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New QuickBooks 2004 and Enterprise 4.0 Product Release 5
Release 5 for QuickBooks 2004 is now available. Release 5 covers all editions of QuickBooks 2004 (Windows Operating System) including the Basic, Pro, and Premier Editions, and Enterprise Solutions. Release 5 includes all changes made to QuickBooks 2004 since it was first released. Release 5 is the first public update this year.

Some of the latest changes in this release include:

• Updates to payroll functionality
• Availability of the 12-month free trial of Remote Access in Enterprise Solutions
• Import/export improvements

Installing Release 5 will not affect your data file. Data files created in Release 5 can be opened and used with any QuickBooks 2004 Release.

For more detailed information on Release 5, refer to the QuickBooks Product Updates section of this Newsletter.

Sunset of QuickBooks 2001 Reminder
On April 30, 2004, Intuit discontinued live support for QuickBooks 2001 for Windows, subject to certain exceptions. QuickBooks 2001 is being retired or "sunsetted". Sunsetting older products, a common practice in the software industry, allows Intuit to focus their resources on supporting their more current products, which are used by the vast majority of QuickBooks customers.

Also affected are QuickBooks Pro 4.0 for Mac and several services related to QuickBooks 2001 for Windows and QuickBooks Pro 4.0.

If you upgrade to QuickBooks 2004, QuickBooks will automatically convert your QuickBooks data to the new version.

Sunset of Old QuickBooks Affect Some Intuit Payroll Services
QuickBooks 2000 and 2001 users, who use the QuickBooks Do-It-Yourself Payroll service, should consider updating to the latest release of QuickBooks. The sunsetting of QuickBooks 2001 may affect your payroll. Refer to the New QuickBooks 2004 and Enterprise 4.0 Product Release 5 Payroll changes and improvements in QuickBooks Product Updates.

Coming Soon: New QuickBooks Do-It-Yourself Payroll Services
QuickBooks is introducing a new service in addition to what is currently know has QuickBooks Do-It-Yourself Payroll, expanding the service from one to three services. One of these services will be specific for professional accountants. In addition to the current features of Federal and State tax table updates and Federal form printing and updates, the new services will include State Form updates and printing, Worker Compensation Tracking, and Net-to-Gross Calculations.

Scheduling Regular Backups of Your Data
Recommended Backup Routine
Backing Up Your Data

Scheduling Regular Backups of Your Data
You have two options when scheduling backups of your data on local media:

Scheduling automatic backups

Scheduling regular backups
For the backup to take place, the computer you use to run QuickBooks must be on but the data file you want to back up cannot be in use (you can be working in a different data file, though). Be sure to schedule your backups accordingly.

Recommended Backup Routine
Back up your data at the end of each session or each day. You can:

• Have QuickBooks back up your data file when you close it with no prompting from you.
• Manually back up your data. You can even have QuickBooks remind you to back up your company file each time you close it (or at whatever interval is convenient for you).
• Schedule automated daily backups either to your local media or to a remote site by using the Online Backup service (for more information, click "Tell Me More" in the QuickBooks Backup window.).
• A combination of the above (for example, schedule daily backups but manually run the backups you take offsite).

Which should I choose?
If you back up locally and your hard disk has more than one drive, back up onto a different drive from the one where you keep your working data. If you have only one hard disk drive, back up onto a removable medium such as 3.5 inch diskettes, Zip disk, CD-ROM or tape. Remember that an important purpose for backing up data is to protect against a hard disk failure.

1. Each day, back up onto removable media to keep in the office. (If you're using 3.5 inch diskettes that need to be formatted prior to backup, do not choose Quick Format. Instead, choose Full Format.) For more information on how to format a 3.5 inch diskette, see Backing up your data.
   
   Tip: The first time you do a daily backup, we suggest that you make several sets of backup disks and label the sets "QuickBooks Backup Monday," "QuickBooks Backup Tuesday," etc.
   
2. At least once a month, make a backup copy to keep off your premises.
   
   Tip: For your monthly backups, you may want to alternate between two sets of disks. If disaster strikes your office, you'll want to have a reliable record of your data to fall back on.
   
3. At the end of your fiscal year, make a copy of your data to keep off-premises.

Backing Up your Data
Back up your QuickBooks company files daily. Backup copies are important insurance-if you should lose data for any reason, you can restore data from your backup copy
 
You can choose to back up manually, have QuickBooks back up your data file when you close it with no prompting from you, or automate your Backup Routine using the Online Backup service (for more information, click "Tell Me More" in the QuickBooks Backup window.), or schedule regular backups to local media.

Which should I choose?

1. If you choose to back up locally, select the storage media on which you will back up your QuickBooks company. Common choices are 3.5 inch diskette, Zip disk, CD-ROM or tape.
   
