What are QuickBooks Data files?

What are QuickBooks Data files?

Let’s review managing QuickBooks data files when using Windows.
Windows allows you to organize your files into Folders or Directories or Libraries (these
synonyms have been in use over the various Windows Operating Systems). The QB
program has defaults (assumptions) to create, name and manage your Folders. You can
control this, such as keeping Client files in one folder and your own Company files in
another.
The Naming of Windows files has not changed much all these years: Filename (the first
part) and File type (that part after the Dot) or Extension, such as My Letter.doc or My
file.qbw or My Picture.pdf. File type allows Windows to launch the program which manages
the data of a specific file type.
The QuickBooks program works with its own File types, the same way Word is the program
that works with .doc and Excel is the program that works with .xls and Adobe works with
pdf files. For QB, these are the file types for Company Data Files:
.qbw = Working file

.qbb = Backup file (compressed for easier storage)

.qbm = Portable file (think of the “m” as Mobile; smaller that a .qbb and sometimes easier to
send via email)

The .qbw can be Opened; the others are compressed and must be decompressed by using
the Restore function.

When moving data to a new computer, it is best to copy the recent backup (.qbb) on the
new computer, then use the program and the Restore Existing File function. Open the
“HowToRestoreExternalFiles.txt” found file in your Restored folder, and read it for any
remaining tasks.

When updating a computer with a new Version (year) of the QB program, make a backup of
each company file, then use the function of Open an Existing File and let the new program
update it. If it does not update correctly, you can try the Restore process next.

There are other specific filetypes used by the Accountants Edition for managing
Accountants Copy functions. Information on these can be found in the in product Help
system.

Quickbooks: Tracking Cost, Price and Profit

Let’s examine how to use QuickBooks Items for tracking cost, price and Profit.

Setting up and using Items on your purchase and sales transactions is how you control
the flow of the data to the accounts.

You don’t use an Inventory Item Type unless this is something you stock, count, reorder
and manage. You can get similar info for your activities by using Service Item Type, No
inventory Item Type and Other Charge Item Type. These Types have a box to checkmark
on the left edge, when setting up this item, to define it as “two Sided.” This provides an
Expense account link on the left, for the data flow when you purchase this item, and an
Income account link on the right, for the data flow when you sell this item.

You set the Price at what you charge for this item.

You can fill in Cost, but this is only notational. It will be used when you place an order or
enter this on a purchase transaction, but you will need to change that purchase for this
actual cost. QB offers to update the cost in the set up, but this purchase is where the
financial data happens. You can leave the cost at $0, even, since actual purchases create
the cost data.

If you leave both cost and price as $0 in the item’s setup, the actual cost becomes the
price for Job Tracking (assigning the customer is the direct reaon for this purchase) and
Billable purchases. Job Tracking as Billable means QB will offer that to me for selection,
when I create a sales receipt or invoice for the customer, so that actual cost is their
actual price.

Or, set up a general rate, such as all Lightbulbs are $3 Price to customers, even if you
bought one for $1.75 and another for $3.50.

The reports to use for these activities are Sales reports, including Item Profitability and
Sales by Item. I like to run the Sales by Customer Summary, changing it to Columns by
Item Type and then Columns by Item Detail. Sales by Customer Summary is a flexible
report, offering interesting perspectives on your sale activities.