Introduction

As stated in Chapter 2 – Accountant Tools, QuickBooks Accountant is a Cloud-based application that allows accounting firms to access, store, manage, and process their bookkeeping, payroll, accounting, business analysis, and tax preparation at any time and from anywhere with an Internet connected device. The features of QuickBooks Accountant also allow accounting firms to access, store, manage, and process their clients’ bookkeeping, payroll, accounting, business analysis, and tax preparation.

Accounting Analytics uses QuickBooks Accountant to:

1. Perform our bookkeeping, payroll, accounting, business analysis, and tax preparation
2. Manage, support, and supervise our team (professional staff of bookkeepers, payroll personnel, accountants, business analysts, and tax preparers)
3. Manage, support, and supervise our clients’ bookkeepers
4. Perform our clients’ accounting, business analysis, and tax preparation

This chapter is for accountants who use QuickBooks Accountant to manage, support, and supervise their clients’ bookkeepers.

The chapter coincides with our Bookkeeping with QuickBooks Online Guide. The Guide is for our clients’ bookkeepers and establishes our Accounting System’s Bookkeeping Process. Accountants who manage, support, and supervise their clients’ bookkeepers should be well acquainted with the Bookkeeping with QuickBooks Online Guide.

Our bookkeeping services enable accountants to help their clients:

1. Efficiently, accurately, and productively perform bookkeeping
2. Provide timely, relevant, and reliable financial information
3. Increase their financial position, profit, and cash flow

Bookkeeping

Bookkeeping is the day-to-day gathering, recording, and classifying of financial transactions, such as sales and receipts and purchases and payments, and is the foundation of an accounting system.

Bookkeeping is critical to cash flow because bookkeeping controls the timing of receipts and payments. Effective cash flow management requires that receipts be received as soon as possible, and payments be paid as late as possible, but on time to maintain vendor relations. Bookkeeping also determines whether your clients’ businesses information is timely, relevant, and reliable.

Our Bookkeeping Process increases your clients’ financial position, profit, and cash flow and is the foundation for timely, relevant, and reliable business information.

Who Should Perform the Bookkeeping?

As stated in Chapter 1 – Introduction: Accounting System, there are three people who can perform the bookkeeping for a business:  

1. Owner
2. Employee
3. Independent contractor bookkeeper

A business owner shouldn’t perform their own bookkeeping. They make better use of their time working on their business and not working in their business. The owner should delegate their bookkeeping to a trained, certified, and experienced employee or independent contractor bookkeeper.

In order to determine whether to delegate their bookkeeping to an employee, bookkeeper or accountant, a business owner should perform a cost-benefit analysis. A cost-benefit analysis is a process a business owner uses to analyze decisions. The owner sums the benefits of a situation or action and then subtracts the costs associated with taking that action.

If the business owner chooses to have an employee perform their bookkeeping, the owner should ensure the employee is properly trained, certified, experienced, supported, and supervised.

Intuit has a reputation for developing DIY (Do-it-yourself) applications such as Mint for personal budgeting, QuickBooks for bookkeeping, and TurboTax for tax preparation. Therefore, many business owners believe Intuit developed QuickBooks to replace their accountants. Thus, many QuickBooks users don’t have bookkeeping training, certification, experience, support, and supervision. In addition, many QuickBooks users don’t set up their QuickBooks company files correctly to provide business owners the timely, relevant, and reliable information they need to make good decisions.

Intuit developed QuickBooks to enable businesses to perform their bookkeeping with assistance from their accountants. That’s the relationship business owners and accountants should develop.

The person responsible for completing the bookkeeping responsibilities should be an employee or independent contractor bookkeeper.

