Computerized Accounting with QuickBooks Online, 6e

by Williams, Johnson

ISBN: 978-1-61853-507-8 | Copyright 2023

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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

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 accounting  and have a firm understanding of the basic principles of accounting.

Access to Quickbooks Online Plus

Intuit, the  developer  of QuickBooks  Online  Plus,  provides  students  with a free one- year software subscription.  Students  should refer to the insert at the front  of the book, which contains instructions on obtaining their software license 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, Safari, Opera,  or Samsung. (A high-speed  Internet connection is recommended, such as DSL  or cable modem.  For  more  information go to

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 covers the process of creating company files in QBO. Students create their homework company file in the chapter assignment.
  • 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 approach  and shows the student how the software is used in a business environment. In addition to the standard  financial 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 acccounting course. To help put some of their focus back on accounting, students are periodically asked a question related to materiacoverein 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  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 related to chapter content
  • Essay questions focused on 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 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 Centers.  The  certification  program validates QuickBookaccounting  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.

New to This Edition

  • In Chapter 1, sub-sections on forms and transactions types have been moved to the Transactions in QBO section. A new section (Managing the Chart  of Accounts) has been created.
  • Chapter 2 has been revised and reorganized.  The Customizing QBO section has been expanded to include coverage of sales settings, terms, payment methods, and categories, previously covered in Chapter 3. Step-by-step instructions  for setting up the student homework company are included in the end-of-chapter assignments.
  • In Chapter 3, coverage of the underlying  entries created by list imports has been moved into a new Appendix.
  • Homework assignments for Chapters 13 and 14 have been reorganized  to provide more clarity.
  • Math Revealed! and Salish Software Solutions homework companies have both been updated with new transaction  dates. Salish Software Solutions has also been updated with new transaction  amounts.
  • The book has been updated for changes to QBO software.

Technology That Improves Learning and Complements Faculty Instruction

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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

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    • 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.

