What are the specific reports available with the Simple Start version of Quickbooks Online

First, Simple Start plan may be the best value for the bucks if your business just needs to sync bank accounts to the QuickBooks, categorize transactions to generate the Profit and Loss report; and there is no need for Accounts Payable feature.

These are the built-in standard reports available in Simple Start plan as of December 30, 2015.

simple start reports
simple start reports

Business Overview:

  • Profit and Loss by Month (NEW)
  • Quarterly Profit and Loss Summary (NEW)
  • Profit and Loss
  • Balance Sheet
  • Statement of Cash Flows
  • Audit Log

Notice there is no General Ledger (GL) report on the list. If you think you need this valuable report added to future revision, you should send them your feedback to Intuit developers.
From the home page screen > Company Gear (upper right corner) > Your Company > Feedback > Post Your Own Idea

Review Sales:

  • Sales by Customer Summary
  • Sales by Product/Service Summary
  • Product/Service List
  • Customer Contact List
  • Estimates by Customer
  • Deposit Detail

Manage Accounts Receivable:

  • Customer Balance Summary
  • A/R Aging Summary(1)
  • Collections Report
  • Invoice List
  • Statement List

(1) TIP: Notice there is no A/R Aging Detail report on the list. From A/R Aging Summary report > click grand total amount link under “TOTAL” column. It will take you to the A/R Aging Detail report. The only difference with plans is you can’t customize this report.

Review Expenses and Purchases:

  • Transaction List by Vendor
  • Vendor Contact List
  • Check Detail

Notice there is no A/P Aging Summary report listed because there is no Accounts Payable (A/P) feature in Simple Start plan.

Manage Sales Tax:

  • Taxable Sales Summary
  • Sales Tax Liability Report

Manage Employees:

  • Employee Contact List

Manage Payroll:
(Once you are subscribed to the Intuit Payroll service, you may also see the following reports)

  • Time Activities by Employee Detail
  • Recent/Edited Time Activities
  • Payroll Summary
  • Payroll Tax Liability
  • Payroll Tax Payments
  • Payroll Billing Summary
  • Payroll Details
  • Employee Details
  • Payroll Tax and Wage Summary
  • Workers’ Compensation
  • Total Payroll Cost
  • Payroll Deductions/Contributions
  • Paycheck List
  • Total Pay
  • Vacation and Sick Leave
  • Retirement Plans
  • Multiple Worksites
  • Employee Directory

Accountant Reports:

  • Account List
  • Reconciliation Reports
  • Journal
  • Profit and Loss
  • Balance Sheet
  • Exceptions to Closing Date
  • Statement of Cash Flows
  • Transaction List by Date
  • Recent Transactions

These are additional reports available with QBO Accountant version.

  • Adjusted Trial Balance (Accountants Only)
  • Adjusting Journal Entries (Accountants Only)
  • Profit and Loss Comparison (Accountants Only)
  • Balance Sheet Comparison (Accountants Only)

TIP: From Accountant version, you can UNDO bank reconciliation. Check out our article and how-to video.

My Custom Reports
You can customize many of the built-in reports and make it your own reports. Set up to automatically distribute by email. Awesome!

Management Reports
Professional set of ready-to-use management reports as prepared by accounting firms. Also, an ability to add additional built-in reports to the management reports. You can’t automate the reports at this time.

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#QuickBooks Online #QBO – How to handle zero balances in accounts receivable aging

You have two ways to handle this issue in QBO:

  • Manual Setting
  • Automatic Setting (auto-mode)

You will need to select the one which is right for your business situation. When you create a new company file in QBO, normally this auto-mode is already ON as a default setting.

1zero ar aging

Manual method is commonly used when you have several customers open invoices and need to apply issued credit and received payment against a specific invoice. The credit memo may directly be related to certain specific project or a product return.
For example, you issued several product invoices to a customer. They returned one product and you had to issue a credit memo. They paid that invoice and also deducted for product return. For your business, you want to make sure, transactions (payment and credit) for that invoice is handled correctly. You would want to manually select that invoice; enter receive payment; apply credit and clear that invoice in A/R Aging.

