Category Archives: QBO

Switch over to QuickBooks Online

Simple, but yet could be challenging for some.

Switching over to new software, often, get overwhelmed by the rich features available; confused and wouldn’t know where to start.

Although QuickBooks Online (QBO) is a cloud-based accounting system, suppose to be easy to use, it may still be challenging for some. After entering the company name and selected the industry on the welcome page, what’s next?

Where to customise the invoice template, create the chart of accounts, update the products and services list, import the customer and supplier names, how to record the opening balances, etc.

Of course, help is readily available. There are QBO help articles and videos available on the official Intuit channel and non-official channel by blogger and YouTuber over the world. That’s the beauty of the World Wide Web; isn’t it?

Besides, you can also engage a QuickBooks consultant if you are still not comfortable, help you implement and shorten the learning curve. 

Here are a few steps for you to kickstart if you prefer to DIY (Do-it-yourself), set up your business finance in QBO.

QBO Gear icon

Gear icon. The gear icon will be the very first icon you click when using QBO. You need to set up your company preferences, such as the company address, insert logo, set up home currency (if you are using multiple currencies) and the first month of your financial year started from the accounts and settings page. Then, create the chart of accounts and update the products and services list; which you can find these lists under the gear icon too.

QuickBooks Online +New icon

+New icon is the place where you can find all the daily transactions such as invoice, receive payment, bill, cheque, journal entry, etc. It’s the most often visited area when using QuickBooks Online. Besides daily transactions, you record the opening balances, if any, via these transactions too.

QuickBooks is a form-based accounting system. Once you click on the save and close after creating an invoice, the system debit the accounts receivable and credit the sales automatically without needing to post a sales journal separately. The invoice emailed to your client automatically once you opt for online delivering sales form from the accounts and settings page.

QBO Search function

Oops! You make a mistake. Don’t worry. Go to the search bar located at the top of the page, click on it, and you can find your recent transaction. As long as you are authorised to change, you can edit and save the amended transaction.

QuickBooks Online navigator

The transactions which you have recorded registered in the transaction list. For example, the invoice and receipt capture in the All Sales list of the Sales Navigator, and the Bills and Cheque is under the Expenses list of the Expenses Navigator.

Go to Report Navigator, where you can find all the relevant reports to cross-check what you have recorded in your book.

Once you understand the flow of using QBO, you can try connecting your bank account to the bank. Pull down the bank transactions automatically into QBO to match or add into your book, and prepare your reconciliation.

Using QuickBooks is not difficult if you have set up correctly. QBO is country-specific, which has its GST or VAT set up, subscribe to QBO Singapore version if you are using it for Singapore business account. Contact the local office or consultant if you have doubts.

The three main things you need to know to kicks start your business finance in QBO:

  • the Gear icon to set up your preferences and lists
  • the +New icon to record your daily transactions
  • and find the transactions and reports from the navigator located at the left panel.

Easy?

Hope these are helpful for you to kickstart your book in QuickBooks Online.

For existing QuickBooks user in Singapore who intend to switch from Desktop to QuickBooks Online may contact us. It’s good to sign up a demo to see the differences between QuickBooks Desktop and QuickBooks Online before you dive into a new piece of software.

Shall I be using class or location in QBO (QuickBooks Online)?

Class is a powerful feature available in QuickBooks Online (QBO). Although originated from QuickBooks Desktop accounting system, there is a slight difference in reporting.

How to use class in QuickBooks?

You may use the class as a departmental account. Set up marketing, R&D, production, etc. as a class; then, tag it to each income or expense account when creating an invoice or bill. The profit and loss report shows the income and expense breakdown by class once the transaction saved. QuickBooks class feature is a unique way of analysing the business account and less tedious in setting up compared to the sub-ledger method used by other accounting systems.

There are many other ways of using the class feature in QuickBooks:

  • A Law firm uses the class to allocate income and expense of each lawyer.
  • Use it to track the running cost of the sales team or vehicle.
  • Property management business uses the class feature to analyse the profitability of each property.
  • Or you may use the class to track local and overseas sales.

The class feature is flexible and is up to your imagination to apply it into your business account.

QBO class or location?
Location tag to header, whereas the class tag to detail.

Each transaction consists of a header and a detail section. For payment transaction, the payee and bank are part of the header section, whereas the accounts used at the bottom of the transaction are the detail section. Each of the expense account at the detail tagged to a class, and pick up by the Profit & Loss by Class report once transaction saved. But if you print the Balance Sheet by Class from QuickBooks Online, the amount paid from the bank account will group under the unassigned classification since there is no class field available at the header. 

QuickBooks Profit and Loss by Class report
QuickBooks Profit & Loss by Class

You may consider using a location feature, for branches or retail outlets, in QuickBooks Online instead of a class. The data entered will show in both Profit & Loss and Balance Sheet.

QuickBooks Profit and Loss by Location report
QuickBooks Profit and Loss by Location

The location field is at the transaction header section, which breaks down the accounts used in both the header and detail section. Location is a better choice for businesses that have multiple branches, but you cannot have multiple locations in one transaction (at this moment). You may have to get the supplier to change the way they bill or change the internal workflow if they bill you more than one branch in a single invoice.

QBO Balance Sheet by Location
QuickBooks Balance Sheet by Location

Technology is evolving, QuickBooks introduces new feature from time to time. Who knows? Maybe someday there might be a better way of using or reporting by class and location 🙂

Discuss with your QuickBooks consultant, sign up a demo or trial to test drive before you switch over from QuickBooks Desktop to QuickBooks Online.

QuickBooks Online Singapore | Is Location better than Class?

Software: QuickBooks Online Singapore ( QBO )

You can use either Class or Location feature in QBO (QuickBooks Online Singapore) to segregate your financial report. Although both class and location looks similar, they are different. You should consider carefully before using them.

Class:

When Classes are used, they get attached to the detail portion of transactions. They do not get associated with the header accounts. Therefore, since a P&L pulls information from the transaction detail, it can be customized by Class and be correct. However, a Balance Sheet by Class report will never be correct, since it pulls data from headers. (Remember, the Class data does not get saved with the header—actually, no where can a bank account, loan account, etc., all headers, cannot be linked to a Class.)

QBO assumes that all data pertains to just one company, so it will always provide just a single Balance Sheet, and not one split in Classes.

 

Location:

Accounts Payable, Accounts Receivable and Payroll transactions may have amounts in “Unspecified” because Bill Payment, Receive Payment and Paycheck transactions can’t be split by locations.

If you have either Bill Payment, Receive Payment or Payroll transactions that involve multiple locations, the transaction will reflect “Unspecified” and will either need to be split into transactions that only involve one location or correct the location with a journal entry.

https://qboe.custhelp.com/app/answers/detail/a_id/1242/kw/1242/r_id/103898

If you just need to segregate based on a per transaction basis, then you may consider using location. However, if you require to tag the detail lines of a transaction, then Class will be a better choice. That is, multiple classes per transaction (Do check the limitation in using either class or location).

Usually, I tend to use Class for project tracking, type of products/services, or region, etc. As I can tag different line items or account with a different class. The Location is more about tracking the multiple stores or departments. In some cases, both Class and Location are being used in a QBO company file.

Get a QuickBooks consultant if you are not sure which is a better solution for your business.