The Desktop Accountant

 

January 2002 The Sleeter Group

 

 

Four Editions of QuickBooks Now Available

QuickBooks Basic 2002

QuickBooks Pro 2002

QuickBooks Premier 2002

QuickBooks Premier 2002: Accountant Edition

Sales Tax Improvements

Sales Tax Codes

Adjusting Sales Tax

Sales Tax Reports

The Closing Date

Closing Date Password

The Closing Date Exception Report

Upgrading a “Closed” QuickBooks File

Multiple Estimates per Job

Bank Reconciliation Improvements

Screen Layout

Bank Reconciliation Reports

Condensing and Archiving Data

New Condensing Options

Archiving the Data File

Remove all transactions

941 Schedule B

Payment Application Improvements

Apply a Single Payment to Multiple Jobs

Credit and Discount Application

The “Go To” Button

Exportable Report Templates

Exceptions

Email and Fax Statements and Estimates

New Find Feature

Adding Additional Fields to Sales Forms

Credit Reports

QuickBooks Live Advice Center by Keen

Remote Access/Screen Sharing

Reversing Journal Entries

Conclusions

Our QuickBooks Wish List

A/R Credits

A/P Credits

Accountant’s Review

File Size is a Problem

Open Up the Database

Sales Tax Reports

FORM 941 Schedule B

Floppy Backups Often Don’t Work

Bring back the Macintosh!

Item and Qty Columns on Journal Entries

After-Closing Balance Sheet/Trial Balance

Summary

 

 

QuickBooks 2002, released in December 2001 is a major upgrade to the market-leading accounting software product. Targeted at business with fewer than 20 employees and less than $7 million in revenues, QuickBooks continues to be the hands down favorite of the small business market. This year, Intuit has reached out to the CPA and consulting community by developing a special edition of the software that facilitates the specific activities accountants have in supporting their clients.

^{Four Editions of QuickBooks Now Available}

The QuickBooks product line now includes four separate software products (editions). The new product names are QuickBooks Basic, QuickBooks Pro, QuickBooks Premier, and QuickBooks Premier: Accountant Edition.

QuickBooks Basic 2002

$179.95 ($99.95 upgrade)

QuickBooks Basic is the upgrade of QuickBooks non-pro and is comparable to the 2001 version in its feature set and functionality. The highlights of the Basic product include enhancements to Sales Tax Tracking, Payroll Processing, Accounts Receivable Tracking, Email Form Customization, and Emailable Statements. As with earlier non-pro versions, QuickBooks Basic 2002 does not include Estimates, Job Costing, Time Tracking, or two-sided Sales Items (other than Inventory Items). For a complete comparison of QuickBooks Basic and QuickBooks Pro see the comparison chart on the QuickBooks website. In our opinion, only the most simple businesses should consider the Basic product, and in general we think that nearly all businesses should purchase the Pro version at a minimum. QuickBooks Pro and Premier are reasonably priced and both provide growing companies with the additional features they will need as their bookkeeping becomes more complex.

QuickBooks Pro 2002

$279.95 ($179.95 upgrade) 5-user $799.95 ($649.95 upgrade)

QuickBooks Pro 2002 includes all of the improvements to QuickBooks Basic as well as enhancements to Estimates, Price Levels, and more.

The most significant enhancement for 2002, available in the Pro and Premier versions only, is that software developers can now integrate their software solutions with QuickBooks through an XML link (QBXML). This dramatically expands the feature set and report capabilities of QuickBooks, enabling it to meet the needs of a much broader range of small businesses. For a complete list of software solutions that currently integrate with QuickBooks 2002, go to http://marketplace.intuit.com.

QuickBooks Premier 2002

$499.95 ($379.95 upgrade) 5-user $1499.95 ($1349.95 upgrade)

QuickBooks Premier 2002 is a new QuickBooks product that includes all of the features of QuickBooks Pro plus several additional features such as reversing journal entries, remote access (desktop sharing across the Internet), and exporting of report templates. Premier also includes new reports such as a Reconcile Discrepancy Report showing all changes made to reconciled transactions and a Closing Date Exception Report that shows all changes made to “closed” periods.

