QuickBooks^® Online For Dummies^®

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About This Book

Intuit’s web-based accounting product is really almost two products: Business users who want to do their accounting on the web use QBO, whereas accountants use QBOA, which enables the accountant to log in to a client’s books and make changes and queries as needed. Although much of QBO and QBOA look and behave alike, QBOA incorporates tools that an accountant needs while working on a client’s books. And accountants need to manage multiple client companies, whereas business user clients typically do not.

This book has been divided into three parts. In the first part of the book, we examine what QBO and QBOA are — and what they aren’t — and we describe what you need to be able to use QBO and QBOA. We explain the various editions and features available. And in Chapter 1, you’ll find some information about the available interfaces for QBO and QBOA (you can work with the products using a browser or using an app).

The second part of the book focuses on using QBO and is aimed at the business user; however, the accountant who opens a client’s company via QBOA will be able to use the same tools that the business user uses to manage lists, enter transactions and print reports.

The third part of the book is aimed at the accountant and covers using QBOA.

We don’t pretend to cover every detail of every feature in QBO or QBOA. Instead, we focus on covering the tools we think most users will need as they navigate QBO and QBOA.

As we discuss in Chapter 2, different versions of QBO are available; we used QBO Plus as we wrote this book because it contains the most features. Users of other versions might find references in this book to features they don’t have because they aren’t using the Plus version.

Before we dive in, let’s get a few technical convention details out of the way:

• Text that you’re meant to type as it appears in the book is bold. The exception is when you’re working through a list of steps: Because each step is bold, the text to type is not bold.
• Web addresses and programming code appear in monofont. If you’re reading a digital version of this book on a device connected to the Internet, note that you can tap or click a web address to visit that website, like this: www.dummies.com.
• In our experience, QBO and QBOA function best in Chrome. For that reason, we’ve devoted The Part of Tens chapters in this book to Chrome so that, if you aren’t familiar with Chrome, you can get up and running more quickly.
• When we discuss a command to choose, we separate the elements of the sequence with a command arrow that looks like this: ⇒ . For example, when you see Chrome Menu  ⇒    Settings, that means you should click the Chrome Menu button and, from the drop-down menu that appears, click Settings.

Foolish Assumptions

We had to assume some things about you to write this book. Here are the assumptions we made:

• You know that you need to manage the accounts for your business, and you might even have some sort of setup in place to record this information. We don’t assume that you know how to do all that on a computer.
• You have some interest in managing the accounts for your business using a web-based product.
• You are probably but not necessarily a QuickBooks desktop edition user.
• You have a personal computer (that you know how to turn on) running Microsoft Windows Vista, Windows 7, Windows 8.1 or Windows 10. We wrote this book using Windows 10.
• You might have purchased an edition of QuickBooks Online, but not necessarily.
• You have some basic accounting or bookkeeping knowledge.

Icons Used in This Book

Think of these icons as the fodder of advice columns. They offer (hopefully) wise advice or a bit more information about a topic under discussion.

This icon points out juicy tidbits that are likely to be repeatedly useful to you — so please don’t forget them.

Danger, Will Robinson, danger! Well, okay, it’s really not life-threatening. In this book, you see this icon when we’re trying to help you avoid mistakes that can cost money.

Beyond the Book

In addition to the content in this book, this product also comes with a free access-anywhere cheat sheet that gives you keyboard shortcuts for QBO and QBOA and some handy tool buttons in QBO. To get this cheat sheet, simply go to www.dummies.com and search for ‘QuickBooks Online For Dummies Cheat Sheet’ in the Search box.

QBO for the Business User and QBOA for the Accountant

QuickBooks Online offers you the ability to manage your business’s accounting in the cloud. The software is divided into two products: One for the business user and the other for accountants. QBO and QBOA work on multiple devices, such as PC, Mac, smartphone, tablet and mobile devices.

QuickBooks Online (QBO) is the cloud-based product for business users who need to perform typical accounting tasks.

