New Features of QuickBooks 2008

Author: Doug Sleeter and Bonnie Nagayama  Created: Thu Jan 31 21:09:15 2008

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Introduction

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QuickBooks 2008 is an upgrade to Intuit’s market-leading accounting software product. The key new features and enhancements this year are:

The QuickBooks 2008 Product Line

The non-industry specific QuickBooks product line includes three separate software product editions: QuickBooks Simple Start, QuickBooks Pro, and QuickBooks Premier.

QuickBooks Simple Start Edition 2008

Single User: Free
Simple Start Plus Pack: $99.95

Overview

QuickBooks Simple Start offers the most basic feature set and the simplest navigation and terminology. Simple Start is designed for businesses that:

Note:
Though the features are limited, you can open a Simple Start data file using Pro or Premier without converting the data. You can then use the Pro and Premier features to edit/adjust the data and return the file to the client who uses the Simple Start edition. To trade files back and forth like this you must have the same version (i.e., year) of QuickBooks as your client.

New Features in Simple Start 2008

The new features for Simple Start 2008 include:

QuickBooks Pro Edition 2008

Single User $199.95
3-user $549.95 (5-user license discontinued with 2007)

Overview

In addition to all of the features of the Simple Start edition, the Pro edition is multi-user capable and is typically the best choice for small businesses that have 25 or fewer employees.

New Features in Pro 2008

QuickBooks Pro 2008 includes all of the new features of QuickBooks Simple Start plus:

QuickBooks Premier Edition 2008

Single User $449.95
3-user $1,199.95 (5-user license no longer available with 2008)

Overview

QuickBooks Premier (and Premier: Industry-Specific) provides additional features like Sales Orders and Multiple Billing Rates. These editions include:

Tip:
If none of the industry-specific editions is a match for your client’s industry, we recommend the Premier: Accountant Edition. This edition includes all the reports and features of all of the industry-specific editions, plus you can access the Accountant specific features (GAAP reporting, Fixed Asset Depreciation, Working Trial Balance, etc.).

New Features in Premier 2008

QuickBooks Premier 2008 includes all of the new features of QuickBooks Pro 2008 plus:

QuickBooks Premier: Accountant Edition 2008

Single User - $449.95 (included with QuickBooks ProAdvisor Program membership)
3-User $1,199.95

Overview

The Accountant Edition includes all of the features of QuickBooks Simple Start, Pro and Premier plus several additional features designed to help accountants and consultants. The key accountant features are:

New Features in Premier: Accountant Edition 2008

New Features of the Accountant Edition include all of the features in Simple Start, Pro, and Premier, plus an improved Accountant’s Copy that allows more flexibility when working on an Accountant’s Copy of the client’s file.

QuickBooks Enterprise Solutions 8.0

Single User Accountant Edition $849.00 (included with membership in the QuickBooks ProAdvisor Program)
5 Users - $3,000.00, 10 Users - $5,000.00, 15 Users - $7,000.00, 20 Users - $9,000.00
5 User Licenses in excess of 20 - $2,500.00

Note:
QuickBooks Enterprise Solutions clients can purchase an annual support plan that includes technical support and upgrades to new versions of the software. These supports plans are significantly less than purchasing the software at retail. The first year of support is included in the initial purchase price of the software.

Intuit offers industry-specific editions of Enterprise just like those in QuickBooks Premier. QuickBooks Enterprise Solutions is designed for businesses that require more power and capacity from their accounting system.

The big new features in QuickBooks 2008 Enterprise are Linux Support and True Commerce EDI Transaction Manager software.

New Features of QuickBooks 2008 and Enterprise Solutions 8.0

Improved Program Launch Speed

The program launch speed is somewhat improved in QuickBooks version 2008. In our non-scientific test it took 1 minute 15 seconds to open QuickBooks Premier: Accountant Edition 2006. In the same environment using QuickBooks Premier: Accountant Edition 2008 it only took 50 seconds. The 25 second increase translates to a 33% increase in speed. For QuickBooks Enterprise Solutions the difference was even more dramatic: 45 sections to open Enterprise Solutions 6 and only 5 seconds to open Enterprise Solutions 8. Obviously hardware specifications, other software currently running on the system, etc. will all effect results dramatically for individual users.

