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Tag Archives: tips & tricks



July 7, 2016

I heard QuickBooks Online was horrible…” and other common misunderstandings

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It wasn’t too long ago when the idea of moving your business online was scary. Is it secure? Is it safe? Will anyone buy from me? As we all now know, going to the cloud has become a no-brainer: you almost HAVE to have an online presence if you’d like to be successful! Websites have replaced business cards and Google has replaced the Yellow Pages. Most people utilize secure online banking and never set foot into a bank. So, why should your accounting software be any different?

Also not long ago, Intuit made its foray into the world of cloud accounting with what would become QuickBooks Online. To say it was clunky, unreliable and not very user-friendly was an understatement. Most early adopters took one look at QBO and decided their trusty QuickBooks desktop file was just fine. Well, folks, Intuit was paying attention. After many thousands of dollars and development hours, a newer, more aesthetically pleasing and reliable QuickBooks Online was introduced.

“This new QBO looks pretty, but will it work for my industry?” The answer was a solid MAYBE for most businesses initially. It worked well for service- and professional-based industries. It incorporated a newly-branded QuickBooks Payments (aka Intuit Payment Network) so customers could pay via invoices emailed directly to them (gasp! No more snail mail!?!?) and made it easy to “share” the books with other users and your bookkeepers/accountants without the need for thumb drives, remote applications, and backup files. However, if you had inventory, if you were in construction, manufacturing, or any other type of industry that needed features like job costing, progress invoicing, inventory management or point-of-sale support….well, you were out of luck. Or were you?

You WERE NOT!  Intuit opened up their API (ie: programming back door) to allow 3rd party developers to create applications that  connect with QBOand provide specialized features for all sorts of industries!  Time trackers, payroll apps, inventory management, job costing, project management, sales tax management.  You name it, there’s probably an app that will get the job done.

Once every four to six weeks, Intuit sends updates through to QuickBooks Online.  Sometimes they’re small bug fixes, but usually these updates are making QBO more and more usable as a standalone product for most industries.  A year ago I would never have dreamed of sending a general contracting client to QBO – now, an affordable app called Knowify integrates flawlessly to provide job costing, progress billing, time tracking and work in process tracking!  AND Intuit has job costing on their radar to be added very soon.  Non-profit organizations now have specialized reporting and a standard chart of accounts specific to their industries and in non-profit-eeze!  Best of all, a quick click on the Feedback button in QBO allows users to submit their ideas for improvements or features they’d like to see soon.

QuickBooks Online will never be the end-all be-all for businesses, especially in the new era of Cloud Computing, but QuickBooks desktop won’t be, either.  Now is a great time to migrate over to the cloud and see how much more efficient you can be while watching your business grow.  Let us walk you through QBO and help you migrate!

February 3, 2016

Sales Receipts vs. Receive Payments vs. Bank Deposits – Explained

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Regardless of what QuickBooks software or online version you are using, you are bound to run into this fork in the road: how do I know whether to create a sales receipt, receive a payment or make a bank deposit? These three options are readily available to you, but unless you are a QuickBooks Pro (and sometimes even if you are), knowing which option to choose can be perplexing. So, I’m going to walk you through these three options to further explain what they are for and when they should be used.

When you use receive payments, you are applying a payment to something that has already been invoiced or billed. I provided a service or product to you, sent you an invoice, and then you paid it. There’s a length of time in between these two tasks. Invoice then payment. Only use receive payments if you will be applying the payment to an invoice.

So, how are sales receipts different? Think of a sales receipt like walking into a department store. When you purchase something there is no invoice created, only a receipt. This is because there was no expectation that you were going to buy anything when you walked in the door. In the case of your business, this may mean someone buys something on the spot so there’s no need for an invoice. A sales receipt combines an invoice and payment into one transaction. If a customer pays for something before you’ve had a chance to create an invoice, save yourself a step and use a sales receipt.

Now, think about your bank statement for a moment. When you see cash/check deposits made, do they show up as each individual payment or do they show up as one large lump sum? They will almost always be added as one lump sum. So, how do we make that lump sum match each individual payment or sales receipt we’ve created? We’ll create a bank deposit!

When creating a bank deposit, you will notice two very distinct sections:  A section that shows each payment and sales receipt you just created (if you’re not seeing these payments and receipts, you may have listed the ‘deposit to’ account as the bank account instead of undeposited funds…go back to those payments/receipts and make changes as necessary) as well as a second section below with blank lines.  

You will click each of the individual payments and sales receipts that are making up the deposit. The lines below are meant to record any loose change or funds coming in that don’t necessarily need to be recorded by customer. An example might be ticket sales. Maybe you’ve collected $500 by selling tickets to an event you’re putting on, but it’s not important to know exactly who bought tickets or how many. Instead of doing a sales receipt for each individual ticket sold, just add the total of the sales, select the proper income account (ticket sales in this example) and then add the total.

When all is said and done, the total deposit will be all payments & sales receipts plus any other funds coming in that aren’t being tracked by customer. This amount should match what will end up on the bank statement.

Stay tuned for more tips and tricks!  Want to know something specific?  Reach out to us!

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