In this chapter, we'll learn how to set up a new business in QuickBooks Online. Whether your business has been recording transactions, customers, and suppliers for several years or is just getting started, QuickBooks can easily integrate your business data. In this chapter, you will learn how to:

• Advancing company settings
• Importing list information

Advanced Settings

Click the Advanced Settings link to update additional settings in your company. The important settings in the advanced section are the following:

Accounting

The accounting settings let you determine the first month of your company�s fiscal year. You can also select the option to Close the books.

• First month of fiscal year: For reporting, you can specify any month as the start of your fiscal year (also called your financial reporting year or accounting year).
• Close the books: The Closing Date marks when your company�s books have been closed. You�ll set a closing date password to protect your records against changes that would alter balances for closed accounting periods. These changes include editing or deleting transactions entered on or before the closing date and entering new transactions dated on or before the closing date.

To update the Accounting settings:

1. Click the Accounting section to edit the settings.
2.Choose the First month of the fiscal year

3. Select the Close the books option.
4. Enter the Closing date. QuickBooks lets you choose to allow changes with just a warning or a warning and a password. Choose the option that works for your company.
5. Enter the Password if required.
6. Click Save.

7. Click Done to update the Company Settings.

• NOTE: It�s recommended that you choose the option that includes both a warning and a password. If you decide to set a password, QuickBooks requires the password for changes that would alter balances for the accounting period you have closed. This includes adding, editing, or deleting transactions dated on or before the closing date. You can change the password at any time.

How QuickBooks Is Built?

QuickBooks is based on lists and transaction forms. Together they make up most of the information in QuickBooks. See below for more details.

Lists in QuickBooks

Lists are the framework of QuickBooks. Use lists to fill out most QuickBooks forms. For example, to pay a bill, choose a name from your vendor list on the Enter Bills form. QuickBooks enters the list information on the form for you. This saves you time and prevents typing errors. You can also change the information directly on the form if necessary.

Although most lists are easy to set up in QuickBooks, some lists -such as the Chart of Accounts list, Products, and Services list, and Class list- require careful planning.

QuickBooks Transaction Forms

You record most of your daily business transactions on a QuickBooks transaction form. You will use QuickBooks lists to complete transaction forms. Behind the scenes, QuickBooks records the accounting entries (debits and credits). The invoice is an example

Importing Lists

If you have Excel files containing lists of your customers, suppliers, chart of accounts, and/or products & services they can be imported into QuickBooks to quickly incorporate your business� information into your company file. This is helpful because entering each customer, supplier, etc., individually can be time-consuming.

To import customers:

1. Click the Gear Icon at the top right of the screen and then click Import Data.

2. Click Customers.

3. Click Browse and then navigate to the Excel or CSV file that contains your customer data. Click Open, and Next at the bottom right.

4. The window now displays two columns. The column on the left shows data fields that can be imported into QuickBooks. The column on the right shows possible matches for that data that is in your Excel file. QuickBooks usually matches these sets of data by itself, but if needed you can click any drop-down arrow on the right column and change how QuickBooks will interpret it when importing. After reviewing the information, click Next.

5. In the final window, you can confirm the data that QuickBooks is importing and make any final changes. If QuickBooks encountered any errors, you will see them displayed in red. After reviewing the information, click Import.

• NOTE: You can import other lists using the same process as above. See information below.

Steps for Importing Products and Services

1. Click the Gear Icon at the top right of the QuickBooks window, and then click Import Data.
2. Click Products and Services.
3. Click Browse and then navigate to the Excel or CSV file that contains your customer data. Click Open, and Next at the bottom right.
4. The window now displays two columns. The column on the left shows data fields that can be imported into QuickBooks. The column on the right shows possible matches for that data that is in your Excel file. QuickBooks usually matches these sets of data by itself, but if needed you can click any drop-down arrow on the right column and change how QuickBooks will interpret it when importing. After reviewing the list, click Next.
5. In the final screen you can confirm the data that QuickBooks is importing and make any final changes. If QuickBooks encountered any errors, you will see them displayed in red. After reviewing the information, click Import.

Opening Balances

The Chart of Accounts can be imported through the same means as customers, suppliers, and products & services, and by doing so the balances of various accounts can also be imported. This is helpful because if you have a Chequing account, loans, or assets, you need to integrate the balances of those accounts into QuickBooks before entering any transactions that relate to that account. For instance, before you enter cheques that you�ve written, you first want to enter the amount of money that is currently in that Chequing account.

Importing your Chart of Accounts is the easiest method for integrating those opening balances, but other methods can be employed:

• Manual Entry: When you create a new account on the Chart of Accounts, if the account is a Balance Sheet account (asset, liability, or equity) you have an option for entering an opening balance and an as of date for that balance.
• Historical Transactions: You can enter historical transactions that makeup account balances through the same methods as entering any other kind of transaction. As long as you enter the appropriate date QuickBooks will update your financial information for that period, and the appropriate accounts will also be affected.
• Journal Entries: If you are well-versed in debits and credits and how they are used to generate account balances in a double-entry accounting system you can build a journal entry that summarizes all of your business� financial information on a single journal entry. Doing so will incorporate your accounts� balances. This is an advanced method, however, and should not be attempted unless you have extensive knowledge of accounting and bookkeeping or your accountant has built an appropriate journal entry for you.