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QuickBooks Online Edition Improvements
Intuit, Inc., the maker of QuickBooks, will improve its QuickBooks Online Edition Reporting, Sales Forms, and Company Administration features on Sunday, September 7, 2003. For more detail, see QuickBooks Product Updates below.

New QuickBooks Customer Manager
QuickBooks Customer Manager is the new information and task management
tool that will help you serve your customers better by taking the pain out of tracking customer information in multiple systems. This new software consolidates all of a client's critical customer information, and displays it on a single, easy-to-understand
screen.

You can use Customer Manager as stand-alone software, or with QuickBooks Financial Software and Microsoft Outlook to reduce duplicate data entry and to give you a complete view of your customers' information. Up to five installations of Customer Manager can be synchronized.

QuickBooks Customer Manager makes it easy for you to:

• Organize contacts by groups and categories, and filter and sort contact lists, to-do lists, project lists, or communications histories.
• Feel confident that any customer changes made in QuickBooks Financial Software or Outlook are automatically transferred to Customer Manager, and vice-versa.
• View and track recent communications history. Save and review all customer interactions from the single screen--including notes, emails, letters, appointments, and more.
• Toggle between both non-financial and financial data for any customer, with one click.

QuickBooks Customer Manager is expected to be available to order on 9/18/03. The suggested retail price is $79.95.

QuickBooks Merchant Account
Accepting credit cards does more than just provide your customers with a convenient way to pay. It can also expedite customer payments, increase sales, and reduce or eliminate billing hassles and costs.

With QuickBooks Merchant Account Service you can enter credit card payments directly in QuickBooks and have the credit card authorized online. The payment is then automatically deposited into your bank account and recorded in QuickBooks, making duplicate data entry a thing of the past. You can also store customer's credit card information in QuickBooks in a secure, encrypted format, saving you the hassle of re-entering the same data repeatedly.

The QuickBooks Merchant Account Service can be used with QuickBooks Online Billing. Use Online Billing to send invoices, statements, and estimates to your customer electronically. Then, when they pay you online, use the QuickBooks Merchant Account Service to collect and process their payment.

Used together, these features represent a powerful way to improve cash flow. They make it easy for customers to pay you and even easier for you to manage. Here's how the tools and services can be used in conjunction with one another for maximum benefit.

What Is A Merchant Account?
How Do I Get Set Up To Accept Credit Cards As A Customer Payment Method?
What You Should Know Before Processing A Credit Card Payment Using QuickBooks Merchant Account?
I Have A QuickBooks Merchant Account. How Do I Enter Credit Card Payments?
How Do I Account For Merchant Discount Fees?
How Do I Void A Credit Card Transaction Using QuickBooks Merchant Account?
How Do I Refund A Credit Card Transaction Using QuickBooks Merchant Account?
I Have A Non-QuickBooks Merchant Account. How Do I Record A Return And Credit Card Refund?

What Is A Merchant Account?
A merchant account is an account with a merchant account processor (or a financial institution acting as a processor) that enables you to enter and process credit card transactions. The advantage to accepting credit cards is that you receive your payment sooner and sales usually increase due to the convenience provided to the customer. The disadvantage is the fees you pay the merchant account processor. Most business owners find the benefits associated with credit card acceptance are greater than the costs.

How it works
You submit the customer's credit card information to the merchant account processor, which then authorizes the transaction. As each transaction is authorized, the money is transferred into a holding account with the merchant account processor. The money from the holding account is transferred to your designated bank account on a regular basis, either daily or weekly (depending on the merchant account processor's schedule).

The sales transactions that you have processed on a given business day are accumulated and deposited into your bank account as a single amount. In addition to your monthly bank account statement, you'll receive a statement from the merchant account processor that shows the total amount of each day's transactions during that statement cycle and the fees that were charged.

How Do I Get Set Up To Accept Credit Cards As A Customer Payment Method?
To enter and process credit card payments from your customers, you must have a merchant account. There are two ways to obtain a merchant account with QuickBooks.

• Use the QuickBooks Merchant Account Service. You apply for this service online from within QuickBooks. Once your account is set up, you can enter and process your customers' credit card payments right in QuickBooks.
• You can use a non-QuickBooks merchant account that you've signed up for through a financial institution. These services usually require the use of a credit card swipe terminal to process your customers' credit card payments. You can enter the information into QuickBooks manually as you would enter other QuickBooks transactions.

What You Should Know Before Processing A Credit Card Payment Using QuickBooks Merchant Account?
Before you process a credit card payment using QuickBooks Merchant Account Service, it's important to understand the following information.

Ship within 24 hours
Visa and MasterCard association rules require that you do not charge the cardholder for the purchase until the product has been shipped (as opposed to charging the customer on the date the product was ordered or authorized).

