Category Archives: QuickBooks

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.

What do you need to know when switching from Reckon Accounts to Intuit QuickBooks Desktop?

Reckon Accounts formerly known as Reckon QuickBooks or QuickBooks Asia; it’s a desktop accounting software with thousands of users in Singapore and Malaysia. There are some differences in GST between Reckon and Intuit QuickBooks; the user should take note of when switching over to Intuit QuickBooks Desktop. These include setting up of GST, recording a general journal with GST, and GST reporting.

Setting up of GST in Intuit QuickBooks Desktop

Set up the GST account after you have turned on the GST feature from the Preferences. The choice is yours, whether to have:

  • a single GST account for both input and output GST,
  • a current asset account for the input GST and current liability for output GST, or
  • a GST control account with subaccounts for both input and output GST, which all three GST accounts are current liabilities.

I prefer the last method, to have a control account and subaccounts for input and output, it allows me to glance the net GST payable or receivable from the Balance Sheet instead of relying on the GST report.

Next, create a vendor and set it as a sales tax agency. Name the vendor as Comptroller of GST and link GST output account to the track tax on sales field, and GST input to the track tax on purchases.

Create the tax item from the items list. Every tax item consists of a tax rate, such as 0% or 7%. Then, link the Comptroller of GST to the Tax Agency field and set the Sales Tax Return field to either Tax on Purchase or Tax on Sales.

GST item

Example, create two tax items for the standard-rated GST, one for the output and another for the input:

  • 7P – for standard-rated 7% GST Input
  • 7S – for standard-rated 7% GST Output

The GST item code, 7P and 7S, is for illustration; you can create your preferred code such SR7 for standard-rated 7% GST Output and TX7 for standard-rated 7% GST Input.

GST Code

The sales invoice, sales receipt, write cheque transaction uses tax code on each detail line (either item or GL account). Each tax code linked to either one or two tax item depending on the nature of the GST code. For example, standard-rated 7% GST uses in both sales and purchase; then, linked 7P (which we have created earlier) to the tax item for purchase and the 7S to the tax item for sales field. On the other hand, if you only use Deem Supplies tax code in rental income (GST output); then, you only need to set the Deem Supplies tax item to the tax item on sales field.

How does it work?

When you enter a bill with a standard-rated GST code:

  • It links to the tax item for purchases set in the tax code.
  • The tax item, which has a tax agency tagged, update the tax on purchases section of the GST report.
  • Then, at the same time, the tax amount updates the GST Input account, which has set up in the tax agency profile, of the Balance Sheet.

General Journal

A general journal is for adjusting the business accounts, such as recording of depreciation or accruals into the system. GST item can only tag with the GST Input or GST Output account in General Journal, but not with other P&L or Balance Sheet accounts.

General Journal
You cannot tag a GST code to an expense account in a General Journal

Consider using Enter Bill or Write Cheque transaction instead of a General Journal if you are trying to record an expense with GST.

File Tax Return

The GST report consists of sales, purchases, tax on sales (output), and tax on purchases (input). Export to Microsoft Excel feature is available in QuickBooks Desktop for you to filter, sort, and analyse before filing GST Form 5 via IRAS website.

GST Report
Require to File Tax Return

Intuit QuickBooks Desktop requires to process GST (by clicking the File Tax Return button at the top of the GST report). The process transfers the GST amount in the Input and output account to the accounts receivable or payable.

You can view the GST payable from the AP ageing report or receivable from the AR ageing report after you have done the File Tax Return process. Then, do a Pay Bill when GST is due for payment, or Receive Payment transaction when you have received the refund from the Comptroller of GST.

Book a demo to find out more if you are considering switching from Reckon Accounts to Intuit QuickBooks (either QuickBooks Desktop or QuickBooks Online).

Go Digital

If..work from home does work and stay productive.

Coronavirus pandemic has sent a shockwave to small businesses. It changes how we used to work. With web meeting and work from home as part of the equation, desk maybe shared instead of a personalised cubicle with family pictures and certificates hanging around, or full of Post-it notes sticking on the monitor. Cut down travelling. Executives don’t need to waste time at the airport waiting for the transit flight to bring them from one place to another; it just a few clicks of the button away will move from one meeting to another…within second. Virtually.

Things have changed.

The business owner may take this opportunity to downsize, move to a smaller office unit since you do not need to showcase your financial muscle by staying at a luxury office unit in the business district. It may help to prevent excessive rent eating into your financial resources.

Where is my document?

Working from home is challenging. Distraction, proper office equipment, locating documents are the issues we had when working from home.

Most small businesses do not have a digital filing system in place, and the majority are still relying on hard copy filing. The sudden change in the way we work has caught most of the small businesses off guard.

You need the supporting documents to verify when there is a discrepancy in the business accounts. You get frustrated when information is not digitally available. You are supposed to work from home, reduce movement to prevent the spread of COVID-19 virus, but have to get back to the office to complete the task.

Go digital.

MoneyWorks Now and QBO (QuickBooks Online) is cloud-based small business accounting software. Both are low cost and do not need sophisticated computer hardware to power it.

The built-in document feature allows the accountant to attach the related PDF document to the transaction. For example, attaching a supplier quotation to the purchase order, a bill to the purchase invoice, or a bank transfer note to the payment transaction, etc.

You can search the transaction by name, type, references, or drill down from the report. There are lots of advantages to having a document attached to the business account. Try it!

To attach a document in MoneyWorks:
Click the image icon at the top right-hand corner and select import image. Then, select the PDF document from the File Explorer (Windows) or Finder (macOS), and hit the open button to attach the file.

Attached document in MoneyWorks

To attach a document in QBO (QuickBooks Online):
Click the attachment box on the left bottom of the transaction, and select the PDF document from the pop-up windows.

Attached document in QBO (QuickBooks Online)

Simplify the workflow, keep it lean, and change the way you work to survive the coronavirus pandemic.

Stay safe and healthy.