Professional Documents
Culture Documents
By Abby Barboza
Table of Contents
Table of Contents .................................................................................................................................... 2
The Benefits of Using QuickBooks ........................................................................................................... 3
Course Objectives .................................................................................................................................... 3
INTRODUCTION ....................................................................................................................................... 4
Chapter 1 - Setting Up QuickBooks ......................................................................................................... 6
The Interview Process ......................................................................................................... 6
Adding People ..................................................................................................................... 7
Chart of Accounts ................................................................................................................ 9
Adding Accounts ................................................................................................................ 11
Adding Sub-accounts ......................................................................................................... 13
Chapter 2 - Collecting Income ............................................................................................................... 14
Creating a Sales Receipt .................................................................................................... 14
Recording a Deposit .......................................................................................................... 15
Useful Reports ................................................................................................................... 16
Chapter 3 - Financial Statements .......................................................................................................... 17
Profit & Loss Statement (Income & Expenses).................................................................. 17
Balance Sheet .................................................................................................................... 18
Useful Reports ................................................................................................................... 18
Chapter 4 - Tracking Expenses .............................................................................................................. 19
Writing a Check ................................................................................................................. 19
Printing a Check ................................................................................................................. 20
Tracking Marketing Campaigns ......................................................................................... 21
Setting Up Reminders ........................................................................................................ 22
Useful Reports ................................................................................................................... 23
Chapter 5 - Banking Center ................................................................................................................... 23
Balancing the Checkbook and Reconciling Accounts ........................................................ 23
Tracking Credit Cards......................................................................................................... 25
Online Banking................................................................................................................... 27
Transferring Money ........................................................................................................... 29
Chapter 6 Creating a Budget .............................................................................................................. 30
Useful Reports ................................................................................................................... 31
Chapter 7 - Preparing for the Tax Season ............................................................................................. 32
End of Year Closing Procedures ......................................................................................... 32
Backing Up Data ................................................................................................................ 33
Sending Information to your Tax Preparer .... 34
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Course Objectives
Using QuickBooks software, participants will be able to:
Create end of year report and send it to tax preparer all under 30 minutes.
Create a Profit & Loss Statements in 5 minutes or less.
Determine marketing campaigns profitability, while using given instructions.
Compare Bank Statements with QuickBooks registry and produce
reconciliation reports for all bank accounts.
5. Create an Annual Budget that would allow cash flow forecasting.
6. Pay bills online in 10 minutes, using provided instructions.
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2.
3.
4.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
INTRODUCTION
Congratulations on your decision to improve your accounting knowledge.
Understanding accounting is essential to run a successful business. Accounting
allows owners to determine what their company is worth, by measuring profits or
losses. It helps track data and collect information about their enterprise in a
coherent and reliable way. It also standardizes reports regardless of the industry.
According to Gary Keller in his book The Millionaire Real Estate Agent; You need to
understand where your money comes from in order to effectively build your sales
business. Your Budget Model is about understanding what happens to your money
between the time you receive it (as gross revenue) and keep it (as net income). In
short, it is about expenses or, more to the point, minimizing your expenses to
maximize your net income.
QuickBooks is one of the most popular software for non-accountants because it
takes care of the accounting processes behind the scenes, while allowing owners to
dedicate their time to understand the financial statements and take advantage of
the wealth of information they provide.
This course is designed with Realtors in mind and includes step by step instructions
on how to apply this technology to the modern practice of real estate.
There are different Editions of QuickBooks: Online Essentials, QuickBooks for Mac,
QuickBooks Pro, Premier and Enterprise. Following are the features they offer:
QuickBooks Online
1. Track sales & customer payments
2. Secure Back Up on the Cloud
3. Create reports
4. Download Bank Transactions
5. Mobile Access on your Data
QuickBooks for Mac
1. Track sales & customer payments
2. Create reports
3. Download Bank Transactions
4. Quickly locate any account or report with QuickBooks Search.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
5. See reminders and other important tasks in a calendar view. Add to iCal for
Agents
REO Teams
Property
Mangers
Team Leaders
Brokers
QB Online
Mac
Pro
Premier
Enterprise
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Start QuickBooks
Go to File
Select New Company
4.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
5.