To clear zero balance in A/R Aging:
From the home page screen > left navigation bar > customers > customer page > go to customer invoice > select “Receive Payment” under “Action” column
It will take you to “Receive Payment” screen. “Amount Received” should show zero because clearing “outstanding” and “credit” are for the same amount. Choose Save and Close. It should clear (disappear) zero balance in A/R Aging. Now, on customer page, status should indicate paid (instead of partial) and closed (instead of unapplied).

Click on the screenshots below to enlarge them
2customer page

3clear ar

4clear customer page status

Automatic method (default setting in QBO)
You can also choose “automatically apply credit” setting in QBO. By turning this setting ON, it will automatically apply credits to the next invoice you create for the same customer. General service-based companies (or non-project oriented companies) prefer turn on this setting. They do not deal with product returns. Invoices they issue are not sensitive to any specific project.

To turn on this automatic setting in QBO:
From the home page screen > company gear (upper right corner) > settings > company settings > advanced > automation > Automatically apply credits ON > save

5automatically apply credit setting

Once this automation setting is on, it is automatically take care of payment and credit. You will not see zero balances in Accounts Receivable Aging.


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Where can I find a comparison of what reports are available in different plans of QuickBooks Online?

QuickBooks Online is available in three different plans: Plus, Essentials and Simple Start (or EasyStart).

Here is a full list of reports available in different plans of QuickBooks Online:

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#QuickBooks Online

 


 

What are the specific reports available with the Simple Start version of Quickbooks Online..

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How does “Inventory in and out” work in QuickBooks Online Plus?

First, let’s start with understanding what “Inventory in and out” means in QBO. It means you will be adding (in) purchased inventories to Inventory Assets account that is current assets type to the chart of accounts and you will be subtracting (out) sold inventories quantity/cost when you create Sales Form (either Invoice or Sales Receipt), which will be posted to COGS account.

Yes, you do need Plus plan to have Inventory feature in QBO. Inventory feature is not available in QBO Simple Start and QBO Essentials.

You will use the vendor forms (expense, check, bill) to enter “inventory in” (add to inventory asset). Journal Entry form will not work to enter “inventory in”.

Blank Vendor Bill Form
Click on the screenshots below to enlarge them
1 bill form account
Let’s look at the blank vendor bill form (above) before making any feature setup changes. The form has “Account” column (part of chart of accounts), but no “Item Details” with columns like “Product/Service”, “Quantity” and “Rate”. We do not enter “inventory in” yet. We go through the steps below to make “inventory in and out” work:

STEP 1: Enable products and services settings ON

  • From the home page screen
  • Company Gear (upper right corner)
  • Settings
  • Company Settings
  • Sales
  • Products and Services
    1. Show Product/Service column on sales forms ON
    2. Track quantity and price/rate ON
    3. Track quantity on hand ON
  • Save / Done

2 products and services settings

 

STEP 2: Create new products and services (or item list) for inventory item

  • From the home page screen
  • Company Gear (upper right corner)
  • Lists
  • Products and Services
  • New
  • Fill out Product or Service Information
  • Inventory Name
  • To Track Quantity on Hand (for inventory items)
    Select checkbox > I track quantity on hand for this product. This enables inventory cost accounting.
  • Initial Quantity On Hand (enter “0” for new item)
  • As Of Date = today’s date
  • Inventory Asset Account = Inventory Asset (Default account. Do not select other account or create new one.)
  • Sales Information = Description on sales forms (Invoice or Sales Receipt)
  • Purchasing Information = Description on purchase forms (Purchase Order)
  • Price/Rate = Sales Price (will see it on Invoice or Sales Receipt)
  • Cost = Purchase Price (will see it on Vendor Forms like Bill, Check, Expense)
  • Income Account = Revenue/Sales account from the Chart of Accounts (will later see it on P&L Report)
  • Expense Account = COGS from the Chart of Accounts (will later see it on P&L Report)
  • Checkbox if product is taxable. To setup sales tax (left blue navigation bar > sales tax)
  • Save and Close