The QuickBooks Merchant Account Service offers both "card swiped" and "key entered" credit card processing.

Card-swiped transactions
For a "card swiped" transaction, the merchant swipes the credit card through a terminal or other device that reads the card's magnetic stripe. Card-swiped transactions qualify for a lower discount rate because they carry a lower risk of credit card fraud. If you do repeat business with a customer, you must swipe the credit card every time you process it to receive this lower rate for each transaction.

Whenever you are unable to swipe the card (for example, if the card's magnetic stripe is damaged), it's a good idea to imprint of the card and complete a sales slip. Imprinting the card proves that the card was physically present if a customer later disputes a charge.

You can sign up for card-swipe processing when you apply for the QuickBooks Merchant Account Service. If you already have a QuickBooks merchant account, you can sign up to swipe credit cards at any time.

Key-entered transactions
For a key-entered transaction, the credit card does not need to be physically present to authorize the transaction, as it does if you use a card reader. Instead, the information is processed over the Internet (as with the QuickBooks Merchant Account Service), by e-mail, over the phone, or by similar means. All you need is the customer name, the customer's address, the card number, and the expiration date.

This processing method gives you more flexibility (for example, you can accept credit card payments over the phone) and enables you to download your payment transactions directly into QuickBooks. However, using this method also means that you, as the user of the merchant account, have full responsibility for safeguarding against fraudulent transactions. To help reduce the amount of fraud, the QuickBooks Merchant Account Service performs an address verification check for each credit card transaction by comparing the customer address you enter with the credit card bank records.

Managing A Delay Between Accepting And Delivering An Order
If there is a delay between accepting and shipping an order, you can use a two-step process to charge your customer's credit card. The first step is to authorize the sale, which assures that the customer has the available funds. When you are ready to deliver the product or service, you complete the transaction by issuing a "delayed capture" of the original authorization.

It's important to realize that the initial authorization will be handled as a charge on your customer's credit card account. Being charged in advance can upset customers, and many merchants avoid "delayed capture" transactions for this reason.

Authorize the sale
Credit card authorizations typically expire after 7 days. If you submit a delayed capture for an expired authorization, you may incur higher fees for the transaction. In this case, consider waiting until you are ready to ship the order before charging your customer.

1. From the Customers menu, choose Accept Credit Card Payments and then Manage Merchant Account Service.
2. Click Transactions, and in the left pane click Manual Transaction.
3. From the Transaction Type drop-down menu, choose Authorization.
4. Complete the fields and click Submit.

Submit a delayed capture
Follow these steps when you are ready to deliver the product or service.

1. From the Customers menu, choose Accept Credit Card Payments and then Manage Merchant Account Service.
2. Click Transactions, and in the left pane click Manual Transaction.
3. From the Transaction Type drop-down menu, choose Delayed Capture.
4. Enter the original transaction ID. You can find this ID by using the Search feature or generating a report.
5. Click Submit.
6. Record the payment in QuickBooks.

Note: If you void a delayed capture, you must also void the corresponding authorization.

I Have A QuickBooks Merchant Account. How Do I Enter Credit Card Payments?
You enter credit card payments in the same way that you record other payments (such as payments by cash or check) — using either the Receive Payments or Enter Sales Receipts window.

• Receive Payments: If you are receiving payment for a sale that you previously entered on an invoice or statement, use the Receive Payments window to record and process the customer's payment.
• Enter Sales Receipts: If you are recording a sale and receiving immediate payment, use the Enter Sales Receipts window.

To process the payment online through the Merchant Account Service, select the "Process credit card payment when saving" option. Or, if you're using a card reader, click Swipe Card on the toolbar and follow the onscreen instructions.

Depositing Credit Card Payments
We recommend that you deposit credit card payments using the same schedule as your merchant account processor, usually daily or weekly. Although the merchant account processor deposits the money into your bank account, you need to record the deposit in QuickBooks as well so that you can properly reconcile your accounts. Deposit credit card payments the same way they show up on your bank statement, not as they appear on your merchant account statement.

If you use online banking, be sure that all your credit card transactions are deposited before you download your banking transactions.

1. From the Banking menu, choose Make Deposits.
2. In the Payments to Deposit window, select the payments you want to deposit, then click OK.
3. In the Make Deposits window, choose the account where the merchant account processor deposits your money.
4. Enter the date and an optional memo.
5. (Optional) If you already know your merchant discount fees and the fees are subtracted from the amount that your merchant account service deposits to your bank account, you can deduct those fees here by adding a line to your deposit in the Make Deposits window.
   • Select the Received From column, just below the last payment.
   • Enter the charge card company (such as the QuickBooks Merchant Account Service), which has been set up as an Other Name.
   • From the From Account drop-down list, choose your merchant account fees expense account.
   • Enter the fee amount as a negative number.
   This will decrease your deposit to reflect the net deposit amount.
6. Save the deposit.
7. (Optional) Print a deposit summary for your records.