QuickBooks Premier 2002: Accountant Edition

$499.95 ($379.95 upgrade) 5-user $1499.95 ($1349.95 upgrade)

QuickBooks Premier: Accountant Edition is a new product that addresses several of the specific needs of accountants and consultants. The Accountant Edition includes all of the features of QuickBooks Premier plus several additional features. It includes a more versatile remote access feature that can access QuickBooks Basic and Pro files and it includes several accountant-friendly reports (e.g. Today’s Journal Entries). It also has an Accountant Navigator screen that includes:

q       Special alerts on QuickBooks technical issues (e.g. new product releases and their effect on the data file).

q       A list of special offers and opportunities available to consultants.

q       A link for providing feedback and suggestions about the QuickBooks program.

q       Links to various QuickBooks features that are commonly used by accountants.

Every accountant who is serious about QuickBooks consulting should obtain a copy of QuickBooks Premier: Accountant Edition. Intuit provides a free copy of the Accountant Edition to members of the Professional Advisor Program.

^{Sales Tax Improvements}

Sales Tax Codes

In previous versions of QuickBooks, the program allowed you to set the taxability of an item, sale or customer. Though these options allow the user to calculate Invoices and accrue Sales Taxes accurately, the reports did not show the level of detail necessary for Sales Tax returns in many states. For example, if throughout the month the company sold tax-free products to government agencies, resellers and non-profit organizations, all of these sales would be combined as a single non-taxable sales total on QuickBooks reports.

Sales Tax Codes allow you to track more detail by assigning a reason for the taxability of each sale. QuickBooks assigns a default code when you mark a customer taxable or non-taxable, but you can add codes to accommodate the different reasons for charging or not charging sales tax.

The Sales Tax Code list works like other QuickBooks lists in that you can add, change, delete or deactivate entries in the list. You can also add new sales tax codes to the list directly from sales forms and customer records. Sales tax codes can be up to three characters and you can create up to 10,000 codes on your sales tax code list.

Sales tax codes replace the “taxable” and “non-taxable” options on both customer records and sales forms. Since codes are either taxable or non-taxable, the code determines the taxability of the sale. Since you cannot accrue sales tax when recording statement charges, statement charges are assigned QuickBooks’ default “non” (non-taxable) sales tax code for reporting purposes.

Each customer record stores the default sales tax code and sales tax item that are to be used on sales to that customer. See the sample customer record below.

As with classes, you can assign a separate code for each line on sales forms or you can assign a single code to apply to the entire sale.

Adjusting Sales Tax

QuickBooks 2002 includes a special sales tax adjustment screen, accessible from both the vendors drop down menu and the pay sales tax window. The adjustment screen allows you to enter the date, the class, the sales tax vendor, the adjustment account, and a memo. The adjustment can be either an increase or a decrease in Sales Tax.

When the user records an adjustment to Sales Tax using the Sales Tax Adjustment screen QuickBooks creates a journal entry to debit or credit sales tax payable.

Though the Sales Tax Adjustment screen is user friendly and intuitive, it does not allow the user to affect either the Sales Tax Item or the Sales Tax Code when making an adjustment. The adjustment screen therefore works great when recording discounts for timely filing, interest, penalties, rounding or other adjustments that will be immediately applied to the sales tax payment, but corrective adjustments should be made using a zero dollar sales form. For more information on using sales forms to adjust Sales Tax Payable see The Sleeter Group’s Consultant’s Reference Guide.

Sales Tax Reports

Sales Tax Liability Report

One of our favorite additions to the 2002 version is that you can now drill down (Quick Zoom) on any column in the Sales Tax Liability report (except Sales Tax rate) to quickly see the detail behind taxable and non-taxable sales, sales tax accrued and sales tax collected. This is important because it allows you to produce a list of all taxable sales for a sales tax audit. This wasn’t possible with earlier versions of QuickBooks.

Sales Tax Revenue Report

The Sales Tax Revenue Report is a new report in QuickBooks 2002 that allows you to view taxable and non-taxable sales by Sales Tax Code. Since many sales tax agencies require a breakdown of non-taxable sales, this report is a powerful new tool to assist with the preparation of sales tax returns.

^{The Closing Date}

Closing Date Password

In QuickBooks versions 6 through 2001 the administrator of the file could change, add or delete transactions prior to the closing date with only a question screen. The screen asked if the user wanted to continue and provided buttons for “yes” or “no” – no additional password required.

