New Features In QB

Even though Intuit does produce a new version of QB every year, and would love for all users to buy the new version each year, most people wait a few years between upgrades.  Older versions of the program will still work.  I have some clients still using the 1999 version of the program. I’m just glad they’re using QB; so I don’t push them on upgrading

The changes and new features that are added to each year’s program are somewhat subtle when compared year to year.  However, when you jump to a version of the program that is many years newer, the difference is much more extreme.

I was reading the latest Intuit ProConnection Newsletter and noticed that they have a pdf chart showing when many of the newest features since 2005 have been added to the program.  It’s interesting for anyone considering upgrading.

They also have this 7 page pdf focusing on the changes specifically for QB 2010.

 

Using QB For Rental Properties

Q:

Subject:  QUICKBOOKS V QUICKEN

Hi Kerry,
 
I stumbled on your blog by typing in Quickbooks VS Quicken and you came up. I am trying to figure out what program to use. QB or Quicken and am confused. I hope you can help.
 
Here is the scope of my business on what I would use it for.  My wife and I are Realtors and re developers and own several rentals. We do about 20 million a year in sales under a corporation name, I do land and building development under different LLC' etc  and we have 15 residential and commercial rentals
I see with QB offers little or no property management capabilities, but Quicken has a whole program devoted to it. I would find it important to keep track of all mortgages, payoffs, expenses etc.....I do see people selling management software that is compatible with QB that I can by online
 
I would be nice to keep track of all our Stocks etc......(would not know how to do)
 
Some advise online suggests that unless I am carrying inventory in a store to keep track of then Quicken is the way to go, but I do see mainly accountants recommending QB.
 
Last question, I do not know what to do with, I am hiring a gal to process our transactions as well as bookeep all these for us, but I really do not want here to see what we are depositing as income. Is there an easy way to do that like her entering it at office then editing at home. Our office handles payroll so that is not important
 
Right not we use no programs only hand logs and some excel sheets and it is a nightmare especially at tax time, so we need to do something fast.Our accountant would be happy since I just did my taxes, luckily we paid in to much
 
I currently reside in Washington St but do have family ties to Arkansas where I see your from. I have tons of family from the Danville and Havana area's
 
Anyways any suggestions would be much appreciated
 
Thank you for your time

A:

I have addressed this issue several times.  While I used to be a proponent of Quicken, I stopped trusting it a number of years ago and only recommend QuickBooks for reliable double entry accounting.  I even forced all of our clients to switch from Quicken to QB.

QB can handle everything you need for your rental properties on its own without the need to purchase any add-on programs.  Many of our clients have dozens of rental properties each and have been able to maintain very useful books with QB; so it is entirely possible for you and your tax pro to set up your QB to properly coincide with your tax returns. Your tax pro should definitely be an integral part of the design process for your QB files.

In regard to having a bookkeeper only enter checks without the ability to see your deposits, I'm not sure how practical that would be.  It's also an obvious indication that you may not be working with a properly trustworthy individual if you aren't able to trust him/her with maintaining the confidentiality of your finances.

Good luck.  I hope this helps.

 Kerry Kerstetter 

Follow-Up:

Kerry than you very much for responding. I really appreciate it, the more I investigate I am finding all the same answers so I bought Pro 2010. Now I just got to figure out how to do it all.

  

Thank you!

My reply:

As I said previously, your professional tax advisor should be part of the process of setting up your QB, especially in regard to the Classes and Chart of Accounts.

Since our clients send us copies of their QB data files for tax planning advice mid-year and for tax prep work after the year is over, it makes things much more efficient to have the QB data synchronized with the tax return data.  You tax pro should be able to save you a lot of time in this way.

Good luck.

Kerry Kerstetter  

 

  

Installing QB on Multiple Computers

From A Client:

Hi Kerry,

Part of why I've been holding off on sending you the corp data file is because I have a copy of QB 2009 and that should eliminate our Accountants copy problem with my 2007 version (I think) but I'm concerned to upgrade - I have only one license to use and I'm currently running 2007 on 2 machines (yeah w/1 license still but I'm concerned that they've improved their license algorithms....can you offer any insite? i.e. has the file structure changed from 2007 - 2009 whereby I could keep 2007 on my wife's machine and her still be able to make entries?)

My Reply:

In regard to the QB installation issue, I have never had any problems installing a copy of the program on multiple computers with one user license. The user license for QB programs is more for simultaneous users of the program rather than on the number of computers it can be installed on. They do sell versions of QB for multiple simultaneous users so that several people can access a data file at the same time. That is not the same thing as having a single user version of the program installed on multiple computers. As long as you register the program with the same phone number on each computer, there shouldn't be a problem. I have been doing that for several years, including the 2009 programs.

Just in case you don't want to lose your 2007 settings, it is also possible to install multiple versions of QB on the same computer. I have every version from 1999 to the 2010 beta installed on my computer because clients upgrade at differing times. The key is to not use the default installation folders. I manually set up a main folder called QuickBooks and then I have a subfolder under that for each version of QB. When installing the program, I manually select the appropriate folder to install into. I also manually set up folders for where I want the data files to be held. This keeps each year's program nice and separate. I can also actually have multiple versions of QB open at the same time on the same computer; which I have needed to do on a few occasions.

Since you already have the 2007 program working, I wouldn't mess with its installation folders. You should set up a new folder for the 2009 program and install it into that folder.

As always, once your data file has been upgraded to work with the 2009 program, it will no longer be accessible from inside any earlier version of QB

I hope this helps. Let me know if you have any more questions or problems.

