Computerized Accounting with QuickBooks Online, 7e

2023 Update

by Williams, Johnson

ISBN: 978-1-61853-574-0 | Copyright 2024

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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 accountingnot theidata-entrskills, that  will contribute the most to their success 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  developeof QuickBooks Online Plusprovidestudentwith a free one- year software subscription. Studentshould refer to the insert at the fronof the book, which contains instructions on obtaining their software license and accessing the complimentarcloud-basesoftware. WitQuickBookOnlinestudentuse 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—Artificial 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 mannergoing 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

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 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 Craigs 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.

In many Practice Exercises, students are asked to make a note of certain information visible on the screen. A related test bank is available if instructors want to check that students have completed the exercises.

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. 

Certiport Mapped

The book has been mapped to the five domains that comprise the exam objectives for the Intuit QuickBooks Online 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 validated QuickBooks Online 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 Online.

New to This Edition

  • Road Maps (reference tables identifying page numbers, practice exercises, and videos associated with each learning objective) have been added to the first page of each chapter.
  • The test bank of questions related to the Accounting Refresher module has been expanded.
  • PowerPoint presentations have been revised to work with the Chapter Outlines available to instructors.
  • Coverage of artificial intelligence has been expanded in Chapter 13.
  • Math Revealed! and Salish Salish Software Solutions homework companies have both been updated with new transaction dates. Math Revealed! has also been updated with new transaction amounts.
  • The book has been updated for changes in QBO software.
  • A second set of midterm and final exams have been added.

Technology That Improves Learning and Complements Faculty Instruction

myBusinessCourse 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.
  • Test Bank questions can be incorporated into your assignments for additional quizzing and tests.
  • Instructor gradebook with immediate grade results.
  • eLecture videos created and narrated by the author provide extra coverage of essential topics and procedures. eLecture videos available in MBC are denoted by the .

Make Instruction Needs-Based

  • Identify where your students are struggling and customize your instruction to address their needs.
  • Gauge 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 thelogo 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.

Request a One-on-One Demo

eLecture Videos

eLecture Videos

  • Created by the authors of the textbook
  • Consistent with the textbook's explanations and approach
  • 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

  • Provides immediate feedback
  • Create assignments using problems from the textbook
  • Additional randomized versions of assignments provide extra practice
  • Ideal for remediation
  • Include select questions from test banks

Respondus LockDown Browser

Respondus LockDown Browser®

  • Assessments are displayed full-screen and cannot be minimized
  • Browser menu and toolbar options are removed, except for Back, Forward, Refresh and Stop
  • Prevents access to other applications including messaging, screen-sharing, virtual machines, and remote desktops
  • Printing and screen capture functions are disabled
  • Copying and pasting anything to or from an assessment are prevented
  • Right-click menu options, function keys, keyboard shortcuts and task switching are disabled
  • 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

  • Quickly review the performance of individual students
  • Quickly review the performance of entire class
  • Use reports on student performance to customize your lectures to fit student needs

Enhanced eBook

  • Save money
  • Includes myBusinessCourse
  • Integrates eLecture and demonstration videos
  • Bookmarking
  • Note taking
  • Highlighting

Third Party Integrations

Third Party Integrations

  • Single sign-on
  • Link to assignments in myBusinessCourse from your third party course
  • Automatically sync gradebooks each night


  • Study, learn and master key terms.
  • With linear-mode, get full control over the deck. Go back and forth between cards, shuffle and auto-play the deck.
  • With certainty-mode, test how well you know each term. If you are not certain you have learned the term, it will display again later in the deck.

