Once you have setup your business on QuickBooks Plus Online (QBO), you are ready to enter your first transaction. We set up QuickBooks in the last series of posts. This series of posts is concerned with your Customers and your Suppliers.
You could start with entering your customers information as described in the post called QuickBooks Online Customers.
You can also enter your Suppliers. Have a look at the post called QuickBooks Online Suppliers.
Trial Balance
When you are entering your transactions you will want to frequently have a look aat tyour Trail Balance. This report will be one you view frequently. We can create a custom report called Trial Balance All Dates. You might want to create custom reports for each fiscal year. You might have custom reports called Trial Balance 2003, Trial Balance 2004 and Trial Balance 2005.
Customers
You sold a service to a customer. Great. If the customer pays you immediately at the time of the sale, you can enter a Sales Receipt into QuickBooks. If the customer pays you later, you can create an invoice. Let’s consider the invoice for now. Which reports are affected by the creation of an invoice? The Trial Balance and the Customer Reports Detail.
If you got paid immediately for the services rendered, you enter a Sales Receipt. Which report shows everything for customers? Transaction List by Customer. What is the most likely mistake you made if accounts receivable is to low and your bank account (or undeposited funds) is to high by the same amount? You made a sales receipt instead of an invoice.
Suppliers (Vendors)
Every business needs somebody. Every business has expenses they must pay. Your accounts payable represent the suppliers you owe. Accounts Payable in the chart of accounts is an account that has the total of all money owed to all vendors (suppliers). Accounts payable is a liability on the Balance Sheet. The report we will focus on is the Supplier Balance Detail report. We may also want Transaction List by Supplier in our custom reports. That report in in the Standard tab under the Expenses and Suppliers section. It used to be called Expenses and Vendors. In QBO, statements we receive from Suppliers are called Bills.
QuickBooks Series of Posts
This post is part of a series of QuickBooks posts that you see listed in blue at the top of this screen. This post is the Transactions. We have more QuickBooks series of posts here at Begin Coding Now.
What is the difference between an “expense” type of transaction and a “check” type of transaction? Expenses are for direct bank transfer and cheques are what you physically send or hand to someone.