Useing the Checkbook in Quickbooks Online Essentials
 
 

Useing the Checkbook in Quickbooks Online Essentials



Your checkbook is probably one of the most important things you have in your business. It's probably what you use to pay bills and numerous other expenses. That said, learning how to keep your checkbook in QuickBooks Online Essentials is very important. Take your time with this article as we go through it. It will save you time and aggravation later.

 

Editing Checks

If you've already entered a check, then realize that you made an error, you can go back and edit the errors you made easily enough. To find your checks click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 2.45.22 PM.png tab, then click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 2.45.30 PM.png sub tab. You will now be at the Expense Transactions page:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.11.44 PM.png

From your Expense Transactions page, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.13.11 PM.png. You will now see the following screen:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.14.18 PM.png

Now, select the dropdown menu for Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.15.38 PM.png, you will now have the following options:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.16.04 PM.png

Select the option for Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.16.43 PM.png:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.18.46 PM.png

Now click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.20.33 PM.png.

You will now see all of your Check transactions.

Select the check you want to edit.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.21.54 PM.png

 

Go ahead and edit the check:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.22.44 PM.png

 

Click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.25.52 PM.png option.

QuickBooks returns to the filtered Expense Transactions screen and lets you know the check has been modified.

The Register

To access your checkbook's register, click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 2.45.22 PM.png tab, then the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.29.06 PM.png sub tab.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.30.53 PM.png

 

Select your checking account (or another account if you would like to see a different register), then click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.32.11 PM.png.

Your register is then displayed.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.33.07 PM.png

 

You can use your register to keep up with transactions as they clear your bank and to reconcile an account.

To do this, select a transaction, then tab over to the column with the checkmark, shown below.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.39.56 PM.png

Enter a C if the transaction has cleared your bank account. Enter an R is it's been reconciled with your banking statement.

Editing Transactions in the Register

To edit a transaction on the register, select the transaction you want to enter by clicking on it.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.41.24 PM.png

 

Notice that you have the option to Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.42.19 PM.png, Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.42.24 PM.png, Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.42.28 PM.png, or Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.42.33 PM.png your transaction. Click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.42.24 PM.png button.

The transaction we are editing is a Bill, so we are taken back to the Bill Payment screen:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.48.32 PM.png

We now can edit the Bill. We can also Delete or Void it.

When you are finished making changes, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.25.52 PM.png.

Balancing Your Checkbook or Banking Account

Balancing your bank account is also known as reconciling your account. You can reconcile a bank account, credit card, or cash account.

To balance your account:

Click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.54.28 PM.png in the lower left corner of the Register window.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.55.22 PM.png

The Reconcile window will then open. A "Start Reconciling" dialogue box will appear:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.56.55 PM.png

Using your bank statement, enter the Statement Ending Date, the Opening Balance, and the End Balance.

If there is a service charge, enter the amount and the date it was charged to your account.

Now, select an account for the service charge.

Enter how much interest (if any) the account earned, and the date it was issued on the statement.

Assign the interest to an account.

Click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 3.58.21 PM.png.

You are then returned to the Reconcile screen.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.00.18 PM.png

 

Go through the transactions that are listed. When a transaction on the screen matches a transaction on your bank statement, click the checkbox next to that transaction (on the screen) so it's marked as cleared, as shown in transaction Num. 1 below:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.02.04 PM.png

If you have a transaction on your screen that doesn't match a transaction on your bank statement, correct it.

Look toward the bottom of the Reconcile window. The Difference should be zero.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.02.42 PM.png

Click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.04.37 PM.png button when you are done balancing your account.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.05.55 PM.png

Entering Bank Deposits

To make a bank deposit, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.11.56 PM.png, then under the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.12.25 PM.png tab, select the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.23.13 PM.png sub tab, shown below:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.23.21 PM.png

You'll then be taken to the Deposit screen.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.31.25 PM.png

Select the account you want to deposit to:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.35.05 PM.png

Interested in learning more? Why not take an online class in QuickBooks Online Essentials?

In the Date field, select the date of the deposit.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.51.33 PM.png

Fill in all necessary New Deposits fields, shown below:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.53.46 PM.png

If you are depositing checks and you want cash back, let QuickBooks know where the cash goes back to. We just want to do a deposit.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.57.00 PM.png

Add a Memo or Attachment (optional), then click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.19.24 PM.png button.

Transferring Funds Between Two Accounts

Account transfers are when you transfer money from one banking account to another banking account. It's something you've probably done before and will do again. However, you need to make sure you record these transfers into QuickBooks.