Accounting Analytics Bookkeeping Process was developed based on this model. Therefore, our bookkeeping services include the following:

• Tools
• Setup
• Training
• Certification
• Support
• Supervision

Tools

The following tools are generally needed to set up a bookkeeping client on QuickBooks Online:

• QuickBooks Online
• QuickBooks Online Payments
• Company online bank account(s) compatible with QuickBooks Online
• Company credit card(s) (business credit card or personal credit card used only for business) compatible with QuickBooks
• Company one sheet, two-part voucher QuickBooks compatible checks

We communicate these tools to the prospective client in the Client Agreement after receiving and reviewing their Contact Information Form information.

The QuickBooks subscription (Simple Start, Essentials or Plus) is included with our bookkeeping services.

We perform the initial setup for QuickBooks Payments. However, the explanation of the merchant agreement disclosure must be disclosed to and accepted by the primary business owner.

To set up QuickBooks Payments, the following information must be obtained:

• Plan (Pay as You Go or Pay Monthly)
• Business name
• Email address
• Company type (sole proprietor, partnership, limited liability company, s corp, or c corp)
• Federal tax ID/EIN
• Line of business (Industry)
• QuickBooks Online Company ID
• Business street address (non PO Box)
• Business city, state, and zip code
• Business phone number
• Primary business owner name
• Primary business owner residential address
• Last 4 digits of primary business owner’s social security
• Primary business owner’s date of birth
• Bank routing number (where the money will be deposited)
• Bank account number (where the money will be deposited)

To access the client’s QuickBooks Company ID:

1. Select Go To QuickBooks, then the client
2. Simultaneously press the ctrl, alt and ? keys

Once the information is obtained, email the information to Ben Manning, Sales Consultant, Intuit at Benjamin_Manning@intuit.com.

Note: Clients receive a discount by subscribing through their QuickBooks ProAdvisor.

Setup

Bookkeeper Task

The bookkeeper’s setup task is to complete the Bookkeeping Information Form.

Accountant Tasks

The accountant’s setup tasks include:

1. Send New Client Welcome (onboarding) email to client
2. Request client to complete the Bookkeeping Information Form
3. Complete the QuickBooks Setup Checklist
4. Complete Historical Transactions Setup Checklist

Training

The bookkeeper completes the Bookkeeping with QuickBooks Online course by the Cutoff Date.

The course is included with our bookkeeping services.

Highly recommended, but optional training courses include:

• Accounting Fundamentals
• QuickBooks Online Fundamentals
• Accounting Principles

The recommended courses are available to the bookkeeper at a client discounted rate.

Certification

Bookkeeper obtains Accounting Analytics Bookkeeper Certification.

The certification is included with our bookkeeping services.

Highly recommended, but optional bookkeeper certifications include:

• NACPB Bookkeeping Certification
• NACPB QuickBooks Online Certification
• NACPB Accounting Certification

The certifications are available to the bookkeeper at a client discounted rate.

Support

The bookkeeper has the following support resources:  

• Bookkeeping with QuickBooks Online Guide
• Bookkeeper Dictionary
• Support Video Knowledge Base
• Services Team Member

The bookkeeper accesses the Bookkeeping with QuickBooks Online Guide, Bookkeeper Dictionary, and Support Video Knowledge Base in the Accounting Analytics’ website Clients Only portal.

The bookkeeper emails the Services Team Member using the email address provided by the Services Team Member in the New Client Welcome Email.

Supervision

The Services Team Member supervises the bookkeeper by completing the Monthly Bookkeeping Review Checklist and Bookkeeping Review Points Form.

Bookkeeping Services Workflow

The bookkeeping services workflow is as follows:

1. Services Team Leader Creates a New Bookkeeping Project
2. Services Team Member Sends New Client Welcome Email
3. Services Team Member Sends Bookkeeping Information Email
4. Bookkeeper Completes and Submits Bookkeeping Information Form
5. Services Team Member Reviews Bookkeeping Information Form
6. Services Team Member Completes QuickBooks Setup Checklist
7. Services Team Member Completes Historical Transactions Setup Checklist
8. Bookkeeper Begins Bookkeeping
9. Services Team Member Provides Bookkeeping Support
10. Services Team Member Completes Monthly Bookkeeping Review Checklist
11. Services Team Member Completes and Emails Bookkeeping Review Points Form
12. Bookkeeper “Clears” Each Bookkeeping Review Point
13. Services Team Member Verifies Bookkeeping Review Points are Cleared

Note: Steps 1 – 13 apply to new bookkeeping clients. Steps 9 – 13 apply to ongoing bookkeeping clients.

