QuickBooks™ is a very powerful and easy to use out of the box bookkeeping program made by Intuit Inc., the same company that makes Quicken. But, like all things there are some hints that make it's use easier.

These tips should work in all versions of QuickBooks™. Here are just a few:

Vendors List

Have multiple account numbers with one vendor? Create names in your vendor lists with unique name for each name plus account number e.g., SBC-310-555-1234, SBC-818-555-1234. In the field where it says, "Print on Check as" and type in the name of your vendor e.g., Pacific Bell. Now you can search each account number individually and send in separate checks for each bill you receive from the Pay Bills window.

Closing QuickBooks™

QuickBooks will close all of the income and expense accounts at the end of the year without the operator having to close it manually. However, QuickBooks does not close out a sole proprietor's or partnerships' draw accounts. Therefore, a journal entry would need to be made as follows:

Owner's Equity DR $xxxxx.xx
Owner's Draw CR $xxxxx.xx

QuickBooks will create an account called retained earnings. This reflects your net income from the prior year plus any other net income for any other prior years. To close this use the following journal entry.

For Net Income:

Retained Earnings $xxxxx.xx (Net Income per your Profit & Loss after Depreciation, etc. is entered)
Owner's Equity $xxxxx.xx

For Net Loss:

Owner's Equity $xxxxx.xx
Retained Earnings $xxxxx.xx (Net Loss per your Profit & Loss after Depreciation, etc. is entered)

For more tips or to engage Chapman Business Services to train your staff and properly set-up your QuickBooks company, please call us at (310) 547-4774. Please note that training services are limited to our surrounding geographical area.