 QuickBooks Online. Check form and expense form. Get ready to start moving on up with QuickBooks Online. 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 then 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. We're going to be using the free QuickBooks Online test drive which we'll find by searching in our search engine for QuickBooks Online test drive choosing the option that has Intuit.com in it into it being the owner of QuickBooks selecting the United States version and verifying that we're not a robot holding down control scrolling up a bit on the scroll wheel to zoom in currently at 125% zoom in noting if we hit the cog drop down I'm currently in the accounting view not the business view we could toggle back and forth between the two which will try to do a periodically as we go through the presentation we're going to open two more tabs or duplicate some tabs to put the reports in as we do every time right-click in the tab up top to duplicate it right-click in the duplicated tab again to duplicate it again going back to the middle tab and then reports on the left-hand side at least in the accounting view it's under that on the left-hand side and then we're going to go into the balance sheet and then as that is thinking I'll go to the right to the right tab reports again and this time the P&L the profit lost the income statement scrolling up adjusting the date range I'm going to do this manually by selecting the date range and typing as fast as possible a one or one two two two digit two digit two digit January 1st 2022 and then tab on the keyboard 1231 222 digit two digit two digit and then tab on the keyboard and then run the report to make sure it updates go to the tab to the left middle tab with a balance sheet is located selecting the date again from 010122 tab to 1231 222 tab and run that's the setup process we do every time going back to the first tab we now have the first tab here and then the two tabs to the right being our financial statements typically when working then I'll open up the information and enter the data input forms we need and check as I do the data input what happens to the financial statements so we've been working in the vendor side of things at the vendor cycle or expense cycle at the end of the cycle we expect money to be going out for goods and services that we are purchasing last time we talked about the accrual process us first entering a bill and then paying off the bill with a pay bill form which is in essence a type of check or expense form now we're going to go to the cash flow side of things which is kind of like the easier side of things small businesses often have the capacity to be maybe on a cash to based system for the vendor or payment side of things possibly being able to use the bank feeds in order to record the transactions if you use electronic transactions it would be the easiest thing to do possibly using bank feeds if you use bank feeds you'll be generating expense forms which in essence are like check forms when we think of check forms we usually think of forms that we have a written check with a check number and so on that's a formal check but the form in terms of a data input form for the software basically means that we're going to be decreasing the checking account so the standard form to decrease the checking account you could think of as in essence a check form and then the expense form is basically just a modified check form that doesn't have a field for a check number in it so we don't accidentally put like a check number in in it so that would that's what would be used for like an electronic transfer type of thing so let's just imagine the process here if we're going to pay like the phone bill utility bill or something like that they might then give us the bill from the telephone company let's say and note that the term bill is a specific term I can you I have to use the term bill in normal parlance but it's still not really meaning the same thing when I talk about the actual software so also realize that the bill under normal language even accounting language if I was to say that I'm gonna bill my clients that would make sense but from the accounting software perspective it would mean that I'm invoicing my clients the people that's billing me they're billing me I bill my clients the vendors that are billing me are actually sending me an invoice from their software's perspective the bill that we get might say invoice on it right but to us it's gonna be a bill but even that is not is not specific enough for the software to call it a bill because once I got the telephone bill I might not put it in my software as a bill if I put it in the software as a bill it means I'm gonna be increasing the accounts payable if I just want to pay off the bill that I received directly I don't do anything related to a bill in the software I would instead simply use an expense form if paying electronically or a check form if I'm paying by check or possibly if I'm allowing it to go through the bank feeds I paid electronically allow it to clear the bank feeds and then enter it in the system with the bank feeds which will create an expense type of form okay so let's take a look at it at a expense form let's go into one here and we'll just add another one I'm just gonna go with my AA this time the AA is going to be a vendor that we're going to be paying I'm just gonna set it up so we'll say save that and then usually we're gonna be paying out of the checking account that's what it basically means to be an expense form now you might be paying something like from a credit card so the credit card you can think about as similar to a checking account because basically you're you're making payments it still has a financial institution component to it you can still tie it to