Computerized Accounting with QuickBooks Online, 5e

by Williams, Johnson

ISBN: 978-1-61853-430-9 | Copyright 2022

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Welcome to Computerized Accounting with QuickBooks Online!

Computerized Accounting with QuickBooks Online was written 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. It is our intention that 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

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

Access to Quickbooks Online Plus

Intuit provides students with complimentary, twelve-month academic licenses for QuickBooks Online Plus.  Instructors manage the distribution of those licenses. 

QuickBooks Online is a cloud-based software product.  Browsers supported by Intuit are Google Chrome, Mozilla Firefox, Microsoft Edge, and Safari 11 or newer.  A high speed Internet connection is recommended.  For more information go to system-requirements-for-quickbooks-online-accountant-and/00/188943.

New to This Edition

  • Section Six—Cognitive Technologies, Data Analysis, and QBO—has been revised and updated. The section now includes a chapter on big data, artificial intelligence, and cognitive technologies and one on data analysis and visualization.
  • A new appendix, Keyboard Shortcuts in QBO, has been added to Chapter 1.
  • A new appendix, FIFO Layers in QBO, has been added to Chapter 7.
  • Math Revealed! and Salish Software Solutions homework companies have both been updated with new transaction dates. Math Revealed! has also been updated with new transaction amounts.
  • Chapter road maps of tasks and transactions are now available to instructors.
  • The book has been updated for changes to QBO software.

Outstanding Features of This Book


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 OneIntroduction
    • Chapter 1 introduces students to the basic structure of QuickBooks Online Plus (QBO).
    • Chapter 2 discusses the process of creating company files in QBO.
  • Section Two—Service Companies
    • The section introduction includes suggestions for finding errors in QBO.
    • Chapters  3, 4, and 5 cover basic transactions in the sales, purchase, and end-of-month  cycles of a service company.
  • Section Three—Merchandising Companies
    • The section introduction includes a description  of internal controls in QBO.
    • Chapters  6, 7, and 8 cover more advanced transactions including those found in the sales, purchase, and end-of-month cycles of a merchandising  company.
  • Section Four—Beyond the Basics
    • Chapter 9 covers budgeting, segment reporting, and automated entries.
    •  Chapter 10 covers tracking and billing for time and expenses.
    • Chapter 11 covers a number  of special tools in QBO such as saving customized reports,  customizing forms, managing attachments, exporting to Excel, and uploading receipts.
  • Section Five—Paying Employees
    • Chapter 12 covers basic payroll functions.
  • Section Six—Cognitive Technologies, Data Analytics, and QBO
    • Chapter 13 covers big data, artificial intelligence,  cognitive technologies, and QBO.
    • Chapter  14 covers data analysis and data visualization.

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 approacand shows the student  how the software is used in a business environment. In additioto the standarfinancial reportsstudentare exposed to job, segment, and variance reports.

Unique Pedagogy

The 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 highlight common technical pitfalls to avoid.


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


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. The 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 studentan immediate  opportunity to practice  the material  they just learned and prepare them for completing  the chapter assignments. The exercises use the QBtest 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 related to chapter content
  • Essay questions focused on issues faced by accounting and information systems managers, related to chapter content.
  • choice of two end-of-chapter assignments featuring fictional companies that move from services exclusively in the early chapters to selling both services and products in the later chapters.

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


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.


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. A practice exam question bank is included in myBusinessCourse.

What Is the QuickBooks Certified User Exam?

The Intuit®  QuickBooks  Certification exam is an online exam that is proctored at Certiport  Authorized  Testing CentersThcertification  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.

Technology That Improves Learning and Complements Faculty Instruction

is an online learning and assessment program intended to complement  textbook and faculty instruction. Access to myBusinessCourse (MBC) is included with the purchase of a new textbook and can also be purchased separately.

MBC is ideal for faculty seeking opportunities to augment their course with an online component. MBC is also a turnkey solution for online courses. Following are some of the features of MBC.

Increase Student Readiness

  • Auto-graded question banks comprised  of practice exercises and assignment questions related to the end-of-chapter content  provide immediate feedback to students. Assignments available in MBC are denoted by the  icon.
  • Test Bank questions can be incorporated into your assignments for additional quizing and tests.
  • Instructor gradebook with immediate grade results
  • eLecture videos created and narrated bthe author provide extra coverage of essential topics and procedures.  eLecture videos in MBC are denoted by the  icon.