Support and Training

Support and Training

  • Technical support for students and faculty available daily
  • Faculty training conducted daily
Expand/Collapse All
About the Authors (pg. iii)
Preface (pg. iv)
Brief Table of Contents (pg. xiv)
About the Authors (pg. iii)
Preface (pg. iv)
Brief Table of 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. 1-5)
Where To Go For Help (pg. 1-6)
Throughout this textbook, you will practice the steps necessary to record transactions and use the v (pg. 1-7)
Accessing the Test Drive Company (pg. 1-7)
Moving Around in QuickBooks Online (pg. 1-8)
Icon Bar (pg. 1-8)
Navigation Bar (pg. 1-9)
Multiple Open Screens (pg. 1-16)
The Importance of “Lists” (pg. 1-17)
Chart of Accounts List (pg. 1-17)
Practice Exercise 1.1 (pg. 1-18)
Products and Services List (pg. 1-18)
Practice Exercise 1.2 (pg. 1-19)
Other Lists in QBO (pg. 1-19)
Managing the Chart of Accounts (pg. 1-19)
Adding an Account (pg. 1-21)
Editing an Account (pg. 1-23)
Inactivating an Account (pg. 1-24)
Practice Exercise 1.3 (pg. 1-24)
Transactions in QuickBooks Online (pg. 1-25)
Forms (pg. 1-26)
Transaction Types (pg. 1-27)
Finding Transactions (pg. 1-28)
Practice Exercise 1.4 (pg. 1-30)
Reporting (pg. 1-30)
Customizing Reports (pg. 1-32)
Printing Reports (pg. 1-39)
Practice Exercise 1.5 (pg. 1-39)
Chapter Shortcuts (pg. 1-41)
Chapter Review (pg. 1-41)
Beyond the Clicks-Thinking Like a Manager (pg. 1-42)
Assignment (pg. 1-42)
Appendix 1A Customization of Certain Reports (pg. 1-44)
Grouping (pg. 1-45)
Filtering (pg. 1-46)
Customizing (pg. 1-47)
Saving and Exporting Customized Reports (pg. 1-47)
Future of Report Customization in QBO (pg. 1-48)
Appendix 1B Comparison Of Old and New Account Setup Screens (pg. 1-48)
Appendix 1C Keyboard Shortcuts In QBO (pg. 1-49)
QBO Keyboard Shortcuts Available on the Dashboard or in Navigation Tab Windows (pg. 1-49)
QBO Keyboard Shortcuts Available in Forms (pg. 1-49)
Useful Shortcuts in Date Fields (pg. 1-49)
Chapter 2: Setting Up Company Files (pg. 2-1)
Introduction (pg. 2-2)
Setting Up a Brand New Company in QBO (pg. 2-2)
Converting an Existing Company to QBO (pg. 2-4)
Purging a Company File (pg. 2-4)
Importing Lists (pg. 2-5)
Importing Account Balances (pg. 2-7)
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)
Setting Up Payment Methods (pg. 2-15)
Organizing the Products and Services List (pg. 2-17)
Practice Exercise 2.3 (pg. 2-19)
Chapter Shortcuts (pg. 2-20)
Chapter Review (pg. 2-20)
Beyond the Clicks-Thinking Like a Manager (pg. 2-21)
Assignments (pg. 2-21)
Appendix 2A Which Accounts Get Debited and Credited When Lists Are Imported Into QBO? (pg. 2-65)
Appendix 2B Setting Up Your Google Gmail Account (pg. 2-66)
If This Is Your First Gmail Account (pg. 2-66)
If You Already Have a Gmail Account (pg. 2-67)
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)
Editing Customer Information (pg. 3-14)
Inactivating or Merging Customers (pg. 3-14)
Practice Exercise 3.2 (pg. 3-17)
Managing Service Items (pg. 3-17)
Adding a Service Item (pg. 3-18)
Editing, Duplicating, and Inactivating Services (pg. 3-20)
Practice Exercise 3.3 (pg. 3-22)
Recording Sales Revenue (pg. 3-23)
Recording Sales on Account (pg. 3-24)
Recording Cash Sales (pg. 3-29)
Practice Exercise 3.4 (pg. 3-31)
Recording Payments from Customers (pg. 3-33)
Payments on Account (pg. 3-33)
Practice Exercise 3.5 (pg. 3-35)
Making Deposits (pg. 3-36)
Practice Exercise 3.6 (pg. 3-38)
Recording Customer Credits and Refunds (pg. 3-38)
Creating Credit Memos (pg. 3-39)
Applying Credit Memos (pg. 3-41)
Issuing Refunds to Customers (pg. 3-46)
Practice Exercise 3.7 (pg. 3-48)
Preparing Sales and Customer Reports (pg. 3-50)
Practice Exercise 3.8 (pg. 3-52)
Sales Cycle Summary (pg. 3-53)
Chapter Shortcuts (pg. 3-54)
Chapter Review (pg. 3-54)
Beyond the Clicks-Thinking Like a Manager (pg. 3-55)
Assignments (pg. 3-56)
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)
Purchasing on Account (pg. 4-11)
Practice Exercise 4.2 (pg. 4-13)
Purchasing with Cash or Check (pg. 4-15)
Practice Exercise 4.3 (pg. 4-16)
