they want to record  it in and if you need to rewind the video to see   how to record it for that choice please I invite  you to do so and see if you can enter it without   me and still get the proper results Chase  Bank 7600 cash on hand twelve hundred good   luck don't stop until you have exactly these  numbers and I will see you in the next video   chapter 13 managing credit card transaction you  see the record keeping for a company credit card   is exactly the same method as keeping records of  your bank account they both have plus and minus   to the balance every time you have a transaction  but with a bank account we give our money to the   financial institution first then we pay from the  account for the things that we need in business   but with a company credit card we pay from the  account first and then after that we give our   money to the financial institution to pay off  the card so it's the same transactions but it's   in a different order and that's the reason why  keeping records of a credit card is the same as   keeping records of a bank account in both cases  they both will show up as balances on the trial   balance so just like you have an account in  the chart of accounts to show the balance on   the trial balance of the bank account you have  another account in the chart of accounts to show   the balance of your company credit card and if you  double click you get a list of every transaction   in the company credit card most credit card  transactions can be recorded in the expense window   it has a field for everything you need when you  charge a company expense the payment account field   should be showing the credit card the specific  credit card account that you're using to charge   for the expense and the category field should be  the specific expense or asset that you're charging   when you use the company credit card then later  when you pay down the card the payment account   should be the bank account that the money  is coming from when you pay down the card   and the category account at the bottom should be  the credit card that you're actually paying so   you can think of it as coming from the top  of the window to the bottom you're paying   from the Chase bank account and you're  decreasing the balance of the credit card   for example let's imagine on January 22nd we  charged one thousand seven hundred dollars to   Con Edison for the monthly electric bill with this  reference number so what will happen in the trial   balance at the moment we record this transaction  well since this is our first credit card charge   the American Express card will show up for the  first time in the trial balance for the amount of   the charge Seventeen hundred dollars and because  the charge was for utilities expense utilities   expense will increase by 1700 and become two  thousand eight hundred let's take a look at how   to record it from the top left we click new and we  go over to the vendor column and we click expense   now we put the date what we usually should  put the date first January 22nd in our little   story of 2024 but the most important field  is this you must make sure that the payment   account when you charge an expense is the company  credit card the specific one that you're charging   and because we're paying on Edison then  we click here and we click Con Edison   now we click directly under the word category and  then click the arrow and we want utilities expense   which we can filter by typing in the first two  letters then we put the amount Seventeen hundred and of course we copy the slip number from the  charge into the reference number field 7766554 now we click save and close and the results  in the trial balance are exactly as what we   expected the American Express card showed  up for the first time as Seventeen hundred   dollars and utilities expense increased  to two thousand eight hundred dollars so now let's do a second example let's imagine  on January 23rd we charged eight hundred dollars   to Holden's dentist for dental work and that's  the slip number now what would change in the   trial balance at the moment we use the company  credit card for Holden's Choppers well because   we charged more on the credit card the credit  card will increase by the 800 and become 2 500.   now this is not an expense of the company so  anytime company money is paid when it's not   an expense of the company it goes to Holden's  withdrawals so he withdrew from the company for   personal reasons 800 more dollars and that amount  increases to one thousand three hundred dollars   so just like before we click  new we come across to expense we set the date as January 23rd  of 2024 in our little story   you can leave the payee blank if you want to  if it's an investment or withdrawal but we're   paying from the credit card for Holden's personal  reasons so we click right below the word category   then we click on the arrow and type in h o so that  it will filter and you will see this is Holden's   withdrawals click on it and the amount is 800. you  should always try to remember the reference number   whatever that might have been and then at the  moment we click save and close you can see the   results are exactly as what we expected the  American Express card now has a balance of two   thousand five hundred and Holden's withdrawals  has increased to one thousand three hundred   and now example three let's imagine on January  24 Holden paid seven hundred dollars with an   online payment to American Express from the  company bank account to decrease the balance   of the credit card and this is the transaction  so what would happen in the trial balance if he   pays down the credit card from the bank account  by seven hundred dollars well the bank account   will decrease by 700 and become seven thousand  three hundred and the balance of the credit   card would also decrease because he's paying it  down by 700 and that would become one thousand   eight hundred so we will record this in the  expense window as well we click new expense   and of course we have to put the date okay  January 24th of 2024 in our little story   but this time we're not paying from  the credit card account this time   we're paying from the bank account and  we're paying to the credit card account   just type in the first two letters and then click  right on it and of course the reference number and we remember the amount that we're  paying with seven hundred dollars now we click save and close and you can see the  results are exactly as what we expected Chase   Bank decreased to 7 300 and the American Express  balance decreased to one thousand eight hundred all credit card credits like returns and refunds  can be recorded in the special window just   specifically for credit card returns refunds and  credits that's the name of it credit card credit   