Make Instruction Needs-Based

  • Identify where your studetns are struggling and customize your instruction to address their needs.
  • Guage how your entire class or individual students are performing by viewing the easy-to-use gradebook.
  • Ensure your students are getting the additional reinforcement and direction  they need between class meetings.

Provide Instruction and Practice 24/7

  • Assign homework from your textbook and have MBC grade it for you automatically. 
    • Assignments with the  logo in the margin are available in myBusinessCourse.
  • With the author-created eLecture videos, your students can revisit accounting topics as often as they like or until they master the topic. 
    • Topics with the  logo next to it in the margin are available as an eLecture video in myBusinessCourse.
  • Offer students multiple homework attempts giving them valuable practice finding and fixing accounting errors.

Introducing myBusinessCourse

myBusinessCourse is a complete, secure, web-based training and e-Learning solution. There is nothing to download or install; it is accessible through any modern web browser and most mobile devices.

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eLecture Videos

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  • Cover learning objectives and concepts from each chapter
  • Ideal for remediation
  • Ideal for online and hybrid classrooms

Narrated demonstration videos

Guided Example Videos

  • Created by the authors of the textbook
  • Provide problem solving strategies as well as solutions
  • Offer clear, step-by-step demonstrations of how to solve select problems from the textbook

Auto-graded assignments

Auto-graded Assignments

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  • Additional randomized versions of assignments provide extra practice
  • Ideal for remediation
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Respondus LockDown Browser

Respondus LockDown Browser®

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  • An assessment cannot be exited until the student submits it for grading
  • Assessments set up with LockDown Browser cannot be accessed with other browsers
  • Students use their preferred device to take exams (iPad, Mac, Windows)
  • Students will be prompted to install LockDown Browser prior to accessing the exam

