QuickBooks Online Core Certification Self Study Workbook V21.2.2

QuickBooks Online Core Certification Self Study
Workbook
© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2

Important Information
Welcome to your QuickBooks Accountant Core Certification self

study training programme.
This workbook is designed to help you during your training

programme but is not designed to replace official product
documentation or be used as a comprehensive guide to the
QuickBooks product range.
© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 1

Core Certification Self Study Programme
Table of Contents
Module Topic Page
1 Getting Started 3
2 Money In 5
3 Money Out 12
4 Banking 17
5 Tidy Up 26
6 VAT 32
7 Reports 43
8 Tools 45
9 The Mobile App 47
10 The QuickBooks Online Accountant Dashboard 48
Appendices 54

Module 1 – Getting Started
1.1 Guidance on completing this course
Welcome to your QuickBooks Online Core Certification training course for ProAdvisors. The
training course consists of 10 modules, including this introduction module. Each module
contains a number of instructional videos. Within some of the modules there are exercises
to complete.
In many of the modules, there are a number of exercises which you can attempt using the
Sample company.
Where you are expected to complete an exercise from the workbook, you will see that the
exercises are highlighted like this:
All of the exercises in this workbook will be

highlighted in a box like this one!
1.1.1 Exercises
The final video in a module will be the suggested solution to any exercises from that
module. Note that there may be different approaches to completing the exercises and our
suggested solutions, which will just show you one possible approach.
In the ProAdvisor portal you will find the ‘Take exam’ button. We recommend that you
complete all 10 modules before you attempt your core certification exam.
When you pass your exam, you will receive a certificate to say you are a QuickBooks Online
Certified ProAdvisor. This certificate will also appear in your ProAdvisor portal.
1.1.2 Sample company
The Sample company can be accessed by signing into your own QuickBooks account,
selecting the gear icon in the top right and choosing Sample company.
There is a client version of the Sample company which can be accessed by typing
tinyurl.com/ukqbdemo into your browser. This link can be shared with your client so that
they can practice using the software. We do not recommend that you use the client version
of the sample company for this training as it does not contain all the accountant only
functionality that you will need.
You should note that in the client version of the Chrome, Firefox, and Safari are
recommended browsers for using QuickBooks.

1.2 Navigation within your client’s file
QB Accountant Help: Search through

Accountant
logo: Clicking here common queries or Gear icon: Company
tools: some
takes you back to find the contact settings, Lists, Tools,
are accountant
your accountant details for our care and Profile.
only.
dashboard. team here.
Hamburger icon: Client switcher: Search box: Search

Hides/reveals the Move between for reports and
left navigation. your QB clients transactions here.
using this option.
New button: Create all your bookkeeping transactions from here.
Left Navigation: Access your most popular lists and areas from here. Hover over
each icon for information of what’s contained here. Click to get into these areas.
Dashboard: A snapshot of what’s happening in your client’s books. Click on the time filter
to change the period. Click on the numbers or graphs to drill down for more information.

Module 2 – Money In
Objective: By the end of this module, you will be able to process key customer
transactions, navigate your customer centre, and find recent transactions.
2.1 Introduction
Your Client has already created some invoices on a word document. Then he recorded the
income on a spreadsheet. However, this process had some limitations. The invoice template
was plain and unprofessional, and time consuming to create. Then there was a doubling of
effort to copy the information to the spreadsheet to record the income.
Your Client is looking forward to using QuickBooks to create his invoices as he found them
quick to create in the sample company, and loved how they looked. He also wants to be
able to create them on the mobile app when he’s out of the office, and he’s even heard that
he can track when his customers have viewed them, something which he believes will help
him get paid faster.
In addition to using invoices, he also creates estimates which he either emails to customers,
or if he’s with the customer, he writes it out on estimate paper, and gets them to sign if they
agree to progress with the quote.
2.2 The New Button
The New button is your primary tool for recording every different type of bookkeeping
transaction in QuickBooks.
2.3 The invoice
Use an invoice to record sales of a product or service to a customer. A business may allow a
customer to pay at a later date and using an invoice helps to keep track of the money owed
by customers, known as accounts receivable or debtors.
2.3.1 The invoice number
Your QuickBooks invoice will automatically be assigned a number. The first invoice in
QuickBooks will be 1001, the second 1002, and so on. However, if you wish to use your own
invoice numbers instead, you can turn on “custom transaction numbers”. This will give you a
new box on your invoices where you can fill in your own invoice number.
From within the invoice screen, click on the Settings Cog in the top right hand corner and
tick against custom transaction numbers. You can also turn it on in the Sales settings, which
are accessed by selecting account and settings from the Gear icon.

2.3.2 Different save options
All transactions have a number of save options, including the following
• Save
• Save and new
• Save and close
• Save and send
• Save and share link
• Save and share (Whatsapp)
Choose the Save and send option if you wish to send the invoice via email. If you send your
invoices through QuickBooks you can check to see when the invoice has been viewed by the
customer. This can be very useful when you are managing accounts receivable.
Exercise 1 Create a simple invoice
Create an invoice with the following information:
Customer: Adwin Ko
Date: 8/10/2020
Terms: Net 30
Product/Service: Employee Celebration
Quantity: 1
Amount: £500
VAT: 20%S
Check your invoice total is £600
Ignore class, location, and your reference blank
Click Save and New
2.3.3 Adding a new customer
To add a new customer simply begin typing their name into the customer box on the invoice. If you
wish to add their full details click the details option to do so. You can manage your customer list
from the Customer centre.

Exercise 2 Create an invoice and add a new customer
Create an invoice with the following information:
Customer: John Jones and select +Add.

