Setting up your preferences in QuickBooks to properly reflect the way you do business is important, in fact critical, to accurate transactions which lead to accurate financial statements.
I encourage you to make time to review your preferences in your QuickBooks company file.
Preferences are located under the Edit Menu. They are broken down by two tabs – My Preferences and Company Preferences.
My Preferences are your personal preferences that affect how QuickBooks works for you, but not for other users.
Company Preferences are company-wide and affect all users. Only the QuickBooks Administrator can change them.
There are up to 23 different Function categories listed in the left hand column. I’m going to go through only a few of the most important and most common preferences, but I encourage you to go through each category and review both the My and Company Preferences. Also, the Preferences are mostly the same in all versions of Pro, Premier and Enterprise from 2009 to 2014. The Preferences for Point of Sale are different and not covered in this blog.
Accounting/Company Preferences/Use class tracking for transactions – this feature is extremely useful for tracking special circumstances without expanding or complicating your chart of accounts. For example, if you want to track the income and expenses related to all the events you go to, you could create a class for each event (say a specific trade show or networking event). Whenever you enter income or expense related activities, you select the appropriate class. Then when your event is done or you are reviewing your financials for next year’s budgeting, you can run a report by class that shows all the transactions.
Desktop View/Company Preferences – here is where you can turn on and off features which ultimately appear on your Home Page. If you don’t collect Sales Tax, or use Time Tracking, for example, you can turn them off so they do not appear on your desktop.
There are many potentially annoying features in the General/My Preferences tab that can be unchecked if they are a nuisance. If you do not want to here a beep every time a transaction is entered, make sure that box is unchecked under the My Preferences tab. Also, if you do not want Intuit to tell you about its products and services, place a check-mark in the box to turn off these pop-up messages.
One last feature I want to mention in Preferences is the Tax:1099 which is were you let QuickBooks know whether or not you file 1099-MISC forms, and if you do, where you map out your accounts to be included on the 1099 forms.
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As mentioned earlier, there are many other important preferences in QuickBooks to help make using QuickBooks a little easier so check out your Preferences today.