Advanced Workflows

Preview · ~21 min read · from QuickBooks® Online Step-by-Step

One of the most exciting parts of learning QuickBooks® Online is discovering features that solve pain points in managing your company. In this chapter we’ll explore built-in tools that streamline your bookkeeping and financial management.

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

14 practice questions. The answers are in the book.

1. 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

2. 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

3. 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.

4. 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.

5. Contractors App vendors can be paid with what methods?

   • Through QBO Payroll.
   • Through a Contractors subscription.
   • Through Online Bill Pay.
   • All of the above.

6. Which of these can NOT be turned into a Recurring Transaction?

   • A Sales Receipt.
   • An Invoice.
   • A Payment to an invoice
   • All of these can be made recurring.

7. 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.

8. 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.

9. 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.

10. Price Rules can be created for:

    • Customer Types.
    • Specific products or services.
    • Date ranges.
    • All of the above.

11. 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.

12. The Mileage App allows you to:

    • Track vehicle mileage and run reports to assist with tax preparation.
    • Use payroll to reimburse your employees for mileage.
    • Pass through mileage to customer invoices.
    • All of the above.

13. Price Rules can be set to adjust by:

    • Percentage.
    • Fixed amount.
    • Custom price per item.
    • All of the above.

14. 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.