Setting Up QBO

Preview · ~30 min read · from QuickBooks Online Step-by-Step

After reading this chapter, you'll be able to set up a new QuickBooks Online company from scratch by configuring your company information, preferences, and chart of accounts. You'll learn how to customize Account and Settings to control features like class and location tracking, automation options for accounts receivable and payable, and the accounting method your business uses. The chapter also covers how to build your Chart of Accounts with the correct account types and subtypes, and how to import existing lists if you're converting from QuickBooks Desktop.

In this chapter

• Starting a New QuickBooks Online Company
• Configuring Account and Settings
• Advanced Settings
• Setting Up the Chart of Accounts
• Activating Account Numbers
• Adding Accounts
• Modifying Accounts
• Removing Accounts from the Chart of Accounts
• Seeing Inactive Accounts
• Importing Lists
• Do It Yourself
• Initiating Imagine Photography
• Confirm the Chart of Accounts
• Setting Up Account and Settings
• Modify the Chart of Accounts

Chapter review: Setting Up QBO: company setup, Chart of Accounts & lists

10 practice questions. The answers are in the book.

1. It’s best to start a new QuickBooks Online file from scratch if:

   • You know your reports are wrong.
   • You have old customers and vendors.
   • You sell different products and services than you used to.
   • All of the above.

2. You can customize your QBO company settings under:

   • Settings gear > Account and Settings.
   • Left Navigation Bar > Accounting.
   • Left Navigation Bar > Account and Settings.
   • Settings gear > Preferences.

3. The Chart of Accounts contains categories for:

   • Products and Services.
   • Customer names.
   • Assets, Liabilities, Equity, Income, and Expenses.
   • Payment methods.

4. What is NOT true about account numbers?

   • They can be used create consistent organization across different QBO files.
   • They specify the order accounts display in.
   • Once you turn them on, you can’t turn them off.
   • Most small businesses don’t use them.

5. Which of the following is displayed vertically on the far left side of the screen?

   • A dashboard.
   • The Left Navigation Bar.
   • The Settings gear.
   • None of the above.

6. If you have list items you don’t need anymore, you can:

   • Inactivate them.
   • Merge them.
   • Completely delete them.
   • Either a or b.

7. What are sub-accounts used for?

   • Creating a detailed hierarchy.
   • Providing more detailed data on reports.
   • Analyzing business performance.
   • All of the above.

8. Which account category is found on a Profit and Loss Statement?

   • Income.
   • Bank accounts.
   • Equity.
   • Liabilities.

9. Which account category is found on a Balance Sheet?

   • Income.
   • Cost of Goods.
   • Expenses.
   • Assets.

10. The setting to change the time limit for your browser before you get logged out is found:

    • You can’t change this limit.
    • Account and Settings > Company.
    • Settings gear > Sign Out.
    • Account and Settings > Advanced.