Step 1 – Services Team Leader Creates a New Bookkeeping Project

Services Team Leader creates a new bookkeeping project including:

1. Project name
2. Client
3. Due date
4. Assign Services Team Member

Add New Project

To create a new project and assign a team member:

1. Select Work from the left menu, then select Manage templates
2. On the Templates page, identify the template you need in the Custom templates or QuickStart templates list and select Create project from the Action column to open the Create project panel

This will open the Create project panel.

3. Enter a Project name
4. Select the client from the drop-down menu and enter the Due date
5. Select a team member from the Assigned to drop-down list
6. Verify any information or notes for your team in the Details field
7. Verify tasks and make changes, if necessary
8. Select Save

Step 2 – Services Team Member Sends New Client Welcome Email

Services Team Member sends New Client Welcome Email to client.

The New Client Welcome Email:

1. Introduces the Services Team Member
2. Provides the Services Team Member email contact information
3. Summarizes the onboarding steps the client can expect
4. The Services Team Member thanks the client for the opportunity to serve them

Step 3 – Services Team Member Sends Bookkeeping Information Email

Services Team Member sends Bookkeeping Information Email requesting client to access, complete and submit the Bookkeeping Information Form.

To access the Bookkeeping Information Email, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 4 – Bookkeeper Completes and Submits Bookkeeping Information Form

Bookkeeper accesses, completes, and submits Bookkeeping Information Form.

To access the Bookkeeping Information Form, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 5 – Services Team Member Reviews Bookkeeping Information Form

Services Team Member reviews Bookkeeping Information Form for completeness.

If not complete, Services Team Member emails client for missing information.

The work will not continue until the Bookkeeping Information Form is complete.

To access the Missing Client Information Email, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 6 – Services Team Member Completes QuickBooks Setup Checklist

Services Team Member completes QuickBooks Setup Checklist using Bookkeeping Information Form.

Note and accumulate any questions, comments, or documentation requests regarding the client’s QuickBooks setup until the setup is complete. Send one Setup Questions and Comments Email with all questions, comments, document requests, then edit the client’s company settings.

To access the QuickBooks Setup Checklist and Setup Questions and Comments Email, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 7 – Services Team Member Completes Historical Transactions Setup Checklist

Services Team Member completes Historical Transactions Setup Checklist for historical transactions between the Start Date and the last day of the previous month (Cutoff Date).

The Start Date is the starting point for financial records in QuickBooks. The Start Date is the last day of the previous tax year (generally December 31) or the first day a new company began operating this year.

The Cutoff Date is the ending point for the Services Team Member to create and record financial records in QuickBooks. The bookkeeper will start creating and recording financial records beginning the next day. The transactions recorded by the Services Team Member serve three purposes:

1. The Services Team Member has a working knowledge of the client’s company and transactions and is in a better position to support the bookkeeper
2. The financial records set an example for the bookkeeper to follow
3. The bookkeeper begins with timely, relevant, and reliable information

Note and accumulate any questions, comments, or document requests regarding the client’s historical transactions setup by month. Send one Historical Transactions Setup Information Email with questions, comments, or document requests for each month.  

To access the Historical Transactions Setup Checklist and Historical Transactions Setup Information Email, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 8 – Bookkeeper Begins Bookkeeping

The client’s bookkeeper begins the bookkeeping procedures presented in the Bookkeeping with QuickBooks Online Guide the day after the Cutoff Date.

