QuickBooks Lists Not Sorted Alphabetically

In my consulting practice I have recently had quite a few Attorneys that use QuickBooks have a common problem when they were trying to display a list.  The problem is when they view a list (like the Chart of Accounts), the list is not sorted alphabetically, which makes finding a particular entry a bit of a hassle.

Here is a quick way to get those lists back in shape.

1. Click on List from the Main Menu and choose Chart of Accounts.


2. This will display your Chart of Accounts list.


3. With the list open, click View from the Main Menu and Re-sort list.

Tada!  The list is resorted.   This will also work in the customers, vendors and items list.

QuickBooks Lists Not Sorted Alphabetically

Memorizing Reports in QuickBooks

QuickBooks allows you to memorize reports that you have customized so you can quickly print them again.   However you want to organize your memorized reports to make it easier to find.   The first step is creating a Memorized Report Group.   To do this Click on Reports from the Main menu and choose Memorized Report List.  When the window comes up click the Memorized Report button at the bottom and choose New Group.

Figure 1.1 Click to Enlarge

We are going to create a group called *Time Reports.   Now the reason I put a * in front of Time is so it shows up at the top of the list.   Click OK when done giving your group a title.

Figure 1.2 Click to Enlarge

I have a report I customized to show unbilled time by client detail.   I want to save this report in my memorized report group.   Click the Memorize button at the top of the report and select Save in Memorized Report Group.

Figure 1.3 Click to Enlarge

When you save all the reports in the group it makes it easier when it is time to print these reports.   Simply click on the Memorized Report List and choose the group.  At the bottom of the Report List you will see a button to Display or Print.

Figure 1.4 Click to Enlarge

When we click Display it will bring the list up to select all or just some of them.

Figure 1.5 Click to Enlarge

TaDa!  Instant Reports.

Figure 1.6 Click to Enlarge

Memorizing Reports in QuickBooks

Trust Accounting using QuickBooks

Recently I have noticed alot of information on the web talking about trust accounting using QuickBooks. I also notice that people are suggesting making subaccounts under the bank account for each client. This is a method I do not recommend doing. It limits you on having to make one transaction for each client. If you only have a few clients and a few clients in your trust account this may work for you but it will become very cumbersome when your practice starts to grow.

Key things to remember when setting up your trust account.

You need to be able to provide the reports on a monthly basis to show activity for each client, sometimes called a client ledger.

You need to be able to have a report that shows all the activity in the trust account and clearly identified for each client.

You need to reconcile your trust account monthly with your bank statement.

If you print a Balance sheet report in QuickBooks and the Trust account does not equal the Trust Liability you setup then something is wrong. All money going into and out of trust should be coded to Trust Liability. I recommend using subaccounts under the trust liability but you can just use the customer name.

You want to make your system easy enough that at any given time you can identify who has what in trust. This is a very important part of your business.

You never want to be in a position that you bounce a check in the trust account. If you mess this up it can cause the bar association to step in and look at what you are doing.

If you need help or would like me to review your current Trust Accounting procedures I would be happy to help. You may call me at 904-284-4480 or email me at Lynette@attorneystechnology.com

Tracking Time in QuickBooks

Attorneys can track time in QuickBooks and bill their clients.  You do not need to buy any other software to make this work.  It is in QuickBooks.  

QuickBooks gives you two options for entering time (you can switch back and forth between either methods at any time).  In either case, be sure to enter as complete a record as possible if you want your time to accurately and completely transfer to invoices and statements or show on reports. 

Single activity time entries are convenient to use if you will be continuously running QuickBooks, and entering each activity as you do it, rather than entering all your time at the end of the week from a paper timesheet. One advantage is you can use the timer to time your activity. 

1.      Click on Enter Time from the Home Page.
2.      Click on Time/Enter Single Activity.
3.      Choose the Date in the Date field.
4.      Choose the Employee in the Name field. 
5.      Choose the Client, and job if you are using jobs, in the Customer: Job field.
6.      Choose the Service Item. For example consulting, court appearance or telephone conference.
7.      Enter the time spent.
8.      Make sure there is a √ in the Billable box if you are going to bill the client.
9.      Enter a description in the notes area.  This will be able to be pulled into the invoice or statement.
10.    Click on Save & Close if you are finished entering time or Save & New if you want to enter more time.

 

 

 

The weekly timesheet in QuickBooks is useful when you enter time at the end of a week or a certain period, working from a paper time record.