and it has all the fields of data that the expense  tab has but this is specific for credits so let's   do an example let's imagine on January 25th Con  Edison gave Holden a partial refund for the prior   bill that he had paid on January 22nd which means  they're giving back a hundred dollars on the AmEx   credit card that he had paid when he had charged  his electric expense or utilities expense with the   American Express card and that's the reference  number of the credit that they just gave and   lowered his American Express balance so at the  moment Holden records getting a credit back on   his American Express by a hundred dollars from the  company that gave him electricity what will happen   well the American Express balance will decrease  by a hundred and become one thousand seven hundred   and the original expense that he charged for  his electricity will decrease which is utilities   expense and he has less of that by a hundred  because they just gave back some so his real   utilities expense will show two thousand seven  hundred from the top left we click new and in   the vendor column we click credit card credit now  we advance the date to the 25th and the payee is   Con Edison and of course this is the credit card  that we're crediting down because the vendor gave   us some back and the category is the expense of  the original charge that you're getting the credit   for UT remember two letters and it will filter for  the account that you need the amount is a hundred and I believe that was the number when we click  save and close the results are exactly as what   we expected the American Express went down to  1700 and the utilities expense decreased to two   thousand seven hundred now it's important to  know that credit cards have register windows   and QuickBooks online just like bank accounts  do and you can do everything we just learned   in this video lecture in the register window  of the credit card exactly the same way that   we learned about registers before and  the results would be exactly the same   so example five let's imagine on January 26th we  charged 1100 on the company American Express card   for a delivery from FedEx and that was the slip  number now if this is the way the trial balance   looks right now what will happen when we charge an  additional 1100 on our credit card for a delivery   well the credit card balance will increase by  one thousand one hundred and become 2 800 and   delivery expense will increase by one thousand  one hundred and become two thousand three hundred   and we can do this in the register exactly the  same way that we uh did it in the other windows   so we click accounting chart of accounts and  we scroll down to the American Express credit   card right here and right here on the same row as  the American Express we click view register okay   notice everything's in date order and to enter  a new transaction we click the pull down on the   next to the words under the date column heading  the pull down and this is a credit card expense we make the date January 26th of 2024 and the payee is   FedEx the company we're charging and the account  d e for delivery expense and the amount is 1100. and of course the reference number now at the moment that we click save   we can go back and click reports trial  balance and the numbers are exactly as   what we expected the American Express balance  has increased to 2 800 and delivery expense has   increased to two thousand three hundred  chapter 14. expenses paid by the owner   payments from the owners personal non-business  bank and credit card accounts for company related   expenses are considered Capital investments  into the company from the owner and the   only account that you can record these types of  transactions into is Holden's capital investment   when you have transactions where the owner paid  from personal account for business reasons the   proper window to record these capital investment  transactions would be the register window of the   Holden's capital investment account right now  when you open this account we only see three   transactions during the entire course where  Holden took personal non-business money and   put it into the business accounts with  the intention of using it for business   but when Holden pays his personal funds for  business reasons or does the transactions here   the equity register should only record the  increase column and that's true for every   transaction that would go into Holden's capital  investment we only use the increase column because   the purpose of this account is to only record  investments from the owner into the company   and when we record these types of transactions  the transaction type will be add journal entry   for example let's imagine on January 27 Holden  paid eighty dollars from his personal non-business   cash for company supplies purchased from  OfficeMax with receipt number 191919 well   this is the way the trial balance looks before  we record this transaction and if Holden paid   more for supplies and he paid more by eighty  dollars than supplies expense would increase   by eighty dollars and become one thousand  eight hundred eighty and if the reason why   supplies expense has increased is because it came  from the owner's personal pocket then Holden's   capital investment would increase by the same  eighty dollars and become four thousand eighty   from the left panel we click accounting  chart of accounts then we scroll down to   Holden's capital investment right here and  in this row we click the register window   now again these are the only three transactions  we had for Holden's capital investment but we're   going to click add journal entry and  record the transaction we just showed   now the date was January  27 2024 is our little story we put in the reference number and the account in  this case s u for supplies expense the payee is   o f for OfficeMax and the amount that the  equity is increasing is the amount of the   supplies that we purchased eighty dollars when  we click save and then we click reports trial   balance we see the results are exactly as what  we expected Holden's capital investment increased   to four thousand eighty and supplies expense  increased to one thousand eight hundred eighty   now let's do a second example let's imagine  on January 28 Holden paid a hundred and twenty   dollars from his personal non-business credit  card for a company delivery from UPS and that slip   number one two one two what will be the result in  the trial balance after recording this transaction   well we have more delivery expense  by a hundred and twenty dollars   so delivery expense will increase to 2 480. and  the reason why we have more delivery expense   is because Holden invested more into the company  that means that Holden's capital investment will   