Setting Up Users in QuickBooks

If you plan to have multiple employees using QuickBooks, you can limit their access to specific areas.

Controlling access to your QuickBooks company file is easy when you’re a one-person accounting department. You simply use one password to protect your data.

But when you add new employees to the mix, do you want them to have access to absolutely everything in QuickBooks? Probably not. You have confidence in your employees or you wouldn’t have hired them. But this isn’t solely a matter of trust. It’s just good business practice to restrict individuals to specific areas and responsibilities, no matter what the application.

That’s why QuickBooks has built-in tools to help you limit activity. Here’s how it works.

Identifying Users

To get started, open the Company menu and scroll down the list to highlight Set Up User Names and Passwords. On the slide-out menu, select Set Up Users. The User List window will open, and you should see your own entry as Admin. Click Add User.

Set up username and password access in QuickBooks

To give an employee access to QuickBooks, enter a User Name for him or her here, then a password.

The Set up user password and access window will open. Fill in those fields and check the box in front of Add this user to my QuickBooks license. This will not be an option if you already have five users, since that’s the maximum number allowed by QuickBooks Pro and Premier. To buy more, open the Help menu and select Manage My License, then Buy Additional User License.

Tip: If you’re not sure how many user licenses you’ve purchased, hit your F2 key and look in the upper left corner. If you’ve maxed out and need more licenses, talk to us about upgrading to QuickBooks Enterprise Solutions.

Click Next. In the window that opens, you’ll define the access level for your new user. Your options here are:

  • All areas of QuickBooks,
  • Selected areas of QuickBooks, or,
  • External accountant (you can grant us access to all areas of the software except for those that contain sensitive customer data, like credit card numbers).

Click the button in front of the second option, then Next.

Set up username and password access in QuickBooks

You can specify the access rights for individual employees in numerous areas.

The image above shows the first screen of 10 that display the levels of access available in many individual areas of QuickBooks. Be sure to read the whole page carefully before assigning rights. Here, for example, you’re not just allowing the employee to enter sales and A/R transactions. You’re also deciding whether to grant him or her permission to view the Customer Center and A/R reports. As you can see, your options are No Access, Full Access, and Selective Access (three levels there). Check the box below this list if you want the employee to be able to View complete customer credit card numbers.

When you’re finished there, click Next to specify your similar preferences for Purchases and Accounts Receivable, Checking and Credit Cards, Inventory, Time Tracking, and Payroll and Employees. The next two screens contain more complex concepts, but you’ll follow the same process to express your wishes. They are:

  • Sensitive Accounting Activities, like funds transfers, general journal entries, and online banking tasks
  • Sensitive Financial Reporting, which allows access to all QuickBooks reports. The option you choose here overrides all other reporting restrictions that you’ve specified for the employee.

Finally, you’ll tell QuickBooks whether this person can change or delete transactions in designated areas, and whether he or she can do so to transactions that were recorded before the closing date (if this applies). The last screen displays a summary of the access and activity rights you’ve given the employee. Check them carefully, and if they’re correct, click Finish.

Housekeeping Options

 User List window in QuickBooks

The User List window

QuickBooks then takes you back to the User List window, where you’ll see the employee’s name displayed. If you want to Add, Edit, Delete, or View a user, make sure the correct name is highlighted and click the button for the desired action.

If you’re just now looking to add your first employee to QuickBooks or if you’re starting to outgrow the five-user limit, give us a call. There are more issues to consider when you take on multi-user access. We’d be happy to discuss them with you.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Audit & Accounting Update: March 9, 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition for financial institutions
In our whitepaper, we discuss the relevance of the FASB’s new guidance for certain categories of revenue for financial institutions.
Read more

Clarification of derecognition guidance for nonfinancial assets
FASB ASU 2017-05 clarifies the scope of asset derecognition guidance and the accounting for partial sales of nonfinancial assets.
Read more

FASB’S ongoing efforts to simplify hedge accounting
Our article highlights decisions made at the February FASB meeting related to its ongoing efforts to simplify hedge accounting.
Read more

 

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Not-for-Profit Update: January/February 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for not-for-profit organizations. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Consolidation of for-profit limited partnership by not-for-profit entity
Understanding the latest Accounting Standards Update (ASU) 2015-02 issued by the Financial Accounting Standards Board (FASB).
Read more

Can outsourcing help your organization neutralize rising labor costs?
Outsourcing strategies and their potential to support the success of your nonprofit organization.
Read more

Leveraging the cloud to strengthen your technology platform
The cloud is one of the biggest technology enablers for nonprofits, and has become a valuable information technology tool for many organizations.
Read more

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/muse.html

Tax Update: February 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Border Adjusted Tax proposals may impact exporters and importers
A new destination-based tax regime may be part of comprehensive tax overhaul, but details remain unclear.
Read more

New revenue recognition guidance is looming
Even though the tax rules have not changed, a change in book recognition could create a change in the tax method of accounting.
Read more

Employee stock ownership from three perspectives (video)
Employee stock ownership plans can be attractive to business owners, employees and companies overall. Anne Bushman discusses the benefits.
Watch now

Final rules require 5472s from foreign-owned disregarded entities
Read more

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Establishing Preferences in QuickBooks

Before you start entering data, make sure QuickBooks is set up appropriately for your company.

