What You’ll Do
Set Up QuickBooks in a Multiuser Office
Transfer Data from Older Versions of QuickBooks
Practice with the Sample Company Files
Set Up Income and Expense Accounts
Stop, Restart, and Complete the Interview
For many, the most unpleasant part of owning a small business is the necessity of dealing with the accounting for money coming in and out of the business. When your skill is in providing services or producing inventory, finding the time or inclination to set up and maintain a bookkeeping system is difficult. But as we all know, it is only with a quality bookkeeping system that you will keep track of how much money your company is making and how successful you really are.
Years ago, Intuit came to the rescue of many small business owners with its QuickBooks software. QuickBooks is a bookkeeping program that is so sophisticated, it provides all the record keeping and reporting opportunities you need to keep on top of your company’s progress. At the same time, QuickBooks is so easy to use that someone with little or no accounting background can start using the program right out of the box.
You might already have started making excuses and finding other projects to do so you can avoid taking the time to set up your company’s bookkeeping records in QuickBooks. Let me tell you right now that you’re making a mistake if you don’t get this project under way. In the long run, you will save time and you will save money if your company’s financial records are easy to update and easy to access. QuickBooks installation and setup is a swift process. Although it varies by the size of the company, much of the setup work can be done after the initial process is complete, so you can allocate part of an afternoon to setup instead of several days. So let’s get started!
If QuickBooks has not yet been installed on your computer, you’ll need to install the program before you can begin any of the setup procedures. Installation is easy—but beware! During installation, you are required to enter the license and product numbers. You get these numbers from the back of the packaging or during the download process.
Insert the QuickBooks CD in the CD-ROM drive of your computer or follow the instructions provided with the Intuit Download Manager to download the software from the Internet.
The Intuit QuickBooks Installer dialog displays.
Click Next.
Important
Make appropriate installation choices. The installation choices presented to you differ depending on the edition of QuickBooks that you purchased. Read the installation screens carefully, making the choices that correspond to the program you purchased. You might be presented with an opportunity to upgrade to a different edition of QuickBooks, such as the retail or contractors’ editions. Make sure you select the version you want to use.
When you reach the screen that displays the QuickBooks License Agreement, make sure you read the agreement and understand its terms. Then click I Accept the Terms of the License Agreement when you are ready to proceed.
Click Next.
Choose the installation type, Express (Recommended) or Custom and Network Options, which allows you to manually select the location and advanced server options.
Click Next.
If you are upgrading from a previous version of QuickBooks, select Custom installation. This allows you to install QuickBooks to a new folder without overwriting the previous version.
Enter your license number and product number. You can find this information on a yellow sticker on the back of the QuickBooks CD packaging or in your download instructions.
Click Next.
The Ready to Install dialog displays with your unique License and Product numbers. Click Print if you want to print the details.
Click Install. QuickBooks installs the necessary files to your computer’s hard drive.
The Sign in to QuickBooks dialog appears so you can sign in or create an account by entering a password and your name.
Alternatively, click Skip This to sign in later. When the installation is complete, a Congratulations dialog displays.
Did You Know?
Installation might not be automatic. If you insert your QuickBooks CD and the installation process does not begin automatically, click the Start button on your computer taskbar; then select Run. For Vista users, click the Windows Orb icon and type run in the dialog. In the box that appears, type D:/setup.exe (where D is the drive letter for your CD drive) and then click OK.
Did You Know?
The steps illustrated here are for an installation for only one user. If you choose multiple users, you also need to indicate whether you are installing the full QuickBooks program or just the database server, and if you want to allow users on other computers to open company files stored on the computer where the QuickBooks program resides.
QuickBooks gives you access to QuickBooks technical support, as well as online features of the program. In addition, when you register your program, you are signed up to receive information about product upgrades. As an added benefit, after you register your program, you no longer see the pop-up window reminding you to register. You are allowed to use QuickBooks for 30 days without registering; then you are required to register to continue using the program.
Click the Begin Registration button in the registration reminder window or select Help, Register QuickBooks from the program menu.
Enter the Business Phone number.
Enter the ZIP Code.
Click Continue.
Important
When the Registration screen doesn’t appear, or when the Register QuickBooks doesn’t appear on the Help menu. Some registration is automatic. If you previously registered a version of QuickBooks on your computer, you might not be asked to register your program. If an option to register QuickBooks does not appear on your Help menu, the program is already registered. With your QuickBooks program open, you can see your license number and product number by pressing F2 or Ctrl+1.
