 QuickBooks Desktop 2023, company preferences, search, send forms, service connection, spelling, tax 1099 and time and expenses options. Let's do it within 2-its QuickBooks Desktop 2023. 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. Here we are in QuickBooks Desktop. Get great guitars practice file we set up in a prior presentation, going through the preferences and the edit drop down preferences down at the bottom. Last time we left off with the sales tax, now we're going to try to finish things off down here. We're scrolling down a bit for the search, the send forms, the service connection, spelling, tax 1099 and time and expenses. Going to the search item. You got the my preferences, not many options there so we're going to go to the company preferences where it says QuickBooks Desktop updates search information frequently so changes as the company file can appear in search results select how often to update search information. So we got the search box preferences update automatically that's the default update every 60 minutes that's the default notice that it can be a little bit time consuming for the searches so if it's running slow and you want to get some work done and it's causing you a problem possibly you can turn the search off for that time frame possibly updating manually from time to time otherwise we're going to keep it on the defaults the note down here saying updates to search information can take a few minutes QuickBooks may run slightly slower while it updates to search information. Send forms item down below we're going to start at the my preferences on the send forms where it says auto check the email later check box if customers preferred delivery method is email so meaning when you enter the forms such as an invoice it's going to check off the email later box which means that you're going to possibly send the form you know by email which is typically the case these days often times. So use plain text format for email invoices and then it says send email using web mail so you could then try to set up or set up your web mail in the QuickBooks system within your account which could make it easier to basically be sending forms so that will be kind of a bit of a customization thing and then you got the QuickBooks email where you could set up the QuickBooks email so I'm not going to get into a lot of detail in terms of how you're actually going to be you know emailing the forms to clients but just note that there's certain forms of course that are going to go out to clients and certain forms that are kind of internal forms so for example the invoice is clearly something that you would ship out to the client the bill is typically something that will be an internal form because that's something that you are receiving from the client you're entering the bill so that you can you can basically record the transaction the receive payment is usually going to be an internal kind of document and so if you're given the form to the client then you could send it out by email and try to track it with the email or you might actually print the form possibly as a PDF and then send it as an email on an attachment in that way you can also use other formats such as like a Dropbox or something like that a cloud you know shared cloud drive or something like that so you can set up your options in terms of how you're going to be communicating this information to the clients in one way would be by email fairly common format these days okay let's go down to the service connection so we're in the my preferences settings give me the option of saving a file whenever I download web connect data I'm going to go ahead and keep that on as the default and if QuickBooks is run by my browser don't close it after web connect is done once again I'm going to keep that on as the default how do you want to handle your connection to QuickBooks services the following settings apply to all QuickBooks services except payroll and bank feeds so those are going to be a little bit more complex or a little bit different because payroll has that add-on component and the bank feeds have that add extra components to you don't have to pay more typically for the bank feeds but you got to connect clearly to the to the banks with them so automatically connect without asking for a password that's the default we're going to keep that always ask for a password before connecting so notice once again it says up here how do you want to handle your connections to QuickBooks services some of those services might be things that you got to basically go online so you might need like an internet connection so it could say automatically connect without asking always ask for a password before connecting which might be a little bit more secure or safer way to do things or give you a little bit more control possibly over things but make it a little bit more time-consuming checked off here allow background downloading of service messages so again that could take a little bit more time because it's going to be downloading that information whenever it wants to download the information if things are running slow or something like that maybe you want to uncheck that if you want to have more control over things you can change those default settings but I'm going to keep the default settings here then we've got the spelling my preferences always check spelling before printing saving or sending support forms I think that's a good format to use however note that you could have things with the spelling when you're dealing with forms and items and invoices and stuff that are are just abbreviations that the system doesn't recognize so I still think it's good to have the spelling checked and then try to add those items as things to ignore when as you enter data into the system so then we have the ignore words with internet addresses so if it's an internet address like has a www it's not going to give it a spell check thing a number so that one's checked off if you have a number capitalized first letter like this if it's an I for into it doesn't recognize the word then it still won't ding it with a spell check because it's looks like a name all uppercase letters so oftentimes you see things like an acronym ASAP and so that shouldn't be spell checked if you check that off and then mixed cases like QuickBooks once again would kind of indicate that it's a name so you would think maybe the spell check wouldn't apply there so notice by default they only have the numbers checked off I'll keep the default so these are your custom added spelling words remove any that you don't want by clicking the check mark in the delete so then you can add items down here which are words that are saying hey don't don't give me a ding for the spell check with these these added words down below and as you're entering data into the data forms if it asks you and it says hey this there's an issue with the spelled word right here you can you can say generally ignore that or possibly you're going to say hey save that as something that you're not going to tell