General

QuickBooks Online (QBO) is a “cloud” based accounting program. You can access your data from any computer with internet access. You can also invite your accountant to access your data.

You can access QBO by downloading their app, or from the “Google Chrome” browser (https://qbo.intuit.com).

Here is a summary of the bookkeeping steps:

  1. Recording income
  2. Recording expenses
  3. Receiving payments and recording deposits
  4. Reconciling the bank
  5. Viewing / printing reports
  6. Paying HST
  7. Adding or editing a Customer
  8. Adding or editing a Supplier
  9. Tips

Steps

1. Recording Income – Select , then “Invoice”

Tip – If you receive payment immediately, select “sales receipt” instead

  • Click the plus sign on the top right hand side of the screen
  • Under Customers click invoice
  • Select the correct customer – enter the date, invoice #, sales item, description, sales tax
  • You can click “Save and Send” if the customer’s email has been entered
  • To  print, click “Print or Preview” on the bottom of the screen

2. Recording Expenses – Select , then “Cheque” or “Expense”

  • Use “cheque” if a cheque will be printed; use “expense” for all other bank withdrawals
    • To  print, click “Print or Preview” on the bottom of the screen
  • If HST is being tracked, select “Inclusive of Tax” Select the account that the expense is to be charged to – add a description if unusual – select the appropriate sales tax code on each line of the cheque. If you use the HST quick method, select HST 0% or exempt.
  • If you selected to print the cheque(s) later, you can select “Print Cheques” from the “+” menu
  • With the “Essentials” version of QBO, you also have the option of entering a “Bill” (under Suppliers) for the expense and paying it later (using “Pay Bills”). This allows you to pay several supplier invoices with a single cheque. It also records the expense when the bill is entered vs when it is paid.

 3. Receiving Payments and Recording Deposits

  • If the payment is from a customer, select “+” then “Receive Payment”
    • the “deposit to” account is usually “undeposited funds”
  • Once all customer payments have been entered, select “Bank Deposit” [under “Other”]
  • If the payment is not from a customer, select “Bank Deposit”

 4. Reconciling the Bank

  • Select  > “Reconcile”
  • Select the account you want to reconcile > “Reconcile Now”
  • Enter the bank statement ending date and ending balance
  • Verify that the Beginning Balance” matches the opening balance on the bank statement > OK
  • Check off all items that appear on your bank statement
  • Enter any service charges or automatic payments as an “Expense”
  • “Finish now” only if the difference is $0
    • If the difference is not $0, either an item is checked off that is not on the bank statement, or an item on the bank statement has not been entered and checked off
    • If the difference is small, enter an”expense” or “deposit” for the difference – date this item the bank statement date – use the account “interest, bank charges”. Next check off this on teh reconcile screen – the difference should now be $0

5. Viewing / Printing Reports

  • Select “Reports” from the left menu
  • The typical reports can be found under “Recommended Reports”
  • To modify a report, select “Customize”
  • To save any changes, select “Save Customization”
    • These reports will be available under “My Custom Reports”

 6. Paying HST (click here for general HST information)

  • Select “Taxes” from the left menu > “Prepare return”
  • Check that the amount owing agrees with the balance sheet amount
  • If you use the HST Quick Method:
    • Check that line 108 is $0 (unless you purchased computers or equipment)
    • On line 104, select “Adjust”
      Change the adjustment account to “4100 HST Revenue”
      Enter the adjustment amount as a negative number > Save

      • Refer to the general HST information (link above) for the calculation of the adjustment
  • If you see amounts in the “Exception” column, the return is still OK to be filed. These amounts are corrections to previous periods.
  • File Return in QBO (“Mark as filed”) > Continue
  • Create an “expense” for the amount being paid (do not use the “Record a Payment” option on the Sales Tax History page)
    • Payee = Receiver General
    • Date = today’s date
    • Account = GST/HST Suspense (or payment)
    • Amount = balance due per return
    • Sales tax = exempt > save and close
  • File and pay the return via your bank’s government filing system (GST34).

7. Adding or editing a Customer

  • Click Sales on the left hand side of the screen
  • Click Customers on the top of the screen (between all sales and products and services)
  • On the upper right hand part of the screen there is a green drop down menu
  • On this menu you can add new customers
  • To edit an existing customer, click the name on the list and then select edit on the upper right hand side of the screen after clicking it

8. Adding or editing a Supplier

  • Click Expenses on the left hand side of the screen
  • Click Suppliers on the top of the screen
  • On the upper right hand part of the screen there is a Green drop down menu
  • On this menu you can add new suppliers
  • To edit an existing supplier, click the name on the list and then select edit on the upper right hand side of the screen after clicking it

9. Tips

To view your cheque register
  • Select “Client Home” > click on account near top right of screen
Refunding a customer
  • Create a cheque and select the A/R account – don’t use Refund Receipt
Recording a bounced cheque
  • Create a service item “Bounced Cheque” linked to the bank account
  • Create an invoice for that customer using this item
Supporting documents can be scanned and added to the expense or cheque as an attachment.