6.
7.
8.
9.
10.
11.
12.
Type the Company Name or the file name you would like to use.
Type the Industry. Real Estate Brokerage or Developer.
Select Company Type. For Example: Sole Proprietorship, Single Member LLC.
Type the tax ID number or social security number if you are a sole proprietor.
Do you have employees?
Click Continue
Add the legal name, address and contact information
Click Create Company File
QuickBooks will create the company file and open up the a new window where you can add
people, product, services and bank accounts in order to complete the setup of your QuickBooks
Company File.
Adding People
When setting up QuickBooks, it is possible to import your contacts from Outlook, Yahoo, Gmail or
Excel. There are three categories of people: Customers, Vendors and Employees.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Customers are those who pay you; for example, your broker. Buyers and Sellers can be added as a
subcategory. Please see page 14 for details. Vendors are anyone you pay; for example:
subcontractors, utility companies, landlords, tax agencies, suppliers, etc. And Employees are
those you send a W-2 form at the end of the year. Please check your state law to make sure it is
allowed for a sales associate to pay an employee directly.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
After modifying the screen to eliminate all the unnecessary icons, the screen should be simplified
to look like this.
Chart of Accounts
It is recommended to keep the chart of accounts short and simple because every account
becomes a line on the financial statements. The longer the chart of accounts is, the longer the
financial statements. A simple way to keep the chart of accounts short is by using sub accounts.
The Chart of Accounts is like a big chest drawer, where you will be filing all your receipts. Each
drawer is a different category, for example: office supplies. When you create a new account on
the chart of accounts, you must assign it an account type. Below is the recommended Chart of
Accounts for a Sales Associate. Please follow the table below when adding accounts to your Chart
of Accounts.
Account Name
Category
Business Checking
Bank
Business Savings
Bank
Visa
Credit Card
Commission Income
Income
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Account Name
Advertising and Promotion
Category
Expense
Signage
Expense
Virtual Tours
Expense
Signage
Expense
Magazine
Expense
Auto
Tolls & Parking
Expense
Expense
Bank Services
Expense
Business Entertainment
Expense
Meals
Expense
Entertainment
Expense
Expense
Expense
Division of Corporation
Expense
Expense
Association Dues
Expense
MLS Dues
Expense
Insurance
Expense
Expense
Health
Expense
Disability
Expense
Office Expenses
Expense
Office Supplies
Expense
Phone
Expense
e-Fax
Expense
Expense
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Account Name
Office Equipment
Category
Expense
Printer
Expense
Computer
Expense
Digital Camera
Expense
Professional Development
Expense
Seminars
Expense
Classes
Expense
CDs/DVDs
Expense
Conventions
Expense
Designations
Expense
Professional Fees
Expense
Attorney
Expense
Accountant
Expense
Financial Planner
Expense
RPAC Contributions
Expense
Taxes
Expense
Adding Accounts
1. From the home page, under the Company area, click on the Chart of Accounts icon
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
3. Select New
4. Select appropriate category for the account you want to add and click Continue. (Use Chart of
Accounts on page 9-11 as guide).
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
1.
2.
3.
4.
5.
Adding Sub-Accounts
To add a Sub-Account, please make sure that the parent account is already created.
Repeat the account creation procedures.
Select appropriate category for the account you want to add and click Continue
Name the Sub-Account
Make sure the check mark by Sub account is selected
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
1. Open the Customer Center and make sure the brokerage name is highlighted.
2. Click New Customer & Job and select Add Job
3. Type in all pertinent information and save. The buyer or seller will be indented under the
brokerages name.
4. From the home page select Sales Receipt
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
5. On the top left side of the page, select the customers name.
6. Select the services to be charged to the customer. Ex: Listing & Marketing Services
7. Type the property address on the Memo
8. Select Save & Close
Recording a Deposit
After receiving the check, it is necessary to go to the banking institution and deposit it so it will
reflect on the checking account.
1. Under the Banking Center, select Record Deposits. QuickBooks will open the Make
Deposits window.
2. Select correct bank account and date
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
3. Under the Received From, select from the drop down menu the customers name.
4. Under From Account, select from the drop down menu the income account that is
related to this transaction. For example: Commission Income.
