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Company File Setup2014


Topics•Choosing a Start Date – Step 1•Creating the Company File – Step 2 • Setting Up the Chart of Accounts and Other Lists – Step 3• Setting Up Opening Balances – Step 4 • Entering Open Items – Step 5 • Entering Year-to-Date Income and Expenses – Step 6•Adjusting Opening Balance for Sales Tax Payable – Step 7


Topics (cont.)

•Adjusting Inventory and Setting up Fixed Assets – Step 8 • Setup Payroll and YTD Payroll Information – Step 9 •Verifying your Trial Balance – Step 10 •Closing Opening Bal Equity – Step 11 • Setting the Closing Date - Backing up the File – Step 12 •Users and Passwords


12-Step Process

1. Start Date2. Create company file3. Chart of Accounts and lists4. Opening Balances5. Enter outstanding transactions 6. Year-To-Date Income and Expenses (if necessary)


12-Step Process (cont.)

7. Sales Tax Payable8. Inventory9. Payroll Lists and Year-To-Date Payroll information10. Verify Trial Balance 11. Close Opening Balance Equity 12. Back up your file


Choosing a Start Date: Step 1

• Best start dates:– Calendar-Year Basis• December 31

– Fiscal Year basis• Last day of fiscal year

– For a new company• First day of the business


Creating the File: Step 2

• Express Start• Detailed Start


Setting Up the Chart of Accounts: Step 3

• To set up the Chart of Accounts, we will cover the following:– Account Types – Activating Account Numbers – Adding Accounts – Adding Subaccounts – Removing Accounts from the Chart of Accounts – Reordering the Account List


Account Types

• Assets:–Bank–Accounts Receivable–Other Current Asset–Fixed Asset–Other Asset

• Liabilities:–Accounts Payable–Credit Card–Loan–Other Current Liability–Long Term Liability

• Equity

• Income:– Income–Other Income

• Expenses:–Expense–Other Expense–Cost of Goods Sold


Activating Account Numbers


Adding Accounts


Adding Subaccounts


Removing Accounts from the Chart of Accounts

• Deleting Accounts - Option 1 • Deactivating Accounts - Option 2 • Merging Accounts - Option 3


Deleting Accounts – Option 1


Deactivating Accounts – Option 2


Merging Accounts – Option 3

• Select the account you wish to change• Rename the account

to the account you wish to keep


Reordering the Account List

Sorted by name without account numbers


Setting Up Opening Balances: Step 4

• Gathering Your Information• Entering the Opening Balances• Understanding Opening Balance Equity


Gathering Your Information• Trial Balance for your start date• Bank Statements (all accounts)• Outstanding Checks and Deposits• Open Invoices• Unpaid Bills• Employee List and W-4 Information• Payroll Liabilities by Item• Year-to-Date Payroll Detail by Employee• Year-to-Date Payroll Tax Deposits• Physical Inventory by Inventory Part


Entering the Opening Balances: Step 4 (cont.)

• Two Methods–Directly Editing the Account

–Using a General Journal Entry to Record Opening Balances


Directly Editing the Account


Using a General Journal Entry


Understanding Opening Balance Equity

• As the opening balances for assets and liabilities are entered, QuickBooks automatically adds offsetting amounts in the Opening Bal Equity account

• Opening Bal Equity will be “closed” into Retained Earnings (or Owner’s Equity).


Entering Open Items: Step 5

• Outstanding Checks and Deposits • Open Bills (Accounts Payable) • Open Invoices (Accounts Receivable) • Open Purchase Orders • Open Estimates and Sales Orders


Entering Year-to-Date Income and Expenses: Step 6

• General Journal Entry to enter your year-to-date income and expenses • Summarize the total income and expenses• Only for mid-year setup


Sales Tax Adjustment: Step 7• Total Tax Due = Collected Tax + Uncollected Tax

• Uncollected Tax = Tax on Open Invoices

• Collected Tax = TotalTaxDue – Uncollected Tax


Adjusting Inventory: Step 8


Setup Payroll Information: Step 9

• Setting up payroll in QuickBooks is a lengthy and involved process• See Payroll Setup Chapter


Verifying your Trial Balance: Step 10


Closing Opening Balance: Step 11


Setting the Closing Date and Backing up the File: Step 12

• Set the start date as the Closing Date to Protect your Setup Balances

• Backup your finished file


Setting Up Users in the Company File


Multi-User and Single-User Mode

• Multi-User Mode• Single-User Mode


Summary of Key Points

• Choosing a Start Date – Step 1• Creating the Company File – Step 2 • Setting Up the Chart of Accounts and Other Lists – Step 3• Setting Up Opening Balances – Step 4 • Entering Open Items – Step 5 • Entering Year-to-Date Income and Expenses – Step 6• Adjusting Opening Balance for Sales Tax Payable – Step 7


Summary of Key Points (cont.)

•Adjusting Inventory and Setting up Fixed Assets – Step 8 • Setup Payroll and YTD Payroll Information – Step 9 •Verifying your Trial Balance – Step 10 •Closing Opening Bal Equity – Step 11 • Setting the Closing Date - Backing up the File – Step 12 •Users and Passwords

company file setup

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