All About Sales Receipts in QuickBooks

All About Sales Receipts in QuickBooks

Documenting every sale carefully helps ensure that your financial records and reports will be accurate. The sales receipt is the right tool for this in specific situations.

You know how important it is to obtain receipts for the expenses you and your employees incur. You need to record them, analyze their impact on your cash flow, and claim some of them on your income taxes.

Your customers, too, expect to receive forms documenting purchases they’ve made from you. When they pay you immediately for goods or services, you’ll give them a sales receipt, rather than invoicing them for future remittance. Not only will your customers have a record of the transaction – you will, too.

QuickBooks supports the creation and tracking of sales receipts. It manages the mechanics of this important task incredibly well. It eliminates the need to enter receipt data twice, once on a paper copy for your customer and again in your accounting system. This QuickBooks feature not only minimizes errors, but saves time and lessens the possibility of disputes down the road.

A Simple Form

Here’s an example of a situation that illustrates the importance of really learning about and understanding QuickBooks before you start entering live data. Say you got a check from a customer on the spot for a house painting job you completed. When you look at QuickBooks’ home page, which icon do you click?

You might be tempted to click Receive Payments, since that’s exactly what you’re doing. But that screen is reserved for revenue that comes in to satisfy outstanding invoices and unpaid items on billing statements. Instead, you’d click Create Sales Receipts to open the Enter Sales Receipts window. Here’s a partial view of what you’d see:

When a customer pays you immediately for goods or services, you need to open and complete the Enter Sales Receipts window.

If you’ve already entered your customer and item/service records in QuickBooks, you can record your sale very quickly here. Even if you haven’t, or if you need to create a new record on the fly, you can select <Add New> when you open the drop-down option lists for the Customer:Job and Item fields.

Warning: Do you need to track inventory levels for products you sell? Have you created thorough records for these items? There is information that QuickBooks needs to help ensure that you don’t run out of stock or keep too much on hand. Let us walk you through the software’s inventory-management tools so you can take advantage of all the benefits they offer.

Once you’ve selected the appropriate customer, Class (if you use this feature), and Template (Here again, do you understand that you can either use the default sales receipt form provided by QuickBooks or customize it? We can help here), make sure that the Date and Sale No. are correct.

Next, click on the icon representing the transaction’s payment method, choosing from Cash, Check, Credit Card, or eCheck. Click the More button if your method isn’t listed there. Here, you can add new options by selecting Add New Payment Method. A small window will open allowing this. If you want to modify this list further by, for example. editing and deleting the default methods, clear and close the current sales receipt, open the Lists menu, and select Customer & Vendor Profile Lists | Payment Method List. This window will open:

Click the down arrow in the Payment Method field near the bottom of this window to see your modification options.

Once you’ve chosen the desired Payment Method (and entered a check number if necessary), you’ll complete the rest of the sales receipt much like you would an invoice, by selecting the correct products or services, the quantity you’re selling, and the transaction’s tax status. QuickBooks will fill in the rest if you’ve created complete item records.

When you’re done, save the sales receipt. Information about the transaction will be available in standard places like the Customer Information screens and various reports.

Whether your revenue comes instantly (documented by a sales receipt) or as longer-term payment on an invoice, your company’s income is just one element of the cash flow equation. Are you able to create and interpret the reports that can help you understand these complex calculations, like Cash Flow Forecast and Profit & Loss? You probably run some of QuickBooks’ more basic sales reports regularly, but consider bringing us in to do the deep analysis needed to make better business decisions.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Polish Your Image: Customize QuickBooks’ Forms

Polish Your Image: Customize QuickBooks’ Forms

The invoices and other forms you send to customers and vendors should reflect your company’s attention to detail, accuracy, and consistency.

Every opportunity you have to interact with your customers and vendors is critical. Whether it’s a phone call, an in-person connection, or an email, how you present yourself reveals a lot about you. Are you efficient? Friendly? Do you handle orders and problems and payment issues quickly and carefully?

Your accounting forms can also contribute to your image. They should always be:

  • Neat and attractive.
  • Easy to read, with the most important information displayed prominently.
  • Consistent with any graphics you use on other company materials.
  • Accurate, above all.

You might be able to use at least some of QuickBooks’ form templates as is, without any modifications. But couldn’t they be better? More visually appealing? Formatted to include only the fields that your business most often needs? QuickBooks contains the customization tools you need to make them so.

Improving What Exists

 

You can personalize your QuickBooks forms and make them consistent with any design themes your brand may use.

We’ll look at the modification options for an invoice, though, depending on what version of QuickBooks you’re using, you can also work with sales receipts, purchase orders, statements, estimates, sales orders, and credit memos. Start by opening the Lists menu and selecting Templates. Highlight Intuit Product Invoice in the list. Click the down arrow next to Templates in the lower left corner and choose Edit Template.

