QuickBooks Accounting: Starting QuickBooks Guide
QuickBooks is an accounting software that is good for both small, medium size, and growing businesses. Its powerful tools help businesses in tracking expenses, invoices, reports, and much more.

Starting with QuickBooks

From the start menu, go to programs then click on QuickBooks. If your computer has a shortcut on the desktop, double-click on it. The previously opened company opens.

How to create your own company

Click on the file menu & select new company. The Easy Step Interview appears, Click next to open the General section click next, and indicate you are not upgrading, then skip the interview.You’ll be prompted to enter the company name and the start of the financial year. Click next and choose the business that matches the data you are about to enter into the System. Save the Company.You can do the following in the setup company:-
  • Create customers
  • Create suppliers
  • Enter Items & Service Items
  • Create Bank Accounts
  • Setup Employees
  • Create Assets And Liabilities
  • Create Invoices, Receive Payments and make Deposits
  • Create Purchase orders, Receive items, bills and make Payments
  • Make Refunds and Credits for Customers
  • Create And Print Reports


When you make a sale, you fill in one of QuickBooks sales forms. QuickBooks provides an invoice forms for invoices you send to customers, and a sales receipt form for cash sales. In both forms, QuickBooks makes it easy to add line item entries.  Simply pick the line item you want from the item list and QuickBooks automatically inserts a description of the item and its price.

Filling a sales form

  1. Display the sales form you want to fill in
  2. If the customer Job field is blank, enter the name of the customer (and job, if appropriate)
  3. (Invoices and credit memos only). If you have more than one accounts receivable account, enter the name of the account you want to use for this sale.
If you have only one accounts receivable account (most companies have only one) the account field does not appear on the form
  1. (Optional) from the template list, choose a different template to use with the form.
  2. (Optional) assign a class to the sale
  3. Fill in the To part of the sales form
  4. Fill in the line item area
  5. (Optional) Enter a message for your customer in the customer field
  6. (Optional) Change the sales tax shown in the tax field

More about sales tax

  1. (Optional) enter a memo for this sale

The memo appears on statements you send statements; the memo is a reminder to you.  It does not appear on the printed form

  1. Specify when you want to print the sales form

To print this sales form later with others that you have entered, make sure that the “To be printed” checkbox is selected.

To print the sales form now, click print

  1. Record the sale

Click next to record a sale

To record the sale and close the windows, click OK.

Recording an invoice payment

  • When your company receives a payment for an invoice you have sent to a customer, you use the Receive Payment window to apply the payment to the invoice.
  • When not to use the Receive Payment Window
  • When the customer pays in full at the time of the sale (enter a sales receipt instead)
  • When you receive a partial payment at the time you write an invoice (enter a payment item on the invoice)


  1. From the activities menu, choose Receive payments.
  2. Complete the fields in the top half of the window. If the payment is for a particular job on your customer list, make sure you choose the job as well as the customer’s name in the customer job field.

How to fill in the fields

  1. If this is the first time you are entering a customer payment, indicate how you want QuickBooks to deposit customer payments.
Grouped with other payment, click “Group with other undeposited funds”.  Click Deposit button to, enter bank name where you want QuickBooks to make deposit of the payment.
  1. (Optional) change how QuickBooks applies the payment
  2. Record the payment
To record the payment and then enter another, click next.To record the payment and close the windows, click OK.

What is Undeposited Funds?

If you chose “Group with other undeposited funds”, QuickBooks holds the payment in your undeposited funds account.  To deposit the payment, you must choose make deposit from the activities menu and select the payment.  QuickBooks will transfer from un-deposited funds, the payment amount when you record the deposit.If you chose “Directly to a bank account”.  QuickBooks bypasses undeposited funds and deposits the payment directly in the bank account you specified.

Steps of applying a Discount for early payment in QuickBooks

When you enter a customer payment, the Receive Payment window has a “Discount Info” button.  You can use this button to give the customer a discount if your payment terms include a discount for payment before the due date.  If a customer sends you full payment amount as on the invoice, you can give a discount.
  • Enter the customer’s payment in the Receive Payments windows
  • Click the line of the invoice to which you want to apply the discount
  • Click Discount Info
  • (Optional) change the amount of the discount
QuickBooks will calculate suggested discount amounts on the basis of payment terms with the customer, and the date of payment.  You can enter any discount amount you choose; you don’t have to use the suggested amount.
  • Enter the name of the account you use to track the discount you give to customers
  • Click OK.

Instructions of how to handle down payments and overpayments in QuickBooks

If a customer sends you more money that he or she owes, there will be an amount left over at the Receive payment windows after you have applied the payment to invoices. QuickBooks keeps track of the credit amount so you can apply it the next time the customer owes you money.
  • Enter the payment in the Receive payment windows
Caution: If you are recording a down payment, and you are doing more than one job for the customer, be sure to specify both the customer name and the job name in the customer job field.  This ensures that QuickBooks will apply the down payment to invoices for the correct job.
  • For an overpayment, apply as much of the payment as you can to outstanding invoices.
  • Note the leftover amount in the unapplied amount field.
If the payment is a down payment and there in no invoice yet, the entire payment amount is displayed in the Unapplied Amount Field, QuickBooks holds the unapplied amount with this customer’s name so that when you do have an invoice for this customer, you can apply the down payment amount.
  • (Optional) click Print Credit Memo to give the customer a receipt for the down payment or overpayment.
  • The credit memo is for your customer only. It does not become part of your financial records in QuickBooks
  • Click OK.

How to deposit customer payments in QuickBooks

  • From the activities menu, choose make deposit
  • If you have payments to deposits, click the ones you would like to deposit now
  • Click OK
  • In the make deposits window, select the account you would like to deposit into
  • In the detail area of the make deposit windows, enter any amounts to deposit that are not payments you received through sales to customers.
  • Click OK.

How to record a return in QuickBooks

When a customer returns merchandise or cancels an order, record the transaction in QuickBooks by writing a credit memo.  If you wish, you can also write a refund check to the customer
  • From the activities menu, choose Credit Memos/Refunds
  • Fill in the window, entering the returned items in the line item area
  • (Optional) Enter a customer message if you plan to print the credit memo for your customer
  • Record the credit memo
To record the credit memo and then enter another, click nextTo record the credit memo and close the window, click OK

How to write a refund check in QuickBooks

When you record a return from a customer, click the refund button in the Create Credit Memos/refunds window to write a refund check.Instructions
  • Display the credit memo for the amount you would like to refund
  • Click refund to create the refund check
  • Make sure all the information on the check is correct
Caution: Leave Accounts Receivable as the account in the detail area of the refund check so that QuickBooks is able to account for both credit and refund properly.
  • (Optional ) Select the “To be printed” check box to print this check later, or click print: to print the check now
  • Click ok
  • From the Activities menu, choose Receive Payments.
You may have recorded credit memo and also the check but you will still need to link the credit memo for QuickBooks to correctly track transactions. You use the Receive payments windows to connect the two.
  • Choose the customer to whom you just wrote the refund check
  • On the refund check line, enter the check amount in the payment column then press tab.
  • Click OK
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