Welcome to Computerized Accounting with QuickBooks Online!

We wrote this book to give students an introduction to QuickBooks Online that focuses not only on the software mechanics, but also on the basic accounting concepts that underlie all accounting systems. This book is not meant to be a user manual. Students will come away from this book with an understanding that it is their knowledge of the principles of accounting, not their data-entry skills, that is needed to be successful in business.

Target Audience

This book is primarily intended  for use in undergraduate accounting programs,  although it could be used in business or computer  information programs as well. It is expected that students  taking this course have already successfully completed  a course in financial ac- counting  and have a firm understanding of the basic principles of accounting.

Access to QuickBooks Online Plus

Each new copy of this book includes a full year of access to QuickBooks Online Plus. Students should refer to the insert at the front of the book, which contains instructions  on registering with Intuit and accessing the complimentary cloud-based software. With  QuickBooks Online, students use their Internet browser to use the software—no installation required— and it can be used on any device with Internet access. Browsers supported  by Intuit  are: Google Chrome, Mozilla Firefox, Microsoft Edge, and Safari 11 or newer. (A high-speed Internet connection is recommended, such as DSL or cable modem. For more information go to  https://quickbooks.intuit.com/learn-support/en-us/install-or-update-products/ system-requirements-for-quickbooks-online-accountant-and/00/188943.)

New to This Edition

• A new section, Automation,  Data Analysis, and QBO, has been added.
• Salish Software Solutions homework company has been updated with new transaction amounts and dates in Chapters  3 through 8 and new transactions in Chapters  9 through 11.
• Math  Revealed! homework company has been updated with new dates in all chapters and new transactions in Chapters  9 through 11.
• The Management Tools chapter (covering budgets and segment reporting) now precedes the Project Tracking and Billing for Time and Expenses chapter.
• The  Payroll chapter now includes expanded coverage of basic payroll processes. Stu- dents will be able to use the 30 day free payroll trial company.
• A  new appendix, Managing and Using Tags, has been added to the Management Tools chapter.
• A new section, Beyond the Clicks has been added to end-of-chapter review. The section describes issues faced by accounting and information systems managers, related to chapter content.  These can be assigned to students as essay projects.
• A new certification practice exam has been developed.

Outstanding Features of This Book

Structure

The book is designed in such a way that the accounting  concepts, as well as the software mechanics, get more complex with each section. Other books focus primarily on software data entry. This book allows the students to see why events are recorded the way they are in a computerized accounting system while refreshing  students’ knowledge of accounting concepts and reinforcing  the accounting and journal entries behind transactions.  

• Section One—Introduction
• The first chapter introduces  students to the basic structure  of QuickBooks Online Plus (QBO).
• Moving around in QBO
• QBO organization
• Reporting and using QBO
• In the second chapter, the process of creating new company files is covered.
• Customizing settings
• Importing data into QBO
• Section Two—Service Companies
• The next three chapters (Chapters 3, 4, and 5) cover the sales, purchase, and end-of-month cycles in a service company.
• Students are introduced  to accounting for basic transactions in a computerized environment.
• Sales on account and cash sales
• Purchases on account and cash purchases
• Customer collections and vendor payments
• Bank reconciliations
• Standard end-of-month adjusting entries
• Financial statement reporting
• Section Three—Merchandising Companies
• The section introduction includes a description  of internal controls in QBO.
• Chapters 6, 7, and 8 cover the sales, purchase, and end-of-month cycles in a merchandising company.
• Students are introduced  to accounting for more complex transactions in a computerized environment.
• Purchase and sale of inventory
• Sales tax
• Sales and purchase discounts
• Inventory tracking, adjustment, and valuation
• Bad debts and bounced checks
• Downloading bank transactions
• Section Four—Beyond the Basics
• Chapter 9 covers budgeting,  segment reporting, and automated  entries.
• Creating budgets and budget variance reports
• Using location and class tracking to report on business segments
• Creating reversing and recurring transactions
• Chapter 10 covers tracking and billing for time and expenses.
• Tracking projects
• Billing for time and expenses
• Tracking and reporting profitability by project
• Chapter 11 covers a number  of special tools in QBO.
• Saving customized reports
• Customizing forms
• Managing attachments
• Exporting reports to Excel
• Uploading receipts
• Section Five—Paying Employees
• Chapter 12 covers basic payroll functions that would be used in all types of companies (service, merchandising, and manufacturing).
• Setting up payroll policies
• Managing employees
• Processing payroll
• Section Six—Automation, Data Analysis, and QBO
• Chapter 13 covers basic concepts in data analysis and how new technologies  are incorporated into QBO.
• Types and sources of data
• Types and uses of data analysis
• Various cognitive technologies and their use in QBO
• Related privacy and ethical issues

Clear Writing

The book is written  clearly to aid student  understanding of difficult concepts.  Clear explanations of why certain procedures are used in QBO are supported  by relevant examples and relatable end-of-chapter assignments, serving to bridge the gap between computerized accounting concepts and real-world application.

