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Archive for the category “QBO”

How to change product and service prices in QBO

Question: I recently increased my prices. Right now, I have to remember to change them every time I create an invoice. Is there a way to make the new prices stick?

Answer: There is, and it can be done in three simple steps. Here’s what to do:

1. Click on the gear menu in the upper right hand corner. Then choose Products and Services from the Lists column.How_to_update_prices

2. Click on Edit to the far right of the item you’d like to update.Edit_button

3. Enter your new Sales price/rate. This does not affect any existing transactions, only new ones. Click Save and close.Update_price

Now when you create an invoice or other sales transaction, the new price will show up on your form.

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Vote For the Top 100 ProAdvisors of 2016

Customers, friends, and fellow bookkeepers, it’s that time again! I need your vote to become an Insightful Accountant Top 100 ProAdvisor for 2016. It’s one vote per person, and filling out the entire survey is optional. What’s required is your first name, last name, email, and a check-mark next to my name (alphabetical by last name, look for Marnie Stretch, I’m a ways down).

Voting is only one part of the process, so it’s not strictly a popularity contest (thank goodness!). It’s based on several other criteria including certifications, social media presence, relationships with third-party apps, and more.

I love helping people become knowledgeable in QuickBooks and business finances. And hopefully, I’ve helped you somewhere along the line, so you won’t mind taking a moment to cast a vote in my favor!

Thanks in advance, it would great to have this honor three years in a row.

VOTE HERE

How do I enter the Small Business Job Credit refund into QuickBooks or QBO?

This week, I’ve been noticing that the Job Credits for Small Business have been appearing in many of my customers’ CRA online accounts. I haven’t seen any refund cheques or deposits yet, but those should be starting to roll in soon.

You might remember the Hiring Credit for Small Business (HCSB) that was around for several years and ended in 2013. This is similar. One notable different is that the CRA will be sending out the refunds rather than having small businesses apply the credits to an upcoming payment.

What’s the Small Business Job Credit?

The Small Business Job Credit will effectively lower small businesses’ Employment Insurance (EI) premiums from the current legislated rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016. Any firm that pays employer EI premiums equal to or less than $15,000 in those years will be eligible for the credit. Almost 90% of all EI premium-paying businesses in Canada will receive the credit, reducing their EI payroll taxes by nearly 15%.

Source: http://www.fin.gc.ca/n14/14-120-eng.asp

How will I get the credit?

No action necessary. The Canada Revenue Agency will automatically calculate the credit, meaning no paperwork for you.

The credit will not be carried forward. You will receive a refund by direct deposit (if you’ve signed up for it) or mailed cheque less any outstanding amounts on your account.

This credit can be entered as income or as a reduction in your EI expense.

How do I enter this into QuickBooks?

Banking > Make Deposits

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How do I enter this into QBO?

Plus Sign > Bank Deposit

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For more information about the Small Business Job Credit, check out http://www.cra-arc.gc.ca/whtsnw/tms/sbjc-eng.html

Holiday bonus? What you must know if you’re issuing bonus cheques using QBO Payroll.

THE PROBLEM:

I wrote a bonus paycheque using QBO Payroll and the calculations are wrong.

A NOTE:

Intuit payroll engineers are aware of this issue and are working on a resolution.

THE SCENARIO:

It’s December, a time for staff parties, office treats, and hopefully… bonuses! Today I sat down to issue one such paycheque in QBO. The president of the company wants to pay her hard-working husband a net discretionary bonus of $6000, so this will need to be grossed up. This employee is maxed out on his CPP contributions for the year and doesn’t contribute to EI. His federal and provincial TD1 amounts are set to the 2015 default amounts. His vacation policy is set to pay 9.6% each pay period. Discretionary bonuses are not vacationable in any of the provinces. If you want to confirm this, please check with your provincial department of labour. And make sure you know the difference between discretionary and non-discretionary bonuses (which are vacationable).

There are two ways to pay bonuses in QBO. The first way is to select ‘bonus’ as a pay type when setting up (or editing) the employee. I suggest using this method if you want to include non-discretionary bonuses on regular paycheques. The second way is to simply select Bonus only from the Run Payroll drop down menu when you want to issue a bonus.

Using the second method, I started a Bonus only payroll. Next, I chose to enter the bonus amount As net pay and clicked Continue. I entered $6,000 as the net bonus and realized that QBO is calculating gross pay in the amount of $14,658.38 which is not correct. If you recall, the employee is maxed out on CPP and EI, so the ‘grossed up’ amount of $8,082.38 is all income tax.

