5 Essential Things To Do In QuickBooks Online As A Beginner
Are you a business owner or bookkeeper looking to start using QuickBooks Online but not sure where to begin? Don’t worry – getting the hang of using this amazing tool is easier than you think! In this post, we break down five essential things that beginners must do in QuickBooks Online. We know that just hearing about software features can get overwhelming, so we provide simple explanations and useful examples throughout the post.
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ESSENTIAL THINGS TO DO IN QUICKBOOKS AS A BEGINNER
Starting your own business is one thing, but learning to look after your accounts is another. If you’re new to your bookkeeping software, then these are the 5 essential things to do in QuickBooks Online as a beginner before you do anything else! The same principle can apply to other software and not just QuickBooks.
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QUICKBOOKS TO DO LIST
When you have entered all your company details in QuickBooks and are ready to enter your expenses, make sure you apply these top 5 things before you do anything else.
1. DIRECTORS’ LOAN
The first essential thing to do with your Quickbooks online is if you’re using your own personal debit/credit card for business expenses, make sure that when you enter your expense, the Payment Account shows Directors Loan as shown below so you can withdraw from your business bank account. If you haven’t got Directors Loan on the list, click on the Payment Account and select ‘Add New’. In the Account Type drop-down box, select ‘credit card‘, and in the Name section, type in Directors Loan and Save.
Please note this only applies if you have a Business Bank account.
TRANSFER EXPENSES
When you have entered your expenses and want to withdraw your expenses back to your personal account, go back to your home page and click on +New > Other > Transfer. In the Transfer Funds From section, select Business Bank Account or Current account, whichever the funds are coming from. Then, in the Transfer Funds To section, click on Directors Loan.
Enter the transfer amount (usually what the balance says on the right-hand side). Enter the date it is going to be transferred and click on save and close. Now log into your business bank account and move money to your personal account. Job done!
2. SUBSISTENCE
Put all your expenditure for meals/drinks etc., under the Subsistence. This makes it easier to recognize when doing reports and saves you putting different shop names when entering your expense. Add this to the Payee section if it is not already there. Also, if you are using your personal debit/credit, use the guidelines in step 1.
3. MILEAGE
Apply the same principle in step 2 for your mileage. Add mileage to the Payee section if not there and save.
4. PAYROLL EXPENSES
When you have done payroll and paid the employees through your business account, if your business bank account is connected with QuickBooks, you will see the feed coming through, but it doesn’t always put it in the right category.
In the category or match section in the Banking feed, make sure you select Payroll Clearing because if you put anything else, it will mess up your books, and it will add it as an extra expense that you’ve already entered when you did Payroll.
5. RECONCILE
And finally, the last essential QuickBooks online thing to do is to make sure you reconcile once a month. This will keep you on top of your bookkeeping and will be easier to check any discrepancies.
Hope that helps! If you have any questions, don’t hesitate to comment below.
Want to know how to enter a refund in QuickBooks? Click here
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Thanks for this. Clear understanding and instructions on common situations.
You’re welcome! I’m so glad you found it helpful.