QuickBooks was designed to serve the needs of millions of small businesses. To do that, it had to include the tools and processes suitable for a wide variety of companies. But Intuit recognized that every organization is unique, so your copy of QuickBooks can be customized in ways that make it work best for you.

You could just dive in and start adding records and transactions. But we recommend you do some setup first. If you don’t, you may run into some issues later, such as finding that some features you need haven’t been turned on, for example, or that QuickBooks is simply not doing some things the way you do. The good news is that you can change many of these.

Getting There

QuickBooks refers to these options as Preferences. You’ll find them by opening the Edit menu and selecting Preferences.

To start customizing QuickBooks so it works best for you, open the Edit menu and choose Preferences.

As you can see, the left vertical pane contains a list of Preference types. Click on any of these to change the option screens to the right. Always click the tabs labeled My Preferences and Company Preferences to make sure you see everything that’s displayed for each type (sometimes one will have no choices).

Setting Up Reminders

Let’s look closely at one set of Preferences: Reminders. It’s very important that you visit these screens when you begin using QuickBooks. Depending on how big your company is and how complex your accounting processes are, there may be things you need to do every day, like pay bills and follow up on overdue invoices. It would be nearly impossible for you to do everything on time if you didn’t ask QuickBooks to keep track of critical dates and remind you of them.

Click Reminders in the left vertical tab. You’ll see one option under My Preferences. Do you want QuickBooks to show Reminders List when opening a Company file? If so—and this is a good idea—click the box in front of that line if there isn’t a checkmark there already.

Then click Company Preferences. Here’s where you’ll tell QuickBooks whether you want to see summaries or lists for each reminder, or neither. You can also specify how much advance notice you want for specific tasks by entering a number of days. QuickBooks comes with default settings, but you can easily change these.

QuickBooks comes with default settings for Reminders, but you can enter your own Preferences here.

As you can see, it’s easy to specify your Company Preferences. Click the appropriate button under Show Summary, Show List, or Don’t Remind Me. If you’ve requested a reminder, delete any number that appears in the box in front of days before or days after and then enter your own.

Critical Areas

We recommend that you look through all of QuickBooks’ Preferences and change any that don’t fit your company. Some simply have to do with the way QuickBooks displays information and how it functions, but others have direct impact on your accounting work. As always, we’re available if you have questions here.

There are many that you will probably want to visit. They may have numerous options, but here’s some of what you can establish in each:

  • Accounting. Do you want to use account numbers and classes?
  • Checking. Which accounts should QuickBooks automatically use for tasks like Open the Pay Bills, Open the Make Deposits, and Open the Create Paychecks?
  • Finance Charge. Will you be assessing finance charges on late payments from customers? What’s the interest rate, minimum finance charge, and grace period?
  • Items & Inventory. Do you want inventory and purchase orders to be active?
  • Multiple Currencies. Does your company do business using other currencies?
  • Payments. Can customers pay you online? What methods can they use?
  • Payroll & Employees. Will you be processing payroll using QuickBooks?
  • Sales & Customers. Do you want to use sales orders? How should QuickBooks handle invoices when there are time and costs that need to be added?

You can see why it’s important to study QuickBooks’ Preferences early on. It’ll help you avoid unnecessary roadblocks and ensure that your company’s needs are reflected well in the software.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Audit & Accounting Update: February 9, 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Updates to revenue recognition resources for ASU 2016-20
We have updated our revenue recognition resources to reflect the changes made by Accounting Standards Update 2016-20.
Read more

Are you sure you know when the revenue guidance in ASC 606 is effective?
Our article discusses certain factors to be carefully considered in determining when ASC 606 is effective for you.
Read more

New credit losses standard in a nutshell
Our summary provides brief answers to certain key questions regarding the FASB’s new standard on credit losses.
Read more

Valuing management incentive units
Our whitepaper discusses various issues related to the valuation of and accounting for management incentive units.
Read more

FASB simplifies the test for goodwill impairment
The FASB has simplified how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test.
Read more

Accounting ramifications related to centrally cleared derivatives
A change in the legal characterization of margin payments has accounting and disclosure ramifications for impacted entities.
Read more

FASB’s ongoing efforts to simplify hedge accounting
The FASB recently met to discuss feedback received on proposed targeted improvements to simplify hedge accounting.
Read more

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Employee Benefits Update: February/March 2017

This issue’s topics include:

Get your fiduciary house in order
DOL’s newest regulations require plan sponsor action

The majority of the U.S. Department of Labor’s complex regulations mandating fiduciary status for individuals dealing with retirement investment decision-making involve investment advisors. But the regulations, which are scheduled to take effect on April 10, 2017, also require plan sponsors to take certain steps. Remember, plan sponsors are always the fiduciary, and the regulations expand the definition of fiduciary status. A sidebar discusses the distinction between investment education and investment recommendations or advice.