   If you are backing up to a 3.5-inch disk, put the disk in a disk drive.
   
2. From the File menu, choose Back Up and make sure the Back Up Company File tab is selected.
   
3. (Optional) If you want to change the name or location that QuickBooks suggests for the backup file, type your changes in the Filename and Location fields. If necessary, click Browse to browse to the new location.
   
4. (Optional) Set backup defaults. Click Set Defaults and specify the desired defaults for your manual backups.
   
5. (Optional) Select backup options. Click Verify data integrity to verify your data before backing up. If you've selected to back up to floppy disks, select Format each floppy disk during backup to format the disks as you back up, instead of before.
   
   If the disk needs to be formatted prior to backup, do not choose Quick Format. Instead, we recommend that you fully format your disk
   
   Caution: Even if the disk is labeled as preformatted, it's a good idea to fully format a new disk before using it. Sometimes new disks can be stripped of their formatting during shipping.
   
6. Click OK.

If you need more than one disk: QuickBooks asks you to insert an additional disk as each disk fills up. Be sure to label the disks so that you'll know which one was first, which was second, and so on. This will help you if you ever need to restore the data from the disks.

What the Backup command does
The QuickBooks Backup command does not simply copy the data for your QuickBooks company. Instead, it compresses the data into a compact file that is smaller than your company file. To open a backup file, choose Restore from the File menu.

How Can Several Users Use QuickBooks Simultaneously?
How Do I Set Up QuickBooks Pro to Use Multi-User Mode?
Can QuickBooks Run on a Network from a Single Copy?

How Can Several Users Use QuickBooks Simultaneously?
Two or more individuals can use QuickBooks simultaneously using the Multi-user mode. Multi-user mode is available only in QuickBooks Pro, Premier, and Enterprise Solutions editions.

QuickBooks Pro and Premier allow up to five users to work with a company file at the same time, but multiple copies of QuickBooks Pro or Premier must be purchased.

QuickBooks Enterprise Solutions allows up to 10 users to work with a company file at the same time. QuickBooks Enterprise Solutions comes with a 10-user license.

How Do I Set Up QuickBooks Pro to Use Multi-User Mode?
When running on a network, QuickBooks Pro has the ability to allow up to five users to work in the file at the same time. When users are allowed to work simultaneously in the same company file, the file is in multi-user mode.

Follow these steps to set upa multi-user environment:

Can QuickBooks Run on a Network from a Single Copy?
No. QuickBooks is a multi-user program as opposed to a "true" network program. Network programs are typically installed on a single server or workstation. In contrast, every QuickBooks user in the network must have a separate, licensed copy of QuickBooks installed on their local workstations.

The company data file, however, can be stored on a single server or workstation. QuickBooks allows up to five users simultaneous access to the data file across the network.

Note: QuickBooks Basic and Standard versions do not have the multi-user capability.

QuickBooks Form Templates
Customizing Business Forms
Memorizing a Transaction

QuickBooks Form Templates
You can browse through Intuit's gallery of free, pre-designed form templates for QuickBooks 2003. You'll find forms that work for your business.

Form templates are available for invoices, purchase orders, sales receipts, credit memos, sales orders, statements, and estimates. Examples using watermarks, remittance slips, rounded corners, and other customized options are included. In addition, Intuit has created some special examples for common industries. If you use forms with Intuit window envelopes, they have templates for those too.

Once you download these templates into QuickBooks, they will appear in the list of templates in your company file. You can add your own personal touches and you're on your way to presenting unique forms that are right for your business.

You can access these templates at http://templategallery.quickbooks.com/Forms.asp.

Customizing Business Forms
Creating custom business forms is made up of two basic concepts, customizing and designing. You customize the forms by specifying the fields and columns you want on the form in the Customize window. You design the layout of forms with the Layout Designer window in which you can move and resize objects using the mouse.

1. Display the form.
   
2. In the Form Template drop-down list at the top of the form, select Customize.
   
3. In the Customize Template window, select the template you use for this form.
   • If you want to save changes to the existing template, click Edit.
   • If you want to create a new template based on the original, click New and enter a template name.
4. Click Layout Designer.
   • In the Layout Designer window, you can make changes such as field shape, size, location, and font. For more information on layout options, click Help in this window.
     
5. Click OK.

You can also access the form templates from the List menu:

1. From the QuickBooks Lists menu, choose Templates.
2. In the Templates list, select the template you want to modify.
3. Click Templates at the bottom of the window, and choose New if you are creating a new template, or choose Edit if you want to modify an existing template.
4. Click Layout Designer.