QuickBooks Online Accountant (QBOA) is the cloud-based portal that accountants use to access their clients’ QBO companies, work in them, and communicate with clients and other members of their accounting team. QBOA also comes with one free company that accountants can use to track their own businesses.

Comparing interfaces

QBO and QBOA were initially written and optimised to be used in the major web browsers — Chrome, Safari and Firefox. Later, Intuit added QBO apps that you can use for Windows, Mac and Android mobile devices. In this section, you explore what QBO and QBOA look like in a browser and in the Windows app.

In a browser, an open company in QBO looks similar to the one shown in Figure 1-1. We cover the interface in more detail in Chapter 3 but, for the time being, the most important thing to notice is the Navigation bar that runs down the left side of the screen. If you've been a QuickBooks desktop user and you’ve used the Left Icon bar in that product, you might find the Navigation bar a familiar tool. The Left Icon bar and the Navigation bar work the same way; you click a link in either of them to navigate to a portion of the program.

When you collapse the Navigation bar, you have more screen real estate to view the right side of the QBO interface.

At the top of the screen on the far right side, you see tools that help QBO users create transactions, search for existing transactions and view recent transactions. These tools are marked by icons as follows:

	Quick Create Tool: Shortcut to frequently used transactions
	Search Function: Including basic and advanced search options
	Settings Menu (Gear icon): Links to advanced settings and more complex functions
	Help Menu: Shortcut to support feature, including Online Chat and Forums

Figure 1-2 shows what an accountant sees immediately upon logging in to QBOA. The Navigation bar changes to support an accountant’s needs; you can read more about the QBOA interface in Chapter 13.

When an accountant opens a client’s company from within QBOA (see Figure 1-3), the interface resembles what a client sees, with some minor differences — compare, for example, Figure 1-1 with Figure 1-3. First, you know you’re using QBOA because the top of the Navigation bar shows QuickBooks Accountant. Second, the tools used to search for a transaction, go to a report and view recent transactions are combined into one Search box near the right side of the screen. And third, the Accountant Tools menu (the briefcase icon) displays tools not found in QBO that help accountants manage client companies.

Even though an open company looks a bit different depending on whether it is opened using QBO or QBOA, the basic functionality doesn’t really change, other than accountants having more options than business users have.

Because QBOA contains functionality that QBO doesn’t have, we’ve organised this book so that QBO users can focus on Part 2 when using the product, and QBOA users can use the information in both Parts 2 and 3 to work with a company file.

To browse or not to browse …

In addition to working in a browser, you also can work in mobile apps. To find the app that works best for you, visit the Intuit Mobile App website (www.intuit.com.au/mobile).

Mobile apps are also available for Macs and iPhone, iPad and Android devices. You’ll find Pinch and Zoom functionality is now available in the mobile apps and in browsers on mobile devices.

So take your choice: Work in a browser, work in a mobile app or work in both, depending on your needs at the moment! You’re not limited; you don’t have to choose between an app and a browser. Work in one or the other, or both. The free app is a great resource for businesses with people on the road or offsite. They can have their customers sign off on orders via the tablet app, issue invoices, input expenses and receipts while all the time collaborating instantly with their teammates in the office.

An example Priscilla uses all the time to highlight the benefits of the free app is that when she wakes up, she checks her bank accounts via her mobile phone to see what has gone out and what has come in overnight (hopefully more has come in that what has gone out!). After she closes her bank app, she opens the QuickBooks app on her phone and cashes off the customer payments. In a matter of seconds, her books are updated before she even gets into the office and turns on a computer! Just keep in mind that the browser provides a full experience (that is, full functionality), whereas a mobile app includes only certain functions. See Figure 1-4 for an idea of how the mobile app looks.

QBO and QBOA come with free smartphone and tablet apps that sync automatically with your PC or Mac; however, QBO also has Self Employed — a standalone app separate to the other software that can only be used on a smartphone (see Figure 1-5). At the time of writing, QBO Self Employed does not support GST but does have a great feature that enables you to track mileage, which the other QBO programs don’t have.

