Mastering QuickBooks 2022 - Third Edition

By Crystalynn Shelton

Early Access

This is an Early Access product. Early Access chapters haven’t received a final polish from our editors yet. Every effort has been made in the preparation of these chapters to ensure the accuracy of the information presented. However, the content in this book will evolve and be updated during the development process.

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About this book

Handling the financial side of your growing business requires expertise. What if there’s an easier path to managing accounting and tracking profits without the expense of hiring trained professionals?

Mastering QuickBooks 2022, Third Edition helps you use QuickBooks Online (QBO) to create multilingual invoices, track mileage, work with a cash flow dashboard that helps you with cash forecasting and planning reports, and upload batches of bills and checks. This new edition has every chapter revised to cover a wide range of new features and updates available, including smart invoicing and cash flow projections.

You’ll learn how to manage sales tax, including how to set up, collect, track, pay, and report sales tax payments. Dedicated sections will also take you through new content focused on the latest features in the QBO line-up, while also showing you the different types of businesses that can benefit from QBO Advanced. In addition to this, you’ll explore how to export reports to Google Sheets, use the custom chart builder, import budgets, perform smart reporting with Fathom, and much more.

Publication date:
February 2022


QuickBooks Online Advanced

QuickBooks Online (QBO) Advanced is the top-tier QuickBooks Online subscription plan. As mentioned in the previous chapter, it includes all of the features found in QBO Simple Start, QBO Essentials, and QBO Plus, in addition to many more features. Some of the features included in QBO Advanced are as follows: you can add up to 25 users, it includes 48 additional custom fields, you can create customized performance charts, it has granular user permissions similar to QBD Enterprise, it has workflow automation to reduce manual tasks, it offers the ability to import invoices and budgets, and it allows you to do batch data entry. These are just a few of the many features included in QBO Advanced. QBO Advanced is ideal for businesses that are currently using QBO Plus and have outgrown it and current QBD Enterprise customers looking to move to the cloud. The ideal business has more than 10 employees, sales receipts that exceed $500,000, and annualized revenue that continues...


Accessing the QuickBooks Online Advanced test drive account

To demonstrate the key concepts outlined in the introduction of this chapter, we will use the QBO Advanced test drive account. This account includes data for Craig's Design and Landscaping Services, a fictitious business. There are a couple of ways you can access the test drive account. You can log in to your existing QBO account, click the help icon, and type test drive in the search field.

Follow these steps to access the QBO Advanced test drive account:

  1. Log in to your existing QBO account.
  2. Click on the Help icon as indicated here:

  3. Click the test drive button as indicated here. If you don't have that option, scroll down to the search box and type test drive, and click the arrow to the right as indicated here:

  4. The following page will display:

  5. Click on the link as indicated in the preceding screenshot to access the United States QuickBooks Online Advanced test drive. If you are currently logged in to QBO,...

Setting up customized fields

Custom fields can be used to filter customers, sales, purchasing, expense, and vendor reports. QBO Advanced is the only QBO subscription that includes customized fields. A total of 48 custom fields can be created in QBO Advanced. Custom fields are split between customers, sales, purchase/expense, and vendor fields. A total of 12 custom fields is available for each of these four groups.

Follow the steps given here to add a custom field:

  1. Click on the Gear icon as indicated here:

  2. Select Custom fields as indicated in the following screenshot:

  3. The following window displays after clicking on Custom fields:

  4. Click the Add custom field button as indicated in the preceding screenshot.
  5. The following window displays:

Below is a brief description of the fields that need to be completed:

  1. Name (1): Type the name of the custom field here (for instance, Sales Rep).
  2. Data type (2): When it comes to the type of data entered, you have four options to choose from...


Managing customized user permissions

QBO Advanced gives you more control over what areas of QuickBooks you can give users access to. In Chapter 4, Migrating to QuickBooks Online, we discussed the five user types available in all subscriptions: standard user, company administrator, reports only, time tracking user, and accountant user. In addition to these user types, QBO Advanced also includes four additional user roles: A/R Manager, Sales and Inventory, Workers and Sales reports, and custom roles.

A brief explanation of these roles follows:

  • A/R Manager: This role allows the user to access the entire sales cycle with the exception of sales and bank deposits. Sales and bank deposits give the user the ability to receive payments in undeposited funds and create bank deposits.
  • Sales and Inventory: This role combines sales and inventory access into a single role so that stock levels can be updated as needed.
  • Workers and Sales reports: This role can be used for sales managers with sales reports...

Using workflow automation

Workflow automation is used to remind those responsible for tasks that those tasks need to be completed. Reminders to pay a vendor, make a bank deposit, or approve invoices can automatically go out via email, mobile devices, or push notifications to one or more persons who are responsible for completing a given task.