Memorizing a Transaction
If you have transactions that occur often-such as monthly bills or recurring invoices for clients-you can save time by memorizing the details of the transactions. Once you memorize a transaction, you can have QuickBooks reenter it for you at any time. You can even have QuickBooks automatically enter the transaction at intervals you specify.

You cannot memorize the following transactions:

• Receipt or deposit of payments
• Bill payments
• Paychecks
• Time records
• Sales tax payments
• YTD payroll adjustments

1. Enter the transaction as you'd like it memorized.
   
   Tip: If the content of certain fields will change each time you recall the transaction, leave those fields blank. For example, you might want to leave the Amount field blank on your monthly utility bill. That way, you can fill in the amount each time you recall the bill.
   
2. From the Edit menu, choose Memorize.
   
3. In the Memorize Transaction window, enter a name that will help you recognize the transaction on the Memorized Transaction list.
   
4. Choose how you want QuickBooks to treat the transaction.
   
5. Click OK to memorize the transaction.
   
6. If you are only entering the transaction information for future use, click Cancel to close the transaction window.

Note: You cannot modify or add fields to standard Intuit forms. However, you can duplicate a standard Intuit form and then edit the new copy.

Accounts Receivable

• When using QuickBooks Basic, the message "You have unbilled reimbursable expenses…" no longer appears when the preference, Track Expenses by Customer:Job is disabled.

Condense

• Condensing a file with a large number of payments now completes much faster.
• QuickBooks no longer displays an error message when condensing files that contain a Direct Deposit payroll item.

Forms

• Marketing messages have been removed from most forms within QuickBooks.
• QuickBooks no longer fails in certain situations when adding a new name from a form.

Import Export

• Item descriptions now import correctly when using IIF files to move list information from one file to another.

Install

• Installation of QuickBooks no longer fails with the error message, "Warning there was a problem loading registration support…" when Microsoft Active Accessibility is not present on Microsoft Windows 98 First Edition.

Other

• QuickBooks no longer crashes when opening a company file the first time with the Premier: Retail Edition if sales tax has previously been enabled in another edition of QuickBooks.

Payroll

• The message "Payroll update successful" is no longer displayed if the payroll channel is not downloaded due to a problem such as a firewall preventing access.
• QuickBooks no longer fails to display some employees on the process W-2s window when they have a paycheck in the W2 year.
• The Company Info window no longer closes when clicking on the message "You must Provide a Name for your company". The window remains on the screen until a name is entered.
• Memorized reports no longer have the possibility of missing E-File and Pay liability checks, even if they were memorized before E-File and Pay was introduced as a feature in QuickBooks.
• Tax table expiration messages are no longer displayed for manual calculation users.
• Rebuilding a data file now fixes YTD totals for all employee's payroll items.
• QuickBooks now allows the font size on a paystub to be changed.
• QuickBooks no longer prints both the company Trade Name and the company Legal Name on payroll forms and pay stubs when the names are the same.
• QuickBooks now displays the message: "Unable to create a paycheck when there are no earnings or additions items or the earnings and additions items are all zero. To create this paycheck, first add an earnings or addition item with a non-zero amount." Instead of the incorrect message: "Unable to create a $0.00 paycheck for <said employee>."
• QuickBooks now uses next year's SDI rate when creating a paycheck dated for next year.
• QuickBooks no longer prompts for login twice when accessing Deposit customer maintenance pages.

Payroll Assisted and Direct Deposit

• QuickBooks no longer displays the message: "not enough money in 'payroll' expenses" when trying to send payroll data. The Payroll Bank account is now referenced.

QuickBooks Online Billing

• QuickBooks no longer displays an "Invalid Pointer" message when payments are downloaded more than 1000 times.
• QuickBooks no longer displays an incorrect failure message when sending payments after a data upload error.
• QuickBooks no longer displays the message "QuickBooks was unable to convert your form(s) to PDF" when sending forms using Windows 98 or Windows ME if the company name contains a period.
• QuickBooks will now delete temporary pdf files after a statement is sent. Any existing leftover PDF files will not be deleted.

Reports

• QuickBooks no longer crashes when using a memorized report based on detailed job and time data.
• Printing consecutive very large detail reports that have a column for Tax Line will no longer cause C=93 errors.
• New asset and liability accounts will no longer cause journal entries to show as adjusting entries on the Adjusting Journal Entries report and the Make Journal Entries screen.

SDK (Software Developer Kit)

• Cross-sell messages will no longer appear when QuickBooks is in Unattended Mode.
• Inventory quantities will no longer be increased when 3rd party software attempts to change only the value of an inventory item.
• The SDK can now query custom fields on items using version 3.0 requests.

Spell Checker

• Spell Checker is now activated when needed before the Print One Invoice dialog box appears.