Kerry

Follow-Up:

Hello,

Thank you for the advice on QB. I now have 2009 installed and am using it for the personal and 2007 running for the corp. This way I can have both company files open at the same time having 1 set of books on 1 monitor and the other on the other - makes things easier!

New Password Requirement

From a client:

Not too happy with the Quickbooks new program I bought. It is now requiring a password to encrypt! Password is ******.

My Reply:

I was glad to see that you upgraded your QB program to the 2009 version. I hope it is easier for you to use

One of the new 2009 features that you used is the ability to send me QBX copies of your data files directly from within the program and via an online storage service hosted by Intuit. As you discovered, that feature does require you to add a new password security layer to prevent anyone who may accidentally download your file from being able to open that file. Once I have the file converted from the QBX format to the QBA format I actually use, the password is no longer relevant. This feature has been working well from my end for those clients using this new feature.

You also have the option of sending me files the old fashioned way. To avoid confusion, I made some short videos showing how to do this with the 2009 program. I have links to them on my website.

Thanks for your help with this.

Kerry

Creating Accountant Review Files in QB 2009

From a client’s new bookkeeper (T):

I need the instructions as to what I do from inside quick books itself to create the zip file. I am sorry but I have never done this before.

Thank you,

 

My Reply:

What version of QB are you using (2007, 2008, 2009, etc)? There have been some changes in the process for sending Accountant Copies in the most recent versions; so I don't want to confuse you. 

 Kerry

T:

Kerry,
We upgraded from QB 2006 to QB 2009.

KMK:

Thanks for the update on the QB version you are now using.  The process for sending accountant's review copies of QB files was actually changed  quite a bit between the 2006 and 2009 programs.  There are now two main  ways to do it.
 
I am going to try to use a new software tool to make some little mini  videos on how to do this, which will hopefully be easier to follow than 
a written description.  I will send those on to you as soon as they are  done.

 Kerry

 
T:

Kerry,
Thanks for your help.  I will get the information to you as soon as you send me the videos.  Thank you so much.

KMK:

I've created and uploaded short videos showing the two ways how to create a QBX file in the QB 2009 program to send to me.

The first is the Save File function which is when you are going to send me the file yourself as an email attachment, an upload to my online storage service, or by copying onto a CD or flash drive.  The video can be found here.  

The second is the new feature that Intuit has, allowing you to send me the QBX file directly from within the program via their online storage service.  This doesn't work well if you have a very large file and/or slow internet service.  The video can be found here. 

I hope these are helpful. I will also be posting these to my QB blog and to my website.

Let me know if you have any problems or questions.

Kerry

 

Quicken or QB with online banking

From a client:

Subject: Quicken

Does Kerry do any taxes for people still using Quicken?  First Federal Bank has where you can download your bankstatements to Quicken but not Quickbooks.  So I have been meaning to ask about trying to use Quicken again in place of Quickbooks. 

My reply:

I used to use the online bank interface with Quicken for my accounts; so I have some experience in knowing when it makes sense and when it doesn't.

If you are going to enter all of your info into Quicken manually and use the online interface to match everything up, that will actually be a waste of time and money if the banks still charge extra for that service.  A lot of the times when this is done, the data from the bank doesn't match exactly with what you have entered in the Quicken file, so it enters the unmatched transactions as brand new entries, giving you a lot of duplicates that you then need to clean up.
If you don't want to print checks from your computer or enter your transactions yourself as you go, using the online banking interface to have the items imported into your Quicken file might make some sense. You will still need to code each entry with the proper accounts and classes, but it would save you a little time.

If you just want to check your entries against what has cleared the bank, you don't need to use the special Quicken interface.  That is what I do with our Regions and First Federal accounts.  I can see the current status of the accounts online for no additional charge and then match them up with what I have entered into our QuickBooks files.  That allows me to reconcile the bank accounts much more frequently than just once a month with a paper bank statement.

If you want to use Quicken to import transactions into your file, that would be fine with me.  You can then send me the data files.  I am no longer using Quicken, so I will probably import your data into QuickBooks in order to work with it for your tax returns.  However, if this works for you and other clients do the same thing, I may even buy myself a new copy of the latest version of Quicken and work with your data that way.
Good luck.  I hope this helps.

Kerry

 

 

Entering bank account interest...

Q:

Subject: Bank Dividends

I am trying to add in a checking acct dividend that you would receive monthly from your bank.  Do you know how I would add this to my Quickbooks? I am from the US...I think they're a rules in how this should be done.

Help!!!

 

A:

You are actually referring to Interest income; not dividends.

I can easily think of at least three ways to enter interest income into QB.

1.  You can use a General Journal entry with a debit to the bank account and a credit to the interest income account.

2.  You can enter it with the Deposit window.

3.  While you do the bank account reconciliation, there is a place to enter the interest income, right below where you enter the service charges.


Either of those methods will achieve what you need. Just make sure you use the exact same date for the entry as the bank is showing so that your books will match up with the bank's.  FWIW, I use #3 for our accounts.

Good luck.  I hope this helps.

Kerry Kerstetter

 

 

 

New QB for a new computer?

From a client:

Subject: Computer

My laptop is dying. Should I get a new Quickbooks on the new computer?

My Reply:

According to my files, you have been using the QB 2003 program.  Technically, if you still have the original program disc, you can install it on your new computer.  The problem will be in updating it for maintenance releases that were issued after the original program CD.  Intuit doesn't provide any official support for any version of QB that is over three years old.  Support for the 2006 program is expiring in May 2009.

That means that this would probably be a good time for you to upgrade to the newest version of the program, which is 2009.  Your data can be rolled over into this new version without losing anything.  
You should actually like the newer version of QB better than the 2003 program.  It includes a very handy way to send me QBX files directly from within the program, using an Intuit online file storage service that is better integrated with the program than the one I use.