also increase by a hundred and twenty dollars  and become four thousand two hundred dollars   we click accounting chart of accounts and then we  click the Holden's capital investment across the   same row we click view register now we're going  to click add journal entry and the date will be   January 28th of 2024 in our little  story that's the reference number   and in this case we are paying to UPS  you p oop excuse me it's right there   and we're paying for d e l delivery and the amount  we're paying always goes in the increase column   hundred twenty dollars click save now when we  click reports trial balance we see the results   are exactly as what we expected Holden's capital  investment increased to four thousand two hundred   and delivery expense increased to  two thousand four hundred twenty   and now we'll close with a third example let's  imagine on January 29th Holden paid three hundred   dollars from his personal non-business bank  account for a company equipment repair job   from our good friend Rex repair and that's the  check number so what will be the result in the   trial balance when we record this transaction  well the company has three hundred dollars   more in repair expense so repair expense will  increase to thirteen hundred dollars and since   Holden invested 300 more from his personal  pocket Holden's capital investment increases   to four thousand five hundred dollars so what  do we do we click accounting chart of accounts   we now scroll down to Holden's capital  investment just like we did before   and in the same row we click view register  now of course we add journal entry   and we put the date the date in this case is  January 29th of 2024 the last transaction will do and the person whom we paid in this case is Rex  repair shop and we paid for re repair expense   the amount that we paid is 300. now keep in  mind whether the owner writes a check from their   personal account whether they use their personal  cash or whether they paid from a bank account or   even a credit card account it doesn't matter  whatever the transaction number on the paper   receipt shows that's what you put here and if  it's a check number you put the check number here   when we click save we can go back to reports  trial balance and the result is exactly as   what we expected repair expense became  one thousand three hundred dollars and   Holden's capital investment became  four thousand five hundred dollars chapter 15 final project this is what the trial balance should look  like right before you begin this exercise   it's the results of all the transactions that we  entered in the entire course you must make sure   that your numbers are the same as mine before  you begin the Practical project exercise you   should also double check your transaction list by  customer for more details to make sure that your   numbers are the same this is also the transaction  list by vendor before we begin the project and if   you compare this one by one to yours you'll see if  you recorded everything with the proper detail and   during this video you may need to pause and keep  the video at a specific moment in time to either   compare to your numbers or at least to read  off the transactions while you do the exercise now here are the first transactions that you'll  enter as part of this video exercise there's   only 13 of them and these transactions are exactly  the same as the transactions that we recorded all   during the course and if you forget how to record  any one particular transaction you should go back   to the part of the course where we learned that  type of transaction and then come back here and   record it the same way now when you finish the  first set this is what your trial balance should   look like and when you're done compare each of the  numbers here to each of the numbers in your trial   balance and if there are any differences you must  use what we learned in the course to find and fix   your mistakes so that your trial balance is the  same as mine and of course it helps to see the   transaction list by customer after the first set  so you can compare yours to mine to see if you   need to make any changes and of course you should  also compare your transaction list by vendor to my   transaction list by vendor and of course I cannot  fit the whole thing on one screen so let's pause   the video if you want to to compare this to  yours and the second page of the transaction   list by vendor is shown here you can pause again  if you want to make sure that it's all the same   now here's the interesting part I'm giving you now  a set of six bonus transactions and I assert that   even though we did not exactly and specifically  do these transactions you should be able to do   them from your knowledge and understanding of  the course think about each one think about the   situation and think about what windows to record  them into and how I'm absolutely sure that if you   give yourself time with each of these you should  be able to record them and after you record these   this is what your final trial balance should look  like after recording everything in the course   and I know you'll remember how to find and fix  any differences so that when you finish your   trial balance looks exactly like mine it may also  help you to see the transaction list by customer   so that you can compare important details if you  have any differences and that should also help you   find and fix mistakes if you have any and this  is page one of the absolute final transaction   list by vendor and you can pause it here if  you need to and here is the transaction list   by vendor the second page showing everything  up to the last transaction in the course   so I wish you good luck with the exercise  and I'm here if you have any questions thank you so much for watching this video all the  way till the end I know that this knowledge will   help you and just remember if you need anything  else regarding QuickBooks just click on the kitty   to come to the main Channel page where you  can choose from hundreds of other QuickBooks   and QuickBooks Online topics just in case there's  anything else in QuickBooks that you need to learn   I know the channel page will  help you and please stay in touch thank you foreign

Channel: thequickbooksdude

Views: 9,422

Keywords: QuickBooks Online Made Easy, QuickBooks Online for small companies, QuickBooks Online for small business, express bookkeeping, QuickBooks online for accountants, basic bookkeeping, do bookkeeping yourself, self-teach QuickBooks online, self-study QuickBooks online, QuickBooks online for dummies, QuickBooks online training tutorial, QuickBooks online help, QuickBooks Online crash course, QuickBooks online made simple

Id: iD6X9O2K7ik

Length: 143min 59sec (8639 seconds)

Published: Wed Feb 22 2023