1. Bookkeeper should have completed Bookkeeping with QuickBooks Online training
2. Bookkeeper refers to Bookkeeping with QuickBooks Online Guide‍
3. Bookkeeper refers to Bookkeeper Dictionary
4. Bookkeeper refers to Bookkeeper Support Video Knowledge Base

Step 9 – Services Team Member Provides Bookkeeping Support

Services Team Member provides bookkeeping support.

Bookkeeper emails Services Team Member for support after referring to Step 8. b. – d.

If support could have been answered in Step 8. b. – d., Services Team Member replies with the reference from Step 8. b. – d. Services Team Member trains bookkeeper to first rely on the support resources before emailing Services Team Member.

Step 10 – Services Team Member Completes Monthly Bookkeeping Review Checklist

Services Team Member completes the Monthly Bookkeeping Review Checklist. The monthly bookkeeping review identifies bookkeeping errors and omissions incurred during the month.

The monthly bookkeeping review serves three purposes:  

1. Assures the client’s business information is timely, relevant, and reliable
2. Enables the Services Team Member to complete the Bookkeeping Review Points Form
3. Enables the Services Team Member to perform the monthly accounting

To access the Monthly Bookkeeping Review Checklist, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 11 – Services Team Member Completes and Emails Bookkeeping Review Points Form

Services Team Member completes the Bookkeeping Review Points Form based on the Monthly Bookkeeping Review and emails to the bookkeeper. Bookkeeping review points communicate bookkeeping errors and omissions identified during the Monthly Bookkeeping Review.  

Bookkeeping review points serve two purposes:  

1. Assures the client’s business information is timely, relevant, and reliable
2. Trains the bookkeeper

Bookkeeping review points generally include:  

1. Instructive bookkeeping comments
2. Bookkeeping clarification questions
3. Bookkeeping errors and omissions
4. Instructions to correct the errors and omissions

Note: Some accountants correct the bookkeeper’s errors and omissions, such as reclassifications. In their minds it’s more efficient to fix the bookkeeper’s errors and omissions rather than take the time to communicate the errors and omissions to the bookkeeper. However, if the bookkeeper isn’t informed of the errors and omissions, they’ll keep making them and the accountant has to keep correcting them.

"If you give a person a fish, they’ll live for a day. If you teach a person how to fish, they’ll live for a lifetime."

To access the Bookkeeping Review Points Form, log in to Accounting Analytics Clients Only portal at accountinganalytics.com.

Step 12 – Bookkeeper “Clears” Each Bookkeeping Review Point

Bookkeeper opens the Bookkeeping Review Points Form and “clears” each review point by reading the comments, answering the questions, and correcting the errors and omissions. Bookkeeper emails the Services Team Member and informs them they have cleared the review points.

Step 13 – Services Team Member Verifies Bookkeeping Review Points are Cleared

Services Team Member reviews and verifies the bookkeeping review points are cleared.

Entering Historical Transactions

The financial records in QuickBooks aren’t accurate until all of the transactions that occurred between the Start Date and Cutoff Date are entered. In some cases, it may be necessary to enter some transactions that occurred before the Start Date. For example, uncleared bank transactions at the Start Date should be entered. The opening balance of a bank account is the balance as of the last bank statement, not the balance as of the Start Date. To roll forward that opening balance to the balance as of the Start Date, uncleared transactions should be recorded. We believe you should enter individual customer and vendor invoices outstanding as of the Start Date rather than a single amount due for the outstanding balance.

The order historical transactions are entered is important. For example, bank account transactions should be entered last because accounts payable, accounts receivable, and payroll all may affect the bank account (many of the cash transactions are recorded when payables, receivables, and payroll are recorded). Generally, if transactions are related, enter them in the order they occur. For example, a customer payment should be entered after the invoice to that customer has been recorded, otherwise QuickBooks is unable to apply the payment. Historical transactions should be entered in the following order: 

• Past purchases and accounts payable
• Past sales and accounts receivable
• Past payroll transactions
• Past bank transactions

Note: Enter accounts payable and accounts receivable transactions using the actual transaction dates on which they occurred.