Detailed Reporting Tools

Detailed Reporting Tools

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Enhanced eBook

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  • With linear-mode, get full control over the deck. Go back and forth between cards, shuffle and auto-play the deck.
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  • Faculty training conducted daily
Expand/Collapse All
About the Authors (pg. iii)
Preface (pg. iv)
Brief Table of Contents (pg. xiii)
Contents (pg. xiv)
Section One Introduction (pg. 1-1)
Section Overview (pg. 1-2)
Chapter 1 Introduction to QuickBooks Online (QBO) (pg. 1-3)
A Little Background (pg. 1-4)
QuickBooks Online (pg. 1-5)
Before We Go Any Further (pg. 1-6)
Where To Go For Help (pg. 1-7)
Practice (pg. 1-7)
Accessing the Test Drive Company (pg. 1-7)
Moving Around in QuickBooks Online (pg. 1-10)
Accessing Tools (pg. 1-10)
Forms (pg. 1-15)
Multiple Open Screens (pg. 1-17)
Finding Transactions (pg. 1-18)
Practice Exercise 1.1 (pg. 1-20)
Organization of QuickBooks Online (pg. 1-21)
The Importance of “Lists” (pg. 1-21)
Adding, Editing, or Inactivating Accounts (pg. 1-22)
Practice Exercise 1.2 (pg. 1-25)
Other Lists in QuickBooks Online (pg. 1-26)
Editing a Product or Service Item (pg. 1-26)
Practice Exercise 1.3 (pg. 1-28)
Transactions in QuickBooks Online (pg. 1-28)
Reporting (pg. 1-30)
Customizing Reports (pg. 1-31)
Printing Reports (pg. 1-36)
Practice Exercise 1.4 (pg. 1-37)
Chapter Shortcuts (pg. 1-38)
Chapter Review (pg. 1-39)
Matching (pg. 1-39)
Multiple Choice (pg. 1-39)
Beyond the Clicks-Thinking Like a Manager (pg. 1-40)
Assignment 1 (pg. 1-40)
Appendix 1A Keyboard Shortcuts In QBO (pg. 1-41)
QBO Keyboard Shortcuts Available on the Dashboard or in Navigation Tab Windows (pg. 1-41)
QBO Keyboard Shortcuts Available in Forms (pg. 1-42)
Useful Shortcuts in Date Fields (pg. 1-42)
Chapter 2 Setting Up Company Files (pg. 2-1)
Introduction (pg. 2-2)
Setting Up Company Files in QBO (pg. 2-3)
Setting Up Brand New Companies in QBO (pg. 2-3)
Converting Existing Companies to QBO (pg. 2-4)
Customizing QuickBooks Online (pg. 2-5)
Editing Settings In a Company File (pg. 2-5)
Practice Exercise 2.1 (pg. 2-9)
Setting Up Your Homework Company File (pg. 2-9)
STEP 1-Read the background information for the homework company assigned by your instructor included (pg. 2-9)
STEP 2-Obtain your license and open your company file. (pg. 2-10)
STEP 3-Answer the informational questions that appear in the next set of screens. (pg. 2-11)
STEP 4-Change the settings. (pg. 2-13)
STEP 5-Purge the chart of accounts. (pg. 2-17)
STEP 6-Import a new chart of accounts. (pg. 2-18)
STEP 7-Import the products and services list. (This process will be similar to the import of the cha (pg. 2-21)
STEP 8-Import customers. (This process will be similar to the import of products and services.) (pg. 2-23)
STEP 9-Import vendors. (This process will be similar to the import of customers.) (pg. 2-24)
STEP 10-Import invoices. (pg. 2-26)
STEP 11—Check your balances (pg. 2-29)
Chapter Shortcuts (pg. 2-29)
Chapter Review (pg. 2-30)
Matching (pg. 2-30)
Multiple Choice (pg. 2-30)
Beyond the Clicks-Thinking Like a Manager (pg. 2-31)
Assignment 2A (pg. 2-31)
Final Conversion Work (pg. 2-32)
Assignment 2B (pg. 2-38)
Final Conversion Work (pg. 2-39)
Appendix 2A Setting Up Your Google Gmail Account (pg. 2-45)
If This Is Your First Gmail Account (pg. 2-45)
If You Already Have a Gmail Account (pg. 2-47)
Section Two Service Companies (pg. 3-1)
When You Make Mistakes (pg. 3-1)
