A Step-by-Step Guide

QuickBooks Desktop is a robust accounting software that can handle the financial needs of a law firm, including managing client trust accounts. Proper setup and consistent data entry are crucial for its effective use. This tutorial will guide you through the process of setting up a company file in QuickBooks Desktop, which is the first step to managing your law firm’s accounting.

Step 1: Launch QuickBooks Desktop

• Locate QuickBooks Desktop: Double-click the QuickBooks Desktop icon on your computer desktop or navigate through the programs file to find it.
• Open the Program: Once located, double-click to open QuickBooks Desktop.

Step 2: Create a New Company File

• Click on File: In the QuickBooks menu, click on the “File” option.
• Select New Company: From the dropdown menu, select “New Company.”

Step 3: Set Up Your Company

• Get Your Business Set Up Quickly Window: This window presents four options for creating your company file:
  • Express Start: Quick setup with basic questions.
  • Detailed Start: Comprehensive setup with an interview process (this is the option we’ll use).
  • Create from an Existing Company File: Useful if converting from another QuickBooks file.
  • Convert from Another Accounting Software: For users switching from other accounting software.

Using Detailed Start

• Select Detailed Start: Click on “Detailed Start” to begin the easy step interview process.

Step 4: Easy Step Interview

• Company Information: Enter the following details:
  • Company Name: Enter your law firm’s name (e.g. Antwan Attorneys At Law).
  • Legal Name: If different from the company name, enter the legal name. If the same, repeat the company name.
  • Street Address: Input your firm’s address (e.g., 42 Palmer Road, Milton Park, Harare).
  • City, Zip Code, Country: Provide location details.
  • Phone Number: Enter your firm’s contact number.
  • Email and Website Address: Input if available.
• Click Next: Proceed to the next step.

Step 5: Select Your Industry

• Industry Selection: Choose “Legal Services” from the list provided.
• Click Next: Continue to the next step.

Step 6: Company Organization

• Choose Business Structure: Select the appropriate option (e.g., Sole Proprietorship, Partnership, LLC, Corporation).
• Click Next: Move to the next step.

Step 7: Fiscal Year Setup

• Select First Month of Fiscal Year: For Zimbabwe, the fiscal year typically runs from January to December. Select January.
• Click Next: Continue.

Step 8: Set Up Administrator Password

• Enter Password: Create an administrator password for security.
• Retype Password: Confirm the password.
• Click Next: Proceed to the next step.

Step 9: Create Your Company File

• Create Company File: Click “Next” to begin creating your company file.
• Save File: Choose a location to save your company file and click “Save.”

Step 10: Customize QuickBooks for Your Business

• Customize QuickBooks Window: Click “Next” to start customizing QuickBooks.
• Answer Business-Specific Questions: Enable features that suit your law firm’s needs by answering the following questions:
  • Business Type: Select “Services Only” since it’s a law firm.
  • VAT or Sales Tax: Select “Yes” if registered for sales tax.
  • Estimates/Quotations: Choose “Yes” if you create estimates.
  • Billing Statements: Choose “Yes” to send billing statements to clients.
  • Progress Invoicing: Select “No” (mostly used by contractors).
  • Manage Bills: Select “Yes” if you manage bills.
  • Track Time: Select “Yes” to track time spent on client projects.
  • Employees: Select “No” if not using the payroll module in QuickBooks.
  • Chart of Accounts Setup: Click “Next” to set up your chart of accounts.

Step 11: Set Tracking Start Date

• Select Start Date: Choose the beginning of the fiscal year as the start date.
• Click Next: Proceed to the next step.

Step 12: Chart of Accounts

• Tick Relevant Accounts: Review and select the necessary accounts for your law firm.
• Click Next: Continue to the next step.

Step 13: Complete Setup

• Congratulations Window: You will see a message indicating the successful creation of your company file.
• Click Go to Setup: Proceed to the next window.

Step 14: Initial QuickBooks Customization

• Get All Details into QuickBooks: Options to add customers, suppliers, products/services, and bank accounts will appear.
• Click Start Working: You can add these details later.

Final Step: Ready to Use QuickBooks

• Begin Using QuickBooks: You are now ready to manage your law firm’s accounting in QuickBooks Desktop.

By following these steps, you will have a fully set up QuickBooks company file tailored to your law firm’s specific needs. Consistent and accurate data entry will ensure that your firm’s financial activities are well-managed and easily accessible.