QuickBooks Pro 2022 Beginner: Setting Up Company Files

Name: QuickBooks Pro 2022 Beginner: Setting Up Company Files
Author: Takeisha Strong

Learn the basics of setting up a new company file in QuickBooks

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Course: On-Demand

Hello, my name is Takisha Strong, and in these lessons you will learn how to set up your company files in QuickBooks Pro 2022. We will walk through options for product and service-based companies, customize the chart of accounts, and add bank integrations the company may find useful on a daily basis. Let's get started. By this time, you've installed QuickBooks Pro, selected Create Company as an admin, and logged in with your QuickBooks user id. On this screen, I entered the required details for our company LLC, leaving two sections for us to work together, industry and business type. The industry list gives high level options for your company's chart of accounts, the foundation of your accounting file. The chart of accounts give definition to how your company's transactions will be compiled and classified on the financial statements. For purposes of this lesson, we classify industries as either service-based, product-based, or nonprofit. Let's select Help me choose. On this screen, you can search for your industry or scroll the examples of common industries. The industry you select will create accounts for your profit and loss statement, one of the major components of the financial statements. For example, an accounting or bookkeeping company would have income accounts, labeled accounting services income, consulting income, or tax preparation services income. If we scroll down to a nonprofit company, those options change. We now have two sections. The first for direct public support, which would include corporate contributions, gifts in kind, and individual and business contributions, and also indirect public support, such as those from United Way. If we look at those from a restaurant that sells products, we now see an income account labeled food sales and a new section for the cost of goods sold or the cost of that food, which would include food purchases, merchant account fees, and restaurant supplies. Each of the industries also include common expenses, such as advertising, business licenses, insurance, office supplies, and so on. Remember, your exact match may not be listed. Let's say you own a web design company. Typing web in the search bar doesn't provide us with any options. Also, typing design, defaults to a construction or architecture-based business, neither of which would fit your company. In instances such as this, if we scroll to the bottom, we'll see that we also have a general product-based business and a general service-based business. In a moment, we'll review steps to further customize the general accounts to mirror how your company does business. For our company LLC, let's select General Service and press Okay. Let's move to the company's business type. The dropdown menu provides options for business structures. Choosing the correct structure helps in two ways. First, it allows your tax professional to further customize and map your QuickBooks file to the corresponding tax form for your business. And second, it provides the appropriate terminology for another major component of the financial statements, your balance sheet. A sole proprietorship is a business structure operated solely by the individual, typically under their social security number. A partnership or limited liability partnership is owned by two or more people. You have a single member LLC, a multi-member LLC that operates as a partnership for tax purposes, a traditional C corporation, an S corporation, a nonprofit, or you can select other or none to customize this later. For our purposes, let's choose single member LLC, since our company LLC has only one owner. Let's hit Create Company to finish setting up the file. Once the file is set up, we can use the company's section of the homepage to take a look at the chart of accounts. You'll see that it has a basic listing of the accounts that we selected and the general service-based company set up of our file. Stay tuned for the next lesson, where I will show you how to customize this company's chart of accounts. Thanks for watching.

Beginner Provider : Takeisha Strong 3 Lessons · 18m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

Accounting files need to be set up properly. QuickBooks offers users tools to create a good starting point for setup. This module provides the understanding needed to use those tools to eliminate the risk of bad accounting down the road.

An accurate set of accounting books relies on proper file setup. In Setting Up Company Files, the user will learn the basics of creating an accounting file for their company. QuickBooks has standard templates for both service-based and product-based companies. The templates are separated by industry and even include options that are general in nature. The user will learn how to search for and select the proper template for their company. Once the industry template is selected, users will learn how to customize its Chart of Accounts, the foundation of every accounting file. Finally, the user will learn how to create efficiencies and minimize errors by using QuickBooks bank integrations.

What You'll Learn

Understand QuickBooks templates for service-based and product-based companies
Search for and select the proper industry template for your company
Customize the Chart of Accounts as the foundation of your accounting file
Create efficiencies and minimize errors using QuickBooks bank integrations

Key Takeaways

Accurate accounting books rely on proper company file setup, which QuickBooks tools help establish.
QuickBooks provides standard templates separated by industry for both service-based and product-based companies, including general options.
The Chart of Accounts is the foundation of every accounting file and can be customized after selecting an industry template.
Bank integrations in QuickBooks help create efficiencies and minimize errors.

Frequently Asked Questions

What will I learn in this QuickBooks Pro 2022 module?

You will learn the basics of creating an accounting file for your company, including understanding QuickBooks templates, customizing the Chart of Accounts, and creating efficiencies with bank integrations.

Does this course cover both service and product companies?

Yes. QuickBooks has standard templates for both service-based and product-based companies, and you will learn how to search for and select the proper template for your company.

Why is proper company file setup important?

An accurate set of accounting books relies on proper file setup, and this module provides the understanding needed to use QuickBooks tools to eliminate the risk of bad accounting down the road.

What is the Chart of Accounts in this course?

The Chart of Accounts is described as the foundation of every accounting file, and the course teaches how to customize it once an industry template is selected.