 QuickBooks Online 2022. Add normal expenses to books from Bank Feed Limbo and Make Rules. Get ready because it's go time with QuickBooks Online 2022. Here we are in our Bank Feed practice file. We set up with a 30-day free trial. Holding down control, scrolling up a bit to get to the 125% currently in the home page. Otherwise known as the Get Things Done page. In the business view as compared to the accounting view, switching to the accounting view is something you can do by going to the cog up top. Switch to the accounting view down below. We will be toggling back and forth between the two views, either here or by jumping over to the sample company file currently in the accounting view. Back to the Bank Feed practice file. Let's open up a couple tabs to put reports in. Right-clicking on the tab up top to do so and duplicating it. Back to the tab to the left one more time. Right-clicking and duplicating again. As that is thinking, let's see where the reports are located over here in the sample company in the accounting view which is on the left-hand side under the reports. If we go back on over to the business view in the second tab, we're going to be in the business overview section and then we're going to be in the reports. We're going to be opening up first one of the favorites, that being the big balance sheet. Going to close up the hamburger and go into the balance sheet. Changing the date range from 010121 to 123121. So we're going to be working in 2021 or I will. I'm going to be running this report then nothing's in it thus far because we haven't pulled any information yet that we've transferred in from the Bank Feed. It is now in what I call Bank Feed Limbo transferring it into the promised land which helps us to create the financial statements which will start to do this time. Going to the tab to the right going back to the business overview. We're going to go back down to the reports closing up the hamburger. We're going to open up the P and L profit and loss otherwise known as the income statement. Ranging the change up top 010121 to 123121 and run that one. Also of course nothing in it yet because everything is in Bank Feed Limbo. Let's go help it out. Let's go to the Bank Feed Limbo. Give some more information. Give some advice. Give a little bit of love to the transactions from the bank to bring them on over to the promised land of the financial statements. Going into then the bookkeeping at the bottom. We're going to be up top in the transactions. If you were in the accounting view you would then be in the banking section and then in the banking information up top. So we're going to go back on over so now I'm going to close up the hamburger. Once we are in there we transferred this information in. We're going to look for some of the easier types of transactions to enter first. Oftentimes those are like the end of the month type of transactions. So things like paying the utility bills, the telephone, the electric bill, things that are recurrent, things that have a unique and different vendor each time. Oftentimes the decreases are going to be easier because they're going to be more standardized. The deposits could be different depending on what kind of business we're in. So it depends on how we're going to group the deposits. We'll talk more about them later. But let's first find a transaction, a nice easy one. Let's look at this. I'm just going to pick one out here. We're going to look at the gas. So the SoCal gas, that's going to be a utility type of expense generally. And so let's take a look at that one. Now notice that they're assigning it here. They put it into the services with this automatic assignment. That clearly doesn't seem right because I believe that's going to be an income account. And this is going to be a decrease. So I don't know where they came out with that. But if I was just to confirm it here, it wouldn't go to the proper account or where we would want it to go. So once again, be careful with that automatic kind of thing here. Even if it was correct, I would still want to add, in this case, the vendor. And I would also want to add then a rule. So I have more control over where this is going to go in the future, as opposed to being reliant on just the guesswork of QuickBooks. So I'm going to go into this transaction here. So we'll click on it. We're going to be in the categorized information for now. I'm going to add then the vendor. So the vendor, I'm going to say, is going to be the SoCal gas company. So I usually, I can possibly just copy and paste down here. Now note, we have an electronic transfer for the SoCal gas company. That means that likely within the memo section, there's going to be something I can pull out to be the vendor here. And so I will typically do that. But if I don't do that, then I'm not going to have any vendor because the memo, although it might have the vendor name in it, will not be used within QuickBooks to assign the vendor unless you do it as part of this process and as part of the rule, you want to do that because doing that allows you to sort your transactions by vendor. So I'm going to go ahead and do it. I'm going to set up the vendor. I'm not going to add the detail. I just want the name to be able to sort this information by that particular vendor. So I'm going to go ahead and save it. Now it's going into services, which again, I don't know why it would be going into the services. I'm going to add and see if I can add another category. Otherwise, no one adds an account. And one reason it might be going there is because I deleted or put inactive a lot of the accounts. So I can't really blame QuickBooks for miscategorizing that when I cleaned out the chart of accounts. But I also don't like the adding of categories when I'm in here in the business view. I don't like the layout of it. So if you're going to be adding categories, I would