In this edition of Setting-up your QuickBooks Online company we will be looking at setting-up users.
Choosing a QBO Version
One of the considerations when setting up a new QuickBooks Online file is choosing the right version based upon the number of users you’ll need. This is one of the areas where QuickBooks Online is more cost-effective than Desktop: instead of having to purchase an additional software license for each simultaneous user, and maintain a server, your monthly payment eliminates both expenses.
From the Gear icon select You Company, then choose Manage Users...
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QuickBooks Online allows for multiple simultaneous users without needing a server or hosting. Simple Start allows for 1 user. Essentials allows up to 3 users. With Plus, you can have up to 5 users, and Advanced gives you up to 25 users.
In addition to these user seats, all businesses are allowed up to 2 free Accountant logins. A QBO Advanced subscription gives includes a 3rd free Accountant login as well. This way, bookkeepers and CPAs can log into a file and get to work without having to travel onsite, maintain a VPN, manage Accountant’s Copies, or send backup files back and forth. These accounts are created under the Accountant section in the right tab of the Manage Users window.
Setting Up Users
As show above, to manage users, go into the Gear and choose Manage Users.
Choose New to add a new user.
Within Manage Users choose 'New' to add a new user, the first step is to choose a User type.
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The first step is to choose a user type.
Assign the Company administrator role only to people who need full access to QuickBooks, Payroll, Merchant Services, and third-party apps.
The Plus and Advanced versions have unlimited Reports Only users for those who only pull reports and shouldn’t touch the transactions. These are great for CEOs and Board Members.
Time Tracking Only users (also in Plus and Advanced) allow employees to log into QuickBooks Online to fill in their Timesheets. Timesheet-only employees do not count towards your total number of users.
Most employees will be set up using Regular or custom user.
The benefit of Regular or custom user is that it limits access to Customers & Sales and/or Vendors & Purchases.
Users with access to Customers & Sales can do anything with Accounts Receivable, including:
- Enter estimates, Invoices, Sales Receipts, credit memos and refunds
- Receive payments from Customers
- Fill out time sheets for all employees
- Add, edit, and inactivate Customers
- Add, edit, and inactivate products and services
- View Customer and A/R reports
Users with access to Vendors & Purchases can:
- Enter & pay bills
- Make purchases billable to Customers
- Write checks
- Enter cash and credit card transactions
- Add, edit and delete Vendors
- View Vendor and A/P reports
- Print checks
There is a checkbox to restrict a user’s access to Payroll information. When this box is checked, users will only see “Payroll” as the Payee on paychecks and reports. They will also be blocked from the Employee Center.
The last step is to set each user’s administrative rights. You should prevent employees from changing other users’ permissions, adding users, editing company information, or changing subscriptions to QuickBooks-related services.
When you’re done assigning access, enter the user’s name and email address. The user receives an email with a link to sign into the company. They create their password when they log in for the first time.
Until the user receives that email and signs in, the Manage Users page will show that they have been “Invited.” After they sign in, their status will become “Active.”
The things businesses do…
I have found that many microbusinesses are not diligent about their user accounts. Husbands-and-wife teams tend to log in under one account. Business owners give their employees their password.
I encourage them to use safe procedures. Every person who logs in should do so under their own username. That way, the Audit Log provides an accurate record of who did what and when. Without that detail, it’s impossible to provide effective workflow training.
In retail environments, I have seen logins assigned to a role (accountingdepartment@business.com) or register (register1@business.com) instead of an individual. While it’s not my recommendation, I can see how this makes practical sense. If there’s turnover, you don’t need to manage individual accounts. It reduces the number of users. If a store is using QBO as its own Point-of-Sale System (which is reasonable with Custom Users), the business can look up who was scheduled that day to trace the transactions.
Conclusion
Take the time to plan on what access each user should have. I tend to start with restricted access until the user can’t perform one of their job functions, then bump them up as needed.
While the user permissions aren’t as granular as they are on QuickBooks Desktop, the options are flexible enough for most situations.
Stay tuned for our next article about setting up QuickBooks Online. If you’re really excited then check out my complete video tutorial library at the Royalwise website.
Alicia Katz Pollock is presenting a new QBO 101 webinar series with Insightful Accountant, starting in two weeks. Click the following links for more information: Setting Up QBO on October 30, 2019; QBO's 1099 Contractor Tools on January 7, 2020; and Customers and A/R on January 9, 2020.
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