Suggestions for Finding Mistakes (pg. 3-2)
Section Overview (pg. 3-3)
Chapter 3 Sales Activity (Service Company) (pg. 3-5)
What is the Sales Cycle in a Service Company? (pg. 3-6)
Setting Up Standard Sales Settings (pg. 3-6)
Practice Exercise 3.1 (pg. 3-7)
Managing Customers (pg. 3-8)
Customer Center Display (pg. 3-8)
Adding a Customer (pg. 3-10)
Viewing Customer Information (pg. 3-12)
Changing Customer Information (pg. 3-13)
Inactivating a Customer (pg. 3-14)
Practice Exercise 3.2 (pg. 3-16)
Managing Service Items (pg. 3-16)
Organizing Products and Services (pg. 3-17)
Adding a Service Item (pg. 3-19)
Editing, Duplicating, and Inactivating Products and Services (pg. 3-21)
Practice Exercise 3.3 (pg. 3-22)
Setting Up Credit Terms (pg. 3-24)
Practice Exercise 3.4 (pg. 3-26)
Recording Sales Revenue (pg. 3-26)
Recording Sales on Account (pg. 3-27)
Recording Cash Sales (pg. 3-29)
Practice Exercise 3.5 (pg. 3-31)
Recording Payments from Customers (pg. 3-32)
Payments on Account (pg. 3-33)
Practice Exercise 3.6 (pg. 3-36)
Making Deposits (pg. 3-36)
Practice Exercise 3.7 (pg. 3-38)
Recording Customer Credits and Refunds (pg. 3-39)
Creating Credit Memos with Automatic Application Set as the Preference (pg. 3-40)
Creating Credit Memos with Manual Application (Automatic Application Preference Turned Off) (pg. 3-42)
Issuing Refunds to Customers (pg. 3-43)
Practice Exercise 3.8 (pg. 3-45)
Sales and Customer Reports (pg. 3-47)
Practice Exercise 3.9 (pg. 3-49)
Sales Cycle Summary (pg. 3-50)
Chapter Shortcuts (pg. 3-51)
Chapter Review (pg. 3-51)
Matching (pg. 3-51)
Multiple Choice (pg. 3-52)
Beyond the Clicks-Thinking Like a Manager (pg. 3-52)
Assignment 3A (pg. 3-53)
Assignment 3B (pg. 3-58)
Chapter 4 Purchasing Activity (Service Company) (pg. 4-1)
What is the Purchase Cycle in a Service Company? (pg. 4-2)
Managing Vendors (pg. 4-2)
Vendor Center Display (pg. 4-3)
Adding a Vendor (pg. 4-4)
Viewing Vendor Information (pg. 4-6)
Editing Vendor Information (pg. 4-7)
Inactivating a Vendor (pg. 4-8)
Practice Exercise 4.1 (pg. 4-9)
Recording Purchases (pg. 4-10)
Automation in QBO (pg. 4-10)
Purchasing on Account (pg. 4-12)
Practice Exercise 4.2 (pg. 4-14)
Purchasing with Cash or Check (pg. 4-16)
Practice Exercise 4.3 (pg. 4-17)
Voiding Checks (pg. 4-18)
Practice Exercise 4.4 (pg. 4-20)
Purchasing with a Credit Card (pg. 4-21)
Practice Exercise 4.5 (pg. 4-23)
Paying Vendor Balances (pg. 4-24)
Paying Multiple Vendor Bills (pg. 4-25)
Paying One or More Bills from a Single Vendor (pg. 4-27)
Purchases Cycle Summary (pg. 4-28)
Practice Exercise 4.6 (pg. 4-28)
Vendor Reports (pg. 4-29)
Practice Exercise 4.7 (pg. 4-29)
Chapter Shortcuts (pg. 4-30)
Chapter Review (pg. 4-31)
Matching (pg. 4-31)
Multiple Choice (pg. 4-31)
Beyond the Clicks-Thinking Like a Manager (pg. 4-32)
Assignment 4A (pg. 4-32)
Assignment 4B (pg. 4-36)
Appendix 4A Reporting 1099 Vendor Activity (pg. 4-40)
Chapter 5 End-of-Period Activity (Service Company) (pg. 5-1)
Before Issuing Financial Statements (pg. 5-2)
Reconciling Bank and Credit Card Accounts (pg. 5-3)
Bank Reconciliations (pg. 5-3)
Practice Exercise 5.1 (pg. 5-7)
Credit Card Reconciliations (pg. 5-8)
Practice Exercise 5.2 (pg. 5-12)
Making Adjusting Journal Entries (pg. 5-12)
Practice Exercise 5.3 (pg. 5-14)
Preparing Financial Statements (pg. 5-15)
Practice Exercise 5.4 (pg. 5-18)
Closing a Period (pg. 5-19)
Closing an Accounting Period (pg. 5-19)
Practice Exercise 5.5 (pg. 5-20)
Year-end Closing (pg. 5-21)
Chapter Shortcuts (pg. 5-22)
Chapter Review (pg. 5-22)
Matching (pg. 5-22)