Accountant’s Copy Enhancements

This feature is available in QuickBooks Premier Accountant Edition 2008 and Enterprise Solutions 8.0.

The main purpose of the Accountant’s Copy, is to create a separate copy of the client data file that allows the accountant to make changes while the client continues working in the original data file. Then, when the accountant finishes, the changes he or she made are “imported” back into the client’s original data file.

In 2008, this feature has been revised to offer an online data transfer alternative (in addition to creating the file locally) as well as several enhancements to improve the overall experience for both the client and the Accountant.

Note:
QuickBooks Pro, Premier, and Enterprise Solutions can create an Accountant’s Copy to send to their Accountant. This is not available with Simple Start or QuickBooks for the Mac. Only Premier: Accountant Edition or Enterprise Solutions: Accountant Edition can open the Accountant’s Copy file.

Dividing Date

To expand the accounting professional’s access to the client QuickBooks data, QuickBooks (version 2007 and above) allows the client to add a “dividing date” to the Accountant’s Copy. When clients create an Accountant’s Copy, they enter a date – such as 12/31/2007. The accountant can make significant modifications to the file that affect the General Ledger data before the dividing date and the client can continue to work in the file with few restrictions as long as the entries affect the General Ledger after the dividing date.

This feature has gone one step further with QuickBooks 2008 as shown in Figure 1 by offering several choices to aid the client in setting the dividing date. The advantage to instructing the client to choose a more recent date is that it gives the accountant more flexibility when working with the Accountant’s Copy of the file. For example, if the client selects a dividing date of “2 weeks ago”, that would allow the accountant to edit transactions up to that date. At the same time, this does not limit the client’s ability to work with the file, assuming the client only needs to enter new transactions, dated after the dividing date.

Figure 1
Figure 1 Accountant's Copy: Dividing Date Window

Online Data Transfer Option

With QuickBooks 2008, you can now transfer the Accountant’s Copy of the data file over a secure Internet connection that uses Intuit servers. When you create the Accountant’s copy, there are now two options:

  1. Save File – This will create a file and save it locally to be transferred to the Accountant via e-mail, flash drive, CD, etc. as was available in prior versions.
  2. Send to Accountant – This is the new online data transfer option. Creating the file is the same, but then there is a window to enter and confirm the Accountant e-mail address. And finally to enter an encryption password as shown in Figure 2. The file is then uploaded to the secure Intuit server and a confirmation e-mail is sent to both the client and the Accountant.

Figure 2
Figure 2 Encryption Password Window

Other 2008 Enhancements for the Accountant’s Copy

Below is a list of other enhancements available in 2008:

Note:
The cleared status can only be sent back to the client when both the client and Accountant are using QuickBooks 2008 products. If the client is using QuickBooks 2007, the cleared status will not be imported back into their file.

New Customer Credit Card Protection Features

This feature is available in all QuickBooks products.

QuickBooks has implemented a Payment Application Best Practices (PABP) as it relates to credit card security. This feature can be turned on to meet the PCI requirements for securely handling and storing credit card information. As part of the process, QuickBooks will be certified by an independent auditor to be PABP compliant.

To enable the feature: First log in using the Admin password; and then choose Company > Customer Credit Card Protection. The pop up window will offer the choice of “enable protection” if currently turned off, or “disable protection” if currently turned on. The next screen will require the secure password and reminder question as shown in Figure 3.

Figure 3
Figure 3 Enable Credit Card Protection

Within QuickBooks, once the credit card protection feature has been enabled all users who have access to credit card information will be required to use a complex password (requires at least 7 characters including one number and one upper case letter) which is changed every 90 days. The 4 most recent passwords will not be available to be used again. For purposes of documenting customer credit card protection use, there is a new report in the Accountant & Taxes section which provides a Customer Credit Card Audit Trail.

Next Generation Help and Coach Tips

These features are available in QuickBooks Pro and higher products.

