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QuickBooks 2012: Better Financial Management

As it usually does this time of year, Intuit has introduced new versions of its Pro and Premier products. QuickBooks 2012 promises to help you get better organized, save steps, and acquire more in-depth financial insights.

The new Express Start is designed for businesses that want to blast through setup and start entering customers and invoices. You have two other options though.

Advanced Setup is the old EasyStep interview that solicits more details. You can also open an existing file or convert data from Quicken or other accounting software.

Express Start requires minimal input. Company name, industry, company type, tax ID, and contact information is all that’s required. After you save your company file, it lets you start adding or importing customers/vendors/employees, products/services, and bank accounts.

Figure 1: Express Start simplifies company setup

An Activity-Driven Calendar

QuickBooks’ Reminders keep you apprised of each day’s tasks, but they don’t provide any information about the past or future. QuickBooks 2012 solves this problem with its new Calendar. When you enter an appointment, to-do, or key business task (invoices, bills, purchase orders, etc.), it appears in the calendar. You can display a graphical view of the month that tallies activities for each day and lists them below. Daily and weekly views are in list form and links open the original documents.

Figure 2: The new Calendar displays daily, weekly, and monthly views of your financial transactions

Save Excel Formatting

Once you’ve formatted a QuickBooks report in Excel, it’s frustrating to have to reformat it each time you run it for different time periods and/or with your ever-changing content. Excel Integration Refresh simplifies this process. You can now export a report to Excel, make formatting changes and save them, and then reapply them later to the same type of report using different date ranges and your updated QuickBooks data. Acceptable alterations include:

Row and column header font formatting
New formulas
Renamed column and row headers, and report titles
Resized columns
Inserted columns and rows
Inserted formula text

You can do this by opening your report in QuickBooks and clicking Update an existing worksheet, or by launching your report in Excel and clicking the QuickBooks tab on the toolbar, then the Update Report button.

Figure 3: This window opens when you click Update Report in Excel

A New Report Community

There’s always room for more report formats. QuickBooks 2012 offers a library of Contributed Reports, variations created either by Intuit or your fellow users. You can select one of these, like Customer Sales By Quantity By Item Detail and instantly populate it with your own data.

You can sort these templates by industry and rating, and view them as a list, in a grid, or in the Report Center’s Carousel view.

Centralized Operations

QuickBooks 2012 also saves you time with its new Centers. The Inventory Center works similarly to those available for customers, vendors, and employees. It’s a clearinghouse of item records and transactions that can be viewed and sorted. You can also do inventory housekeeping tasks here, like adding items and launching transactions.

The Lead Center helps you carefully track new leads that you either paste in from Excel or enter manually. You can add to-dos and notes to contact records, and convert them into customers.

Upgrading Can Be Tricky

Intuit has included other, smaller time-saving organizational and reporting tools in QuickBooks 2012, like One-Click Transactions, which lets you create related transactions from existing ones (i.e., invoice to credit memo) with one click.

There’s nothing especially difficult about using most of QuickBooks 2012’s new features. But upgrading and setup are sometimes quirky, and the Excel Integration Refresh tool has a learning curve. We’re happy to help you start your company file on the right foot or get acclimated to this latest version.

Figure 4: Track your leads and convert them into customers in the new Lead Center

Protecting Your QuickBooks Data Against Hackers

Every month, we provide information on how to better use QuickBooks. By implementing the best methods for managing your accounting data, you can actually improve your financial bottom line.

But all of your careful work is for naught if a malicious hacker gets in to your computers, or if you experience identity theft by an employee. Social Security and credit card numbers, home phone numbers and addresses, an excruciatingly detailed profile of your company – all can be lost in the time it takes to realize that it’s gone.

Are you guarding all of that precious data? QuickBooks provides ways to help you. Some are automatic, but you have to initiate others.

Control Cyberspace

QuickBooks displays some screens using Internet Explorer (IE); the browser opens when you access certain features. It’s important that you set the security level correctly so that you’re not exposed to shady outside influences.

To check your configuration, launch IE and go to Tools | Internet Options. This window opens:

Figure 1: Be sure that your Internet zone in Internet Explorer is set to Medium.

Click on Security, then on Internet, and move the slider bar to Medium (Intuit recommends this). Click OK and close IE.

Your best defense is a good antivirus program. If you’ve hesitated to buy one because of the price or the software’s intrusiveness, consider Microsoft Security Essentials. It’s free, it’s good, it can be used in businesses that have up to ten PCs, and it guards against viruses, spyware, and other malicious software (malware).

Limit Access

If you have QuickBooks on a network, or multiple people sign in and out on the same PC, you will want to limit the access of employees to only their work areas. Go to Company | Set Up Users and Passwords | Set Up Users, and you’ll see the User List window. Click Add User, and enter a username and password in the next window (if you’ve already set up passwords but not permissions, highlight a name and click Edit User). Click Next.

Unless the person should have full access, choose Selected Areas of QuickBooks and click Next. You’ll see this:

Figure 2: As you go through each module, you’ll select an access level for the current employee.

You’ll work through a series of windows, including Inventory, Checking and Credit Cards, and Payroll and Employees, indicating in each window how much access should be granted to the user. When employees sign in, they will only see the allowed screens.

Payroll – A Special Case

Be very careful when you assign Payroll permissions. Employee Social Security numbers are stored there, and anyone granted full access can see them. If you’ve assigned Selective Access to an employee for creating and printing payroll transactions and reports, he or she will still be able to view them on printouts and in reports.

To prevent this, go to Edit | Preferences and click the Payroll & Employees tab, then Company Preferences. At the bottom of the window, you’ll see a line that reads Display employee social security numbers in headers on reports. Make sure this is checked only if you want the numbers to appear.

And, of course, you may not want Social Security numbers printed on paycheck stubs and vouchers (though you may not have a choice; the state of California, for one, requires it). In this same window, click on Pay Stub & Voucher Printing to make your wishes known. You’ll see this:

Figure 3: Do not check the box next to Employee social security number unless you want it printed on paycheck vouchers.

Intuit and You

Intuit, publisher of QuickBooks, works hard to keep your data safe. The company:

uses a data encryption technology similar to that used by major financial institutions for QuickBooks’ online banking and online vendor payment tasks
does not know your passwords
offers a subscription-based, automatic online backup service, so that your files are safe in case of loss or damage (QuickBooks 2011 only; QuickBooks Online Backup works with all versions)

Figure 4: Regular backup is more than a good idea. It could save your business someday.

But it’s important that you do your part. Use passwords wherever offered, make them complex, and change them frequently. Maintain regular backup files on your own if you don’t subscribe to Intuit’s service. Cross-train employees so that if you experience a disaster, more than one employee knows the ropes. Know a lot about who is managing your network.

To be doubly safe, ask us to evaluate your whole system’s security profile. We can help you if your business suffers a breach, but better to try to avoid it ahead of time.