Follow these steps to access workflows:

  1. Click on the Gear icon.
  2. Select Manage workflows below the Tools column as indicated here:

  3. The following window displays:

  4. Click the Create workflow button and the following screen displays:

There are three primary sections to a workflow: My Workflows, Templates, and History. A brief explanation of each of these sections follows:

  • My Workflows: This tab lists all the workflows that have been initiated or used.
  • History: This tab keeps a record of the workflows used along with the outcome and the date.
  • Templates: This tab lists the predesigned workflows that can be adopted or used. A list of the templates...

Importing invoices and budgets into QuickBooks Online

In Chapter 6, Managing Customers, Vendors, Products, and Services, we covered importing customers, vendors, and products and services into QuickBooks. In this section, we will show you how to import invoices into QuickBooks. Importing your data into QuickBooks can save you a lot of time that would have been spent manually entering this information into QuickBooks. In addition to saving time, importing data will ensure more accuracy and consistency than manual data entry. If you use budgets in your business, you may want to consider importing your budget data into QuickBooks. Importing budgets is only available in QBO Advanced.

Follow these steps to import invoices into QuickBooks:

  1. From the gear icon, select Import data as indicated in the following screenshot:

  2. The Import Data screen will display; select Invoices:

    The following window displays:

    There are three steps that must be completed to import invoices into QuickBooks...


Batch-creating invoices in QuickBooks Online

Batch-creating invoices is an alternative to importing invoices into QBO. It's ideal for businesses that need to create several invoices that will include the same (or similar) services. For example, a property owner may need to bill its tenants for their monthly rent. If you have 10 tenants that pay $1,000 a month, you can quickly generate 10 invoices using batch-create.

Follow these steps to generate a batch of invoices:

  1. Click the +New button.
  2. Select Batch transactions as indicated in the following screenshot:

  3. The Batch Transactions screen displays as follows:

    This screen resembles and works like an Excel spreadsheet. First, you will select the transaction type you are importing. There are six to choose from: Invoices, Bank Deposits, Sales Receipts, Checks, Expenses, and Bills. Next, you will select the action you wish to take: create, modify, or delete. To complete the spreadsheet, you will put your cursor in each field and...


Smart Invoicing

A new feature now available in QBO Advanced is called Smart Invoicing. Smart Invoicing uses artificial intelligence to identify and highlight invoice irregularities so you can spot potential problems quickly. For example, invoices are flagged whenever a quantity or price detail falls outside the expected range for a given customer. The irregular values are highlighted and explained so the person creating the invoice or the approver can take a look at them.

Below is an example of an invoice with the smart invoicing feature turned on:

Notice both the quantity and the unit cost are both highlighted with a comment right above that indicates the expected value for these fields. If you don’t want to see the comments, you can turn off smart invoicing in company preferences or you can turn off suggestions at the user level. Next, we will cover an existing feature in QBO that is now available to QBO Advanced subscribers, reclassify transactions.


Reclassify Transactions

The reclassify transactions feature is not a new feature. However, in the past it was only available for accountant users and now it is available to Admin users who have a QBO Advanced subscription. Reclassify transactions allows you to modify a batch of transactions all at once. For example, if you find that the expense account for checks written to a vendor have been categorized incorrectly you can use the reclassify transactions feature to make the correction for a batch of checks at once.

Follow the steps below to access the reclassify transactions feature:

  1. Click on the Gear icon and select Reclassify transactions as shown below:

  2. The following screen displays:

  3. A brief explanation of the information required in this screen is as follows:
    • Account types: From the drop-down, you can select profit and loss accounts or balance sheet accounts. If you need to reclassify accounts that are both profit and loss and balance sheet accounts, you will need to do them...

Custom Reminders

A major improvement to QBO workflows is allowing users to create automatic custom reminders with “if-this-then-that” logic. Reminders are triggered when user-defined conditions are met. They will come in the form of tasks in the QBO Advanced task manager, customer emails, internal company emails, or push notifications.

For example, a user can set custom reminder emails to both the customer and the sales rep to remind them that the due date for an invoice is coming up. The emails can also be customized for sending over a predetermined number of days prior to the due date, and invoices over a certain amount for specific companies.

The snapshot below represents an example of the conditions that can be created and the push notification that is received as a result of the custom reminder:

In the above image, the condition is when an invoice payment status is unpaid, send a reminder 3 days prior to the invoice due date. The message will be sent via email, text...


DocuSign Integration

One of the newest features in QBO Advanced is the integration of DocuSign. You can now easily sign, send, and manage digital documents directly from your QuickBooks Online Advanced account. eSignatures allow signees to receive and sign documents from any computer or mobile device with an internet connection.