Did You Know?
Telephone registration is also available. If you don’t have Internet access or you prefer to register by phone, you can call Registration customer service at 1-800-316-1068 to complete the registration.
Did You Know?
When you register QuickBooks, you are given a validation code. Make a note of the validation code and keep it with the QuickBooks license number and product code. This helps if you need to reinstall QuickBooks.
You must have QuickBooks Pro or QuickBooks Premier if you plan to use QuickBooks in a multiuser environment where more than one person can access the company file at once. A maximum of three users can access the QuickBooks Pro company file simultaneously or five users for QuickBooks Premier. Each specific user should have a license, but the server is not considered a user (that is, you do not need a separate license for the server). Each workstation must have access to the company file. Another alternative for a multiuser office is QuickBooks Enterprise Solutions, which allows up to 30 simultaneous users.
Following the steps in the “Installing QuickBooks” task earlier in this chapter, install QuickBooks on each computer that will access the company file.
Important
The company file is stored on only one computer. All computers that are to have access to the company file need to be networked in such a way that they have read/write access to the computer or file server on which your QuickBooks company file resides.
When asked, enter the license number and product number for each computer.
Click Next.
Did You Know?
The license number might not be unique. If you purchased a multiuser QuickBooks program, each of the users has the same license number. If you purchased separate QuickBooks programs for each user, the license number is unique for each user. To sync the licenses, go to Help, Manage My License, Sync License Data Online.
If you used an older version of QuickBooks and want to update your old QuickBooks company data to the latest version of QuickBooks, the process is quick and simple. But beware! After you transfer a company file forward to a newer version of QuickBooks, you can never reopen that company file in an older version of QuickBooks. So, in a multiuser environment, make sure all computers are upgraded to the new version of QuickBooks before you open your company file on one of the upgraded computers.
Important
Your older version of QuickBooks will no longer be functional if you selected the Express Install. When you upgrade an older version of QuickBooks to a newer version, the older version is no longer available on your computer. All data files are updated to the new version as soon as you open them, and you can’t use those files in an older version of QuickBooks. If, instead of upgrading, you choose to install the new version of QuickBooks (via Custom Install) and leave the older version on your computer as well, a window appears asking you from which version to copy preferences.
The Open or Restore Company dialog displays. Select the appropriate choice for your needs (in this example, a company file).
Click Next.
QuickBooks locates the folder where your data is stored, or you can browse to the correct folder. Optionally, from the No Company Open dialog, select the data file and click Open or Restore an Existing Company. If your prior version data file required a username and password, you are prompted to enter it here. Click OK to continue (not shown).
The Update Company File for New Version dialog displays. Place a check mark in the I Understand box and click Update Now. If you need to use the prior version at a later date, you need to restore it from the backup.
QuickBooks prompts you to save a backup before updating. Click Next to browse to a folder where you want to save the backup file. Click OK to save it (not shown).
If prompted, click Change Location or Use This Location when prompted for the best location for a data backup (not shown). (This prompt displays if you are backing up to the same computer as your original data.)
Click OK to the message advising you how to use this backup file (not shown).
Click Yes to the warning that you are opening your data file with a new version of QuickBooks (not shown).
See Also
See “Backing Up Your QuickBooks Company File” in Chapter 13, “Data Backup and Security,” for information on making backup copies of your data.
Did You Know?
Back Up Your Company File! Before transferring your company file to the newest version of QuickBooks, you are required to make a backup copy of it. Should there be a problem with the transfer or any other reason why you would want to open the company file in the older version of QuickBooks, you will be able to do so. It’s wise to save your backup file to a CD or some other external media or source for extra protection in case there is ever a problem on your computer.
Quicken and QuickBooks are both products of Intuit Corporation, and the programs are compatible with one another. If you’ve been keeping track of your business accounting records in Quicken, you don’t have to start from scratch when you begin using QuickBooks. You can transfer your Quicken records right into your QuickBooks program.
Important
You cannot use your QuickBooks company file in Quicken. When you transfer files from Quicken to QuickBooks, the conversion copies your Quicken data to a new QuickBooks company file, leaving your original Quicken data file unchanged for continued use. After converting your Quicken file, you will have two sets of data: your original, unchanged Quicken file and your new QuickBooks company file.
Open the Account List in Quicken by pressing Ctrl+A.