bank feeds but instead of decreasing your asset your checking account you'll be increasing a liability the credit card but it works in a similar fashion and so then I'll keep the date just whatever the date is here payment method now on the payment method we've got you know American Express cash check and so on and so forth these these are often more like a informational type of things that'll give you different information when you're searching so if you're going into your your data and you want to search by payment method then that can be a useful component so I'll just go to cash for now and then the reference number if applicable we don't have any tags we might dive into tags at a future point and then down here in a similar fashion as we saw with the bill form I'm gonna collapse the the triangle we have the two categories we've got the category details and the item details normally with an expense form we'll be using the category details the category details are when we're just gonna assign it to account an account like a GL account usually an expense account utilities telephone so on and so forth if however we're buying directly inventory with the form that's when we would use the item down here because the items are going to be tracking the inventory if we have a perpetual inventory system set up allowing us not only to increase the inventory account which we could do by just assigning it to a category but also track the the inventory in terms of units so let's start off with just a category here I'm gonna say that we're gonna say let's just go with the good old utilities and so we've got the utilities we could have a description if it's like the utilities you might want to put the pay period pay period or the period of use for the utilities that's often on the bill is useful to put there if you want to put anything there you don't have to and then the amount let's just say 340 and then with the billable just like we saw with the bills if we wanted to to say I have a like a job cost kind of system so that when we are paying for something I paid this utility bill specifically for an individual customer that I want to then pull over to the invoice then I can make it billable I can say whether it's going to be taxable or not with regards to sales tax when I pull it over to the invoice and I can choose a customer now we'll talk more about this future this feature in future presentations a bit more you got to be careful with the billable item because when it pulls into the invoice it's not really an item when you set it up in this fashion and so you got to be careful that because it might decrease an expense account instead of recording it in the proper income category and so that's what you need to be careful of when you use it so we might talk about that more later but oftentimes for most company you're not going to have it as the billable and then you can choose other categories of course if there was multiple things that multiple categories you probably wouldn't have two telephones but maybe if you had in some cases that you had two utilities that you were then applying the amount out to two different locations if you had like class tracking on or something like that then you can have multiple lines that you would be applying to some things you might have multiple lines just in general like if I was paying off a a loan then I'm going to have to pay down the interest in the principal to line items components of the loans we can add more lines if we need to we can clear the lines if we need to now if it were an inventory item then I would go into this one just like we saw before and there would be an impact on the tracking of inventory let's just set up an inventory item just for the fun of it hitting the drop down let's just add a new one as we saw in the past and I'm going to make it an inventory item so I can track the inventory I'm just going to call it inventory one we're going to set up the item as we go no SKU no category quantity on hand to zero date I'm just going to say is the end beginning of the period reorder point at zero and then the inventory account that's what's going to go up when we make the purchase which is what we're doing right now the description is going to be the inventory item whatever we're purchasing if we buy and sell guitars it would be guitars whatever it is the sales price not what we're purchasing for not what what's going to show up on this form but what we're going to turn around and sell it for I'm going to say is $400 it's going to go to the sales account when we sell it not this time but when we sell it and in the purchase detail I'm going to say we buy it for 150 and then it's going to go to cost a good sold when we sell it not when we buy it when we buy it we're going to increase the inventory by 150 when we sell it we're going to decrease it typically you know typically by 150 dependent on the cash on the flow assumptions life 05 full weighted average and then the preferred vendor I'll just leave that blank for now and we'll say save and close so now we're purchasing that item so let's say we purchase like three of them at 150 there's the 450 so there's those items and when I put the inventory on on the books it's going to increase inventory because I'm buying inventories in expense form decreasing cash the other side go into inventory and it's driven it knows it's going to inventory not because I assigned it to an account I could just make it go to inventory up top but I don't want to do that if I have perpetual inventory tracking in the system because if I put it up top here it's not going to track the units of inventory in the sub ledger so if I have a periodic system tracking the units of inventory outside the system in excel I might do this but if I'm tracking inventory