QuickBooks Online Advanced Certificatio Prep. Module 9 PDF

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This transcript was exported on Dec 16, 2020 - view latest version here.

QBO Advanced Certification: Module 9 – End of Period Hi, everyone. Thanks for joining again. I know this has been a long saga over all of these modules. So we're in module nine of the advanced certification, and this is the final day of the virtual conference. So hopefully your attention span is still that you're still excited to learn about the content here in module nine. So just a brief introduction, my name is Bryce Forney, I am a tax preparer in the San Francisco Bay Area, and I think that's all you need to know about me. I am assisted today in the Q&A by some other trainers. I believe that it's Michelle and Carla and Heather. So I want to call out a thanks to the other trainers for doing Q&A. And if I got the names wrong, if there was a switch out and someone else is doing Q&A, just put your name in for one of those three names, still very personalized. So we are on module nine, end of period activities. And we always show the additional resources, the most important, well, most relevant I should say, or common, frequent, typical, is the QBtrainingevents.com reference for all of the accountant facing training that Intuit provides. There's a firm of the future blog for tips and becoming more of a cloud practitioner information related to that. And then there's some marketing assist. CPE, you've seen this before. I'm not going to read through the entire slide, but there are confirmations and polls that we do throughout the session. We know that you're on the edge of your seat. You're excited to receive all of the information, but just as a CPE, double-check there are those confirmation points. So please be sure and participate in the polls as well as respond to any requests for attention. So you have also seen this, we have this probably in each slide, so I don't want to belabor the point. You have to be certified in order to see the advanced certification and to take the advanced certification and the advanced certification, in case that has not been mentioned before, there are very few of the overall pro-advisor population who become advanced certified. I personally believe it's because of the commitment that it takes to go through the advanced exam as opposed to specific product knowledge or experience. Even if you've got a lot of experience with the product, you're working with clients every day. And even if you have a sense of accounting concepts, the exam, just because it's so specific around things in QBO, and you have to read through the questions carefully, like any exam, it takes a lot of time to get through it, to reference the supplemental guides, that sort of thing. [inaudible 00:03:18] as well as the accounting concepts, like I mentioned before. Accessing the exam, we're going to our ProAdvisor area within QuickBooks Online Accountant, QBOA, and then choosing, under the QBO Advanced Certification, choosing take exam. So there are five sections of the exam and there are 10 modules in which we train. What happened? Why are there five sections? And why do we train in 10 modules? The reason is to make the number of questions per section of the exam more equal. So that should you have a weak spot and need to retake a section of the exam, it won't necessarily be a gargantuan number of questions to take. So if you are not to pass all sections within the first three attempts, so you're taking each section, submitting the section, no feedback, and then you're submitting all sections for grading. So that grading happens three times. Should there be any section that you do not pass after three attempts, then there's a 60 day period for, it uses the term lockout here, I prefer to think about it as an opportunity to review the materials so that you can reattempt when you're ready to take the exam. And then once you are advanced certified, there is a recertification exam and the term exam I think even overstates it. It's really about what's new in the product since the last time the exam was developed. So we are in this period after November. So if you certify within essentially the next several months, let's say, then you recertify the following year sometime around March and the end of June. So

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This transcript was exported on Dec 16, 2020 - view latest version here. you get a number of months to recertify. As I mentioned, it's an exam, but it's abbreviated and it's really just about what's new in the product. So it's time for our first poll. So we'll go ahead and launch this poll and I'll just read it out. You'll have plenty of time to complete the poll. How long have you been a customer of Intuit? So just some... There's no wrong answer on any of these polls, particularly this one, because it's really about how long you've been a customer. And a customer of Intuit could be not only QuickBooks, but it could be one of the pro tax products, TurboTax, Mint, any of those products. Okay, so the poll's been up for enough time, so we'll go ahead and close the poll and share the results. So just out of curiosity, you can see among others in this session. And I think because this is advanced certification, we're likely to see a skew towards people who've been customers of Intuit for quite a while. So there are the poll results. That's not one where there's a correct answer. Some of them, we always want to point out if there is a correct answer, not that it matters for CPE, but we want to point out what the answer is of course. That one, it's really up to you. You did great. And so today the learning objectives, or in this session I should say we have our learning outcomes. I don't read through the learning outcomes. You have access to the slide deck so you can review these at your leisure, or if you're having trouble sleeping, you can go through these on your own. I'm not making light of our learning outcomes, it's just that they're required for CPE purposes and we're going to talk about each of these topics. So I don't want to read through those learning outcomes. So here are our lessons in this module nine. So let's dive in. Our first one is talking about reviewing lists. So we've gone through all of our setup. We've been working with our client throughout the year, or at least that's the happy path that we hope is the case. And when it's at year end, which is appropriate because this V con is at about year end, we're going to look through a number of areas to make sure that that information in QBO is accurate and complete so that we can file a tax return or send the information on to the tax preparer or otherwise prepare a financial statement whatever happens at year end, other than tax. I think for most QBO clients, at least for me, I'm working almost exclusively with mom and pop micro businesses. It's all about... The whole accounting is in service to the tax return. So we're going to go over our chart of accounts, our customer lists, and our vendor list, and our products and services. We want to make sure that these lists are narrowed down so that we're getting not only all of the information that we want to get out of the books, but that we're getting it in an efficient way, in a readable fashion. If not for the business owner, at least for us as we're working with the books. We've got issues that are common, where lists can get too long. We can have duplication of accounts, customers, vendors, and we want to make sure that our products and services are set up with accurate mapping. So when we look at the chart of accounts, it's really common for our clients to, and because they don't know, they don't know what the relevance is of having more or fewer accounts, and they're trying to do everything right. And one of the byproducts of that is that they can end up creating accounts that are really duplicates in our mind for the tax return. So the scenario where the client is creating an expense account for every different vendor, or they're creating an expense account, one for FedEx and another for USPS, and they're trying to make it really granular, but then it can end up exploding. I know, yeah, this happens with all clients and it does not change over time. So this is a regular occurrence that we're going to go through the charter of accounts. And most of what we're going to be doing is making accounts inactive and merging accounts together. We also have to consider the usage limits if our client is using anything except QBO Advanced. So if they're using simple start essentials or plus, there is a limit of 250 accounts other than the system generated accounts. So we need to work within that framework. If the client is getting close to 250, it's difficult for me not to consider... If a client has anywhere near 250 accounts, I think there's a problem

