Lesson 1: Introducing QuickBooks Pro

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Lesson Objectives

� After studying this lesson, you will be able to:

� Discuss basic accounting concepts

� Determine if QuickBooks is right for your business

� Manage basic QuickBooks files

� Open a portable company file

� Work with the QuickBooks window

� Back up a company file

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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.

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

In “Behind the Scenes,” you will see the accounting that QuickBooks performs for you when you record a transaction.

Debits are on the left side of the T account, whereas credits are on the right.

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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 IncomeStatement

� 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

Account Type Description

Assets Items/funds owned or owed to a company

Liabilities Funds owed to a company

EquityInvestments into the company and net income or

losses

Income Sales and fees earned

Expenses Expenditures that a company accrues

The Trial BalanceReport� 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?

� 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”?

� Do I have to complete the

lessons in the order

presented in the book?

� 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

� Date range will be fixed for each one

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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!

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Portable Company File

Backup File

Company File

Transaction Log File

Network Data File

The QuickBooks Window

Home Page (notice the workflow diagram)

Title Bar

Menu Bar

Icon Bar

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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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