We also want to add the address so click + Details in the next screen.
Add the address details as follows:-
123 Fake Street, London, N1 1AA. Click Save.
Now we can enter the invoice detail as follows:-
Date 9/10/2020
Product/ Service Gold Party
Qty 1
Rate 2,000.00
VAT 20% S
Check total invoice amount is £2,400.
Click Save and Close.
2.3.4 Adding a new product/service
Products and services are used on sales and purchase forms. We refer to products and services as
items. There are 4 types to choose from:
• Stock
• Non-Stock
• Service
• Bundle
When adding a new a new product/service you must choose the following:
• Type of item
• Name
• Income account
Adding additional sales and VAT information for an item can save time when entering transactions. It
will automatically populate on the invoice every time you sell that item.
Adding an Item/Service code and category are optional and can be used to help with reporting, or
organising your products/services list.

Today we will be using Services as Long for Successful Events Limited is a service based business
rather than selling goods.
Exercise 3 Creating an invoice and add a new product and service
Lew Plumbing rented a room on 10th October 2020.
Create an invoice
Room Hire is a new service for Long For Successful Events so we need to add it from here.
In the Product/Service box, type Room Hire. Select +Add Room Hire.
Select the Service tile and add the following details:-
Name Room Hire

Description Room Hire
Sales price/rate £60
Income account Services
Tax 20% S
Click Save and close.
On the invoice:
The room was hired for 8 hours so update the Quantity box.
Check the total is £576.
Click Save and Close.
2.4 The Sales Receipt
A Sales Receipt is used when you receive money straight away for a product or service.
The sales receipt looks very similar to the invoice however you can include details of the payment
and the account the money is deposited to. This is in contrast to the invoice where you enter the
due date of the invoice.

Exercise 4 Create sales receipt
TOP TIP: You can enter gross payments by selecting the option to enter amounts
Inclusive of Tax.
On 11th October 2020 Long for Successful Events provided catering services for Benjamin
Yeung’s party. He paid a total of £900 in cash on the day.
Using the new button, create a Sales Receipt for this cash receipt
VAT: 20%S
Amount received: £900
Deposit the cash to the Current Account
Click Save and Close
2.5 The Estimate
An estimate (or a quote) is a proposal for work you plan to do. The estimate form looks similar to an
invoice, but it has a different purpose. It helps you begin negotiations with your customer.
After you've completed the work and are ready to charge your customer, save time by converting an
estimate into an invoice, which copies the information instead of re-entering it.
Exercise 5 Creating an estimate
Clement’s Cleaners have asked for a quote for a Gold Retreat.
Using the new button, create an estimate.

Estimate Date 13/10/20
Expiration Date 13/11/20
Product/ Service Gold Retreat
Qty 1
Rate 2,000.00
VAT 20% S
Check the total is £2,400.
Select Save and Close.

Exercise 6 Convert estimate to invoice
Clement’s Cleaners are happy with the quoted price for the Gold Retreat and Long For
Successful Events needs to invoice them.
Using the new button, select Invoice

Enter Clement’s Cleaners as the Customer
Add the details for estimate #1006 the right hand window (‘the drawer’) that has
appeared
Invoice date is today
Clement’s Cleaners have also asked Long for Successful events to supply 10 water
bottles and 10 padfolios. Add these to the invoice at the standard price
Check the invoice totals £2,700
Note: If you did not have estimate #1006, you can choose estimate #1004 instead
2.6 Receive payment
When an invoice gets paid, you can use the “Receive Payment” option to record it. Alternatively, you
can receive the payment through the banking feature in QuickBooks. Once you’ve explored both,
you can decide which method works best for you and your client.
Exercise 7 Receive Payment
Adwin Ko has paid invoice #1014 into the current account. We can mark this invoice as
paid using Receive Payment from the new button.
Payment date 16/10/2020

Amount received £600 and tick invoice #1014
Note: If you cannot see invoice #1014, you can receive payment in full for invoice #1013
instead.
2.7 The Sales Centre
You can manage all the information related to your sales, from the Sales Centre on the left
navigation.

The Sales Centre has the following lists:
• All Sales — including estimates, invoices, sales receipts, and billable expense income.
• Invoices — all of the invoices you’ve created.
• Customers — all of the customers you sell to.
• Products and Services — all of the products and services you buy or sell.
2.8 Finding specific transactions
Here are a few ways to find a sales transaction:
• Search bar
• Advanced search function
• Clock icon within a sales transaction
• From the various lists in the Sales Centre (All Sales list, Invoices list)
• By clicking on a customer’s name in the customer list
2.9 Ways to get paid faster:-
2.9.1 Tailor Sales Forms
Six templates are available to pick from to display the sales information to best suit the
company. Adding a company logo, some colour and payment details further tailors the look
and feel of the invoice to get it ready to use. You can also turn on payment options to accept
payments via Paypal or Go Cardless.
From the Gear icon, under Your Company, select Custom Form Styles
2.9.2 Send e-invoices

Sending invoices directly from QuickBooks helps keep track of when an invoice was sent and
viewed by the customer helping to make better decisions about chasing overdue customer
accounts.

Module 3 – Money Out
Objective: By the end of this module, you will be able to process key supplier
transactions, navigate your supplier centre, and manage accounts payable.
3.1 The Bill
Bills are from suppliers which you will pay at a later date. For example a telephone bill.
You can start the bill from the New button, as this is your primary tool for creating all
transactions in QuickBooks. You can also start all money out transactions from the expenses
section on the left navigation.
3.1.1 Creating your first bill
The following information is compulsory when creating a bill:
• Supplier
• Date of bill
• Category
• Amount
• VAT
The category area is where you enter the nominal account, usually an expense or cost of
sales code.
Note that if you have stock tracking enabled, you will also be given an area called “item”
where you can enter the details of the product you are buying.
Exercise 8 Add a simple bill from a supplier’s document
Look at the following bill sent by Cass Hayden of Hayden Insurance Co and use the
information to create the bill in QuickBooks.
Check your total is £1,200

Click Save and New

3.1.2 Copying a transaction
Once you save a transaction you get the option “more” on the bottom ribbon. This is where
you’ll find the option to “copy”. You can copy all the details from one transaction to
another, and then make any changes you need, without affecting the original transaction.
3.1.3 Inclusive/exclusive of VAT
There is a box on your transaction where you can select inclusive, exclusive, or No VAT. You
can change the default selection in your settings.
3.1.4 Attachments
A really useful feature in QuickBooks is the ability to add attachments (PDF, Word doc,
Excel) to your transactions. When creating bills, you or your client can add a copy to the
transaction, making it easy to find, check and refer back to.