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Expand/Collapse All
About the Authors (pg. iii)
Preface (pg. iv)
Brief Table of Contents (pg. xiii)
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)
Moving Around in QuickBooks Online (pg. 1-9)
Accessing Tools (pg. 1-9)
Multiple Open Screens (pg. 1-13)
The Importance of “Lists” (pg. 1-14)
Chart of Accounts List (pg. 1-14)
Practice Exercise 1.1 (pg. 1-15)
Products and Services List (pg. 1-15)
Practice Exercise 1.2 (pg. 1-16)
Other Lists in QBO (pg. 1-16)
Managing the Chart of Accounts (pg. 1-16)
Adding an Account (pg. 1-18)
Editing an Account (pg. 1-20)
Inactivating an Account (pg. 1-20)
Practice Exercise 1.3 (pg. 1-20)
Transactions in QuickBooks Online (pg. 1-21)
Forms (pg. 1-22)
Transaction Types (pg. 1-24)
Finding Transactions (pg. 1-25)
Practice Exercise 1.4 (pg. 1-28)
Reporting (pg. 1-28)
Customizing Reports (pg. 1-29)
Practice Exercise 1.5 (pg. 1-36)
Chapter Shortcuts (pg. 1-38)
Chapter Review (pg. 1-38)
Beyond the Clicks-Thinking Like a Manager (pg. 1-39)
Assignment 1 (pg. 1-39)
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. 1-41)
Useful Shortcuts in Date Fields (pg. 1-41)
Chapter 2: Setting Up Company Files (pg. 2-1)
Introduction (pg. 2-2)
Setting Up Company Files in QBO (pg. 2-2)
Setting Up Brand New Companies in QBO (pg. 2-2)
Converting Existing Companies to QBO (pg. 2-4)
Fixing Errors in Company File Setups (pg. 2-8)
Customizing QuickBooks Online (pg. 2-8)
Customizing Settings In a Company File (pg. 2-8)
Practice Exercise 2.1 (pg. 2-12)
Setting Up Credit Terms (pg. 2-12)
Practice Exercise 2.2 (pg. 2-14)
Organizing the Products and Services List (pg. 2-16)
Practice Exercise 2.3 (pg. 2-18)
Chapter Shortcuts (pg. 2-18)
Chapter Review (pg. 2-19)
Beyond the Clicks-Thinking Like a Manager (pg. 2-20)
Assignment 2A (pg. 2-20)
Assignment 2B (pg. 2-40)
Appendix 2A Which Accounts Get Debited and Credited When Lists Are Imported Into QBO? (pg. 2-60)
Appendix 2B Setting Up Your Google Gmail Account (pg. 2-61)
If This Is Your First Gmail Account (pg. 2-61)
If You Already Have a Gmail Account (pg. 2-62)
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)
Modifying Standard Sales Settings (pg. 3-6)
Practice Exercise 3.1 (pg. 3-7)
Managing Customers (pg. 3-7)
Customer Center Display (pg. 3-8)
Adding a Customer (pg. 3-9)
Viewing Customer Information (pg. 3-11)
Editing Customer Information (pg. 3-13)
Inactivating a Customer (pg. 3-13)
Practice Exercise 3.2 (pg. 3-15)
Managing Service Items (pg. 3-15)
Adding a Service Item (pg. 3-16)
Practice Exercise 3.3 (pg. 3-19)
Recording Sales Revenue (pg. 3-20)
Recording Sales on Account (pg. 3-21)
Recording Cash Sales (pg. 3-24)
Practice Exercise 3.4 (pg. 3-25)
Recording Payments from Customers (pg. 3-27)
Payments on Account (pg. 3-27)
Practice Exercise 3.5 (pg. 3-29)
Making Deposits (pg. 3-29)
Practice Exercise 3.6 (pg. 3-31)
Recording Customer Credits and Refunds (pg. 3-32)
Creating Credit Memos with Automatic Application Set as the Preference (pg. 3-33)
Creating Credit Memos with Manual Application (Automatic Application Preference Turned Off) (pg. 3-35)
Issuing Refunds to Customers (pg. 3-39)
Practice Exercise 3.7 (pg. 3-41)
Sales and Customer Reports (pg. 3-42)
Practice Exercise 3.8 (pg. 3-45)
Sales Cycle Summary (pg. 3-46)
Chapter Shortcuts (pg. 3-47)
Chapter Review (pg. 3-47)
Beyond the Clicks-Thinking Like a Manager (pg. 3-48)
Assignment 3A (pg. 3-49)
Assignment 3B (pg. 3-53)
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. 4-7)
Practice Exercise 4.1 (pg. 4-8)
Recording Purchases (pg. 4-9)
Purchasing on Account (pg. 4-10)
Practice Exercise 4.2 (pg. 4-12)
Purchasing with Cash or Check (pg. 4-14)
Practice Exercise 4.3 (pg. 4-15)
Voiding Checks (pg. 4-15)
Practice Exercise 4.4 (pg. 4-17)
Purchasing with a Credit Card (pg. 4-17)
Practice Exercise 4.5 (pg. 4-20)
Paying Vendor Balances (pg. 4-21)
Paying Multiple Vendor Bills (pg. 4-21)
Paying One or More Bills from a Single Vendor (pg. 4-23)
