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INTRODUCTION AND NOTES FOR TEACHERS QuickBooks Pro is a commercial accounting package designed for small and medium sized businesses. It is a flexible and comprehensive package which can also be used with great effect in the classroom in the teaching of Accounting. WHEN CAN I INTRODUCE QUICKBOOKS? The use of QuickBooks Pro does not require an understanding of double entry accounting therefore it can be used very early in the introduction to the study of Accounting. It is particularly useful when introducing the concept of two effects of each transaction. For example, the initial capital can be entered and immediate access can be made to the balance sheet to see the effect. In this way, the students see the immediate effect of each transaction on the accounting equation. Some teachers prefer to wait until the students understand the double entry process before introducing QuickBooks. The students are then able to complete more complex exercises including the use of the general journal with balance day adjustments for accruals and depreciation . QUICKBOOKS AND THE GST QuickBooks provides for the quick and painless recording of GST as well as the preparation of the Business Activity Statement. If you do not require the GST in your recording, simply answer `No' when asked `Do you require recording for GST?' MOVING AROUND QUICKBOOKS There is great flexibility in the manner in which the program can be operated. Navigator The Navigator screen can be used to move around the program.

Notes prepared by Suzanne Collings


In the top left hand box are the icons for the fast track entry to those parts of the program. In the box on the right hand side is a list of the appropriate reports for this part of the program. To move to other parts of the program, pull down the Navigator list and select from that Navigator screens can be turned off by clicking on X near the top right of the screen. Menu Bar Pull down menus of lists, company activities, customers, vendors, employees, banking and reports can be accessed from the menu bar at the top of the screen:

File, Edit and View provide the usual range of options for Windows. Lists can be accessed for information on all of the following: Chart of Accounts, Items (of stock), Customers (debtors), Suppliers (creditors). New accounts can be established (or edited) for all of these through Lists. If the information regarding all of these is entered correctly then auto-fill will speed up processing by eliminating the need for a lot of the keying in of detail. Company, Customers, Vendors, Employees, Banking pull down lists provide you with the relevant activities for each of these areas of the program, in the same way that the Navigator screens do.

Notes prepared by Suzanne Collings


Reports is used to display a wide range of reports and graphs (which are prepared as the processing is carried out ­ no further action is required. Icon Bar If preferred, the icon bar can be displayed on the screen (View, Icon bar)

Clicking on the buttons will display the following: Invoice displays the invoice form for processing of credit sales or services Cust (Customer) Item (stock), Mem tx, (memorized transactions) Vend (vendors, suppliers) displays the lists of these. Clicking on the button at the bottom left side of the screen gets you to the areas for opening new items for the lists or editing those already there. Chq displays the cheque form for processing of cash payments Bills displays a form for the entry of accounts payable (creditors). Register accesses the register for rapid entry of transactions Accnt accesses the chart of accounts. Rmnd is the list of reminders which can be put up when the data file is opened. Find can be accessed to find details of transactions by date, type, name or amount HOW DO I? On most of the screens at the top right hand side is a button `How do I?' Clicking on this will take you directly to the appropriate part of the Help menu so that you can read more about what is being achieved on the screen. OPENING AND CLASSIFICATION OF ACCOUNTS It is not necessary to create a chart of accounts with a complex numbering system when using QuickBooks. Accounts can be created while working through the Interview in the introduction to the program, or they can be created just prior to processing a transaction, or they can be created during the processing of the transaction. In the same way, lists of debtors and creditors can be established during the Interview, or at any time as required.

Notes prepared by Suzanne Collings


Classification of the accounts for the preparation of reports is determined by the type of classification the account is allocated as it is opened. If the account for telephone expenses is classified as a "Bank" account then it will be included in the Balance Sheet! Fortunately, this can easily be edited by pulling down the list on the New Account screen.

USE OF DOCUMENTS QuickBooks can be used to emphasize the importance of the documents in the accounting process. Each transaction can either be entered using the register or by completing a form which appears on the screen when any activity is selected. For example, when cash payments are to be made, a cheque will be completed: This is the preferred approach in the classroom. For the more experience users, the use of the register is obviously quicker and more efficient.

Details of the transaction and the account which is being changed by the transaction are entered in the boxes below the cheque form.

Notes prepared by Suzanne Collings


DATES It is most important to be aware of the dates when processing transactions and accessing the reports. Firstly, it is important to set the date of the financial year properly, then to be careful of entering the appropriate date for each transaction. The report which reflects the period of processing can only be accessed if the date is set correctly on the report screen. Exercises given to students will probably not be using today's date so it is important to keep an eye on the dates displayed. Dates can be altered by keying in dd/mm/yy or mm/dd/yy. Alternatively, by clicking on the small box at the right hand side of the date field on any screen, dates can be selected by using the calendar.

The date can be advanced one day at a time by using the plus key (+) while the date is selected. The previous day can be selected by using the minus (-) key. DROP DOWN LISTS When keying in names of debtors, creditors, stock lines, payees for cheques etc. time and effort can be saved by using the drop down lists indicated by the down arrow at the end of the line. Alternatively, the full name should appear as soon as first letters of the name are keyed in through the autofill.

Notes prepared by Suzanne Collings


If the required name is not on the list, after keying in and pressing tab, the name can be added to the list by using Quick add.

GENERAL JOURNAL When using QuickBooks Pro in the classroom, the general journal is necessary only for purchase and sale of non current assets on credit, non cash contributions by the owner, balance day adjustments and correcting errors.

The entry must balance before the program allows you to exit this function.

Notes prepared by Suzanne Collings


REPORTS AND GRAPHS These are automatically prepared by QuickBooks as the processing is carried out and are accessed through the Reports menu. The dates will need to be adjusted to display the desired report ­ for the appropriate date and length of period. When the cursor is positioned over any part of the report or graph, it will change to a magnifying glass. Clicking will display the details which gave rise to the amount shown on the report or graph. Basic ratio calculations are also displayed on the graphs.

SAVING THE WORK QuickBooks automatically saves all of the work as the processing of each transaction is completed. Click Save & New to save a transaction and enter a new one or Click Save & Close to save the transaction and close the window. No special procedure is necessary to save before closing down. In the Interview section, nothing is saved until the screen appears informing you that the details of the company are about to be saved, so if the work is interrupted before getting to that point, nothing will be saved and the process will need to be started again.

Notes prepared by Suzanne Collings




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