Intuit | QuickBooks | Chapter 2 Of 200
📚🔍 The Ultimate Guide to Opening QuickBooks Pro 2021 for the First Time: Your Path to Effortless Financial Management! 💼💰
Create a New Company #QuickBooks2021 #AccountingSoftware #SmallBusinessFinance
I. Introduction
A. Overview of QuickBooks 2021
Intuit is the creator of the well-known accounting programme QuickBooks. It is designed to help small and medium-sized businesses manage their financial operations effectively.
B. Importance of setting up QuickBooks properly
It establishes a solid framework for accurate record-keeping, efficient bookkeeping, reliable reporting, simplified tax preparation, seamless integration, scalability, and access to support resources. By investing time in the initial setup, you pave the way for effective financial management, enabling your business to thrive and grow.
II. The First-Time Open Screen in QuickBooks 2021
When you open QuickBooks 2021 for the first time, you will be greeted with the startup screen, which is designed to help you set up your company file and get started with the software. Here’s an overview of what you can expect to see:
A. Welcome Screen
1. Options to create a new company, open an existing file, or restore a backup
Welcome Screen
The welcome screen is the first thing you’ll encounter when you open QuickBooks 2021. It provides you with options to create a new company file, open an existing file, or restore a backup file.
Create a New Company
If you’re starting fresh with QuickBooks and don’t have an existing company file, you can choose to create a new company. The software will guide you through a setup process where you enter information about your company, such as its name, industry, and address.
or Open an Existing Company
Suppose you already have a company file from a previous version of QuickBooks. In that case, you can select the “Open an Existing Company” option and navigate to the file location on your computer.
B. Creating a New Company
1. Step-by-step setup process
Advanced Setup
It will allow us to go through all possible steps while creating a company.
3. Entering company information (name, industry, address)
Here only one field is compulsory, and that is the company name. All the rest can be filled later.
4. Selecting industry type
Quickbooks offers many types of industries for all types of businesses. carefully select relevant industries according to your needs because, upon selection, Quickbooks generates a chart of accounts.
5. Selecting How is your company organised?
QuickBooks will create accounts according to your business entity as per your selection. The more accurately you provide your business details, the more helpful QuickBooks will be.
6. Selecting the First month of your fiscal year
Normally, companies use July — June as their fiscal or financial year. in special circumstances, your business can have other months than July — June chosen according to your business.
7. Select Set up your administrator password.
Company data is confidential, so it is a wise decision to set up your administrator password.
8. Now you are allowing QuickBooks to Create your company file on your computer.
9. Select the Path and file name for your new company.
I suggest using the default path and name suggested by QuickBooks.
10. Now wait until QuickBooks creates a new company according to your needs.
After completion, The company has been created, and now we will customise QuickBooks according to your business needs.
11. Customising QuickBooks for your business.
You are inside your newly created company, setting up a working environment.
12. Selecting: What do you sell?
Select both services and products, because I am going to use the same data in all the coming steps.
A business can be a services business or a product business. or both services and products.
13. Select whether you are going to charge sales tax or not.
Here, we are going to select yes because we are going to charge sales tax.
14. Select whether you are going to use and create estimates in QuickBooks or not.
Yes, we are going to use and create estimates in QuickBooks.
15. Select whether you are going to use statements in QuickBooks Desktop or not.
Yes, we are going to use statements in QuickBooks Desktop
Using statements in QuickBooks Desktop 2021 is crucial for effective accounts receivable management, maintaining customer relations, and obtaining a clear overview of financial transactions. It helps businesses streamline their billing process, enhance cash flow, and maintain accurate financial records for improved financial management.
16. Select whether you are going to use progress invoices in QuickBooks Desktop or not.
Progress invoicing in Quickbooks: select yes as per your needs. otherwise, select no.
17. Select whether you are going to use Managing Bills You Owe in QuickBooks Desktop or not.
yes, we will be Managing the bills you owe in QuickBooks Desktop
18. Select whether you are going to use Tracking inventory in QuickBooks Desktop or not.
Yes, we will be Tracking inventory in QuickBooks Desktop
19. Select whether you are going to use Tracking time in QuickBooks Desktop or not.
Yes, we will be Tracking time in QuickBooks Desktop
20. Select whether you have employees and Contractors in QuickBooks Desktop or not.
Yes, we have employees AND Contractors in QuickBooks Desktop
21. Select Next, using accounts in QuickBooks Desktop
It will create a chart of accounts. in QuickBooks Desktop
22. Select a date to start tracking your finances
The start date can be the beginning of the fiscal year, July 1, 2023, or
Use the current date as per your business needs.
23. Review income and expenses accounts
Review carefully; there are recommended accounts, and some are unchecked, like rental income. You can check and uncheck according to your needs.
24. Review income and expenses accounts — Check All
I am going to select all because I want a comprehensive chart of accounts.
25. Congratulations! Your New Company has been set up, Select Go to Setup.
26. Selecting industry type
Go to Setup, which will bring you to this screen with all the functionalities. From the top, you can see the company name, “QuickBooks_Construction and Building Material” and the Software version “QuickBooks Desktop Pro 2021”. All function buttons are on the Left panel.
27. Get all the details into QuickBooks Desktop.
- Do You want to add all your customers?
- Do You want to add all your products?
- Do you want to add all your vendors?
Yes, but You can add later, But to focus on the new company created here, I am going to opt to start working.
28. On the home page, you can see all your accounts and actions you are able to take according to the selection you made while creating your company file.
The Home Screen
Key features and tools accessible from the home screen
1. Creating invoices
2. Recording expenses
3. Running reports
4. Monitoring cash flow
5. Managing payroll
III. Benefits of Setting Up QuickBooks Properly
A. Customization for specific business needs
B. Enhanced accuracy and efficiency in financial management
C. Seamless integration with other business processes
D. Simplified reporting and tax preparation
IV. Conclusion
A. Recap of the first-time open screen in QuickBooks 2021
Here I focused on the Creation of a New company, which is a construction company, that also sells construction-related materials, both goods and services.
In later chapters, I am going to use this company to demonstrate all the tools that QuickBooks Pro 2021 offers.
B. Importance of properly setting up QuickBooks for effective financial management
It will allow you to go through all the tools that QuickBooks Pro 2021 offers. but yes, you can modify it later as per your requirements.
🔑 Unlocking Success: The Importance of Properly Setting Up QuickBooks 2021 for Your Business Finances! 💼💪 #QuickBooks2021 #ProperSetup #FinancialSuccess #EfficientBookkeeping #BusinessManagement #SmallBusinessTips #MaximizeProductivity #AccurateReporting