Voiding Checks (pg. 4-17)
Practice Exercise 4.4 (pg. 4-19)
Purchasing with a Credit Card (pg. 4-19)
Practice Exercise 4.5 (pg. 4-22)
Paying Vendor Balances (pg. 4-23)
Paying Multiple Vendor Bills (pg. 4-24)
Paying One or More Bills from a Single Vendor (pg. 4-26)
Practice Exercise 4.6 (pg. 4-27)
Vendor Reports (pg. 4-27)
Practice Exercise 4.7 (pg. 4-28)
Purchases Cycle Summary (pg. 4-29)
Chapter Shortcuts (pg. 4-30)
Chapter Review (pg. 4-30)
Beyond the Clicks-Thinking Like a Manager (pg. 4-31)
Assignment 4A (pg. 4-31)
Assignment 4B (pg. 4-35)
Appendix 4A Reporting 1099 Vendor Activity (pg. 4-38)
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. 5-19)
Closing The Books (pg. 5-19)
Closing an Accounting Period (pg. 5-20)
Practice Exercise 5.5 (pg. 5-21)
Year-end Closing (pg. 5-21)
Chapter Shortcuts (pg. 5-22)
Chapter Review (pg. 5-22)
Beyond the Clicks-Thinking Like a Manager (pg. 5-24)
Assignments (pg. 5-24)
Appendix 5A Getting It Right (pg. 5-29)
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)
Managing Multiple Shipping Addresses (pg. 6-13)
Practice Exercise 6.2 (pg. 6-14)
Managing Sales Taxes (pg. 6-15)
Setting Up Sales Taxes (pg. 6-15)
Managing the Tax Status of Customers (pg. 6-21)
Editing Sales Taxes on Sales Transactions (pg. 6-22)
Managing Products (Merchandising Company) (pg. 6-27)
Adding a Product (pg. 6-27)
Editing, Duplicating, and Inactivating Products (pg. 6-33)
Practice Exercise 6.3 (pg. 6-33)
Recording Sales Revenue (pg. 6-34)
Recording Customer Discounts (pg. 6-34)
Practice Exercise 6.4 (pg. 6-37)
Recording Delayed Charges and Delayed Credits (pg. 6-38)
Practice Exercise 6.5 (pg. 6-42)
Recording Uncollectible Accounts (pg. 6-43)
Practice Exercise 6.6 (pg. 6-46)
Recording Payments From Customers (pg. 6-47)
Recording Customer Payments by Credit Card (pg. 6-47)
Practice Exercise 6.7 (pg. 6-48)
Practice Exercise 6.8 (pg. 6-50)
Recording Early Payment Discounts Taken by Customers (pg. 6-50)
Practice Exercise 6.9 (pg. 6-52)
Recording Customer Checks Returned by Bank Due to Insufficient Funds (NSF Checks) (pg. 6-53)
Preparing Sales and Collection Reports (pg. 6-56)
Practice Exercise 6.11 (pg. 6-58)
Preparing Customer Statements (pg. 6-58)
Practice Exercise 6.12 (pg. 6-60)
Chapter Shortcuts (pg. 6-60)
Chapter Review (pg. 6-60)
Assignments (pg. 6-62)
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. 7-10)
Receiving Ordered Inventory (pg. 7-13)
Practice Exercise 7.5 (pg. 7-16)
Managing Purchase Orders (pg. 7-18)
Practice Exercise 7.6 (pg. 7-19)
Ordering Inventory Without Using the Purchase Order System (pg. 7-19)
Managing Vendor Credits (pg. 7-19)
Entering Credits from Vendors (pg. 7-20)
Applying Credits from Vendors (pg. 7-20)
Practice Exercise 7.7 (pg. 7-22)
Special Considerations for Returns of Inventory (pg. 7-23)
Practice Exercise 7.8 (pg. 7-24)
Paying Vendor Balances (pg. 7-25)
Taking Early Payment Discounts (pg. 7-25)
Practice Exercise 7.9 (pg. 7-28)
Preparing Vendor Reports (pg. 7-29)
Practice Exercise 7.10 (pg. 7-30)
Chapter Shortcuts (pg. 7-30)
Chapter Review (pg. 7-30)
Beyond the Clicks-Thinking Like a Manager (pg. 7-31)
Assignments (pg. 7-32)
Appendix 7A Identifying FIFO Layers in QBO (pg. 7-39)
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. 8-7)
Remitting Sales Tax (pg. 8-9)
Adjusting Sales Tax Liabilities (pg. 8-13)
Entering Cash Receipts from Non-Customers (pg. 8-17)
Practice Exercise 8.2 (pg. 8-19)
Recording Bank Transfers (pg. 8-19)
Practice Exercise 8.3 (pg. 8-20)
Uploading Credit Card Transactions Into QBO (pg. 8-20)
Inactivating and Merging General Ledger Accounts (pg. 8-27)
Inactivating an Account (pg. 8-27)
Merging Accounts (pg. 8-29)
Practice Exercise 8.4 (pg. 8-30)
Adding Notes to Reports (pg. 8-31)
Practice Exercise 8.5 (pg. 8-34)
Chapter Shortcuts (pg. 8-34)
Chapter Review (pg. 8-35)
Assignments (pg. 8-36)
Appendix 8A Connecting QBO to Bank Accounts (pg. 8-44)
Downloading Transactions from Bank Accounts (pg. 8-44)
Setting Banking Rules (pg. 8-47)
Section Four Beyond the Basics (pg. 9-1)
