QuickBooks – Know Your Roles

Understanding QuickBooks roles when using QuickBooks is critical, and the failure of an employee to know and understand their role can be highly destructive of the software’s usefulness. An example is the failure to use items or using them incorrectly.

Recording Sales

Items are essential to the correct functioning of QuickBooks. Without the use of items there is very little you can do in QuickBooks. Items are used in recording sales via invoices or sales receipts. On an invoice or sales receipt you will find such item types as inventory item, non-inventory item, sub-total item, sales tax item, payment terms item, and others. Without the use of items you cannot invoice correctly.

Anyone in your company who uses QuickBooks should have at least a basic understanding of items. Those involved in invoicing, accounts receivable, collections, and even sales roles should understand the basic flow of sales information in QuickBooks. They may also need an understanding of Customer Jobs (See Benefits of QuickBooks Jobs).

General Accounting

If someone is involved in general ledger activity or financial statement preparation, they should understand the types of accounts, the use of account numbers, and the impact of various entries such as customer invoices (or cash receipts) and payments, vendor bills and payments, and general journal entries. Like recording sales, they may also need an understanding of Customer Jobs.

Accounts Receivable

Anyone involved with accounts receivable should know how invoicing operates, how receipts and deposits are processed, how to write off bad debts, how to handle partial payments and refunds, and how to issue credit memos. These individuals may also need to understand customer jobs in order to invoice customers correctly.

Accounts Payable

People who work with accounts payable need an understanding of receiving, recording vendor invoices and debit memos either with, without or prior to receipt of merchandise. If customer jobs are being used they will need to understand this in order to assign receipt of inventory and non-inventory items to the correct customer job.

A Summary

I’ve just listed a few of the things that various QuickBooks users need an understanding of depending on their particular role. This by no means encompasses everything, but rather is intended to help you get started on identifying what knowledge is needed. The real point of this posting is to make you aware of the need to implement adequate QuickBooks training. As a Part-time CFO and QuickBooks ProAdvisor I encourage you to get help identify QuickBooks roles if you are at all uncertain and also get help training employees in their various roles if you can’t do this yourself.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.


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