Introducing
QuickBooks
Chapter 1
Installing QuickBooks Software
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Insert the QuickBooks CD into CD-ROM drive
The installation program will start automatically
Follow the onscreen instructions
If the installation program does not start
automatically:
– Select the windows start menu and then
select run
– Enter [D]:\ Setup.exe (where D is the drive
letter of your CD-ROM drive)
– Click OK
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CHAPTER 1: Introducing QuickBooks
SLIDE # 2
Working With the Practice Files
• The practice files are located at
www.sleetergroup.com/support/products/QBSS
-2006-Fund
• Download the file
QuickBooks_2006_Classroom_Files.exe to
your local hard disk and install (double-click) it
• Installed files will be placed in
– C:\QuickBooks 2006 Classroom Files and
backup files into the QuickBooks 2006
Backup Files directory.
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CHAPTER 1: Introducing QuickBooks
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Computer Practices
• All the chapter computer files are
– In the .QBB format
– Located inside the QuickBooks 2006 backup files sub
directory
– Example: Intro-06.QBB
• The practice files used for every chapter are
– In the .QBW format
– Created by restoring the corresponding backup file
– Example: Intro-06.QBW
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CHAPTER 1: Introducing QuickBooks
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Objectives
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An overview of the QuickBooks product line
Some of the basic principles of accounting
The accounting behind the scenes in
QuickBooks
An overview of QuickBooks data files and types
How to restore backup files
Entering Transactions in QuickBooks
QuickBooks user interface features
About QuickBooks help and support
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CHAPTER 1: Introducing QuickBooks
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Editions of QuickBooks
• Simple Start
• Online Edition
• Pro
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• Premier
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Accountant
Contractor
Non Profit
Manufacturing &
Wholesale
– Professional Services
– Retail
CHAPTER 1: Introducing QuickBooks
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QuickBooks Releases
• Release Level refers to the patches provided by
Intuit to fix the problems found in the program
– To verify the release level, press Ctrl+1 (or F2) while
QuickBooks is running
• To patch your software with the latest
maintenance release
– Download the latest release by selecting the Help
menu and then selecting Update QuickBooks
– Follow the instructions on these screens to download
and install maintenance releases in QuickBooks via
the Internet
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CHAPTER 1: Introducing QuickBooks
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Accounting’s Focus
• To assess:
– The financial position of the organization
relative to its debts (liabilities)
– Its capabilities to satisfy those debts and
continue operations (assets), and
– The difference between liabilities and assets
(net worth or equity)
• The Accounting Equation,
Assets = Liabilities + Equity
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CHAPTER 1: Introducing QuickBooks
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Accounts and Chart of Accounts
• Business transactions are recorded in
several types of ledgers, called accounts
• The summary of all transactions in all
ledgers for a company is called the
General Ledger
• A listing of every account in the General
Ledger is called the Chart of Accounts.
• Each account has a type (i.e., asset,
liability, equity, income, or expense)
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CHAPTER 1: Introducing QuickBooks
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Accounting Types
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Primarily five account types:
1.
2.
3.
4.
5.
Asset
Liability
Equity
Income
Expense
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CHAPTER 1: Introducing QuickBooks
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Double-entry Accounting
• Total debits must always equal total credits
• In QuickBooks, every transaction creates a debit
in one or more accounts and a credit in one or
more accounts to handle double-entry
accounting
• Depending on the type of account, a debit might
increase the account or decrease it; the same is
true of credits
• Therefore, debits are not always bad and credits
are not always good
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CHAPTER 1: Introducing QuickBooks
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The Accounting in QuickBooks
• Transactions are entered in familiarlooking forms such as Invoices, Bills and
Checks
• QuickBooks handles the accounting debit
and credit entries
• This allows you to focus on the business
transaction rather than the debits and
credits in the General Ledger
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CHAPTER 1: Introducing QuickBooks
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Cash Versus Accrual
• The accrual basis method
– Revenues and expenses are recognized in
the period in which the transactions occur,
rather than in the period in which cash
changes hands
• The cash basis method
– Revenues and expenses are not recognized
until cash changes hands
• With QuickBooks, you can create reports
for either method
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CHAPTER 1: Introducing QuickBooks
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Academy Glass Sample
Company
• Fictitious sample company used in the text
book
• A home improvement and contracting
corporation
• A service and a merchandising company
• Has two stores, one located in San Jose
and another located in Walnut Creek
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CHAPTER 1: Introducing QuickBooks
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About QuickBooks Files
QuickBooks has three primary types of files:
• Data files (extension “.QBW”)
– To enter data or create reports
– Select File menu and then select Open Company
• Backup files (extension “.QBB”)
– To create a condensed version of the data file
– Restore into a .QBW file before using it
– Select File menu and then select Restore
• Portable files (extension “.QBM”)
– To move you QuickBooks data to another computer
– Select File menu, then Portable Company File, and
choose Create File…
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CHAPTER 1: Introducing QuickBooks
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Open QuickBooks Data Files
• Launch the QuickBooks program:
– Double-click the icon on your desktop or
– Select it from the Windows Start menu
• Previously opened data file will be opened
(unless you specifically closed the data file
before exiting File/Close Company)
• To open a different file, select the File