recommend at this time to be using the accounting view. What I'm going to do here is I'm going to switch to the accounting view, go into the general ledger and add the category there. You can add the category kind of as you go right here. You can typically add the category. But again, if you're in the business view, it's a little bit more difficult of a process in my opinion. Something that they might change in the future. We'll see what they do. I'm going to go to the tab to the right. I'm going to right click on it and duplicate that tab to make another tab that I'm going to switch to the accounting view. I'm going to pull it over to the second tab here. And then I'm going to change this one to the accounting view, hitting the cog up talk to do so. And then switch to the accounting view. Now you'll recall that I basically got rid of all the categories so that we can go in there. That's the chart of accounts so that we can customize our chart of accounts as we go. You might not want to do that in practice. It depends on what you want to do. But I want to show you how we can basically build from scratch the whole chart of accounts as we basically input the data into our bank feeds or from our bank feeds. So I'm going to go into my accounts now. And then I'm going to go into the chart of accounts. So I'm going to go into accounting, not my account. And there we are in the chart of accounts. Now I'm in the business view. I'm going to close this out. And I'm just going to add another account. So I'm going to hit the plus button. This is going to be the type of account of an expense type of account. So we want to have an expense type of account. And then the subcategory could be utilities. If they have it, they may have it. There's the utilities account. I'm going to put it into utilities. Now also note that utilities has kind of changed over the years. You can have the most kind of leeway as to what your categories are going to be on the expense side of things. Do you want to have a lot of different categories? Or do you want to have fewer different categories? The more detail you have for the categories, the more detail you have on the reports. But also the more congested they will be, the longer the data input will take. And then it's going to be harder to sort through the reports. You can also have a lot of subcategories. Many people like subcategories. But again, you can go overboard with too much detail. Utilities is a good example because it used to be that the telephone was included in there. The electric and possibly the gas, possibly water for example, would be under then the utilities because the thought was that they were usually pretty small. So we're going to group them together instead of breaking them out. However, the telephone has gotten quite expensive. So that's often put out into its own category. And then we often have the electric and the gas possibly water for example under utility still kind of grouped together. However, if those amounts are high for your particular company, they're material in and of themselves, they're going to be things that you want separate that could affect your decision making. Then you might want to break them out further and have a separate account for the electric, a separate account for the gas. Another option is you can have an apparent account for the utilities and then subaccounts that will be under the utilities that will then allow you the more detail in a dropdown for portion utilities and then having subaccounts of say telephone, electric and gas. Those are some options. The subaccounts however, although they provide more detail, can be collapsed to make the reporting more simple as well. They still create more detail, a longer process of data input and a longer standard financial statement in terms of the income statement. So I'm just going to put it into utilities and I'm going to save it and close it so there it is. Let's go to the first tab now. You might have to refresh the page up top for it to then pull into this other tab since we basically added the account on the prior tab. Once you refresh the page, then you could go back into this transaction here and you're going to have this information again. I'll go back in and put my vendor up top. I'm going to say there's my vendor. It's already there because we added it before. I'm going to look for my new category now which is going to be utilities. Now they're in the dropdown. So that looks good. I'm going to then go into my tags. I'm not going to add a tag. The memo is pulling in as it should to give us a bit more detail. Then I'm going to create a rule for it. So next time and possibly still this time for multiple timeframes, the rule will then pull over the information and make this a more automated step. So what do you want to call the rule? Oftentimes you might call it the same name as for example the vendor. Sometimes you might have different rules for the same vendor. You can get a little bit more complex in the rule. We'll talk more about that later. This is just like the standard process for the rules and then you've got to apply this to the transactions that are either money out or money in. Clearly we're paying the gas bill so it's going to be a money out type of situation. Then it says all bank accounts. So do I want to apply it to every bank account? We only have one at this point in time but if we had multiple bank accounts every time we paid so Cal we could just do the same thing or possibly if I'm using another account is it going to be something different? So I'm going to apply it to all right here because it won't matter because I don't have any other account and when I do add them I'm going to be paying utilities to the utility company anyway and then include the following in all. So that means that the items these are the rules down below. We could only have one rule in which case