Getting Started with QuickBooks Training – Part Three

Posted by on Jan 12, 2011 in Getting Started in QuickBooks | 0 comments


As we carry on from Part Two in Preferences we look at the remainder of these categories.

Multiple Currencies – If you deal in other currencies such as U.S., Euros, etc. then you need to tag the button and answer yes. Your home currency will be Canadian and this now allows you to set up a U.S. bank account, customers and vendors.

Payroll & Employees – a very straightforward question — yes or no. If you only have one or two employees you might be thinking about whether you should set this up and incur the monthly fee that QuickBooks charges.

The amount of time and work that is involved in setting up an excel spreadsheet, using the tax tables, writing the cheque, keeping track of hours, figuring out the Record of Employment, T4’s and other payroll related matters, is all taken care of through the Payroll module in QuickBooks.

So unless you would rather spend the extra time when you could be earning money to run your business, then my recommendation would be to bite the bullet and say yes to Payroll. Don’t sweat the small stuff.

Reminders – is a personal preference, which you can experiment with and see which selections fit your needs.

Reports & Graphs – a very important section for you to make a decision on. You will notice that the default is on accrual which is the norm for most businesses. This means that you will be recording the income at the time of the sale, not when you receive the money.

This would also apply to entering the expense when you receive the bill.  I believe the accrual accounting method will give you the most accurate picture of your business.

Now if you use the cash basis, then you would be recording the income when you receive the money and expenses when you pay the expense. Your mom and pop grocery store is probably using this method.

Either way, QuickBooks will still create reports for your use.

Sales & Customers – you can un-tag the price levels if you do not sell items that have need for it.

Sales Tax – there are some defaults already in place but make sure to assign the correct sales tax for your province. I will deal with the tax codes and setup in a future article.

Send Forms – You will find that most businesses email their invoices these days. This area allows you to customize how you want the message to appear. The email will be sent to your customer in a PDF format.

Be careful on which email provider you use, because it seems QuickBooks was originally set up to use with Microsoft Outlook and I had problems with using the function with Google email. If you have encountered the same problem, try forwarding your Outlook account to Google email.

Service Connection – this has to do with how QuickBooks connects to its site for updates. I would leave the defaults in place.

Spelling – keep the defaults as is.

Time & Expenses – we come to the last on the list. Very simply put, do you track time, yes or no? If you do then tag the yes button. Depending on your type of business you may also need to tag the invoicing options.

You can create invoices from a list of time and expenses but it’s not as simple as it may look. I would also ask your QuickBooks Trainer or Pro Advisor for help in this area to see if it will work for you, or if you might need a third-party add-on to help you invoice.

This brings us to the close of the Preferences.

You need to gather all the information from previous bills, customer, bank and credit card statements, financial statements, GST/HST returns, payroll submissions or any other documents that will help set up the Opening Balances, Vendors, Customers, Employees (if you have any) and Banking and for the next segments.

Remember that you can follow me on Twitter for tips and updates also.


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