[TUTORIAL] Master QuickBooks Online: Managing Accounts Receivable & Payable Effectively — Transcript

Full transcript

1. 0:00what's up everybody in this video I'm
2. 0:02going to teach you how to use QuickBooks
3. 0:04Online to manage your accounts payable
4. 0:06and your accounts receivable I teach
5. 0:09people how to start their own
6. 0:11bookkeeping business I teach people how
7. 0:13to do bookkeeping and I teach business
8. 0:16owners how to do their own bookkeeping I
9. 0:19am a QuickBooks expert and a bookkeeping
10. 0:21expert I've had my own bookkeeping
11. 0:22business for the past three years I
12. 0:25pretty much know everything there is to
13. 0:26know about QuickBooks online and I make
14. 0:28these videos just so that I can teach
15. 0:30other people everything that I have
16. 0:33learned so that you can run your
17. 0:34business more efficiently if you need
18. 0:37help with your bookkeeping I'd be happy
19. 0:39to help check out my website
20. 0:41harrisburgbookkeeping.com and if you
21. 0:42want to schedule a one-on-one
22. 0:44consultation just to talk about you and
23. 0:46your business a little bit more there's
24. 0:48a link in the description of this video
25. 0:50you can schedule a one-on-one
26. 0:51consultation anytime and finally if you
27. 0:54enjoyed this video subscribe to my
28. 0:56channel because I am posting new videos
29. 0:58every week teaching you more more about
30. 1:00QuickBooks and bookkeeping okay so let's
31. 1:03get started this right here is
32. 1:04QuickBooks Online it's just a sample
33. 1:06company and I'm going to teach you first
34. 1:08of all how to manage your accounts
35. 1:10receivable inside the QuickBooks so
36. 1:12there's two things I need to tell you
37. 1:14first there's a difference between a
38. 1:16receipt and an invoice so if somebody
39. 1:18pays you today for work that you
40. 1:20completed today you just need to give
41. 1:22them a receipt you do not need to create
42. 1:24an invoice if you've already been paid
43. 1:27so if you for example if you are a
44. 1:31landscaping company and maybe you went
45. 1:32to somebody's house and you mowed their
46. 1:33grass and they paid you on the spot all
47. 1:36you need to do is create a sales receipt
48. 1:38so just in the plus new button in the
49. 1:41top left hand corner just click on sales
50. 1:43receipt and then just I'm not going to
51. 1:45tell you exactly how to fill this out
52. 1:46it's pretty self-explanatory customer
53. 1:48date product or service the amount
54. 1:50pretty self-explanatory but this is the
55. 1:52only thing you need to do if somebody
56. 1:54pays you on the spot you do not need to
57. 1:56create an invoice there's no need to
58. 1:58however if you're Landscaping Company
59. 2:01you mowed somebody's grass today and
60. 2:03you're going to give them an invoice
61. 2:04because they have not paid you yet then
62. 2:06you want to create an invoice so the
63. 2:08same concept plus new in the top left
64. 2:10hand corner of your QuickBooks online
65. 2:12account and here instead of receipt
66. 2:14we're going to type invoice
67. 2:17so same thing here whatever the customer
68. 2:19is if you want to enter in the
69. 2:21customer's email you can and then you
70. 2:22can actually send the invoice directly
71. 2:25from QuickBooks which is pretty nice and
72. 2:27then the terms here this is important if
73. 2:29it's due on receipt that means the money
74. 2:31is due as soon as they receive the
75. 2:33invoice Net 10 or net 15 or net 30 means
76. 2:36that the the money is due 10 days after
77. 2:39the invoice date or 15 or 30 days after
78. 2:42they receive the invoice so that's a
79. 2:44very important distinction to make don't
80. 2:46just make it net 30 and expect to be
81. 2:49paid the next day so product or service
82. 2:52the amount of the invoice make it as
83. 2:54detailed as you want and then like I
84. 2:56said you can send it directly to your
85. 2:58customers email address straight through
86. 3:00QuickBooks or you could actually
87. 3:02download a PDF copy of the invoice and
88. 3:05then you can print it out or you can
89. 3:07email it directly to your client so once
90. 3:10you've created your invoices it's very
91. 3:13important that you track your accounts
92. 3:15receivable and you can actually do that
93. 3:17by going to the reports tab here on the
94. 3:20left hand side and we're going to search
95. 3:23for accounts receivable and then we want
96. 3:26to pull up the Aging detail report the
97. 3:28summary report is not going to have as
98. 3:31much detail obviously as this report so
99. 3:34we want to look at the AR aging detail I
100. 3:36recommend if you're creating
101. 3:38a lot of invoices you should check this
102. 3:40on a weekly basis so this will show you
103. 3:43all of your outstanding invoices that
104. 3:45have not been paid yet so this is a very
105. 3:47useful report to kind of see your oldest
106. 3:50invoices are going to be up top here and
107. 3:53then you can also go to the sales tab on
108. 3:55the left you can click on invoices and
109. 3:58here you can see all of your invoices
