 QuickBooks Online. Other forms. Get ready to start moving on up with QuickBooks Online. We're going to be using the free QuickBooks Online test drives searching in our search engine for QuickBooks Online test drive. 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. Selecting the option that has Intuit.com and the URL into it being the owner of QuickBooks. We're going to be using the United States version of the software and verifying that we're not a robot. Zooming in a bit holding down control up on the scroll wheel currently at one to five percent on the zoom and remembering that if you hit the cog drop down you can switch back and forth between the business and accountant view. We'll be using the accountant view primarily but try to switch back and forth between the two views we can get a look at both of the items and where things are located within them. Duplicating some tabs to put reports in as we do every time right click in the tab up top and duplicating it right click in the duplicated tab and duplicating it again. Then going to the tab in the middle as the tab to the right is thinking going down to the reports. We want to take the balance sheet report and as that's thinking I'm going to go to the tab to the right even though it's done thinking it thought fast on that one. I'm going to go to the reports on the left close up the hamburger hamburger open up the profit and loss which I usually do first but I forgot this time and then I'm going to scroll up and change the range. This is the range change the range engines they're a changing it's going to go from 010122 to 123122 that's January to December 2022 run it to refresh it go to the tab to the left you want to refresh. You want to feel fresh you've got to run running exercise I guess is the key is what they're trying to say and then we're going to go from 010122 to 123122 January through December 2022 run it to refresh it and then we'll go tab to the left. That's the setup process we do every time hit the drop down in the new button and we've been working in cycles here so we talked about the customer cycle. We're at the end of the day we expect money to be coming in from customers for goods and services we provided to them we got the vendor cycle which at the end of the cycle we expect money to be going out. For goods and services that we purchased we've got the employee cycle which basically of course money going out for specific thing it's similar to the vendor cycle and that we're paying for employees and their services. Then we have this other section and so what's the deal with this what's the cycle going on here because remember that everything under this plus button right here for the most part are data input forms. This is where you go to do the normal day to day transactions the business of the accounting process the recording of financial transactions these forms then we're going to make populating them as easy as possible. So that we can populate them and then the system uses them to create financial statements the end result as well as kind of link things together for our internal usage so we can deal with customers vendors and employees as easily as possible. So these are still in here in this kind of day to day cycle transactions but they're not embedded in any of our three major accounting cycles. So let's think about why that it is and then we'll go into some of these transactions in more detail as we did with the other cycles. So first we have the deposit form. We talked about the deposit form in alignment in conjunction with the customer cycle because you would expect most of the deposits to be coming from the customer cycle in one way shape or form. Either we have a simplified system where we can just wait till the deposits come into the system from customers if we have gig work and just record the revenue then or we have a sales receipt at a cash register possibly that we then need to make a deposit or we have an invoice then we receive the payment and then make the deposit. In all those cases the deposit is basically connected to the sales cycle but it's possible that we have deposits that are not sales related and we want to make sure that we distinguish those deposits and those would be things like us the owner depositing money into the company. I don't want to record that as revenue because if you have income taxes for example in the United States you'll end up paying taxes on the money you put into the business it's not revenue. And then if you got a loan that's another kind of deposit for example that you got to be careful of to not record as part of the customer cycle because that's a financing kind of deposit. So maybe that's why they put that over here but you can kind of think about it in essence is hopefully part of the customer cycle in general. Then you've got the transfer forms. The transfer forms are typically used if you're transferring from one account to another. So now you have another transaction type of form. There's a transaction happening but it's an inter banking transfer typically. So if you're going to go from the checking account to another checking account or savings account to a checking account or a PayPal account to a checking account or something like that. It's nice to use the transfer form because that gives you like you could use when we'll talk more about the transfers in a second or in a future presentation. But note that like if you're transferring from a checking account to a checking account the checking to a savings account for example they're both checking accounts and you use an expense form out of your major checking account. Well then it looks correct in that checking account but when it gets to the other account you have an expense form that is in the other account as like a deposit because it's increasing that account. That looks funny and that's kind of why I think the transfer form is here because when you look at the transaction detail you don't want to see like an expense form in there. And therefore if you see it as a transfer the transfer could be an increase or decrease but it still looks appropriate kind of as a transfer form. So we'll talk more about that later that also comes into play when you get the bank feeds because you might be paying one bank feed to another bank bank to bank