By Ken Bailey
Commercial Agriculture Program
Dairy Focus Team
University of Missouri
baileyk@missouri.edu
These are the instructions for setting up a QuickBooks company on your computer using the downloaded file DairyQB60.QBB. We assume that you have 1) purchased a copy of QuickBooks 6.0 or higher, or have upgraded QuickBooks (our downloaded file does not work with QuickBooks 5.0 or lower), and 2) installed QuickBooks on your computer.
The file DairyQB60.QBB is a QuickBooks backup file of a dairy farm that is a sole proprietorship. This file will automatically set up your chart of accounts, items list, classes and memorized transactions. This file will handle accrual based accounting, accounts payable, and will automatically record Schedule F transactions for end of the year tax accounting.
We have developed a number of memorized transactions that will make your non-automated accounting tasks easier (i.e. depositing the milk check, accounting for farm-raised feed, etc.). The instructions below explain how to install this file on your computer and begin using it for entering your farm's financial data.
Step 1. Install QuickBooks on your computer. Use a Windows 95 version 6.0 or higher.
Step 2. Restore backup. The file DairyQB60.QBB is a QuickBooks backup file that must be restored to your computer. From QuickBooks click File and then Restore. A Restore From box will appear. QuickBooks will want to know where to look for the file DairyQB60.QBB (i.e. A:). Select the proper drive or directory where the downloaded file is. Click on the file and then click OPEN. The Restore To box will appear. QuickBooks will want to know where to place this restored company file. It will default to the directory QuickBooks and will select the filename Dairy. If this is okay, click the button SAVE. QuickBooks will then restore this backup file into the appropriate directory on your computer under the filename DAIRY.
Step 3. Change farm information. Click on File and then Company Info ...You must enter your farms information here including farm name and address, fiscal and income tax year, and Federal ID or Social Security number. Note that we have used the income tax form for a Sole Proprietor. This can be changed if you are incorporated or have a partnership. Changing this, however, may prevent you from developing a Schedule F tax form.
Step 4. Add users and passwords. You can protect your data in QuickBooks by using passwords for multiple users. This QuickBooks file presently is not password protected, but is set up to handle up to three users and passwords. To add users and passwords, click on File then Set up Users and Passwords.
Step 5. Add new financial accounts. Now is the time to look at the chart of accounts we created for you. You may want to add a few asset and liability accounts (i.e. your various bank notes). Click on Lists and then Chart of Accounts. You can add a new account at the Chart of Accounts window by pressing the Account button and then clicking on New. A New Account window will appear.
Step 6. Enter Opening Balance. You must enter opening balances for all asset, liability and equity accounts. These numbers are used to construct your balance sheet for the first day of your fiscal year. Click on Lists then Chart of Accounts. You will see the Chart of Accounts window that will list all your financial accounts. Highlight one and click on the Account button and select Edit. An Edit Account window will appear. Go to the bottom and enter the opening account balance and the date for the first day of your fiscal year (i.e. January 1). Do this for all asset, liability, and equity accounts. WARNING: you can only enter an opening account balance once for each account. It is very difficult to change this later. So read up about opening account balances in your manual and make sure you have the correct data to enter.
Note: try not to use the main accounts when there are sub accounts present. For example, try to enter opening account balances as of January 1 for both the original cost and accumulated depreciation accounts for dairy cows. Don't use the Dairy Cow asset account.
Step 7. Adjust opening balance equity account. Read the section of your QuickBooks manual about equity and opening balances. When you are done entering all your opening account balances for all your accounts, you may need to transfer the balance of dollars to the accounts Owner's Equity and Retained Earnings. See your accountant for help.
Step 8. Verify the Schedule F assignments for all of your income and expense accounts with your tax accountant. QuickBooks will allow you to assign all of your income and expense accounts to a tax line for the tax forms you choose during setup in step 3 above. We choose Schedule F assignments for you. These need to be verified.