QUICKBOOKS ONLINE CERTIFICATION
EXAM QUESTIONS WITH CORRECT
ANSWERS
Other daily operations needs - Answer-Does your client hold stock as part of the day-to-
day running of their business? How do they keep track of their inventory?
If your client has inventory, they may want to include inventory tracking. If this is a
requirement, you will be able to discuss with them how QuickBooks Online and/or third-
party apps can help with this.
Industry-specific needs - Answer-Every client and every business is different, depending
on their industry. For example, your client may need QuickBooks Online with third-party
apps enabled to track their e-commerce or web-based sales, manage their logistics,
manufacturing, shipping, point of sale, or many other variables such as their personal
billable time.
Specialized application needs - Answer-There is a range of apps compatible with
QuickBooks Online. Your client may benefit from a specialized app to handle an area of
their business. They may even already use one.
You will be able to use your knowledge of QuickBooks Online features to spot when a
client has a requirement QuickBooks Online can't cater for on its own. That's where
integrated apps come into the picture.
From cloud storage to time-tracking, there's an app for just about everything.
Reporting needs - Answer-This section of the New Client Checklist helps you get a
clearer picture of how your client prefers to run their reports. Which reports work best for
them? How often do they run and analyze their reports?
As an additional feature, if the client has employees, they may wish to add users to their
accounts who have reports-only access. We'll look into that in more detail later in the
course.
Any other requirements - Answer-Don't forget to ask your client whether there is
anything else they may need that you haven't yet covered or asked.
They may already have an accounting solution and wish to convert their existing
account to QuickBooks Online.
Transaction volume - Answer-This section is important because it will reveal to
ProAdvisors the transactional volume and scope of the client's business. It may, for
example, indicate that the client might benefit from a QuickBooks Online Advanced
subscription, if transactions exceed a threshold of 43,000. This is because QuickBooks
Online Advanced offers accelerated data-entry features.
,Industry trends - Answer-While you need to take the time to understand each client's
specific requirements, there are some common themes and pain points based on which
industry they're in.
These are five common business industry types, and each comes with its own pain
points:
- Professional services
- Contractor/field services
- Retail and e-commerce
- B2B wholesale business
- Nonprofits
IT: Professional services - Answer-Managing cash flow is essential for these types of
businesses, because they often incur expenses up front, before they receive payment.
Time tracking and job costing are essential to ensure the profitability of any business.
This holds especially true for these clients, who must spread limited resources—
including their time—across various jobs.
IT: Contractor/Field Services - Answer-These clients are always out and about in the
field, which means they don't have a lot of time for bookkeeping. They need solutions
that let them stay on top of their books, wherever their projects take them.
IT: Retail and e-commerce - Answer-Retail and e-commerce businesses are optimized
to sell products and deliver exceptional customer experiences. Sales, payment, and
staff management systems must work closely together to better manage profit and loss.
Understanding cash flow and balance sheets is necessary to run any business. It's
especially important to retailers and resellers, who must manage sales and inventory on
top of being ready to do taxes when the time comes.
Managing inventory and avoiding out-of-stock situations are critical to the success of
retail and e-commerce customers.
IT: B2B Wholesale business - Answer-Wholesale businesses rely on knowing their
inventory at all times. They also need to be able to keep track of all the logistics that go
with shipping orders of all sizes, from sales forms and invoices to store locations and
agreements with shipping companies.
IT: Nonprofit - Answer-Nonprofit and charitable organizations often track the expenses
of various programs and funds. Donations often have to be tracked in as well as out
when allocated to various branches of the charity.
QuickBooks Online seeks to help make keeping track of donations, pledges, and other
funds quick and simple.
Migration - Answer-There are three ways to get information into QuickBooks Online:
- Convert data in existing QuickBooks Desktop software
- Import customers, vendors, charts of accounts, and products and services lists from
Excel
- Enter all data manually
,Dan Cheng is another new client. Dan offers a virtual assistant/professional service,
Cheng's Master VA.
He started his business a year ago and grossed $60,000 in that year. Dan doesn't yet
use an accounting solution and has a shoebox full of handwritten notes and receipts.
However, he's excited to set up a solution that will provide detailed customer breakdown
of his sales and customer history.
Based on what you already know of Dan, which of the following Sales and Accounts
Receivable items would you mark with Yes in the Needs Assessment tab of the
checklist? - Answer-Dan would benefit from custom invoices, sales receipts, and
statements.
Custom invoices might help when he needs to track customers and run more detailed
reports to make sure he's working in the most efficient way with the customers who
generate the most income.
Statements are a great tool for service-based businesses that can generate information
on what services they're providing to customers. Clients can even use them to tailor
their offering so the client gets great value based on what they can afford.Dan doesn't
need Multicurrency, nor sales tax, which would be an essential requirement for a retailer
selling physical products.