How Do I Account For Merchant Discount Fees?

1. From the Lists menu, choose Chart of Accounts.
2. From the Account menu button, choose New.
3. In the New Account window, choose Expense from the Type drop-down list.
4. In the Name field, enter "Merchant Discount Fees."
5. (Optional) Enter a short description of the account in the Description field.
6. If you want to make this account a subaccount, select the "Subaccount of" checkbox. From the drop-down list, select the account that will be the higher-level account for this subaccount.
   For example, some businesses want to separate their credit card processor fees by the charge card type, such as Discover, Visa, etc. Other businesses make merchant discount fees a subaccount of Bank Charges.
7. From the Tax Line drop-down list, choose the appropriate tax line item.
8. Record your information about the new account.

How Do I Void A Credit Card Transaction Using QuickBooks Merchant Account?
You can void a credit card transaction on the day you process it. After that time, the transaction has been settled and cannot be voided.

To reverse a credit card payment after the settlement period, you must issue a credit to the customer instead.

There are no transaction fees for a void.

To void a payment (before the settlement period)

1. Display the customer's payment in the Receive Payments or Enter Sales Receipts window.
   To find a recent credit card payment, open the Receive Payments or Enter Sales Receipts window and use the Previous button to display previous payments.
2. From the Edit menu, choose Void Payment or Void Sales Receipt.

How Do I Refund A Credit Card Transaction Using QuickBooks Merchant Account?
To refund a credit card payment, you can issue the customer a credit. The credit will be processed using the QuickBooks Merchant Account Service. There are no transaction fees for processing a credit.

The steps you follow to issue a credit depend on whether you are entering the credit card information manually or swiping the card. You don't have to process the credit the same way you processed the original payment.

• Entering the credit card information manually
• Swiping the credit card

This option is available only if you have signed up to swipe credit cards.

Refunding A Credit Card Transaction -- If You Are Entering The Credit Card Information Manually

1. Display the Create Credit Memos/Refunds window.
2. From the Customer:Job drop-down list, select the customer or job for whom you are entering the return.
3. In the Item column, enter the name of the item being returned.
   If you charged sales tax when you sold the item, be sure the item is marked as taxable.
4. Click Check Refund in the toolbar.
5. From the Bank Account drop-down list, select the account that you use for your QuickBooks merchant account.
6. Be sure the "To be printed" checkbox is cleared.
7. Delete the check number and instead, enter a note indicating that this is a credit card refund. For example, enter "CC Ref."
8. Select "Process credit card payment when saving."
   If you already selected the customer's credit card type from the Pmt. Method drop-down list, the option title changes to reflect the type of credit card being used (for example, "Process MasterCard credit when saving").
9. Save the transaction.
10. In the Process Credit Card Credit window, confirm the credit card number and amount and click Send to issue the credit.
    When you receive notification that the transaction has been processed, click Print to print a receipt for the customer.

Refunding A Credit Card Transaction -- If You Are Swiping The Credit Card

1. Display the Create Credit Memos/Refunds window.
2. From the Customer:Job drop-down list, select the customer or job for whom you are entering the return.
   Note: If you leave the Customer:Job field blank, QuickBooks will fill it in automatically when you swipe the credit card. This can result in duplicate customer records if the customer exists in QuickBooks but the name on the credit card does not exactly match the name in QuickBooks.
3. In the Item column, enter the name of the item being returned.
   If you charged sales tax when you sold the item, be sure the item is marked as taxable.
4. Click Check Refund in the toolbar.
5. From the Bank Account drop-down list, select the account that you use for your QuickBooks merchant account.
6. Be sure the "To be printed" checkbox is cleared.
7. Delete the check number and instead, enter a note indicating that this is a credit card refund. For example, enter "CC Ref."
8. Click Swipe Card on the toolbar and follow the onscreen instructions. You can swipe any card type that your merchant account is set up to accept.
   If the card's magnetic stripe is read successfully, the card reader beeps once and displays a green light. The card number, cardholder name, and expiration date are sent to QuickBooks. The "Process credit card when saving" box is selected automatically.
9. Save the transaction.
10. In the Process Credit Card Credit window, confirm the credit card number and amount and click Send to issue the credit.
11. When you receive notification that the credit has been processed, print two copies of the receipt. Have your customer sign the "Merchant Copy." Your customer keeps the "Customer Copy."

I Have A Non-QuickBooks Merchant Account. How Do I Record A Return And Credit Card Refund?
Use these instructions for recording a credit card refund, if you are not using the QuickBooks Merchant Account Service.