Multiple Choice (pg. 5-23)
Beyond the Clicks-Thinking Like a Manager (pg. 5-23)
Assignment 5A (pg. 5-24)
Assignment 5B (pg. 5-27)
Appendix 5A Getting It Right (pg. 5-29)
Appendix 5B Understanding the Reconciliation Report (pg. 5-31)
Appendix 5C Fixing Reconciliation Errors (pg. 5-34)
Section Three Merchandising Companies (pg. 6-1)
Controls in QuickBooks Online (pg. 6-1)
Managing Users (pg. 6-1)
Adding Users (pg. 6-2)
Editing, Monitoring, and Deleting Users (pg. 6-7)
Reporting on Transaction History (pg. 6-7)
Section Overview (pg. 6-9)
Chapter 6 Sales Activity (Merchandising Company) (pg. 6-11)
What is the Sales Cycle in a Merchandising Company? (pg. 6-12)
Managing Customers (pg. 6-12)
Setting Up Sub-Customers (pg. 6-12)
Practice Exercise 6.1 (pg. 6-13)
Shipping Addresses (pg. 6-13)
Practice Exercise 6.2 (pg. 6-14)
Managing Sales Taxes (pg. 6-14)
Setting Up Sales Taxes (pg. 6-15)
Managing the Tax Status of Customers (pg. 6-19)
Practice Exercise 6.3 (pg. 6-21)
Managing Items (Merchandising Company) (pg. 6-21)
Setting Up Inventory Items (pg. 6-22)
Practice Exercise 6.4 (pg. 6-27)
Recording Sales Revenue (pg. 6-27)
Customer Discounts (pg. 6-28)
Practice Exercise 6.5 (pg. 6-30)
Delayed Charges and Delayed Credits (pg. 6-31)
Practice Exercise 6.6 (pg. 6-35)
Recording Uncollectible Accounts (pg. 6-36)
Practice Exercise 6.7 (pg. 6-39)
Recording Payments From Customers (pg. 6-40)
Customer Payments by Credit Card (pg. 6-40)
Practice Exercise 6.8 (pg. 6-41)
Practice Exercise 6.9 (pg. 6-43)
Early Payment Discounts (pg. 6-43)
Practice Exercise 6.10 (pg. 6-45)
Customer Checks Returned by Bank Due to Insufficient Funds (NSF Checks) (pg. 6-46)
Practice Exercise 6.11 (pg. 6-48)
Customer Reports (pg. 6-49)
Practice Exercise 6.12 (pg. 6-50)
Customer Statements (pg. 6-51)
Practice Exercise 6.13 (pg. 6-52)
Chapter Shortcuts (pg. 6-53)
Chapter Review (pg. 6-53)
Matching (pg. 6-53)
Multiple Choice (pg. 6-53)
Beyond the Clicks-Thinking Like a Manager (pg. 6-54)
Assignment 6A (pg. 6-54)
Assignment 6B (pg. 6-59)
Chapter 7 Purchasing Activity (Merchandising Company) (pg. 7-1)
What is the Purchase Cycle in a Merchandising Company? (pg. 7-2)
Purchasing Inventory (pg. 7-2)
Paying at Time of Purchase (pg. 7-3)
Practice Exercise 7.1 (pg. 7-4)
Ordering Inventory (pg. 7-5)
Practice Exercise 7.2 (pg. 7-7)
Practice Exercise 7.3 (pg. 7-9)
Receiving Ordered Inventory (pg. 7-11)
Practice Exercise 7.4 (pg. 7-13)
Practice Exercise 7.5 (pg. 7-15)
Managing Purchase Orders (pg. 7-16)
Practice Exercise 7.6 (pg. 7-17)
Ordering Inventory Without Using the Purchase Order System (pg. 7-18)
Vendor Credits (pg. 7-18)
Entering Credits from Vendors (pg. 7-18)
Applying Credits from Vendors (pg. 7-19)
Practice Exercise 7.7 (pg. 7-20)
Special Considerations for Returns of Inventory (pg. 7-21)
Practice Exercise 7.8 (pg. 7-23)
Paying Vendor Balances (pg. 7-23)
Early Payment Discounts (pg. 7-23)
Practice Exercise 7.9 (pg. 7-26)
Vendor Reports (pg. 7-27)
Practice Exercise 7.10 (pg. 7-27)
Chapter Shortcuts (pg. 7-28)
Chapter Review (pg. 7-28)
Matching (pg. 7-28)
Multiple Choice (pg. 7-28)
Beyond the Clicks-Thinking Like a Manager (pg. 7-29)
Assignment 7A (pg. 7-29)
Assignment 7B (pg. 7-34)
Appendix 7A FIFO Layers in QBO (pg. 7-38)
Chapter 8 End-of-Period and Other Activity (Merchandising Company) (pg. 8-1)
Adjusting Inventory (pg. 8-2)
Practice Exercise 8.1 (pg. 8-6)
Managing Sales Taxes (pg. 8-6)
Remitting Sales Tax Liabilities (pg. 8-8)
Adjusting Sales Tax Liabilities (pg. 8-11)
Deleting Sales Tax Payments (pg. 8-13)
