You can add and correct the information stored in QuickBooks lists as
you process transactions. However, if you're doing the QuickBooks setup
for your client, you should add the most common list items to
increase efficiency and accuracy when the client enters transactions.
When setting up the following lists in a QuickBooks company file, consider
Whether the client sells products or services, any line item included on an
invoice must be on the QuickBooks
Add an item for each type of charge that appears on an invoice.
If the client charges sales tax, add a sales tax item for each type of tax
collected. Make sure to indicate which sales tax is the most common. Complete
all the fields in the New Item
window, so that invoices and sales receipts are entered accurately.
Items are how you associate an income account with goods or services a
company invoices for, so it's important that you set up items correctly
to generate meaningful financial reports.
Customers & Jobs list
Determine whether the client will want to sort the list later based on the
type of customer. If so, create customer types. For example, you can use
customer types to distinguish between corporate and individual customers, or to
distinguish between wholesale and retail customers.
If the client wants to track jobs (or projects) for each customer, make sure
you know the amount owed to the client for each job as of the QuickBooks
Complete all of the information requested in the
Customers & Jobs list. If the customer
purchases for resale, obtain the resale number and enter it in the
You can set up different price levels and associate them with specific
customers. Each time your client creates an invoice, credit memo, or sales
form for that customer, QuickBooks will use the price level associated with
that customer to calculate the rate
for service, inventory, and non-inventory items.
For a new QuickBooks company, you need to enter the opening balance for each
customer as of the client's QuickBooks start date. You can enter an
opening balance when you add each customer to the Customers & Jobs list, or you can
create a summary invoice for each customer using an item called "opening
balance." Assign the item to the appropriate income account. Each invoice
should have a date earlier than the QuickBooks start date.
QuickBooks enables you to create custom fields for customers. For example,
if your client wants to track additional information for customers, such as the
customer's administrative assistant or region, you can add custom fields
to the Customers & Jobs list.
Before adding the vendor information, determine whether the client will want
to sort the list later based on the type of vendor. If so, create vendor
types. For example, vendor types allow your client to distinguish between
vendors who provide business supplies and those who provide construction
For a new QuickBooks company, enter the opening balance for each
vendor as of the client's QuickBooks
start date. You can enter an opening
balance when you add a vendor to the Vendor list, or you can create a summary
bill for each vendor in the Enter Bills window. If you create a summary bill,
assign the amounts to the appropriate expense account. Each vendor bill should
have a date earlier than the QuickBooks start date.
In the Vendor list, use the Account field on the
Additional Info tab to record the client's account
number with the vendor. QuickBooks puts this information in the Memo field
of checks that pay bills from this vendor. If the
vendor should receive a 1099-MISC at the end of the year, click the Additional Info
Info tab and select the Vendor eligible for 1099 checkbox.
If you want to store additional information about vendors (such as region),
you can use a custom field.
Payroll Item list
Use the Payroll Item list for
everything that affects the amount on a payroll check and for every company
expense related to payroll. When you indicate you want to use payroll,
QuickBooks creates an initial Payroll Item list with items for wages and
However, you'll need payroll items for all the other taxes you enter,
as well as for other payroll information, such as bonuses, commissions, and
company-paid contributions to health plans.
You can set up payroll items for state taxes (state withholding, state
disability, and state unemployment), local taxes, and/or custom additions and
deductions for your clients to ensure the payroll information is accurate.
If your client will be using QuickBooks for payroll and has more than one
or two employees, set up employee defaults. This lets you set up several employees quickly, because you use the
defaults to enter information that most employees have in common (such as
payroll period and federal and state tax information). Then, when you click
Employee Center to set up individual employees, many of the fields will be
prefilled with the information you entered in your employee defaults.
To add the information for each employee in the Employee list
Select an employee in the list and click Edit Employee
in the Employee Information area.
Fill in the appropriate fields.
Provide other pertinent information on the Additional
Info tab. Add any custom fields for additional employee information
you want to track.
Click the Payroll Info tab to set up employee
payroll information. Click Taxes and select the
Federal and State tabs
to enter the withholding allowances and filing status. If the employee
has regular additions and deductions (and you haven't entered them
in your employee defaults), you can enter them here. (You can also modify
each paycheck at the time you run payroll.)