Note: A return/refund transaction is not usually charged as a separate item against your bank account. Instead, it is included with the business day's credit card payment transactions that are deposited into your bank account by the merchant account processor. By following these instructions, the return/refund transaction is recorded in your QuickBooks bank account as a separate transaction. Be sure to keep this in mind when you reconcile your bank statement.

1. Display the Create Credit Memos/Refunds window.
2. From the Customer:Job drop-down list, select the customer or job for whom you are entering the return.
3. In the Item column, enter the name of the item being returned.
   If you charged sales tax when you sold the item, be sure the item is marked as taxable.
4. Enter a refund for the total value of the return, including sales tax.
   • Click Check Refund on the toolbar to display the Write Checks window.
   • From the Bank Account drop-down list, choose the bank account that is used by your merchant account processor for your credit card transactions.
   • Clear the "To be printed" checkbox.
   • Delete the check number. In its place, enter a note to indicate that this check is actually a credit card refund, such as CC Ref.
   • Save the check.

Defining Preferences
Using Classes
Using Lists

Defining Preferences
QuickBooks provides more than 100 preference options, allowing users to customize how the software looks and acts and to specify the functions that are available. Thus, to a certain degree, QuickBooks can be set up to meet the unique needs of the company and the personal work styles of the users. To define preferences, choose “Edit” from the menu bar and “Preferences.” Icons for the various areas for which preferences may be established appear on the left of the “Preferences” window.

Each preference area has tabs for “My Preferences” and “Company Preferences.” “Company Preferences” apply to all users of the application and can be made only by the QuickBooks Administrator and while in single-user mode. “My Preferences” apply only to the individual user who sets them. (“My Preferences” are not available for all areas.)

To change “Company Preferences,” all users except the administrator must be logged off and QuickBooks must be set to single-user mode. All preferences can be returned to their default settings by clicking the default button in the “Preferences” dialog box. Most preferences are self-explanatory; however, many have an impact on other areas of QuickBooks. The following paragraphs discuss each preference and provide guidance for selecting them.

Accounting
In the “Accounting” preferences dialog box, the following may be set:

• Use Account Numbers. Selecting this option may make it easier to locate individual accounts when there are numerous accounts and to identify the type of account. When this option is selected, account numbers will be used in addition to account names.
• Use Audit Trail. When this option is activated, QuickBooks keeps a record of all changes made to transactions. An audit trail report can then be printed that shows each transaction and any changes that were made while the audit trail preference was activated.

Note: We recommend that the audit trail preference be enabled. Doing so provides reviewers with an account activity history, allowing them to quickly determine why an account may have changed.

• Require Accounts. This option prevents a transaction from being recorded without assigning it to an account. If this preference is not selected, unassigned transactions will be posted to the “Uncategorized Expenses” or “Uncategorized Income” accounts.

Note: While it generally is a good idea to require accounts, it may be preferable to allow transactions to be posted without specifying an account. That way, users who are not familiar with the chart of accounts or are unsure where to post a transaction can still record the transaction and, rather than guess and possibly post it to the wrong account, leave it unassigned. Later, the your QuickBooks advisor or another reviewer can easily locate all unassigned transactions and advise you on how you assign them to the proper accounts

• Use Class Tracking. This option allows users to group items and transactions for reporting (including department, location, or business type). Reporting by class may be better for the user than creating a large chart of accounts with separate subaccounts. QuickBooks 2003 allows the user to be prompted to assign classes.
• Show Lowest Subaccount Only. This option allows the user to see the subaccount only in transaction entry. This may be useful since the field display length is limited and otherwise would require the user to scroll through the field to view the entire account number or name.
• Closing Date. This option allows the administrator to set a password-protected closing date. When this is set, QuickBooks requires the password to make any changes to periods that have been closed.

Note: In versions of QuickBooks prior to 2002, the closing date was entered by clicking on “Set Up Users” from the “Company” menu and clicking on the “Closing Date” button in the “User List” dialog box. This button is still in the “User List” dialog box; however, when users click on the button they are directed to the “Accounting” preferences dialog box.

• Automatically Assign General Journal Entry Number. When this option is activated, QuickBooks assigns a number to a general journal entry. If the box is unchecked, the journal entry number will be blank and must be manually entered.

Note: The automatic journal entry feature is not available in versions prior to QuickBooks 2002.

Checking
In the “Checking” preferences dialog box, the user can tell QuickBooks to initially place the cursor at the payee field when checks are being written. Thus, the payee will be the first item entered when a check is written or a bill is paid. Other “Checking” preferences include printing account names on check vouchers, warnings about duplicate check numbers, changing the check date to the print date, and activating autofill of the payee account number. QuickBooks 2001 and later versions allow the user to set default accounts for several forms in the “Checking” preferences dialog box, including “Write Checks,” “Pay Bills,” “Pay Sales Tax,” etc. QuickBooks automatically opens the form with the default account chosen.