Chapter 9: Management Tools (pg. 9-3)
Tracking and Reporting By Business Segment (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. 9-17)
Practice Exercise 9.5 (pg. 9-19)
Creating Budget Reports (pg. 9-20)
Practice Exercise 9.6 (pg. 9-21)
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. 9-31)
Assignments (pg. 9-32)
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)
Practice Exercise 10.1 (pg. 10-5)
Managing Projects (pg. 10-5)
Setting Up Independent Contractors (pg. 10-8)
Practice Exercise 10.2 (pg. 10-10)
Using Timesheets To Track Hours (pg. 10-11)
Setting Up Time Tracking (pg. 10-12)
Entering Timesheet Data (pg. 10-13)
Editing Timesheets (pg. 10-16)
Tracking Costs Other Than Labor By Project (pg. 10-17)
Turning on Features for Tracking and Billing Direct Expenses (pg. 10-17)
Accounting for Direct Costs Billed to Customers (pg. 10-18)
Practice Exercise 10.3 (pg. 10-21)
Identifying Costs as Billable (pg. 10-22)
Practice Exercise 10.4 (pg. 10-23)
Billing for Time and Costs (pg. 10-24)
Practice Exercise 10.5 (pg. 10-26)
Preparing Project Reports (pg. 10-28)
Practice Exercise 10.6 (pg. 10-29)
Chapter Shortcuts (pg. 10-29)
Chapter Review (pg. 10-30)
Assignments (pg. 10-31)
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. 10-47)
Creating Purchase Orders from Estimates (pg. 10-48)
Chapter 11: Additional Tools (pg. 11-1)
Saving Customized Reports (pg. 11-2)
Practice Exercise 11.1 (pg. 11-4)
Creating Management Report Packages (pg. 11-5)
Practice Exercise 11.2 (pg. 11-10)
Creating Custom Fields (pg. 11-11)
Practice Exercise 11.3 (pg. 11-13)
Customizing Sales Forms (pg. 11-13)
Using Customized Forms (pg. 11-16)
Exporting Reports to Excel (pg. 11-17)
Uploading and Managing Attachments (pg. 11-19)
Adding Attachments to Customer or Vendor Records (pg. 11-19)
Adding Attachments to Transactions (pg. 11-20)
Adding Attachments Directly to the Attachment Lists (pg. 11-21)
Uploading Receipts (pg. 11-23)
Chapter Shortcuts (pg. 11-26)
Chapter Review (pg. 11-26)
Beyond the Clicks-Thinking Like a Manager (pg. 11-27)
Assignments (pg. 11-28)
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. 12-7)
Payroll System Walkthrough (pg. 12-9)
STEP 1-Set Up a New Company File (pg. 12-9)
STEP 2-Activate Payroll (pg. 12-16)
STEP 3-Add Employees (pg. 12-18)
STEP 4-Finish the Payroll Setup (pg. 12-30)
STEP 5-Process Payroll (pg. 12-38)
STEP 6-Remit Payroll Taxes (pg. 12-41)
STEP 7-Access Payroll Reports (pg. 12-44)
STEP 8-Edit Employees When Necessary (pg. 12-45)
Chapter Shortcuts (pg. 12-46)
Chapter Review (pg. 12-46)
Beyond the Clicks-Thinking Like a Manager (pg. 12-47)
Assignment (pg. 12-47)
Section Six Cognitive Technologies, Data Analysis, and QBO (pg. 13-1)
Chapter 13: Big Data, Artificial Intelligence, and QBO (pg. 13-3)
What Is Big Data? (pg. 13-4)
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 (pg. 13-7)
Types of Artificial Intelligence Systems (pg. 13-8)
Machine Learning Models (pg. 13-9)
Artificial Intelligence in QBO (pg. 13-10)
Privacy and Ethical Issues with Big Data AND ARTIFICIAL INTELLIGENCE (pg. 13-11)
FINAL NOTE (pg. 13-12)
Chapter Review (pg. 13-12)
Assignments (pg. 13-13)
Chapter 14: Data Analytics and Data Visualization (pg. 14-1)
What is Data Analytics? (pg. 14-2)
Descriptive Analytics (pg. 14-2)
Diagnostic Analytics (pg. 14-2)
Predictive Analytics (pg. 14-3)
Prescriptive Analytics (pg. 14-3)
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. 14-15)
Best Practices in Data Visualization (pg. 14-17)
Select an Appropriate Chart Type (pg. 14-18)
Use Color to Highlight the Data (pg. 14-18)
Add Text to Explain and Add Context (pg. 14-19)
Remove Unnecessary Elements (pg. 14-19)
Make Sure the Visualizations Are Objective and Balanced (pg. 14-19)
Beyond The Numbers and Into The Future (pg. 14-20)
Chapter Review (pg. 14-21)
Beyond the Clicks-Thinking Like a Manager (pg. 14-21)
Assignment (pg. 14-22)
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-8)
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)
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.

