 QuickBooks Online 2023. Transaction correction. Get ready to start moving on up with QuickBooks Online. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have open the support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. QuickBooks Online sample company if you want them both open at the same time we suggest using the incognito window or another browser which you can open if using Google Chrome by selecting the three dots in the browser incognito window typing into the search engine QuickBooks online test drive. We're going to be using the sample company to compare and contrast the accountant view the view that QuickBooks Get Great Guitars company is in and the business view the view the sample company is in. You can toggle back and forth between the two views by going to the cog up top and switching the view on down below. Opening a few tabs as we do every time to put reports in duplicating the tab by right clicking on it and duplicating the tab right clicking the tab again to duplicate it again and then we're going to go back to the tab to the left reports on the left hand side and open up the balance sheet report. If you're in the other view by the way this being the business view then it would be in there where was I business overview and then reports that's where it's located in the business view and then we're going to go to the tab to the right let's go back to the reports on the left open up the profit and loss or income statement even though there's nothing in it and we're going to close it up the hamburger range change from 0101 23 tab 1231 23 tab run it to refresh it tab to the middle close the boogie scroll up to the top changes the range in 0101 23 tab 1231 23 tab run it to refresh it that's the setup process we do every time so now we're going to think about adjusting our transactions now quick books has quite a large capacity for going in and making adjustments to possible data input errors that you might have entered but just realize you got to be quite careful with the adjustments it's it's very useful in a practice problem and it's useful when you're entering data in real time but realize especially when you're trying to look at things that happened in a prior period you want to be very careful for for adjusting them because you have already closed out the prior period and so you want to make the adjusting entries in the current period as opposed to changing the prior period in other words for example let's say that you're you're a schedule C type of business you you basically then use your profit and loss report in order to generate your tax return at the end of last year let's say 2022 you gave your your your profit and loss to your accountant they made your tax return from it and so on and so forth and then this year 2023 you determined that there's a problem in some transaction that happened in the prior period oftentimes that happens when there's an outstanding check that never cleared or you're looking at the accounts receivable and there's outstanding transactions and whatnot in accounts receivable that are in error and you need to remove them because you're never going to get paid on them or something like that or an accounts payable that's outstanding so they happen when you do the bank reconciliation or when you're looking at some of these reports related to accounts receivable accounts payable oftentimes then the issue is okay I know I got to get rid of that but you need to be careful doing that because if you get rid of say a check and the check had an impact on the profit and loss in the prior year it's going to reverse it as of the prior year and the way and that means that in theory you think you would think you'd have to amend your tax return or something to fix your taxes that's not what you want to do if you already took the deduction if you already filed the tax return we don't want to go backwards in time we want to enter it in such a way that the current period is going to be adjusted for it we want to reverse it in the current period so we did a presentation demonstrating this with with a avoided check which is a common kind of example of that problem so that's one thing to just be aware of also note that you can lock the reports are in the preferences up top so if you go to the cog up top you go to the account and settings and then you go to the advanced and then you go to the accounting up top and this is where you've got your option to close the book so after you filed your tax return or something like that you might want to like toggle this on and when you're making adjustments or deleting something to try to fix something it'll give you at least a warning to say hey don't fix this because you closed out the prior year or at least when you do fix it you want to think it through on how you're going to adjust it so so that's something to keep in mind i'm going to close this back out and then also just realize that when we do do adjustments usually from an accounting's perspective we would like to make an adjustment by not deleting what happened in the past but rather by adding another journal entry because that gives you an audit trail of the original error and if you go back in and and and you mess something up when you deleted it you can at least see the trail of this is what i did this is why i corrected it and you can have a story that's that's happening but sometimes it's just easiest to delete it or actually change the transaction so for example we had a data input error here that we're going to be adjusting for with regards to the furniture and equipment so if i go into the furniture and equipment then this transaction i wanted to enter it for 16 000 and it was entered for 18 000 so if i was to enter like a electronic transfer that's unlikely to happen with an electronic transfer that came through the bank feeds if i was to construct it with the bank feeds right but if for example i was entering a check and i was handwriting the check and entering the check separately on my side then it's possible that i do the data input here differently than the check that i wrote which would come to light when i try to do say a bank reconciliation and so then most likely the easiest thing to do would be just to go into this transaction and and change the dollar amount in the transaction so i can go in here quick books is quite forgiving and this kind of thing and i could go in and say okay i'm going to change this to 16 000 and then that's what i would have to do if i was doing a bank reconciliation i would have to change that in order for the bank reconciliation to work because that's the amount that i would imagine in that case cleared the bank we'll talk more about this when we get to the bank reconciliation course or section and then i could just and and also the other common error that you'll have especially with a practice problem or anytime you're not entering data at the same point meaning sometimes you you enter your transactions real time as they happen and sometimes you might uh enter transactions periodically or possibly like at the end of the year you're entering a full years of transactions like from the bank statements or something like that in that case oftentimes you're going to have eight date issues because you're going to enter stuff on the wrong date right so because it's not real time otherwise if you're entering it real time that happens less often because the date automatically populates to the current date so if that's the case then as you're doing the data input when you see those date issues as you're working through the practice problem this is how you can kind of drill back down on the form make the change so we'll save it and close it so if we've run into any problems during our data input there's the change we will do the same thing and just i just want to point out at the outset that if we make a mistake like that it just looks like a mistake it's not really a mistake it's we did it on purpose because we're that's a demonstration uh just tool that we use quite often so in any case there's the change so now we're at the the 98 thousand here let's open up the trial balance so we're going to go to the tab to the right right click on it duplicate it and then we'll go down to the reports on the left hand side the reports close up the boogie and trusty trial balance testing out the trial balance and let's change the range from 010123 to 123123 run it to refresh it this is where we stand right there there's our two legs the left legs the debit the right legs the credit and we're standing on them so let me so if you if your numbers tie out to these numbers then good if not then try to change the range maybe you have an issue similar to the like mistake example that we use for teaching purposes and then you can go you could drill down on it and uh and make the change