QuickBooks ProAdvisor

QuickBooks Advanced Certification
Written by: Lester R Bahr, CPA
Advanced Certified QuickBooks ProAdvisor
Certified Enterprise Solutions Advisor

Certified QuickBooks Advisors are trained and tested annually through Intuit's ProAdvisor Program in the areas represented below. This training when complimented with the CPA's skills will insure you are getting the best possible advice and guidance for your business. The Advanced Certification is a level over and above this annual QuickBooks certification.

The reason it is so important to combine the software skills of a Certified QuickBooks Advisor with the skills of a CPA is that many QuickBooks matters are NOT software issues at all. Rather, they are decisions which have implications related to accounting theory concepts, financial statement reporting and tax filing compliance matters. A non-CPA computer consultant who is not a specialist in understanding IRS and state tax codes and filing proceedures, GAAP and other financial reporting standards will not have sufficient depth of training or experience in these areas to give the proper advice when making QuickBooks setup and processing proceedure decisions for clients.  A special ALERT flag is indicated below for some of these areas as an example, but is by no means intended to be all inclusive. You really need to consult with your accountant as to specific issues that may be related to your company.

How to use this outline: Scan down the list of topics covered in the Intuit QuickBooks Certification Program (or do a page search) looking for situations that pertain to your company or where you need a greater understanding of how to do something or use a feature in QuickBooks. Can't find what you are looking for or want more information? Then contact me here

QuickBooks files: sharing, managing and maintaining data integrity
     Installing and using QuickBooks in a network environment
          QuickBooks Database Server Manager
          Avoiding file corruption problems as a result of unsupported configurations
     Multi user data file access
     Setting up data file security
     Working with different types of backup files
     How to create archive files, purge old transactions to reduce data file size
     Verifying the integrity of a data file
          What options exist to fix file corruption problems and/or rebuild the data file
     Using remote access to QuickBooks data file through WebEx

Managing information accuracy of your QuickBooks data
     Understanding the importance of Opening Balance Equity account, detecting errors
     Understanding the role of using the Undeposited Funds Account
     Using reports to locate changes to previously closed accounting periods
     Using the audit trail
     File cleanup and correction techniques

Using QuickBooks Inventory
     Troubleshooting inventory problems
          Costing and/or quantity accuracy issues
     ALERT: it is important to know what costing proceedure your company uses:
     First in First Out, Last in First Out, Average, Specific Indentication, or other. QuickBooks inventory
     WILL NOT support all these different methods which can pose a problem for an existing company
     already locked into a specific inventory costing convention.
          Alternative solutions to using QuickBooks inventory functions

QuickBooks based financial statements and reports - customization
     How to find the report you need
     Managing your QuickBooks reports using logical organization & batch printing techniques
     How to save your reports as PDF files
     Using ODBC (Open Database Connectivity) with QuickBooks data to share data between applications.

QuickBooks job costing
     Contractor edition
          Determine profitability by job
          Compare actual versus estimated revenues and expense at the job level
          Determine your estimated costs to complete the job
          Generating reports to assist in mangement of your jobs
     Setting job costing preferences based on the type of work you do and the work flow process
     Creating jobs. Without them, it will be impossible to determine if you are making a profit on your projects
     Managing jobs
     Merging two or more jobs together
     Using the time tracking capabilities in QuickBooks

How to handle reimbursable expenses
     Correctly setup preference to track these transactions
     Invoicing your customers for these expenses
     Using items to bill reimbursable expenses (versus recording them as expenses)

Working with estimates, change orders, and invoices
     Using estimates and preparing printed bids to potential customers
     Tracking change orders to jobs, alternate methods to accomplish this.
     Converting estimates into invoices to bill against the estimate
     Using progress invoicing, even down to the specific line item of completion
     How to handle retainage in a way that will not distort your financial reporting
          How to clear retainage once all the "punch list" issues have been cleared
     How to handle customer deposits and then seperately track each deposit

Tracking job expenditures
     Generating job-specific purchase orders to manage the procurement process
     Tracking job-related expenditures
     Issuing inventory to jobs. Avoiding problems associated to inventory tracking complexities
          Perpetual inventory tracking: should you use this method or not?