me that to spell check and so as you do your data input then those things that are possibly abbreviations if you don't check these off that you don't want to be hit with a spell check hopefully will be up compiling up here in our our words not to be hit with the spell check and that'll make things easier and more customized over time that's why I think it's kind of nice just to check off the numbers here so that still spell check some of these other things even though it's likely that those could be names and stuff because then then you can come up with your own customization possibly of the things that you do not want to be spell checked and that might make it a little bit more customizable and allow the spell check to catch a few more errors tax down here 1099 you got the my preferences and then we're in the company preferences do you file 1099 forms this is on by default notice in the United States then typically we have the 1099 is a tax reporting requirement so notice that we have income taxes that we that we've got to deal with our own taxes and from an income tax perspective the government is going to want to know who's earning revenue clearly because those are the people that they want to be subject to the tax if you're the if you're the payer of the transaction the government has more leverage over the payer of the transaction because remember every business transaction has one side receiving income the other side having an expense for taxes everything's flipped on its head expenses are good income is bad so if you want to get a deduction for the expense that you're that you're having when you give money to someone else for goods and services spend money for goods and services by goods and services the IRS is going to have some leverage to say in certain instances we would like you to tell us who you paid the money for when are those instances going to be well if their employees then you have to tell us who they are and you have to file a w2 w3s 1099s 1040 or 9 941s 940s and all that stuff and you have to take their money and withhold it but if they're not w if they're not employees if they're large companies the iris is going to say I'm not too worried about it right if they're large incorporated companies not too worried about it because we already have other things to make sure that they they do what we want right we're not we're you know we've got them under our thumb already but if they're small companies independent contractors we think they might try to fly under the radar and therefore we want you to rat them out right so that's what the 1099 is so if you pay the 1099 and you've worked with the contractors then you have to issue these 1099s now there's different reports so whenever we have a vendor someone we pay we want to determine whether or not there's someone subject to a 1099 so that we can track how much we paid them so that we can then generate the 1099s for them so that we don't get the iris upset with us and so on and so forth although the contractors could get upset with us so we have to get their information and fill up the 1099s but you get that's just the way it works okay so that's what we got to do there so usually it's going to be on so if you're ready to prepare your 1099s include mapping accounts you can you can do it here so at the end of the year then you can you can go here to kind of process the 1099s can help you to process the 1099s and if you've determined all the people that are subject to the 1099s then as you process it you might be able to do that electronically although you'd have to pay for it or you can buy paper forms and use the forms within QuickBooks to fill out the 1099s give a copy to the the contractor and then give a copy you know to the government so the two common 1099s if you want to map your account to boxes on form 1099 NEC and then you've got 1099 miscellaneous so most of the time people are using the NEC with us which is like other compensation for their contractors that's the most common format of the 1099 it used to be that those those other compensation was on the miscellaneous form a few years ago but now they've made out a different form so most people are going to be basically using this but you might have other things like rent income or something like that that you have to record on the miscellaneous 1099 and and so you can go through the setup process on how to how to fill that information out so those are those we're going to then go to the time and expense let's go to the my preferences nothing in it company preferences time tracking do you track time the default is yes we'll keep it on the time tracking we've got time tracking component down here and there's two things with it you might say what am I using this for it could be used for a couple different things if you're tracking employee time or even your time you might use it to process the pay roll and help you to process that for hourly employees but also if you have a job cost system which could be a construction company but it could also be a service company like a bookkeeping company a CPA firm an accounting firm that needs to charge whatever they did to the clients you can use this tool to then create the invoice with so we won't use it extensively here but we'll take a look at it and then we have the first day of the week so when's the first we're going to keep it on Monday for it for a work week then we've got the invoicing options now I'm just going to list these out and then explain them a bit more and then we'll get back in here in more detail so we got the tracked reimbursed expenses as income we've got the mark all expenses as billable default markup percent and then we've got the default markup account so let's first think about what it means for something to be billable and the pros and cons of that I'm going to close this out for now now we'll get back into this in a little bit more detail at parts of the practice problem but just to kind of recap it for these preferences right now note that on the income statement we have two things in essence we've got income and expenses the expenses are the things that we consumed that we bought that in order to achieve the goal of revenue generation the forms that we're going to enter for the expenses will be a bill a check typically or we could enter time which represents our time or our employee times that we expended in order to generate revenue revenue being recorded by invoices and the sales receipts so you might have some situations typically a job cost system possibly a construction company or like a service job cost system like a cpa firm accounting firm bookkeeping for example where you're saying I would like to have the things that I'm paying for the supplies the goods or the gas and this and that possibly that I would like to apply to a particular person or customer so that when I then create my invoice I'm going to list out the things that I did for that particular customer down here so that will help me to construct the invoice and invoice or bill in essence the client for