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Post by Javed Surani on February 2, 2015

how to create inventory item

Setting Up QuickBooks

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • The Express Start 0:23
    • Create New Company
  • Entering Company Information 0:55
    • Enter Business Contact
  • Preferences 4:16
    • Adding Contacts
    • Adding Products and Services
    • Adding Bank Accounts
  • Review the Chart of Accounts and Customize 6:10
    • Check Chart of Accounts Set Up
    • How to Add To Chart of Accounts
  • Entering Bank Accounts and Opening Balances 8:00
    • Edit New Bank Accounts
    • Add New Bank Accounts
    • How To Open Balance
  • Adding Customers 10:27
    • How to Add New Customers
  • Adding a Job 12:33
    • Add New Job For Customer
  • Adding Vendors 15:01
    • Access Vendor Center
    • Add New Vendor
  • Adding Additional Accounts 16:33
    • Adding New Accounts in Chart of Accounts
  • Adding Items (Products & Services) 18:06
    • Add New Item to Sell

Transcription: Setting Up QuickBooks

Welcome back educator.com. This is QuickBooks lesson getting started and setting up QuickBooks.0000

The first thing we are going to go ahead and show you is how to get your QuickBooks set up quick and easily.0007

So, you can get started with your business and record your income and tracking your expenses as quickly as possible.0013

So, the first thing we are going to talk about is the express start and starting up a new file.0021

So, we are going to create a new company.0026

So, when we open up QuickBooks for the first time you should come up with a screen that looks similar to this that says no company open.0028

So, the options that we have here is create a new company, open an existing one or open a sample file.0037

In this part we are going to create a new company file by clicking that.0043

Now, we are going to use the express start.0047

The express start is going to go through a quick little tutorial and ask you certain questions.0049

We can set up the company name. This is new, company, start.0054

The industry. When you choose the industry what we have is test control.0060

I do not know. We will just say whatever.0066

We can type anything we want. The type is going to be like general contract or general product base.0067

Or is it general service property member at home association.0076

Let us try as close as we can get. The industry for pest control maybe.0079

Now, I am going to call this new pest control company. OK, we kill your bugs.0084

The company type. We need to know what type of entity you have.0091

When you a set up a corporation. Are you an LLC or are you are single LLC?0095

Or are you a multimember LLC? What type of entity are you?0099

So, at this point this is going to be a small, single member LLC.0106

We are just going to use that. OK?0112

So, it is going to go on your personal income tax.0114

It is going to be treated like a prior.0118

Tax ID number. Hopefully you have got your new company with a tax ID number.0121

And then, of course, we will move on and say OK, we go on and we continue ask all this information here.0128

And making sure that we have everything set up. I did not have missed a digit.0138

So, what we can put in our contact information are address.0143

All that information here. I can say 123 Main Street.0147

So, it is going to be Main Street and we are going to say this is New city, CA 999, 1230.0154

We put in our number and our email address and our website and in so forth and we can create the company file.0169

Once we need that basic information or create the company file forced.0187

And we will ask this where we want to save it.0191

This is where I highly advise you to set up under your documents file or somewhere that is easily accessible.0195

All of your company data in file organizing.0203

If you create maybe under documents a folder of your company.0207

And under that you can have subfolders and organization that you can easily follow up.0213

But have 1 folder dedicated to your business and in which you can put things by year.0220

You can have a permanent file. You can have a permanent folder, a permanent file folder under that company folder etc.0227

And it will save this company file and we can add it there.0233

So, it went ahead and save it for us and it is going to ask us to go through all these different questions.0237

You, know what kind of people do we do business with? The preferences we are going to have.0245

These are all the preferences of we are actually adding to here.0257

It will say what kind of, you know, so we can say wow.0260

We are going to put in some information we want, import information.0263

We can put in some type of services, what things we sell.0267

We are going to do service on or non-word parts, whichever.0271

We are going to continue and say we are going to do services.0275

We can add those to us right now or we can do it later.0277

Then we can put them all in there.0281

We can start adding the text and services like consulting, you know.0282

This is pest control service and we charge $125 and we can start putting in these types of things.0286

Where we might be able to say chemical home screen that we offer and that is only $25 or whatever.0296

We have different products and services that we can sale here.0311

We set that up. So, then it will ask us items etc.0315

It is going to give us a quick little setup and ask us some quick little information.0320

We can start adding our bank accounts if we wanted to.0325

We have ABC bank and we can put in the account number.0327

And we can say the opening balance is $100.0333

And we will start that as of today and here it is. This is todays date and go forward with that.0337

And it can say do you want to order into a check so you can print it?0347

Yeah, I want to order or no I do not want to order those and so forth.0351

So, it is the express start gets you started asking you simple questions to get everything set up properly.0355

At this point, I am going to go ahead and say start working here because I want to start working.0364