Past Purchases and Accounts Payable

Accounts payable transactions can be entered before or after accounts receivable. However, to put reimbursable expenses from bills on historical invoices, it’s a good idea to enter accounts payable transactions first. For example, if the client wants to bill a customer for an expense and track the reimbursable expense as income, the expense needs to be entered first. After past purchases and accounts payable are entered from the Start Date to the Cutoff Date, the following data will be accurate:

• Records of billed expenses during the period
• Records of quantities and costs of inventory items purchased during the period (if inventory quantities are being tracked)
• Vendor balances as of the Cutoff Date
• Records of which historical bills are unpaid

To enter accounts payable transactions, clients will need copies of invoices received from vendors between the Start Date and Cutoff Date and records of payments to vendors made during that period. The information should be entered by following the instructions below.

Past Vendor Invoices

To enter past Vendor Invoices:

1. Select New to access the Create menu and click on Bill under Vendors
2. Enter each bill received from a vendor between the Start Date and Cutoff Date
3. Assign amounts to the correct expense accounts or enter the quantities and costs of items received

Past Vendor Credits

To enter past Vendor Credits:

1. Select New to access the Create menu and click on Vendor Credit under Vendors
2. Enter each vendor credit received from a vendor between the Start Date and Cutoff Date
3. Assign amounts to the correct expense accounts or enter the quantities and costs of items received

Past Payments

To enter past Payments:

1. Select New to access the Create menu and click on Pay Bills under Vendors
2. Record each bill payment made between the Start Date and Cutoff Date

If the past payment was made by check, be sure to uncheck the Print later box so QuickBooks will not reprint the check.  

QuickBooks allows clients to assign check numbers to checks generated in the Pay Bills window.

Past Purchase Orders

If inventory is tracked and purchase orders are used, any purchase orders issued since the Start Date that haven’t been received in full should be entered. This enables QuickBooks to update inventory balances and the inventory asset account automatically when inventory items subsequently are received against those purchase orders. Purchase orders received in full between the Start Date and Cutoff Date don’t need to be entered.

To record past Purchase Orders:

1. Select New to access the Create menu and click on Purchase Order under Vendor
2. Enter each purchase order written between the Start Date and Cutoff Date and enter the quantity on order for each item

QuickBooks Vendor Center

The "Vendor Center" stores information about the company's vendors, including contact information and transactions. Clients can add new vendors, edit a vendor's information, and add, view, or print vendor transactions. Clients can access the "Enter Bills" and "Pay Bills" windows from the "Vendor Center."

Past Sales and Accounts Receivable

Past sales and accounts receivable transactions occurring between the Start Date and Cutoff Date should be entered so the period's sales records will be complete. Past sales and accounts receivable transactions should be entered so customer balances and the sales tax liability as of the Cutoff Date are accurate.

To enter sales and accounts receivable transactions, clients will need records showing cash and credit sales made, credit memos written, payments received, and sales tax payments made between the Start Date and Cutoff Date. The information should be entered by following the instructions below.

Past Invoices

To enter past Invoices:

1. Select New to access the Create menu and click on Invoices under Customers
2. Enter each invoice written between the Start Date and Cutoff Date
3. Enter items in the "Product/Service" field so QuickBooks can track the sales income in the correct accounts

Products and services may need to be added to the "Product/Service" list as invoices are entered.

Past Statements

Many companies bill customers on a regular basis, for example accounting firms. These professional service firms usually issue monthly statements for their time. Any statements issued between the Start Date and Cutoff Date should be entered. However, QuickBooks doesn’t allow clients to add charges directly to a statement.

To enter past Statement Charges:

1. Select New to access the Create menu and click on Statement under Other
2. Complete and send the statement

Note: If the aging preference is set to age transactions by due date, make the Billed date the same as the Due date. For example, if a statement is prepared on October 15 and it’s due November 1, the bill date should be November 1 (due date), not October 15 (preparation date), as aging should not start until the statement is actually due.

