Advanced Workflows
After reading this chapter, you'll be able to implement advanced QuickBooks Online workflows that streamline compliance tracking, contractor management, and recurring financial tasks. The chapter covers the Receipts App for organizing and attaching digital receipts to transactions using optical character recognition, the Contractors App for managing vendor payments and 1099 tracking, and the process for creating recurring transactions that can run automatically or remind you when it's time to process them. You'll also learn to track vehicle mileage, enter journal entries, manage loans, and access the audit log to maintain complete financial records and meet IRS requirements.
In this chapter
- The Receipts App
- Tracking Vehicle Mileage
- The Contractors App
- Creating Recurring Transactions
- Using Journal Entries
- Managing Loans
- Making Loan Payments
- Applying Price Rules
- Zero-Dollar Expenses and Sales Receipts
- Bartering
- The Audit Log
- Do It Yourself: Advanced Workflows
Chapter review: Receipts, mileage, contractors, recurring transactions, journal entries, loans & price rules
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Why is it important to maintain a paper trail of receipts for business transactions?
- To avoid paying taxes
- To verify transactions and satisfy IRS requirements
- To replace bank and credit card statements
- To ensure receipts never fade
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What feature does the Receipts App in QuickBooks Online offer to process receipt information?
- Automatic receipt shredding
- OCR and AI to extract information
- Manual data entry for all receipts
- Automatic tax filing based on receipts
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How does the Mileage Tracker know the cost per mile?
- It updates automatically each year.
- On January 1, a popup will ask.
- You have to remember to update it annually.
- All of the above.
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How does a Vendor appear in the Contractors App?
- You have to start creating it there.
- You have to email them and have them accept.
- You assign it when you create an expense.
- By toggling the Track for 1099s option in their Vendor Details.
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Contractors App vendors can be paid with what methods?
- Through QBO Payroll.
- Through a Contractors subscription.
- Through Online Bill Pay.
- All of the above.
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Which of these can NOT be turned into a Recurring Transaction?
- A Sales Receipt.
- An Invoice.
- An Invoice Payment.
- All of these can be made recurring.
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Which of these is NOT a best practice use case for Journal Entries?
- Closing out equity at year end.
- Correcting miscategorized expenses.
- Allocating expense totals to Classes and Customer Jobs.
- Entering Depreciation.
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When you purchase a vehicle, you should code the purchase to:
- An Expense account.
- A Liability account.
- A Current Asset account.
- A Fixed Asset account.
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To make a loan payment, you:
- Manually split the payment into principal and interest.
- Select the loan liability account in the Chart of Accounts and enter the payment in the register.
- Choose Pay Loan from the Create menu.
- Use the Loan Manager to calculate the interest and principal amounts.
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Price Rules can be created for:
- Customer Types.
- Specific products or services.
- Date ranges.
- All of the above.
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The Audit Log:
- Can be turned on and off.
- Tracks all QuickBooks Online activity.
- Only shows the most recent changes to a transaction.
- Is found on the Create menu.
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The Mileage App allows you to:
- Track vehicle mileage and run reports to assist with tax preparation.
- Reimburse your employees for mileage on their paycheck, a bill or a check.
- Pass through mileage to customer invoices.
- All of the above.
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Price Rules can be set to adjust by:
- Percentage.
- Fixed amount.
- Custom price per item.
- All of the above.
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Which is NOT true about zero-dollar checks?
- No money goes in or out of the checking account.
- They are better than journal entries because you can capture all the detail about the transaction.
- You can send the check to the supplier.
- They can be used to affect both the Chart of Accounts and Products and Services list.