QBO Questions: Interview Q&A

As businesses continue to rely on accounting software to manage their finances, the demand for skilled QuickBooks Online (QBO) professionals has increased significantly. For those seeking a job in this field, it is essential to prepare for the interview process by familiarizing yourself with common QBO questions. In this blog, we will discuss some of the most frequently asked QBO interview questions, so you can feel confident going into your next interview.

What are the interview questions on QuickBooks?

1. What is QuickBooks Online, and how does it differ from other QuickBooks products?
2. What are the different pricing plans offered by QuickBooks Online, and what features are included in each plan?
3. What is the Chart of Accounts in QuickBooks Online, and why is it important?
4. Can you explain the difference between an invoice and a bill in QuickBooks Online?
5. How do you reconcile bank accounts in QuickBooks Online?
6. What is the process for adding a new customer or vendor in QuickBooks Online?
7. Can you explain how to create and customize reports in QuickBooks Online?
8. How do you handle sales tax in QuickBooks Online?
9. What are the different payment methods accepted by QuickBooks Online?
10. Can you explain how to set up and manage payroll in QuickBooks Online?

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Frequently Asked QBO Questions and Answers

What are the 4 key reporting types in QBO?

When it comes to reporting in QuickBooks Online, there are four primary report types:

1. Profit and Loss (P&L) Statement: This report shows your business's income and expenses over a specified period, giving you an idea of your company's profitability.
2. Balance Sheet: This report shows your business's financial position at a specific point in time, including your assets, liabilities, and equity.
3. Cash Flow Statement: This report shows the inflow and outflow of cash from your business over a specified period, helping you to manage your cash flow effectively.
4. Budget vs. Actual Report: This report compares your actual income and expenses to your budgeted amounts, helping you to identify areas where you may need to adjust your spending.

What are 3 Golden Rules of accounts?

The "Three Golden Rules of Accounts" are:

1. Debit what comes in, credit what goes out: This rule means that when you receive something of value, such as cash, you debit that account, and when you give something of value, such as paying a bill, you credit that account.
2. Debit the receiver, credit the giver: This rule applies when you transfer assets or funds between accounts. The account that receives the asset is debited, and the account that gives the asset is credited.
3. Debit expenses and losses, credit income and gains: This rule applies to recording revenue and expenses. When you receive income, you credit that account, and when you incur expenses, you debit that account.

What are the 5 main account types in the chart of accounts QBO?

The five primary account types in the Chart of Accounts in QuickBooks Online are:

1. Assets: This account type includes anything your business owns that has value, such as cash, equipment, or inventory.
2. Liabilities: This account type includes anything your business owes, such as loans, accounts payable, or credit card balances.
3. Equity: This account type represents the amount of money invested in your business by owners and shareholders.
4. Income: This account type includes all revenue generated by your business, such as sales or service income.
5. Expenses: This account type includes all costs associated with running your business, such as rent, salaries, or advertising expenses.

Which 2 accounts Cannot be merged?

In QuickBooks Online, two accounts cannot be merged:

1. Bank Accounts: Bank accounts cannot be merged because each account has its own transactions, balances, and reconciliations that cannot be combined with another account.

2. Accounts Payable (AP) and Accounts Receivable (AR) Accounts: AP and AR accounts cannot be merged because these accounts track specific transactions and balances related to either the money you owe to vendors or the money customers owe to you. Combining them could result in significant errors and confusion in your financial reports.

What are the 7 types of accounts?

The seven types of accounts are:

1. Assets: This account type includes anything your business owns that has value, such as cash, equipment, or inventory.
2. Liabilities: This account type includes anything your business owes, such as loans, accounts payable, or credit card balances.
3. Equity: This account type represents the amount of money invested in your business by owners and shareholders.
4. Income: This account type includes all revenue generated by your business, such as sales or service income.
5. Expenses: This account type includes all costs associated with running your business, such as rent, salaries, or advertising expenses.
6. Cost of Goods Sold (COGS): This account type represents the direct costs associated with producing goods or services sold by your business.
7. Other Income and Other Expenses: This account type is used to record any income or expenses that do not fit into the other six account types.

In conclusion, preparing for a QBO interview is essential for anyone seeking a job in the accounting industry. By familiarizing yourself with common QBO questions, you can demonstrate your knowledge and expertise in QuickBooks Online. Remember to review the Four Key Reporting Types, Three Golden Rules of Accounts, Five Main Account Types, Two Accounts that Cannot be Merged, and Seven Types of Accounts to be well-prepared for your next QBO interview.

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More Questions and Answers

1. What is QuickBooks?

QuickBooks is an accounting software package that is developed by Intuit. It provides both on-premise accounting applications as well as cloud-based versions, which include features such as business payments, payroll functions, and the ability to manage and pay bills.