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This transcript was exported on Dec 16, 2020 - view latest version here. irrespective of the size of the business. Almost all businesses, no matter what size, are going to have fewer than 250 accounts in the chart of accounts. And even by Intuit's own information on why they created the QBO Advanced skew, it's only targeting, I don't know, one or 2% of the overall QBO customer base. So hopefully this is not an issue of your client getting close to the 250 limit. Nonetheless, just for the chart of accounts being informative and succinct, we want to take some accounts that are not applicable to the client that were automatically generated or that our client created they thought they might need, but they don't end up using. We can just go to the far right and make an account inactive. Now the making active is an accurate term. There are other places within QBO where they talk about deleting and delete. There's no true delete of any list element within QBO ever, ever. So chart of accounts, customers, vendors, products and services, and I guess other lists like terms. If there ever is the word delete, it really means make inactive. So the good news there is you can always reactivate an account if you want, by going to the grid gear, that little baby gear, and then choosing to show inactive, I think is the term. And then it'll show all the accounts. And then if you're deleting an account, if you have an account that's inactive, it'll show this little deleted parenthetical to the right of the account name. So that's one way that we can reduce what we see in the chart of accounts, because the inactive accounts do not count against the 250 limit. Another thing that we can do is merge accounts together. So I gave the example of where you have three accounts that all relate to postage and shipping. We have USPS, we have FedEx expense, we have UPS expense, and we want to merge those together so that it's just one account called postage. Or maybe you even just put it into office expense. I mean what really is the difference? If somebody, if they're spending a bunch of money on postage, are they going to make a management decision to use the post office less? Probably not. So I would tend to put it in office, but that's just me. So if we want to merge accounts together, let's say we've got one account called postage, and then we have a bunch of other accounts that are postage related, but they're named different things like FedEx expense, UPS expense. We go into those bad accounts, so the FedEx expense, and we rename the account, the name of the account, to postage, which is the same as our good account. And as long as they are the same account type, expense in this case, and they are the same detail type, which is a required field that doesn't do anything, but it's there, then when you click save, QBO is going to say, "Hey, whoa, I've already got an account with that name. Would you like to merge these together?" When you do that, it's going to move all the transactions from the bad account, FedEx expense, into our postage expense. And then it's going to make inactive that FedEx expense. So that's how the inactive works. And then as I mentioned before, it's still going to be available to reactivate. And for any transactions that were posted, now in the example of the FedEx where we're merging those together, that's going to show up, all of those historical transactions are going to show up in the postage expense account. If we just made an account inactive, so not merging, we're just taking an account that we don't think is used very much, and we don't want to be used in the future, we make that inactive, then what's going to happen is any transactions that use that account, they will show up on the historical P&L. So you don't have to worry about losing information. It'll just have that parenthetical deleted next to it on the report. And then we've got some examples here of some common scenarios that happen. So we're going to talk about products and services and how those map later, I think we've essentially discussed... One call out here is that if you make inactive an account that has sub-accounts, it's going to inactivate the parent account and all of the subs. So I think that should be intuitively obvious, but that's a reality. And then another thing that we want to do as we're going through our lists with customer and vendor lists is to