Desktop View
How the desktop is shown can be changed in the “Desktop View” preferences dialog box. Users can change the QuickBooks color scheme, add sound, etc.

Note: Desktop view was in the “General” preferences dialog box in Version 2000.

Finance Charge
In the “Finance Charge” preferences dialog box, the user can make changes to the way the company assesses finance charges. The user can specify the interest rate to charge, the minimum finance charge, the grace period allowed before finance charges are imposed, the account to which the finance charge should be recorded, when QuickBooks should begin calculating finance charges, and whether to assess finance charges on finance charges.

General
“General” preferences that can be changed include the time and year formats and whether to update name information when saving transactions. QuickBooks default is to prompt the user to update name information when list items are changed during transaction entry. (For example, addresses of customers, vendors, or employees on the item list may be updated during transaction entry.) The user may select the “Never update name information when saving transactions” so the option is not available.

Integrated Applications
In the “Integrated Applications” preferences dialog box, users can control the way integrated applications are allowed access to the QuickBooks company file. They can allow or deny individual applications to access QuickBooks and they can choose whether or not QuickBooks will notify the user before running any application whose certificate has expired.

Note: The “Integrated Applications” preference is not available in QuickBooks 2001 and earlier versions.

Jobs and Estimates (QuickBooks Pro, Premier, and Premier-Accountant Only)
In the “Jobs and Estimates” preferences dialog box, progress invoicing and estimating can be turned on and job status terminology can be changed. The user also can choose to have QuickBooks warn about duplicate estimate numbers and to print items with zero amounts.

Payroll and Employees
Numerous payroll preferences can be established.

Purchases and Vendors
Inventory/purchase order tracking is turned on from the “Purchases and Vendors” preferences dialog box. Other preferences include warning if inventory is too low, warning about duplicate purchase order numbers, specifying the date bills are due, and warning about duplicate bill numbers. The QuickBooks user also can determine whether to automatically use discounts and credits.

Note: Deciding whether to automatically use discounts and credits is not an option in the “Purchases and Vendors” Preferences in QuickBooks Version 2000 or earlier.

Reminders
In the “Reminders” preference dialog box, users can designate how many days in advance to be reminded to pay bills, print forms, print checks, deposit money, or enter memorized transactions. Personal preferences include whether to show the reminder list when a company file is opened.

Reports and Graphs
In the “Reports and Graphs” preferences dialog box reports may be displayed on an accrual or cash basis. The aging date for reports and report formatting preferences also may be changed. In addition, users can classify accounts in the statement of cash flows.

Sales and Customers
Shipping methods, markup percentages, and FOBs can all be changed from the “Sales and Customers” preferences dialog box. The user also can choose to track reimbursed expenses as income, automatically apply payments, have QuickBooks warn about duplicate invoice numbers and choose to track price levels.

Sales Tax
The sales tax feature is turned on in the “Sales Tax” preferences dialog box. The user also can make changes to how QuickBooks handles sales tax. Users can specify the sales tax payment frequency (e.g., monthly, quarterly, or annually), the most common sales tax, the sales tax due date, and whether QuickBooks should mark taxable items when invoices are printed. Default sales tax codes can be set to allow users to track why sales are taxable or nontaxable.

Note: Sales tax codes are not available in versions of QuickBooks prior to 2002. They replace the taxable and nontaxable status for customers and sales items.

Send Forms
In the “Send Forms” preference dialog box, users can change the default cover letter for invoices, estimates, or statements they send by fax or email. QuickBooks Pro and Premier users also have the option to change the cover letters for estimates they send.

Note: The “Send Forms” preference is not available in QuickBooks 2000 and earlier versions.

Service Connections
In the “Service Connections” preference dialog box, users can specify how they log in to QuickBooks Business Services. There are two choices: “Automatically connect without asking for a password” or “Always ask for a password before connecting.” The checkbox “Allow background downloading of service messages” may be checked to automatically download service updates.

Note: The “Services Connections” preference is not available in QuickBooks 2001 and earlier versions.

Spelling
Spell check can be turned on or off in the “Spelling” preferences dialog box.

Note: The “Spelling” preference is not available in QuickBooks 2000 and earlier versions.

Tax: 1099
1099 tracking is turned on in the “Tax: 1099” preferences dialog box. The user also can assign general ledger accounts to 1099 categories and change 1099 threshold amounts.

Time Tracking (QuickBooks Pro, Premier, and Premier-Accountant Only)
Time tracking is turned on from the “Time Tracking” preferences dialog box. The user should enter the first day of the work week in this screen if the preference is selected.