Depending on their user setup, non-admin users would either receive the same “yes” or “no” question screen or a message saying that they must be the administrator of the file to make changes to a prior period.

In QuickBooks 2002 the closing date is protected by a separate password. The password is entered through the accounting preferences screen and only the administrator of the file can change the closing date or the closing date password.

Now, when you attempt to change, delete or add a transaction prior to the closing date you are prompted to enter the additional password.

The Closing Date Exception Report

Even if the file is closed (locked), the administrator of the file can always use the password to force changes to a prior reporting period. The administrator can also remove the password protection or change the password. Since this could result in the changes to transactions in periods for which financial statements have been issued, QuickBooks Premier 2002 includes a Closing Date Exception Report that shows all changes, additions or deletions to transactions dated on or before the closing date.

Upgrading a “Closed” QuickBooks File

If you upgrade from a previous version in which you had set a closing date, your closing date carries forward. Since previous versions of QuickBooks did not have a Closing Date Password, QuickBooks will prompt you to create a password during the file conversation process. If you choose not to enter a password during the upgrade, you can always create one later through the Accounting Preferences.

 

^{Multiple Estimates per Job}

Some customers want to see several estimates to weigh various options before signing a contract to purchase products or services. In previous versions of QuickBooks, users could address this issue by creating separate jobs for each new estimate. Then, once the customer decided which estimate to take, the user would delete all of the additional estimates and jobs.

In QuickBooks 2002 you can create multiple estimates for the same job. When the customer accepts one of the estimates, you can either delete the others or make them inactive. Only active Estimates can be used to create Invoices. If you have multiple active Estimates, QuickBooks allows you to choose which one you want to use.

One “good news / bad news” thing about the new Estimate vs. Actual Reports: You can filter these reports by the Estimates’ active status, but you cannot filter the report to include or exclude specific estimates.

^{Bank Reconciliation Improvements}

In 2002, Intuit made some BIG changes to the way bank reconciliations work. See below for details.

Screen Layout

The Bank Reconciliation feature now has a separate screen for entering statement information.

After you fill out this screen and click “Continue” the program shows you the list of uncleared checked and deposits. The list of checks and deposits show side by side, rather than stacked as in previous versions. This, along with the separate statement information screen, allows the company to view more detail and reduces the need to scroll up and down the lists of uncleared transactions.

Bank Reconciliation Reports

The reconciliation date is stored with each transaction, allowing QuickBooks to create special reports based on that date. You can access the reports from both the reconciliation screen and the reports menu. These reports include:

Reconcile Discrepancy Report (Premier and Premier: Accountant Edition Only)

The purpose of this report is to assist the accountant in identifying which transactions were changed after being reconciled.

This report shows all transactions that were cleared on previous bank reconciliation, but have been edited since the last reconciliation of the account. A transaction will appear on this report if it has been modified (no matter how insignificantly) after the last reconciliation. Each time you reconcile an account, the discrepancy report is cleared out.

In the example below, a single reconciled transaction was changed. The original amount was $100. Unlike the Closing Date Exception Report this report does not show the transaction’s previous amount. Therefore, to fix problems found on this report the user needs to refer to the Audit Trail, the source document, the bank statement or the Bank Reconciliation Detail report.

Reconciliation Summary and Detail Reports

These reports show information related to bank reconcilations. In previous versions of QuickBooks you could only create a report for the most recent bank reconciliation, but these new reports allow you to view the details of any bank reconciliation performed during the life of the file.

Warning: When upgrading from a previous version of QuickBooks, QuickBooks creates a single bank reconciliation report that is a composite of all previously cleared transactions. QuickBooks uses the date of the most recent cleared transaction as the statement ending date. The report with a statement date of 02/15/2001 below is the composite of numerous bank reconciliations performed in QuickBooks Pro 2001.

^{Condensing and Archiving Data}

QuickBooks 2002 provides you with more options when condensing the file and during the condensing process the program creates an archive. The archive can be opened like a QuickBooks data file (.qbw) for viewing transactions deleted during the condensing process.

New Condensing Options

The condensing process has always been tricky. Transactions that are uncleared, open Jobs, Inventory Parts, unbilled Time entries and many other transactions are not affected when condensing the file. However, in QuickBooks 2002 you can choose to remove uncleared bank and credit card transactions, transactions marketed “To be Printed,” Invoices and Estimates marked “To be Sent,” and transactions containing unbilled (unreimbursed) costs.

