How to install the QuickBooks software

How to work with the practice files in this

book
How to open QuickBooks data files
Editions of the QuickBooks software
Some of the basic principles of accounting
About Academy Glass, the sample company
How to install QuickBooks Releases
How to use Navigators, Menus, Icon Bars,
and the Shortcut list in QuickBooks
About QuickBooks Help and Support

Insert the QuickBooks CD into CD-ROM drive

The installation program will start automatically

Follow the onscreen instructions

If the installation program does not start

automatically:
Select the windows start menu and then select

run
Enter [D]:\ Setup.exe (where D is the drive letter
of your CD-ROM drive)
Click OK

The practice files are located at

www.quickbooksupportdesk.com/support/

Download the file

QuickBooks_2005_Classroom_Files.exe to your
local hard disk and install (double-click) it

Installed files will be placed in

C:\QuickBooks 2005 Classroom Files and

backup files into the QuickBooks 2005 Backup

Files directory.

All the chapter computer files are

In the .QBB format
Located inside the QuickBooks 2005 backup files

sub directory
Example: Intro-05.QBB

The practice files used for every chapter are

In the .QBW format
Created by restoring the corresponding backup file
Example: Intro-05.QBW

QuickBooks has two primary types of files:

Data files (extension .QBW)
To enter data or create reports
Select File menu and then select Open

company

Backup files (extension .QBB)

To create a condensed version of the data

file
Restore into a .QBW file before using it
Select File menu and then select Restore

To create a backup, select the File

Menu and then choose Backup

Creates a smaller version of the data

file with the file extension .QBB

Most important safeguard for safety of

your data file

Main reasons for restoring backup files

in QuickBooks:
To transfer files between computers

To recover damaged or lost data

files

Restoring does not add information to

your file

Launch the QuickBooks program

Select the File menu and then select Restore
Restore From: Set the filename and location
fields of your backup disk and backup file
name (.QBB file)
Restore To: Set the filename and location
fields to where you want to store your file
(.QBW file)
Click Restore
QuickBooks will then restore your backup file
to a .QBW file in the directory you specified

Launch the QuickBooks program:

Double-click the icon on your desktop or
Select it from the Windows Start menu

Previously opened data file will be opened

(unless you specifically closed the data
file before exiting File/Close Company)

To open a different file, select the File

menu and then select Open Company

Comprehensive set of accounting tools

thats very powerful and easy to use
General Journal
Chart of Accounts
Accounts Receivable
Accounts Payable
Inventory
Financial Reporting
Fee based Payroll services

 Simple
Basic
Pro

Start

Premier
Accountant
Contractor
Non Profit
Manufacturing &

Wholesale
Professional
Services
Retail

To assess:
The financial position of the organization

relative to its debts (liabilities)

Its capabilities to satisfy those debts and
continue operations (assets), and
The difference between liabilities and assets
(net worth or equity)

The Accounting Equation,

Assets = Liabilities + Equity

Business transactions are recorded in

several types of ledgers, called accounts

The summary of all transactions in all

ledgers for a company is called the General
Ledger

A listing of every account in the General

Ledger is called the Chart of Accounts.

Each account has a type (i.e., asset,

liability, equity, income, or expense)

Total debits must always equal total credits

In QuickBooks, every transaction creates a

debit in one or more accounts and a credit
in one or more accounts to handle doubleentry accounting

Depending on the type of account, a debit

might increase the account or decrease it;
the same is true of credits

Therefore, debits are not always bad and

credits are not always good

The accrual basis method

Revenues and expenses are recognized in

the period in which the transactions occur,

rather than in the period in which cash
changes hands

The cash basis method

Revenues and expenses are not

recognized until cash changes hands

With QuickBooks, you can create

reports for either method

Transactions are entered in familiar-looking

forms such as Invoices, Bills and Checks

QuickBooks handles the accounting debit

and credit entries

This allows you to focus on the business

transaction rather than the debits and
credits in the General Ledger

Fictitious sample company used in the

text book

A home improvement and contracting

corporation

A service and a merchandising company

Has two stores, one located in San Jose

and another located in Walnut Creek

Release Level refers to the patches provided

by Intuit to fix the problems found in the
program
To verify the release level, press Ctrl+1 (or F2)

while QuickBooks is running

To patch your software with the latest

maintenance release
Download the latest release by selecting the File

menu and then selecting Update QuickBooks

Follow the instructions on these screens to
download and install maintenance releases in
QuickBooks via the Internet

There are five methods of accessing

the data entry windows:
Menus

Icon Bar
Shortcut List
Navigators
Shortcut Keys

Menus
Icon Bar
Navigators

Menus run along the top of the screen

To open a menu, select the menu name

and then choose the option desired

Allows you to select activities and lists

by clicking icons on the bar

The contents or position of the icons on

the Icon Bar can be modified by
selecting the View menu, and then
choosing Customize Icon Bar

Allows you to select activities and lists

by picking them from items on a bar
located at the right or left of the screen

Click Customize at the bottom of the

shortcut list to modify the contents or
position of the list

QuickBooks has several navigators that

help you work through the program
and understand how it functions.

The Customer Navigator shows a

flowchart of the sales process as well
as several other icons that relate to the
sales part of your business

You may use your mouse or the

keyboard shortcut keys to select the
menu options.

To use the keyboard, press the ALT key

then press the underlined letter of the
desired menu item.

Some of the menu items have controlkey shortcuts.

You can open a previous company file by

selecting it from the Open Previous
Company submenu of the File menu

QuickBooks lists the last few companies

you have most recently accessed,
allowing you to open any one of them

You can set the number of previous

companies on the list from 1 to 20

Transactions are created by filling out

familiar-looking forms such as invoices,
bills, and checks.

As you fill out forms, you choose

names from lists such as the customer
list, the Item list, and the account list.

When you finish filling out a form,

QuickBooks automatically records the
accounting entries behind the scenes.

QuickBooks provides a variety of

support resources that assist in using
the program

Some of these resources are on the

Internet and others are in help files on
disk

To access the support resources, select

the Help menu and then select Help &
Support

You can access onscreen Help by

clicking the How Do I button on any
screen, or by pressing the F1 key.

Depending on what you are doing at

the time, youll get advice from the
Help system that is relevant to what
youre doing

This is known as Context-Sensitive Help

How to install the QuickBooks software

How to work with the practice files in this
book
How to open QuickBooks data files
Editions of the QuickBooks software
Some of the basic principles of accounting
About Academy Glass, the sample
company
How to install QuickBooks Releases
How to use Navigators, Menus, Icon Bars,
and the Shortcut list in QuickBooks
About QuickBooks Support and Help