Accounting for work in process using QuickBooks
     How to understand the different methods of accounting for and tracking w.i.p.
          ALERT: You must get your accountant's advice as to which method you are using
          as there are significant tax and financial statement reporting issues involved with:
               Completed contract method
               Percentage of completion method
               Process costing
          Inadvertently making a change could pose a situation where IRS change approval must be received

Performing other job costing tasks
     How to reconcile your job costs to the Profit & Loss Statement
     Tracking customers that pay vendor bills directly
     Creating a bill payment stub
     Recording a vendor refund
     Using journal entries when job costing
     Reconciling profit & loss totals to profit & loss by job totals
     Preparing an Over/Under Billing Report for percentage of completion projects
          Shortcomings in using the Cost to Complete Summary Report for this purpose
          ALERT: Used to prepare compiled, reviewed or audited financial statements
     Accounting for shared expenses using overhead allocations
          Using class codes to properly burden other classes by account
          ALERT: Discuss with your accountant how overhead formulas are determined 
     How to use the various job costing and item profitability reports
            
Exporting QuickBooks data to Excel
     For enhanced reporting above and beyond whats provided by default in QuickBooks
          Customizing the export process & understanding how to use formulas
     Using Auto Outline to selectively expand or collapse individual groupings of subaccounts
     Enhancing the audit trail with auto-filter
          To better find and identify answers to: Who did what? and When did they do it?

Using QuickBooks to create budgets
     Understanding budgets
     How to gather the appropriate data for creating your budgets
         ALERT: Most of the value in creating budgets is derived from forecasting skills your
          accountant can help you with
     Creating the budgets in QuickBooks versus expanding capabilities into use of Excel
         ALERT: Budgeted Balance Sheets, Income Statements & Cash Flow Statements
         are inter-connected. By changing one assumption, impacts another statement. Your
         accountant will be skilled in understanding this cause & effect scenario
     Turning your budgets and trend reports into insightful graphs

How to profit from QuickBooks using data analysis features
     Using the Cash Flow Projector to predict your cash flows
     Using QuickBooks Business Planner to create a step by step business plan
          RELATED LINK: Refer to our article explaining how to create a business plan

Using the Financial Statement Designer tool in Enterprise Solutions
     Customizing financial statements
     Creating supporting documents using the document editor
     Printing a complete set of financial statements

Troubleshooting accounts receivable and accounts payable
     Understanding the Open Invoices Report
     Troubleshooting A/R balance problems when using cash basis accounting
     Resolving negative / positve offset balances

Troubleshooting sales tax reporting in QuickBooks
     How to properly setup and use sales tax codes and items
          ALERT: State sales and use tax reporting rules and exceptions related to taxable/non-taxable
               products and services can be complicated. Seek the advice from your CPA before setting
               up sales and use tax reporting in QuickBooks
     Reconciling sales tax payable liability report with your balance sheet

Understanding the Profit & Loss Statement (Income Statement)
     Cash versus accrual basis accounting
          ALERT: Discuss this with your accountant as there are pros and cons associated with each
          method as well as IRS reporting requirements based on size and industry of company.
           
Payroll
     Various subscription level services
          QuickBooks Basic Payroll
          Enhanced Payroll
          Enhanced Payroll for Accountants
          Assisted Payroll
          Online Payroll
     Setting up employees, payroll items
     Tracking workers compensation
     Applying payroll burden to jobs
     Setting up scheduled liabilities, depositing collected taxes, filing reports
     Special issues related to payroll setup and troubleshooting
     ALERT: Payroll is an area which requires proper application registration with federal, state and local
     governments, collecting and remitting withheld payroll taxes as a trust funds agent, filing of quarterly
     and annual reports & W-2's. Due to the many rules and stiff government penalties that can result in this
     area, it is strongly advised that you consult with an accountant first. We can advise you of your payroll
     processing options.

Extending the functionality of QuickBooks through integration

     ALERT: Integration with other software applications outside of QuickBooks is technically complex and
     only recommended for advanced QuickBooks users. It is imperative to have a thorough understanding
     of what data is being exchanged, where it is going and what it is updating, and what debit and credit
     accounting entries to what combination of accounts is being generated in the process.

     Exchanging data with Excel
          Using data maps
     Creating ODBC (Open Database Connectiviity) connections with QuickBooks
          Allowing Windows applications to access multiple data sources through a single method
          regardless of file formats.
          Installing the QODBC driver
          Working with PivotTables dynamically linked to QuickBooks data
     Ingtegrating QuickBooks with Microsoft Word, merging data
     Integration with other add-on applications through the QuickBooks Software Development Kit which
          Acts as the bridge that connects QuickBooks to other business software applications.
          Provides a consistent and safe method or reading and writing data to QuickBooks
     Factors to consider when integrating QuickBooks with other applications
          Understanding data fields "mapping" between applications in order to maintain the integrity
          of existing QuickBooks data.
     Tracking transactions posted to QuickBooks by third-party applications.
     Point of sale integration
     Applications that integrate with QuickBooks available through the Intuit Developer Network
          Finding complimentary industry software add-ons through the QuickBooks Solutions Marketplace
               Construction
               Retail
               Nonprofit
               Transportation
               Real Estate
               Hundreds of products
          Finding software products by business function such as:
               Ecommerce
               Wireless and PDA
               Billing and invoicing
               Banking integration, credit card processing
               Shipping