Past Cash Sales

If sales aren’t tracked by customer/project or by service/products and sales tax is not collected, clients may simply enter cash sales as a deposit into the checking account. However, if clients track cash sales by customer/project or by service and/products, they’ll need to enter the sale in the "Enter Sales Receipts" window.

To enter past Cash Sales:

1. Select New to access the Create menu and click on Sales Receipt under Customers
2. Enter the quantities of each item sold for which payment was received at the time of sale

Past Returns

To enter past Returns:  

1. Select New to access the Create menu and click on Credit Memo under Customers
2. Enter each return written between the Start Date and Cutoff Date

Payments Received

To enter past Payments Received from Customers:

1. Select New to access the Create menu and click on Receive Payment under Customers
2. Enter all Customer payments received between the Start Date and Cutoff Date (other than cash sales entered in previous steps)

Past Deposits of Payments

If payments received from customers are posted to "undeposited funds," this additional step is needed to actually deposit the funds into the bank account.

To enter past Deposits of Payments:

1. Select New to access the Create menu and click on Bank Deposit under Other
2. Select all customer payments (whether for invoices or cash sales) deposited on one date
3. In the Deposit window, enter the correct deposit date in the Date field

Payments of Sales Tax

To enter past Payments of Sales Tax:  

1. Select Taxes from the left menu and then Sales Tax to open the Sales Tax Center
2. Select Record Tax Payment

If the "Pay Sales Tax" window doesn’t show the amounts owed as of the Start Date, enter the liability amounts before entering the payments as discussed.

3. Record all sales tax payments remitted by the company to taxing authorities between the Start Date and Cutoff Date

QuickBooks Customer Center

The "Customer Center" stores the information about the company's customers, including contact information and transactions. Clients can add new customers and projects, edit a customer's information, and add, view, or print customer transactions. Clients can access the "Create Invoices," "Create Estimate," "Enter Sales Receipt," "Receive Payments," and "Create Credit Memo/Refunds" windows from the "Customer Center."

Past Bank Transactions

Many of the bank transactions occurring between the Start Date and Cutoff Date are recorded when accounts payable, accounts receivable, and payroll transactions are entered. For example, when past purchases and accounts payable were recorded, checks written to vendors during the period were recorded. Similarly, deposits of customer payments on accounts receivable and for cash sales were recorded when past sales and accounts receivable were recorded and payments for payroll and payroll tax liabilities were recorded when payroll activity was recorded.

Consequently, before entering any bank activity, you should determine what QuickBooks has already posted in the bank account. That can be done fairly easily by looking in the QuickBooks bank account register. Select the bank account from the "Bank accounts" portion of the "Dashboard" screen. Alternatively, the bank account register in QuickBooks can be accessed via the "Go to Register" link on the "Banking" tab. Transactions in the register are in order by date but can be sorted by clicking on the appropriate header in QuickBooks.

Additional bank transactions between the Start Date and Cutoff Date that may need to be recorded at this point generally include checks written that aren’t related to the payroll or purchases/accounts payable cycles, deposits that were not recorded when accounts receivable activity was recorded, bank fees and other charges, and bank transfers. Those items should be recorded by following the directions below.

Past Checks

To record past Checks:

1. Select New to access the Create menu and click on Check under Vendors
2. Record all previously unrecorded checks

Be careful not to duplicate bill payments or payroll checks already entered in QuickBooks.

Past Deposits

To record past Deposits:

1. Select New to access the Create menu and click on Bank Deposit under Other
2. Enter all remaining deposits made between the Start Date and Cutoff Date

Be careful not to duplicate sales deposits that were entered previously.

Past Fees and Transfers

Bank fees and transfers between bank accounts can be entered in the bank register.