that information one way you might think to do that is you might go okay let me go into my check as I write checks for stuff I can go into here and say I'm going to make it billable so this is me writing a check to a vendor like the gas station or something and I might say I'd like to make it billable which means I would like to then assign that or include this line item on the invoice of the customer when I bill the customer with an invoice billable here means invoiceable right because it's an invoice in essence then we'd have to assign the customer so we'll do this in the practice problem but just to get an idea for these settings if I close that out then and then I create an invoice for that particular customer I might get a pop-up saying hey there's a billable item that I can add down here if it was gas it would then charge the gas and it would add it down here which is great however there are some limitations to that and we'll get into more of that when we when we do the example and part of the example problem but one of the problems is that notice that these line items here on the invoice are usually driven by items that we set up in the lists which we'll do in future presentations shortly lists item list and so we usually set up our inventory and service items here and those are the things that tell us which account we're going to be charged and how much how much we're going to charge and so on and so forth if we don't have an item for it but it's just being driven from the expense then the question for QuickBooks is well what account am I going to use to to record the what would normally be revenue for an invoice now the default option I believe is like you could say well maybe I'm going to think of it as a reimbursement meaning if I paid for gas when I entered the check it increased the the gas expense decreasing net income and then when I record it on the invoice and the customer pays me if I record it as a reimbursement it's going to record a negative charge to the gas to the expense account which results in the net income working out properly but that's not usually what we want to have an invoice usually we want to have on the income statement revenue going up with whatever we we generated for revenue and then expenses revenue minus expenses being the net income we don't usually want to say well there was an expense and then the customer reimbursed me for the expense so the expense went back down and now I had no gas expense right normally we want to say no we had revenue we had to expend gas in order to generate the revenue revenue minus expenses is the net income so so usually in the default you kind of want to change the default so you can so you can make sure that it records as income but even if it records that income it's still a little bit limited because then it has to it doesn't know which income account to really go to it's just going to be billable income uh generally the default account because it doesn't have an item so there's some limitations with that well we might dive more into that in the practice problem but just know that's that's part of the idea here and then when you enter your time down here so if I was to enter my time or customer times again I can I can enter a name down here the customer name and I can make it billable so once again when I then charge for the invoice it will then ask me if I want to charge for the time that had been entered and this time sheet does have items that we can set up for the time so we can properly assign that out so we might test that out in the future so that's just a general idea so we can understand these settings so if I go to the settings then and I go to the time and the company preferences notice down here it says track reimbursed expenses as income I would think normally you would want to do that because if I don't do that I think it's going to track those expenses as a negative expense account and that to me is not normally the way you would want to do it so you want to be careful when you're using that billable stuff to see how it's recorded on the income statement okay and then down here it says mark all expenses as as billable normally I wouldn't mark all expenses as billable I'm going to I'm going to uncheck that and then we've got the default markup percent so note that if I had if I paid for gas or whatever else and I had a job cost system then I might say hey look I paid $100 for gas and I'm charging you a 30 percent markup or something like that that's what I'm that's what I'm generated that's what I'm earning from so I might say I have a standard markup this is what it cost this is me marking it up this is what I'm charging you for it and then and you could do that on a line by line item this way or you might just say I'm going to I'm going to do that manually I'm going to enter the invoice and then I'm going to I'm going to mark the whole invoice up whatever 30 percent or my markup or something like that so that would be that and then the default markup account would generally be an income account for what you're charging because you're charging it to an invoice here so okay and then you got the track mileage now mileage there's QuickBooks has some kind of fancy stuff with the mileage mileage becomes an issue because for taxes you could have a mileage rate that you're charging people and you might have like people driving that you're kind of reimbursing them for the mileage so you might have a standard mileage rate that you're using to charge them we might get into this in more detail in the future but notice just from a because they have some kind of fancy options for tracking the mileage they have an app that you can use to kind of track the mileage but the thing you got to keep in mind is when for taxes how are you how are you recording the auto expenses right because are you recording the actual expenses so that you're actually recording the gas and the maintenance and whatnot or for taxes are you going to are you going to use a mileage method where you're going to be tracking the mileage and if you have employees that are that are that are driving and whatnot and you're going to reimburs them for mileage or charging expense then what's the easiest way to enter that data into the system so you can learn a little bit more about some of the options for the tracking the mileage here just note from a tax perspective you want to keep those in mind because you might be paying for gas and so on that you're recording into the system but for taxes for whatever reason it might be easier to use the mileage method so you might also have to be tracking the miles that you have over the year and your tax professional or you at the end of the year will have to make an adjustment and determine which would be the best way to go for taxes versus for your books to use a mileage method or to use the actual expenses so that gets into a whole nother kind of issue because of taxes taxes kind of create an issue there so those are the general defaults i'm going to go ahead and save that and there it is