Reference no: EM132384476 , Length: word count : 1000

Project : Small Business Accounting using QuickBooks

Online

I. Introduction:

Your good friend Kyra recently opened an art studio, Kyra’s Krafts, LLC. She has been creating and selling art work for years, and subsequently already has a good customer base. In January of this year she started the process of setting up an LLC, filing for an EIN in February. She found and rented a studio on March 1 st , and has been cleaning, painting, and setting up the space ever since. Her grand opening was April 1, 2019.

She knows you are going to school for your master’s degree in accounting and has asked for your help setting up and using QuickBooks Online (QBO). You agree to help her set up her QBO business account, complete her first month of transactions, and then teach her how to do it. You are not very familiar with QBO, but you know that it will be beneficial to you in your accounting career to learn the program, since it is the most used accounting platform for small business in the United States, so you agree.

She has heard about and is interested in using the following features:

- Sales Receipts/Invoices

- Purchase Orders/Inventory tracking

- Bills and Bill Pay

Details of this project can be found below.

II. Steps to Completion:

For most of the steps below, you will have the option of viewing a short  video or referring to the Intuit Education PPT, all page references given below.

Step 1 – Set up your QBO account.

Go to intuiteducation and follow the instructions for student registration for QuickBooks online.

Step 2 - Download Intuit Education PPT

Skim over the first part of the PPT to learn about navigating

QBO (the dashboard) (Pages 17- 23).

Step 3 – Set up the account and settings

View the Video:

“How to Navigate in QuickBooks” -

Review: Account and Setting, Intuit Education PPT, Pages 27 –

44. NOTE: the important information is how to get to account and settings which can be found on page 28. Appendix A covers all the settings that you will need to adjust for Kyra’s Krafts. The purpose of the project is not to learn all the ins and outs of QBO but for you to get comfortable with the program.

However, if you want to read all the details, feel free. It is just not required for the purposes of this project.

Using the information found in Appendix A, set up Kyra’s Krafts account in QBO.

Step 4 – Set up and edit chart of accounts (COA)

View the Video:

o “How to Edit your Chart of Accounts in QuickBooks” -

Review: Chart of Accounts, Intuit Education PPT, Pages 51 –56, 59 (subaccounts)

See Appendix B.

Step 5 – Set up sales tax

View the Video:

o “How to Set Up Sales Tax: Settings, Sales & More”

Review: Sales Tax Center, Intuit Education PPT, Pages 60 – 61.

See Appendix C.

Step 6 – Set up product items and contributed inventory –

View the Video:

o “Add Product Information”

Review: Products and Services, Intuit Education PPT, Pages 62 – 69

See Appendix D.

Step 7 – Create journal entries for all other (non-inventory) owner contributions

View the Video:

o “Journal Entries in QuickBooks Online”

See Appendix E

Step 8 - Add customers and vendors

View the Video:

o “How to Add Customers and Vendors into QuickBooks”

Review: Customer Center and Vendor Center, Intuit Education PPT, Pages 95 – 99 (customers), Pages 121 - 124 (vendors)

See Appendix F

Step 9 – Add invoices*, purchase orders (POs) and bills.

View the Video:

o “How to Create A Purchase Order”

(NOTE: you should create the bill directly from the PO. If you notice in the video where he is showing the PO summary screen, to the right of PO there is a button called “Create bill”. You should use that button to create the bill to the vendor.

View the Video:

o “How to Enter Bills, Track Expenses, & Record What You Owe”

Review: Create Invoices and Create Bills, Intuit Education PPT, Page 103 (create invoices), Page 127 (creating bills) - NOTE:

Do not spend time on fancy invoice. Just go with the basics, unless you want to play with this feature.

See Appendix G

Step 10 – Enter all transactions for the month of April

View the Video:

o “Create Sales Receipts in QuickBooks”

Review: Create Sales Receipt, Intuit Education PPT, page 102

View the Video:

o “Receive Payments in QuickBooks”

Review: Receive Payments, Intuit Education PPT, pages 104, 106 -NOTE: make sure you are receiving the payment to Kyra’s Bank account, not undeposited funds

View the Video:

o “How to Record & Print Checks”

Create Check, Intuit Education PPT, page 126 (& debit charges) –NOTE: Be sure to change the check number to

Debit or EFT or something else. QBO will accept duplicate words so pick one and stick with it for consistency. However, make sure that checks are numbered correctly.

View the Video:

o “How to Record Bill Payments”

Review: Create Check, Intuit Education PPT, page 128 –

NOTE: Make sure you document the check number used to pay the bill.

Step 11 – Reconcile April Bank Statement –

View the Video:

“Reconcile your accounts”

Review: Intuit Education PPT, pages 142 – 144.

Appendix I

Step 12 – Review and Revise Financial Statements

View the videos:

“Understanding Profit & Loss Statement: Income, Cost of

Goods”

“How to Customize Reports: Basics, Sorting & Date

Ranges

Intuit Education PPT, page 77 – 84.

Appendix J

Step 13 – Print Reports

P&L and Balance Sheet for the current month. Make sure the report basis is Accrual.

Print the General Ledger for “all time”

Intuit Education PPT, pages 77 – 84

Step 14 – Create a Bank to Book Reconciliation

In other Excel worksheet, create a bank to book reconciliation.

Competencies Assessed by Project:

Communication Competencies:

1.1 Organize document or presentation clearly in a manner that promotes understanding.

1.2 Develop coherent paragraphs or points so that each is internally unified and so that each function as part of the whole document or presentation.

1.3 Provide sufficient, correctly cited support that substantiates the writer’s ideas.

1.4 Tailor communications to the audience.

1.5 Use sentence structure appropriate to the task, message, and audience.

1.6 Follow conventions of Standard Written English.

1.7 Create and employ multimedia supports, visual aids and/or documents appropriate to the needs of the project, the message, and the audience.

1.8 Create clear oral messages.

Critical Thinking Competencies:

2.1 Articulate and frame the issue.

2.2 Collect and evaluate information.

2.3 Evaluate the underlying causes or conditions of elements contributing to issue.

2.4 Use systems thinking to arrive at a decision in the context of an issue.

2.5 Apply ethical principles when determining actions.

Accounting Competencies:

5.2 Measure, analyze and interpret: measure, analyze, and interpret accounting data and information

5.3 Report: report accounting information

5.6 Technology and Tools: Identify and use relevant technology and tools to analyze data, perform requisite tasks efficiently and effectively, and support other competencies required in the profession.

Attachment:- Project.rar