5. Under Memo, type property address or a transaction identifier
6. Select the Check number
7. Select the method of payment
8. Type the amount
9. If you have more than one check, you may add them on the next line
10. Click Save & Close
Useful Reports
1. Sales Graph: This graph will automatically show you the busiest and slowest months of the
year so you can plan accordingly.
2. Sales by Item: Will show totals and percentages on how many listing and how many buyers
you serviced throughout the year.
3. Sales by Customer: will show a list of all transactions and the totals per customer.
1. Go to Report Center
2. Select Sales
3. Select the appropriate report
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
$100,000
$5,000
$105,000
$25,000
$3,000
$28,000
$77,000
EXPENSES
Office Rent
Office Supplies
Telephone
Assistant Services
Utilities
MLS & Board Dues
Total Expenses
$18,000
$5,000
$1,100
$30,100
$2,500
$1,200
$57,900
NET INCOME
$19,100
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Balance Sheet
The Balance Sheet is a financial picture of the company, it shows where the business stands at a
particular date. The Balance Sheet reflects the accounting equation. Assets = Liabilities + Equity.
Balance Sheet
As of Dec 31, 20XX
ASSETS
Checking
Savings
Office Equipment
Total Assets
$16,100
$30,000
$5,500
$51,600
$2,500
$2,500
Equity
Retained Earnings
Net Income
Total Equity
Total Liabilities & Equity
$30,000
$19,100
$49,100
$51,600
Useful Reports
1.
a.
b.
c.
d.
2.
a.
b.
c.
d.
Profit & Loss Statement: To print a Profit & Loss Statement, do the following:
Go to Report Center
Select Company & Financials
Select Profit & Loss Standard
Notice the date.
Balance Sheet:
Select the Report Menu
Select Company & Financials
Select Balance Sheet Standard
Notice the date.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
2. The Bank Account field shows the account from which you are writing this check.
QuickBooks displays the current date in the Date field.
3. In the Pay to the Order of field, type the vendors name
4. Press Tab to move to the Amount field.
5. Type the amount of the check, and then press Tab. Notice that QuickBooks spells out
the amount of the check for you on the line below the payee.
6. Click in the Account column on the Expenses tab, and then choose the appropriate
account.
7. Assign a customer if this expense is going to be calculated on the Profitability Report.
8. Unselect the check mark under billable.
9. Click Save & Close
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Printing a Check
1. In the Banking area of the Home page, click Print Checks. QuickBooks opens the Selects
Checks to Print window.
2. Select the checks that you wish to print. QuickBooks places a check mark by the
selected checks.
3.
4.
5.
6.
7.
When tracking Marketing Campaigns, every campaign needs to be set up as customers. And the
sales that result from such campaign will be listed as Jobs. See page 14.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Setting Up Reminders
QuickBooks now have a calendar where all transactions are conveniently displayed.
When running a business on cash basis, accounts payable or receivable are not used, therefore when
bills are received, they can be set up as reminders if you wish to pay them at a later date.
1. Go to the Company menu
2. Select To Do Lists
3. Select To Do on the left bottom corner
4.
5.
6.
7.
8.
9.
Select New To Do
Select from the drop down menu if it is a Task, Call, Meeting, Appointment, etc.
Select Priority
Select Check Mark to at attach a vendor, customer, lead or employee to the To Do
Select Date Due
Select Status
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Useful Reports
1. Job Profitability Summary: It shows an overall profitability report for the entire list of
customers.
2. Item Profitability: It shows the profitability per service provided.
a. Go to the Report Center
b. Select Job, Times & Mileage
c. Select the appropriate report.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
From the Banking menu, choose Reconcile. QuickBooks displays the Begin Reconciliation window
8. One by one, select the items in the checking window that coincide with your bank
statement. QuickBooks places a checkmark to the left of the item. If you need to make
a correction to a transaction before you reconcile the account, highlight the
transaction, and click Go To. QuickBooks takes you to the transaction and allows you to
return to the reconciliation without losing your work.
9. Once all transactions are selected and the difference amount is $0.00. Click Reconcile
Now. QuickBooks displays the Select Reconciliation Report window.