To record past Fees and Transfers:

1. Select New to access the Create menu and click on Transfer under Other
2. Enter each transfer written between the Start Date and Cutoff Date

Missing Transactions

If the bank account opening balance was entered using a bank statement balance as of a date prior to the Start Date, it’s likely there are uncleared checks and deposits between the bank statement date and Start Date that haven’t been entered. For example, assume a company is setting up its records in QuickBooks on January 12, 2021, and is using a Start Date of December 31, 2020. Assume further that the opening balance entered for the bank account was taken from the most recent bank information available such as a bank statement dated December 15, 2020. The setup process described in the preceding paragraphs would have adjusted the opening balance for the bank activity from the Start Date to the Cutoff Date, i.e., from December 31, 2020 to January 12, 2021, but wouldn’t have adjusted it for items occurring between the bank statement date (December 15, 2020) and the Start Date (December 31, 2020) or transactions occurring prior to the bank statement date not clearing the bank as of the statement date. Consequently, those transactions should be entered for the bank account balance to be correct as of the Cutoff Date.  

To enter these transactions:

1. Select New to access the Create menu and click on Check under Vendors
2. Enter the transaction information as discussed in the preceding paragraph. When recording the transactions, however, be sure to assign activity affecting revenues and expenses to retained earnings rather than an income or expense account since the transactions occurred in the prior period. This is accomplished by selecting Retained Earnings from the account drop-down list. Clients can use the QuickZoom feature for retained earnings to view details of the retained earnings account balance from reports or the chart of accounts. Clients can see the automatic closing entries created by QuickBooks, as well as other posted transactions

Reconcile the Bank Account

After entering all transactions from the Start Date to the Cutoff Date and from the bank statement date to the Start Date, it’s important to reconcile the current QuickBooks bank balance to the most recent bank statement to ensure that all bank activity has been recorded.

Books Review (Month-End Review)

The Books Review page enables you to review the bookkeeping for the previous month or custom date range. The page displays the previous month and year to review, or you can select the edit or pencil icon to change the year and date range. Books Review helps you in performing your month-end review by ensuring the bookkeeping for the previous month has been performed to produce timely, relevant, and reliable financial information.

To perform a month-end review:

1. Select the Go to QuickBooks drop-down menu and select the client from the list
2. Select Books review from the left menu

Note: The Books Review feature displays only after you go to the client’s QuickBooks. Books Review can only be seen by you and not the client.

The Books review feature has four tabs (pages):

1. Transaction Review
2. Account Reconciliation
3. Final Review
4. Wrap-up

Transaction Review

Transaction Review allows you to resolve Open Issues QuickBooks found during the previous month including Uncategorized transactions, Transactions without payees, Undeposited funds, and Unapplied payments.

Review Open Issues

Transactions needing review are organized into tables. Each table has 9 columns:

1. Date of the transaction
2. Type of transaction
3. No. (Reference) of the transaction
4. Vendor or Payee
5. Account
6. Memo
7. Amount of the transaction
8. Client info
9. Actions

You can resolve, reclassify, or categorize a transaction in two ways:

1. Select the transaction’s Type link to open the transaction, then review and complete the transaction

OR

2. Select the checkbox next to the desired transaction(s), then select Reclassify to reclassify the transaction

Ask Client

If you are unsure about certain details of a transaction, you can ask the client using a Client Request.

To Ask client about a transaction or transactions:

1. Select the checkbox next to the desired transaction(s), then select Ask client

This will open a new Client Request.

2. Verify or change the Title, Due date, and Details, as needed
3. Review the Checklist of transactions requiring information
4. ‍(Optional) Add any necessary attachments by dragging and dropping them to the Documents area
5. To notify the client of the request, select the Notify client toggle
6. Select Share

Additional Items

Transaction Review also enables you to address Additional Items that may need to be resolved:

1. Check for personal transactions
2. Review loan payments
3. Record cash transactions

These items enable you to check or review transactions for proper accounting or get transaction support information and documentation.

The Additional Items are additional procedures you can delete or add based on your monthly review.