3.1 add new inventory
3.2 add new inventory

 

STEP 3: Enter “Inventory in” by using Vendor Forms (Bill, Expense, Check) and selecting Item Details section (Not Account details section)

  • Choose a Vendor (name of the company you bought inventory item)
  • Fill out necessary information and move to Item Details section
  • Product/Service = inventory item you want to add in (in this example, mountain bike)
  • Description should prefill once you enter product/service item. You can change it if necessary to track more information.
  • Qty = quantity purchased per vendor bill
  • Rate = purchase price per vendor bill
  • Amount = total purchase amount per vendor bill (qty x rate)
  • Save

4 enter bill for inventory

 

STEP 4: Enter Inventory out by creating Sales Forms (Sales Receipt, Invoice)

  • Choose a Customer/Client (name of the company you sell inventory item to)
  • Fill out necessary information and move to Product/Service section
  • Product/Service = inventory item you want to sell (in this example, mountain bike)
  • Description should prefill once you enter product/service item. You can change it if necessary to track more information.
  • Qty = quantity customer buying
  • Rate = price customer paying
  • Amount = total revenue/income amount (qty x rate)
  • Save

5 sales receipt inventory out

 

You can run built-in Inventory Valuation Detail Report (left navigation bar > report > go to report and select the report) to review in and out of inventory product item. In this example (Item = Mountain Bike):

  • Inventory “in”
    Quantity = 10
    Rate = $200
    Total Inventory Amount = $2,000.00
  • Inventory “out”
    Quantity = 4
    Rate = $300
    Total Sales Amount = $1,200
  • Inventory “on hand”
    Quantity = 6
    Valuation = $1,200 (6 x $200)

6 inventory valuation detail

For the income side (you can run Profit and Loss report and customize the columns for products/services), you should have $400 gross profit (qty 4 x $100 profit per item)

  • Sales = $1,200 (qty 4 x sales price $300)
  • Cost = $800 (qty 4 x cost price $200)

7 profit and loss

 

FIFO (First-in, First-out) Method

QuickBooks Online uses the FIFO method of inventory valuation. As the name implies, QuickBooks Online will always consider the first units purchased (First In) to be the first units sold (First Out) and will adjust your Inventory Assets and Cost of Goods Sold (COGS) accordingly whenever sales of inventory items are entered.

Let’s expand this case by adding a few more transactions here.

As of previous example, we have 6 units left in stock. They were purchased at $200.00 per unit. Total inventory valuation amount is $1,200 ($1,200).

Let’s suppose, we purchased 10 more units of bikes at $220.00 per unit (total bill = $2,200).

  • Our new total inventory valuation = $3,400 (1200 + 2200)
  • Our new quantity on hand = 16 (6 from previous purchase + 10 from new purchase)
  • Our new average cost = $212.50 ($3,400 divide by 16 stock units)

8 fifo inventory valuation

Let’s suppose, we sold 8 units. What would be the COGS now?

  • 6 units @ $200.00 = $1,200
  • 2 units @ $220.00 = $440
  • Total COGS for 8 units = $1,640

9 profit and loss

 

#QBO Plus

 

Can I make a copy of a budget in new QuickBooks Online?

You can “copy from an existing budget” to create new budget.

From the company gear (upper right hand corner) > Tools > Budgeting > select “New Budget” blue button (top right)

It will take to mini-interview screens. Page 2 of 4 mini-screen page will give you selection to choose “copy from and existing budget” drop-down selector.

How to run customized Sales Report by Sales Rep in new QuickBooks Online?

There is no built-in business report available by Sales Rep in new QBO at this time. By using available custom field on the sales forms (invoice and sales receipt), you can easily get the information by selecting and customizing standard built-in “SALES BY CUSTOMER SUMMARY” report.