Archiving the Data File

When you condense data in QuickBooks 2002 the program creates an archive copy of your data file before any transactions are removed. The archive file name will contain the date you condensed the file, your company name, and the label “Archive Copy.”

The Archive copy contains all of your data prior to condensing or removing transactions. To create detailed reports for reporting periods that have been condensed you can open the Archive copy just as you would a regular QuickBooks file (.qbw).

The Archive copy cannot be relied upon to restore the data. It is designed to provide the company with historical reporting only. Before archiving or condensing, QuickBooks requires the user to backup the data. This backup file (.qbb) is a separate file from the Archive copy and it is the one you would use if you ever need to restore your old data.

Remove all transactions

The condensing feature in QuickBooks 2002 includes an option for removing all transactions from the company file. At first glance, this may not seem like it’s all that useful, but we love this new capability.

This option will cause QuickBooks to retain lists (e.g. customer names, items and accounts) but will delete all associated transactions. Selecting this option is like starting a new company without having to enter all the names and items over again.

The ability to remove all transactions from a QuickBooks file solves three big problems with setting up new company files:

1.       QuickBooks versions 2001 and 2002 do not allow the user to export the Payroll Item list. Therefore when you need to start over with a new data file, you must conduct a complete payroll setup before you can process payroll in the new file. Removing all transactions from the existing file leaves the payroll setup intact.

2.       Importing information using .iif files is often tricky and problematic. If a user creates any accounts or opens certain screens in the new file before importing the lists, QuickBooks will often render an error message and shut down the import. This leaves the company with a partially imported set of list information. Removing all transactions from the existing file requires no exporting or importing of data and is much more reliable and user-friendly.

3.       If you set up a completely new file, you have to set up new business services such as remote access, payroll services, online banking, and merchant credit card processing. So by using the same file and deleting all the transactions, you’ll save lots of time over a complete new setup.

^{941 Schedule B}

QuickBooks 2002 now prints Form 941 Schedule B. This feature is available in all editions of QuickBooks 2002.

^{Payment Application Improvements}

Apply a Single Payment to Multiple Jobs

In previous versions of QuickBooks when a customer submitted a single payment for invoices from multiple jobs, you would have to use a separate Receive Payment screen for each job. QuickBooks 2002 solves the problem by allowing you to apply a single payment to more than one job.

When you enter a Customer name in the “Received From” field of the Receive Payments screen, QuickBooks shows the outstanding Invoices for all Jobs that are associated with that Customer.

Credit and Discount Application

Credits

In previous versions of QuickBooks available credits appeared as a single amount that could be applied at QuickBooks’ discretion to a Customer’s Invoices. In version 2002 the Receive Payments screen now includes separate discount and credit screens that allow you to allocate specific discounts or Credit Memos to the appropriate Invoices.

To apply a credit to an Invoice, first highlight the Invoice in the “Apply To” section of the Receive Payment screen and then click the “Set Credits” button.

Each credit memo shows separately. The user can then apply one or all of the credit memos to the Invoice. See the figure below.

Discounts

QuickBooks 2002 allows you to discount (i.e. write down) a customer’s Invoice directly from the Receive Payments screen. Access the Discount screen by clicking the Set Discount button.

The “Go To” Button

A new “Go To” Button allows you to open an outstanding Invoice directly from the Receive Payments window.

^{Exportable Report Templates}

QuickBooks 2002 allows you to export and import report templates. The import/export feature allows you to export either a single memorized report or a group of memorized reports. To export a single report, highlight the report in the Memorized Reports screen and select “Export” from the “Memorized Report” menu. To export a group of reports, select the group header and do the same. The export creates a “.QBR” file that can then be imported into another user’s QuickBooks file.

To import a report, open the Memorized Report List and choose “Import Template” from the drop down menu.

When importing a single report, the program allows you to modify the report name and asks you which group (if any) you would like to place the report into.

When importing a group of reports, QuickBooks creates a new group and allows you to accept or change the group name before the import.

Report templates define settings such as formatting and filters, not actual data. When other users run the memorized report in their company files, the report will be based on their data. For example, an accountant can set up a template in QuickBooks Premier or Accountant Edition and then export it so clients can run the report in their own company files.