Good luck. Let me know if you have any problems or questions.

Kerry

Follow-Up:

Thanks. I will probably do that.

 

Moving from Quicken to QB

Q:

Subject: Data Transfer - Quicken to QB

Dear Kerry – I have Quicken back-up files but no longer have Quicken software. How do I transfer those back-ups to QB, please?

I hope you can help!

Kind regards

A:

It's been a while since I have worked directly with Quicken files. However, one of my big problems with that program was the fact that its backup function pretty much consisted of just making regular size copies of the multiple data files that are used by the program instead of a compressed file that could be stored and transferred much more efficiently, as has always been the case for QuickBooks.

This means that your Quicken backup files should be just as accessible to the QuickBooks conversion utility as the normal files would be. As long as you are working with a version of the QB program that is as current as the Quicken program, going into File - Import - Convert From Quicken should work for you. For example, if the Quicken data had been created using the Quicken 2005 program, you should be able to convert that data into QB by using the QB 2005, 2006, 2007, 2008 or 2009 program.

I hope this helps. Good luck.

Kerry Kerstetter

Follow-Up:

Dear Kerry - Thank you very much for getting back to me. It was a bit of a leap of faith that I got in touch with you (details from your website!) and I didn't really expect a response. I'm really pleased and grateful that you took the time and trouble to think about my problem and give me the benefit of your experience.

In the meantime, I found my Quicken software and just reloaded it. However, the day is probably not too far away when we'll move to QB - and your advice will be very useful then.

Thanks again and best wishes from Scotland.

Compressing QB Files

Q:

Subject:  QB COMPRESS FILE

Hi Tax Guru – thanks for the info.

But……my regular file is 21 MB – when I create a portable file 16 MB and even an accountants copy only goes down to 16 MB.

And believe me – my company is pretty small – neither my accountant nor my bookkeeper have any suggestions.

Any other ideas – maybe something is set up incorrectly?

The last time I created a portable it went through e-mail at 16 MB – it’s not going through any more.

Thanks

A:

That is very strange.  I have always seen the QBM and QBX files come out at about a fifth the size of the QBW files.

What version of the QB program are you using?  Make sure it has been updated to the most current maintenance release.  If your program version is over three years old, you may also want to consider upgrading to a newer one.

I have seen clients squeeze even QBX files down to a little smaller size by zipping them, so you may want to give that a try.  The zip program should be able to shrink the file down even more.

Good luck.  I hope this helps a little.

Kerry Kerstetter

Follow-Up:

Hmm - I'll run and see if I can update my version - but it's 2007 premier.

 

Using Older QB Programs

Q:

Subject:  Quickbooks

Kerry,

My bookkeeper at the C21 was talking to QB support the other day.  They said the the 2006 version would quit working completely in the near future and recommended upgrading to the 2009 version.  Do you have any knowledge of this?  Do you recommend the 2009 version? 

Thanks a bunch,

A:

Your bookkeeper misunderstood the situation.  The QB programs will work forever.  I have several clients still using the 2001 and 2002 versions just fine.
Intuit doesn't like the fact that people are holding on to their QB programs for several years and not buying their new versions as often as they would like. In order to motivate more upgrades, a few years ago, Intuit started a sunset program, where they announced that they will only provide technical support for the most recent three versions.  That means, as of the middle of April this year, they will only answer technical questions about the 2007, 2008 and 2009 programs.  The earlier programs will continue to work just as they did before.

I don't do any payroll work, but I do understand that Intuit doesn't allow its built-in payroll for earlier versions of the QB program to be updated after a certain number of years; so that may be a motivator to upgrade to a newer version of the program if you are using QB for payroll.  If you are just doing bookkeeping, your 2006 will continue to work for several more years.

I currently have about a dozen versions of QB installed on my computers in order to maintain compatibility with client data files.  I have heard that some bookkeepers don't like the hassles of maintaining so many versions simultaneously, so they require their clients to upgrade to whatever version the bookkeepers are using.
I do have some clients who upgrade every year on their own, which is fine, but not required.  Whether you want to move to a newer version is up to you.  You won't lose any data in the transition to a newer version of the program; but you can't later roll it back to be usable in an older version of the program.
I hope this helps explain this issue for you.

Kerry

 

Quicken Reports

Q:

Subject: Quicken

Good afternoon Mr. Kerstetter.

I am a QB Pro Advisor but am not that familiar with Quicken.  I have a client that just began using Quicken, but when I was talking to her, she could not find the Reports tool bar,  I am truly embarrassed to ask, which way do you print the p&l and the balance sheet from Quicken?

A:

I recall that printing reports in Quicken was always very intuitive, much like in QuickBooks.

I don't actually use Quicken any more, but I do have the 2003 program installed on one of my old computers.  I checked and see that there is an item called "Reports" on the top menu line.  That drops down to different categories of reports.  The P&L is under the "Cash Flow" section and is actually called "Income/Expense."

I hope this helps.  You may want to explain to your clients the benefits of using QuickBooks instead of Quicken; especially the ability to more easily exchange data files with you.

Good luck.

Kerry Kerstetter

 

Sending QB files to your CPA

Q:

Subject:  emailing Quick Books

Hi karen, I found you on line. What are the simple steps of emailing quick books to my cpa?

Please detail step by step, I did not find on your web page. Thank you,

 

A:

I have this page of instructions for my clients on my website.  

You should check with your CPA as to how s/he prefers you to send large files and which type of file s/he wants you to send.

Good luck.

Kerry Kerstetter

Follow-Up:

Thank you so much, happy new year!!