1.      Click on Enter Time on the Home Page.
2.      Click on Use Weekly Timesheet.
3.      You may want to change the date range for the time sheet.  To do this click on the small calendar icon to the right of the date.  Select a new date.  The new date range will appear.
4.      Choose the Employee in the Name field.
5.      Choose the Customer in the Customer: Job field.
6.      Choose the Service Item.
7.      Enter a description in the notes area.
8.      Click on the date column and enter the time spent.
9.      Mark it billable if you want it to show up on the client’s invoice or statement.
10.    Continue until all time is entered then click Save & Close. 

QuickBooks service items are used on the time sheets.  You may want to think about how you want to see your income and set up your items accordingly.   If you need help I am available to help you get started with tracking time in QuickBooks.   You may call my office at 904-284-4480 or visit www.attorneystechnology.com for more information. 

 

Converting Time entries from Time Slips or Tabs to QuickBooks

Are you currently using another program to track and bill your time?  Would you like that time to be brought into QuickBooks so you can have the history and start using QuickBooks to manage your time and billing?   If so I can help.  If your current program has the ability to print the time records to a csv or text file, this can be transferred in.    If you would like more information about this service please contact me at (904) 284 -4480.

Law Firm Sample Statement from QuickBooks

Attorneys can use QuickBooks to track time and bill clients.   This week alone I have had four people call and ask me what program should they get to work with QuickBooks so they can do billing.   I told all of them they don't need another program you can do it in QuickBooks.  

QuickBooks has a built in feature to track time.   You can customize it so you can track time by employee, types of work or by rate.   The trick is setting it up correctly.  

One complaint that I hear is that attorneys don't like the way QuickBooks Invoices or Statements look.  I  have created a sample statement from QuickBooks that only took a few minutes to create that I think looks professional for use in a Law firm. 

If you would like to learn more about how you can use QuickBooks in your law practice you are welcome to contact me.   http://www.attorneystechnology.com/

Thank you,
Lynette Benton

What is Undeposited Funds used for in QuickBooks

One of the most common question I get is “What is undeposited Funds?” When you receive a payment from a client it goes into an account called undeposited funds. Think of this as your bank bag. You may receive payments from clients throughout the week. You stick them in your bank bag.

You do the same thing in QuickBooks. When you are ready to go to the bank you click on Record Deposits from the Home Page. A window will pop up for you to select the payments you are depositing into the bank.

Now you select the bank account you are depositing the money into.

Undeposited Funds is just a holding account to place all the checks or cash you have received so you can group them together to make a deposit into your bank account.

Hope this helps.

Entering Credit Card Charges in QuickBooks

Setting Up for Credit Card Transactions
If you have a credit card that you use only for the business then you will want to set it up as a credit card account.

1. Click on Chart of Accounts from the Home Page.
2. Click on New from the Account button.
3. Choose Credit Card as the Type of account.
4. In the Name field type in the name of the credit card.



You can enter the charges as you make them or wait until you get your statement and enter the charges at that time.

1. Click on Banking from the Main Menu.
2. Click on Enter Credit Card Charges.
3. Choose the credit card in the Credit Card field.
4. If you want to do it using the statement and put them all on one charge don’t fill out the Purchased From and use the statement date as the date.
5. Enter a description of the item purchased in the Memo column.
6. Be sure to remember to choose a class in the Class column if you are using classes in QuickBooks.


Paying a Credit Card

To pay a credit card you just write a check. Enter the name of the credit card company in the Pay to the order of field, enter the date and the amount you are paying. In the Account column choose the credit card account you setup.

Attorneys Can Use QuickBooks in Law Practice

I have heard many times that lawyers have been told and think that they can not use QuickBooks in their office to handle their bookkeeping needs. I disagree with this. QuickBooks is an inexpensive accounting software package that is designed to be easy to use by non-accountants. Even though attorneys have complex accounting needs, I have found through years of experience, that QuickBooks can accomplish the tasks you need to run your practice.

QuickBooks has the ability to do the following for attorneys:

Track time to bill clients
Track costs to bill clients
Bill clients for time and cost
Track income and expenses
Maintain a trust account

It is easy to accomplish if you have QuickBooks setup right to begin with. The biggest problem I have seen is neglecting the accounting aspect of your practice. Lets face it. You could be using any piece of software to handle your time and expenses but if you don't have an overall knowledge of how profitable your business is, you are just guessing.

