Lesson 1: Introducing QuickBooks Pro

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Lesson 1 Introducing QuickBooks Pro
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Lesson Objectives

• After studying this lesson, you will be able to
• Understand basic accounting tasks
• Manage basic QuickBooks files
• Work with the QuickBooks window
• Back up a company file
• Open a portable company file

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What Can QuickBooks Do For You?

• Track customers, vendors, employees, etc.
• Process sales transactions and cash receipts
• Process purchase transactions and payments to
  vendors
• Run payroll
• Track and sell inventory
• Track assets (what you own) and liabilities (what
  you owe)
• Keep track of bank accounts

Can you think of any other uses for QuickBooks?
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Types of Tasks

• Those that affect the accounting behind the
  scenes
• Company setup
• Activities
• Those that do not affect the accounting behind
  the scenes
• Lists (databases)
• Reports

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Debits and Credits The Double-Entry Accounting
System

• Debits must always equal credits!
• Left side (debits) must always equal right side
  (credits) when entering accounting transactions

This is why the system is referred to as
double-entry.
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Understanding Basic Accounting

• Introducing Behind the Scenes

Credits are on the right side of the T account,
whereas debits are on the left.
In Behind the Scenes, you will see the
accounting that QuickBooks performs for you when
you record a transaction.
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The Accounting Equation

• Assets Liabilities Equity
• Balance sheet
• Financial statement that displays all asset,
  liability, and equity accounts (collectively
  called the balance sheet accounts)

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The Balance Sheet
Notice that the Total Assets Total Liabilities
Equity.
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The Income Statement

• Accounts found on the Income Statement (or Profit
  Loss report) are the income and expense
  accounts

Income Statement and the accounts that appear on
it
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Main Account Types
Account Type Description
Assets Items/funds owned or owed to a company
Liabilities Funds owed to a company
Equity Investments into the company and net income or losses
Income Sales and fees earned
Expenses Expenditures that a company accrues
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The Trial Balance Report

• Prepared at the end of an accounting cycle
• Shows all accounts affected during the cycle
• Balance of each account is entered in the
  appropriate column based on its normal balance

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Introducing Skortis Landscaping

• Case study used throughout the book for Hands-On
  exercises
• Unit 1 (or Level 1)
• Examines a service-based business
• Unit 2 (or Level 2)
• Deals with a product-based business
• Time frame May through August 2010

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Managing QuickBooks Files

• Launching the program
• Storing your exercise files
• Ask your instructor about your file storage
  location or see the books website
• Backing up your QuickBooks files
• Process of compressing data files, similar to
  using a Space Bag? and a vacuum!
• Restoring QuickBooks files
• Decompresses a backed-up QuickBooks file so you
  can use it again

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The QuickBooks Pro Window
Title Bar
Menu Bar
Icon Bar
Home Page (notice the workflow diagram)
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Controlling the QuickBooks Desktop

• Change whether the Open Window List or Icon Bar
  appears in the QuickBooks window

View options accessed via the Menu Bar
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Backing Up Your Data

• Extremely important to avoid data loss!
• Back up to a different location than where you
  store your master company file

Network Data File
Company File
Backup File
Portable Company File
Transaction Log File
QuickBooks compresses all data stored in a
company file during a back up. Thats why backup
files are so small!
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Lesson 1 Introducing QuickBooks Pro