And I want to look at my business I have just set up.0370

Now that you have done a basic business set up here.0376

It is going to open it up for you and give you a quick little tutorial.0380

If you want to it will give you some quick little hints on how to do things.0386

I am going to go ahead and get out of that.0391

And I want to show you some quick things on how to get you up and running now.0395

Now that your new company has been set up.0400

The first thing you really want to do is make sure that your chart of accounts is set up properly.0402

So, I am going to go to my chart of accounts on to the home screen or on our lists and choose chart of accounts.0408

We set up our bank account. Remember we are in the express start.0415

But with this I want to make sure that I have certain income set up.0420

It is not just sales income. I am a pest control company.0425

So, I want to add a new chart so I can add new things here.0427

In order to do that and we are going to get into little detail later.0433

But quickly you can look at your chart of accounts and I need to add some things.0436

I need to add pest control income. I need to add pest control or chemicals to my cost of goods sold here.0440

Hmm, automobile expense. Well that is not detailed enough for me.0450

I want to track my auto fuel. I want to track maintenance and repairs. I want to track a parking whatever.0453

So, I am going to add some sub-accounts. I want to add to that.0462

OK? So, it is not big enough.0466

So, I am going to go through and review my chart of accounts.0468

And make sure that I am going to write down how want structure it, what items I am missing. OK?0470

Now, with this we have already you know. I have got a bank account but I have got another bank account that I use.0478

More, this is just kind of a sidebar account. How much would be that new bank account.0484

And what am I going to do get all that taking care of and how I am going to add a new bank account and opening balance?0489

So, I have a savings account too with ABC bank.0497

This one happens to be my checking account so I am going to add 1.0500

So, in order to edit this one and then add a new one.0503

I am going to go ahead and highlight ABC bank because I want to change the name and say is checking.0507

So, I am going to go down to the bottom left corner and where it says account drop that up and say choose edit account.0513

And it is going to be ABC bank and it is checking. OK?0519

I will type in my change. I will say save and close and make that change.0528

Now, we want to add a new account. So, let us save this account.0532

So, there is couple ways I can do it. I can click on account and say new.0536

Or there is a quick button where I can just type control plus N and it will give it to you.0541

So, control plus. I can now add a new account in my chart of accounts.0548

And this happens to be a bank account that I am adding so I will choose bank, click continue.0555

This is ABC bank and that is savings. I will say save and close and says you want to set up online services?0562

It is a fake bank so I am not going to go ahead and do that. I will say no.0572

But, from here we can actually link our accounts directly to our bank.0578

I will show you how to do that in a lesson.0583

So, that is how we enter bank accounts.0587

I can go ahead and enter a bank balance for savings.0589

So, I am going to edit that one so I can say account and say edit that account.0593

With it open I can say well, my opening balance here. I am going to enter an opening balance.0597

Well, I have $23 in this bank as of todays date. OK?0602

And I will click on OK after entering that under there by open click on opening balance. I will save and close.0611

Now, I have $23 and my opening balance equity now is $123.0619

I want to show you how to add set up and start putting customers.0627

You might have your first customer of couple that already you are doing business for a year or two.0630

And now you are just implementing QuickBooks for the first time and you want to add in all your customers.0636

So, there is a couple of ways of doing it.0641

I can go to the customer center by using the home screen.0643

Or I can go to the customer center by using the customer icon bar and now I can add customers.0647

In this form I see that there is a universal form, uniform with vendors and employees forms as well.0654

But in the upper left corner it says new customer job.0662

So, if I click on that and drop it down I can click on new customer.0666

And it will give me a quick little new feature ability and give me little helpful hints.0670

As manager customers and vendors and item list. All in one place.0676

And you paste from excel and do some quick things and we can learn about that.0680

But, we are going to say OK, that is fine and thanks for the information.0684

I am going to enter only one customer and it is Sally Randall. That is our customer name.0687

So I am going to fill that out. I am going to say Sally Randall.0695

First name is Sally. Last name is Randall.0700

And, actually, there is no company. This is a personal name.0705

So, I will get rid of that and I can put in the address here. It is 456 Cypress Street in New City, California.0709

And I can put in there information, here and start adding information and all sorts of stuff.0730

I can put in additional information, how much we are going to charge up.0736

Right now I am just interested in setting up that customer, put in the phone number.0739

And clicking OK and adding that. Sally Randall is a new customer.0746

Now, with that new customer, Sally Randall has a second house maybe sort of a guest house maybe.0752

So, we are going to add a job that we are going to be doing. A pest control for a second house.0764

So, I am going to add a job. I am going to do the main house and guests house.0769

So, on the top left button where it says new customer job I am going to drop that down and I am going to say add a job.0774

It is going to get me a helpful hint here. I am going to say do not display anymore. I am tired of you.0783

And at this point I will say this is the main house for Sally Randall.0787

And this job information is we have been awarded this.0793

We are starting on Saturday to do their work. OK? To start doing the pest control.0798