This quick and easy tutorial video shows you how to customize sales report by sales rep for tracking sales and manually computing sales commissions in the new QuickBooks Online (QBO).

Here is another top-rated tutorial video by VPController for newqbo.net. We encourage you to watch the entire video.. You do not want to miss a step!

Sign up QuickBooks subscription for new company. Or add additional company subscription for using the same user ID (choose “Already have an Intuit user ID?”)

How to set it up and enter bank Line of Credit (LOC) transactions in new QuickBooks Online?

To track a line of credit (LOC) extended to your business, create a liability account with an opening balance of zero in your Chart of Accounts.

Chart of Accounts
Chart of Accounts

From the Home page screen

  • Go to the Company Gear (right upper-corner)
  • Select Chart of Accounts under Settings header
  • Select blue “New” button (right corner)
  • New “Account” information screen will open
  • Category Type = Other Current Liabilities
  • Detail = Line of Credit
  • Name = Line of Credit (or Chase Line of Credit if preferred to name the bank)
  • Description Line of Credit (or same as name)
  • Balance = Leave opening balance as “0” (zero even if you’ve already used LOC and has balance. It’s better to enter transaction later.)
  • Click “Save” button
Add new LOC account
Add new LOC account

To record (for example $100,000.00) the LOC extended to your company and deposited to main Checking account:

Bank Deposit
Bank Deposit

From the Home page screen

  • Go to Create “+” sign (top middle)
  • Deposits under Other header
  • Ensure the proper Deposit to account is selected (in this example, Chase Checking Account)
  • Date = Enter bank posted date
  • Go “Add New Deposits” section
  • Received From = Chase LOC Payment (Add New as Vendor if needed)
  • Account = Line of Credit (Select the “Line of Credit” account just created as “Other Current Liabilities) from the Account drop-down arrow)
  • Description = For example, Chase line of credit deposited to Chase Checking Account
  • Payment Method = Bank Online or appropriate (add new if needed)
  • Ref Number = Enter last four digits of LOC number (optional)
  • Amount = $100,000.00
  • Attachments (paper clip icon) = Upload picture of related document (if available)
  • Click “Save and New or Save and Close” blue button

This entry will show you have added $100,000 as deposit to Chase Checking Account and $100,000 as liability to Chase LOC account.

loc deposit
loc deposit

To record just interest charges (in this example $500 interest charges) applied to the LOC by your financial institution:
See instructions below for making Principal and Interest Payment.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the interest charge (for example 4/30/2014)
  • Financial institution name where the line of credit is held as the Payee (in this example Chase LOC Payment)
  • Enter the interest charge in the Increase column (in this example $500.00)
  • Choose Interest Expense account from the “Account” drop-down arrow
  • Enter “Memo” as Interest Expense for the period (in this example for April, 2014)
  • Click Save
Record Interest Expense
Record Interest Expense

To record a repayment of the LOC and/or payment of interest charges:
(In this example making $5,000 LOC payment from Chase Checking Account ($4,500 principal and $500 interest)

From the Home page screen

  • Select Create “+” sign
  • Select “Expense” (if paid Online) or Select “Check” (if issued Check) under Vendors header. In this example, we are making online payment.
  • Click the LOC Account as Payee from drop-down arrow (“Chase LOC Payment” in this example)
  • Choose the bank account you want to make payment from (“Chase Checking Account” in this example)
  • Expense Date: = Payment Date (for example 4/30/2104)
  • Payment Method: = Bank Online
  • Under Account Details, click the drop-down arrow and choose the “Line of Credit” account (Other Current Liabilities type),
    Under Description = Principal Payment
    Under Amount = $4,500.00
  • On the second line, Under Account Details, click the drop-down arrow and choose the “Interest Expense” account (Expenses type),
    Under Description = Interest Payment
    Under Amount = $500.00
  • Make sure total payment is $5,000.00
  • Attachments (small paper clip icon, bottom left): Upload photo of LOC statement. Optional but recommended.
  • Click Save and New or Save and Close button
LOC payment
LOC payment