Using Classes

What are Classes?
QuickBooks allows users to create classes to classify income and expenses by department, business office or location, separate properties owned, or any other meaningful breakdown of a business. Because users can generate reports by class, the use of classes may be better than creating a large chart of accounts with separate subaccounts for each group. For example:

• A contractor might create a class for residential work and another class for commercial work and assign each transaction to one of those classes. Then, at the end of an accounting period, the contractor could create separate reports for the residential and commercial parts of the business.
• A retail company could use classes to track income and expenses at each store location or to track income and expenses for each product line or department (e.g., garden, hardware, tools).
• A restaurant could use classes to track income and expenses by restaurant location, profit centers (e.g., restaurant and bakery), or type of business (e.g., catering and restaurant).

Creating Classes
Before classes can be created and used, the preference to use classes must be enabled. To do so, choose “Preferences” from the “Edit” menu, and select the “Accounting” icon from the list of icons that appear on the left side of the “Preferences” window. Then, check the “Use class tracking” box in the “Company Preferences” tab. After the preference is enabled, create classes by choosing “Class List” from the “Lists” menu, selecting “New” from the “Class” button, and entering the class name. (If it is a subclass, check the box indicating it is a subclass and select the parent class.) Using classes is fairly straightforward—simply specify the appropriate class each time a transaction is entered in QuickBooks.

Using Lists

What are Lists?
Lists are the framework of QuickBooks and are used to fill out most QuickBooks forms. For example, to create an invoice, choose the name of one of the customers from the “Customer:Job List” and QuickBooks enters all the information on the form. This saves time, prevents typing errors, and ensures transactions are entered consistently. Available QuickBooks lists include the following:

• Chart of Accounts List—Shows all general ledger accounts.
• Item List—Defines the company’s products and services.
• Price Level List—Tracks price levels assigned to an item.

Note: QuickBooks Pro 2001 or later is needed to track price levels.

• Sales Tax Code List—Tracks the sales tax codes assigned to items and/or customers.

Note: QuickBooks Pro, Premier, or Premier-Accountant 2002 or later is needed to track sales tax codes.

• Payroll Item List—Keeps track of payroll information.
• Class List—Helps keep track of revenues and expenses by departments, locations, or other criteria.
• Customer:Job List—Keeps track of customer contact information.
• Vendor List—Manages vendor contact information.
• Employee List—Keeps track of employee contact information.
• Other Names List—Keeps track of a list of names that do not fall into other categories.
• Customer and Vendor Profile Lists—Include several sublists such as customer type, vendor type, terms, etc.
• Templates—Contain the various templates that can be used to generate invoices and statements.
• Memorized Transaction List—Recalls frequently entered transactions that users have memorized for future use.

Creating Lists
Lists are easy to set up in QuickBooks, but some, such as the chart of accounts, item, and class lists, require careful planning. An entry may be added to a list either ahead of time or while actually working on a transaction. For example, to invoice a customer, the customer may be added to the “Customer:Job List” before the invoice is created, or the invoice may be created first, with the customer information added to the list when QuickBooks prompts the user to do so.

To add a new entry to a list before entering a transaction, select “Lists” from the menu bar and choose the list to which the entry is to be added. Click the button in the bottom-left corner of the list window that appears (in the “Item List” window the button is labeled “Item,” in the “Vendor List” window the button is labeled “Vendor,” etc.), click “New,” and fill in the requested information.

The list windows also allow users to edit existing list information. For example, during the “EasyStep Interview,” balances may have been entered for customers and vendors. More information, such as addresses, phone numbers, and credit limits, can be added to those customer and vendor profiles by clicking on the button in the bottom-left corner of the list window and selecting “Edit.”

Note: When adding vendors to the “Vendor List,” remember that the IRS requires information returns to be sent to many vendors who provide services to the company. For all 1099 vendors, be sure to enter the vendor’s correct address and federal identification number and check the “Vendor eligible for 1099” checkbox.

Organizing Lists
When a company is first set up in QuickBooks, each list may have only a few entries. As QuickBooks is used, however, some lists may grow to hundreds of entries. For example, each time a check is written to a new vendor, the “Vendor List” grows by adding the new vendor to the list. In such cases, it may be necessary to organize the lists to use them more efficiently. For example, entries on a list can be made inactive. Therefore, the entry does not appear on any drop-down lists in activities but it is still in the system. Display the appropriate list, right-click the entry, and choose “Make Inactive.”

Another way to organize a list is to move the entries. By default, all list entries appear in alphabetical order. To organize a list differently, display the list to be reorganized, move the mouse pointer so that it touches the small diamond in front of the entry to move, and, while holding down the mouse button, drag the entry up, down, left, or right to its new location. To move an entry with all of its subentries, drag the main (parent) entry. To make a subentry a main entry, drag it to the left. To make a main entry a subentry, drag it to the right.

