Accounting with QuickBooks Online

Chapter 1 Getting Started

Learning Objectives

After you have completed this chapter, you will be able to do the following:

  1. Create a new QuickBooks Online account using codes provided with this text
  2. Provide information to QuickBooks Online about your company
  3. Sign out and sign in to QuickBooks Online
  4. Successfully navigate the QuickBooks Online home page
  5. Assign your instructor as your ‘‘Accountant’’ (Optional)

Overview

The focus of this chapter is to introduce you to QuickBooks Online and get your account and company established. The name QuickBooks Online is used to refer to the QuickBooks Online Plus online application from Intuit. This text includes codes, which will allow you to create your own personal account with Intuit and create one and only one company. You will assign your company a name, which includes your name for identification purposes. Welcome to the journey.

The figures and steps provided and described in this supplement were accurate on the day they were captured. Intuit may have changed the location, the description, or the process for recording certain business transactions and thus at any point in time the figures may not match your screen or the steps described may not match those described here. Changes should not be significant but the author does not control or have any influence over QuickBooks Online developers.

Creating a New QuickBooks Online Account

A friend of yours, Richard Lewis, has decided to open a spa to serve his hometown of Waco, Texas. This is a NEW business. He has named the business Magnolia Spa. He will operate the business Monday through Friday from 8:00 am to 8:00 pm. He has asked you to be the accountant for his business using QuickBooks Online.

Before getting started, you will need to establish your account with QuickBooks Online. This text includes access codes for one user. Once you use the codes, they will not work again.

To launch QuickBooks Online and create a new account, and then sign out of QuickBooks Online, do the following:

  1. Copy & paste https://quickbooks.intuit.com/signup/retail into your browser’s address text box to view the Set Up Your Account window
  2. Type your license number and product number (in the back of the text) and then click the checkbox I agree to the Terms of Service and then click Set Up Account.
  3. Enter information about you, changing all the information to your first name, your last name, your email address (which will become your User ID), your mobile number (if you want), and your password.
  4. Click Create Account.
  5. Enter information about your company: Business Name is Magnolia Spa and it has been in business for less than a year.
  6. Click Next.
  7. Do not select any item when asked how you keep track of your business now. Click Next.
  8. Click Get Started
  9. Click the gear icon in the upper right corner and then click Sign Out
  10. This action will close QuickBooks Online. It is important to close QuickBooks Online after every use by following the above sign-out process. When you are ready to come back follow the steps below.

Navigating QuickBooks Online

The Home page provides links to various tasks and resources. The Customers window provides access to adding new customers, viewing existing balances, and highlighting overdue accounts. The Vendors window provides access to adding new vendors, viewing existing balances, and highlighting overdue accounts. The Employees window provides access to adding new employees and viewing payroll information. To begin, you should take a tour of the Home page to learn how to navigate around QuickBooks Online.

To sign in and navigate to QuickBooks Online’s home page:

  1. Type <URL>https://qbo.intuit.com/</URL> into your web browser.
  2. Type your User ID and Password
  3. Click Sign In.
  4. Click on one of the options to verify your account
  5. Click the Create + menu at the top right of the Home page to view the full create menu items available
  6. Under YOUR BOOKS on the left side of the screen click SALES and then click Customers toward the top of the screen to view your company’s Customers page. Customers are people or companies that pay you money for goods you deliver or services you render to them. Remember QuickBooks Online is an online application and Intuit will change it often. Thus the figures in this text may differ from what you see in QuickBooks Online. The Customers page lets you manage your customer list and sales transactions on one page. From there, you can do a variety of things like:
    1. Add customers and edit their information
    2. Keep track of sales transactions, either by type or customer
    3. Work with the Customer money bar to see totals and filter the customer list
    4. Sort customers by name, company, open balance, or overdue balance
    5. Your screen does not reflect any customers but will once you enter customers and sales transactions.
  7. Click EXPENSES on the left side of your screen and then click Vendors from the navigation bar toward the top of the screen. Vendors are people or companies that you pay money to, such as a store, utility, or landlord, or subcontractors who do work for you. The Vendors page lets you manage your vendors list and purchase transactions on one page. From there, you can do a variety of things like:
    1. Add vendors and edit their information
    2. Keep track of purchase transactions, either by type or vendor
    3. Work with the Vendor money bar to see totals and filter the vendor list
    4. Sort vendors by name, company, open balance, or overdue balance
    5. Your screen does not reflect any vendors but will once you enter vendors and purchase transactions.
  8. Click Workers from the navigation bar on the left of the Home page to view your company’s Employees page. Employees are people who do work for you on an hourly or salaried basis. The Employees page lets you manage your employees list and payroll transactions on one page. From there, you can do a variety of things like:
    1. Add employees and edit their information
    2. Keep track of payroll transactions
    3. Your screen does not reflect any employees but will once you enter employees and payroll transactions.
  9. Do not close your company file.

Assigning an Instructor as the Company’s Accountant

Your instructor may require you to assign him or her as your company’s accountant. You do this so he or she, as your accountant, will always have access to your company files for grading and evaluation purposes. This will also assist the instructor in answering questions you may have about your company. The process of assigning an accountant to your company involves a brief interview in which you will provide your instructor’s email address and name. Make sure you have that information before beginning this process. Your instructor will receive an email inviting him or her to be your accountant. Once the instructor accepts your invitation, he or she will have access to your company and the instructor’s name will appear in the Accounting Firms section of the Manage Users page.

To assign an accountant to your company, do the following:

  1. From the Home page, click Team on the left side of your screen
  2. Click Add Users and type TRACY WEBER tracyweber@bellevue.k12.ia.us
  3. Under ACCESS choose FULL
  4. Click NEXT
  5. Click SAVE

Review It with QuickBooks Online

Answer the following in a Google Doc shared with me:

  1. The Customers page in QuickBooks Online lets you manage all of the following except:
    1. Add customers and edit their information
    2. Keep track of purchase transactions
    3. Work with the Customer money bar to see totals and filter the customer list
    4. Sort customers by name, company, open balance, or overdue balance
    5. Keep track of sales transactions, either by type or customer
  2. The Vendors page in QuickBooks Online lets you manage your vendors list and purchase transactions for all of the following except:
    1. Add vendors and edit their information
    2. Work with the Vendor money bar to see totals and filter and vendor list
    3. Add and edit the company information
    4. Keep track of purchase transactions, either by type or vendor
  3. QuickBooks Online allows your instructor access to view your company files if you set up your instructor in the following area:
    1. Add as employee
    2. Add as vendor
    3. Add as customer
    4. Add as company’s team member

End Note

You have now been introduced to QuickBooks Online, its basic features, and how it is similar to but not the same as QuickBooks Desktop. You created your Intuit account and provided basic information about your company and learned how to navigate around the QuickBooks Online application. After assigning your instructor as your accountant you are now ready to modify you company settings and the chart of accounts and to add some customers, vendors, and employees in Chapter 2.