To enter a payment that has been made directly from the LOC to a vendor, where no bills have been entered:
In this example, we are making $10,000 payment to Simon Manufacturing for purchased materials.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the purchase (for example 4/30/2014)
  • Name of Vendor Payee (in this example Simon Manufacturing)
  • Enter the amount in the Increase column (in this example $10,00.00)
  • Choose Purchases Expense Account from the “Account” drop-down arrow
  • Enter “Memo” as Buying Materials (for example XYZ job)
  • Click Save

NOTE: This transaction will not show up on Vendors Center record. For to show transaction recorded on Vendors Center, see three-steps process below.

LOC purchases
LOC purchases

To pay bills where funds have gone directly from the line of credit to the Vendor Entered Bill as Accounts Payable:
This involves three steps process.

Step # 1 Enter Vendor Bill

Enter Vendor Bill
Enter Vendor Bill

From the Home page screen

  • Select Create “+” sign
  • Select “Bill” under Vendors header
  • Select Vendor = Simon Manufacturing
  • Date = 4/30/1014
  • Under Account Details column, select Account = Purchases Expenses Account for example
  • Amount = $10,000.00
  • Click Save and Close button

This entry will created Accounts Payable balance of $10,000.00 to Simon Manufacturing’s account

Step # 2 Write Journal to show payment to Vendor by LOC

Journal Entry
Journal Entry

From the Home page screen

  • Select Create “+” sign
  • Journal Entry under Other
  • Enter the date (for example 4/30/2014)
  • On the first line, click the Account drop-down arrow and select Accounts Payable
  • Under the Debit column, enter the amount ($10,000 in this example) you paid the vendor
  • Enter a memo such as “Paid from line of credit”
  • Under Name, click the drop-down arrow and select the vendor you paid (“Simon Manufacturing” in this example)
  • On the second line Under Name, click the Account drop-down arrow and select the line of credit account (“Line of Credit” in this example)
  • Under the Credit column, enter the amount you paid the vendor ($10,000 in this example)
  • Enter a memo such as “Paid from line of credit”
  • Click Save and Close
Journal Entry for Purchase Payment
Journal Entry for Purchase Payment

Step # 3 Now you need to link the bill payment to the vendor credit paid by LOC:
From the Home page screen

  • Select Create “+” sign
  • Select “Pay Bills” under Vendors header
  • Under Pay to the Order of, select the vendor name (Simon Manufacturing)
  • Under Choose an account for Bank, Select Bank Clearing Account (Add new if needed. This account will always have zero balance.)
  • The screen will refresh and you’ll see a matching amount under Credits and Bill Payment Information.  Click the checkboxes so the amounts match.
  • Leave the amount blank as “0.00” zero. It’s “In and Out” entry, so amount should be zero
  • Click Save and Close button

This entry will clear Accounts Payable and will show payment transaction on Vendor Center.

Apply LOC payment to vendor 1
Apply LOC payment to vendor 1

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QuickBooks Online – How to enter various expenses in QBO?

The tutorial video below explains how different expense transactions are entered in QuickBooks Online. It is a step-by-step process of learning how to enter expenses in QBO. This is probably the best in-depth video that covers vendor expenses in QuickBooks Online. I highly recommend you to watch it.

 

Let me summarize the content of this video:

  • It explains how to enter expenses like debit card, credit card, ATM, cash withdrawal, bank fee, wire transfer, write check, enter Vendor Bill to pay later as A/P, Pay Bill by the Check and create Purchase Order and more.
  • It explains how to set up and enter billable charges to customers.
  • It explains how to set up and enter expenses by class tracking and location tracking.
  • Lastly, it explains how these entered expenses will show up on various financial reports.

Click on the screenshot below to enlarge it
vendors

 

#QuickBooks Online

 

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