The Essential Order for Entering Data in .NET

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The Essential Order for Entering Data
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Does it make a difference which types of transactions you decide to enter rst Generally, you will want to enter transactions in the order in which they generally occur such as bills before payments. For example, you want to do the following: 1. Enter bills from vendors before you enter payments. If you don t do this, QuickBooks cannot tell which bills you are paying and where to apply the payments. 2. Enter customer invoices before you enter customer payments. Again, QuickBooks must have information about the outstanding bills so that it can apply the customer payments properly. 3. Enter accounts payable before accounts receivable. Do this if you track reimbursable expenses. 4. Enter bank account transactions last. The reason is that as you enter accounts payable, accounts receivable, and payroll transactions, your bank balance is automatically adjusted to re ect them. All you need to do, at the very end, is enter any transactions affecting the
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7 Entering Historical Transactions and Data
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bank account balance that are not attributable to accounts payable, accounts receivable, or payroll.
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If it will take several days or weeks to enter historical data for a company, it is a good idea to also begin entering current transactions as you go, so that you don t fall further behind. QuickBooks recognizes that entering historical data is a time-consuming task and that in the meantime you still have a business to run! Just remember that the account balances will not be accurate until you have nished entering all of the historical data since the start date.
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A Checklist for Establishing Your Opening Balances
You can save time and streamline the task of entering opening-balance information if you have the correct information on hand. The following is a partial checklist of information to compile from the start date to the current date: Invoices, sales receipts with sales tax, and other information relevant to customer Customer return documentation Records of payments received from customers Deposits made since the start date Payments of sales tax Bills received from vendors Credits for payments from vendors Outstanding bills Bill payments you have made since your start date
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Entering Opening Balances with the EasyStep Interview
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Fortunately, the EasyStep Interview helps guide you smoothly through the process of entering historical transactions and data. If you have already entered general information about your company and would like to access the portion of the EasyStep Interview that allows you to enter historical information, go to File EasyStep Interview and click the Opening Balances tab on the right side of the Interview screen. The screen shown in Figure 7-1 appears.
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110 Part II Establishing Your Own QuickBooks Business
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Figure 7-1: Enter opening balances with the EasyStep Interview.
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Entering Past Customer Sales and Accounts Receivable
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The EasyStep Interview guides you through the process of entering past sales and account balances using a series of simple screens. The process is slightly different for service- and product-based companies, and it is useful to view an example of each. Follow these steps to proceed through them correctly. 1. To open the EasyStep Interview, go to the File menu and select EasyStep Interview. 2. Click the Opening Balances tab. The rst screen, under the Introduction tab, lets you know that you are entering the portion of the EasyStep Interview used for entering customer account balances. Click Next. 3. You automatically progress to the Customers tab. The screen shown in Figure 7-2 appears, asking you whether you have customers who owed you money at your start date. These are known as accounts receivable, and they are assets that will be re ected on your Balance Sheet and ultimately listed as revenue on your Income Statement.
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7 Entering Historical Transactions and Data
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Figure 7-2: Select Yes to re ect that your company has existing accounts receivable.
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4. Select the Yes option button and then click Next to proceed to the following screen, shown in Figure 7-3.
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Figure 7-3: QuickBooks allows you to track speci c jobs and projects for your customers.
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5. You want to track jobs for customers, so select the Yes option button. You might have multiple jobs that you track for different clients. For example, if you offer repair or construction services, you might want to separately track each job for which a particular customer uses your services. Each matter you track will appear as a separate subaccount. Select Next to add a job, as shown in Figure 7-4.
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