Students (with active subscriptions only)
Last Updated: Jan 8 2024

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

Getting Started
Last Updated: Jul 25 2023

What you will need to get started in the course.

A basic accounting refresher.

Math Revealed! Import, Upload, and Dataset Files
Last Updated: Jan 17 2024

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.

UPDATED 01.17.24

Salish Software Solutions import, Upload, and Dataset Files
Last Updated: Jan 8 2024

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, Tools and Updates
Last Updated: Mar 19 2024

Tips for common issues AND Updates for QBO. 


  • Help! QBO isn't working! 
  • How to use MBC to make your life a whole lot easier
  • Ch 1:  Changes to the navigation bar - dashboard - gear icon menu
  • Ch 2:  STEP 3 - Updated Math Revealed! Informational Questions
  • Ch 2:  STEP 3 - Updated Salish Software Informational Questions
  • Ch 2:  STEP 7 - New Screens for Importing Products and Services REVISED 01.19.24
  • Ch 3:  Correcting Errors in Sales Transactions
  • Ch 3:  Alternative (Old Layout) Invoice Form
  • Ch 3:  Changes to Modern View Invoice Form - NEW
  • Ch 5: Undoing Bank Reconciliations
  • Ch 6:  Correcting Sales Tax Issues
  • Ch 7:  Common Errors in New Product Setup
  • Ch 8:  Editing Inventory Quantity Adjustments
  • Ch 8:  Unmatched Credit Card Transactions
  • Ch 9:  New Budgeting System
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