To transfer funds, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.11.56 PM.png, then under the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.12.25 PM.png, select the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.12.32 PM.png sub tab, shown below:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.12.41 PM.png

You'll then be taken to the Transfer screen.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.14.18 PM.png

 

Select the account that you want to transfer funds from in the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.16.13 PM.png field.

Next, select the account that you want to transfer funds to in the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.17.40 PM.png field.

Enter a transfer amount. This should be in USD.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.18.32 PM.png

Select a date for the transfer.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.18.28 PM.png

Add a Memo or Attachment if you want, then click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.19.24 PM.png button.

QuickBooks Online Essentials then lets you know that the transfer was successful and brings you back to your Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-28 at 4.20.41 PM.png page.

Non-Sufficient Funds (NSF) Checks

We don't want it to happen. We'd rather it didn't happen. But sooner or later, it's going to happen. You are going to get a check from a customer returned by your bank, and it's going to be marked NSF, or non-sufficient funds. You probably know by now that this means your customer didn't have the money in the bank to cover your check, but just in case it was worth mentioning. If you've already entered the deposit into QuickBooks, you are going to want a way to change that. We are going to include the steps you need to take below.

Go to your checkbook register. Record the fee that your bank charged you for the bad check.

Now, since the deposit into your checking account didn't clear, you are going to have to record that adjustment as well.

If you use accrual-based accounting for taxes, you may want to use bad-debt expense account to categorize the expense of a bad check. Otherwise, reduce your income in your sales income account to reflect the bad check.

Then, try to collect on the check again. You may want to call the customer and see if this can't be handled quickly and without much fanfare.

Printing Checks

 


In this section, we are going to learn to print checks and registers using your own printer. This will be an important section, especially if you plan on printing out your own checks. If you plan to print your own checks, you will want to have everything in place before you hit print. The last thing you want to do is create checks that aren't printed correctly and cannot be used.

Requirements for Printing Checks

To print out checks that you write using QuickBooks Online Essentials, you'll need three things.

The first thing you'll need is an inkjet or laser printer. You want to make sure you have plenty of ink so the quality is good.

Next, you'll need voucher or standard checks. You can buy these from Intuit, the makers of QuickBooks Online Essentials. Just keep in mind that only single-sheet voucher and standard checks from Intuit are promised to work with QuickBooks Online Essentials.

You'll also need to update Adobe Reader to the latest version available. This is a free download from Adobe.

Printing Checks

You can use QuickBooks Online Essentials to print checks that you've written. To do this, click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.00.33 AM.png, then the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.00.41 AM.png sub tab.  This takes you to the Print Checks Setup screen.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.03.13 AM.png

 

QuickBooks Online Essentials is going to walk you through every step you need to take in order to start printing checks.

As you can see in the snapshot above, the first thing you need to do is make sure that you have voucher checks or standard checks.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.07.20 AM.png

 

Next, load blank paper into your printer.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.09.20 AM.png

Then choose the type of check you'll use: voucher or standard checks. 

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.09.30 AM.png

Now, you can Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.10.34 AM.png, then place the sample on top of a blank check.

Make sure all fields line up and the check will print correctly, as shown in the instructions on the QuickBooks Online Essentials Print Checks Setup screen.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.13.43 AM.png

When you have everything set up, select the checks that you want to print:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.15.09 AM.png

 

Click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-29 at 10.15.57 AM.png. Your checks will now print.  
 

Payroll


There's no doubt that payroll is one of your biggest headaches, especially if you are doing it yourself. Meddling with withholdings, writing the checks, and trying to decipher payroll taxes can take up so much time -- and all of your patience.

Because it's so complicated, you may want to hire an outside source to take care of your payroll. That way, you don't have to worry about Uncle Sam coming back to haunt you later. However, if you don't want to pay for payroll services, and you plan on doing it yourself, we'll show you how to use QuickBooks Online Essentials to do so effectively.

Setting up Payroll

 This was the first step in setting up payroll. Now, we are going to go back to this and finish setting everything up so you can pay your employees.

Click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 9.54.35 AM.png tab, then click the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 9.54.50 AM.png sub tab.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 9.52.30 AM.png

Be sure to have all of the employees you have paid during 2014 setup beforehand, including terminated employees, before you start the next step. Once this is completed, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-30 at 9.15.45 AM.png.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-30 at 9.13.41 AM.png

You'll now be asked to input some additional employee details for each employee you have setup. 