within the system then I'm gonna have to use items to track the inventory which will increase the asset account but also the sub ledger of three units of inventory which are named the units of inventory we can put a memo if we so choose memo dot dot dot oh and then an attachment we could if we want to attach anything to this we can cancel we can clear we can make a reoccurring if we want if we think this transaction is going to be coming up at a regular basis we have the reoccurring transaction and then we can save it on the drop-down we can save a new if we want to make another one or save in close now what is this going to do if I just look at this transaction it's going to decrease the checking account by the full amount in this case one thousand to ten it's going to then record the other side to the expense accounts in this case utilities 340 and telephone for some reason 420 and then this one driven by the item is going to be increasing the inventory account an asset account by 450 and the sub ledger for inventory will be going up by three units of the inventory item inventory one so let's go ahead and save and close it and check it out and see if that is indeed what the case is let's go to that first tab I'm going to close the hamburger scroll in a bit run the report to refresh the data go into the checking account which is now negative I've overdrawn the checking account holding control scrolling down a bit and scrolling down to the bottom there is our there it is so there's the full amount going down one thousand to ten I can go into that amount and I get to the actual form so there's the actual data input form looks good closing that back out notice in the detail of the checking account how many different transactions we have in the transaction types that's because the checking account is the lifeblood of the company all other accounts isn't going to have this kind of variation in the type of forms that are in place this is an expense type of form if you understand these transaction types the forms then you can understand the journal entries related to those forms you'll know what's going on and you can sort reports more easily by these forms so this checking account transaction detail is one of the forms oftentimes where you might want to use filtering so you might customize this this item which we'll talk more about in the reports but you can filter this item and say we're going to filter by transaction type let's say and say we're going to filter by a check so if I went in here and I wanted to find something or related to an expense form let's say there it is you'd think it'd be some kind of alphabetical order in here something quick books or whatever but whatever so now we're going to run it and so now we can see the expense form so notice that filtering option quite useful we'll talk more about that when we get there but this is the most common place that you might use filters is in the in the cash detail with those types so then I'm going to go back out and the other side we put part of it to inventory which is right here on the balance sheet and we're tracking the inventory in a perpetual inventory system method scrolling down there's the AA there's the 450 that we put into the inventory that was just the part that we put in the inventory if I scroll back up back to our report now the reason we put that into the categories because I have a sub ledger related to it let's open that up by going to the tab to the right right click on it and duplicate that tab and then I'm going to go into the reports on the left hand side and then go into the inventory report I just type it in here usually inventory inventory summary let's see I didn't do it inventory valuation summary as of 1231 22 and run it and so now the point I want to make here is that we've got this inventory item of three units being tracked in the sub ledger the total of the cost is at 1046 25 which should tie out to what's on the balance sheet if everything's working as it should where did my inventory go on the balance sheet this isn't the balance sheet that's why this is the balance sheet so there's the 1046 26 right there on the sub ledger now on the income statement which is this tab the one I was confused at before if I scroll down then we've got the expenses are the other side that we often use when we enter expense categories using a check form which I think we put these under utilities like there's the telephone bill and if I go into that there's there's the expense form that we put into there so there that is I'm gonna go back on over back to the reports and let's go back to the first tab and now let's look at it in terms of a check the check is basically the same thing the only difference with the check is that we would actually be writing a physical check it has a check number field so let's look at that check number let's say this is gonna be for BBB tab and then save it and then checking account so we're gonna say it's it's gonna be coming out of the checking account again so so the payment payment is going to be the date is we'll keep that as the date now this is the field that's different instead of having just a reference field here we've got the check the check number so we're gonna add the actual check number then we've got the tags and then we've got the categories so same thing down here you've got your categories versus your items let's just add a category like supplies or whatever expense supplies expense we might want to say what we bought staples and then the amount of 750 dollars worth of staples and then we could make it that's a lost staple we could make it billable they're fancy staples these things the tax return never comes apart once you anyways you could you can apply it to a customer so that it would roll over to