bank feeds or paying off a credit card. So you've got these enter enter banking transactions. So then we've got the the journal entry now with the journal entry note that if you have an accounting background and you learned journal entering first before and the double entry accounting system before working with accounting software. You're probably going to want to try to think of everything in terms of journal entries but and that's good. You can do that but you don't want to try to just enter journal entries instead of using the forms. You want to think about how the forms are creating journal entries because the way the accounting systems are built is that these forms should be set up so that they can have the data input implemented into them as easy as possible. So these forms can create the normal day to day transactions and they not only create the normal day to day transactions but they also facilitate any other kind of linkages together between the forms such as a bill form and a pay bills. The purchase order and the bill that you're going to make the invoice and the receipt payment those links become quite important to tracking things internally within the system. Even though they don't have a direct impact on the creation of the financial statements which is what most people learn when they just learn accounting like from a school perspective like just in terms of building the financial statements. So you want to apply your knowledge about debits and credits to be able to create the forms properly and then understands what the forms are doing and use the same practice of you only you always use the form whenever you can. Even when you're doing bank feeds or entering stuff into a register QuickBooks is going to use a form. The only time you go to a journal entry is when there's not a form that can be used otherwise you're going to you're going to enter journal entries that don't don't tie everything out. You know they're not connected if you make a journal entry instead of making an invoice the invoice isn't going to show up in the sub ledgers properly because of the software is designed so that you make an invoice. You don't create a journal entry when you make a sale on account but you want to know what the invoice is doing from a journal entry perspective so you can look at the financial statements. So that's how you want to apply that debit and credit kind of knowledge. If you if you have that you don't want to just make journal entries all the time but if there's no transaction over here because it's an unusual transaction then I would think is cash affected. If cash is affected then of course we can use in essence an expense form or deposit form even if it's an unusual transaction such as buying a building or buying equipment that's really expensive kind of stuff that doesn't happen all the time. But if cash isn't affected and it's unusual there's not going to be a form directly related to it such as buying equipment on account financing it. So then you would default to the journal entry journal entries are also used for like adjusting journal entries at the end of the period. We'll talk more about them later statements are typically forms that are going to be put together so that you can interact with your clients. Typically they're going to be used if you're tracking accounts receivable if you have invoices so this isn't really a form so it's kind of funny that they put it over here but maybe it's over here because it's part of the normal accounting cycle. Even though it's not creating a financial transaction it's kind of similar to an estimate which doesn't create a transaction or a purchase order but you're interacting with your customers following up on the receivables with statements. Then we got the inventory quantity adjustment. So if we're tracking inventory in the system then then on a perpetual inventory basis we might have shrinkage the inventory gets lost and that kind of stuff so we have to make inventory adjustments. So that that is a special transaction that might happen periodically after as we do a physical count at the end of the day week or month for example and then pay down the credit card. This is another kind of transfer form where we're basically going to have a special form to pay down the credit card. You have a similar kind of issue with this transfer situation. So the pay down the credit card kind of lets you know that you're the transaction is paying down the credit card. You could just use like an expense form or check form but I believe the pay down credit card will give you another form in the transaction detail which will show you that you're paying down the credit card. So it might not be as critical of a form because you could again use on the checking account side an expense or check form. But when you see that on the credit card side it still looks a little funny because you might get that mixed up with like a credit card purchase. So so it might be easier to use like a transfer form or the pay down credit card which will distinguish between the credit card purchases and and the other but it's not it's not a big deal. The transaction will be kind of the same but it can kind of make a distinguishment. So we'll go into some of these in more detail. Notice these are kind of oddballs out here because they're not every day trend. You're not going to be using them all the time except the deposits. But they're really if the deposits will be used all the time when they're part of the customer cycle but the deposit being used not as part of the customer cycle is kind of unusual. The rest of these are forms that that you that you don't use all the time or they're a little bit outside of the cycle. The statements you could think of as part of the customer cycle pretty clearly generally here but it's not actually a transaction. So general rule they're a little outside the cycle that's why they're over here in the other. But anyways we'll go into more of those in following presentations. Obviously if you switch the view from the cog to the accountant view here then then all we've been looking at is that little plus button which is in essence the same between the two of them. There's multiple places we can go to find these forms. We'll go into some of them in more detail in future presentations.