hello again folks and now that we've created our company file we will do a basic file setup these
are the things that we would do to the file regardless of what type of company we have
but once we're done setting up the file this way it will be easier to use it as a contractor now
the first thing we're going to do is set the preferences in QuickBooks the preferences are
the options the defaults the automatic settings or behaviors of the file once you create the
file it behaves the way QuickBooks company thinks most businesses need and you have to adjust these
options defaults and settings to make it behave the way you need so what settings are options
do we need to change well first we do not want QuickBooks to warn us every time a transaction
is dated too far in the past or the future so that means on the day that we record a transaction if
we put the date of the transaction too far ahead of the date that the computer says is current
QuickBooks will distract us with a warning message but we're going to be doing that all throughout
this course and we don't want to be distracted by that so from the top left click edit preferences
and this is your defaults window the Preferences window you may notice that as you click the
different categories on the Left different details show up in the right panel each of
these are different categories of preferences and within each category there's a company preference
section and a my preference section if you go to the top and you click accounting and then click
company preference you will see that there are two check marks here that tell QuickBooks if a
transaction is dated to far in the past or too far in the future when you record it you will you want
QuickBooks to give you a pop-up warning well we don't want that warning so we have to click here
make sure you click to remove the check marks then click OK and now we don't have to worry
about being distracted with a message that warns us about the date of the transaction what else do
we need to change well we do not want QuickBooks to save the windows on the open desktop that means
if we're using QuickBooks during a session and we have a whole bunch of windows open we don't
want QuickBooks to reopen all of those windows from the previous session but it will if we don't
change the preference from the top left click edit preferences then click desktop view and instead of
allowing it to save when closing the desktop click don't save when it closed the desktop click OK and
now we don't have to worry about that either what else will we change well there's a window called
the whole window that opens when we open the file and that home window you could always reopen here
by clicking help for scuse me not help you could always click a company home page now this home
page simply has icons that are shortcuts to the main menu but these are not necessarily
the icons that we need and it's very distracting when the computer makes this window open up and we
have to bother closing it every time so let's tell QuickBooks that we don't want this open
when we open the file from the top left click edit preferences and then of course again click desktop
view make sure you're in the my preferences tab and then remove the check mark here click it show
homepage when opening company file click OK and now we won't have to bother closing the
homepage every time now we want to turn off all pop-up advertisements that will distract us as
we try to learn QuickBooks from the top left click edit preferences and this time we go down to the
general category preferences and again make sure the my preferences tab is chosen and then click
the little box here to place a checkmark where it says turn off pop-up messages for products
and services now click OK and we don't have to worry about pop-up messages for products and
services what else we need to be able to deposit money directly into the bank account the way it's
set up now you cannot record a payment directly into your bank account you have to do two steps
so this is something that will become relevant a little bit later in the course but from the top
left click edit preferences and go down to where it says payments and in the company preference
tab this checkmark you must remove right now every time you receive a payment QuickBooks by default
QuickBooks will automatically record that payment in an account called undeposited funds and it
will not let you record it directly into your bank account but if we remove this checkmark QuickBooks
will allow us an option to record the payment directly into our bank's records we click OK and
now we're set up with that feature there's only two more we have to turn on estimates and progress
invoicing so let's do that edit preferences you know if you're a contractor you come down here
time and expense time and expenses the category company preferences the tab do you track time if
it says no click yes now as far as reimbursable expenses we'll come back to this option later in
the course now if you want to choose a different preference without closing the window if you click
a different category you will notice well actually we didn't change anything but we want to make sure
it says we want to turn on estimates and progress invoicing so where is that well if you come here
with jobs and estimates jobs and estimates is the category now if you're a contractor
you create estimates make sure yes is chosen do you do progress invoicing in this course that's
an additional feature that we will learn so click yes we do progress invoicing now we click ok and
now we're able to do what many contractors need to do progress invoicing and the last preference we
will set we do track time so if we come here and we type edit preferences and we scroll all the way
down time and expense company preference ah do you track time make sure yes is chosen because we will
be tracking time later and we will be referring back to these preferences when we get up to the
video about tracking time so you might not see the result of all the settings that we changed
in this video but as you use QuickBooks certain features will be available that
will not be available if you did not properly click on these options or on these settings