10. In the Select Reconciliation Report window, select the report you would like to view.
11. Click Display
12. Click OK at the message that QuickBooks displays. QuickBooks displays both the
reconciliation summary and reconciliation detail reports.
13. Examine the reports to learn what they show and then close the report windows
Note: QuickBooks Pro overwrites the previous reconciliation report with data from the
latest reconciliation. If you are using QuickBooks Pro, you may want to print a copy of the
report, print the report to a file, or save the report in PDF format in case you need to
reference it again. (To save a report in PDF format, with the report displayed, choose Save
as PDF from the File menu.)
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Set up a QuickBooks credit card account for each credit card you use in your business. Like any
QuickBooks account, a credit card account has its own register. The register lists all the charges
and credits you've recorded, as well as payments you've made, it works just like any other register.
1. When registering expenses and credit card charges, it is necessary to create a Credit
Card account on QuickBooks. In the Company Section of the home page, go to Chart of
Accounts.
2. Select the account drop down menu
3. Create a new account
4. Select Credit Card and click Continue.
5. Name the account and click Save & Close.
6. Go to the Banking area of the Home page, click Enter Credit Card Charges. QuickBooks
displays the Enter Credit Card Charges window.
7. In the Credit Card field, select the correct credit card from the drop-down list (if its not
already selected).
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
8. In the Purchased From field, select the vendors name from the drop-down list or
simply start typing it. QuickBooks will reduce the selection for you.
9. Type the Amount field.
10. Click the Expenses tab (if its not already selected).
11. In the detail area, click in the Account column and assign the charge to the respective
expense account.
12. Click Save & Close to record the transaction and close the window.
Online Banking
Online banking facilitates the transaction and saves time. There are different levels of online banking;
the availability is going to be determined by the participating banking institution.
From the Banking Menu, select Online Banking and then Set Up Account for Online Services.
QuickBooks will open up a window.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
4. Direct Connect will usually allow you to write checks and make payments directly from
QuickBooks.
5. Web Connect will allow you to download the statement without having direct access to write.
6. You will have to log into your banking institution, in order to do so.
7. Follow the instructions on the screen.
Transferring Money
When moving money among your accounts, it is recommended to use the Transfer Funds bottom.
1. From the Banking Center, select Transfer Funds
3. Revise the check register on both accounts to make sure the transfer was successful.
Useful Reports
1. Deposit Detail: It will allow you to verify all deposits
2. Missing Checks: It will allow you to see all the check numbers and if there is any check
missing.
a. Go to the Report Center
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
b. Select Banking
c. Select appropriate report.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
4.
5.
6.
7.
Useful Reports
1. Budget vs. Actual: It will compare what you budgeted with the actual income & expense.
a. Go to the Report Center
b. Select Budget & Forecasts
c. Select Budget vs. Actual.
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
3. This guide is an excellent check list for all the year-end procedures. Some of the
items on the list will not be applicable to you. Feel free to skip those items that are
not applicable.
4. In order to close your books, you need to go to Edit, then Preferences.
5. Go to the Accounting tab
6. Select the Company Tab
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QuickBooks for Real Estate Professionals 2013 Desktop Edition
Backing Up Data
For everyone who is not using an desktop edition, it is recommended to back up the data on a
regular basis.
1. From the File menu, select Create Back Up
2. QuickBooks open the Create Back Up window. There are two options, an online
backup (fees apply) and a local back up.
3. Select Local backup and click Next
4. Browse to the location in which you would like the back up to be saved and press OK
5. Select Save it now and click Finish
6. QuickBooks will show you the progress and would notify you when its done saving that
the transaction have been successfully completed.
will be created as an accountant copy, while the data after the dividing date will allow you to
continue working on your company file.
To create an Accountants copy, please follow these steps:
1.
2.
3.
4.
From the File Menu select Create a Copy on the company file.
A new window opens up. Select Accountants Copy. Click Next
Select Accountants Copy again.
Select a Dividing Date and click Next
5.
6.
7.
Select the location where you would like to save the Accountants copy
Click OK
Once your accountant has made changes, you can incorporate them into your data
file
From the File Menu, Select Accountants Copy, then Important Accountant Changes
Select were you would like to save the updated file.
8.
9.