Tweet

QuickBooks Scenario For A Real Client of Mine

Written by: Janie Palmer

Article Overview: A new client came to me and asked how they could get QuickBooks to work for their type of business. Basically, they prepare a quote. If the customer bites, they get 50% down before proceeding on the job. However, they don't want the down payment to show as income. I agreed. They need to show the inventory reduction to make sure this stuff is saved and put aside for this customer. When they finish building the product, they ship and send an invoice at that time for the remaining 50% that's owed to them. Here is what I suggested they do, which they are doing now.

QuickBooks Scenario For A Real Client of Mine

Thank you for taking the QuickBooks training class on your company file. I believe the 3 of you found it most beneficial. Now that your chart of accounts and item list are going to work together, here is how to proceed with transactions.

when material is received from purchase orders you have created, you need to receive items with or without the bill.
Qbks does this:
inventory +
accts payable -

when you have received an up front payment, go to "make deposits" and choose the liability account "customer deposit" that I created. This is the source of where it came from. Also put in the customer name.
Qbks does this:
bank +
customer deposit -


when you want to create a sales order from the quote, do so while you are looking at the quote on screen. Upper right shows "create invoice". Next to it is a drop down menu. Click on this and it should give you the option of "sales order". You need to click on the "sales order". Once the sales order is created, items are pulled from inventory and set aside for this particular customer. It won't show anything yet on the general ledger report, because the inventory has not
physically moved yet. If you do a report on the items in the sales order, you will see that inventory is reduced, but not shown in the general ledger. Things will move when the invoice is actually created. When the invoice is created,
Qbks does this:
inventory - (remember you need to setup your items with the cost)
cost of goods sold + (the cost is transferred here at time of sale from invoice)
Qbks also does this:
accts receivable +
income -

when customers have paid the up front deposit, this will show up as well on the invoice and show what's been paid. the deposit is shown as a minus on the invoice and is subtracted from the original balance.
Qbks does this:
customer deposit +
sales - total sales of the entire job
accts receivable + this is the balance of what they owe

when you receive payment against an existing invoice,
Qbks does this:
accts receivable -
undeposited funds +

when you make deposits for these, they will be sitting in a window to click off and match up to your deposit slip:
Qbks does this:
bank +
undeposited funds -

call with any questions. thanks so much for your confidencee in Quick Bookkeeper Inc.

Related Articles
  Can I Move from QuickBooks Pro to Premier or into QuickBooks Enterprise?
  Understanding the Differences Between QuickBooks Upgrades and QuickBooks Updates
  Tip on Better QuickBooks Performance
  The
  Key Differences Between QuickBooks Enterprise and QuickBooks Pro/Premier Accounting Software

Article Tags: bank customer, chart of accounts, customer name, drop down menu, general ledger, job, liability account, quickbooks training



Related Forum Posts
Managing the Paperwork - Greetings All, As we all know, when an Entrepreneur starts his/her business, there is a ton of paperwork to deal with. Who wants that? All we want to do is do our work and make money while solving people's problems with our brilliance! The purpose of this thread is to find out what everyone has done to manage their paperwork/bills. I, for one, am horrible at managing such things. I still have quite a number of receipts that have to be inputted into QuickBooks Pro from last year! I'm a techie and can fix pretty much any PC issues or develop some awesome online marketing ideas for businesses....but please, dont' ask me to figure out how QBPro calculates taxes and why the GST has to be separated in the setup and inputting in the Enter Bills area. To me, this is confusing (and you too after re-reading that paragraph....) So, in the past I tried a high-school Co-Op student. This was a brilliant way to get someone who knows QuickBooks and did not cost me any money. The downside, rules stated that I could not leave him alone. So if I went out on a call, so did he. He brought paperwork to do stuff while we were out so it wasn't too bad. The other downside, he didn't truly want to be an accountant as he was late at _least_ once a week as well as absent at least one day a week (keeping in mind he was only with me 4 days a week). A pure example of someone being forced to follow a parent's footsteps. So, that little experiment went well. I did get some great work from him when he was there. I still used a regular accountant to do my taxes and they talked back and forth easily to make sure my stuff was inline. I would consider doing this again. Currently, I am looking at hiring someone for a couple of hours a week. My schedule is not at all static. I could be in Algonquin Park one day and Sarnia the next. So, having someone work once a week is a much better solution for my scenario. Has anyone done anything different? If so, what has and has not worked for you so far?
Re: Google Pagerank update inprogress - Hi Mr Ven, Google works in mysterious ways. Mine stayed the same.
Advisory Board - Sure - I will start a new thread. I think it is a relevant and timely topic. Mine has been around for over 2 years now. And doesnt consist of any family (thank God).
Biggest mistake in your experience? - Hi, What is the biggest mistake you have made in starting your own business? Mine is being undercapitalized. I would be interested to hear the experience of others. Cheers.
QuickBooks vs. Microsoft Money vs....? - I have always used Microsoft Money to run my business - accounting, invoicing, etc. It came with my computer when I got it and integrated well with my online banking system so everything is a breeze. It only takes 30-60 minutes every quarter to do the bookkeeping (keep in mind that I have a very simple business - no inventory, very little invoicing, I do all my payments by credit card, etc). Is QuickBooks or Money the best accounting tool for small business owners? Or is there something even better?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Bootstrapping Your Start Up Business.

How to Improve Your Time Management

Build Corporate Credit for Your Small Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.