Exercise 9 Create a Bill
We have a City Water Co bill for: £200 plus 20% VAT. It is dated 1/5/20 and has a
reference of W1. Please add this bill using the category: Utilities - Water. Check the total
is £240. Click Save to keep the bill screen open.
Exercise 10 Copy a Bill
We can add the next 2 month’s water bills by copying the last one. From Bill no. W1 (if
you closed it, use the search bar and enter W1) select More from the black footer bar
and Copy.
A. Change the date to 1/6/20, Bill no. to W2. The amount is £190 exclusive of VAT
(Total £228). Click Save.
B. Select Copy again and enter Bill number W3 dated 1/7/20 for £210 exclusive of
VAT (Total £252). Click Save and Close.
Check in your recent transactions, you should have four bills, three of them for the
City Water Co.
3.2 The Expense
The expense transaction is used when you pay for something immediately e.g. by bank card
or cash.
The following information is compulsory when creating an expense:
• Payment account
• Date of payment
• Category
• Amount
• VAT

Exercise 11 Create an expense
Create an expense.
Payee Town Electrical and Gas Service

Payment account Current Account
Payment date 13/7/20
Category Utilities – Electrical and Gas
Amount £150
VAT code 20%S
In the Attachment box, add the Town Electrical and Gas Service receipt from your
handouts folder
Check that the total is £180
Click Save and close
3.3 Pay Bills
Use this to pay a batch of bills manually. You can also pay bills through the banking screen
but this can be useful if you have big batch payments, or prefer to record the bill payment
manually.
Exercise 12 Pay bill
Long For Successful events paid Hayden Insurance Co (Cass Hayden) £1,200 on 17/7/20
for Bill 1001.
Mark the bill as paid using Pay Bills option.

Check the bank account is Current
Add the reference ‘BACS’.
Click Save and close
Note: If you cannot see bill #1001, you can pay bill for Hayden Insurance Co which
amounts to £1,500 in full instead.
3.4 The Expenses Centre
All the information about purchase transactions can be found in the Expenses centre. This is
very similar to the Sales Centre, except that the money is going out instead of coming in.

The Expenses centre is made up of two lists: Expenses and Suppliers. The Expenses list
shows all of the purchase transactions in one place. The Supplier list lets you manage
suppliers, their existing transactions, new transactions and batch actions.

Module 4 – Banking
Objective: By the end of this module, you will be able understand the basic principles of
banking in QuickBooks, be able to match and add transactions and create
bank rules.
4.1 Connecting a bank account
One of the first things you should do when you set up a new client is to connect the bank
account to QuickBooks. It’s the quickest way of getting information into QuickBooks, and
can help with timeliness and accuracy of your client’s financial records.
4.1.1 Setting up a live Bank feed
From Banking on the left navigation, your client can set up the bank connection by clicking
on Add account. Enter the bank name and follow the step by step guide to connect their
account. They should contact our care team if they experience any difficulty establishing
that connection.
Once the connection is live, the bank transactions will automatically be fed into the Banking
Centre.
4.1.2 Uploading transactions manually
Alternatively, you can upload a file of the transactions. You can still make use of all the
banking features using this method, the only difference is that you will need to regularly
upload a CSV file with the recent transactions. You could also use this option if clients do not
have online banking.
A CSV file is an Excel file with no formatting. If you have online banking, you should log in to
the bank’s website and choose the option to download transactions in to CSV format.
4.1.2.1 Next steps
New transactions, whether uploaded or fed through will go in to the “For Review” screen.
They will stay there, until we check them and decide where they need to go. They will not
currently be included in the books or any reports.

4.2 Introduction to the Banking screen
Once the transactions are in the ‘For Review’ screen, processing them will be the same for
either a live connection or imported transactions.
For live bank connections, this

figure is the balance on the
account at the last update.
We have 30 transactions
This is the bank balance to review and process.
created by the entries
entered so far to QuickBooks.
4.3 For Review
The For Review screen is effectively a holding area - the transactions are not yet part of the
records or reports.
Details from the bank

statement QuickBooks information Details from the bank
to enter or check statement
TOP TIP: Click on any of the bold column headings to sort the list into your preferred order
to review.
4.4 How to process transactions
Each transaction should be reviewed one-by-one to decide what action should be taken.
To review a transaction, click on the transaction. It will expand, allowing you to categorise a
new transaction, or find a match with an existing transaction.

4.5 Where do transactions go once they have been processed?
Adding or Matching transactions moves them from the For Review list into the Categorised
list.
ADD or MATCH
Excluding a transaction removes it
from the For Review list and will
not be included in the books.
UNDO
4.6 Do I match or do I add?
4.6.1 Match
Matching means QuickBooks has matched the downloaded transaction with a transaction
already entered. Transactions must be for the same amount to have a suggested match.
Multiple matches may be found so all you have to do is review the potential matches and
select the correct one.
Depending on the type of transaction, matching will either create a new transaction such as
a bill payment or an invoice payment. Or it will match to a manual entry already in the
books so you do not create a duplicate.
E.g. A credit transaction of the same amount as an open invoice will show in green as a
match. Selecting Match will create a new invoice payment.