Exceptions

Non-Generic Filter Settings

Some memorized reports cannot be imported. When a memorized report has filter settings that are specific to your company file, QuickBooks will not let you export it. Examples include reports filtered for a particular account, customer, job, vendor, employee, or item. Because other users are unlikely to have the same accounts (or customers, jobs, items, etc.) that you have, the report will not work in their company file. When exporting reports for other QuickBooks users it is best to use only filters that avoid specific names (e.g. "All balance sheet accounts" or "All names").

Compatibility of Data Files

Occasionally, an update patch affects the compatibility of report templates. In order to import some report templates, it may be necessary to update QuickBooks to the latest release level. When importing a report template from an incompatible data file, QuickBooks provides a warning message.

^{Email and Fax Statements and Estimates}

QuickBooks 2001 introduced emailing of Invoices. With QuickBooks 2002 you can now e-mail and fax both statements and estimates as well.

^{New Find Feature}

A simplified find screen allows you to search for a specific transaction by its transaction type, name, document number, date or amount.

The toolbar for Checks, Invoices, Bills, Estimates, Sales Receipts, Credit Card Charges, Purchase Orders, and Credit Memos all contain a “Find” button that opens the “Simple Find” screen.

You can still use the detailed, traditional find screen for a more refined search. To access the detailed find screen type Ctrl + F and select the “Advanced” tab or select “Advanced Find” from the Edit drop down menu.

^{Adding Additional Fields to Sales Forms}

You can now use the layout designer to add the following additional fields to your sales forms: Phone number, Fax number, E-mail address, and web address. The fields on the sales forms are mapped to fields in the “Company Information” screen.

 

^{Credit Reports}

QuickBooks 2002 provides Dun & Bradstreet credit information for customers.

To activate the QuickBooks Credit Check Service click “Business Services Navigator” from the Company drop down menu and then click “Get a D&B Credit Report.”

Using the Credit Check Service requires an extra fee that can be paid either per incident or through one of two subscription plans. See the pricing chart below.

To run a credit report for a customer click the “Check Credit” button in the customer’s “Edit Customer” screen.

Once you receive a credit report for a customer, you can monitor that customer’s up-to-date credit status directly from Invoice, Estimate and Edit Customer screens. QuickBooks will discontinue the credit monitoring 12 months from the date you ran the most recent credit report for the customer.

^{QuickBooks Live Advice Center by Keen}

QuickBooks Professional Advisors are listed on the Keen website where end users can search for experts who provide technical support. The process works as follows:

1.       Users connect to the Keen website through links in the QuickBooks help screens.

2.       Then, they search in their area for a Professional Advisor that can provide instant help.

3.       Users shop the Advisor's listing description page to view the services provided and pricing.

4.       After selecting the advisor and agreeing on a price for the services, the advisor sends the client a message that includes an engagement letter outlining the agreed-upon services.

5.       If the client needs to send advisors a QuickBooks file or any other data, it must be sent via email, file transfer, overnight mail or some other mailing method.

6.       When the advisors finish the job, they send the client an email detailing the final fee, which is deducted from the client’s “Keen account” after the client agrees to the charge. The advisor receives 70% of the total fee. Payment to the advisor is made by Keen.

^{Remote Access / Screen Sharing}

QuickBooks Screen Sharing gives you the flexibility to work on a client's QuickBooks company file from almost any remote location.

From the Accountants drop down menu select “Remote Access.”

1.       Log in with your Webex username and password.

2.       Click “Start a Session.”

3.       Once you begin the session Webex will provide you with a URL and a unique Session Number. Provide the client with this URL and session number.

 

Once the client has entered the session number click “Request Application Control” (no longer grayed out) and you will be able to view and control your client’s QuickBooks program.

The desktop sharing feature is extremely user friendly for both you and your client and serves as a very effective consulting tool when both parties have broadband Internet access or when working with simple adjustments. Desktop sharing is also an effective way to one-on-one training with your client for small, well-defined training objectives.

Some considerations about the Remote Access feature:

q       The consultant must have the Accountant Edition to remotely access clients on all editions of QuickBooks 2002. The Premiere (non Accountant) edition can only initiate remote access sessions with other Premier editions. The Basic and Pro editions cannot initiate remote access sessions.

q       The consultant must pay an additional fee to use the remote access service (after a free 15 month subscription – from the date you install QuickBooks 2002).

q       The client must have an active Internet connection.

q       Slow dial-up connections will make it difficult for the consultant to do extensive work, but for quick troubleshooting or training sessions, the performance on dial-up connections is quite adequate.

q       For both the consultant and the client to access the data file simultaneously, the client must have at least two licenses of QuickBooks and a local area network with at least two connected PC’s.