I am going to add a second job to this one and this is going to be the guest house.0807

And we are proposing to do the guest house but they have not accepted yet.0813

And we are hoping to start that on Saturdays as well but we are waiting for that.0819

So I can add information to the customer here.0823

And this is the guest house and I have just added a job so now we have. Ups. Let me bring this one back.0826

Notice how I made that mistake when I added it I had main house highlighted.0833

So, it created a job within the job. The main house and the guest house.0837

I can keep that because it is a guest house which is a sub back of the main house.0841

But I really wanted to be underneath Sally.0847

So, to fix that error by highlight it you will notice this little diamond bar.0849

If I get the crossers on it, do a left click I can drag it over and move it over so it is sub-account of Sally Randall.0854

Now we do the same thing by the way when we add jobs is. I will show you on chart of accounts.0865

You can do the same thing with your chart of accounts by making things.0873

And dragging them to another area and making them sub-accounts in the same way.0876

I just made the savings account a sub-account of checking account by dragging that diamond underneath the checking.0883

So, any lists you can reorganize in that way would make them sub-accounts. OK, so we have done that.0892

Now, we want to go ahead and show you how to add a vendor.0899

So, see if you can figure this one out on your own. I bet you cannot.0903

After we have added customers it is very simple.0907

So, I am going to close down this customer window by going to window and I am going to close all.0910

I am going to go to my vendor center.0916

Now, we do not have any vendors but I do use AT and T for my cellular.0918

So, I am going to add AT and T as a vendor.0924

So, as I look at the vendor center it just looks just like my customer center.0927

So, I am going to click on new vendor and say new vendor and it is going to be AT and T wireless.0932

It is my company name. I will say AT and T wireless.0941

As you know I can always actually have the vendor name something else.0947

I can just say AT and T but the company could be AT and T wireless whichever.0950

And then we can add the address and so forth.0957

And we can put in the information we need to, the contact information. We can email.0961

All of that and when I write the check it will be AT and T wireless and I can change that as well if I would like.0966

So, I add that new vendor AT and T wireless.0972

And now when I get a bill from them I can go ahead and set it up and pay them and write a check to them.0976

There is so many different accounts that we can set up in QuickBooks.0986

And what I want show you at this point is, again back to our chart of accounts.0995

By going to list chart of account we are going to pull that up.0999

And we can look at the additional items that we can put in here.1002

When we add new accounts if I do a control N we have other types of accounts.1009

Let us look at those that can be included in our chart of accounts.1015

We have accounts receivable which we know of, current assets, other assets, Accounts Payable.1018

We have current liabilities and long term liabilities, cost to other income and other expenses.1025

What would that be? Other income or other expenses?1031

A lot of times our banks might pay us interest which really is a part of our core business.1033

So, we do not want track that is part of our income. This is would not be true.1040

But if we are generating interest from our banks we would create another income as interest income.1045

And we could put it as another income and which would be below our regular income statement.1052

So, it kind of separates it out. It is not going to gum up our true business income.1057

So, we can track things better. Same thing with other expenses.1063

We might have certain expenses that we do not want to include in our administrative expenses.1066

We can put those down as bad debts. We can put them in other categories, in the of expense categories.1073

So, those are other types of additional accounts there.1078

We have products as services but we are going to show you two.1086

So in our pest control business we are doing pest control. We might to termite.1091

We have a variety of products and services.1096

We might even sell a home remedy for people that do not want chemicals.1101

We can sell the orange oil or whatever to our customers who provide that services as well.1106

So, let us see how that looks like.1112

So, from a list menu we can choose item list and we can look at all of our products and services that we can set up.1113

For here I am going to choose under the item list at the bottom left I am going to say new.1124

I am going to sell a non-inventory part.1133

And this is going to be a home chemical or home spray for people that just want to buy raid from us, maybe.1141

And I can set that up. Let us say it is home spray. Home bug spray is what I will call it.1154

How is that? Home bug spray.1160

And with that we can sell it and I am going to sell it to them for $25.1165

And the income would be sales income at this point in time.1172

So, whenever I sale that it is going to be part of my sales income.1177

If I wanted to add a new one I can type in a new and say this is product income.1181

When I type in product income on our, I do not have it. It does not exist.1188

But, QuickBooks is so nice it says it is not on the account list. You want to set it up?1194

I say sure I do and it happens to be an income account as product income.1198

Great, put it in there for me.1203

I hit save and close and it adds it for me.1205

I can say OK and adds that particular non-inventory part that is a product that I can sell.1210

OK. So, we can add different products and services.1220

This is how we invoice our customers. This is how we generate our income.1223

There are all the products and services that we offer.1227

That is a quick overview on how we can set up and get started quick and easily.1233

Get your QuickBooks up and easy so you can begin tracking your income and your expenses and be more profitable in your business.1237

Thanks for visiting educator.com. We will see you next time.1246