QuickBooks 2008 has a completely redesigned help system. Open help and it will appear on the right side of the QuickBooks software window. As a user moves from activity to activity the help screen is automatically updated to an appropriate topic.

For example, when the help screen is opened, followed by displaying an invoice, the information in the help window changes from “There are no relevant topics for this window” to appropriate topics relevant to invoicing (see Figure 4).

Figure 4
Figure 4 New Help Window for Create Invoices

There is also a “coach” feature designed to help end users with QuickBooks work flows. With the Coach Tips turned on, there are circles with a letter “i” in them that provide the work flow name when the cursor is placed over them. Click on the icon and the work flow will be highlighted as shown in Figure 5 for invoices.

Figure 5
Figure 5 New Coach Workflow for Create Invoices

Remote Access via Webex Improvements

This feature is available in QuickBooks 2008 Pro and above.

Remote Access using Webex in QuickBooks 2008 has several enhancements including:

Outlook Integration

This feature is available in QuickBooks 2008 Pro and above.

One of the biggest frustrations for QuickBooks users who e-mail forms (invoices, purchase orders, etc.) has been tracking when the forms were sent and accessing the original message. For example, when an invoice is e-mailed, the information is displayed in the history until the invoice is e-mailed again or a payment is received against it. After either of these events occurs, the information is replaced with the more recent e-mail date or payment history. With 2008, there is a new preference to e-mail forms via Outlook or Outlook Express as shown in Figure 6. This allows you to send forms through your own email system where you can track and manage the communication better.

Figure 6
Figure 6 Outlook e-mail preference

Registration for Billing Solutions is not required to e-mail forms using the Outlook or Outlook Express options. Registration for Billing Services is required to send forms via QuickBooks. There is no fee for this basic functionality. For an additional fee additional features are available as listed in Figure 7.

Figure 7
Figure 7 Billing Solutions upgrade to work with Outlook or Outlook Express

Even if you choose to upgraded Billing Solutions there are several features that will not be available if you send forms via Outlook or Outlook Express.

Excel List Import Improvements

This feature is available in QuickBooks Pro 2008 and higher.

The Excel import for customer, vendor, and items has remained virtually unchanged since it was originally released with Version 2004.

New with 2008, is a data import wizard to make the process easier. The wizard provides a spreadsheet template with predefined columns that describe what data fields can be imported. The user adds data to the columns in the spreadsheet and the wizard then validates the data before you save the import file.

As errors are identified, they highlighted along with a description of the error and a proposed solution. After validating and fixing errors, the spreadsheet is saved on the hard drive so it can be imported into QuickBooks.

Figure 8
Figure 8 New Excel Import Wizard

Figure 9
Figure 9 New Excel Import Spreadsheet for Customers

Invoice List for Time and Expenses

This feature is available in QuickBooks Premier 2008.

New with 2008 is a new way for invoicing time and expenses from a list that shows the dollar amounts outstanding for a specific date range.

The first step is to confirm the Time & Expenses Company Preference (note the name change from the previous Time Tracking Preference) has been marked to Create invoices from a list of time and expenses as shown in Figure 10 .

Figure 10
Figure 10 Time & Expenses Preference – Create invoices from a list of time and expenses

With the preference marked, it is possible to choose to Invoice for Time & Expenses from the customer pull down menu or the invoices icon on the Home page as shown in Figure 11.

Figure 11
Figure 11 Home Page - Invoice for Time & Expenses

Next set the date range, if necessary.

Figure 12
Figure 12 List view for Time & Expenses to be invoiced

Click on the Customer:Job to be invoiced. If all charges will be invoiced, click the Create Invoice button. If only specific charges should be chosen, click the check box at the bottom of the screen to Let me select specific billables for this Customer:Job. This choice is consistent with the Add Time/Costs button available on the invoice itself in previous versions.

Although this enhancement will be good for some users, here are two significant issues we find with this feature:

Merchant Services Enhancements

This feature is available in QuickBooks Pro 2008 and higher.