110. 4:00that have been unpaid and you can look
111. 4:02at invoices from 2022 or you can look at
112. 4:06invoices from the last six months or
113. 4:07last month or this month you get the
114. 4:09idea but here is another list of all of
115. 4:12your unpaid invoices so it's really
116. 4:14important oh and one other thing you can
117. 4:17actually select multiple invoices and
118. 4:20you can do batch actions and you can
119. 4:22send a reminder to all of your customers
120. 4:26directly from QuickBooks by just
121. 4:28highlighting all of them and doing a
122. 4:29batch action which is super super
123. 4:31helpful and also I don't want to forget
124. 4:34to talk about this you can go into your
125. 4:36account and settings
126. 4:38and you can go to the sales Tab and you
127. 4:42can scroll all the way down here to
128. 4:44reminders and you can do automatic
129. 4:46invoice reminders and you can have your
130. 4:49first reminder going out seven days
131. 4:53after the due date so as soon as the
132. 4:55invoice is overdue on the seventh day
133. 4:58you will the QuickBooks will
134. 5:00automatically send a reminder for you
135. 5:02and then you can do the same thing for
136. 5:0430 days after the due date and then you
137. 5:09can see you can do up to three reminders
138. 5:11so this is a super cool feature to
139. 5:13automate your AR Collections and
140. 5:16reminders and notifications this will
141. 5:18automatically send emails to your
142. 5:19customers keep in mind you need to have
143. 5:22an accurate and valid email address for
144. 5:25every customer in order for QuickBooks
145. 5:27to send them a reminder Okay so we've
146. 5:30created invoices we've tracked accounts
147. 5:32receivable we've sent follow-ups and now
148. 5:34we finally got paid so somebody mails
149. 5:37you a check you open up your mail you
150. 5:38look get the check and you have received
151. 5:41payment for that invoice so now you go
152. 5:43to receive payment and you just search
153. 5:45for the customer and you choose the
154. 5:48invoice that has been paid obviously
155. 5:51that whatever the date is now here is an
156. 5:54important distinction you have two
157. 5:55options here you can deposit the money
158. 5:58to undeposited funds or you can deposit
159. 6:00it directly into your checking account
160. 6:02if you are just using mobile deposit and
161. 6:05taking a picture of the check as soon as
162. 6:07you receive it I recommend it's easier
163. 6:09just deposit the funds into your
164. 6:11checking account directly however if you
165. 6:14are not going to the bank for a couple
166. 6:16days or a couple weeks then you can
167. 6:18deposit the check into undeposited funds
168. 6:20it's just very important that you
169. 6:22reconcile your undeposited funds and
170. 6:25make sure that you don't have a bunch of
171. 6:26sales sitting in your undeposited funds
172. 6:29because that will cause serious problems
173. 6:31with your profit and loss statement okay
174. 6:33so for this example we're just going to
175. 6:35deposit this receive payment into your
176. 6:38checking account 239 dollars you're
177. 6:40going to use your cell phone you're
178. 6:41going to do Mobile deposit with that
179. 6:42check so now it'll be a nice clean one
180. 6:45for one transaction there will be a bank
181. 6:48deposit on your bank account for 239
182. 6:51dollars so we're going to save that and
183. 6:53then the final step this is very
184. 6:55important this is where I see the
185. 6:57majority of people making mistakes
186. 6:59you're going to go to your bank feed and
187. 7:01you're going to find that bank
188. 7:02transaction it's probably going to show
189. 7:04up 48 hours after you did the the mobile
190. 7:07deposit with the check but this is so
191. 7:09super important you want to make sure
192. 7:11that you match the bank deposit to the
193. 7:14receive payment so I see so often that
194. 7:18instead of matching it people will just
195. 7:19add it as a separate transaction and
196. 7:22this is where you start double counting
197. 7:24your income and if you've ever had this
198. 7:26problem then I'm sure me just saying
199. 7:28double counting your income has hit your
200. 7:30heart in a sweet spot because if this
201. 7:32happens to you it's very stressful
202. 7:34because you don't know why your income's
203. 7:36saying 200 000 when it should have only
204. 7:37been a hundred and twenty thousand and
205. 7:39you're freaking out because you're going
206. 7:40to end up paying twice as much in taxes
207. 7:42so don't make this mistake ice I promise
208. 7:44you I see it happen almost on a weekly
209. 7:47basis it's a very easy mistake to happen
210. 7:49so you just want to make sure that you
211. 7:51are correctly matching the bank deposit
212. 7:54to the receive payment very very
213. 7:57important and you can figure out if you
214. 7:59made a mistake by reconciling your
215. 8:01checking account at the end of the month
216. 8:03you want to look for any unusual
217. 8:04transactions that have not cleared your
218. 8:06checking account and you do all of that
219. 8:08by reconciling your accounts if