Entering Cash Receipts from Non-Customers (pg. 8-15)
Practice Exercise 8.2 (pg. 8-16)
Recording Bank Transfers (pg. 8-17)
Practice Exercise 8.3 (pg. 8-17)
Uploading Credit Card Transactions Into QBO (pg. 8-18)
Inactivating and Merging General Ledger Accounts (pg. 8-22)
Inactivating an Account (pg. 8-23)
Merging Accounts (pg. 8-25)
Practice Exercise 8.4 (pg. 8-25)
Adding Notes to Reports (pg. 8-26)
Practice Exercise 8.5 (pg. 8-29)
Chapter Shortcuts (pg. 8-29)
Chapter Review (pg. 8-30)
Matching (pg. 8-30)
Multiple Choice (pg. 8-30)
Beyond the Clicks-Thinking Like a Manager (pg. 8-31)
Assignment 8A (pg. 8-31)
Assignment 8B (pg. 8-36)
Appendix 8A Direct Downloading of Bank Transactions Into QBO and Setting Bank Rules (pg. 8-41)
Setting Banking Rules (pg. 8-44)
Section Four Beyond the Basics (pg. 9-1)
Chapter 9 Management Tools (pg. 9-3)
Tracking by Class and Location (pg. 9-4)
Turning on Class Tracking (pg. 9-5)
Turning on Location Tracking (pg. 9-7)
Practice Exercise 9.1 (pg. 9-9)
Setting Up Classes and Locations (pg. 9-9)
Practice Exercise 9.2 (pg. 9-12)
Adding Class to Item Records (pg. 9-13)
Practice Exercise 9.3 (pg. 9-14)
Adding Class and Location to Transactions (pg. 9-15)
Practice Exercise 9.4 (pg. 9-16)
Reporting by Class or Location (pg. 9-17)
Creating and Using Budgets (pg. 9-19)
Creating Budgets (pg. 9-19)
Practice Exercise 9.5 (pg. 9-22)
Creating Budget Reports (pg. 9-23)
Practice Exercise 9.6 (pg. 9-24)
Reversing Entries (pg. 9-24)
Practice Exercise 9.7 (pg. 9-27)
Recurring Transactions (pg. 9-27)
Practice Exercise 9.8 (pg. 9-30)
Chapter Shortcuts (pg. 9-31)
Chapter Review (pg. 9-32)
Matching (pg. 9-32)
Multiple Choice (pg. 9-32)
Beyond the Clicks-Thinking Like a Manager (pg. 9-33)
Assignment 9A (pg. 9-33)
Assignment 9B (pg. 9-40)
Appendix 9A Creating and Managing Tags (pg. 9-47)
Creating Tag Groups (pg. 9-47)
Creating Tags (pg. 9-49)
Adding Tags to Transactions (pg. 9-50)
Reporting on Tagged Transactions (pg. 9-51)
How Do Tags Differ From Classes and Locations? (pg. 9-51)
Chapter 10 Project Tracking and Billing for Time and Expenses (pg. 10-1)
Before We Begin (pg. 10-2)
Working With Projects (pg. 10-2)
Setting Up Projects (pg. 10-2)
Practice Exercise 10.1 (pg. 10-4)
Managing Projects (pg. 10-5)
Setting Up Independent Contractors (pg. 10-7)
Practice Exercise 10.2 (pg. 10-9)
Using Timesheets To Track Hours (pg. 10-9)
Setting Up Time Tracking (pg. 10-10)
Entering Timesheet Data (pg. 10-10)
Editing Timesheets (pg. 10-15)
Tracking Costs Other Than Labor By Project (pg. 10-15)
Turning on Features for Tracking and Billing Direct Expenses (pg. 10-15)
Accounting for Direct Costs Billed to Customers (pg. 10-17)
Practice Exercise 10.3 (pg. 10-20)
Identifying Costs as Billable (pg. 10-20)
Practice Exercise 10.4 (pg. 10-21)
Billing for Time and Costs (pg. 10-22)
Practice Exercise 10.5 (pg. 10-24)
Preparing Project Reports (pg. 10-26)
Practice Exercise 10.6 (pg. 10-27)
Chapter Shortcuts (pg. 10-27)
Chapter Review (pg. 10-28)
Matching (pg. 10-28)
Multiple Choice (pg. 10-28)
Beyond the Clicks-Thinking Like a Manager (pg. 10-29)
Assignment 10A (pg. 10-29)
Assignment 10B (pg. 10-36)
Appendix 10A Working with Estimates (pg. 10-42)
Activating Progress Invoicing (pg. 10-43)
Creating Estimates (pg. 10-43)
Creating Invoices from Estimates (pg. 10-45)
Creating Change Orders (pg. 10-48)
Creating Purchase Orders from Estimates (pg. 10-49)
Chapter 11 Additional Tools (pg. 11-1)
Saving Customized Reports (pg. 11-2)
Practice Exercise 11.1 (pg. 11-5)
Creating Management Reports (pg. 11-6)
Practice Exercise 11.2 (pg. 11-11)