Note: The vendor list cannot be manually reorganized in this way.

Users may want to sort a list in a particular way. For example, in the Customer:Job list, the list can be sorted by balance. To do so, click the “Balance” column heading. Click the “Balance” column heading again to toggle the sort between descending and ascending order. Sorting the list by balance in descending order will show customers who owe the most money at the top of the Customer:Job list. One click on the column title will return the list to the default order.

Reporting Improvements:

• On summary reports, you can compare current data with data from the previous period, the previous year, and more.
• On aging reports, you can show overdue bills as of any date, and
• On aging detail reports, you can add columns for customer or vendor contact information.
• On all reports, you can control the way numbers are displayed by removing cents, coloring negative numbers in red, and more.
• On Budget vs. Actuals reports, you can compare budgeted, over budgeted, and remaining amounts.
• On Customer, Vendor, or Employee Contact reports, you can limit the report to show only list items created or modified within date ranges you choose.

Sales Forms Improvements:

You can control whether credits are automatically applied to the customer's next invoice. If you use the QuickBooks Online Edition Merchant Account Service, you can enter voice authorization codes more easily by entering the code directly into the Credit Card Transaction Status window.
You can more quickly record payments received from customers. If you know the invoice number, just click "Select by Invoice #" on the Receive Payments screen. When you type the number, the appropriate customer's name automatically appears.

Company Administration Improvements:

• You can create "things to do" or messages for yourself or other users that will appear on your QuickBooks Online Edition home page.
• You can have your QuickBooks Online Edition home page alerts copied to your email address.
• You can quickly find target words on certain pages. Use the "Find Text on Page" button on any report screen, the Activity Log, or the Audit Trail.

Enhanced Setup Assistance For New Users:

A new suite of introductory information can help new users get started. Either click "Start Here!" from the home page, or click "Welcome to QuickBooks Online Edition" from the Help Overview.

To learn more about QuickBooks Online Edition, click http://oe.quickbooks.com/learn/?sc=QBC-V51-HME-LRN

QuickBooks Features, Capabilities, And Limitations
Users need to understand the differences between QuickBooks, QuickBooks Pro, QuickBooks Premier, and QuickBooks Premier-Accountant, and Quicken. Users also need to understand the differences between the different versions of QuickBooks, QuickBooks Pro, and QuickBooks Premier.

Distinguishing Between Different QuickBooks Products
Users should understand the key features of each of the following products:

QuickBooks. QuickBooks is a double-entry accounting program intended for use by small businesses. It should not be used to track personal finances. Clients can use QuickBooks to perform such activities as creating invoices, entering cash sales, receiving payments, creating purchase orders, paying bills, tracking inventory, paying employees, processing sales taxes, reconciling bank statements, and accumulating income tax information.

QuickBooks Pro. QuickBooks Pro is essentially the same software as QuickBooks but includes some additional features. Those include time tracking and billing, advanced job costing, estimating, integration with Microsoft Word and Excel, and integration with other software applications. QuickBooks Pro also allows up to five users to access a company file at the same time.

QuickBooks Premier. QuickBooks Premier is essentially the same software as QuickBooks Pro, but it includes some additional features. Those include Expert Analysis, easier reconciliation reporting, more journal entry options, and QuickBooks Remote Access service.

QuickBooks Premier-Accountant. QuickBooks Premier-Accountant is customized for accounting professionals with multiple QuickBooks clients. QuickBooks Premier-Accountant is essentially the same software as QuickBooks Premier, but it includes some additional features. Those include journal entry auto-reverse functionality and more flexibility with the QuickBooks Remote Access service.

QuickBooks Premier-Contractor. QuickBooks Premier-Contractor is customized specifically for construction contractors. QuickBooks Premier-Contractor is essentially the same software as QuickBooks Premier, but it includes some additional features. It simplifies estimating, invoicing, job costing, and paying bills. It also includes additional contractor-specific reports.

Note: The file structure is the same in QuickBooks, QuickBooks Pro, QuickBooks Premier, QuickBooks Premier-Accountant, and QuickBooks Premier-Contractor. Therefore, data can be shared easily between the programs.

QuickBooks Enterprise Solutions. QuickBooks Enterprise Solutions has not only all the features of QuickBooks Pro, Premier, and Premier-Accountant, but also includes some additional features. QuickBooks Enterprise Solutions is designed for businesses that have outgrown QuickBooks. It has greater capacity, improved performance, and the ability to support up to 10 simultaneous users.

QuickBooks Online Edition. QuickBooks Online is an accounting program intended for use by small businesses with basic accounting needs. It is accessed via the Internet and is available by monthly subscription. Please refer to our August QuickBooks Newsletter for detail on the Online Edition.

