Lesson 1: Introducing
QuickBooks Pro
Lesson Objectives
After studying this lesson, you will be able to:
Discuss
basic accounting concepts
Determine
Manage
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if QuickBooks is right for your business
basic QuickBooks files
Open
a portable company file
Work
with the QuickBooks window
Back
up a company file
What Can QuickBooks Do For You?
Track customers, vendors, employees, etc.
Process sales transactions and cash receipts
Process purchase transactions and payments to vendors
Run payroll
Track and sell inventory
Track assets (what you own) and liabilities (what you owe)
Keep track of bank accounts
Can you think of any other uses for QuickBooks?
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Types of Tasks
Those that affect the accounting behind the scenes
Company
setup
Activities
Those that do not affect the accounting behind the
scenes
Lists
(databases)
Reports
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Debits and Credits:
The Double-Entry Accounting System
Debits must always equal credits!
Left
side (debits) must always equal right side (credits)
when entering accounting transactions
Tip! This is why the system is
referred to as double-entry.
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The Generally Accepted Accounting
Principles (GAAP)
Rules used to prepare, present, and report financial
statements
Created by the FASB (Financial Accounting
Standards Board)
Consists of eleven basic principles
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Understanding Basic Accounting
Introducing Behind the Scenes
Debits are
on the left
side of the T
account,
whereas
credits are
on the right.
In “Behind the Scenes,” you will see the accounting that
QuickBooks performs for you when you record a transaction.
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The Accounting Equation
Assets = Liabilities + Equity
Balance sheet
Financial
statement that displays all asset, liability, and
equity accounts (collectively called the balance sheet
accounts)
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The Balance Sheet
Notice that the Total Assets =
Total Liabilities & Equity
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The Income
Statement
Accounts found on the
Income Statement (a.k.a.
Profit & Loss report) are the
income and expense
accounts
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Main Account Types
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Account Type
Description
Assets
Items/funds owned or owed to a company
Liabilities
Funds owed to a company
Equity
Investments into the company and net income or
losses
Income
Sales and fees earned
Expenses
Expenditures that a company accrues
The Trial Balance
Report
Prepared at the end of an
accounting cycle
Shows
all accounts
affected during the
cycle
Balance of each account is
entered in the appropriate
column based on its normal
balance
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How to Use This Book & Student Files
Why is there a different
company files for each
exercise?
Do I have to complete the
lessons in the order
presented in the book?
What if I want to use one
file that continues from
lesson to lesson?
Is this how I will work in
QuickBooks in “real life”?
Why do portable company
files take so long to
restore? What to do while
waiting?
How do I “print to PDF”?
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Introducing the Case Studies
Allows you to practice skills in real life scenarios
Salon
and Spa
Café
Veterinarian
Contractor
Not-for-Profit
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Date range will be fixed for each one
Managing QuickBooks Files
Launching the program
Storing your exercise files
Ask
your instructor about your file storage location or
see the book’s website
Opening and Restoring QuickBooks files
Decompresses
a backed-up QuickBooks file
so you can use it again
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Types of QuickBooks Files
Note the difference in the size of company, backup
and portable company files!
Backup File
Company File
Network
Data File
Portable
Company File
Transaction
Log File
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The QuickBooks Window
Title Bar
Menu Bar
Icon Bar
Home Page
(notice the
workflow
diagram)
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Controlling the QuickBooks Desktop
Change whether the Open Window List or Icon Bar
appears in the QuickBooks window
View options accessed
via the Menu Bar
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Backing Up Your Data
Extremely important to avoid data loss!
Back up to a different location than where you store
your “master” company file
Backing up your QuickBooks files
Process
of compressing data files, similar to using a
Space Bag and a vacuum!
Online options are available
Tip! QuickBooks compresses all data stored in a company
file during a back up. That’s why backup files are so small!
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