Understanding the Cloud

Just to make sure we’re on the same page here, we’re defining the cloud as software and data housed securely in remote data centres (not on your office premises) and accessed securely using the Internet. Working in the cloud can increase your efficiency by offering you the opportunity to work anywhere, communicate easily with others and collaborate in real time.

Regardless of whether you use QBO or QBOA in a browser or in an app, both the software and the data are housed on servers controlled by Intuit and accessible via the Internet.

In the traditional model of software use, you buy software and install it on your computer. Or you might buy the software and install it on a vendor’s server. QBO and QBOA fall into the category of Software as a Service (SaaS). You typically don’t buy SaaS software; instead, you rent it (that is, you purchase a subscription).

Because SaaS software is typically web-based software, you access SaaS software over the Internet using a browser. A browser is software installed on your local computer or mobile device that you use to, well, browse the Internet, looking up cool stuff like what the stock market is doing today, what kind of weather you can expect on Friday when your vacation starts, how to get to your boss’s house for the party she’s having, and — oh, yes — to work with web-based software such as QBO and QBOA. In the case of QBO and QBOA, you can work with these web-based SaaS products using either a browser or an app you download to your computer.

Using web-based software can be attractive for a number of reasons. For example, using web-based software, you have access to that software’s information anywhere, anytime, from any device — stationary or mobile.

Some people see the ‘anywhere, anytime’ feature as a potential disadvantage because it makes information too readily available — and therefore a target for hackers. Intuit stores your data on servers that use bank-level security and encryption, and Intuit automatically backs up your data for you. Others see the ‘anywhere, anytime’ feature as a disadvantage for exactly the reason that they have access to the software’s information anywhere, anytime and from any device, offering the opportunity to work more than they’d like. You are in charge of your life, so … no comment on this ‘disadvantage’.

In addition to the ‘anywhere, anytime’ advantage, web-based software like QBO and QBOA promotes collaboration and can help you save time. Using QBO and QBOA, accountants, bookkeepers and business users can communicate about issues that arise, as described in Chapter 16.

Then there’s the issue of keeping software up to date. Desktop software such as QuickBooks is updated typically once each year. Unlike their desktop cousin, QBO and QBOA are updated (automatically by Intuit without your time and effort) every two to four weeks.

Because updating occurs so frequently to QBO and QBOA, by the time this book is published, things (and screens) might have changed. Actually, make that ‘probably have changed’.

System Requirements

Using a web-based software product typically doesn’t require a lot of hardware and software; in fact, the demands of QBO and QBOA aren’t extensive. In particular, you need

• An Internet connection — Intuit recommends a high-speed connection
• One of the four supported Internet browsers:
  • Chrome
  • Firefox
  • Internet Explorer 10 or higher
  • Safari 6.1 if your operating system is iOS 7 or higher

Although QBO and QBOA work in all the major browsers, they work best, in our experience, in Chrome, with Firefox coming in a close second. Therefore, we use Chrome throughout this book, and the Part of Tens chapters cover using Chrome so that you can get comfortable with that browser. If you’re a Firefox user, give QBO and QBOA a try in Firefox.

You also can use the QuickBooks Online mobile app, which works with Windows phones and tablets, the iPhone and the iPad, and Android phones and tablets. The requirements for the QuickBooks Online mobile app are the same as those outlined for the non-mobile versions: You need a browser on your device and an Internet connection. Be aware that mobile devices do not support all features of QBO and QBOA (see Figure 1-6 for an example of this).

In this book, we use a Windows 10 desktop computer and the Chrome browser.

Whether you work on a desktop computer or on a mobile device, the computer or device should meet the basic requirements of the operating system you use on that computer or device. For example, if you’re using a Windows desktop computer, you need the amount of RAM (random access memory) specified by Microsoft to load Windows on the computer before you can even launch your browser. If you don’t have sufficient RAM to run the operating system, you certainly won’t be happy with the behaviour of QBO and QBOA. You won’t be happy with the behaviour of the computer, either.

