 QuickBooks Desktop 2023 Lists. Let's do it with Intuit's QuickBooks Desktop 2023. Here we are in QuickBooks Desktop sample raw castle construction practice file provided by QuickBooks going through the setup process we do every time maximizing the home page to the gray area. View drop down. We've got the hide icon bar and open windows list check on the left hand side you see the open windows reports drop down company and financial P&L profit and loss income statement 010124 3124 on the range January through December customize the report with the fonts and numbers changing it to 12 okay yeah okay and then going to the reports drop down company and financial this time the big balance sheet with the date change 12 3124 customize in that report fonts and numbers changing it to 12 okay yeah okay that's the setup process we do every time we're going back to the the home page in the open windows we're now going to be thinking about lists noting that the term lists has some meanings within QuickBooks that are different even than accounting terminology it haven't been gotten in part due to the fact that these items were housed under the drop down of lists so when you hear bookkeepers using QuickBooks use the terminology lists they might have some very specific meaning for the items that are under the lists category note that even if you use the QuickBooks online software that doesn't have the drop down up top they still use some categories often time of lists so the major two things under the lists category are going to be the chart of accounts and the items list these are going to be very important items and most of these items are things including the chart of accounts and items are going to be things that we have to set down for the baseline to underlie the normal data input within to the system which is usually done as we've seen before with the forms the bills the pay bills the invoices and so on so once again the major two and you can tell they're the major two because they're in the homepage they were important enough for QuickBooks to put them in the company section are the chart of accounts and the items and services we'll talk more about them in depth in and of themselves because they're so foundational but note that the chart of accounts is the actual accounts that have to be you know used whenever we enter a financial statement transaction remembering that the end result of bookkeeping is us recording actual financial transactions that are happening throughout history throughout time through time and those then are going to be used to generate the balance sheet and the income statement when we see the balance sheet and the income statement they are constructed from accounts they're constructed from the chart of accounts so in order to enter any transaction which actually has an impact on the financial statements we need a chart of accounts to do so so it's foundational and then the other one is going to be the items and services and the primary items and services are usually going to be those that we do to generate revenue so if using the invoices and sales receipts we will have to have the the services in there even if we don't have inventory and we're billing people we'd still like to group the services usually unless we have a very easy system where we're basically possibly doing gig work or something we're getting paid by a platform and we're not even using these forms in that case possibly we're just waiting till something clears the bank and then recording the deposit from a particular vendor through the bank fees so i'm going to go to these items with the list drop down the chart of accounts is going to be the first one if we go into the chart of accounts you can see it's a list of accounts they're going to be ordered primarily by type meaning the types and we'll go into this in more detail in a future presentation but basically are the balance sheet and then the income statement asset types liability types equity types and then income and expense type of accounts generally these accounts are going to be used every time we enter a form you really want to understand that because that'll give you some idea of what's actually happening in the end result balance sheet and income statement whenever you do a data input form like a bill a check an invoice a sales receipt and you want to have a kind of an understanding of that so you can you can fix any problems if any problems occur so crucial list we'll get back into that in future presentations and then the next crucial list is the item list so most of these items you can see other service items and the inventory items and those are going to be critical whenever if i go back to the home page we create an invoice then we'd like to make the data input as easy as possible by then having the items set up a service item or inventory item which will pull over the the amount here this one's a little bit different because we have these job cause system but in any case it'll pull over the detail related to the item as we enter it into the system which is quite useful and then the item is going to tell the system which accounts are going to be impacted which means of course we need a chart of accounts in order to do that so if i close this back out and i say no and i go to the items list notice that if i was to double click on an item you can see here that it's charging the cost of goods sold here account and then the income account those accounts are going to be needed to be set up in the chart of accounts before we can set up the items we'll go through this full setup process in the second half of the course those are the major items that would be set up but we also saw some other items which could be the sales tax items helping us to process the sales tax so when we set up sales tax we've got to add the items in order for the sales tax to be properly working as well now let's go back up to the lists up top and we got the fixed asset item list the fixed assets represent things that we're purchasing that are usually large property plant and equipment you might call it depreciable assets you could call it so that's going to be things like you know building equipment and so on and so forth that you're going to depreciate over time now note that it's you could use this to kind of back up and support the the items that you're recording into the system but also note that you're going to usually be dependent to some degree on an outside software possibly tax software to help you to track the property plants and equipment let me try to explain what i mean if i go to the balance sheet over here and we go down to the fixed assets these are the fixed assets now even if you're on a cash based system you're going to have to put the large purchases on the books even if you paid cash for it as an asset and depreciate it which kind of makes sense because if you wrote off a large purchase it would kind of distort your comparison of one period to another on the income statement which is kind of a point but you need to do it at least for taxes even small businesses are going to be required to do it to some degree for taxes the issue is then that when you do the taxes there's a different depreciation schedule that may be used than a book depreciation schedule so you're going to have to do depreciation in accordance with the tax law which means you're going to have to enter the depreciation into tax software so oftentimes for small to mid companies mid-sized companies you might as well kind of use the tax software to help you to calculate the depreciation and you can you can kind of then so what you need to provide to the to the to the tax preparer to help you out to do that is usually going to be the increases to the depreciation or to the fixed assets and the decreases the disposals the purchases and the disposals and there's