Real-World Scenarios

Most computerized accounting textbooks on the market approach the teaching of QuickBooks in a prescriptive manner,  going through the procedures of the software while overlooking how an accountant  would actually utilize the software in the real world. The book takes a practical approach and shows the student  how the software is used in a business environment. In addition to the standard financial reports,  students  are exposed to job, segment, and variance reports.

Unique Pedagogy

This book's four-color format facilitates student understanding and draws attention to the key concepts and pedagogy. Ample screenshots provide students realistic snapshots of what they will see when working in the software. A host of pedagogical elements serve as helpful illustrations, providing additional context and further concept reinforcement.

HINT Boxes

HINT boxes appear throughout to provide helpful quick tips and tricks for working more efficiently in QBO.

WARNING Boxes

WARNING boxes highlight common technical pitfalls to avoid.

BEHIND THE SCENES Boxes

BEHIND THE SCENES boxes provide additional context in support of the accounting that is going on inside the computer.

QuickChecks

When students are learning accounting application software, it’s natural for them to focus on the software mechanics and forget that they’re taking an accounting course. To help put some of their focus back on accounting, students are periodically asked a question related to material covered in the chapter. he questions are intended  to remind  them, either directly or indirectly, of underlying accounting concepts. The answers are included at the end of each chapter.

Key Terms

Appearing in red, bold font in the first instance, key terms are defined for the student in the margins of the text for a quick refresher.  A comprehensive glossary is included in the back of the book. 

Practice Exercises

Practice Exercises are included  at the end of sections in the first eleven chapters.  The exercises provide students  an immediate opportunity to practice the material  they just learned and prepare them for completing the chapter assignments. The exercises use the QBO  test drive company, a fictional company called Craig’s Landscaping  and Design set up by Intuit.

The Practice Exercises can be done in class, with the instructor, or can be done by the students, on their own, as part of the lab component of a face-to-face course or in online courses. Check figures are included with the exercises to reassure students that they are recording  the transactions accurately.

End-of-Chapter Material

End-of-chapter review material includes:

• Chapter shortcuts
• Chapter review with matching  of terms to definitions and multiple  choice  questions that are a combination  of accounting concepts and QuickBooks application questions and management questions related to chapter content.
• Two examples of issues faced by accounting and information systems managers, related to chapter content.
• A choice of two end-of-chapter assignments featuring fictional companies that move from selling services exclusively in the early chapters to selling both services and products in the later chapters.

The assignments include check numbers for students. This allows them to focus on the process and reduces student frustration.

Appendices

There are a number of additional topics that are helpful to students as they master QBO, and these have been included as end-of-chapter and end-of-book appendices. Instructors may wish to cover these topics in class or have students go over them on their own time. End-of-chapter appendices on special topics include:

Students often have a difficult time seeing any similarities between computerized accounting systems and the more manual systems they saw in their introductory financial accounting classes (the journal entries, T-accounts, and general ledgers). To help students connect the two, Appendix A (Is Computerized Accounting Really the Same as Manual Accounting?) is an accounting refresher that compares manual and computerized accounting  and provides examples of how journal entries, journals, T-accounts, and trial balances show up in QBO. It also covers cash versus accrual accounting.

Certiport-Mapped

The book has been mapped to the 10 domains that comprise the exam objectives for the QuickBooks Certified User Exam. A map correlating the chapter content  to the Certiport domains is available to students  on the book’s website so they can streamline  their exam preparation.

What Is the QuickBooks Certified User Exam?

The Intuit® QuickBooks Certification exam is an online exam that is proctored at Certiport Authorized Testing Centers.  The certification program validates QuickBooks accounting skills while providing students with credentials that demonstrate real-world abilities to prospective employers. Once passed, test takers receive an official digital certificate representing their skills in QuickBooks.