Additionally, QBO is calculating and adding vacation pay on the incorrect gross amount. No vacation pay should be added as discretionary bonuses are not vacationable. Unfortunately, there is no way to edit the paycheque to correct for either of these issues.

NOTE: I tried the same procedure using As gross pay and it appears that this is working correctly in terms of the income tax calculation. However, it is still adding vacation pay, which is incorrect.

THE FIX:

1. First, let’s add a new bonus policy:

From the Gear menu, choose Payroll Settings. Choose Vacation / Sick / PTO. From the Vacation and Sick Leave Policies box, choose Create to set up a new zero vacation item policy. Choose Vacation for the Category, use Bonus Zero for the description, select the Paid out each pay period radio button, add 0.0 to the Percent of pay earned. Click OK.

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2. Next, let’s add the policy to the employee profile:

Choose Employees from the left hand navigation bar. Click on the name of the employee. Click on the blue pencil icon to the right of the word Pay. On number 4, use the drop down menu to select the Bonus Zero policy we added in step #1. Click Done on the bottom right.

3. Let’s pay the employee:

Run the bonus payroll by selecting Bonus only from the Run payroll drop down menu. Choose As net pay or As gross pay and click Continue. Select the employee(s) getting a bonus, and add the amount of the bonus (or net bonus) to the $ field. You can also add a memo if you want. Review the cheque by clicking on the blue pencil icon on the right. Confirm that the amounts are okay and click OK. You will return to the previous screen. Confirm the bank account and the pay date and select Preview payroll. On the next screen choose Submit payroll. On the next screen enter the cheque number and print pay stubs. Click Finish payroll.

4. Return the employee back to the original vacation policy:

Choose Employees from the left hand navigation bar. Click on the name of the employee. Click on the blue pencil icon to the right of the word Pay. On number 4, use the drop down menu to select the original vacation policy. Click Done on the bottom right.

SUMMARY:

This is my experience only. Yours may differ due to the many possible options in the company file, the payroll settings, and the employee profile. Use the CRA Payroll Deductions Online Calculator (PDOC) to calculate and compare figures if in doubt. And as always, consider trying it out in the test drive file first.

How the Print later feature works in QBO

Today I searched like crazy for the Print later box while creating an invoice in QBO. I double checked my Company Settings to make sure that my preferred delivery method was Print later. It was. But all I could see was the Send later box at the top of the invoice. After some exploring, I finally found the Print later box. Click on the Print or Preview option at the bottom of the invoice, and you’ll see a check mark box:

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HOW TO BATCH PRINT IN QBO

Once I had confirmed that my invoices were selected to be printed later, I went to find the print queue. But there isn’t one! Well, at least not like there is in desktop. Here’s how this functions in QBO. I’m using Chrome which is the preferred QBO browser.

First, go to Transactions on the left hand navigation bar. From the drop down menu, choose Sales. Click Filter. Choose Invoices for Type and Print later for Delivery Method. Click Apply.

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This will show you all the invoices in your print queue. Simply choose the invoices you’d like to print by checking them off and selecting Print transactions from the Batch actions drop down menu.

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Your invoices will open in another Google tab (all of them in the one tab – scroll down to view). Right click to select Print, choose your printer, then click on Print. When you click back over to QBO, notice the following screen. If everything has printed correctly, select Yes. To leave them in the queue, select No.

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HOW TO GET RID OF INVOICES YOU DON’T WANT TO PRINT

Use this same method to remove invoices from the queue you don’t intend to print. Choose the invoices you want removed from the queue by checking them off. Choose Print transactions from the Batch actions. The invoices will open in another Google tab, just like in the previous example. Instead of printing, you’re going to close the tab that just opened. This takes you back to QBO and the message that appears in the screenshot above. You will be asked if you want to mark the selected transactions as printed. Say Yes. Your print queue should now be empty.

The nice thing about doing this in QBO (as opposed to desktop) is that you don’t have to ‘cheat’ printing the invoices to a PDF file. Note that this also works with sales receipts and expense transactions.

What to do about a blank page in QBO

QB Tip of the Day Blank Page

Take QBO Canada for a test drive!

I used my personal funds to make a purchase for the business. How do I enter this into QuickBooks?

Sometimes it happens that you need to use your personal funds for a business purchase. There’s an easy way to get this entered into your QuickBooks data file whether you’re using the desktop version or QBO.