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2. What are the products available in QuickBooks?

QuickBooks offers the following products:

• QuickBooks Self-Employed
• QuickBooks Online
• QuickBooks Pro
• QuickBooks Premier
• QuickBooks Enterprise
• Customer Reviews
• Upgrade Your QuickBooks

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3. What are the new features available in QuickBooks?

Some of the new features available in QuickBooks include:

• Insight tab in the Home window
• Income tracker upgrades
• Update reminders window
• Pinned notes
• New report formatting

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4. Does the self-employed version of QuickBooks calculate tax on your income?

Yes, the self-employed version of QuickBooks does calculate tax on your income, and the payment of tax is quarterly federal estimated tax.

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5. What happens if you don’t pay the estimated tax or miss the tax payment?

If you don't pay the estimated tax or miss a tax payment, you may be liable for a penalty, which is usually around 6-8% annually on your tax. For example, if you owed $100 in taxes and missed the quarterly tax payment, you would need to pay $8 in penalties at the end of the year.

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6. How can you manually add an income or spending transaction in QuickBooks Self-Employed?

To manually add a transaction in QuickBooks Self-Employed, follow these steps:

• Click on "Transactions" from the left navigation menu
• On the right side, above the list of transactions, click "Add Transaction"
• Enter the details for the transaction, select a category, and then click "Save"

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7. Why does QuickBooks Self-Employed need a user’s bank login information?

QuickBooks Self-Employed requires a user's bank login information to establish a secure connection with the bank or credit card company. The bank login credentials are stored in a separate database using multi-layered software and hardware encryption.

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8. How can you secure your QuickBooks Self-Employed account?

To secure your QuickBooks Self-Employed account, you should:

• Not share your QuickBooks Self-Employed password with anyone
• Ensure that your password is strong
• Ensure that you have virus protection and a firewall on any computer you use to access QuickBooks
• Not install programs from people or companies you don’t know

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9. What do Accountant Reports show in QuickBooks?

Accountant Reports in QuickBooks include:

• Account Listing
• Trial Balance
• Profit and Loss statement
• Transactions detail by account
• Recent automatic transactions
• Cash flow statement
• Transaction list by date

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10. What are the main features of QuickBooks Documents?

The main features of QuickBooks Documents include:

• Attorney-drafted templates
• E-sign to legalize your documents
• Sync with QuickBooks Online
• Secure file storage (stored with SSL encryption)

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11. How can you set a reminder for your overdue invoices in QuickBooks?

To set a reminder for your overdue invoices in QuickBooks, follow these steps:

• Choose "Company," then "Reminders," and then click the "Set Preferences" tab
• Choose the "My Preferences" tab and then click "Show Reminders List" when opening a company file on my preference tab
• Click the "Company Preferences" tab, and select "Show List" for overdue invoices
• Enter the number to be notified for overdue invoices before they reach their due date

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12. What are the items included in reconciliation reports?

The reconciliation reports include: Journal, Balance Sheet, General Ledger, Transaction list with splits, Scorecard, and Recent Transactions.

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13. How can QuickBooks help in managing products and inventory?

QuickBooks can be helpful in managing products and inventory by providing various reports such as Inventory Valuation Summary, Purchases by Product or Service Detail, Sales by Product or Service Detail, Inventory Valuation Detail, and Sales by Product or Service Summary.

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14. How to delete Journal entries in QuickBooks?

To delete journal entries in QuickBooks, click on "Company" in the upper menu, select "Make Journal," click "Previous" or "Next" until the journal entry you want to delete appears on the screen, select the "Edit" option in the upper menu, and then select "Delete General."

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15. How to check for duplicate invoice or sales receipt in QuickBooks?

To check for duplicate sales (invoice, sales receipt, etc.) numbers in QuickBooks, select Transactions -> Sales, click on the number column to sort it, toggle the numbers in ascending and descending order, and check for duplicates.

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16. How to produce recurring invoices in QuickBooks?

To produce recurring invoices in QuickBooks, select Gear (Company Profile button), under list menu select -> Recurring Transactions -> New, select "invoice" for transaction type, select "scheduled" for type, select the email address to send emails automatically, complete the rest of the form, and then click "Save Template." Repeat the steps for each customer for whom you would like to create a recurring invoice.

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17. How to import files in QuickBooks?

QuickBooks uses .IIF (Intuit Interchange Format) format which is an ASCII text, CSV files to import/export lists and to import transactions. Converting files into .IIF file is a little complex, so if feasible, try to enter the journal entry or transaction directly into QuickBooks.

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