Setting Up QBO

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

Setting up QuickBooks® Online properly is crucial not just to the accuracy of your reports, but to your ability to understand your company’s day-to-day activity. This chapter shows you how to set up your Chart of Accounts, configure Account and Settings, and create your Products and Services.

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.