Tech Helper

• Tech Helper no longer displays an error when the Create Shortcut button is clicked.

WebEX

• Enterprise Solutions users will now be able to use the remote Access Service 12 month free trial without having to pay in advance.

Understanding the Basics of Accounting
Individuals that perform bookkeeping services must have a basic knowledge of accounting. They also must be able to apply that knowledge when recording transactions. In some instances, however, the entry-level accountants and bookkeepers that provide much of the bookkeeping work do not possess that basic knowledge.

The following paragraphs discuss basic financial statement terminology commonly used in bookkeeping.

Balance Sheets
The balance sheet (or statement of financial position) is a financial statement that reports an entity’s assets, liabilities, and equity at a specific point in time. On the balance sheet, the total of the assets presented equals the sum of total liabilities and total equity.

Balance sheets may be classified or unclassified. A classified balance sheet distinguishes current assets and current liabilities from other assets and liabilities. Because classified balance sheets disclose the components of working capital (or current assets less current liabilities), they are presumed to be more useful. Generally, classified balance sheets are presented unless an industry accounting or auditing guide specifically permits an unclassified presentation or an unclassified balance sheet is industry practice. (For example, it is accepted practice for financial institutions to present unclassified balance sheets because the working capital distinction is not relevant.)

Assets
Assets are economic resources that have the following essential characteristics: (a) they represent probable future benefits that can contribute directly or indirectly to future net cash flows, (b) an entity can obtain those benefits and control others’ access to it, and (c) the event giving rise to the entity’s right or control of the benefits has already occurred. Examples of assets include cash, marketable securities, accounts receivable, inventories, and equipment.

Current assets are defined as cash and other assets that are reasonably expected to be realized in cash or sold or consumed within one year (or within an entity’s normal operating cycle if it is longer than a year). Current assets normally include cash, marketable securities, receivables, inventories, and prepaid expenses.

Liabilities
Liabilities are economic obligations that have the following characteristics: (a) they represent present duties to one or more entities that will be settled by the transfer or use of assets at a specified date, on occurrence of a specified event, or on demand; (b) they obligate an entity, leaving it little or no discretion to avoid the future sacrifice of assets; and (c) the transaction obligating the entity has already occurred. Examples of liabilities include accounts payable, accrued expenses, notes payable, and revenues collected in advance.

Current liabilities are obligations whose liquidation is reasonably expected to require the use of current assets or the creation of other current liabilities. Generally, current liabilities include short-term obligations such as payables for materials and supplies, wages, taxes, amounts collected in advance of delivery of goods or services, the current portion of long-term obligations, and any other obligations expected to be liquidated within a year.

Equity
Equity is often referred to as net assets and is the residual interest in an entity’s assets after deducting its liabilities. Equity accounts vary depending on the type of legal entity. For example, a corporation’s equity accounts may include common stock, preferred stock, treasury stock, additional paid-in capital, and retained earnings. A partnership’s equity accounts, however, may consist only of partners’ capital.

Income Statements
An income statement is a financial statement that reports an entity’s results of operations for a specific period. That is, it presents an entity’s revenues, expenses, gains, and losses for a given period.

Revenues are actual or expected cash inflows that have occurred or will eventuate as a result of an entity’s major or central operations. Revenues increase assets or decrease liabilities (or both) and, thus, increase equity. Revenue accounts vary depending on the type of business and the type of transaction that generated the revenue. Examples of revenue accounts include sales, royalty income, interest and dividend income, and rent income.

Expenses are outflows or other using up of assets or incurrences of liabilities (or a combination of both) from producing or delivering goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations. Expenses decrease assets or increase liabilities (or both) and, thus, decrease equity. Examples of expenses include cost of sales, salaries, taxes, interest expense, and supplies.

Gains are increases in net assets from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from revenues or investments by owners.

Losses are decreases in net assets from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from expenses or distributions to owners.

Classifying amounts as revenues, gains, expenses, or losses varies among companies and depends on the nature of a company’s operations. Events or circumstances that are sources of revenues for one company may be gains for another. The primary differences between revenues and gains and between expenses and losses are that (a) revenues and expenses result from an entity’s ongoing major or central operations such as producing or delivering goods or rendering services, while gains and losses result from incidental or peripheral events or circumstances; and (b) revenues and expenses usually are recorded at their gross amounts while gains and losses usually are recorded at net amounts.

Depreciation
Depreciation is the accounting process of allocating the cost of an asset to expense over the useful life of the asset. For example, if manufacturing equipment is expected to have a useful life of five years, a portion of its cost would be allocated each year for five years to the cost of production. It is important to note that depreciation is merely a method of allocating the cost of assets to expenses. It is not a method of valuing assets.