 

 

Lost Passwords

From a client’s bookkeeper:

Dear Kerry,
 
I do hope you can help me, I have lost the password for the client’s books ! I know that the last time I up loaded it to you I included it on the message that accompanied it. I really would appreciate it if you would look it up on your system. If I can get it again, this will never happen again! It has been along time since I worked on the file. We  are working on the data entry for the year end for 2008
 
Thank you so much for your Time

Dear Kerry,
 
Eureka! I found it! Thank you for your time. I will get started on all that I have to do.
 
Thanks Again

My reply:

I'm glad you found your password.

If you are going to be working with a lot of people's QB files, there is a very handy program available to uncover passwords in QB files that I have been using at last once every few weeks for the past several years when clients either forget to tell me the password or tell me the wrong one.  The first thing I do when I open a file with a password is to remove it from my copy because they are a nuisance I prefer to avoid.

You can order it from PassWare at their website.

Good luck.

Kerry

 

 

More QB 2009 Info

Intuit has another new page describing the new features of QB 2009, plus an online test drive.

 

QB 2009 Features

Intuit has publicly released a lot of details on the new features to be included in the QB 2009 programs.

As has been the case every year, if you are considering buying the latest QB program, you should hold off and wait a few more weeks to get the more state of the art 2009 version instead of starting off a year behind the times with the 2008 program.

 

QuickBooks 2009 New Features and Improvements – Courtesy of the less famous NBA, the National Bookkeepers Association. 

Actually, I have been beta testing the Enterprise edition of QB 2009 for the past few months, but have honored the confidentiality agreement and not discussed its features on any of my websites. 

 

 

Date Warnings

Q:

Subject: Question

Kerry, if you’re willing to give us an answer to this, we’d be grateful! We have Quicken 2006. Our bookkeeper, who uses our program, is asking if it is possible to have Quicken prevent or give a warning if, by mistake, she makes an entry with last year’s date. Is that an available option?

Thanks very much,

A:

Because QuickBooks is such a better program, I haven't been using Quicken for a long time. The most recent version I have on any of my computers is Quicken 2003. I just checked the settings available in it and I found the ability to check a box in the Miscellaneous tab of the Register options under Preferences to Notify When Entering Out-of-Date transactions.


(Click on image for full size)



(Click on image for full size)

Checking the Help description of this, we see the following:

Notify options
When Recording Out of Date Transactions
Select this to be warned when you're about to record a transaction for a different year.

I'm sure there is a similar selection in the later versions of Quicken, such as 2006.

In QuickBooks, there is an option to be notified of any transaction being posted that is more than a selectable certain number of days prior to or after the current date.


(Click on image for full size)

Good luck. I hope this helps.

Kerry Kerstetter

Follow-Up:

Thanks very much, Kerry. You led me to what I needed!

Updated Website Info

I have updated my website page on how to send me QB data files to include:

(1) Info on the new feature in QB 2008 that allows you to send your QBX file directly from the program to me via a free online Intuit storage service:


(Click on image for full size)


(2) A reminder that clients need to review the financial statements for the tax period before sending me the data files. Too often, clients assume everything is perfectly done just because they have a bookkeeper posting their info and then I have to spend hours of expensive billable time going over everything with them. Catching the obvious mistakes ahead of time will save a lot of time and money in regard to the tax return preparation.

Using QuickBooks with Investments – Interesting article from Intuit’s ProConnection.

Accountant's Copy Rules for QuickBooks 2008 – You can download some guides here from CPA911 on the newest changes to the Accountant’s Copy function.  This is the part of QB that seems to change the most from year to year, sometimes getting better and sometimes worse.

 

Working with QBX files

Q:

Subject: Quick Question

Hi Kerry,

I understand you are probably swamped. I downloaded a free version of Quickbooks. My mother sent me her file with qbx. extension and I cannot open it on my program. I'm kind of panicking because she deleted her original copy on her friend's computer and even removed the program. (She assumed the file she sent would be safe in my hands & on my computer).

 

I can't figure out how to open it for her to do her taxes!!!

 

Any suggestions? I've spent hours for answers on the internet.

 

A:

QBX files are special versions that clients send us to work on while they continue to work on their QBW copies.  There is a sub-menu under the main File menu to access the commands to open the QBX file and convert it to a QBA version that can be worked on.

I'm a little confused as to which version of QB you have.  The only free downloadable version I am aware of is the Simple Start that is not really a full functioned QB program.  It's been a few years since I tested Simple Start; but I don't think it has the ability to work with QBX and QBA files.

If that is the case, you will need a version of the regular QB program that is at least as new as the one your mother used.  For example, if hers was the QB 2005 program, you will need to use QB 2005, 2006, 2007 or 2008.  You won't be able to use an older version of QB to open that data file.  You can either buy your own copy of the program or install your mother's copy on your computer, if she has her original program disc with its installation codes.

Deleting her original QBW file was not a good move. Luckily, the QB 2007 and 2008 programs have a utility built in that allows QBA files to be converted to normal QBW files.  This wasn't possible with any QB program before the 2007 version.

I hope this helps. Good luck.

Kerry Kerstetter

 

Follow-Up:

Thank you so much for taking the time to respond. That is the problem. I don't have the full program - it is the free Simple Start. Yikes, looks like I have to buy one!

 

Thanks again. Much appreciated!

 

 

Importing Quicken data into QuickBooks

Q-1:

Subject: Quicken importing into Quickbooks

Kerry,

I found you information online and it sounds like you are very well versed in these applications.  I got Quicken in hopes I can enter information into it, then import it into Quickbooks so it's in one place.  Can you please let me know how to do this?  I am not well versed in these applications or with keeping books so I can only imagine I will need to turn it over to someone soon anyway, but I want to at least get the information into Quickbooks successfully before hand.

