How to Use QuickBooks Pro 2008 for Accounting

Use QuickBooks for accounting.

Using QuickBooks Pro 2008 for Accounting is simple. QuickBooks Pro 2008 is an accounting-based software and is built to merge all your business transactions into the financial statements. When you set upyour company in QuickBooks, you will select the information that will do the accounting behind the scenes as you work.

Things You'll Need

• Company type
• Previous chart of accounts

Instructions

Set Up Your Company Type

1. Choose your company type when installing QuickBooks. Choose the default chart of accounts for your company type. QuickBooks automatically adds Accounts Receivable, Accounts Payable, Open Balance Equity, Payroll Accounts, Inventory, Purchase Orders and Inventory assets, Sales Tax and other accounts based on the options selected when setting up your company.

2. Choose "Edit," from the menu bar, and then "Preferences," and "Accounting." There are choices for account numbers and warnings for transactions entered using dates less than the current date.

3. Choose "Account numbers." Choose "Require Accounts." This ensures that you can easily see your transactions in the Income Statement and Balance Sheet.

Set Up Your Chart of Accounts

1. Set up an account: Choose "Lists" and then choose "Chart of Accounts."

2. Note that the chart of accounts already set up in QuickBooks appears. Choose the "Accounts" button at the bottom of the screen and select "New Account."

3. Select the type of general ledger account for this new account from the list that appears: income, expense, fixed asset, bank, loan, credit card or equity. There is also choice titled "Other accounts" comprising accounts receivable, other current asset, other asset, accounts payable, other current liability, long term liability, cost of goods sold, other income and other expense.

4. Choose Continue. Enter the account number and account name. Enter a description if desired. Choose "Save and Close," or "Save and Continue" to set up several accounts.

Accounting As You Work In QuickBooks

1. Enter a customer invoice, and QuickBooks automatically debits Accounts Receivable and Cost of Goods Sold, and credits Income and Inventory.

2. Enter a vendor invoice, and QuickBooks automatically credits Accounts Payable and debits the expense account.

3. Note that when you receive inventory, QuickBooks automatically credits the Accounts Payable and debits the inventory account. When you enter the Accounts Payable invoice for the inventory, you choose the inventory items that were already received.

Tips & Warnings

• Accounts are also added as you set up customers, vendors and inventory items. In the master files for these, choose the account most often associated with the transaction.