the invoice if you wanted to turn around and charge the customer for this but you got to be careful of that we'll talk more about that in the future you've got the same things down here to adding lines and clearing lines you've got your items if you're buying inventory items by check your memo and then you can cancel you can clear you can print the paycheck now this is the difference with the checks with the checks you might actually for small companies physically be writing checks from time to time and mailing them and that case you don't usually want to use the bank feeds to do that what you want to do is enter the check into the system so that you have the check number in the system and then if the check gets lost in the mail and the vendor calls you BBB calls you and says where's my money you want to be able to know that you wrote the check even if it didn't clear and or if it cleared whereas if you wait for the check to clear the bank you're missing that step so a lot of times small businesses are moving all businesses are moving from physical checks to electronic transfers where you don't have that time difference and therefore the bank feeds using the bank feeds to actually enter the transaction becomes more relevant more feasible but if you're still if you're writing checks not it still it could be a useful thing but you want to make sure that you enter the check when you're writing it usually so you can you can mark it off to print it later now if you're printing the check within the system then you can't just print this check on a piece of paper because you have the internal control of the pre-printed checks that have the pre-printed check number the check number has to tie out to what's on your actual physical check and then you got to make sure you put the check into the printer in the format that it's going to print out properly on the pre-printed check if they don't print out properly you can void the checks right and then you can do it again but you wasted some checks and and so that's going to be basically the process for printing the checks you can go the ordering checks you can make it a reoccurring transaction and you can void the check down here so you got the same save and close and save and new so I'm going to go ahead and save and close this and again same process let's just take a look at it on the balance sheet tab to the right and refresh running it again run it I was running why cuz Jen I told me to okay we're gonna scroll down so now we've got our check form which has the check number included same type of transaction these two forms are very similar except the check form is gonna have the check number so they made a different form for it they could have just put it in the in like if I go into the expense form tab like you would think their other option was just to make this payment field include like a check like a check form right so I got a check form and then you could change but they have a whole different form for basically the check forms by the way if you wanted to add a new method here let's say you didn't want to put cash but electric like a wire transfer then you can add like a like a like a e-pay or something like that if you wanted to and again it's basically just for informational purposes this field which could be useful if you're sorting your data but it's not like a required field doesn't it just add a whole lot do do you want to save it so I'm gonna say let's do that all right so then I'm gonna scroll back up and go back on over and then if I go back to the first tab again notice that if you're entering the expense and check forms first then you're gonna have to tie these out to the bank when they clear the bank so you could do that with a bank reconciliation and or you can have the bank feeds turned on to help you with that process if you're gonna make electronic transactions and use the transactions from the bank to create your your journal entry then you're gonna be basically creating the expense form so to take a look at that let's go into the banking tab and remember again I'm on the accounting view I'm in the banking tab banking is up top here's my checking account so so if as I start to add the data from the bank feeds down here and remember the bank feeds what does the bank feed have it's got increases and decreases to the checking account if they're electronic transfers they're gonna have the the the description like the bank memo that comes along with it the date and then the increase or decrease to the to the account and then we're gonna have to add the payee which may not be a required field but you typically want to do that so you can sort by vendor and then you're gonna have to add the account that it's gonna be going to so let's just take this one on 1221 and I'm just gonna say just to show you how it pulls over into the system and so I want to add a vendor which you might get through the description oftentimes so rental I'll call it I'll call it just back back ho rental I'm not sure if back over if that's really a name but we'll pretend that that's their name that we would see in the memo and then I'm gonna I'm gonna add it as a vendor and then I'm not gonna put it into uncategorized let's make another account just so I can just so I could find it easy and I'm gonna call it an expense account and I'll call it I'll call it the the the miscellaneous or test let's just call it a test account so I could find it easily description and then this one doesn't matter too much this is the subcategory I'll put other other business expense and then there we go so that looks good and you still have your billable option here in this case we'll talk more about bank feeds later but notice you're doing a quick data input form it doesn't look exactly like a check form or an