Sincerely,

A-1:

Every version of QuickBooks that I have seen has a built in feature to import Quicken data.  I have done it on several occasions, so I know that it works quite well.

Here is the brief overview from inside the latest QB program:

"You can convert to QuickBooks directly from Quicken 98-2008 and Quicken Home and Business 98-2008. Older versions of Quicken require a preliminary conversion before this one.

The conversion copies your Quicken data to a new QuickBooks company file, leaving your original Quicken data file unchanged for continued use. After converting your Quicken file, you will have two sets of data: your original, unchanged Quicken file and your new QuickBooks company file."

One thing I have encountered is the fact that the version of QB that you use for the conversion has to be at least as current as the version of Quicken that prepared the data.  For example, if you have data produced under Quicken 2005, you can use QB 2005, 2006, 2007 or 2008 to convert the data into QB format.  You cannot use QB 2004 or any earlier version.

This sets up the converted Quicken data into a new QB data file.  You can't import Quicken data into an existing QB file. This means that you can basically do this function once.  If you are for some reason planning to continuously enter your ongoing transactions into Quicken and then import them into QB from there, that is a flawed strategy and won't work.  Once you have converted your Quicken data into a new QB data file, you should then enter all future transactions directly into QuickBooks and stop using Quicken.

Good luck.

I hope this has helped.

Kerry Kerstetter

Q-2:

Kerry,

Thanks very much for the response and info.  It looks like Quicken will not work and we downloaded software that will convert IIF to Excel so that can be imported into QB.
The whole thing is to be able to import transactions into an existing QB file / account.  Is it possible with any application using a conversion or is this a futile quest?

If you are available by phone I would love to take a minute to explain what we're trying to do to see if that's something you might be able to help with / be a good fit for.  It's harder to explain in email especially when I don't understand the jargon very well and haven't worked with the applications.  My colleague does and has so it would be awesome to have you two talk so see if we might need your services.  I would be happy to call you at a convenient time or you're welcome to call me.

Thanks,

Jon

A-2:

Due to my huge backlog, I haven't been able to accept any new clients for the past few years.

On my website page with QB Resources, I have links to some companies that sell file transfer utilities for QB files.

Karl Irvin's: www.q2q.us/index.htm

Big Red Consulting: www.bigredconsulting.com

You might find what you need there.

Good luck.

Kerry Kerstetter

 

 

 

Beware of QB Clean Up Function

I routinely request my clients and their bookkeepers to clean up their QB data before sending it to me to use for their tax returns. I had a shocker a few days ago while reviewing the data file for a client who had recently switched to the QB 2008 program and had sent me his file to use for his 2005 1040.

I sent him the following email:

I downloaded that newest QBX file and tried to set up the main reports I need for the 2005 tax returns. Unfortunately, I wasn't able to get the reports that I need, especially the P&L with columns by Class.

I'm not sure if there was a miscommunication in my general advice to clean up the data files before sending them to me, or what happened. I actually wasn't aware of this change in the program, but it looks like Intuit recently changed the terminology for condensing large data files from the long used "Archiving" to the new term "Clean Up." It appears that you or someone ran this new Clean-Up feature on your data file and it removed all of the details for the 2005 transactions, including all of the class postings. At first, I thought you had just forgotten to include classes in your postings, until I figured out what had happened. I will have to start using a different term than "Clean Up" because I definitely do not want anyone to use that specific function from inside the QB program again. It is very important to retain all of the details; not wipe them out.

Fortunately, I had a copy of the data file that you had sent me back in September from the QB 2006 program. I verified that the totals for 2005 match those in the most recent file, but that older file has all of the details intact for 2005; so I have been using that to assemble the reports for these tax returns.

I created the following screenshot as a warning:

(Click on image for full size)

Software for Realtors

Q:

Subject: Love your website!

Hi Kerry,

I am a real estate broker and in need of a bookkeeping program.  Any thoughts about what is best for my business?

THANKS!

 

A:

Almost all of my clients, most of whom are Realtors, are functioning quite well with QuickBooks.

Check out my QB info on my website.   

Good luck.

Kerry Kerstetter

 

Follow-Up:

Many Thanks!

 

 

 

QuickBooks Savings Voucher

Download this special pdf voucher for savings of up to 20% between now and March 31, 2008.

 

Credit card interest charges

When a client who uses QB sent me her tax info, she had a separate hand prepared list of credit card interest charges for the year with the following note.

I had to add up interest on each statement since credit cards are no longer sending out interest paid at year end.

I wrote this back to her:

You also need to learn how to enter credit card charges and how to reconcile the QB accounts with the monthly credit card statements.  That way, all of the interest charges will be picked up during the year.  It really doesn't matter that many credit card companies don't automatically provide interest paid details at the end of the year if each of the monthly statements has been reconciled through your QB.

  

  

Discounts on QuickBooks Supplies

As a QuickBooks Pro Advisor, I just received a flyer in the mail with coupons to give to clients and readers to receive a 20% discount on QuickBooks checks and supplies.  You don’t need the actual coupons.  You can get the discount by calling Intuit at 1–800–433–8810 and mention Special Offer Code C39741 or order online at:
www.IntuitMarket.com/C39741

This deal expires 12/31/08.

 

Scared of using Quicken 2008...

Q-1:

Subject: Using Multiple Versions of QuickBooks On One Computer?

I just Googled your reply to this question--  except my query was about using 2 versions of Quicken ('04 & '08) on the same computer.

Does your answer apply to these two versions of QUICKEN as well? 