it doesn't really matter that you can apply all of them but if I had multiple rules the question would be for the system should I apply the rule should I go through the systems asking here we have a query from the system should I go through these transactions that are entered from the bank and if any of these conditions that you apply should I then apply this rule to that transaction or should it be a situation where all of these rules must apply before I'm able to apply out this rule to the transaction so it doesn't really matter for us here because I only have one root one condition so I'm going to say all the default for the condition will be the description typically but you could also have the bank text now these two are kind of similar in nature so you might want to like test out between them between the two of them because obviously you got the description here and then you've got the bank the bank text which is basically similar to the description so if you apply out a rule and it's not taking meaning you think the rule should be applied but it's not being applied try switching from the description to the bank text or vice versa we can also make a rule by amount and we'll talk more about those kind of conditions when you might want to do that in a future presentation but in essence for example if you bought something from like a warehouse store or like an office supplies one condition for amount you could imagine would be that if it's over a certain dollar amount maybe you apply a rule that it goes into equipment or possibly if it's under a certain dollar amount that's when you apply the rule go into say supplies we'll talk more about that in the future bringing it back to the description for this one now the description that we have notice it pulled in the whole thing this whole this whole memo kind of thing so I don't need that whole thing in general so I'm going to I'm going to basically delete everything down to if it just says so cal gas that's all I need to apply the rule I don't need everything in it also I only need it to contain that information I don't need it to have the whole thing exactly so it doesn't contain if it doesn't contain you could apply that rule that it's not there which again might be more specific if you had multiple items you're entering or is it exactly that I don't want it to be exactly that I want it to just include that in order to apply this rule to that transaction so that's going to be our conditions so then assign so what are you going to do if this condition is met then what should QuickBooks do you're going to assign it to the expense or it's going to be a transaction type of an expense in other words if you look at your forms if I go to the second tab over here and hit the hamburger go into the new tab this are our forms so even though I'm not using an expense form or deposit form or check form QuickBooks will create those forms from the bank feeds so that when I go back into the end result the financial statements and drill back down on it it will not go to the bank feeds as we see them in the bank feed data input but to a form the forms are what are used by default to create financial transactions so we're going to say there it is the category or expense account you can think of it or a chart of account the account will be utilities the payee is going to be SoCal gas company you want to make sure to have that if you can because that gives you an added level of detail and then the memo down below is being pulled in which could give you some more detail about this transaction as well add this memo to all matching transactions so I'm not going to do that I'm going to allow it to apply its own memo and automatically confirm transactions this rule applies to so in other words do you want it to apply the rule and automatically pull it into the system without you even having to approve it or possibly and I'm going to turn this off for now I would like you to apply the rule but then I would like to double check it and I would recommend doing that at least for a month possibly a couple months or whatnot and after that then go in and possibly turn this back on but I kind of like having it off so that I can go in it can apply the rule out and I can at least click it off and confirm it so I can at least review the money that's going out because that allows me to glance and say well are paying me more for the utility company are they charging more I can look at the bill before I approve it so I'm going to turn it off and I'm going to save it and the rule has then been applied so now if we go back in here and I sort this it's it's going to be sorted by description so I can find these ones that are linked together and if I go down I'm going to look at those those three items so here's the so cal gas down here and you can see the rule is now being applied so there are the three rules I can add them then on the right hand side we also see a tap now for the rules because I have a rule and there's the rule there's the rules and so we can go in there and we can edit the rule if we need to if it's not as specific or not as broad as we need we can go in and edit the rules at a later point in time back to the banking tab so then if I wanted to add those three transactions I could go down here for example and I can say okay I could put my cursor on this one and I can hold down the shift and select that one and I can accept or add them all at one time or possibly I just want to add one of them which is what I'm going to do now just so I can see these other rules that are being in there as we sort the data at a future point so what's going to happen when I add this then it's going to create an expense form and the expense form will be a decrease to the checking account that's what an expense form does and the other side is going to be going to the utility on the income statement