In the past, processing credit card payments from customers via QuickBooks was a single step which combined both the authorization and the actual charge to capture the funds. This is still true when the Receive Payment option is chosen. For a wide variety of reasons, QuickBooks users often want to obtain the authorization to ensure that the funds are available and then later actually process the charge to capture the payment (for the same or a different amount) once the services are performed or the goods have been shipped. New with 2008 is the ability to do just that.

This feature requires that the QuickBooks user has a QuickBooks Merchant Services account for processing credit card authorizations and payments via QuickBooks. Once that requirement has been met, there are multiple ways to access this new form including from the Customer Center as a New Transaction, the Customer pull-down menu, etc. The form itself is comparable to the receive payment screen. The primary difference is that the Customer Payment – Authorization is a non-posting transaction, i.e. the customer balance and General Ledger will not be affected by this transaction.

Note:
A transaction fee will be charged for the authorization but there is not a discount fee or percentage. The authorization is only a temporary hold which will expire (typically in 7 days). The authorization can be used to capture the charge after the temporary hold has expired. However, there may be an additional fee to the merchant.

Figure 13
Figure 13 Customer Payment – Authorization form

Once the goods and services have been provided to the customer and an invoice created, convert the authorization to a captured transaction by clicking on the Enable Payment button that will appear to the left of the credit card icon as shown in Figure 14.

Figure 14
Figure 14 Customer Payment – Enable Payment
Note:
Do not process authorization or capture transactions via the Merchant Service Center (replaces the Merchant Service Manager in previous versions). While this new online view is helpful when researching transactions, any transactions entered via this interface will not be downloaded to QuickBooks.

There is a report that shows all open authorizations (Reports > Customers & Receivables > Open Authorizations). However, at the time of this writing, this report does not seem to work correctly. It includes ALL estimates and sales orders (open, closed, and invoiced in full). We expect this problem will be resolved soon, so make sure to download the latest update for 2008 to see if the report has been corrected. In the meantime, it is possible to modify the report and filter for the transaction type of payment (all other filters are OK) and the result will be the list of Open Authorizations as is expected.

Summary

In summary, QuickBooks 2008 has a few nice enhancements but unless someone really needs one of those features (e.g., Auth-only credit card transactions), it’s doubtful that many clients will feel compelled to immediately upgrade.

We haven’t found any serious bugs, and this version appears very stable after upgrading data files from earlier versions. Overall performance is as good as or better than version 2007. It’s not as dramatically different as the changes we saw in 2006, and hopefully that means there won’t be as many upgrading difficulties as we saw with the 2006 version.

As far as the bigger features, for example the Accountant’s Copy enhancements, these are great improvements moving QuickBooks in the right direction, but it still includes some limitations. For example, the ability for the Accountant to do the bank reconciliation and transfer the cleared status of transactions back to the client is huge, but if the Accountant is not the one doing the bank reconciliation, the fact that the client’s bank reconciliation work will be undone may prove to be problematic. The enhancement of highlighting the data that will be transferred to the client eliminates much of the guesswork, but it seems that there are critical pieces of information that do not get transferred and will need to be cleaned up on the client’s side. For example, when setting up a new customer, only the customer name and company name will be transferred, without any other information from the customer set up screen. When transferring items, only the item name/number, sub-item of, active/inactive status, and account will transfer not the custom fields, description or rate. The Accountant’s Copy enhancements are fantastic, especially the ability to send the file via the Intuit secure server, but our hesitance about the feature is that the accountant may get half-way into an engagement before discovering something that needs to be modified (e.g., a paycheck) cannot be touched.

Our favorite enhancements this year are:

  1. Customer credit card protection, because PCI compliance and data security is of extreme importance to any business that accepts credit cards,
  2. The Outlook integration, because tracking all email in one place is an absolute requirement for most of us,
  3. Merchant Services enhancement to permit authorization as a separate process from capturing the charge, because it is important for a QuickBooks user to ensure they will receive payment prior to providing the goods or services, and
  4. Excel List Import, because information is often available from other sources especially during the conversion process and now it is easier for the end user to set up the spreadsheets to successfully complete the import.



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