Practice Exercise 4.6 (pg. 4-25)
Vendor Reports (pg. 4-25)
Practice Exercise 4.7 (pg. 4-26)
Purchases Cycle Summary (pg. 4-26)
Chapter Shortcuts (pg. 4-27)
Chapter Review (pg. 4-28)
Beyond the Clicks-Thinking Like a Manager (pg. 4-29)
Assignment 4A (pg. 4-29)
Assignment 4B (pg. 4-32)
Appendix 4A Reporting 1099 Vendor Activity (pg. 4-35)
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)
Reviewing the Reconciliation Status of Transactions in the Register (pg. 5-7)
Fixing Bank Reconciliation Errors (pg. 5-8)
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)
Beyond the Clicks-Thinking Like a Manager (pg. 5-23)
Assignment 5A (pg. 5-24)
Assignment 5B (pg. 5-26)
Appendix 5A Getting It Right (pg. 5-28)
Appendix 5B Understanding the Reconciliation Report (pg. 5-30)
Appendix 5C Fixing Reconciliation Errors (pg. 5-33)
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. 6-8)
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)
Editing Sales Taxes on Sales Transactions (pg. 6-21)
Managing Items (Merchandising Company) (pg. 6-25)
Setting Up Inventory Items (pg. 6-26)
Practice Exercise 6.3 (pg. 6-31)
Recording Sales Revenue (pg. 6-32)
Customer Discounts (pg. 6-32)
Practice Exercise 6.4 (pg. 6-34)
Delayed Charges and Delayed Credits (pg. 6-35)
Practice Exercise 6.5 (pg. 6-39)
Recording Uncollectible Accounts (pg. 6-40)
Recording Payments From Customers (pg. 6-44)
Customer Payments by Credit Card (pg. 6-44)
Practice Exercise 6.7 (pg. 6-45)
Depositing Credit Card Receipts (pg. 6-45)
Practice Exercise 6.8 (pg. 6-47)
Early Payment Discounts (pg. 6-47)
Practice Exercise 6.9 (pg. 6-49)
Customer Checks Returned by Bank Due to Insufficient Funds (NSF Checks) (pg. 6-50)
Practice Exercise 6.10 (pg. 6-52)
Customer Reports (pg. 6-53)
Practice Exercise 6.11 (pg. 6-54)
Customer Statements (pg. 6-55)
Practice Exercise 6.12 (pg. 6-56)
Chapter Shortcuts (pg. 6-57)
Chapter Review (pg. 6-57)
Beyond the Clicks-Thinking Like a Manager (pg. 6-58)
Assignment 6A (pg. 6-58)
Assignment 6B (pg. 6-63)
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. 7-14)
Managing Purchase Orders (pg. 7-16)
Practice Exercise 7.6 (pg. 7-17)
Ordering Inventory Without Using the Purchase Order System (pg. 7-17)
Vendor Credits (pg. 7-17)
Entering Credits from Vendors (pg. 7-18)
Applying Credits from Vendors (pg. 7-18)
Practice Exercise 7.7 (pg. 7-20)
Special Considerations for Returns of Inventory (pg. 7-21)
Practice Exercise 7.8 (pg. 7-22)
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)
Beyond the Clicks-Thinking Like a Manager (pg. 7-29)
Assignment 7A (pg. 7-29)
Assignment 7B (pg. 7-33)
Appendix 7A FIFO Layers in QBO (pg. 7-36)
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. 8-14)
Entering Cash Receipts from Non-Customers (pg. 8-15)
Recording Bank Transfers (pg. 8-17)
Uploading Credit Card Transactions Into QBO (pg. 8-18)
Inactivating and Merging General Ledger Accounts (pg. 8-25)
Inactivating an Account (pg. 8-25)
Merging Accounts (pg. 8-27)
Adding Notes to Reports (pg. 8-28)
Chapter Shortcuts (pg. 8-32)
Chapter Review (pg. 8-33)
Matching (pg. 8-33)
Multiple Choice (pg. 8-33)
Beyond the Clicks-Thinking Like a Manager (pg. 8-34)
Assignment 8A (pg. 8-34)
Assignment 8B (pg. 8-38)
Appendix 8A Direct Downloading of Bank Transactions Into QBO and Setting Bank Rules (pg. 8-42)
Setting Banking Rules (pg. 8-45)
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. 9-8)
Setting Up Classes and Locations (pg. 9-9)
Practice Exercise 9.2 (pg. 9-12)
Adding Class to Item Records (pg. 9-12)
Practice Exercise 9.3 (pg. 9-13)
Adding Class and Location to Transactions (pg. 9-14)
Practice Exercise 9.4 (pg. 9-15)
Reporting by Class or Location (pg. 9-16)
Creating and Using Budgets (pg. 9-17)
Creating Budgets (pg. 9-18)
Practice Exercise 9.5 (pg. 9-20)
Creating Budget Reports (pg. 9-21)
Practice Exercise 9.6 (pg. 9-22)
Reversing Entries (pg. 9-22)
Practice Exercise 9.7 (pg. 9-25)
Recurring Transactions (pg. 9-25)