Creating Custom Fields (pg. 11-12)
Practice Exercise 11.3 (pg. 11-14)
Customizing Forms (pg. 11-14)
Using Customized Forms (pg. 11-18)
Exporting Reports to Excel (pg. 11-18)
Uploading and Managing Attachments (pg. 11-21)
Adding Attachments to Customer or Vendor Records (pg. 11-21)
Adding Attachments to Transactions (pg. 11-22)
Adding Attachments Directly to the Attachment Lists (pg. 11-23)
Uploading Receipts (pg. 11-25)
Chapter Shortcuts (pg. 11-27)
Chapter Review (pg. 11-28)
Matching (pg. 11-28)
Multiple Choice (pg. 11-28)
Beyond the Clicks-Thinking Like a Manager (pg. 11-29)
Assignment 11A (pg. 11-29)
Assignment 11B (pg. 11-32)
Section Five Paying Employees (pg. 12-1)
Before We Move Forward (pg. 12-1)
Chapter 12 Payroll Activity (pg. 12-3)
What is the Payroll Cycle? (pg. 12-4)
Processing Payroll in QBO (pg. 12-4)
Payroll Plans Available in QBO (pg. 12-4)
Chapter 12 Structure (pg. 12-5)
Payroll Primer (pg. 12-5)
Becoming an Employer (pg. 12-5)
Hiring Employees (pg. 12-5)
Compensation (pg. 12-7)
Payroll Taxes-Reporting and Remitting (pg. 12-8)
Other Payroll Deductions and Costs (pg. 12-9)
Payroll System Walkthrough (pg. 12-9)
Step 1-Set Up a New Company File (pg. 12-9)
Step 2-Activate Payroll (pg. 12-15)
Step 3-Add Employees (pg. 12-18)
Step 4-Finish the Payroll Setup (pg. 12-28)
Step 5-Process Payroll (pg. 12-36)
Step 6-Remit Payroll Taxes (pg. 12-38)
Step 7-Access Payroll Reports (pg. 12-41)
Chapter Shortcuts (pg. 12-41)
Chapter Review (pg. 12-41)
Matching (pg. 12-41)
Multiple Choice (pg. 12-42)
Beyond the Clicks-Thinking Like a Manager (pg. 12-42)
Assignment 12 (pg. 12-43)
Section Six Cognitive Technologies, Data Analysis, and QBO (pg. 13-1)
Chapter 13 Big Data, Cognitive Technologies, and QBO (pg. 13-3)
What Is Big Data? (pg. 13-4)
More about Types and Sources of Big Data (pg. 13-4)
Processing Big Data (Extracting, Transforming, and Loading) (pg. 13-5)
What is Artificial Intelligence and How is It Used? (pg. 13-6)
Artificial Intelligence in QBO (pg. 13-7)
Privacy and Ethical Issues with Big Data (pg. 13-8)
Chapter Review (pg. 13-9)
Matching (pg. 13-9)
Multiple Choice (pg. 13-9)
Beyond the Clicks-Thinking Like a Manager (pg. 13-10)
Assignment 13 (pg. 13-10)
Chapter 14 Data Analytics and Data Visualization (pg. 14-1)
What is Data Analytics? (pg. 14-2)
Tools for Data Analysis (pg. 14-3)
Analysis Tools in QBO (pg. 14-3)
Analysis Tools in Spreadsheet Programs (pg. 14-4)
Analysis Tools in Data Visualization Software (pg. 14-12)
Best Practices in Data Visualization (pg. 14-14)
Select an Appropriate Chart Type (pg. 14-15)
Use Color to Highlight the Data (pg. 14-15)
Add Text to Explain and Add Context (pg. 14-16)
Remove Unnecessary Elements (pg. 14-16)
Make Sure the Visualizations are Objective and Balanced (pg. 14-16)
Beyond The Numbers and Into The Future (pg. 14-17)
Chapter Review (pg. 14-18)
Matching (pg. 14-18)
Multiple Choice (pg. 14-18)
Beyond the Clicks-Thinking Like a Manager (pg. 14-19)
Assignment 14 (pg. 14-19)
Appendix A Is Computerized Accounting Really the Same as Manual Accounting? (pg. A-1)
Accrual and Cash Basis Accounting in QuickBooks Online (pg. A-3)
Comparison of Computerized and Manual Accounting Systems (pg. A-5)
Journal Entries (pg. A-5)
Journals (pg. A-6)
General Ledger and T-Accounts (pg. A-7)
Trial Balances (pg. A-8)
Appendix B Account Types and Common Transaction Types used in QBO (pg. B-1)
Appendix C Common Options Available on Various Forms (pg. C-1)
Quick Reference Guide To Accounting Terms (pg. G-1)
Index (pg. I-1)
Gayle Williams