Being able at any time to see how your practice is doing gives you a great piece of mind and a chance to fix things before it is to late. Most of the high price accounting packages for law firms are so complicated that you have to hire people that already know how to use them and then you are depending on them to tell you how it is going. With QuickBooks, you, the attorney, can easily learn how to get the information you want when you want it and you are not held hostage by a bookkeeper that may be the only one who knows how to run your software.

How long does it take to get setup and running? This is my most asked question. Here is a breakdown on the average time investment I think you will need to get up and running.

• 15 - 30 minutes phone call with you -Let me setup the file - I do this after I talk to you to find out a little about your practice and billing needs.

• 1 hour gathering information - This really depends on if you are starting out with a new practice or converting from another program. Things I would need to get your file setup would be client begin balances, client names and address information (I can show you how to add but if you have an existing program I can import this information for you) Trust account information, and billing rates.

• 2 - 1 hour online consulting appointments - Using remote connection software, I will put the file on your computer and show you the basic functions of QuickBooks like how to setup clients and matters, how to enter your time, and how to bill for it, how to write checks for client costs and regular operating expenses and how to receive payments from clients.

• 1 hour online consulting for Trust Accounting. I will teach you how to handle your trust transactions and get the reports you need to be in compliance with your state bar association rules on trust accounts.

• 1 hour online consulting - This is usually after the first month. I show you how to reconcile and how to make sure your information is correct.

The total investment in time is usually 4 - 6 hours and you will know how to use your accounting software to get the information that you need to make sure that your practice is healthy, and in compliance. I have been teaching attorneys how to do this for over 15 years and it works. You are welcome to contact me if you have any questions.

Recording Cash Transactions in QuickBooks

There are some occasions in which you purchase items with cash or on your personal account. You want to record them so you can write off the expense. These transactions can be entered into QuickBooks with a journal entry or you can setup a bank account called petty cash.

Journal entry method:
1. Click on Company from the Main Menu and click on Make General Journal Entry.

2. Choose the account the expense was for. In the Debit column type in the amount of the purchase. Enter a memo regarding the purchase. If you are using classes in QuickBooks don't forget to enter a class.

3. You will credit the Owners Draw or Draw account the total of your debits.

In the Chart of Accounts you will want to have an account for money you put in and take out of the company. This could be called Owners Draw or Draw. They type of account it would be is an equity account.

Petty Cash Method

Another way to handle cash transactions is to setup a petty cash bank account. For example, let’s say you have $100.00 in petty cash. When you need to buy something you take it out of petty cash and put in a receipt. First setup a bank account called Petty Cash.

1. Click on Chart of Accounts from the Home Page.
2. Click on Add new from the Account button.3. The type will be Bank Account.4. The name will be Petty Cash.

When you write a check from your regular checking account for petty cash you will choose the Petty Cash account as the account. This will put money into the petty cash register.

Now that you have a petty cash account you can enter the receipts you have that you paid for with cash or through your own account. The main difference is that you don’t have to put a check number.

Setting Up Users and Passwords in QuickBooks

QuickBooks allows you to setup Users & Passwords. This allows you to secure your data. In setting up users you can also assign rights to the user. For example, you may have someone who helps you with your billing and receiving payments. You would set them up to only be able to see the accounts receivable information.
To setup users and passwords:1. Click on Company from the Main Menu.
2. Click on Setup Users and Passwords.
3. Click on Set up Users.

The User List box will appear. This lists all of the users that are currently set up. The Admin account is set up by default. You may want to set a password for the Admin account, click on Edit User. Enter the new password and enter it again in the confirm password box. Select a challenge questions, and input the answer. When you are finished, click on Next. Click on Finish to complete the process.
Now we can add Users to your QuickBooks file.1. Click on Add User. Type in the name they will use to log in with and a password. Click Next.

2. Choose Selected Areas of QuickBooks.

3. Since Julie is going to be helping with billing and receiving payments we will want to give her full access on the Sales and Accounts Receivable window, choose Full Access and click Next.

4. Go through the additional windows and choose the options that fit your user.

5. Once you are done you will see a summary of the choices you picked. You can now review them and then click Finish. It is a good idea to log off and then log back on as them so you can test it out and make sure you have selected the right choices.


If you need help with learning more about QuickBooks I offer online consulting services. To find out more visit our Quickbooks Consulting service page at attorneystechnology.com.

Backing Up Your QuickBooks Data

Backing up your QuickBooks data is very important. If something ever happens to your computer, you will be able to restore you data file to another computer IF you have a backup.

The easiest way to backup your data is:

• Click on File from the menu bar and Save a Copy or Backup. The following dialog box will come up.