Below is a screenshot of what this feature looks like when implemented:

In the bottom right corner of the above image, there is a notification that alerts the user they can send estimates to their customers with DocuSign. Next, we will cover how the online backup and restore features work in QBO.


Using online backup and restore

Similar to QuickBooks Desktop products, you can save a backup copy of your QBO data with your QBO Advanced subscription. This feature allows your accountant or administrative personnel the ability to continuously back up data and then restore it back to a point in time as needed. Online backup and restore captures transaction data, list data, and other elements such as attachments, company information, exchange rates, and preferences. However, it does not record things such as custom reports, recurring transactions, and bank feeds.

Here is a brief description of the three types of backups available:

  • Full backup: This type of backup saves everything in the chart of accounts.
  • Incremental backup: This backup only saves changes made since the last backup was made.
  • Complete backup: This backup saves everything, including company data.

After reviewing your options for backing up and restoring your QBO data, you should be able to use this information to determine...


Utilizing the performance center and custom charts

QBO Advanced offers the ability to create custom KPI dashboards and other user-defined charts. This will give you insight into those areas that might require additional oversight or management. The performance center and custom charting is another feature that is only available in QBO Advanced. It allows you to visualize your financial data in chart format, which can be easier to understand than just plain numbers. You can create a chart that allows you to include up to 10 groups of values on a single chart. For example, revenue can be tracked by products and services, classes, locations, projects, and employees. You can also micro-filter specific customers, classes, locations, and more.

The following datasets can be used to create custom charts:

  • Expenses
  • Revenue
  • Gross profit
  • Net profit
  • Accounts receivable
  • Accounts payable
  • COGS
  • Current ratio
  • Quick ratio

QBO uses real-time data for custom charts. which means report visualization is 100...


Fathom reporting app

The Fathom reporting app takes QuickBooks reports to a whole new level. This app syncs data from QBO to enable advanced analysis and visualization. Fathom syncs data once every 24 hours but you are able to instruct it to update immediately if needed. Similar to the performance center, you can access Fathom reporting from the Reports menu. There are three menu options available: Analysis, Reports, and Settings.

Here you will find a brief explanation of the reporting menus available in the Fathom reporting app:

  • Settings: In this tab, you will define the parameters for the data you want to analyze and report on. This is done within the KPIs (short for Key Performance Indicators) menu of the Settings tab. Consult with your accountant to determine your target for each KPI you decide to track.
  • Analysis: In this tab, you have the ability to perform key analysis of the KPIs selected in the Settings tab. This data will help to support discussions on strategy for various aspects...

Priority Circle membership

Another feature that sets QBO Advanced apart from other QBO subscriptions is it includes membership in Priority Circle. Priority Circle membership gives you access to three types of services: a dedicated account team, 24/7 premium support, and QBO on-demand training. These services are ideal if you have a medium or large team that needs to get up and running on QuickBooks quickly. Unlimited access to these services is included in the QBO Advanced subscription, so there is no additional charge.

Here is a brief description of the services included in Priority Circle membership:

  • Dedicated account team: This includes access to a team of QBO experts who can provide answers to the most common product-related questions. These experts will be familiar with your business when you call in, which will ensure that the answers you receive are applicable to your business needs.
  • 24/7 premium support: This service includes front-of-the-queue access from the support team. This...


In this chapter, we have provided you with a detailed look at the features that are only available in the top-tier QBO plan, QBO Advanced. The topics we covered included accessing the QBO test drive, using customized fields on forms, setting custom user permissions to control what areas of QuickBooks you give other users access to, how to use workflow automation to streamline deadline-driven tasks, importing invoices and budgets to save time, utilizing batch-entry transactions to create invoices, smart invoicing, reclassify transactions, custom reminders, docusign integration, the options for backing up your QBO data, how the performance center and custom charts work, an overview of the Fathom reporting app, and what's included in Priority Circle membership. Now that you have a better understanding of what's included in QBO Advanced, it will help you to determine whether it is the right subscription for your business.

In the next chapter, we will show you how to create...

About the Author

  • Crystalynn Shelton

    Crystalynn Shelton is the published author of the Amazon Bestseller Mastering QuickBooks 2021. She has a degree in accounting from the University of Texas, Arlington, and has been featured by Travel Wire News, CorpNet blog, Merchant Maverick, Xero, and American Express. Crystalynn has been a licensed CPA for 10 years and an Advanced Certified QuickBooks ProAdvisor for 13 years. She has managed accounting teams at Fortune 500 companies such as Texaco and Paramount Pictures. She ran her own bookkeeping practice for 3 years and worked for Intuit (QuickBooks) for 3 years as a senior learning specialist.

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Mastering QuickBooks 2022 - Third Edition
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