Exercise 13 MATCH
View the “In QuickBooks” balance you see in the blue and white Business Bank
account tile.
Match all the transactions which are showing as a match in the action column,
viewing the “In QuickBooks” balance each time, to see the impact of the match.
Do this for both the Current account and Visa Credit Card
If two records are found for one match, match to the most appropriate one
Once matched, these transactions will move out of For Review and into the Categorised
list.
4.6.2 Add
Adding creates a new record. Add if there are no other records relating to that amount
already in QuickBooks. After you check the payee, category, VAT and amount Add it to the
books.
QuickBooks will start to remember the chosen category when it sees another transaction
with the same Bank details and automatically change it for future transactions. This is called
Machine Learning. It can also set default VAT rates for a category.
The types of transactions you can choose when adding are:
• Money spent: Expense, Cheque or Transfer.

• Money received: Deposit, Sales Receipt or Transfer.
We have already used the majority of these options when entering data today, apart from a
transfer. A transfer moves money between accounts. For example to a savings account or
credit card.

Exercise 14 ADD
From the Current account screen:
Add the £29.06 restaurant expense as follows:
We want to add this as an Expense with the following details:-
Category: Meals and Entertainment

VAT rate: 20%S
Now you will be asked if you would like to set the default VAT rate for Meals and
Entertainment to be 20%S:
Click Yes.
Add the transaction
4.7 Bank rules
Rules can be an excellent way of saving time entering data. You can give instructions to
QuickBooks to recognise details of a transaction and accurately categorise future similar
transactions. Rules can be very clever.
Exercise 15 Setting up a simple rule
Click Add on the restaurant transaction for £50.25
Note that the transaction was already updated to go to meals and entertainment at 20%
Choose to create rule for Restaurant
Next time a transaction hits your client’s bank account with the detail “restaurant” it will
be automatically categorised and you will just need to click “Add”.

Exercise 16 Adding the remaining transactions
Add the following transactions in the Current account and VISA credit card screens:
Bank Account Expense Category VAT

Current Business Check Card Meals & Entertainment 0%Z
Current Email service Computer and Internet Expenses 20%S
VISA Credit Card Coffee Place Subsistence 20%S
Current IT Support Center Business Licenses and Permits 20%S
4.8 Batch Actions
Batching is a way of categorising multiple transactions together and adding in one click. Use
the left hand check boxes to select each transaction. The batch actions which appear to
select are Accept, Update and Exclude.
Exercise 17 Batch Actions
Update and accept the following transactions using a batch action:
Bank Account Expense Category VAT

Current Air Express Travel Expenses 20%S
Current Hotel Travel Expenses 20%S
Current Parking Travel Expenses 20%S
4.9 Creating Rules
Rules can be an excellent way of saving time entering data. You can give instructions to
QuickBooks to recognise details of a transaction and accurately categorise future similar
transactions. Rules can be very clever.

Exercise 18 Rules
Create the following rule:
Rule Name Description/Bank Category Tax code Other things to

text note
Office Supplies Supply Depot or Office Supplies 20%S Do not select the
Supplies Depot auto-add option.
Accept all transactions in the Current account and Visa Credit Card screen which have
come up as a rule
4.10 When do I use Find Match?
A match will only appear automatically if the amount agrees to the penny.
If the transaction relates to a different amount such as a part payment or is for more than
one transaction, you can use the Find Match function to select the records that it relates to.
4.11 What is a split?
The split option allows you to allocate amounts to multiple categories and VAT rates.
Remember that the downloaded transactions are the gross amounts paid so the amounts
you enter for each line will need to be inclusive of tax.
4.12 What if I make a mistake?
If you need to change a transaction, go to the Categorised tab and select Undo against the
relevant one. It will move back to the For Review tab to re-enter.
Exercise 19 Handling trickier matches
In the Visa Credit Card screen, undo the transaction for £1,000 to Bank of AnyCity.
Record the £1,000 Bank of AnyCity transaction as a transfer the Current account.
In the Current account screen, use the find match button to match the deposit of
£8,760 to two separate transactions, an invoice and payment for Benjamin Yeung.
Note that you may need to extend the date range.

4.13 How can I check the data?
From the Gear icon, under Tools, select Reconcile
Use the Reconcile feature to balance the bank and ensure the records are accurate.
Compare the beginning balance and transactions listed in QuickBooks to the closing bank
statement. This should be a quick task if you are using the downloaded transactions as they
will already be ticked as reconciled. You know your bank and your books agree when the
difference between them is £0.00.
It is recommended to complete a bank reconciliation regularly and before finalising a VAT

return.
TOP TIP: You can use the reconciliation tool to reconcile any Balance Sheet account, not just
the bank accounts.
Viewing the History by Account shows all the previous reconciliation reports and is also
where Accountants can undo reconciliations.
Exercise 20 Bank Reconciliation
Reconcile the Current account with the following details:

o Date xx/xx/xx*
o Ending Balance £81,844.66
*The reconciliation date is one month from the last statement ending date. See image
below for where to find the last statement ending date. Add one month to that date and
reconcile to the above balance.

Module 5 – Tidy Up
Objective: By the end of this module, you will be able to void and delete transactions,
utilise the audit log, and prevent changes to transactions.
In this module, we’re going to look at ways of tidying up the data in the system. We do this
to correct errors, and also to improve the quality of information we can see on reports.
The things we will cover during this module are:
• The chart of accounts, including the use of sub accounts

• Using journals for accruals and prepayments
• The reclassify transactions tool
• And the void and delete options
5.1 Managing the Chart of Accounts
The Chart of Accounts is a list of all the available accounts (or categories).
5.1.1 Tools and icons on the account list
Quick reports can be run on individual accounts using the action column selection.
Earlier, we updated the default VAT code from a transaction in the Banking screen. You can
also use the Batch actions feature to update the VAT code for multiple accounts in one go.
The pencil icon can be used to quickly change the name of an account.
The account list can be printed for clients as a reminder of the ones to use.
Use the settings cog to change the columns shown in the list.
5.1.2 Sub accounts

Chunky expenses may need to be broken down further to be more meaningful for our
clients. A new account can be created from within the Chart of Accounts page. Making it a
sub-account of the main parent account keeps related expenses together. You can choose
to collapse or expand sub-accounts when you run a report.
From time to time you may make mistakes or need to change transactions you have already
entered. QuickBooks makes it easy to change transactions and automatically keeps track of
them. It is also easy to prevent changes to certain transactions.