decreasing net income so let's go ahead and just add it on the right hand side it's also going to adjust to the vendor so I can see the vendor detail and let's take a look at it so now if I look at then my balance sheet and I refresh it by running the report again now I've got my checking account has now appeared up top which remember is under the drop down because that's the type of account it is and then we put the last four digits imagining it's a mock last four digits of the number to identify it and you might want to put the financial institution there too and I'm going to go into it and then drill down on it and there we have our form notice it's an expense type form which is kind of like a check without the check number it's a form that decreases the checking account and if I go into that it doesn't take me to the bank feed data input but rather it creates the form that is used to create the financial transactions of a decrease to the checking account rather than a check form and expense form because it's an electronic transfer so we've got the payee the checking account up top the payment date and the other side going to the utility account down below creates it for us automatically closing this then back out now note again if it wasn't if we weren't dependent on the bank feeds to do this we would have entered the expense form on our end use the bank feeds to match out the transaction that we entered into but in this case we're creating the financial statements and we made the expense form directly from the bank statement alright I'm going back up and I'm going to go back into our reports the other side you can see on the balance sheet to be in balance is in the equity section but it's in net income because the balance sheet is related to the income statement through the income statement rolling into net income rolling into equity so if we go then to the income statement on the right or profit and loss and I refresh this one we then see that we have no income yet because we haven't added anything on the income side we've got our utilities down here if I go into it drilling back down back to the source document it's going to create that expense form again the other side the split account being the checking account going back up going back then to our reports you can see that we currently have net income a loss in this case of the 3280 that loss is of course rolling into the balance sheet there it is on the balance sheet if I was to change the date range up top it would roll into the equity in other words if I made this 010122 to 123122 run it we get the same thing but down here that net income now rolled into equity that's kind of how the income statement is related to the balance sheet if I was to change the dates on the income statement up top 010122 to 123122 and run that there would be nothing in it because we'd start over that's the closing process that QuickBooks is in essence doing for us alright let's bring it back let's go from 010121 to 123121 run it back to the tab to the left balance sheet let's bring this back to 010121 to 123121 run it then let's go to the tab to the left now in this is in the accounting view because you'll recall I switched it over I want to go into the expenses on the left hand side which would be in the get pay or pay tab if you were in the business view I'm going to close up the hamburger and so now we've got our expenses so you can see the expense form listed out here and you can also see if I go into the vendors tab then we have our vendor listed out in this company and I can go into the vendor and see the detail of that expense I can also possibly run reports that are by vendor where I could not have done that if I did not add the vendor so remember that you need to add the vendor and it's quite possible not to add the vendor because that's not something included simply from the bank feeds and QuickBooks will not require it but if you don't add the vendor then you'll lose this added level of financial statement detail it'll still create this transaction your balance sheet will still balance no problem, it's not the end of the world but you won't have the added detail of being able to sort your transactions by who you paid if you want to look at everything you paid to this particular vendor that could be useful let's go back to the first tab and let's do it again this time I'm going to look at Verizon which is a telephone company and I'm going to try to add that one now again they put it to the wrong place because they tried to help us out but that's wrong I'm not blaming QuickBooks, I was like where did QuickBooks get that but I deleted the whole general ledger account so I can't really blame them on messing it up but it's wrong in any case so we're going to go into it I'm going to do the same thing I'm going to say the dates there I'm going to add a new vendor I'm going to copy it if I can from something in the memo so the memo includes in the system in a slightly different format in the system so you don't want to add a whole bunch of vendors that are just different variants of the same vendors for example you don't want to add Verizon Wireless and Verizon and Verizon Wireless payments and have three vendors that are in essence the same vendor unless you tactically have some reason to do that so make sure that the vendor is not already included if it's not the first month of operations make sure that you put the appropriate vendor name when you're starting so that you can use that going forward so I'm going to add the vendor as we go so adding the vendor I'm not going to add the details that's all I want is that information vendor is what we want so I'm going to say save that it's not going to go to the services tab I want to make another one which is going to be the telephone company and I think because I switched it over to the accounting view I am in essence in