As you complete tasks in each table, you can change the progress status by selecting the To do drop-down arrow.

Account Reconciliation

Account Reconciliation lists the client’s bank and credit card accounts and allows you to view the Current Status of each account as of the end of the previous month or period.

Select Accounts to be Reviewed

Before you review the client’s reconciliations, you will want to select which accounts need their reconciliation status reviewed. By default, all balance sheet accounts will be displayed.  

To select the accounts to be reviewed:

1. Select the Select accounts button
2. Select the checkbox next to all accounts you wish to review
3. Select Save

Cash, bank, and credit card accounts will then be displayed under the Bank and credit card accounts table, and the remaining accounts will be listed under the Other balance sheet accounts table.

Review Reconciliation Status

The tables in the Current Status section have four columns:

1. Name – Displays the name of the account
2. Unreconciled - Displays the number of transactions unreconciled for each account as of the end of the previous month
3. Reconciled Through - Displays the reconciliation status for each account as of the end of the previous month such as the date of the last reconciliation or Never Reconciled
4. Statement - Shows the attached bank or credit card statement, if any

If an account has unreconciled transactions, select the link from the Unreconciled column to be taken to the Chart of Accounts to investigate and resolve the issue.

Review Outstanding Transactions

The table in the Outstanding Transactions section displays any uncleared transactions prior to the end of the selected period. This table has 9 columns:

1. Date of the transaction
2. Type of transaction
3. No. (Reference) of the transaction
4. Vendor or Payee
5. Account
6. Memo
7. Amount of the transaction
8. Client info
9. Actions

You can resolve or categorize a transaction in two ways:

1. Select the transaction’s Type link to open the transaction, then review and complete the transaction

OR

2. Select the checkbox next to the desired transaction(s), then select Create journal entry to create an adjusting journal entry

Additional Items

Account Reconciliation also enables you to address Additional Items that may need to be reconciled or reviewed:

1. Reconcile loan accounts
2. Review reconciliation report for uncleared transactions

The Additional Items are additional procedures you can delete or add based on your monthly review.

You can also select the To do drop-down arrow to indicate you performed each procedure.

Final Review

Final Review allows you to review Accounts Payable, Accounts Receivable, and financial statements and reports as of the end of the previous month.

Review Unusual Or Unexpected Balances

The Accounts payable and Accounts receivable tables have 8 columns:

1. Date of the transaction
2. Type of transaction
3. No. (Reference) of the transaction
4. Vendor or Payee
5. Account
6. Memo
7. Amount of the transaction
8. Actions

To view a transaction, select the transaction’s Type link. You can also edit, void, or delete a transaction using the Actions column.

Review Reports

The Reports table has three columns:

1. Item - lists the financial statements and reports
2. Link - provides a review link to the financial statement or report
3. Status – Allows you to indicate the status of each procedure by selecting the To do drop-down arrow

You can also add a financial statement or report based on your monthly review.

Wrap-Up

The Wrap-up tab helps you complete any remaining tasks, or tasks that need to be completed post-review.

Complete Summary Tasks

The Summary Tasks section contains three final tasks:

1. Prepare reports
2. Send report package
3. Close the books

Each task has a link to where it can be completed:

1. Prepare reports – The “Select” link allows you to open and prepare a Management Report package
2. Send report package – The “Send” link takes you to the Management Reports tab, where you can send the desired management reports package
3. Close the books – The “Close now” link takes you to the client’s Advanced Account and Settings. From here, you can select Accounting, then Close the books. This will close and lock the books for the period, which prevents users from making unwanted changes before the closing date

After selecting Close the books, enter the closing date and select whether or not a password should be required to make changes before the closing date.

You can select the To do drop-down arrow to indicate you performed each task.

Additional Items

Wrap-up also enables you to address Additional Items that may need to be completed post-review.

The Additional Items are additional procedures you can delete or add based on your monthly review.

You can also select the To do drop-down arrow to indicate you performed each procedure.