Gayle Williams

Adjunct Professor of Accounting, Sacramento City College

Gayle Williams is an Adjunct Professor of Accounting at Sacramento City College, where she teaches computerized accounting. She received a BA in Comparative Literature and an MBA with a concentration in Accounting from the University of Washington. Professor Williams holds a CPA certification from the states of Washington and California and has worked in public accounting, with Voldal Wartelle & Co, P.S. and Moss Adams LLP, and in private industry.

She has books available for both QuickBooks Desktop and QuickBooks Online.

Jennifer Johnson

Jennifer Johnson

Senior Lecturer, the University of Texas at Dallas

Jennifer Johnson is a Senior Lecturer at the University of Texas at Dallas where she teaches accounting information systems courses and related software courses, cost accounting, and seminars in Excel. She is a CPA licensed in the state of Texas. In 2017 she was named as an Outstanding Accounting Educator by the Texas Society of CPAs. Prior to joining UT Dallas in 2009, Professor Johnson spent time in both public accounting and industry as an auditor with PwC, an Assistant Controller at a regional financial services firm, and a Finance Manager at Dr Pepper Snapple Group. Professor Johnson holds both a BBA and MS in Accounting from Texas A&M University. Jennifer is a Certified QuickBooks User and is on the Board of Directors for the Dallas CPA Society and the Texas Society of CPAs. Professor Johnson has a passion for using systems and accounting to communicate the language of business.

Last Updated: Nov 15 2021

Corrections to the text for identified errors and certain software changes.

Getting Started
Last Updated: Jul 26 2021

Helpful information to access the test-drive company and get you started witih QuickBooks Online.

Tips and Updates
Last Updated: Jun 6 2022

Tips for common issues AND Updates for QBO.  Includes:

  • Chapter 1:    New Setup Questions for Invoicing
  • Chapter 1:    Comparison of Old and New Account Setup Screens (NEW June 2022)
  • Chapter 1:    Creating New Accounts (New Process)  (NEW June 2022)
  • Chapter 1:    PE1.2 Revised for Changes in QBO  (NEW June 2022)
  • Chapter 2:    Setting Up Your Company File - Updated Jan 2022
  • Chapter 3:    Unwinding a Sales Transaction
  • Chapter 3 & 4:  New Sidebar for Entering Customer and Vendor Information - April 2022
  • Chapter 6:    Correcting Sales Tax Issues
  • Chapter 6:    Changing the Tax Status of a Service Item 
  • Chapter 7:    Common Errors with New Product Setup
  • Chapter 8:    Editing Inventory Quantity Adjustments
  • Chapter 10:  New Time-Tracking feature (Feb 2022)
  • Chapter 10:  Independent Contractor Workaround
  • Chapter 10:  Revised timesheets (November 2021) 
  • Chapter 11:  New Process for Creating Custom Fields
  • Chapter 12:  Activating a Free 30-day trial of QBO (Revised Feb 2022)
  • Chapter 12:  Changes to Payroll (Revised May 2022)
  • Accessing Invoices 
  • Tips for connecting credit memos to invoices 
  • New Link in the Navigation bar - New March 2022
Math Revealed!
Last Updated: Apr 11 2022

Import files for Math Revealed! and Ch 13 Detailed Instructions

Here are the files you will use to get started with your homework company (Ch2), files you will use to upload banking transactions (Ch8) and receipts (Ch11; revised 11/18/21), the data files for Chapters 13 (revised 10/22/21) and 14 assignments, and the detailed instructions for Ch. 13 is also located in this.

Salish Software Solutions
Last Updated: Apr 11 2022

IImport files for Salish Software Solutions and Ch 13 Detailed Instructions

Here are the files you will use to get started with your homework company (Ch2), files you will use to upload banking transactions (Ch8) and receipts (Ch11; revised 11/18/21), the data files for Chapters 13 (revised 10/22/21) and 14 assignments, and the detailed instructions for Ch. 13 is also located in this.  

Last Updated: Sep 22 2021


  • Certification Handout
  • Mapping of the objectives of the QuickBooks Online Certified User exam, administered by Certiport, to the coverage (page number) in the textbook.
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