Quickbooks Online Subscriptions - Answer-Self-Employed; Simple Start; Essentials;
Plus; Advanced
QBO Sub: Self-Employed - Answer-- Scheduled C; Cash basis
- 1099 Income & W2
- Separate Business/Personal Accounts
- 1 user & 1 accountant
QBO Sub: Simple Start - Answer-- Sole proprietor or single-owner corporations
- Full general ledger & accounts receiveable
- Multiple sources of income
- 1 user & 2 accountants
QBO Sub: Essentials - Answer-- Growing business
- Manage accounts payable & accounts receivables
- Recurring transactions
- Time-tracking
- Multicurrency
- 3 users & 2 accountants
QBO Sub: Plus - Answer-- Budgets & advanced reports
- Track multiple revenue streams and/or departments or locations (classes and
locations)
- Track inventory
- Track project profitability
- 5 users & 2 accountants
, QBO Sub: Advanced - Answer-- Small reporting (Fathom)
- Unlimited accounts and classes
- Advanced import and batch entry
- Custom user roles
- Dedicated manager and online training
- 25 users & 3 accountants & premium care
Usage Limits - Answer-Each subscription has limits.
QBO Plan Limits: Simple Start - Answer-- 0 classes and locations
- 250 chart of accounts
- 1 billable user
- 2 accountants
- 0 reports-only
- 0 time tracking
QBO Plan Limits: Essentials - Answer-- 0 classes and locations
- 250 charts of accounts
- 3 billable users
- 2 accountants
- 0 reports-only
- No limit time tracking
QBO Plan Limits: Plus - Answer-- 40 classes and locations
- 250 chart of accounts
- 5 billable users
- 2 accountants
- No limit reports-only
- No limit time tracking
QBO Plan Limits: Advanced - Answer-- No limit classes and locations
- No limit chart of accounts
- 25 billable users
- 3 accountants
- No limit reports-only
- No limit time-tracking
Wholesale Billing - Answer-Under this option, you (as the client's accountant) are billed
monthly for the subscription and will have an itemized view of all your wholesale
subscriptions for easy tracking.
As our most trusted partners, we want to ensure that you receive the best pricing on
QuickBooks Online, with up to 50% wholesale discount. With wholesale billing, you
control how the cost is passed along to your clients.
The benefits include:
- Bundling expenses: Add the cost into the services you provide to your clients
EXAM QUESTIONS WITH CORRECT
ANSWERS
Other daily operations needs - Answer-Does your client hold stock as part of the day-to-
day running of their business? How do they keep track of their inventory?
If your client has inventory, they may want to include inventory tracking. If this is a
requirement, you will be able to discuss with them how QuickBooks Online and/or third-
party apps can help with this.
Industry-specific needs - Answer-Every client and every business is different, depending
on their industry. For example, your client may need QuickBooks Online with third-party
apps enabled to track their e-commerce or web-based sales, manage their logistics,
manufacturing, shipping, point of sale, or many other variables such as their personal
billable time.
Specialized application needs - Answer-There is a range of apps compatible with
QuickBooks Online. Your client may benefit from a specialized app to handle an area of
their business. They may even already use one.
You will be able to use your knowledge of QuickBooks Online features to spot when a
client has a requirement QuickBooks Online can't cater for on its own. That's where
integrated apps come into the picture.
From cloud storage to time-tracking, there's an app for just about everything.
Reporting needs - Answer-This section of the New Client Checklist helps you get a
clearer picture of how your client prefers to run their reports. Which reports work best for
them? How often do they run and analyze their reports?
As an additional feature, if the client has employees, they may wish to add users to their
accounts who have reports-only access. We'll look into that in more detail later in the
course.
Any other requirements - Answer-Don't forget to ask your client whether there is
anything else they may need that you haven't yet covered or asked.
They may already have an accounting solution and wish to convert their existing
account to QuickBooks Online.
Transaction volume - Answer-This section is important because it will reveal to
ProAdvisors the transactional volume and scope of the client's business. It may, for
example, indicate that the client might benefit from a QuickBooks Online Advanced
subscription, if transactions exceed a threshold of 43,000. This is because QuickBooks
Online Advanced offers accelerated data-entry features.
,Industry trends - Answer-While you need to take the time to understand each client's
specific requirements, there are some common themes and pain points based on which
industry they're in.
These are five common business industry types, and each comes with its own pain
points:
- Professional services
- Contractor/field services
- Retail and e-commerce
- B2B wholesale business
- Nonprofits
IT: Professional services - Answer-Managing cash flow is essential for these types of
businesses, because they often incur expenses up front, before they receive payment.
Time tracking and job costing are essential to ensure the profitability of any business.