the accounting view here so I'm going to try to add a new one and see if it's an easier process now I'm basically in the accounting view and I would recommend basically using the accounting view until they fix I would think fix the process of the other view not having basically this window to add new accounts when you're trying to add accounts just my opinion if anybody cares not many people do but I give my opinion anyways because I feel like it's important so anyways I'm going to go down here and go to expenses and then we're going to say this is going to be telephone you could put it into utilities again maybe for the sub accounts not all that important doesn't do a lot of change to what we're doing here but I'm going to make it utilities and then I'm not going to put it under utilities I'm going to make one called telephone because I would like it broken out separately again this is a personal choice you could put it under utilities as well if you wanted to or you could make a sub account of a utilities account the utilities being the parent account sub account telephone possibly electric and gas really depends on what you prefer in terms of how much detail you want versus not want there's no over lined rule that you need to have it's really about internal decision making generally for the most part okay let's go ahead and save it and close it there we have that memo looks good we're not going to attach anything we're going to create a rule let's say we're going to create a rule I need a rule I'm going to call it the same name which is Verizon Wireless so naming it by the vendor is often useful or one convention that you can use that's quite common it's going to be a money out rule because clearly we're paying it's going to go to all bank accounts even though I only have one because every time I pay something to Verizon Wireless I would think it would go to the utilities expense it doesn't matter if I have any I'll call here because all conditions will need to be met considering I only have one condition we'll talk about more complex conditions later you can pull it from the description or possibly the bank text I'm going to keep the description now if it doesn't do what I want I'll toggle back and forth between those two I just want it to contain not to be exactly what is in this next field because I don't want I want it to be able to make sure to pick it up so all I have in this next field is Verizon Wireless so as long as it contains that then they should apply the rule what should it do if it applies this rule it should make an expense type of form that's the form that's going to record the transaction it should record the category or account in other words to telephone and the payee should be the Verizon Wireless that being the vendor then the memos down below add this memo to all I'm not going to have it automatically apply out but I would like to just verify give that final click to apply it out I'll save it and close it I'm going to sort it now we're going to sort this by description now so we can see these items I'm going to go then down we're looking at the telephones that's going to be towards the bottom here actually we're looking at Verizon that's way at the bottom so there they are so there's the ones and so now I can select all three of them according to this rule or I'm just going to add the one so I can see these rules and I'll keep adding the rules at a later point in time so I'm actually going to add this one right here for some reason the middle one because I want to match it up to something else so I'm going to add this one and that then of course is going to bring it into our financial statements with an expense form which decreases the checking account other side going to the telephone expense as we assigned it to go and the vendor will be applied so as well let's go to the balance sheet and look at it, run it run nine then we're going to go into the checking account now we've got two amounts that should be in here I'm going to drill down on the end result the promised land of the balance sheet these two transactions are the first to have made it into the promised land from Bank Feed Limbo it's not so bad Bank Feed Limbo is not so bad as long as you just follow the light then you can get there that's what these two are saying that's their testimony to it in any case so we've got this one, there's the expense closing this back out and then we're going to scroll back up and say let's go back then to our report and down below we've got net income the other side so we're in balance if I go back to the tab to the right then income statement run that again run it so now we've got the telephone utilities down here if I go to the second tab I can look at my vendors I can open up the handbook and we're in the accounting view this time and if I go into the expenses I can see my transactions notice the transactions by the way would be in the overview tab I believe that's a little bit different in the accounting view in other words the expenses would be up in that area that type of forms and then we've got the vendor the vendor section where now we have our two vendors so if I wanted to see how much I paid Verizon I can go into the vendor information which I would only have if I had taken the time to add the vendor name before I recorded the transaction and if I take the time to do that on the first time and take the time to make a rule that then added information will be there in the future so those are going to be kind of like the basic transactions the easiest ones those repetitive ones are the easiest ones to put into place will continue to add some more of these adding a bit more complexity to some of the more complex transactions as we go and obviously your numbers will not match our numbers here as you practice with whatever data that you have to practice with but that's the general idea