First, create a new credit card account. This account will be used to capture all purchases made by you using your personal funds (the method of payment doesn’t matter). If I was entering this into my own set of books, I would call it “Marnie’s Expenses” or something similar.

Then, using the Enter Credit Card Charges function found in the Banking menu (desktop) or Expense function found in the quick create menu (QBO), enter the details of the purchase (date, vendor, amount, account, etc.) using the new credit card account you just created. If you want, you can add the payment method in the memo field (i.e. Debit, Cheque No., Cash, Amex, etc). Continue entering all your personal funds purchases this way. The transactions will accumulate in this account.

When you are reimbursing yourself for these purchases, simply write yourself a cheque for the total amount in the account, coding it to the new credit card account. This will zero out the account.

If you want to let these purchases end up in Shareholder Loan (or Owner’s Equity) account, you will need to journal the amount over to that account periodically. You will Debit the Credit Card Account and Credit the Shareholder Loan account. I suggest monthly, but be sure to do it at your fiscal year end so that the balance in the new credit card account is zero.

Don’t turn on multi-currency in QBO by accident!

Don't turn on Multi-currency by Accident!

QuickBooks Desktop to Online Conversion – Canada

Many Canadian ProAdvisors I talk to are excited about QuickBooks Online (QBO), but a common complaint has been that there is no conversion tool. EXCITING NEWS! It appears that the conversion tool is now available from right inside a desktop file. These are my early observations, as there isn’t much information available on the tool as of the date of this blog post.

HOW TO USE THE CONVERSION TOOL:

1. Open the desktop data file using QuickBooks 2014 R4. IMPORTANT: If you’re using the Accountant edition, you need to toggle to the Pro or Premier edition. 2/25/14 UPDATE: The conversion tool is now available from the Accountant edition of QuickBooks desktop.

2. Under the COMPANY menu, go to the bottom and select EXPORT COMPANY FILE TO QUICKBOOKS ONLINE. If you don’t see this, you need to toggle to the Pro or Premier edition.

3. Click CONTINUE on the next window. The data is checked. NOTE: If you are using multiple currency, this conversion tool will not work. Also unavailable (but I’m not sure if any of these prevent a conversion): custom sales form templates, price levels, progress invoicing, multiple sales tax rates, inventory tracking.

4. You are prompted to sign in to your Intuit account or create a new account. I used my QuickBooks Online Accountant (QBOA) credentials (although please note this doesn’t mean the company will appear in my QBOA dashboard – I still have to invite myself as an accountant user).

5. You are asked if you want to replace an existing QuickBooks Online company file or create a new one. I chose to create a new company (which sets up a 30-day free trial of a QuickBooks Online Plus company).  2/25/14 UPDATE Creating the company in QBO FIRST lets you choose which version.

6. QuickBooks begins the export. This step takes a few minutes. Soon a new window opens saying you will receive an email when your data is ready.

7. Open your email and sign in to your QBO account. Voila! There’s the file!

OBSERVATIONS:

Right now it’s all or none – there’s no option to select a certain period of data.

I tried this with the Pro Hockey School sample file in QuickBooks Pro 2014 R4P (I’m not sure if the tool is available in earlier releases). The data came across beautifully and just as it was entered in the desktop file. I compared the P&L and Balance Sheet from desktop to online and they are an exact match. The GST/HST filing history is correct and the upcoming period is intact. Payroll is correct. Reconciled transactions are marked correctly. 2/25/14 UPDATE: Before converting, make sure you have the latest release by going to Help > Update QuickBooks.

I also tried this with the Pro Hockey School sample file in QuickBooks 2013 R8P+U. However, this opened a US data file and much of the data did not come across correctly. Don’t do this using the 2013 version! 2/25/14 UPDATE: This now works with 2012 and above and converts into a Canadian file.

If you are serious about converting a client, I would probably try this out using your own email address to make sure the tool works. Then, I would call the Intuit Inbound Sales Team to have them set up a proper QBO account for your client, making sure the subscription level is correct (though I’m not sure if you can convert to anything other than the QuickBooks Online Plus version) and to make sure you’re getting the best available discount (ProAdvisors may be able to receive perpetual discounts on behalf of their clients).

2/25/14 UPDATE: Although all payroll DATA comes across nicely, you will have a few tasks to do in the QBO file in order to begin processing payroll: turn on payroll, complete employee profile information, enter YTD information. 

REVIEW:

My early review is that I’m totally impressed! This took all of five minutes and my data appears to have converted seamlessly. Try it out. Just make sure to check your data very carefully after the conversion. Let me know how it works for you in the comments section below.

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