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 9.59.21 AM.png

Input the "birth date" and "hire date" for each employee. By now, you should have already setup your employees' withholdings, if you need to add or change anything click on Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.02.31 AM.png and make the appropriate modifications. Once you have everything complete click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-30 at 9.15.45 AM.png.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.08.12 AM.png

Now QuickBooks wants to know some of your business details. Most of this information should already be filled in for you but you will want to review it for accuracy before you move on to the next step. 

1.    Fill in the business name you use when filing tax forms.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.15.15 AM.png

2.    Now input the address you use when filing tax forms. If it is the same as your business address just put a Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.20.05 AM.png in the box.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.18.59 AM.png

3.    Determine when you will be running payroll with QuickBooks Online Payroll and select the appropriate option.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.21.39 AM.png

4.    QuickBooks wants know if you hired your first employee within the past six months. Check "Yes" if this is true. If it's not, check "No".

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.22.36 AM.png

If you check "Yes" you will be asked if you purchased your company from another owner. Check "Yes" if this is true. If it's not, check "No".

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.28.36 AM.png

Now click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-30 at 9.15.45 AM.png.

Now you'll have to answer some Federal tax detail questions that will help QuickBooks calculate payroll taxes for you.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.31.43 AM.png

1.    Do you know your federal Employer Identification Number (EIN)? If "yes", input it here, if not, select the "no" option.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.38.50 AM.png

2.    QuickBooks now wants to know which payroll tax form you use to file with the IRS. Select the appropriate option from the dropdown menu, as shown below:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.39.48 AM.png

3.    Identify how often the IRS requires you to pay federal taxes from the dropdown menu shown below:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.43.05 AM.png

4.    Choose if your business is a 501(c)(3). 

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.44.47 AM.png

Once you have answered all of the questions, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-04-30 at 9.15.45 AM.png.

Now we are going to walk through setting up our state taxes. These are the taxes that will be withheld from our employees' checks.  For the rest of this section, we are just going to show you snapshots so you can see the questions that may be asked. Keep in mind that every state may have different questions. The information that you enter will be based on your company and the state your company is in. If you have questions about where to get information that QuickBooks requests, you can contact QuickBooks directly or search through the help screen. The information presented below is based on New York State.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.01 AM.png

1.    If you don't yet have an EIN for your business, QuickBooks instructs you how to get it:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.11 AM.png

2.     

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.15 AM.png

 

3.     

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.19 AM.png

4.     

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.22 AM.png

5.     

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.27 AM.png

As you can see, QuickBooks holds your hand every step of the way and helps you set up your business for payroll. After you have input all of you information, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 11.08.52 AM.png. You will now see this on your screen:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.41 AM.png

Click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.57.54 AM.png.

You are now taken to the Payroll Tax Center:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 11.12.11 AM.png

If you need to edit your tax information, view your Tax Liability Report, View Tax Payments, or enter Prior Tax History, this is where you will do it. 

Run Payroll and Paying Employees

To run payroll and pay your employees click on the Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 11.51.03 AM.png tab. You will now see your Employees home screen:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 11.52.43 AM.png

Click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 11.56.04 AM.png and you will be presented with the Enter employee pay details:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 11.57.18 AM.png

Now select the Bank account you will be paying your employees with:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.10.13 PM.png

Next, adjust the Pay period and Pay date:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.11.05 PM.png

Select the employees you will be paying during the pay period by putting a Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.20.05 AM.png next to their name:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.12.16 PM.png

If you have hourly employees, enter the amount of hours they worked.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.15.32 PM.png

If you have a salaried employee notice that Quickbooks Online Essentials will automatically calculate the pay for that employee:

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.17.20 PM.png

Finally, review the total compensation of your employees and make sure everything looks correct.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.19.02 PM.png

Once everything is entered and correct, click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.19.49 PM.png.

Now you will be brought to the Review and submit page. 

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.20.49 PM.png

Once you review each employee's "total pay", "employee taxes", and "net pay", click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.23.25 PM.png.

You will now see that your payroll is all set. 

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.24.17 PM.png

Now select the employees you would like to Print pay stubs for by placing a Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 10.20.05 AM.png next to their name.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.29.45 PM.png

Next, assign the appropriate check number for each employee's check. Notice that there is also an Auto-fill option if you prefer to use that as a shortcut. 

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.27.12 PM.png

If you are going to print pay stubs click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.31.31 PM.png.

Now you will see a preview of what your pay stubs will look like. Review each of them and then print.

Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.33.04 PM.png

Once you have printed out the checks (if necessary), click Macintosh HD:Users:stephencarges:Desktop:Screen Shot 2014-05-03 at 1.35.05 PM.png. 
 
 
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