Since I'm not local, and not lucky enough to be your client, I won't impose on your time for details: I'll be satisfied with a simple "Yes", "No", or "I don't know" answer to my question. 

(If "Yes" I'll proceed to do as you suggested with QB, and install Quicken 2008 in its own separate directory as a new file that starts with Jan.1 '08 , leaving my already-installed but no longer Quicken-supported Quicken 2004 version as an archive that dates back to 1994.)

Thanks for taking your time.

A-1:

Just as with QuickBooks, you can simultaneously have multiple versions of Quicken on the same computer, each in its own separate folder.  I used to do that when most of my clients used Quicken, before the QB program improved to the point that I moved everyone over.

I'm not clear as to your objective for having two simultaneous versions.  The only reason I did so, and still do for the dozen or so versions of QB, is so that I can work on other persons' data and be able to send the files back to them to continue to use in their version.  For data files that I have for our companies, I always roll them forward into the most current version of the program.

In your case, if your objective is to have a separate data file for your 1994-2007 data and a new smaller one for 2008 and on, there is really no need to have both Quicken 2004 and Quicken 2008 installed.  I would roll the old data file over into the Quicken 2008 program so that it will be accessible via it.  I would then start up a band new data file for your 2008 and on data.  That will allow you to jump back and forth between the old file and new file from within the Quicken 2008 program 

Of course, you can run both the 2004  and 2008 programs on your computer if there is some other reason, such as the e need to share your data file with someone else who only has the 2004 program.

I hope this helps and isn't too confusing for you.

Kerry Kerstetter

Q-2:

Thanks so much for your detailed answer; it was very helpful, and I appreciate your taking the time.

RE: ".. not clear as to your objective for having two simultaneous versions." 
My intent is to prevent Intuit from wiping out 15 years of  financial records by replacing them with a dysfunctional upgrade that just doesn't work.

From the blogs, support and chat groups about Quicken, it's clear that that Intuit is unique in the amount of hatred and distrust it has generated in a community of customers who continue to use it anyway, despite complaints of greed-inspired buggy updates, crashes and lack of meaningful support.

I've used Quicken since its first DOS iteration, and have been limping along for the past few years with v. 2004, crippled by Intuit's "sunset" policy to enforce upgrading.

Reading thru the blogs I discovered many complaints that Qkn 2008 doesn't work right. Even worse, v.2008 deletes the old version in the upgrade process.So, my intent is to keep my options open by keeping the old version fully functional while testing out v.2008 as a new user.

Unfortunately, in trying to do this over the weekend, I learned that the only way I could keep Q2008 from hunting down and overtaking the old Q2004 files into the update was to keep the 04 files from being found  ... by putting the letter Z in front of crucial 04 files (example: Zqw.exe.) 

So,  I now have a new install of Quicken 2008 in a different directory, and so far it seems to be working. But I doubt that the stand-alone Q2004 program will be workable on the same computer just by erasing the Zss. Well, that's OK, I have fully functional installations of the old 2004 Quicken on a couple of different laptops that I could go back to, if/when Q2008 suffers a meltdown. To be safe, I may start over: by uninstalling both  the 04 & 08 versions of Quicken from my main computer, then using the just-purchased 2008 Quicken Deluxe download to install it as a new program.
Sincerely,

A-2:

Thanks for the additional info on the Quicken programs.  I really haven't been following Quicken much in the past few years as I've focused on QuickBooks.

There was a similar problem with the QuickBooks 2005 program.  It was a big mess and I really have problems when I have to use it for the few clients still using it.  When I discovered the QB05 problems, I advised everyone to hold off buying it and to use the QB04 program instead if they needed a newer version.

In your case, you may want to consider buying a copy of the Quicken 2007 program, which you can probably find for next to nothing on eBay and using that until its support vanishes. 

Good luck.

Kerry Kerstetter

Follow-Up:

Thanks, Kerry

 

I'll do that if v.2008 turns into a problem. Meanwhile I'm muddling thru with the aid of good input from other users.

 

 

 

Using Dollars + Euros

Q:

Subject: Invoicing in EUROs

 

Hi Kerry,

 

I'm supposed to start invoicing my client in EUROs instead of USD. I've noticed that QB doesn't support that in any straight way. Do you have any recommendations how to handle that?

 

thanks

A:

That is a tricky situation.  I've been checking out the message boards around the web to see if there is a way to handle multiple currencies in the same QB data file.  I've seen some mention of multiple currency capabilities in the UK version of QB, but none in the USA version.  I've sent a comment to the official Intuit QuickBooks feedback folks to see what they suggest for a company having to work with more than one currency.  I'll let you know what they say.

I've been trying to think of a way for you to work with this and the only thing I can come up with is to have two separate QBW files; one for the banking checks and deposits that I will use for the tax returns, and another for billing your customers if you like how QB does that.  Since your taxes are on the Cash basis of accounting, the invoices sent out really aren't relevant for tax purposes.  We just need to work with how much has been actually received.  We will obviously need to work with one currency for this, which may mean manual conversions to US dollars for money that you keep in Euros.

You also have the option to do your invoicing with an alternative program that is more suited to Euros.  I understand that such things as VAT are not handled well by QB, so there is probably a program that is more capable of billing for that.  While I have tried to use the QB invoicing for my CPA work so as to better synch up with my bookkeeping, I have never liked how it's handled; so I use a completely separate program, TimeSlips, for all of our billing and then post the actual money received into QB.  It's not as efficient as having everything inside one software package; but it's really not that much more work with the average of around one client check received each day.  Your volume of payments received shouldn't be so high as to make it an unworkable burden.