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This transcript was exported on Dec 16, 2020 - view latest version here. make sure that we eliminate duplication. So you can have two very similar names where there's a misspelling in the account name, where we see the name is the same, like first name last name is the same, address as the same, zip code is the same. So in that case, the suggestion here is that you can create a contact list report, one of our four types of reports, we've got summary detail list and aging reports. So on this list report, we can get a list of all of our customers, and then we can say that we want to group the customers by zip code. So this may seem a bit odd. The idea there is that we're getting common customers in the same region on the report, and then we can look for some duplication. If you have phone number as an element that regularly is input with a customer vendor, you could similarly do that with phone number. And that would be much more specific of course. And assuming that there was no mistake in entering the phone number. So we can also make a customer or vendor [inaudible 00:18:30] are not likely to repeat, maybe as much as 50, 60% of a business's customers may not repeat. I'm trying to think of a good example of that scenario, easy for me to say. And this is iced tea, by the way, sometimes people think I'm drinking beer or something because of the color. It's just ice tea. As I stumble through my words. So the scenario where you've got a lot of new customers, I don't know, maybe See's Candy. That would have a lot of repeat customers as well. Because I'm thinking if any business does not have repeat customers, it's not going to be a business for very long, but yet I think there are businesses that don't have repeat customers. That's an okay thing. Oh, I guess like a big bus tour company. They have the buses around, I live very near to San Francisco, so there's a big bus there and New York and London. So that sort of company, a tourist based company, would not expect to have repeat customers. So they could set up the customer so that it's easy to communicate with that customer and then later make the customer inactive. So they can always be reactivated, they can always be cold for marketing at some point. And then another thing to consider on the customer list is whether the billing setting, for lack of a better term, is set to bill this customer or bill with parent. So if you... PART 1 OF 4 ENDS [00:20:04] Bill this customer or bill with parent. So if you have a parent customer that has sub customers, the subs get this option of, am I going to build this with the parent or am I going to bill this with the customer? So the choice here depends on how the client is invoicing, is charging its customer. So if you have, bill this customer set, then that sub customer is essentially an independent customer. It's under a parent, maybe because for marketing tracking purposes, something like that, but it's essentially a completely independent unit. So if our client is subbing out or has the hierarchy of customers based on referral source or based on, I don't know, something like geographic location or some other category where they're grouping their customers internally. But they're independent customers, then you're going to set that to build this customer. If on the other hand, the bill with parent scenario, that's where I think of a worker's comp defense of law firm that was a client of mine where they're really always billing the self-insured large entity... Have accounts that are what they call the applicants, the ones who have been injured on the job. So they're working on behalf of these individual applicants, but they're really always billing the larger entity. So if that's the scenario, then you're setting it to a bill with parent. So that's important as we're going through year end, to make sure that that billing is right. The bill with parent, by the way, is where you receive a payment and you can say, "Oh, this payment is on behalf of anyone of the subs." Whereas the bill this customer means that if you receive a payment for a bunch of subs, you would have to record individual payments. Because it's all independent customers, essentially that are just shown under the umbrella.

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This transcript was exported on Dec 16, 2020 - view latest version here. So the other thing we want to review is the products and services. We want to make sure that the mapping is accurate for these. So if you run a PnL and you see a lot of sales of product income, or uncategorized income, uncategorized expense, those are bank feed defaults. Sales of product income is a default for non-inventory and inventory parts. So if you see... No, that may be okay. May be fine that the business is setting its sales, so that they show up as sales of product income. In my experience, most clients want some sort of distinction that varies from the default, even if it's as simple as calling it sales or revenue. They don't really want an account called, sales of product income. And I like to change the default revenue account and create something specific for the client, so that when they create new items and they don't consider the mapping very carefully, that those show up really clearly for me. So here, what it's showing is that you can use the grid gear, that little baby gear, to show the income and expense account. I have no idea why this is not the default. To me, when I'm looking at a product and service list, that's absolutely what I want to see almost... Well, now I'm preparing tax returns. So my angle is a little different, but it's hard to imagine that being not valuable information on the default screen. Nonetheless, we can say, we want to see the income account that's mapped to this product or service. We want to see the expense account. And then you could look through that to make sure that the income account is correct. The expense account is correct, and that if you're dealing with inventory and you have more than one inventory asset account that, that's accurate. So you can change that mapping if need be. So we're going to talk later about the reclassified transactions tool. The reclassified transactions tool does not work on transactions where there's a product or service involved. So in order to change the account that's mapped with a product or service, you go amd edit the product or service itself, and then you change the, in this case, we changed the income account. The moment we changed the income account and not before, you will see this checkbox, it says, "Also update this account in historical transactions." That's optional. So you could change the mapping for an account just from this point forward for transactions recorded subsequent to this change. Or you can say this was a mistake for all time. I want the income account to be changed for all the transactions. And then if you are using more than one inve...