Showing posts with label quickbooks learning guide. Show all posts
Showing posts with label quickbooks learning guide. Show all posts

Thursday, March 18, 2010

Quickbooks Common terms

Common QuickBooks® Items
QuickBooks® Tools:
Lists – QuickBooks® software uses lists to maintain company information, and to store repetitive information. The major benefit to storing information on a List is that the information has to be entered only once—even if you use it over and over again. QuickBooks® also uses the Lists to fill in blanks on the QuickBooks® forms.

Forms – Use QuickBooks® forms to record your business transactions quickly and easily.

Registers – Like the personal Check Register, QuickBooks® uses Registers to show all activity in one account. All Balance Sheet Accounts have Registers.

Common Accounting Terms:
Assets – Part of the Balance Sheet; what is owned by the company. Assets include cash, Accounts Receivable, Inventories, and Plant and Equipment. Assets are usually recorded at their acquisition price.

Balance Sheet – A financial report that shows the financial position of a company at a particular point in time in terms of Assets, Liabilities, and owner’s Equity. The Balance Sheet allows the business owner to view the firm’s total resources and determine how the Assets are being financed.
Assets = Liabilities + Owner’s Equity.

Cash Basis vs. Accrual Basis – Bookkeeping method used to determine how you report income and expenses. If you use Cash Basis accounting, you report incomes and expenses only when money is actually received or disbursed. With Accrual Basis accounting, you report income and expenses when they are incurred.

Chart of Accounts – A List of all the Account Titles (business resources) in a general ledger. Account Titles are grouped by Assets, Liabilities, Equity, Expenses, and Revenue.

COGS – Cost of Goods Sold - The cost of goods and materials held in inventory and then sold.

Equity – Part of the Balance Sheet; the difference between what you have (Assets) and what you owe (Liabilities).

Liabilities – Part of the Balance Sheet; what the company owes: present obligations resulting from past transactions that require the firm to pay money or provide services in the future. Liabilities represent creditors’ claims on the Assets of the business. Liabilities include Accounts Payable, loans, credit card balances, and unpaid sales and payroll taxes.

Profit and Loss Statement – Also called the Income Statement. The Profit and Loss Statement, which lists the revenues and expenses, shows the results of operations for a period of time, and the results are reflected in the owner’s equity on the balance sheet. When total revenues exceed total expenses, the result is net income.


Use the Following Items When Recording Sales:
Service – Services you charge for or service you purchase.

Inventory Part – Items you purchase, track as inventory, and then resell.

Non-inventory Part – Items you sell but do not purchase; Items you purchase but do not resell; Items you purchase and resell but do not track as inventory.

Other Charges – Other charges on a sale or purchase, such as freight or finance charges

Group – Fast entry of a group of individual Items already on the List


Use the Following Items to Calculate:
Subtotal – Calculating a subtotal before calculating a discount or charge that covers several items.

Discount – Calculating an amount to be subtracted from the total. (To discount several Items, use a Subtotal Item first.)

Payment – Payment received at the time of invoicing so that the amount owed on the Invoice is reduced.

Sales Tax – Calculating a single sales tax for a sale.

Sales Tax Group – Calculating two or more sales taxes grouped together and applied to the same sale.