Exercise 21 Add a new category/nominal code
Telephone includes both mobile phone and landline costs. We want to show them
separately in the profit and loss report. Therefore, we will create additional account
codes for them both which are sub-accounts of telephone.
From the Gear, under Your Company, Select ‘Chart of Accounts’.

Using the green button in the right hand corner, click ‘New’
The account details are as follows:
Account type: Expenses

Detail Type: Office/General Admin Expenses
Name: Mobile Phone
Tick ‘Is Sub Account’ Telephone.
Default VAT code: 20% S
Click Save and new
We also need to create the Landline account.
Follow the steps above to create a new Landline sub-account code of Telephone.

5.2 Reclassify transactions
Accountants have access to a range of time saving features when using QuickBooks
Online Accountant. These are accessed from the accountant toolbox icon.
A tool to quickly clean up client’s data. Accounts and VAT

rates can be changed in bulk
Part of the audit log which we viewed earlier in Module 6
Tools to use at the end of a reporting period
A shortcut to reconcile an account
Quick access to useful reports
Set default dates for reports
A shortcut to view the nominal codes
Opens another QuickBooks window
Exercise 22 Use Reclassify Tool
From the Accountant Tools, Select Reclassify Transaction

Account Types: Profit and Loss
Find an account: Insurance Expense – General Liability Insurance
Dates: From 01/1/2020 to 31/10/2020
Tick all ‘Insurance Expense – General Liability Insurance’
Select ‘Reclassify’
Change the account to Insurance Expense

5.3 Journal Entry
Journals can be used to amend data without affecting the original bookkeeping entry. We
therefore use journals to enter accounting adjustments such as prepayments and
depreciation. Journals can be set to recur to create a record in the books automatically,
another time saving feature.
Exercise 23 Journal Entry
Review the Profit and Loss Report using the report period Since 365 Days Ago and
change the option Display Columns by to months and run the report. On the line for Cost
of Sales will be a value of £3,250. Some of these costs relate to the previous month so an
accrual is required.
Using the new button, under the Other column, select Journal Entry.
Create the following journal to accrue for costs that relate to the previous month.
Date: last day of previous month to that with the £3,250 charge
Journal no: adjust
Debit: Cost of Sales £1,250
Description: Costs accrued
Credit: Accruals* £1,250
*Create a new account for accruals:
Account Type Current liabilities
Detail Type Current Liabilities
Name Accruals
Click Save
The saved journal should remain on screen. Use the option at the bottom of the screen
to Reverse the journal – this should automatically date the following month.
Save and close
Review the Profit and Loss Report again the same as before. You should now see one
month with a Cost of Sales value of £2,000 and the previous month to be £1,250.

5.4 Voiding and deleting transactions
From within a bookkeeping transaction, click More in the black

footer bar to see these options.
Voiding a transaction zeros the amount but leaves it in the system so you can still open it.
Deleting a transaction permanently erases it off the system.
Voiding a transaction is almost always preferred over deleting.
Exercise 24 Void and Delete
Delete the most recent bill for Mark Howard: Amount £1,500
Void cheque #2047 for City Water Co
Review the audit log or the voided/deleted transactions from the Accountant
Tools
5.4.1 What is the impact on the books?
Both options can affect your balances and reports and sometimes your account
reconciliations. If the transaction has been reconciled, it may affect the opening account
balance and display a warning. If the transaction has been filed as part of a VAT return, any
changes will be brought forward into the VAT exception report.
5.4.2 Where can I see my client’s changes?
Changes to transactions can be viewed in the Audit Log found under Tools from the Gear
icon. It also records all new transactions and all other actions taken by all users with access
to the books.
The Accountant Toolbox also has a shortcut to view Voided/Deleted transactions.

5.4.3 How can I stop my client making changes?
There will be times when you need to restrict access to certain transactions to prevent
people making changes. For example at the end of the financial year or financial quarter. So
we Close the Books and set a date and a warning and/or password. This can also be found
from the Accountant Toolbox.

Module 6 – VAT
Objective: By the end of this module, you will be able to prepare and validate a VAT
return using the VAT error checker, submit VAT returns to HMRC and record
VAT payments.
Long for Successful Events is VAT registered but has not yet reached the turnover limit
necessary to become registered for Making Tax Digital. We will monitor the situation.
6.1 VAT error checker
The VAT error checker is a built-in review facility for VAT returns which gives you and your
client confidence the VAT figures are correct.
To run your VAT error checker, you must choose an open return. Click the dropdown arrow
next to Prepare return in the Action column, as shown in the screen shot below.
It includes:
VAT snapshot – shows the VAT amount due for the VAT period.
Making sure everything is accounted for – to check through transactions coded as No VAT
(Outside Scope) or those still to review in the banking screen for the VAT period.
Review any unexpected items – to check for duplicates or inconsistent VAT codes.
Take a closer look for peace of mind – a prompt to review the largest transactions in the
period.
Once you have reviewed each section, you can continue to prepare the VAT return by
running the VAT reports.
6.2 VAT reports
There are a number of places to find the VAT reports:
• From within the VAT Centre using the drop down arrow in the ACTION column in line
with a return.
• Using the View Reports button in the VAT Centre
• Typing VAT in the search box

