Who is EULA? Well, she is the End User License Agreement you agreed to when you installed QuickBooks on your computer. Remember her now?

There seems to be a lot of confusion in the land of QuickBooks regarding licensing, so I went straight to the source for some clarification. I recently had a lengthy telephone conversation with Ben Manning, in the Specialty Licensing Group of Intuit to get some guidance on the licensing of QuickBooks. He graciously offered some insight which I’d like to share with you in this article and an additional one next month.

In case you need a refresher on the terms of your EULA, you can click on Help, then search for the term “license.” From here, you can review or print the agreement for your records.

This month, we’ll focus on the single user portion of the EULA. Ben mentioned that a good deal of confusion exists in this area, especially when it comes to the “1 backup copy” language. Here is the section of the EULA that relates to a single user license:

“If you purchased a full, single-user license of the Software or a single-user add-on pack license, you are granted a limited, non-exclusive license to use the enclosed Software on the computer(s) used by a single individual. You may make one (1) backup copy of the Software solely for the purpose of reinstalling the Software, if needed, on the computer(s) used by the same single individual"

Translation to non-legal speak: you can install QuickBooks on one computer as your main computer, and install it on your other computer as your backup computer. For example – you have QuickBooks installed on your desktop computer at the office, and also have it installed on your laptop computer for infrequent use at home. The laptop computer is considered your “one backup copy” in this case and this arrangement complies with the terms of the EULA. However, if you have QuickBooks installed on your desktop computer at the office, and also have it installed on another desktop (or laptop) computer at the office that is constantly using it, the second desktop (or laptop) computer is not truly a backup copy of QuickBooks. In this example, you’d be in violation of the EULA.

According to Ben, the best way to interpret the EULA is each computer that will be using QuickBooks needs its’ own licensed copy of QuickBooks software. That approach prevents any misunderstanding as well as any possible violations of the EULA, whether accidental or intended.

Next month, we’ll take a closer look at the multi-user license portion of the EULA and also discuss the concept that “the software registration dies with the registrant” (commonly known as “why selling used QuickBooks is in violation of the EULA).

As part of the 5th anniversary celebration of my business, I'm giving away QuickBooks software and consulting services. Really!

If your business is located in Lake County, Ohio, you're eligible for my "QuickBooks: Free is for Me" contest. I'm giving away two QuickBooks packages:

1. Single User QuickBooks Premier + 2 hours of free QuickBooks Coaching. This package valued at more than $600.



2. 5 User QuickBooks Premier + 3 hours of free QuickBooks coaching. This package valued at more than $1700.

Enter my "QuickBooks: Free is for Me" contest today.

Last month, we reviewed the QuickBooks: Profit and Loss Standard report in more detail. I hope you found that insight helpful in managing your business.

This month, we're going to explore the Balance Sheet Standard report, another critical report to keep track of "how your business is doing."

You will find this report by clicking on Reports in the menu bar, then Company and Financial, then Balance Sheet Standard (if you're using QuickBooks 2006, you can head right to the spiffy new Report Center to locate this report too). This is where the similarity to the Profit and Loss Standard ends.

The Balance Sheet Standard report is designed to provide you with insight on three key details about your business:

1. Assets - what your business OWNS
2. Liabilities - what your business OWES
3. Equity - what's left over/what you have invested in the business

For example, your checking account is something you own, so it is an asset account. A loan from your bank is something you owe, so it is listed as a liability account. Recall that the type of account is determined when the account itself is created in your chart of accounts. The "type" field is the very first one you encounter when creating a new account or editing an existing one.

In case you're wondering what an "other current asset" or "other current liability" are, just remember that these are things that you own (asset) that will be converted into cash in 12 months or less OR something that you owe (liability) that will be paid off in 12 months or less. This 12 month cut- off comes from generally accepted accounting principles (this isn't something I could dream up!). For example, your inventory would be classified as an "other current asset" since your goal is to convert this into cash by selling it as soon as possible.

Another key point about this report - note that it is "as of" a certain date. Think of the Balance Sheet Standard as giving you a "snapshot" of what you own, owe and have invested in the business on a given date. Compare this to the Profit and Loss Standard that shows you how much you sold and how much your expenses were for a given period of time (i.e. monthly, etc.)

To make the report even more meaningful, click on the "Modify Report" button and put a check mark in the "Previous Year" option and also in the "$ Change" and "% Change" boxes, then click OK. You'll now have a report that compares your balance sheet from this year to last year. You can immediately see large increases or decreases in the reported numbers and take corrective action where necessary.

Question #1: Why do I see an entry in my Accounts Payable Aging report for inventory received that does not yet have a bill entered?

A: QuickBooks is setting up the accounts payable entry at the time you enter the item receipt under the premise that you have accepted the materials and "are on the hook for them. If you look closely at your aging report, in this situation, it will show this type of transaction as an "item receipt" (and not a bill). In most cases, the vendor invoice follows within a few days and is then entered as a bill into QuickBooks. If you prefer your Accounts Payable Aging report NOT to show item receipts, you can filter them out by using the "Transaction Type" filter found within the Modify Reports button.

Question #2: QuickBooks is constantly nagging me about not having enough inventory on hand to sell. Can I turn this off?

A: You bet! Click on Edit, then Preferences, then the Purchases and Vendors icon. From there, click on the Company Preferences tab, and look for the "warn if not enough inventory to sell" option and remove the check mark. QuickBooks will no longer check your inventory status when you are entering sales forms - you'll have to figure out your inventory shortages another way.

Consider this question - how much is the business data stored on your computer worth:

• $10,000?
• $25,000?
• $50,000?

How much are you willing to spend to have a backup system that is:

• Easy
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(Or, consider this - are you still messing around backing up data to Zip disks and burning CDs?). What if you could put a backup system in place that does all the above for less than 65 cents a day? Would you be interested? I thought you would be...

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We're getting closer to the release of the new Easy Estimate program that will integrate with QuickBooks.

Easy Estimate has been designed to help you create professional estimates in less time and with less paperwork. In addition, it will allow you to impress prospective clients and win more business without having to retype your estimates and proposals.

Take a demo, review the FAQ and learn more about Easy Estimate today.

Contact me if you'd like to be notified when Easy Estimate is ready for purchase

E-mail: newsletter@bondtechltd.com

Phone: 440-527-5696

Web: http://www.BondTechLtd.com