Practice Exercise 9.8 (pg. 9-29)
Chapter Shortcuts (pg. 9-30)
Chapter Review (pg. 9-30)
Beyond the Clicks-Thinking Like a Manager (pg. 9-32)
Assignment 9A (pg. 9-32)
Assignment 9B (pg. 9-38)
Appendix 9A Creating and Managing Tags (pg. 9-45)
Creating Tag Groups (pg. 9-45)
Creating Tags (pg. 9-47)
Adding Tags to Transactions (pg. 9-48)
Reporting on Tagged Transactions (pg. 9-49)
How Do Tags Differ from Classes and Locations? (pg. 9-49)
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)
Managing Projects (pg. 10-5)
Setting Up Independent Contractors (pg. 10-7)
Using Timesheets To Track Hours (pg. 10-11)
Setting Up Time Tracking (pg. 10-11)
Entering Timesheet Data (pg. 10-12)
Editing Timesheets (pg. 10-16)
Tracking Costs Other Than Labor By Project (pg. 10-18)
Turning on Features for Tracking and Billing Direct Expenses (pg. 10-18)
Accounting for Direct Costs Billed to Customers (pg. 10-19)
Practice Exercise 10.3 (pg. 10-22)
Identifying Costs as Billable (pg. 10-23)
Billing for Time and Costs (pg. 10-25)
Practice Exercise 10.5 (pg. 10-24)
Preparing Project Reports (pg. 10-29)
Chapter Shortcuts (pg. 10-30)
Chapter Review (pg. 10-30)
Matching (pg. 10-30)
Multiple Choice (pg. 10-31)
Beyond the Clicks-Thinking Like a Manager (pg. 10-32)
Assignment 10A (pg. 10-32)
Assignment 10B (pg. 10-38)
Appendix 10A Working with Estimates (pg. 10-44)
Activating Progress Invoicing (pg. 10-44)
Creating Estimates (pg. 10-45)
Creating Invoices from Estimates (pg. 10-46)
Creating Change Orders (pg. 10-49)
Creating Purchase Orders from Estimates (pg. 10-50)
Chapter 11: Additional Tools (pg. 11-1)
Saving Customized Reports (pg. 11-2)
Practice Exercise 11.1 (pg. 11-4)
Creating Management Reports (pg. 11-5)
Practice Exercise 11.2 (pg. 11-10)
Creating Custom Fields (pg. 11-11)
Practice Exercise 11.3 (pg. 11-13)
Customizing Forms (pg. 11-13)
Using Customized Forms (pg. 11-17)
Exporting Reports to Excel (pg. 11-18)
Uploading and Managing Attachments (pg. 11-20)
Adding Attachments to Customer or Vendor Records (pg. 11-20)
Adding Attachments to Transactions (pg. 11-21)
Adding Attachments Directly to the Attachment Lists (pg. 11-22)
Uploading Receipts (pg. 11-23)
Chapter Shortcuts (pg. 11-26)
Chapter Review (pg. 11-27)
Beyond the Clicks-Thinking Like a Manager (pg. 11-28)
Assignment 11A (pg. 11-28)
Assignment 11B (pg. 11-30)
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)
Chapter 12 Structure (pg. 12-5)
Payroll Primer (pg. 12-5)
Becoming an Employer (pg. 12-5)
Hiring Employees (pg. 12-6)
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. 12-14)
Step 3-Add Employees (pg. 12-17)
Step 4-Finish the Payroll Setup (pg. 12-25)
Step 5-Process Payroll (pg. 12-32)
Step 6-Remit Payroll Taxes (pg. 12-35)
Step 7-Access Payroll Reports (pg. 12-37)
Step 8-Edit Employees When Necessary (pg. 12-38)
Chapter Shortcuts (pg. 12-40)
Chapter Review (pg. 12-40)
Beyond the Clicks-Thinking Like a Manager (pg. 12-41)
Assignment 12 (pg. 12-41)
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. 13-5)
Processing Data (Extracting, Transforming, and Loading) (pg. 13-6)
What is Artificial Intelligence and How is It Used? (pg. 13-7)
Artificial Intelligence in QBO (pg. 13-8)
Privacy and Ethical Issues with Big Data (pg. 13-9)
Chapter Review (pg. 13-10)
Beyond the Clicks-Thinking Like a Manager (pg. 13-11)
Assignment 13A (pg. 13-11)
Assignment 13B (pg. 13-12)
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. 14-14)
Best Practices in Data Visualization (pg. 14-16)
Select an Appropriate Chart Type (pg. 14-16)
Use Color to Highlight the Data (pg. 14-17)
Add Text to Explain and Add Context (pg. 14-17)
Remove Unnecessary Elements (pg. 14-18)
Make Sure the Visualizations are Objective and Balanced (pg. 14-18)
Beyond The Numbers and Into The Future (pg. 14-19)
Chapter Review (pg. 14-19)
Beyond the Clicks-Thinking Like a Manager (pg. 14-20)
Assignment 14 (pg. 14-20)
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: Jan 18 2023