• From Reports, go to the Manage VAT section to see all the available VAT reports.
The Audit Report is a PDF document of all the main VAT reports in one document which can
be emailed to your client. Click the drop down arrow in line with the VAT return period.
6.3 What is the VAT exception report?
When preparing VAT returns, you may see a column titled “Exception Amount.” The
amounts in this column represent transactions you have previously filed for, but have since
been changed, deleted or even added. Small amounts can be filed with HMRC on the VAT
return however large differences should be reported to HMRC on Form VAT 652.
The exception report can be found within the VAT centre or from Manage VAT section in
Reports.
Exercise 25 Download the Audit Report
For the open VAT return in the taxes centre, download the Audit Report and
review the contents.
Exercise 26 VAT error check your return
• For the open VAT return in the taxes centre, run the VAT error checker
• Review and look at each section to see the transactions included e.g. all
transactions with a VAT rate of No VAT.
• Review the largest income and expense transactions
6.4 Preparing the return
View the VAT return figures to be submitted to HMRC by clicking on Prepare Return. These
figures are the total from the VAT 100 report and VAT Exception report.
You can export these figures prior to submission from this screen.
6.5 Submitting a VAT return and MTD
Any business should monitor their taxable turnover to check if they should register for VAT
and now also MTD for VAT.

If a business needs to register for MTD for VAT there are a few simple steps to take to
enable this in your Accountant Dashboard and also QuickBooks Online. Watch one of our
webinars and follow the steps.
Any VAT registered business can save time by submitting the VAT return directly to HMRC
using the e-filing method. Use the Submit to HMRC button and follow the onscreen
prompts.
Once a VAT return is filed, it cannot be unfiled.
Exercise 27 Mark your return as filed
Prepare the open VAT return.

Select Mark as Filed - in the Sample Company we will not be able to submit the
return directly to HMRC.
6.6 Recording a payment or refund in the books
Record payment or refund – you need to manually enter the VAT payment (or refund) for
each VAT period. In the ACTION column select record payment or record refund as necessary.
Ensure the correct bank account is selected and the date entered agrees to the bank
statement.
Once the payment or refund has been paid or received it should appear as a “match” in the
For Review list in Banking.
Exercise 28 Record the payment/refund
For the VAT return you just marked as filed, make the payment, or record the
refund as appropriate. Use today’s date as your payment date.
6.6 VAT control vs VAT suspense
The VAT amount on each VAT transaction is recorded in the VAT control account. When a
VAT return is filed, a journal is automatically posted with the period balance from VAT
control to VAT suspense.
The VAT suspense account shows the total VAT due to be paid or refunded. Recording the
VAT payment or refund zeros the balance in VAT suspense.

6.7 VAT settings and rates
You may need to change the VAT settings for a client after you initially activate VAT.
From Taxes, select Edit VAT in the top right hand corner, then Edit Settings.
Update the VAT period start date, filing frequency, VAT accounting
scheme and registration number. You can also turn on MTD here.
Only three VAT rates are activated initially. Turn on other deactivated
VAT rates and add other rates as required.
TOP TIP:
Selecting the Gear icon on a list shows the list settings.
Tick ‘include inactive’ to show hidden VAT rates.
6.7.1 Global VAT settings
If you prefer to enter gross figures to sales and expense forms, you can amend the default
tax rate selection in the global settings. You can also amend this on individual transactions.
If a client deregisters from VAT you can change the default VAT rate selection to No VAT.
From the Gear icon, under Your Company, select Accounts and Settings. From Advanced
section in Accounting settings, amend the Default tax rate selection.

6.8 Making Tax Digital with QuickBooks Online
6.8.1 What is Making Tax Digital (MTD)?
MTD is part of HMRC's plans to bring UK tax into the digital age. It requires VAT registered
businesses with a taxable turnover above the £85,000 threshold to keep records in a digital
form and file their VAT returns using MTD-ready software such as QuickBooks. The
legislation is required for VAT returns from April 2019.
6.8.2 What are the steps involved?
1. Setting up your Agent Services Account (ASA)
In order to use the new HMRC MTD online service to submit VAT returns on behalf of your
eligible clients, you will need to create an Agent Services Account (ASA). The ASA allows you
to access the new HMRC online service and use a software to communicate directly with
HMRC. You will need this if you are a professional tax agent and support one or many clients
with tax submissions.
To set up your ASA, you will need to use your current Government Gateway ID. As part of
signing up you will receive new credentials. It is these new credentials that you will use to
access MTD services.
NB: You must create your ASA via the HMRC website. You cannot create your ASA from
within QuickBooks.
2. Authorise QuickBooks to interact with HMRC
Once you have set up an ASA, you're required to authorise QuickBooks to interact with
HMRC in order to submit VAT returns on your clients’ behalf.
You can begin this process by navigating to your advanced company settings, found by
selecting the Gear icon from your QuickBooks Online Accountant dashboard. Then follow
the step by step guide.

3. Turn on MTD for your eligible client
Once steps 1 and 2 are complete, you should proceed to your client’s file. You must turn on
MTD for your eligible client from within their VAT centre. You can turn on MTD from within
the settings of your client’s VAT centre.
Alternatively, if you are turning on VAT for your client for the first time, you will be asked
whether MTD is required and you can set it up from here.
Once completed, you will see that MTD is enabled in the top left corner of your screen, and
the open VAT return can now be submitted in an MTD compliant way by selecting the
“Prepare return” option in line with the next return to file.
4. Submit your client’s VAT return in an MTD compliant way
Select “Submit to HMRC” on the VAT return once you have reviewed the figures and put a
check in the box to declare the information is true and complete.

5. Confirmation from HMRC
Once submitted you will get a confirmation email along with the receipt number and
submission details.