I hope this helps at least a little bit.  If I come up with any more ideas, I'll pass them along. 

Happy New Year; which you've already beat us to.

Kerry

 

 

 

Deals on New QuickBooks Software

As I’ve often said, it is possible to save quite a bit of money on the more expensive software, such as QuickBooks and Microsoft Office, by buying them from eBay sellers.  I have saved substantial amounts of money that way over the past several years, including some times where I bought an earlier version of a program in order to be able to buy the newest version from the manufacturer at their much lower upgrade price.

The most expensive version of QuickBooks is their heavy duty Enterprise Solutions (ES), which used to come only in a 10 user version that cost $3,500.  I have been using ES for our books here since it first came out, but only because I received a free copy as part of my ProAdvisor membership. For accountants who are not ProAdvisors and who have clients using ES, it could get expensive being able to support them.  Luckily, Intuit recently started expanding the flavors of ES, offering versions for 5, 10, 15 and 20 simultaneous users, costing as much as $9,000 plus another $2,000 per year for their service plan. 

The best aspect to this product line expansion, from a purely selfish sense, has been the introduction of a special single user version for professional accountants that allows us to work with client files from any of the other larger programs.  It retails for only $849.   

I am discussing this now for an even more selfish reason.  As a beta tester for the 2008 program, Intuit sent me a free copy of this special accountant version of the newest Enterprise Solutions program.  Since I already had a copy as part of my ProAdvisor update, this redundant copy has been put up for sale on eBay by Sherry at a huge discount off of the retail price.  The auction expires next Sunday, January 6, 2008. 

 

Sending smaller data files

From a client:

Kerry, I have completed my books on last year, 2007 for our corporation. I purchased a winzip file to send compressed messages but I am having a difficult time useing it. I have someone coming to help me in the morning if that does not work I will copy to a disk and drive it up to Harrison tomorrow myself. I will let you know.

My reply:

There is no need to use WinZip for QuickBooks files.  We used to use that for Quicken files because that program had a terrible backup function.  QuickBooks has its own built in compression tool when you make Portable Company Files (QBM) or Accountant's Review (QBX) copies.

Go into the "File" menu, then to "Accountant's Copy", then "Client Activities", then "Create Accountant's Copy"

Save the QBX copy to a folder on your computer where you can remember its location.  Then either attach it to an email to me or upload it to my online service.

To send the file to me, or upload it to my online server, check out the instructions on my website. 

Good luck.

Kerry

From the client:

Kerry, I think I did what your inst. told me to do. If this is not correct please have Sherry let me know when we can get together on a phone call, and she can waik me through this process. At any rate thank you very much for all your help and info. Look forward to heraing from you.

I wrote back:

You sent the 15.3 mb full size QBW file. 

I will look it over.

Next time, please make either a Portable Company File (ending in QBM) or an Accountant's Review copy (ending in QBX).  Both of those are only about one tenth the size of the QBW, making for much faster uploading and downloading.

Thanks for your help with this.

Kerry

 

 

Intuit Secuity Alert

Q:

Subject: verification

 Hi,

 I haven't downloaded this yet as it didn't come directly to me from intuit.

 

www.Intuit.com/support/security/

 

Can you verify it's for real?  I am thinking it is...

 

A:

Surprisingly, I didn't receive that message myself.  I went to the Intuit website and it does look legit.

However, even though I have more Intuit programs installed on my computer than anyone I can think of, I am not planing to run this special patch from Intuit.  I do frequently run the Update function inside QuickBooks, as well as the Tuesday Microsoft patches via Windows Update; so I will let those patches take care of this issue.

If you're not experiencing any of those special problems with your QuickBooks, you should be able to bring everything the more natural way, as I am doing.

Thanks for checking with me before you accepted that Intuit patch.

Kerry

 

Follow-Up:

Thanks,

 

 

 

UPDATE:  I was just going through my incoming email backlog and found that I had actually received this security alert directly from Intuit on 12/11/07.

 

 

Accepting Faxed Checks

Q:

We have faxed a check to you guys for our tax prep fee for several years now.  I would like to be able to receive faxed checks from my out of state clients, but we, and our bank, don't know how to get set up to do that.  Is that something that our Quick Books Program can do for us?  We would really appreciate any help or direction you could give us about doing that.

Thank you,

A:

The ability to accept faxed checks to create new check drafts is just one of the various features that make the VersaCheck program a very handy tool.  I haven't had to buy any preprinted checks for any of our accounts for the last ten or so years.  I buy blank check stock from the same company that makes VersaCheck and use it to print up blank checks to hand prepare, as well as the check drafts.  It also comes with a driver that allows checks to be printed from QuickBooks right onto blank check stock. 

They also sell printers and toner with magnetic ink, but I have never used any of those.  I have always printed the checks and drafts on the same laser printer with regular toner that I use for all of my other printing and they clear the banks just fine. 

I actually had my first rejected check draft just a few weeks ago for a check a client had faxed in on an insurance company account.  All of the other check drafts drawn on banks all around the country have been accepted with no problem; so that was a fluke.

You can see more info and buy the programs via the company's website. 

While they have a growing number of versions of their program, I have been using their Gold one for the past six or seven years and it has been working perfectly.

Just like QuickBooks, there is a new version of VersaCheck released each year.  Also like QuickBooks, you don't need to buy the new ones and can make do with an older version for several years if you don't want the newest features.

Good luck.  I hope this helps.

Kerry

Follow-Up:

Kerry,

Thank you so much for the information.  The only program I had found info about was from a company called CheckWriter.  It looks like the VersaCheck program does substantially more than CheckWriter, and even costs less.  This looks like the product we've been needing.