Delete any accounts you don’t want to transfer to QuickBooks. To delete an account, click the edit button that appears to the right of the account name. When the Account Details window appears, click the Delete Account option, then type the word Yes and click OK when asked to confirm the deletion.
Record any overdue scheduled transactions in Quicken. Press Ctrl+J in Quicken to open the Scheduled Transaction List. Enter any transaction you want to record by selecting it and clicking Enter.
Skip any overdue scheduled transactions that you don’t want to record by clicking Skip on the menu.
Close Quicken (not shown).
In QuickBooks, select File, Utilities, Convert, From Quicken.
Important
If you are setting up your company in QuickBooks for the first time, you can convert data from Quicken, Peachtree, or Microsoft Office Accounting as part of the QuickBooks setup. On the Setup screen, click the Other Options button; then choose the software you are converting from and follow the onscreen instructions for converting your data.
Click Convert.
Click the name of the Quicken file to be converted. Unless you have changed the default filename in Quicken, this file is named Qdata.qdf. You might have to browse until you find the folder that contains your Quicken file.
Click Open.
Did You Know?
Expect extra conversion steps if you have an accounts receivable account in Quicken. You might be asked whether you have an accounts receivable account in Quicken that tracks customer invoices and customer payments. If you answer Yes, you are asked to identify the accounts used for accounts receivable. You might also receive a message after conversion telling you that a list of payee names needs to be identified as customers, vendors, and employees. You are shown a copy of this list to check which type applies to each name.
Did You Know?
These instructions apply only to certain versions of Quicken. The instructions for converting data from Quicken to QuickBooks apply to Quicken for Windows 2001 through the most recent version of Quicken. For conversion from earlier versions of Quicken, refer to your QuickBooks manual.
At any time, either before or after you have set up your company in QuickBooks, you can open one of the sample company files that comes with your QuickBooks program and experiment with various features of QuickBooks without altering information in your own company file. Use the sample program to create sample invoices, design reports, try out the reminders, or use any of the features while your company data is safe.
Select File, Close Company from the QuickBooks menu (not shown).
From the No Company Open dialog, select Open a Sample File and click the name of the sample file you want to use.
If you are upgrading from an earlier version of QuickBooks, you might be asked to update your sample files to the new version. Click Yes to perform the update.
QuickBooks requires you to create a backup file before the upgrade can be completed. Click OK to proceed with creating the backup. (If you are asked to accept the defaults, click OK.)
Continue clicking Yes on the next screens to complete the backup process (not shown).
You are reminded that this is a sample file. Click OK to gain access to the sample file data (not shown).
Did You Know?
Sample company files are provided with QuickBooks. Working with sample files allows you to familiarize yourself with the program without worrying about altering your company data. For example, the sample service-based business file contains examples of QuickBooks transactions in a business without an inventory. The sample product-based business file includes features from QuickBooks Pro and QuickBooks Premier, such as the job cost feature, estimates, and time tracking. Which sample files are installed varies depending on the specific version of QuickBooks installed. All versions include the sample product-based and service-based businesses.
The process of entering company data has the effect of customizing QuickBooks so the program becomes a unique financial information resource for your company. Use the checklist that follows this section to help gather the information you need to make the setup process smooth and efficient. When you open QuickBooks for the first time, you are given several choices of actions to take. Select the Create a New Company File option and begin entering your company data.
The company file is the term QuickBooks gives to the place on your computer where your company’s financial information is stored. When you select the option to open a new company file, the QuickBooks Setup window appears. It is recommended that you take the time to complete the EasyStep Interview (under Detailed Start). Follow along, answering each question as well as you can. You can make corrections later if necessary.
Did You Know?
Express Start enables you to enter minimal information to create a QuickBooks company file quickly. Simply enter the company name, industry, company type, ZIP Code, and phone number to create a new file.
Select the Create a New Company option from the No Company Open dialog. Selecting this option opens the QuickBooks Setup window. If the Welcome screen doesn’t open automatically, choose File, New Company from the menu.
Click the Detailed Start button to begin the EasyStep Interview.
Enter the name under which your company does business and the legal name of your company.
Enter the federal identification number for your company, which is necessary if you will prepare payroll in your QuickBooks file.
Enter the address, phone number, and other requested information about your company; this information can then be added to your business forms, such as a customer invoice.
Click Next to proceed through the EasyStep Interview.
Choose an industry from the list provided if you want QuickBooks to take care of the basic setup of accounts for your company. Any accounts created by QuickBooks can be changed, removed, or customized later.
