Terminology in QuickBooks - What everything is called ?
Its useful to know some of the terminology that Quickbooks uses
Transaction
Every entry into Quickbooks is called a transaction , whatever type of entry it is
Invoice
An Invoice is a Sales Invoice, i.e. one that is sent out to your customer or client for goods or services that you have sold
Bill
A Bill is a purchase Invoice i.e one that is received from your supplier for goods or services you have purchased
Estimate
A non financial estimate or quotation for expected costs of something you are later going to sell to your customer
Purchase Order
A non financial order to your supplier for something you are ordering
Accounts receivable
A Debtors list - i.e. a list of your customers that owe you money
Accounts payable
A creditors list - i.e a list of your suppliers that you owe money to
Product and Services
Products and services in Quickbooks is what you sell to your customers.
When you raise a sales Invoice on Quickbooks ( Quickbooks just calls it an Invoice) then you cannot post ( enter) directly to a nominal account ( Category) you need to set up and use a product or service first, this generates the necessary entry to create the double entry required in Quickbooks.
We will explain how all this works so you have a good understanding in simple terms, this helps as you learn more about Quickbooks.
When you raise a sales Invoice on Quickbooks ( Quickbooks just calls it an Invoice) then you cannot post ( enter) directly to a nominal account ( Category) you need to set up and use a product or service first, this generates the necessary entry to create the double entry required in Quickbooks.
We will explain how all this works so you have a good understanding in simple terms, this helps as you learn more about Quickbooks.
Account
An account sometimes called a category is where the cost is allocated within QuickBooks
Class
This term is can be used to analysis of an additional type such as department, cost centre , division etc.
Tag
A temporary or permanent way of marking a transaction to later report or view
Profit and Loss
A report that shows how much profit or loss the business has made within a certain period, a month, quarter, year etc.
Balance Sheet
A report showing your Assets and Liability which shows the "net worth" of the business
Journal
An accounting function to debit and credit an account
Bank Reconciliation
A necessary financial review to check all transactions within QuickBooks with those recorded with your bank