different ways that you could track basically the purchases and and the disposals so note that you might be thinking that this fixed asset items list is going to be a detailed list that's going to help you to calculate all the detail for the depreciation accumulated depreciation and so on but that's probably not what you're going to want to do in a bookkeeping system because you're going to have to repeat that again in the tax software because you're going to have to tax software do it on a tax basis we on the bookkeeping side may try to do our books on a tax basis well so we don't have two different bases or we might try to have our book basis which might be more reasonable than a tax basis which is really weird and then we have the tax basis as well but even if we do that the tax software that's going to be used will usually be able to calculate both book and tax depreciation and therefore it's often useful to periodically put that into the tax software and then enter adjusting entries periodically for depreciation we'll talk more about that basically in the future but so so just so we'll we'll get into the depreciation a bit in the future but that's a general idea we got the price level lists so you can set different price level lists and then you can apply these lists to like customers that can be applied out when they're purchasing things so if you go to the customer item for example and I go to the customer center and I was to go into a particular customer then we have the price level which is on the payments tab and then you've got your options for your price level lists that you can apply out so then when you select that customer when you're when you're selecting the invoice that can take place at that time so then we've got this sales tax codes so sales tax codes so when we're processing sales tax remember that's on the when we go to the home page and we create an invoice for example we might have the sales tax that's going to be applied and when we set up the items we have to tell it whether it's subject to sales tax or not and so that'll be with the sales tax code typically and then if we go down we've got the payroll item list so when we set up payroll these are going to be the underlying items that will help us to process payroll so are they a salaried employee we've got the sick stuff the bonus all these items are going to be used in order for us to to easily populate or process payroll setting up all these items can be kind of complex because the payroll process can be kind of complex we have a whole course on you know setting up payroll we'll talk a little bit more about payroll in the future presentation but but it's it's large enough of a topic to be its own kind of world of stuff and then so we got the payroll items payroll schedule list so we pay people usually you only have one thing here because usually you pay people by weekly and that's it or semi monthly and that's it or monthly and that's it but you could have multiple payroll schedules you pay some people monthly and some people by weekly or whatever but there's that class list the class are going to be a special kind of term or use they're turned on here because they got castle it's a it's a construction company we've got some courses that get into classes in and of themselves there's various uses that you might use classes for but we won't spend we won't be focusing mainly on that workers comp so workers comp lists which is going to be specific to a particular company for the workers comp needs kind of connects to payroll and then we've got the other names list noting that in QuickBooks we typically have vendors we have customers and then you might set up you know some other things as like other names so then we've got we've got the workers comp other names and the customers and vendors the sales rep so if you have sales reps then you can have that would be a special area for those types of companies customer type so we could set up basically different customer types which is again you can apply into the customer area which might give you some more sorting capacity in some reports with regards to the customers we've got the vendor type same kind of situation on the vendor such side of things so you could set up different types for the customers and vendors we've got the job type so this would be because we have the job cost system here so they got the different types of jobs and then we've got other lists here job types terms lists so when we set up our our invoices for example we might have the terms so when we enter the invoice when do we expect to be paid net 30 and 30 days and 15 days we might have some discount kind of components that are going to be in there too some more complex terms that can be put in place and just so you could see that if I went to the if I went to the customers and create an invoice so the terms are here's going to be a term item that's where those lists are populated and so let's go to the lists we've got items customer message list so we can put some default messages that we can pull in when we're doing some communications with the customers that can make things a little bit more streamlined and faster in some cases and then you got the payment methods so you got the different methods of payment when we're populating our data input you can see we have the you know the check is usually the cash the check the american express discover and so on different forms of payment which can give us some more detail when we're trying to drill back down onto a transaction and see what precisely happened within it and then we've got the ship listing so this is the shipping lists and then we've got the vehicle lists okay and then we've got the templates so we could set up different templates to customize our invoices any kind of thing that we're giving to the customer there's a default form for it which is sufficient generally for the data input but we might we might want to customize that in order to try to try to make it nicer to present to the customer put our logo on it and that kind of stuff and there might be some fields that we want to basically add to the form from a data input side of things as well so we can create templates for that and then we've got the memorized transactions so we might have some transactions that we're going to that we want to set up as a memorized transaction and so we can get to them more easily so we've got that list notice that this is one of those types of things that you might put in your favorites tab or something if you use a lot of the memorized transactions so you can get there easily so edit add edit multiple list entries so this is when what we're going to use when we want to enter multiple items at one time we'll talk about that more when we create a new company file and we enter multiple things so those are the major the major lists company homepage so bottom line with the lists the main two are going to be the chart of accounts and the item lists those are the main two lists they're the foundational things typically they're not stuff that you're going to go into all the time during your data input typically they're the things that you have to set up that are going to be the underlying foundations used when you do the data input such as the bills the pay bills and so on for that reason they can be a little bit more complex and a lot of people don't understand them as much because they haven't worked with them because usually they're already set up when they start working with a company and they start entering the data input into the system but if you understand the foundational stuff chart of accounts and items especially then you'll have a lot better understanding of what's happening when you enter the forums and you'll be able to kind of diagnose problems much more easily that's a lot of times where the value comes in