menu and then select Open Company
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CHAPTER 1: Introducing QuickBooks
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Close QuickBooks Data Files
• Select Close Company from the File
menu
• Close the QuickBooks program by clicking
the close button at the upper right hand
corner of the QuickBooks window or select
Exit from the File menu
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CHAPTER 1: Introducing QuickBooks
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Restoring Backup Files
• Main reasons for restoring backup files in
QuickBooks to recover damaged or lost
data files
• Restoring does not add information to your
file
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CHAPTER 1: Introducing QuickBooks
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Steps to Restore a Backup File
• Launch the QuickBooks program
• Select the File menu and then select Restore
• Restore From: Set the filename and location
fields of your backup disk and backup file name
(.QBB file)
• Restore To: Set the filename and location fields
to where you want to store your file (.QBW file)
• Click Restore
• QuickBooks will then restore your backup file to
a “.QBW” file in the directory you specified
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CHAPTER 1: Introducing QuickBooks
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Backing up Data Files
• To create a backup, select the File Menu
and then choose Backup
• Creates a smaller version of the data file
with the file extension “.QBB”
• Most important safeguard for safety of
your data file
• Create and open Portable Company files
is similar to backing up Data files
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CHAPTER 1: Introducing QuickBooks
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Entering Transactions in
QuickBooks
• Forms – Fill out familiar looking forms
• Lists – Store information that will be used
over and over again
• Accounts – Tracks all business
transactions
• Registers – Allow transactions to be
viewed and edited
• Items – Used to track detail behind
transactions
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CHAPTER 1: Introducing QuickBooks
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QuickBooks User Interface
Features
• There are various methods for entering
information and transactions:
– Home Page
– Menus
– Navigation Bar
– Icon Bar
– Shortcut Keys
– Opening Previous Company
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CHAPTER 1: Introducing QuickBooks
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Home Page
Icon Bar
Menus
Navigator
Bar
Home Page
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CHAPTER 1: Introducing QuickBooks
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Home Page
• The Home Page displays when a file is opened.
• Common tasks are shown as icons.
• The Home Page is divided into five regions
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Customers
Vendors
Employees
Company
Banking
• Account Balances are displayed on the right
side.
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CHAPTER 1: Introducing QuickBooks
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Menus
• Menus run along the top of the screen
• To open a menu, select the menu name
and then choose the option desired
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CHAPTER 1: Introducing QuickBooks
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Navigation Bar
• The Navigation Bar is made up of four
Center icons:
– Customer Center
– Vendor Center
– Employee Center
– Report Center
• Centers display detailed information
• The Centers can also be accessed from
the Home Page
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CHAPTER 1: Introducing QuickBooks
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Icon Bar
• Allows you to select activities and lists by
clicking icons on the bar
• The contents or position of the icons on
the Icon Bar can be modified by selecting
the View menu, and then choosing
Customize Icon Bar
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CHAPTER 1: Introducing QuickBooks
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Shortcut Keys
• You may use your mouse or the keyboard
shortcut keys to select the menu options
• To use the keyboard, press the ALT key
then press the underlined letter of the
desired menu item
• Some of the menu items have control-key
shortcuts
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CHAPTER 1: Introducing QuickBooks
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Open Previous Company
• You can open a previous company file by
selecting it from the Open Previous
Company submenu of the File menu
• QuickBooks lists the last few companies
you have most recently accessed, allowing
you to open any one of them
• You can set the number of previous
companies on the list from 1 to 20
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CHAPTER 1: Introducing QuickBooks
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Support Resources
• QuickBooks provides a variety of support
resources that assist in using the program
• Some of these resources are on the
Internet and others are in help files on disk
• To access the support resources, select
the Help menu and then select Help &
Support
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CHAPTER 1: Introducing QuickBooks
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Context-Sensitive Help
• You can access onscreen Help by clicking
the How Do I button on any screen, or by
pressing the F1 key
• Depending on what you are doing at the
time, you’ll get advice from the Help
system that is relevant to what you’re
doing
• This is known as Context-Sensitive Help
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CHAPTER 1: Introducing QuickBooks
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QuickBooks Learning Center &
Professional Advisors
• The Learning Center provides interactive
tutorials to help users learn how to use
QuickBooks in common business scenarios.
• QuickBooks Professional Advisors are
independent consultants, accountants,
bookkeepers, and educators who are proficient
in QuickBooks and who can offer guidance to
small businesses in various areas of business
accounting. To find a ProAdvisor in your area
use the following URL:
http://www.quickbooks.com/findadvisor.
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CHAPTER 1: Introducing QuickBooks
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Summary of Key Points
• An overview of the QuickBooks product line
• Some of the basic principles of accounting
• The accounting behind the scenes in
QuickBooks
• An overview of QuickBooks data files and types
• How to restore backup files
• Entering Transactions in QuickBooks
• QuickBooks user interface features
• About QuickBooks help and support
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CHAPTER 1: Introducing QuickBooks
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