See our QuickBooks Wish List for additional comments about QuickBooks and remote access issues.

^{Reversing Journal Entries}

QuickBooks 2002 includes a “Reverse” button on the journal entry screen.

The reverse button creates a separate journal entry transaction with the debits and credits inverted. QuickBooks automatically dates the journal entry on the first day of the following month. For example, if you enter a journal entry dated December 31, 2001 and click the “Reverse” button, QuickBooks creates a separate entry dated January 1, 2002 with inverted debits and credits. QuickBooks also creates the journal entry number automatically, using the number of the original entry followed by the letter “R.” You have the option of viewing and making changes to the reversing entry before saving.

^Conclusions

The 2002 update to QuickBooks shows that Intuit is listening to the market and making every effort to maintain their market leadership. We think they will continue to lead because they pay attention to the big features as well as the less visible issues that make the program easy and efficient to use. Probably the biggest enhancement of QuickBooks 2002 is the opening of the database so that third party software applications can read and write data to the QuickBooks data file. In a future issue, we’ll discuss this area and show how to develop complete information management systems based on QuickBooks.

In short, this is a great new version. We think everyone should purchase at least the Pro edition, but for more comprehensive built-in reports, you’ll want the Premier edition. Accountants and consultants should get the Premier:Accountant edition because of its special features for supporting and troubleshooting client files.

^{Our QuickBooks Wish List}

Shortly after the release of both QuickBooks 2000 and 2001, we published a list of features we want added or fixed in QuickBooks – a QuickBooks “wish list”. The following is a summary of this list along with the improvements:

A/R Credits

What we Wanted

In 2001, we wanted QuickBooks to allow users to allocate specific credit memos to specific Invoices. We asked for the allocation to take place at the time the Credit Memo is recorded, using some type of “Invoice” field on the Credit Memo form.

Did We Get Our Wish?

QuickBooks 2002 addresses this issue by allowing the user to apply specific credit memos to specific Invoices using the Receive Payment screen. Not everything we asked for, but this was very good progress.

Our Updated Wish for Version 2003

In 2003 we wish that QuickBooks would include an “Invoice” field on the Credit Memo screen allowing the user to apply Credit Memos to specific Invoices at the time the Credit Memo is recorded.

A/P Credits

What we Wanted

QuickBooks Version 2001 made two significant enhancements to Bill Credit and Bill Discount application, but we wanted version 2002 to include the following:

q       An option to automatically apply discounts when paying bills without also automatically applying bill credits.

q       The ability to assign a class to discounts.

q       The ability to record discounts to COGS accounts.

Did We Get Our Wish?

None of these wishes were granted. Maybe next year.

Accountant’s Review

What we Wanted

Our complaints about the Accountant’s review copy are centered on the fact that it won’t let the accountant make any changes to the data (only journal entries), so it’s useless for most consulting situations. When the client’s data file needs even minor fixing, the accountant must get a complete copy of the data file, meaning that the client must not enter data while the accountant is working on the file. This is a critical issue and needs to be addressed.

Did We Get Our Wish?

QuickBooks 2002 addresses this issue through its remote access feature, which allows the consultant to conduct desktop sharing with any client who is using QuickBooks 2002 (all editions).

Our Wish List for QuickBooks 2003

Next year, we hope for the following to address the shortcomings of the Accountant’s Review feature:

q       Expand the remote access feature so that both the client and the consultant can access the data file simultaneously without the need for an additional license.

q       Allow QuickBooks users to upload the data file to an online, sharable database, accessible from a local installation of QuickBooks. Allow the client to upload and download their data between their local hard drive and the online database, so they can read the data locally except when they or their accountant needs to remotely access the file. Provide each QuickBooks user who chooses this option with a free additional login name and password for their consultant.

q       Expand the functionality of QuickBooks for the Web so that it is comparable to QuickBooks Desktop.

