 QuickBooks Online 2024. Other forms. Get ready because we're going to Bookkeeping Cloud 9 with QuickBooks Online. Here we are online in our browser searching for QuickBooks Online Test Drive looking for the result that has Intuit.com and the URL Intuit being the owner of QuickBooks selecting the United States version of the software and verifying that we're not a robot. Opening up our major financial statement reports like we do every time reports on the left hand side we're in the favorites right clicking on the balance sheet open link in new tab right clicking the profit and loss open link in the new tab. Let's take a look at those tabs up top. We're going to close the hamburger on this middle tab. There's our balance sheet tab into the right closing the hamburger. There's our profit loss otherwise known as the income statement. Let's go to the first tab. That's the setup process that we do every time we're going to do our data input here in the first tab. Look at the results on the end result financial statements on the tabs to the right. Selecting the drop down and prior presentations we've been thinking about our cycles. We looked at the full accounting cycle we want to keep in mind and then we're looking at the cycles within the cycles. We started with the vendor cycle vendors for purposes of QuickBooks being a specific term on one side of the table being that we're sending money out at the end of the cycle generally in order to be purchasing goods and services. We also looked at the customer cycle where from a QuickBooks perspective that means that the customers are going to be paying us money ultimately coming in from the cycle for goods and services that we provide. Remembering though that the term customer and vendor could also be applied to us. So we are our vendors customers and we are vendors to our customers. But we want to keep the term straight in terms of what it means for QuickBooks. First a word from our sponsor. 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If you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com as well as have the more expanded term so we can understand what's going on from each side of the table when we're not when we're talking to people that aren't using QuickBooks terminology. And then we talked we were going to look later we also have the employee cycle the employee cycle is an issue or in and of itself a specialty in and of itself because there's a lot of laws that go related to the employee cycle and there's often going to be taxes payroll taxes that we have to deal with with the employee cycle. So we'll touch on the employee cycle but remember the employee cycle could take a whole course in and of itself and there's the question as to whether we're going to be doing the payroll within the QuickBooks system or whether we do the payroll with a third party provider in which case the question is how will we then get that information into the financial statements for financial reporting. So we'll touch on that stuff in future presentations but the bottom line is the employee cycle similar to the vendor cycle. It would be as easy as the vendor cycle just a part of the vendor cycle if it wasn't for all the rules regulations and taxes with the employee cycle. In other words where money is going out at the end of the day for the purchase of services of the employees. Now let's take a look at this other one over here. Now what is going on over here is this a cycle not really right. These are forms that didn't really fit in these other cycles. So remember the general idea here is the stuff that we do on a day to day basis. We want to do with the use of a form because the forms are designed to help us track the activity both in terms of recording it to the financial statement and in terms of being able to track by customer by vendor and by employee in our centers over here. The sales center or customer center expenses center or vendor center and the payroll center or the employee center. So we want to make sure that we're using these forms whenever possible. The plus button is where QuickBooks houses the forms that are used on a day to day basis or at least are used periodically are used often and repeatedly. So any transaction that is cyclical that happens all the time you would expect there to be some kind of form that has been set up for it. So the data input can be easier and we can track it in the related centers. Any transaction or transactions that are or types of things within QuickBooks that are designed for the initial setup process. You'll recall was in the cog up top and under the lists primarily. This is where you have a lot of the underlying foundational things that have to be set up before you do the normal kind of accounting processes. I'm going to go back to the dashboard. So then the question is will these others over here must then be things that possibly happen periodically. They happen quite often on a cyclical basis possibly but didn't quite fit in any of the cycles customers vendor or employee cycle. So these are the odd ones out that we use all the time but don't really fit in any particular cycle. I'll talk about them just briefly here and then we'll go into some of them in more detail in future presentations. First we have the bank deposit. Now we already talked about the bank deposit and we said that we talked about it within the customer cycle which is where it fits most easily because most of the time deposits or increases to our checking account should be the ultimate thing that happens at the end of the customer cycle. Whether we have a cash based system or whether it's an accrual based system you should end off with a deposit. But I believe they put it over here possibly in part because that's where it was always way back from the desktop version and so on. But you could also get deposits from people other than the customers. So what other deposits might you get then from customers? You might have a deposit from you the owner which would typically happen when you're creating a new business or when you're expanding the business in which case you want to make sure you don't record it as income and you might have a deposit that comes from a loan. That's the other way you might finance the business in which case you don't want to record it to income. You want to make sure that you record it to a liability account. So we talked about that in the past. Then we have a transfer form. So the transfer form is a little bit tricky to understand. We'll talk about it more later and we'll also dive into it possibly when we get into the bank feed. So the reason it's a little bit tricky is because when we think of a transfer we're thinking about a transfer between two financial related accounts. It's like bank accounts but it could also be credit card accounts. So in other words if you're going from your checking account to