Click Next.
You’re prompted to identify the type of legal organization that describes your company, such as sole proprietorship, LLC, and so on.
Click Next.
You’re prompted to enter the first month in your business year (typically, January). Click Next.
The administrator password step is optional. You can enter an administrator password or leave the field blank. If you enter a password, re-enter the password to make sure there is no error, and then click Next (not shown).
Did You Know?
Password protection is important. Your QuickBooks program contains sensitive information about your company, and this information deserves protection. Although password protection is optional, this feature is recommended.
Click Next to create the file (not shown). You are asked to give your company file a filename. All your company data is stored in this file.
Click Save (not shown). From this point forward, you can exit the interview at any time (see “Stopping, Restarting, and Completing the Interview” later in this chapter) and your data is saved.
Upon completing the EasyStep Interview, the QuickBooks Setup Window opens with the option to import contacts (as customers, vendors, employees, or other names), import products and services, or add bank accounts. Alternatively, you can click Start Working (not shown).
See Also
See “Entering Historical Data” later in this chapter for information on entering previous transactions in QuickBooks.
Did You Know?
You can change the company data you entered during the interview. After you are running your QuickBooks program, select Company, Company Information from the QuickBooks menu and make any necessary changes.
Did You Know?
You can start a new company file in QuickBooks without using the EasyStep Interview. On the first screen of the QuickBooks Setup window, you are given the option to Express Start. But unless you are a QuickBooks expert, don’t do it. Skipping the interview is not recommended for beginners and really leaves a lot of data entry to chance, even if you are an experienced QuickBooks user. If you insist on setting up a company on your own, you’ll find information throughout this book that can help you enter your company data without the EasyStep Interview.
No matter what type of company yours is, you no doubt have a bank account where your receipts are deposited and from which your payments are made. At the end of the EasyStep Interview, in the QuickBooks Setup window, you can select Add Bank Account to set up your bank account.
Enter the name of your bank account. You can use either the actual name of the bank or a descriptive name for the account (such as Checking Account or Savings Account).
Enter the bank account number. (Optional if you want to set up the bank feed to download transactions into QuickBooks. See Chapter 11 for details.).
Enter the ending balance amount from the last bank statement prior to your start date. If you are setting up a new bank account, enter 0 as the opening balance at the start date.
Enter the date of the last bank statement you received prior to your start date. If you are setting up a new bank account where your first bank statement was issued after your start date, use your start date as the bank statement date.
Click Continue to proceed.
As you progress through the EasyStep Interview, you reach the point where you are asked to review your company’s income and expense accounts. Income and expense accounts are used to categorize your company’s cash in and cash out. In addition to these types of accounts that QuickBooks provides with its standard chart of accounts, you will no doubt need to add accounts that are unique to your business. When the EasyStep Interview is completed, you can add your own income and expense accounts and remove any unwanted accounts from the standard list assigned by QuickBooks.
Scroll through the list of income and expense accounts provided by QuickBooks, comparing the accounts on that list to those you need for your business. Make a note of any income or expense accounts you need to add or edit.
Place a check mark next to any accounts you want to add to your own list of accounts. Uncheck those accounts you won’t need.
Click Restore Recommendations if you decide you want to remove the changes you added to the standard list of accounts chosen by QuickBooks.
Click Next to proceed through the EasyStep Interview.
See Also
See “Adding Accounts” on page 76 for information on changing account information after you have completed the EasyStep Interview.
Did You Know?
The QuickBooks recommended accounts are tailored to your business. Based on the type of business you indicated earlier in the interview, QuickBooks selects a list of income and expense accounts that should provide a good starting point for the accounts you need to use. You can add to the QuickBooks recommended list of accounts by checking off the additional accounts you want. And by keeping notes on the accounts you want to add in addition to those on the list, you can add extra accounts later.
Alternatively, if the business you are setting up in QuickBooks is a new business that didn’t get started until sometime after January 1, your start date will be the first day that you started doing business.
You don’t have to complete the EasyStep Interview in one session. If you need to take a break, you can exit from the EasyStep Interview without losing your place. When you return to QuickBooks, you start right where you left off in the interview.
Click the Leave button in the EasyStep Interview window.
Click OK.
Timesaver
Pressing Alt+L accomplishes the same thing. The Interview window closes, but the place where you left off is remembered.
Open QuickBooks, and you are automatically returned to the EasyStep Interview where you left off (not shown).