Quicken. Quicken should be used to track personal finances. It is not designed for use by businesses. Business clients using Quicken may be interested in upgrading to QuickBooks. Clients that need to perform functions such as preparing invoices, processing accounts receivable or accounts payable, or tracking inventory should use QuickBooks, QuickBooks Pro, QuickBooks Premier, or QuickBooks Premier-Accountant rather than Quicken.

Distinguishing Between Different Versions of QuickBooks
More than likely, users may be using older versions of QuickBooks. The following information summarizes the key differences between the various versions.

DOS Versions. There are three DOS versions of QuickBooks—1.0, 2.0, and 2.1. Features added to Version 2.0 were job costing, “QuickFill,” and “QuickZoom.” Version 2.1 is the last DOS version of QuickBooks and added cash basis reporting and the ability to export financial data to TurboTax tax preparation software.

Windows Versions. QuickBooks 2003 is the eleventh version of QuickBooks for Windows. The Windows versions of QuickBooks and QuickBooks Pro include:

• QuickBooks 2.0. The first Windows version is virtually the same program as QuickBooks DOS 2.1, with the addition of graphical interface.
• QuickBooks 3.0. Several features were added to QuickBooks 3.0, including inventory, purchase orders, an audit trail, and support for multiple sales tax rates.
• QuickBooks (Pro) 3.1. QuickBooks added an integrated payroll feature to Version 3.1. In addition, Version 3.1 is the first version of QuickBooks Pro. Version 3.1 of QuickBooks Pro included features such as estimating, time tracking, and advanced job costing.
• QuickBooks (Pro) 4.0. The “EasyStep Interview” and the ability to prepare tax forms were added as features in QuickBooks (Pro) 4.0.
• QuickBooks (Pro) 5.0. QuickBooks added the layout designer, the “Navigator,” and online banking. QuickBooks Pro added progress invoicing.
• QuickBooks (Pro) 6.0. QuickBooks added the “Online Payroll Tax Service” and the “Online Direct Deposit Service.” Multi-user capabilities were added to QuickBooks Pro.
• QuickBooks (Pro) 99. QuickBooks added the “Statement of Cash Flows” report and several other features to make QuickBooks easier to use. QuickBooks Pro added the ability to integrate QuickBooks data with Microsoft Word and Excel.

  Note: Intuit stopped supporting QuickBooks Versions 99 and earlier on April 30, 2002. (Version 99 with Tax Table Service retired December 31, 2002.)

• QuickBooks (Pro) 2000. QuickBooks 2000 added business centers, a report finder, decision tools (such as depreciation information), tips for using QuickBooks, a new navigation bar and menus, and many other features designed to make QuickBooks easier to use. QuickBooks 2000 also added new services, including postage printing, credit card authorization, and company Website design.

  Note: Intuit will retire and stop supporting QuickBooks Version 2000, effective April 30, 2003. Support will still be available for QuickBooks 5.0 and 4.0, release M12A, for Macintosh.

• QuickBooks (Pro) 2001. QuickBooks (Pro) 2001 added the sales form spell check, faxing and emailing estimates (Pro) and invoices, multiple product and service price levels (Pro), default customer price levels (Pro), credit card acceptance, online collections, printing of time sheets (Pro), and other features designed to make QuickBooks easier to use. Improvements were made with navigation (return of the icon bar), online banking, and payroll services. Reports changes include easier customization and the addition of batch printing and time and basis stamps.

• QuickBooks (Pro, Premier, and Premier-Accountant) 2002. QuickBooks (Pro, Premier, and Premier-Accountant) 2002 added a smarter find feature, comprehensive help and support center, improved customer payment tracking, improved customization of email forms, improved sales tax functionality, and a new credit check service. QuickBooks Pro added multiple and duplicate estimating, password protect close date, and improved integration with software applications. This is the first version of QuickBooks Premier, which includes not only all the features of QuickBooks Pro, but also includes Expert Analysis, more specialized report templates, remote access service, and more journal entry options. In addition, 2002 was the first version of QuickBooks Premier-Accountant, which includes not only all of the features of QuickBooks Premier, but also includes journal entry auto-reverse functionality and more flexibility with the QuickBooks remote access service.

• QuickBooks (Pro, Premier, and Premier-Accountant) 2003. QuickBooks (Pro, Premier, and Premier-Accountant) 2003 is the most recent. The features added include more printing options for forms, improved class tracking, improved help screens, advanced options for backing up data, and easier budgeting. QuickBooks Pro added more customization options for forms, more form templates, and improved customer statements. QuickBooks Premier added the ability to create forecasts and business plans, and the ability to track sales orders and inventory assemblies. Improvements were made to the Expert Analysis tool. QuickBooks Premier-Accountant added the ability to view multiple journal entries, reports with one-line transaction summaries, and the ability to track and print change orders.