Basic requirements (and we stress the word basic) for a Windows 7, 8.1, and 10 computer, as specified by Microsoft, are

• 1-gigahertz (GHz) or faster 32-bit (x86) or 64-bit (x64) processor
• 1 gigabyte (GB) of RAM (32 bit) or 2GB of RAM (64 bit)
• 16GB of available hard disk space (32 bit) or 20GB (64 bit)
• A display that supports at least 800 x 600 dpi
• DirectX 9 graphics device with WDDM 1.0 or higher driver

These versions of Windows work with multi-core processors, and all 32-bit versions of Windows can support up to 32 processor cores, whereas 64-bit versions can support up to 256 processor cores.

A word on the word basic. You’ll be a whole lot happier if your desktop computer components have higher numbers than the ones in the preceding list. If you have a computer that’s fairly new — say, three to four years old — you might need only to add some RAM or possibly hard disk space. If your computer is older than three or four years, you should consider purchasing new equipment, simply because you’ll be unbelievably happier with the computer’s performance. Technology continues to improve dramatically in short spurts of time.

If you buy a new computer, you don’t need to worry about much to meet more than the basic requirements. We’re pretty sure you can’t buy a new computer containing a 1GHz processor; most computers today come with at least 2.5GHz processors and they support better graphics than the DirectX 9 graphics listed in the basic requirements. And most monitors available for purchase today don’t support low resolutions such as 800 x 600; you most likely own a monitor that supports higher resolution. In our opinion, 1GB of RAM is insufficient; your desktop computer should have at least 4GB of RAM, and you’ll be much happier if it has 8GB of RAM. On the hard drive requirement, if you don’t have the 16GB or 20GB of available space specified, you probably should be considering a hard drive replacement for your computer.

The amount of RAM your computer can successfully use depends on the computer’s architecture — in particular, if your computer uses a 32-bit processor, as older computers often do, your computer might not be able to ‘see’ more than 4GB of RAM. So, you could put 16GB of RAM in the computer and only be able to use 4GB. And part of that 4GB goes to other stuff, like your video card; so, with most 32-bit processors (there are a few exceptions), your computer can use only 3GB of RAM. Bottom line here: Newer computers use 64-bit processors and can take advantage of much more RAM, which makes them much faster.

It’s All about Subscriptions

QBO and QBOA fall into the category of Software as a Service (SaaS). As such, you don’t buy the software. Instead, you rent it; that is, you buy a subscription to use the software for a time period specified by the seller.

Traditionally, you buy a licence to use software that you install on your computer and, typically, that licence permits you to install the software on only one computer.

Of course, a QBO user can pay varying amounts for a subscription, depending on the subscription level purchased.

QBO is available at four different subscription levels, and each subsequent subscription level costs more and contains more functionality. The QBO subscriptions available at the time of writing are

• Self-Employed
• Simple Start
• Essentials
• Plus

All versions of QBO share three attributes in common. First, you can use a tablet, smartphone or desktop computer to access your data (except for Self-Employed, because it is app-based only). Second, your data is automatically backed up online. And third, all versions of QBO use 128-bit Secure Sockets Layer (SSL), the same security and encryption used by banks to secure data sent over the Internet.

After you assess your needs as described in Chapter 1, use the following information to identify the subscription level that will meet your requirements. You can also later upgrade subscriptions to a higher level, but you cannot downgrade to a lower level.

What Does QBO Cost?

The big question: What does it cost? The price is dependent primarily on the QBO version you choose.

If you’re a business user who signs up on your own for a QBO subscription, the price per month at the time of writing appears in Figure 2-1. You should check the Intuit QuickBooks Online website for regular specials and the option of a free trial.

The prices shown in Figure 2-1 are monthly subscription prices and, at the time of writing, the sale price was good for six months.