File Size is a Problem

Our Wish for QuickBooks 2002

When data files grow too large (over about 50MB) QuickBooks slows down. If the file becomes excessively large, running simple reports like a Balance Sheet could take several minutes. There is no partial archive solution, and there is no way to split the file into separate specific years like you can with Quicken. So, every few years (or even more often), users are forced to start over with a new file. This is a rude surprise for many users.

Did We Get Our Wish?

QuickBooks 2002 addresses the data file size issue somewhat by allowing the user remove additional transactions when condensing. These include:

q       Unreconciled bank and credit card transactions.

q       Transactions marked “To be printed”.

q       Invoices and Estimates marked “To be sent”.

q       Transactions containing unbilled costs.

Our Wish List for QuickBooks 2003

q       Restructure the database to provide greater scalability.

q       Allow users to divide the file into separate years (like Quicken).

Open Up the Database

What we Wanted

Several years back we thought Intuit should allow developers to integrate their solutions with QuickBooks. Until this year, the only method of importing data into QuickBooks was through iif files.

Did We Get Our Wish?

Yes. Intuit opened the database to independent developers. Developers can access the QuickBooks Software Developer’s Kit (SDK) by downloading it from http://developer.intuit.com. As the Intuit Developer Network continues to grow, QuickBooks users will be flooded with integratable solutions that meet their industry’s specific needs. Consultants will also benefit by expanding their service offerings to include the setup and support of numerous integrated applications. For a complete list of programs that already integrate with QuickBooks 2002, see www.marketplace.intuit.com.

Sales Tax Reports

What we Wanted

Before the 2002 version, we submitted that accountants need reports showing total taxable sales by invoice number (totals only). We wanted QuickBooks to allow drilling down on the sales figures shown on the Sales Tax Liability report to show a listing of invoices (or cash sales) with the total taxable amount of each invoice.

Did We Get Our Wish?

Yes. And we got more than we asked for! See the section detailing the Sales Tax enhancements above.

FORM 941 Schedule B

What we Wanted

We wanted Form 941B. Semi-weekly filers desperately needed 941 Schedule B.

Did We Get Our Wish?

Yes.

Floppy Backups Often Don’t Work

What we Wanted

For some reason, a very large percentage of users have trouble restoring from floppy backups. Formatting the floppies before using them helps, but there is a problem and it appears to be a QuickBooks issue.

Did We Get Our Wish?

Only time will tell. Through our workshops, products and Certified Consultants Network we have been in touch with thousands of QuickBooks consultants over the years. From our surveys we found that QuickBooks 2001 provided no more stable floppy backups than the previous versions. We are tracking QuickBooks 2002 to see if these problems continue.

Bring back the Macintosh!

What we Wanted

Apple has made serious improvements to their product line and there are hundreds of thousands of Macintosh users who want to use new versions of QuickBooks. Version 4 is so far behind that these users are really left in the dust.

Did We Get our Wish?

No.

Item and Qty Columns on Journal Entries

A new wish we’ve added this year that should have been on our list all along is the addition of two new columns on journal entries. Adding an Item column and a Quantity column would allow journal entries to be used to adjust item detail at the same time you are adjusting accounting data.

After-Closing Balance Sheet/Trial Balance

Another thing we’d like to see is the ability to create after-closing financial statements. Currently, the only way you can get an after-closing financial statement is to create your report on the day after the end of the year (e.g. Jan 1). This is sometimes inaccurate because Jan 1 transactions will affect the report. We envision an option or button for the balance sheet and trial balance that would say “After-Closing”. This option would cause Retained Earnings to be adjusted for the net income of the year, and the Trial Balance would show all the income and expense accounts with a closing transaction on the last day of the fiscal year (e.g. 12/31).

^Summary

QuickBooks 2002 addresses several of the more critical issues on our wish list, and we are extremely excited about the new version. We are most excited about the Intuit Developer Network and the ability of QuickBooks 2002 (Pro and above) to integrate with scores of additional programs. This single enhancement ensures QuickBooks’ place in the small business accounting market for years to come.

The single biggest complaint we have is about the bank reconciliation reports. Intuit has acknowledged the problem and they are working to fix it very soon (hopefully by the 2^nd Quarter of 2002), so until then, you’ll have to use the workaround we suggest in this article. After this problem is fixed, we will have no hesitance in recommending the 2002 version.

The Desktop Accountant

Copyright © 2002 – The Sleeter Group, Inc.

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