6.8.3 Submitting your return using the QuickBooks Bridging Solution
What is a bridging solution?
The QuickBooks bridging solution is a tool which imports the final values (9 boxes) of the
VAT return from a CSV file into QuickBooks from where it can be submitted to HMRC via
their MTD (Making Tax Digital) application interface therefore meeting HMRC’s compliance
requirements.
How does it work?
If you wish to submit your client’s MTD VAT return via our bridging solution, the first three
steps are identical to the process for standard MTD VAT submissions as outlined above.
1. Set up your new Agent Services Account

2. Authorise QuickBooks to interact with HMRC
3. Turn on MTD for your eligible client
Once you have completed the above steps you can now proceed to file a VAT return
through our bridging software by following the steps:
4. Submit your client’s VAT return in an MTD compliant way
Once MTD has been enabled, you will see an option in the dropdown list next to “prepare
return” which says “submit with a spreadsheet”.

Once you select this option, you will be able to import your CSV file which contains the
information from your client’s VAT return. Then you must map the columns for each box of
your VAT return to the relevant one from your spreadsheet.
Once reviewed the final stage will be to confirm that the information is true and complete
and then submit to HMRC.

5. Confirmation from HMRC
Once submitted you will get a confirmation email along with the receipt number and
submission details, similar to step 5 in the standard submission.

Module 7 – Reports
Objective: By the end of this module, you will be able to customise and run important
reports, manage your chart of accounts, and use accountant tools to quickly
amend transactions.
7.1 Standard reports
QuickBooks has many reports set up as standard to help clients manage their business. They
are grouped into sections to make them easier to find. You can click the star beside the
name to add them to your favourite list or use the search box to find a report by name.
There are also specific reports for accountants which you may find helpful when
undertaking tasks for the client on their data such as the year end accounts.
Exercise 29 Basic reports review
From the left navigation select ‘Reports’

Under the standard tab, you will see all the standard reports that are available. These
have been grouped in to sections. Take a look at the list of available reports. Add the
following reports to your favourite list:-
Accounts payable ageing summary

Income by Customer Summary.
7.1.2 Running a Standard report
To run a Standard report, click on the report name you wish to run. Now you can choose the
report period from the list of QuickBooks date range names or enter your own specific
dates. All reports can be drilled into by clicking on a figure which either runs a detailed
transaction report on that figure, or takes you to the record in the books.
7.3 Custom reports
These standard reports can be tailored to your needs and saved so you can easily run them
in future or scheduled to run at chosen intervals. All custom reports can be found in the
custom reports tab.

TOP TIP: If you wish to schedule a report to run automatically, it is recommended that you
use a QuickBooks date range name, rather than specific dates, for example, Last Month or
Last Quarter.
7.4 Management reports
Ready-made Management Reports are available for you to create in a PDF to send to your
clients. You can add other reports to the pack too saving you time at each review period.
If you want to know more about reporting, check out these webinars and the Advanced
course: https://quickbooks.intuit.com/uk/accountants/training/
7.5 Interpreting data, comparatives and data improvement
All data entered into QuickBooks will be included in the annual financial statements but
management reports are likely to be prepared more regularly throughout the year. It is
important that the data is accurate in these management reports so that business owners
like Your Client Razzle can make great financial decisions. Some data may need to be
improved to create more accurate management reports. Running reports with a
comparative may also highlight where costs have increased over time. QuickBooks reports
can be easily tailored by using the options shown below.
Exercise 30 Run a profit and loss and save as a custom
Run a profit and loss report for the period 01/7/2020 to 30/9/2020
Change the option to display columns by month.
Save the report by clicking on Save customisation.
Call the custom report Profit and Loss – Last Quarter
This report is now saved under Custom reports. Left Navigation>Reports>Custom

Reports.

Module 8 – Tools
8.1 Importing lists of data
The import data tool, found in the Gear icon, is a great time saver. It allows you to take
information from an Excel list, and bring it directly into QuickBooks.
The lists which can currently be imported are:
Customers Bank data

Suppliers Invoices
Chart of accounts Bills
Products & services Credit notes
For example, instead of adding customers one by one, create a list of customers in an Excel
spreadsheet and import them all in one go. You can add hundreds of customers to
QuickBooks in minutes using this tool.
Exercise 31 Import data
Import a list of customer from an excel file into your QuickBooks sample company.
To import your data:
Use the Gear icon, under Tools select Import Data

Select the Customer tile and Browse to find the import file. Import the customer
file from where you have saved it locally.
Note that the customer file is available from the downloads folder on your GoToWebinar
control panel. It was also emailed to you in advance of this webinar.
Select the customer file

Click Next. There will be green ticks highlighting what data you are importing.
Click Next
Click Import
Check your customer list to see if the new customers have been added.

8.2 Manage users
Finally, once you have set up the company file for your client, you can add users for the
client and their employees. Full or restricted user access can be granted to a company file.
From the Gear icon, under Your Company list, select Manage Users
On occasions we may get a new client that is already on QuickBooks and they need to invite
us as their accountant. You would advise them to select the tab Accounting firms within
Manage Users and enter the name and email details. This gives us full admin rights.

Module 9 – The Mobile App
Objective: By the end of this module, you will be able to create custom sales forms, use
the mobile app, understand additional features of QuickBooks and grant
QuickBooks access to other users.
9.1 Mobile app
The QuickBooks app is available on your mobile devices – ipads, tablets and smartphones.
Search for QuickBooks in the App store if you’re using an apple device or the Play store if
you’re using Android, and look for the green and white QB logo.
It has many of the features as on the browser version. You can create and send estimates
and even get a signature of approval. Your books are accessible from wherever you are to
keep on top of the bookkeeping. You can attach photos and images (such as expense
receipts) at the click of a button.

