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The next step is to select the type of business, followed by setup tips and then the We re ready to create your company le now window. You are required to select a lename for storing your QuickBooks company data, as shown in Figure 5-4. The default for this option is the legal name for your company, followed by the QBW extension. You can enter a different name if you choose or click OK to accept the default name.
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Creating and previewing your Chart of Accounts
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The most important general company information you will enter is the Chart of Accounts, using the screen shown in Figure 5-5. QuickBooks offers you an option to use a pre-established specialized Chart of Accounts for your industry. The program offers charts for nearly two dozen industries. If none corresponds to your business, you are instructed to select the industry most similar to your business type. You can also choose the other option. If you select this option, you are prompted to enter additional information regarding your accounts receivable and inventory.
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Figure 5-4: You are prompted to create a le to store all information provided in the interview.
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5 Setting Up Your QuickBooks Company
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Figure 5-5: Create your company Chart of Accounts using this screen.
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You can also elect to create your own Chart of Accounts; however, this approach is not recommended. As discussed in 6, it is time consuming. Moreover, you lose out on two substantial advantages offered by the preset charts. If you do not use the standard charts, you do not get the bene t of the expertise of the industry professionals that developed those charts. Also, you miss out on tax matches, a feature that is activated during the interview and matches accounts to the corresponding lines of the tax forms that you have selected when you use the Turbo Tax program. You may preview each standard Chart of Accounts before you select it to use for your business. After you select a Chart of Accounts, you cannot modify it during the interview, but you can customize it to your liking at a later date. After you leave the interview, you have the opportunity to modify your Chart of Accounts; you can add or delete accounts, rename accounts, or change their numbers. You are then presented with a screen asking you, How many people (besides yourself) will have access to your QuickBooks company
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Editing the Chart of Accounts is discussed in 6.
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The result of completing the Company Information section of the interview is that you have set up a separate data le for your business and have indicated its legal name and tax identi cation number. You have also determined the appropriate tax-reporting form for your business and have selected a Chart of Accounts option. What if you decide that you have made an incorrect choice as to one of these options and that it would be better to simply start over and reenter the data Deleting a le you have created can be tricky. You cannot do it directly from the program. You will need to locate the newly created les by using Windows Explorer and delete them from the Explorer window. To delete a company le, follow these steps: 1. Place your mouse pointer over the Start icon at the lower left corner of your screen.
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80 Part II Establishing Your Own QuickBooks Business
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2. Click the right mouse button. A menu appears. 3. Choose Explore. 4. Scroll through the les located in the Explorer window s Folder pane until you locate the QuickBooks or QuickBooks Pro icon. Click the icon, and a list of les appears on the right side of the window. Click the le that you want to delete, and press the Del (or Delete) key on your keyboard. A message appears asking whether you are sure that you want to send this le to the recycle bin. 5. The next screen asks you to verify the Chart of Accounts. Choose Yes.
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