If you opt for a 30-day free trial, you won’t get the sale price for the subscription. But, if you ‘buy now’, Intuit gives you a 60-day, money-back guarantee on your purchase.

If you are an accounting professional, you can sign up for the Wholesale Pricing program and use QBOA for free. If you create a client’s company as part of the Wholesale Pricing program and you manage the client’s subscription, Intuit sends you the bill for the client’s subscription. It is then your responsibility to bill the client for the QBO subscription. The bill you receive from Intuit is a single consolidated bill for all the QBO subscriptions you manage. For a little more information on the Wholesale Pricing program, see Chapter 13. But for the complete skinny on the Wholesale Pricing program, contact Intuit. Note that accounting professionals might be able to get QBO for their clients at a reduced price.

If an accounting professional creates a company through QBOA, the company does not come with a 30-day free trial. Instead, at the time the accounting professional creates the company, she must provide a payment method to ensure uninterrupted service.

If your client initially sets up QBO with his or her own subscription, you can move that existing QBO subscription to your consolidated bill at the discounted rate. And, if your arrangement with your client doesn’t work out, you can remove the client from your consolidated bill, and the client can begin paying for his own subscription.

Addressing Payroll Needs

When you sign up for QBO Simple Start, Essentials or Plus subscriptions (or your accountant/bookkeeper creates a file for you), you will automatically have access to payroll features via KeyPay, a third-party provider with software that is fully integrated into the QBO program. At the time of writing, payroll is free for up to 10 employees per month — if you have more employees than this, an additional cost of $4 per additional employee is charged via a separate billing method. This means KeyPay will prompt you to enter payment details and will bill you directly. For details on paying employees, see Chapter 9.

To turn on the Payroll feature, go to the Employees section of the Navigation bar and click the Turn on Payroll button (see Figure 2-2).

Switching from QuickBooks Desktop

At this point (or maybe earlier than now), you might be wondering if you can easily switch to QBO if you have been a QuickBooks desktop program user. The answer is yes. The Appendix provides details on importing QuickBooks desktop data into QBO. And the import process doesn’t affect your original desktop company; it’s still available via the desktop product.

After you import your desktop data into QBO, you should run the Profit & Loss report and the Balance Sheet using the Accrual method for all dates from both QBO and QuickBooks desktop to ensure both versions show the same information. You should also reconcile any bank accounts.

And if you want some reassurance that you’ll get the same accurate information from QBO that you got from QuickBooks desktop, you can ‘run in parallel’ for a time period you specify. For example, you might decide to enter all your transactions in both versions of the software for one month; at the end of that time, you can run reports from both products and make sure you see the same information.

Although you can continue to use the QuickBooks desktop while using QBO, once you make the switch to QBO, be aware that no synchronisation occurs between QuickBooks desktop and QBO. So changes you make in one are not reflected in the other. Unless you’re temporarily running in parallel, continuing to use both products could really mess up your books, because you might accidentally enter transactions into one product and not the other.

Where Add-On Apps Fit In

QBO doesn’t operate as a complete, standalone accounting solution. It does have functional limitations. To achieve more functionality in QBO, you can use apps (available via Intuit add-ons).

Many third-party developers have been creating apps to enhance the functionality of QBO and, over time, you can expect more apps to be developed.

In QBO, you can click the Apps link in the Navigation bar that runs down the left side of QBO to visit the App Centre and explore available apps. In QBOA, this won’t appear, so you need to go directly to the QuickBooks App Store (apps.intuit.com) to research and connect apps to your file. Figure 2-3 shows the QBO App Centre and some of the available apps.

Click any app to navigate to a page that describes the app, provides pricing information and often provides a video about the app (see Figure 2-4).

Apps are making inroads towards eliminating any possible software limitations. For example, Lettuce, an app that provides advanced inventory management features for QBO, did such a fine job of handling inventory functions that Intuit acquired Lettuce for the purpose of integrating it into QBO.