Module 10 – The QuickBooks Online Accountant dashboard
10.1 Navigating the QuickBooks Online Accountant Dashboard
Gear icon: Settings, lists, tools, Profile icon: View and edit your profile
for your own practice. Access to for the Find An Accountant directory
the sample company
Add a new client to your list
Manage the following areas:

• Clients – all of your clients in QuickBooks
• Team – members of your
accountancy/bookkeeping practice
• ProAdvisor – benefits and training materials
• Work – the practice management feature
• Apps – Explore recommended 3rd party apps
This is a free QuickBooks licence which you can use to

complete the bookkeeping of your own firm.
A list of all your clients. Those with a QB logo are the clients who are using QuickBooks

10.2 Adding a client
10.2.1 Wholesale or Direct Discount
Choosing the option “Wholesale discount” when setting up a new client means that you, as
the accounting or bookkeeping firm, will pay for that licence. If you choose “Direct
Discount”, it means that your client will be billed directly for the licence. If you choose
Wholesale Discount, you can benefit from a discount of up to 60% off the normal price of
QuickBooks. In addition, there will be no limit to the number of users you can add to that
client file.
10.2.2 Choosing a product
There are a number of different QuickBooks products to choose for your client. You will find
a full list, including the features on the following pages. These details are correct as of the
day of printing, however for the most up to date information, please visit the QuickBooks
website or talk to your account manager.

10.3 Settings
We’ve focused a lot on Long for Successful Events today, but what about your other clients.
There are lots of great features and settings that can be turned on to help record relevant
data.
Do you have any clients who…..
Are a project based businesses

Operate across multiple locations and enterprises
Recharge expenses to customers
Import and Export using other currencies
Need to track stock
Quickbooks can be built to suit these needs. It may involve recording more information
when entering transactions.
From the Gear icon, under Your Company, select Account and Settings
Sales Custom Fields Adds extra fields to sales forms. Select "Internal" to show the
field in QuickBooks; select "Public" to show the field on customer forms.
Stock tracking is available and uses the FIFO basis. It includes alerts for low
stock and uses the item table on purchase forms.
Expenses Tracking expenses by customer allows you to see the Profit and Loss by
Customer.
Making expenses billable adds a Billable column on expense forms which

brings the expenses into the customer’s next invoice.
Advanced Tracking classes and locations helps to breakdown data for further analysis.
Multicurrency can be turned on here if you have financial transactions in

more than one currency
10.3.1 Time saving settings
Turn on account numbers – if you like to use nominal account numbers (as in Sage)
Auto-fill previously entered content – based on the supplier name and can reduce data
entry time.

10.4 Setting up your first client
Some basic set up is required before being able to use the software for bookkeeping. Firstly,
let’s turn on VAT.
Turning on VAT
All VAT registered businesses must turn on VAT. From the left navigation, click Taxes, Set up
VAT.
Key points once VAT is turned on:
• Must be turned on BEFORE data imported

• You can’t turn it off
VAT settings and schemes can be readily changed at any point

APPENDICES
To quickly go to… Press
Customers Page Ctrl + Alt + C
Suppliers Page Ctrl + Alt + V
Lists Page Ctrl + Alt + L
Chart of Accounts Page Ctrl + Alt + A
Search Transactions Window Ctrl + Alt + F
Help Window Ctrl + Alt + H
To enter dates… Press

Next day + (plus key)
Previous day - (minus key)
Today t
First day of the week w
Last day of the week k
First day of the month m
Last day of the month h
First day of the year y
Last day of the year r
Open pop up calendar Alt + down arrow
Calculate amounts in any amount or rate field by using + - * / keys and pressing TAB
Duplicate Tab in order to navigate around data file without losing current screen
Chrome – right click on tab & duplicate
Firefox – ‘Ctrl’ & Refresh screen
Go to Module by hovering on relevant module on left navigation panel and clicking on

mouse wheel

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QuickBooks Online Core Certification Self Study

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2

Welcome to your QuickBooks Accountant Core Certification self

This workbook is designed to help you during your training

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 1

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 2

All of the exercises in this workbook will be

1.1.2 Sample company

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 3

QB Accountant Help: Search through

Hamburger icon: Client switcher: Search box: Search

New button: Create all your bookkeeping transactions from here.

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 4

2.2 The New Button

2.3 The invoice

2.3.1 The invoice number

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 5

All transactions have a number of save options, including the following

Exercise 1 Create a simple invoice

Create an invoice with the following information:

2.3.3 Adding a new customer

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 6

Create an invoice with the following information:

Customer: John Jones and select +Add.

Add the address details as follows:-

123 Fake Street, London, N1 1AA. Click Save.

Now we can enter the invoice detail as follows:-

2.3.4 Adding a new product/service

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 7

Exercise 3 Creating an invoice and add a new product and service

Lew Plumbing rented a room on 10th October 2020.

Select the Service tile and add the following details:-

Name Room Hire

2.4 The Sales Receipt

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 8

2.5 The Estimate

Exercise 5 Creating an estimate

Clement’s Cleaners have asked for a quote for a Gold Retreat.

Using the new button, create an estimate.

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 9

Using the new button, select Invoice

2.6 Receive payment

Exercise 7 Receive Payment

Payment date 16/10/2020

2.7 The Sales Centre

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 10

2.8 Finding specific transactions

Here are a few ways to find a sales transaction:

2.9 Ways to get paid faster:-

2.9.1 Tailor Sales Forms

2.9.2 Send e-invoices

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 11

3.1 The Bill

3.1.1 Creating your first bill

The following information is compulsory when creating a bill:

Exercise 8 Add a simple bill from a supplier’s document

Check your total is £1,200

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 12

3.1.3 Inclusive/exclusive of VAT

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 13

Exercise 10 Copy a Bill

3.2 The Expense

The following information is compulsory when creating an expense:

© Intuit QuickBooks Online Core Certification Self Study Workbook V21.2.2 14