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

Getting Started
Last Updated: Mar 20 2023

What you will need to get started in the course.

Math Revealed! Import, Upload, and Dataset Files
Last Updated: Mar 20 2023

Import and Upload files for Math Revealed! 

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), and the data files for Chapters 13 and 14 assignments.

  • Chapter 13 Sales Data file REVISED 120622
Salish Software Solutions mport, Upload, and Dataset Files
Last Updated: Mar 20 2023

Import and Upload files for Salish Software Solutions.

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), and the data files for Chapters 13 and 14 assignments.

Tips and Updates
Last Updated: Mar 20 2023

Tips for common issues AND Updates for QBO.  Includes:

  • Help! The test drive company isn't working
  • How to use MBC to make your life a whole lot easier
  • Ch01:  Changes to Advanced Search Tool 
  • Ch01:  Comparison of Old and New Account Setup Screens
  • Ch01:  Creating New Accounts (New Process) 
  • Ch01:  PE 1.3 Revised for Changes in QBO
  • Ch01:  PE 1.4 Revised for New Advanced Search Tool 
  • Ch01:  Changes to the navigation bar (and teh disappearance of tabs!) 
  • Ch01:  Changes to Customization of Certain Reports - NEW
  • Ch02:  Correctected Opening Entry for Salish Software Solutions (Step 14)
  • Ch02:  New Condensed Versions of New File Setup Questions 
  • Ch02:  Shortcut to adding categories to imported products and services 
  • Ch03:  Accessing and Editing Invoices
  • Ch03:  Correcting Errors in Sales Transactions
  • Ch03:  New screen when recording the first invoice 
  • Ch03:  New Invoice Form 
  • Ch05:  Undoing bank reconciliations - Student
  • Ch06:  Correcting Sales Tax Issues
  • Ch07:  Common Errors in New Product Setup
  • Ch07:  Reading the Inventory Valuation Detail Report
  • Ch07:  Help! My Inventory is Off $2 (Math Revealed! ONLY) 
  • Ch08:  Editing Inventory Quantity Adjustments
  • Ch08:  Remitting Sales Tax Liabilities screen changes
  • Ch08:  Unmatched Credit Card Uploads 
  • Ch10:  Changes to Time Tracking in QBO 
  • Ch10:  Help! I can't add a time entry! 
  • Ch11:  Management Report Changes 
  • Ch12:  New Process for Adding Employees REVISED 
  • Ch12:  Changes to Payroll Setup and Payroll Tax Remittance 
Last Updated: Mar 20 2023


  • 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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