This holds especially true for these clients, who must spread limited resources—
including their time—across various jobs.
IT: Contractor/Field Services - Answer-These clients are always out and about in the
field, which means they don't have a lot of time for bookkeeping. They need solutions
that let them stay on top of their books, wherever their projects take them.
IT: Retail and e-commerce - Answer-Retail and e-commerce businesses are optimized
to sell products and deliver exceptional customer experiences. Sales, payment, and
staff management systems must work closely together to better manage profit and loss.
Understanding cash flow and balance sheets is necessary to run any business. It's
especially important to retailers and resellers, who must manage sales and inventory on
top of being ready to do taxes when the time comes.
Managing inventory and avoiding out-of-stock situations are critical to the success of
retail and e-commerce customers.
IT: B2B Wholesale business - Answer-Wholesale businesses rely on knowing their
inventory at all times. They also need to be able to keep track of all the logistics that go
with shipping orders of all sizes, from sales forms and invoices to store locations and
agreements with shipping companies.
IT: Nonprofit - Answer-Nonprofit and charitable organizations often track the expenses
of various programs and funds. Donations often have to be tracked in as well as out
when allocated to various branches of the charity.
QuickBooks Online seeks to help make keeping track of donations, pledges, and other
funds quick and simple.
Migration - Answer-There are three ways to get information into QuickBooks Online:
- Convert data in existing QuickBooks Desktop software
- Import customers, vendors, charts of accounts, and products and services lists from
Excel
- Enter all data manually
,Dan Cheng is another new client. Dan offers a virtual assistant/professional service,
Cheng's Master VA.
He started his business a year ago and grossed $60,000 in that year. Dan doesn't yet
use an accounting solution and has a shoebox full of handwritten notes and receipts.
However, he's excited to set up a solution that will provide detailed customer breakdown
of his sales and customer history.
Based on what you already know of Dan, which of the following Sales and Accounts
Receivable items would you mark with Yes in the Needs Assessment tab of the
checklist? - Answer-Dan would benefit from custom invoices, sales receipts, and
statements.
Custom invoices might help when he needs to track customers and run more detailed
reports to make sure he's working in the most efficient way with the customers who
generate the most income.
Statements are a great tool for service-based businesses that can generate information
on what services they're providing to customers. Clients can even use them to tailor
their offering so the client gets great value based on what they can afford.Dan doesn't
need Multicurrency, nor sales tax, which would be an essential requirement for a retailer
selling physical products.
Quickbooks Online Subscriptions - Answer-Self-Employed; Simple Start; Essentials;
Plus; Advanced
QBO Sub: Self-Employed - Answer-- Scheduled C; Cash basis
- 1099 Income & W2
- Separate Business/Personal Accounts
- 1 user & 1 accountant
QBO Sub: Simple Start - Answer-- Sole proprietor or single-owner corporations
- Full general ledger & accounts receiveable
- Multiple sources of income
- 1 user & 2 accountants
QBO Sub: Essentials - Answer-- Growing business
- Manage accounts payable & accounts receivables
- Recurring transactions
- Time-tracking
- Multicurrency
- 3 users & 2 accountants
QBO Sub: Plus - Answer-- Budgets & advanced reports
- Track multiple revenue streams and/or departments or locations (classes and
locations)
- Track inventory
- Track project profitability
- 5 users & 2 accountants
, QBO Sub: Advanced - Answer-- Small reporting (Fathom)
- Unlimited accounts and classes
- Advanced import and batch entry
- Custom user roles
- Dedicated manager and online training
- 25 users & 3 accountants & premium care
Usage Limits - Answer-Each subscription has limits.
QBO Plan Limits: Simple Start - Answer-- 0 classes and locations
- 250 chart of accounts
- 1 billable user
- 2 accountants
- 0 reports-only
- 0 time tracking
QBO Plan Limits: Essentials - Answer-- 0 classes and locations
- 250 charts of accounts
- 3 billable users
- 2 accountants
- 0 reports-only
- No limit time tracking
QBO Plan Limits: Plus - Answer-- 40 classes and locations
- 250 chart of accounts
- 5 billable users
- 2 accountants
- No limit reports-only
- No limit time tracking
QBO Plan Limits: Advanced - Answer-- No limit classes and locations
- No limit chart of accounts
- 25 billable users
- 3 accountants
- No limit reports-only
- No limit time-tracking
Wholesale Billing - Answer-Under this option, you (as the client's accountant) are billed
monthly for the subscription and will have an itemized view of all your wholesale
subscriptions for easy tracking.
As our most trusted partners, we want to ensure that you receive the best pricing on
QuickBooks Online, with up to 50% wholesale discount. With wholesale billing, you
control how the cost is passed along to your clients.
The benefits include:
- Bundling expenses: Add the cost into the services you provide to your clients