expense form but you could see you're basically put in the same data as the check or expense form the amount has already been populated the date has already been populated you're adding the vendor typically from the memo section of the bank feed if it was an electronic transfer and then you got to add the category which is the GL account and then you could add the other stuff like a billable item your tags and attachment and so on and we'll talk more about rules later let's add it though and then go to my balance sheet and run it again and then we're gonna go into the checking account so let's see if I can find this one so here it is the the backhoe rental notice my point is it that it came in as an expense form so instead of us entering the expense form first and then using the bank feeds to match we entered the bank feed the expense form from the bank feeds that's quite common to do for small businesses we'll talk about more how to do that in the bank feed section or course but just just realize that it's still important to note what the accounting is what form is it using right it's using the check the expense form that decreases the check in account if I go into that form it doesn't take me to the bank feed layout it takes me to an expense form that QuickBooks created from that bank feed transaction so we still need to know what forms we're using when we're using the bank feed sometimes you got these faster ways to enter things into the system but you're still in essence using the same form that will be constructed so if I go back on over the other way that you might enter things into the system if I go to this first tab if you wanted to enter things directly into the checking account and a lot of well you this first of all when you're entering things into the system you want to first think is there a form related to it if there's a form related to it you want to use that and not use just a journal entry and then if there's not a form related to it then you want to go to a journal entry possibly if there's no form well if there's not a form related to it then you might want to think is the cash account affected if it is I might go to a register type of account the check register it might be the easiest place to go or use an expense or deposit form if there's not anything related to it then you go to the journal entry right so if you want to enter something fast like an expense or check form you could go to the register which would be in the accounting area and then you've got your chart of accounts up top I'm going to see the register here's the checking account and then you've got this register option notice you have the register option for a bunch of different accounts but I'm just going to use the checking account now and then I can enter directly into the checking account with this little drop down a check form or an expense form again this is a fast way to enter something into the system I'm going to make it 1231 222 I'm going to pay I'm going to pay just miscellant or ccc that's who I'm on let's say that and then there's your memo option your payment let's make it for 430 and the other side going to the test account again the test account okay I thought I already set this up this was an expense account expense save it and close it uh so there there it is so I can so notice this has some limited fields here but I can save it and close it and uh there so there is that item if I was to go into uh that item I can look at the more detail of it so if I want to edit it this way then it's going to take me to an expense form that's my point even though I'm in entering it into the register in a simplified kind of quick fashion which might be done if you want to enter something directly the register a little bit more fast but it's still making an expense form if you drill down on the data if I go back from the from the bank account into it it's going to be an expense form so let's just try it I'll go into the bank account and then scroll down and now we've got another form here it's an expense form for ccc okay so that's the general idea if I go back to the first tab I just want to open the hamburger and hit the cog up top and look at the business view just so we could see the stuff on the business view side of things so if I open up the business view then we still have the same plus button up top in order to find our check form and our expense form and so on and so forth when we go into the reports under this view it's under our business overview and then you go to your reports right here and so there's your balance sheet and your income statement and we went to our inventory there as well if you go under the bookkeeping area you've got your nice transactions up top and if I go to my expenses this is another way that you can kind of sort by your expense forms it's in a different slightly different area under the accounting view because it's it's in with the other kind of vendor center stuff but I can sort by expense here which I don't think I mentioned is a you know it's another way you can kind of sort by expenses on there and you can also go into your chart of accounts this is where your chart of accounts is and this is where you'd find the checking account and you can view the register for the checking account in this fashion under this view so remember whichever view you're in whether you're in the accounting or business view you should be able to find mostly the same stuff some of the things they do are a little bit different functionally so if I add an account under the business view sometimes they're trying to make it a little bit different on how you add the account which I don't like as much but the general how to find everything it works pretty much the same under the different views it's just a different layout