QuickBooks is one of the financial accounting software/program that is used to
record the company, organization or business transactions so as to enable automatic retrieval of various reports required e.g. Balance sheet, profit and loss account, trial balance, debtors balance and creditor’s balances etc. Important list These are basic list maintained in QuickBooks so as to be used to enter the transactions. They include: 1. Customers – this is an individual or organization that buys goods or services from our business. There are various transactions relating to customers. These include: a) Sales order- A sales order is a document that specifies products and/or services ordered by a specific business partner (customer), as well as the price and terms and conditions. b) Invoices – an invoice is a document sent by seller to the buyer requesting for payment of goods and/or services supplied on credit bases. c) Receive payment - is a transaction entered to record payments received from customers for supplies made on credit that is where prior invoice had been issued. d) Refunds (return inwards)- is a transaction entered to record items returned back by customers. e) cash sales/sales receipts - is a transaction entered to record sales made whose payments has been received immediately f) Bad debts write off –is a transaction entered to cancel out customer outstanding balances as a result of it being bad debt. NB: a bad debt is a debt that is unrecoverable from a customer due to some reasons like death of the customer, bankruptcy, insanity. 2. Suppliers - this is an individuals or company that supplies goods or services to our business. There are various transaction relating to suppliers. These include purchase order, bills (invoices), payment, refunds (return outwards). 3. Items – this is what the business deals in, that is buying and selling it, or just selling it. This includes the stock part items (items bought to be sold), non- stock part items (items made, manufactured or created in the business for sale) and services offered to customers.
Prepared by Mr. Mwangi
4. Accounts (Ledgers) – these are the basis of financial accounts reporting in QuickBooks. They are the ones that are debited or credited whenever the transactions are entered. They apply the basic concept of financial accounting that is double entry. Accounts are categorized in various types depending on what they are used to track. These types include:- i. Bank – This type of accounts are used to track the business money at hand (petty cash) and cash at bank (savings, current, fixed deposits). These accounts are used to make payments to suppliers and also hold cash/cheque receipts from our customers. ii. Fixed asset - This type of accounts are used to track the business fixed asset items. Fixed assets are items or properties used in the business to facilitate smooth running of business activities. E.g. Furniture’s, computers, motor vehicles, land etc. iii. Equity - This type of accounts are used to track the company or business capital. E.g. ordinary share capital, owners contribution, retained earnings, drawings iv. Liability - This type of accounts are used to track the business debt e.g. Bank loan v. Accounts Payable - This type of accounts is used to the business trade creditors (that is suppliers balances) vi. Accounts Receivable - This type of accounts is used to the business trade debtors (that is customer balances) vii. Income - This type of accounts are used to track the business earnings from various sources e.g. from sales, discount received, dividend received and commissions. viii. Expense - This type of accounts are used to track the business expense e.g. rent, telephone, bad debt, electricity, depreciation expense etc.