your savings account then you would typically use a transfer form. So why isn't that straightforward? Well if you think about it you could use an expense form or a check form because if it's coming out of your checking account and going into the savings account I can record an expense form in the checking account and then just make it go into the savings account or a check form. Why don't I do that? Why do I need a transfer form then? Well if you did it that way then it would look fine on the checking account side but on the other side of the transaction in the savings account you would have an expense type form which is actually increasing an account. So that would look funny right? So if I went over here and I went into my savings account and I saw that it wasn't a deposit but a check form that was increasing my savings account that would look weird because I would think that in the checking accounts expense form should be decreasing my checking account right? So it would look fine in the checking account but it would look funny on the savings account side or you could say well I could use a deposit form I could go into my savings account and use a deposit form Well what would happen if I did that then that would look good on the savings account side because it would look like a deposit but if I look at the detail in the checking account side then I would have a deposit form that would be a negative which would be funny looking So that's why the transfer form is a form that could be an increase or a decrease and doesn't look really funny on either side So we'll talk more about that in the future and then we've got the journal entry If you're an accountant that learned accounting in a school system before jumping into QuickBooks software or any kind of accounting software you might have a tendency to want to think of everything in journal entries format meaning debits and credit format You have to resist that In that you have to make sure that you apply your journal entry knowledge to each of the forms You need to know what each of the forms are doing from a journal entry perspective That will help you If you try to just go straight to the journal entry without using the forms that's going to cause you a problem because you're not going to be properly tracking the flow from a bookkeeping perspective through the centers, the customer vendor and employee centers So therefore what's the general process You want to ask if a transaction has a form related to it if it does use the form to record the transaction which will record a debit and a credit which is in essence a journal entry If there's not a form to record a transaction to then I would ask is the checking account affected because if the checking account is affected then you might be able to record it with a deposit form or a check form or to the check register which again would be using a form If cash is affected you would think you could probably use a form If there's no form that's being used and cash isn't affected then and only then would you use a journal entry and you might have a transaction like you purchase equipment for example but you financed it, you didn't pay any cash you financed the purchase of the equipment In that case that's not a normal transaction You don't buy equipment all the time and you didn't hit cash with it so you might have to record that with a journal entry Journal entries are also used at the end of the period with adjusting entries and we'll take a look at that possibly in a future section or course in the adjusting entry process they're used deliberately there as a journal entry so that we can differentiate the fact that these are adjusting entries which are in the form of journal entries as opposed to the normal accounting process which is generally constructed with the use of one of the forms the statements statements are going to be things that we can provide generally if you have a full accrual accounting system so you have invoices that you're sending out and then you're tracking the accounts receivable so if they haven't paid you on the invoices then you can send out the invoice again but they might have multiple invoices that need to be sent out or you might want to periodically send out reminders kind of on an automatic basis these statements help us to create statements that can be sent out to customers to try to collect on our inventory so it's not really recording any transaction but it's something that we do on a periodic basis and therefore that's why it's kind of in this plus button here inventory quantity adjustment so this would only be in play if you're tracking inventory on a perpetual inventory system within QuickBooks so whenever we talk about inventory the question is do I want to track inventory in QuickBooks on a perpetual inventory method or somewhere else possibly tracking it in the Shopify store or Amazon or on an Excel worksheet and therefore use a periodic system possibly for QuickBooks if you're using a full perpetual system then then you might have to do you'll still want to do a physical count of the inventory and you might have shrinkage or stolen goods or something you have some punk kids and keep on stealing your inventory or something and you have to then write it down for the fact that it's been stolen or it's been spoiled or whatever they did they threw your inventory at your door and splatted it so now it's been splatted on your door for whatever reason that was for any case so then you have to pay down the credit card now the pay down the credit card is similar to the transfer form so in that case we have two bank-to-bank fee transactions but instead of a bank it's another financial type thing that's connected to the bank the credit card which is a liability so the credit card then will have a similar issue with the transfer we could when we pay off the credit card pay it with an expense form out of the checking account right but it might look better if we use the pay down with the credit card or we could use a transfer form possibly to pay it down as well so we'll talk about that a little bit more later although I think a lot of people still use the expense form to pay down the credit card because that's like a normal thing to do but the pay down with the credit card will give you another form to look on it and you can see the same thing over here the same problem like if I go into the credit card over here we can see that we might use the expense form to actually record the charges and then when I pay down the credit card it's going to show an expense form to pay down the charge which isn't exactly what we typically want we would like to have it be another form to pay down so that it would be something different so that we can sort by something different to pay down the credit card form so we'll go through some of these in more detail and future presentations