Read More

Who’s to blame?
Court equitably apportions fiduciary misdeeds

When a fiduciary breach occurs, some fiduciaries may be more culpable than others. And when that’s the case, the court can order those parties to indemnify other fiduciaries who were, despite their technical status as fiduciaries, without blame. This article summarizes a recent case of the U.S. Court of Appeals for the Seventh Circuit where the court equitably apportioned relief in a fiduciary duty setting.

Read More

Hardship withdrawal programs require strict administration

While not required, most 401(k) plans offer a hardship withdrawal option. The IRS recently updated its guidance on how plan sponsors can remedy errors in the administration of hardship withdrawals. This article highlights the basics of hardship withdrawals and how to correct mistakes when administering a hardship withdrawal program.

Read More

2016 vs. 2017 retirement plan limits

This chart contains updated retirement plan limits for 2017.

Read More

Compliance alert

This feature lists a few key tax reporting deadlines for February through April.

Read More

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact me directly.

Want to learn more?

Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.

Join the Group

LinkedIn RBG-01-01

Tax Update: January 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Will 2017 be the year to extend your 2016 tax return?
This filing season brings many changes and unknowns that may cause taxpayers to revisit the question of filing an extension.
Businesses expanding or increasing activity in their current state or in new states should consider the benefits of state tax credits.
In light of a Trump presidency, what should business owners consider when planning their business sale?

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Anatomy of a QuickBooks Inventory Item

If you have an item-heavy business, you need tools to track your inventory. QuickBooks provides them.

When you started your business, maybe you were able to keep track of your inventory by peering in the closet or your garage. As you grew, that simply took too long. But you grew tired of running out of stock because you didn’t have time to constantly check its levels, and you forgot about items that didn’t sell and were tucked away in a corner.

You need inventory-tracking. QuickBooks can help you create thorough records for each product you sell. It keeps track of how much you have on hand and warns you when your stock is running low. And its reports tell you what’s selling and what’s not, so you can make better, smarter purchasing decisions.

Activating Inventory-Tracking

Before you get started creating item records and including them in transactions, you need to make sure that QuickBooks is set up to start tracking. Open the Edit menu and click Preferences. Click Items & Inventory in the left vertical pane and then select the Company Preferences tab. This window will open:

QuickBooks needs to know what your intentions are when it comes to inventory tracking.

First, of course, click in the box to the left of Inventory and purchase orders are active if it isn’t already checked. Click the next box down if applicable. The rest of this window deals with two concepts you need to understand. Quantity on Hand refers to the number of items that you actually have. Quantity Available subtracts items currently on Sales Orders. QuickBooks will warn you if you don’t have enough of a specific item to commit to a customer. You just have to decide which definition of Quantity you want to use.

When you’re done here, click OK.

Accuracy Matters

Now you can start entering records for the products you sell. Accuracy is absolutely essential here. You’ll see why as you explore QuickBooks’ tracking capabilities.

There are a few ways to open an item record window. You can click Items & Services in the upper right corner of the Home Page, or open the Lists menu and select Item List. Both will open a window displaying any item records that have been entered in a register-type view. Right-click anywhere and select New, or click the arrow next to Item in the lower left corner and select New.

QuickBooks Item List for Inventory

Double- and triple-check your work as you enter information in the QuickBooks item record window.

QuickBooks lets you create records for numerous types of items, including Service, Discount, and Inventory Assembly. To see how inventory-tracking works, select Inventory Part from the drop-down menu under TYPE. Next, enter an Item Name/Number in that field.

If you’ve already named a main category (like Hardware, in the example above) and want to place your product in a subcategory of it, click the Subitem of box and choose from the drop-down list. Manufacturer’s Part Number is optional. You can ignore UNIT OF MEASURE, if this isn’t an option in your version of QuickBooks.

Purchase Information

If you buy this item from a vendor, fill in this side of the window. Write the description that should appear on purchase transactions when you place an order. Enter the cost you pay for it, and select the COGS (Cost of Goods Sold) account if the default isn’t correct. Do you buy this product exclusively from one supplier? Select the name in the drop-down menu under Preferred Vendor.

Sales Information

Enter the description you’d like customers to see on invoices and the price you’ll charge. If you’re at all unsure of what to select for Tax Code or Income Account, we can go over your Chart of Accounts with you and explain how its accounts are used in records and transactions.

Inventory Information

Here’s where the software’s tracking capabilities come in. QuickBooks will probably default to your Inventory Asset account, which is fine. Enter the minimum number of items that should be in stock when you get a reminder to reorder, and the maximum you want to have at any one time. Fill in the On Hand field with the number you currently have. QuickBooks will automatically calculate the Total Value.

In the screen shot above, you see an example of what that last line looks like once you start using that item in transactions. You’ll see its Average Cost and the number that are currently on purchase orders and sales orders.

Creating records for every product you sell can be tedious, time-consuming work. But the payoff comes in the real-time knowledge you’ll have of your inventory that will lead to better, smarter purchasing decisions. As always, we stand ready to help.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

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