Greetings The CPA911 Newsletter September 2009 ------ > Contents < ------ QuickBooks Tips Accountants: Test New Method for Tax Software New Poll - Vote! Contact Info Subscription Info ------ > QuickBooks TIPS < ------ *** Divide an Item Among Multiple Categories *** The treasurer of a nonprofit organization asked how to manage invoices for quarterly dues when the dues are actually applied to several categories. Create an item for each category and link each item to the appropriate income account. For example, you may have items for dues, capital improvements, tithes, etc. If all the categories are linked to the same class (e.g. Unrestricted Funds), it's easiest to create a group of these items and use the group item on the invoice. If each item is linked to a different class, you have enter each item as an individual line item on the invoice, linking each to the appropriate class. *** Create Estimates Without Adding a New Customer *** A reader wrote to ask how to manage estimates for potential customers. He doesn't want to add a customer unless the estimate is accepted and the potential customer becomes a real customer. Create a customer named Potential Customer (or use some other name that indicates the status of this not-yet-a-customer). Use this customer for these estimates. When you create the estimate, fill in the potential customer's name and address in the Address Field to track this potential customer. QuickBooks will ask if you want to change the Address Information for this generic customer; click No. *** Tracking Inventory Freebies with Details *** A reader wants to track the inventory items she sends to customers as promotional items. She needs to reduce inventory, apply COGS, and also track the customer. She wants to be able to create a report that shows the list of all products given away and the name of the customer receiving the freebie. We have an article on this subject in the QuickBooks Tips section of our web site (www.cpa911.com). To go directly to the article enter the following URL in your browser's Address Bar: http://www.cpa911.com/read_article.asp?ID=194 *** Cleaning Out the Opening Bal Equity Account *** Sigh! We receive many e-mails daily from users who don't know what the balance in the Opening Bal Equity account represents. Most of the e-mail includes the information that an accountant told them it would take time (which means money) to clear the account, or the accountant asked them what the account is for (accountants who aren't familiar with QuickBooks). Amounts are posted to this account when you enter data into the Opening Balance field when you're setting up a new account in your chart of accounts (a balance sheet account) or you're setting up a new inventory item and fill in the fields for current quantity on hand and the value of that quantity. To clean out this account you have to remember every transaction that went into that opening balance amount you entered when you set up the new account or inventory item. The number of users who can track that information is miniscule. Never ever use those opening balance fields when you're setting up a new company file. Use real transactions. For complete instructions, see Chapter 1 of our book "Running QuickBooks 2009 Premier Editions" (or our upcoming book, "Running QuickBooks 2010 Premier Editions"). Hopefully, someday Intuit will listen to all the accountants and third-party book/article authors who understand how opening balances should be entered if you care about good accounting, and they'll get rid of the opening balance fields. We heard a great definition of the Opening Bal Equity account from a CPA named Phoebe Roberts: "Don't set up any beginning balances (because the offset to each would be a garbage non-account called "Opening Bal Equity," which in my opinion ought to be called "QuickBooks lacks an understanding of basic accounting principles"). It made all of us here laugh out loud. *** E-mailing Transactions and Supporting Documents *** Many users who e-mail transaction documents from QuickBooks write to ask how to attach additional documents to the attachment. Users who don't use e-mail software supported by the QuickBooks e-mail function write to ask us how to save the PDF file that QuickBooks creates instead of attaching it to an e-mail message that's sent through the Intuit e-mail system. If you use the QuickBooks e-mail functions, you can't send anything except the transaction document. Also, you can't save the PDF file and send it through your own e-mail software. If you want to save the transaction document as a PDF file so you can e-mail it outside of QuickBooks you need a PDF printer. A PDF printer is a software program (often called a "converter") that acts as a printer in Windows; a printer that always prints to a file instead of a physical printer. There are many PDF converter programs available; some are free and none of them are expensive (the free programs offer fewer bells and whistles, such as security settings). When you print the transaction, use the Printer drop-down list to choose the PDF converter as the printer instead of choosing your physical printer. Name the document to match its purpose, such as Invoice 1234. Save the file in a folder you create for this purpose (e.g. PDF Transactions). Then attach the document, in addition to any other documents you want to send to this customer or vendor, to a normal e-mail message. ------ > Accountants: Test New Method for Tax Software < ------ Intuit is introducing an online method for tax preparation (these online applications are called "Software As A Service" -- nicknamed SaaS). The product is currently being beta tested in preparation for full availability. Intuit describes this SaaS as follows: "ProLine Tax Online is a new design; a single-screen data entry process that streamlines the workflow and makes it easier and faster to prepare and file tax returns. Some of our pilot customers reported significant increases in productivity as a result of the simple, three-step design: Input-Review-File." To learn more about this product and to see if you're eligible to be a beta tester, go the following URL: http://proadvisor.intuit.com/product/more-products-solutions/tools/tax-online-edition.jsp ------ > NEW POLL - Vote! < ------ We have a new poll on the home page of our website (www.cpa911.com) in which we're asking you about benefits for employees. Here are the results of our last poll, in which we asked about using e-mail to send transaction documents to customers and vendors: I use the QuickBooks e-mail feature = 52% I use a PDF converter printer and use my own e-mail software to send the file = 25% I don't e-mail transaction forms = 23% ------ > CONTACT INFO < ------ Copyright 2009 CPA911. Comments or questions? Write to: editor@cpa911.com. Visit our web site: http://www.cpa911.com. ------ > SUBSCRIPTION INFO < ------ You can forward this newsletter to anyone, as long as you forward it in its entirety. If you received a forwarded copy, subscribe for yourself (it's free) at http://www.cpa911.com/newsletter.asp.