• Click Next.
  
• Choose Local backup and click Next.



• Choose your option. I recommend Save it Now and Schedule Future backups.



• Choose how often and click Options to choose the location.

• Name your file and enter time and days to do backup and click OK.

Setting Up Payment Plans Using QuickBooks

Here is an easy way to setup a payment plan in QuickBooks using the Invoice method.

You may have situations in which you want to setup a payment plan for a client using QuickBooks. Let’s say you are going to bill a client $2000.00 to do a case. One way you might want to do this is to create an invoice that day for the amount they are paying to start. Then create the remaining invoice or invoices individually with the date that they are due to make a payment. Use the terms as Due upon receipt. This will also allow you to create an aging report in the future so you can forecast what is coming in that month.

My new book for Law Practice Accounting using QuickBooks is available at www.attorneystechnology.com I show how to do this and so much more.

Creating an Invoice in QuickBooks Grouped by Timekeeper

You may want to create an invoice that has time activity grouped by item type or timekeeper. I will use the attorney sample file in QuickBooks to show you how to do this.
To do this, when you click on add time and cost to invoice you will first select the items you want to come into the invoice. For example we want to show Jonathan's time first.














When the invoice comes up go to the bottom and add a line for the subtotal. This will add up all the lines above this group.
















This is also great for grouping the expenses for things like postage and copies or other fees.

Here is what the invoice could look like.






















You may want to get my new book Law Practice Accounting Using QuickBooks for 2010 and prior versions.

Checking for Conflicts of Interest with QuickBooks

QuickBooks has added a new find field in the customer list that can help you check your customer list for conflicts of interest. You can use the define fields to store other names that are associated with your clients. It is easy to use and attorneys may find it very helpful.

From the Home Page, choose Customers. QuickBooks displays the Customers: Jobs list.
Click on the Customer Job that you would like to add a custom field to.
Click the Additional Info tab.
Click Define Fields.
QuickBooks displays the Define Fields window.

















In the first blank label field, type Versus.
Select the Customers: Jobs checkbox.
Click OK to close the Edit Customer window.
Close the Customers: Jobs list.











Finding names in the customer list
When you want to find a client or a name in your client list click on the find field on the customer list and then click the search box.

Save Time With Memorized Reports in QuickBooks

Memorizing ReportsWhen you make modifications and customize a particular report, you may decide that you would like to save the settings and modifications, so that you can later pull the same report without having to go through all of the modifications. QuickBooks makes this easy with Memorized Reports.

Click on the Modify Reports button and make whatever changes you would like to make. Complete your changes and click on OK to return to the report.

When you are done with report click on the Memorize button in the top left hand part of the report window.

QuickBooks will now prompt you to enter a new name for the report. You can name it anything that you would like.

Click OK to Finish.

To retrieve the report at a later time, simply click on Reports from the Main Menu, and then click on Memorized Reports. The report that you created will be on the list, and you can click on it to bring it up.

You can also create a Memorized Report group.

Click on Reports from the Main Menu and click Memorized Reports.
This will bring up a listing of the memorized reports.

Click the Memorized Report button at the bottom and choose New Group.

Name your group. For example Trust Reports.
Click OK when done.

Now click on a memorized report and click the Memorized Report button at the bottom.
Click Edit Memorized Report.
Add that report to your new group.

Now when it comes time to print out or display those reports you can just go to Memorized Reports, Choose the group and then Display or Print.

Before Updating to QuickBooks 2009 Read System Requirements

The system requirements have changed for QuickBooks 2009. It does not work on Windows 2000. Make sure your computers are upgraded before you install. Here is a link to the system requirements. http://quickbooks.intuit.com/product/accounting-software/small-business-accounting-software.jsp

Operating Systems supported:
Windows XP (SP2 or later strongly recommended), all editions
Windows 2003 Server
Windows Vista (w/UAC on), all editions
Windows Longhorn Server (database only, not client)

My Customer List in QuickBooks is Sorted Wrong on Reports

I got a call from one of my clients and she was so frustrated because her customer list was sorted wrong on her aging report and customer sales report. I couldn’t figure out what she could have done so I had to see for myself. YEP it was messed up. This is how you fix this if the QuickBooks gremlin gets in your company file.


Go to the Write Checks Window.
When the window appears click on the Payee field and press CTRL and L.
The Names List window will pop up. Click on the Name button at the bottom.
Choose Re-sort list.


This should fix it.