220. 8:10everything I've just said completely
221. 8:11stresses you out and you have no idea
222. 8:13what I'm talking about you might want to
223. 8:15consider hiring a professional to help
224. 8:17manage your bookkeeping okay now let's
225. 8:20move on to accounts payable so the exact
226. 8:22same concept except kind of the opposite
227. 8:24instead of somebody owing you money now
228. 8:26you owe somebody else money so I'm not
229. 8:29talking about whenever you go to Lowe's
230. 8:30or Home Depot and you swipe your credit
231. 8:32card and you pay for something the same
232. 8:34day that's not what I'm talking about
233. 8:36I'm talking about instead let's say you
234. 8:38hire a landscaping company and they mow
235. 8:40your grass and they give you a bill and
236. 8:42they say hey please pay this and you say
237. 8:44okay I will pay this next week so you
238. 8:47owe somebody money so same concept here
239. 8:49top left hand corner we're going to go
240. 8:51plus new and instead of invoice now
241. 8:53we're going to click bill so just like
242. 8:56you filled out your invoice instead of a
243. 8:58customer you're going to fill up the
244. 8:59vendor the terms the build date the due
245. 9:01date the category whatever independent
246. 9:03contractor supplies and materials
247. 9:06Landscaping Company bookkeeper account
248. 9:08attorney whatever the category is
249. 9:09whatever the amount is and then you're
250. 9:11going to save that bill and now this has
251. 9:14created an accounts payable so the exact
252. 9:17same way that I showed you you can look
253. 9:18up an accounts receivable aging detail
254. 9:20report you can also look up at accounts
255. 9:23payable aging detail report but go into
256. 9:25this reports tab on the left hand side
257. 9:28and just search accounts payable aging
258. 9:30detail and then you can get a nice clean
259. 9:32report of all of the outstanding bills
260. 9:35that you owe if you only have one or two
261. 9:36bills not a big deal it's probably not
262. 9:38going to be difficult for you to manage
263. 9:40however if you start having 10 20 or 30
264. 9:43bills on a regular basis that need to be
265. 9:45paid in 15 or 30 days you're going to
266. 9:47need to look at your reports so that you
267. 9:50can accurately manage your bills and
268. 9:52your accounts payable now the same
269. 9:54concept as receiving payment we're also
270. 9:57going to pay our bills directly in
271. 9:59QuickBooks and you just click on pay
272. 10:02bills and you have a couple options here
273. 10:04so you want to make sure that you choose
274. 10:06the appropriate account that you're
275. 10:07using to pay the bill maybe you paid the
276. 10:09bill with a credit card directly online
277. 10:10or maybe you're mailing them a check so
278. 10:13whatever account you're using to pay the
279. 10:15bill you want to make sure that you
280. 10:16properly select that account here and
281. 10:19then whatever the date is probably most
282. 10:22likely today and then the check number
283. 10:24so you can actually print checks
284. 10:26directly from QuickBooks or you can just
285. 10:28not worry about printing checks and then
286. 10:31we can just select whatever bills that
287. 10:33you're paying and then let me move my
288. 10:36face here real quick and then just
289. 10:37you're going to over here once you've
290. 10:40selected the bills once you've entered
291. 10:42the amount verified make sure everything
292. 10:44looks correct you can either save and
293. 10:46print or save and close and then either
294. 10:48it's going to print the checks for you
295. 10:50or it's just going to save and close and
296. 10:52it is just going to create a bank
297. 10:55transaction inside of your QuickBooks so
298. 10:58now we can X out of this and then let me
299. 11:00show you one last thing the exact same
300. 11:03concept as receiving payment you also
301. 11:06want to make sure that whenever the
302. 11:08money comes out because if you mail a
303. 11:10check today it's not going to clear your
304. 11:11bank tomorrow or even the next day it
305. 11:13might take three to five days for the
306. 11:15mail to show up and it's going to take a
307. 11:17couple days for them to deposit the
308. 11:18check so it might be 7 to 14 days after
309. 11:22you mail the check when the the check
310. 11:24actually clears your account so now it's
311. 11:26very important once you've clicked plus
312. 11:29new and clicked paid bills now the final
313. 11:33step is in your bank feed once that
314. 11:34check finally clears you go in here and
315. 11:37you find the bank transaction and you
316. 11:40match it same concept it's really
317. 11:42important that you correctly match these
318. 11:45transactions in the bank feed to the
319. 11:47manual transactions that you've created
320. 11:49by paying bills and receiving payments
321. 11:51so I hope this brief tutorial on
322. 11:54managing accounts payable and accounts
323. 11:55receivable was helpful if you need any
324. 11:57additional help feel free to schedule a
325. 12:00consultation with me I would be happy to
326. 12:02work with you