May 20, 2009 Living the Dream- Live E-Seminar / Conference Call Saving Time and Money With Good Bookkeeping Skills, QuickBooks Tutorial and More Hosts: Mat Sorensen, Attorney at Law Special Guests: Dustyn Johnson, CPA, NumberWon Accountants, LLC Elaine Madsen, Quickbooks Certified Trainer, Kohler & Eyre CPAs, LLP Telephone Facsimile © KKO Lawyers, LLP Telephone Facsimile © Kohler & Eyre CPAs, LLC Telephone Facsimile © NumberWon Accountants, LLC 2009

Outline QuickBooks Products QuickBooks Products Chart of Accounts Chart of Accounts Making it a Habit Making it a Habit Reconciling Reconciling Reports Reports

All the Accounting You Need to Know About the Chart of Accounts Chart of Accounts Chart of Accounts – The chart of accounts is a complete list of your business’ accounts and their balances. When you keep books for a company, you want to track: When you keep books for a company, you want to track: – Where your income comes from – Where you put it – What your expenses are – And what you use to pay them You track this flow of money through the chart of accounts. You track this flow of money through the chart of accounts.

All the Accounting You Need to Know About assets, liabilities, and equity Assets Assets – Includes what you have and what people owe you. Liabilities Liabilities – What your company owes to other people. Equity Equity – Equity is the difference between what you have and what you owe. – Equity = Assets – Liabilities

All the Accounting You Need to Know Cash vs. Accrual bookkeeping Cash basis Cash basis – Income is recorded when money from sales is received and expenses when bills are paid. Accrual basis Accrual basis – Income is recorded at the time of the sale and expenses when you receive the bill. Important: When you create reports in QuickBooks, you can switch between cash and accrual reports at any time, regardless of which bookkeeping method you have chosen for tax purposes.

Creating a New Company Use the EasyStep Interview to setup your company properly. This will walk you through setting up your company by asking you a series of questions about your company. By the selections you make, you will setup your chart of accounts and have your company ready to go.

QuickBooks and Your Industry QuickBooks can be customized to your particular industry. By telling QuickBooks what type of industry you are in, it makes suggestions of accounts and features that are typically used for your that industry. If you don’t find your specific type, just select the most similar.

Finishing the Interview and Completing the Company Setup As you go through the Easy Step Interview, you are asked many questions about your business and by answering these questions, QuickBooks will customize your company file for you. A preset list of income and expense accounts is created from the industry selection you made earlier in the interview. You can add to or delete from the recommended accounts by checking the box in front of the Account Name.

Learning how to use Additional Features of QuickBooks

Make it a Habit Routine Routine Don’t get behind Don’t get behind Familiarize Familiarize Take some time Take some time each week after you have input income and expense to look at different tools in QuickBooks.

Reconciling Bank Accounts To reconcile your bank account Select correct bank account Select correct bank account Enter current statement ending date Enter current statement ending date Match “Beginning Balance” with bank statement beginning balance. Match “Beginning Balance” with bank statement beginning balance. Enter the “Ending Balance” from bank statement Enter the “Ending Balance” from bank statement Enter services charges or interest earned from bank statement Enter services charges or interest earned from bank statement Click continue Click continue

Reconciling Bank Accounts In the “Checks and Payments” section, click to make a checkmark to clear each check and payment listed on your bank statement. In the “Checks and Payments” section, click to make a checkmark to clear each check and payment listed on your bank statement. In the “Deposits and Other Credits” section, repeat as above by selecting those transactions that have cleared your bank. In the “Deposits and Other Credits” section, repeat as above by selecting those transactions that have cleared your bank. Edit or add additional transactions as needed. Edit or add additional transactions as needed. After you have cleared each transaction, your difference to make the statement balance will be shown in the lower right hand corner. Once you have the “Difference” at zero. then select “Reconcile Now”. DO NOT SELECT “RECONCILE NOW” UNTIL THE DIFFERENCE IS ZERO. Go back and check each transaction above and match amounts to the statement until the reconciliation balances. If you have to finish later, select “Leave” and you can come back and try again when you are in a better mood.

Reports