Thanks again for your help and the information.

 

 

 

Multiple Years In QB Files

Q:

Subject: Quick Books

I seen your page on QB and I was wondering if you know how many years I can use my QB Pro 2007?

Simply Accounting stated on the box that it can save up to 7 years.  Is there any limits in QB2007?

Kindest Regards,

A:

None of the regular QuickBooks programs has ever had any limits on how many years' data you could keep in a single company file.  It's just a matter of your hard disk space.  I actually prefer to keep as many years as possible in the same file for easier reporting and comparisons of multiple year data.  I currently have the entire history of our first corporation, covering from 1994 to the present, in a single QBW company file and have every intention of letting it accumulate forever. 

I encourage all of our clients to do likewise.  I frequently need to look up older data.  This has especially been useful while preparing 2006 tax returns and locating the 2003 through 2006 phone bill charges for the special long distance tax credit.  Clients who didn't have those back years in their QB files had to accept the measly standard $30 to $40 credit, while those whose data extended back often received credits of over $1,000.

I have no idea of the space limitations present in the two crappy versions of QuickBooks that I advise against using, Simple Start and QuickBooks Online; but wouldn't be the least bit surprised to see limitations in both of them, especially the online version, where your files are stored on the Intuit servers and you have no control over how many years they choose to hold onto.

All of the desktop versions of QuickBooks, from the first one to the current 2008 versions, allow you to accumulate an unlimited number of years of data in a single company file.

I hope this helps.

Good luck.

Kerry Kerstetter

 

 

 

Saving a QBX File

Q:

Subject: QBX File 06

 

Kerry I created a QBX file as requested but at the end it asks you to save it and I did but I don't know were it is now to send it to you. So were does it go after it is saved? Sorry.

 

A:

You should set up a folder on your hard drive with a name such as c:\QBBackup or SendtoCPA.  When the program asks where to save the QBX file, browse to that folder.

When e-mailing that QBX file, browse to the folder while in your email program to locate  it.

Or you can upload the file to my online service per the instructions on my website. 

Good luck.  I hope this helps.

Kerry

 

 

New free QB 2008 guides

Courtesy of the latest Intuit Pro Connection newsletter, we can download the following free PDF files:

Sharing Data in QuickBooks 2008

Described here

PDF File  (36 pages)

 

Official Guides for:

Enterprise Solutions 8.0  (593 pages)

Premier 2008  (593 pages)  

 

Posting Stock Sales In QB

Q:

Subject: stock sales on quickbooks

 

I read what you wrote regarding tracking stock investments in Quickbooks.  You make it sound very easy to record a stock sale and purchase for that matter.  And I am sure it is.  However, for the weak at heart or maybe the mind, I don’t get it.

 

For example,  say I buy 100 shares of IBM for $50 in June 2000.  I should have recorded that under Stock Account:  IBM  Other Asset          Correct?

 

Then I sell it in June 2007 for $100.  I should record it under Stock Account:  IBM  Income account  ?  and then I don’t understand how I transfer the cost of the stock, the $5000 to a Cost of assets Sold contra-income account.  Is that a journal entry?  Don’t get any of that.

 

If you could make it even easier for someone like me, I would be very appreciative.

 

Thank you,

A:

You are on the right track; and I'd be glad to elaborate in more detail.

First, you need to understand that there is no one perfect way to do this and any game-plan you use should be reviewed with your personal professional tax advisor to ensure that you are in synch with what works best for his/her needs in regard to tax planning and tax return preparation work.  My comments represent how I prefer to see these transactions entered to make it easier for me to have the critical data I need to prepare my clients' tax returns as efficiently as possible.

You should have an Other Asset account called something like "Stocks."  While some people do set up a sub-account for each stock they buy, I find that to be overkill that ends up making the chart of accounts and balance sheet too large and unwieldy.  One main account will work fine as long as you are thorough in the info you enter for each transaction.  For purchases, be sure the proper date is used for the QB entry and the Memo section is filled in with the name of the stock and the number of shares.

What many people overlook is reinvested dividends when keeping track of their stock investments.  To properly do this, you need to use the General Journal to enter the dividends as a credit to Dividend Income and a debit to the Stocks asset account.  Be sure to fill in the memo sections of both sides of the entry to record the relevant details, including name of the stock and number of shares purchased.  With most DRiPs (dividend reinvestment plans), the new purchases are fractional shares; so you need to be careful when entering this.

For the sale of stocks, you do use the General Journal to transfer the cost of the shares sold from the Stocks asset account to the  AssetCost contra-income account.  Again, be sure the date of the entry matches the sale date and that you fill in the memo section with all of the relevant data, including name of stock and number of shares.  If the number of shares sold is different than any single purchase, you will need to make an entry for each lot sold so you can keep track of which sales are long term (over 12 months holding) and short term (under 12 months).

I hope this helps you better understand how to record stocks in QuickBooks.  These comments are by necessity general in nature.  Your personal professional tax advisor should be able to give you more specific tips for your unique circumstances.

Good luck.

Kerry Kerstetter

 

 

 

Reconciliations in QB 2008

From a client using QB 2007:

Hi Kerry,

 

Any insight on the reconciliation changes in the 2008 version yet?

 

Thank you, sir!

 

My Reply:

I haven't had a chance to experiment with the 2008 QB program's reconciliation capabilities yet.  After I get some more tax returns finished, I'm hoping to be able to do more testing on it.  From the release notes from Intuit, I'm not really expecting much change from your perspective because they seem to have focused more attention on making it easier for us to perform reconciliations on the Accountant's Review copies of files that we receive from clients rather than the other way around.

I'll let you know how it looks.

Kerry