The above image displays part of the window that opens. Here, you can add a logo, change the color scheme, and change fonts for your company’s contact information and the labels that identify each field (like Bill To, Terms, and Quantity). The right pane of this window shows you what the form will look like as you make changes.

Nothing you’ve done so far will prevent you from using Intuit’s pre-printed forms. But when you click Additional Customization at the bottom of the screen, you’ll be warned that if you make modifications beyond this point, the forms may not print correctly. To be safe, click Make a Copy. You’ll be able to print this new version on plain paper.

Deeper Customization

The image below shows you part of the window that opens when you click on Additional Customization. The first two columns here are the most important; they let you specify the labeled fields that will appear on your invoices. When Header is the active column, you’ll be able to choose the content that will go at the top of your form, like Date, Invoice Number, and Terms.

Next to each default label, you’ll see boxes for Screen and Print. Click in these boxes to create or delete checkmarks; this will indicate whether each label will appear in the software itself and which will be printed for your customers to see. If you’d like to change the language QuickBooks uses to describe each, enter your preferred word or phrase in the Title column.

With the Header column highlighted, you can shape the appearance of the top section of your invoices.

Warning: As you’re checking and unchecking boxes, a dialog box may open telling you that your changes will cause some fields to overlap on your form. If you click the Default Layout button, QuickBooks will make automatic adjustments to fix this. Clicking Continue means you’ll have to use the software’s Layout Designer to make your own adjustments. This tool is not particularly intuitive, and it requires some design skills. If you must work with the Layout Designer, let us help.

When you click the Columns tab, you’ll see a list of the fields available for the main body of your invoices, like Description, Quantity, and Rate. This works similarly to how you just modified the Header, with one exception: You’ll be able to enter numbers in the Order column to specify the placement of each field. Here again, you’ll be able to watch a preview of your form change in the right pane.

If you want to start over, click the Default button to revert the form to its original state. When you’re done, click OK.

Neatness Counts

Whether you print and mail your forms or simply dispatch them electronically, we strongly encourage you to make them as professional and polished as you possibly can. Their appearance will enhance or detract from the image your customers and vendors have of your business. Let us know if we can help here. We’d be happy to help you learn about and implement the customization options that QuickBooks offers.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Get Paid Faster Using QuickBooks

Get Paid Faster Using QuickBooks

Are your customers slow about paying their invoices? QuickBooks can help accelerate your receivables.

Your company’s cash flow depends largely on how quickly your customers pay the invoices you’ve sent. And if you’re like most small businesses, those checks tend to dribble in close to—and after—the due date. If you operate on a slim margin, this often means that you’re late at paying your own bills.

It’s essential, then, that you do what you can to get incoming revenue moving as quickly as possible. QuickBooks offers numerous ways to help you accomplish that critical goal.

Simplify the Payment Process

The single most effective step you can take to speed up customer remittances is to allow payment by credit card or electronic check. If you’re currently only accepting paper checks, you already know what problems that option can create, like mailing time, trips to the bank, and insufficient funds.

To establish this capability, you’ll have to sign up for a merchant account that will connect your bank to the financial institutions used by your customers. There are fees associated with this, and the initial setup will be unfamiliar to you. We can help with this.

Once you sign up for a merchant account, you’ll be able to accept payments from customers by credit card and bank transfer.

Having a merchant account will accelerate your receivables and improve your company’s cash flow, but it has other benefits, too. For example:

  • Your customers will appreciate the convenience, and may even be more likely to make a purchase.
  • In 2018, customers and prospects expect to be able to pay for items and services electronically. Not allowing this affects their perception of you as a forward-thinking, progressive business.
  • You’ll save time, which translates to money. Instead of chasing payments, you can be working on ways to meet your goals and help your company grow.

Always Know Where You Stand

If you’re conscientious about keeping your records and transactions updated, you’ll always have access to the most current data about your company’s financial status. You’ll be able to answer questions from customers and vendors quickly and accurately, and your daily accounting tasks will be much easier to accomplish.

There’s another benefit, though: reports. One of the five best things about QuickBooks is its ability to create dozens of reports using pre-formatted templates. You only have to choose the one you want to see, and the software will display it using your company’s data. You also have the option to customize these reports extensively, so they contain the exact cross section of data that you want to see.

 

QuickBooks contains dozens of templates for pre-formatted reports that you can customize and create very quickly.

You can see in the image above that several of QuickBooks’ reports are focused specifically on the status of your customers’ invoices and payments. We strongly recommend that you run these reports regularly. The more you know about who is behind and by how much, the more targeted your collections efforts will be.

You’ll also notice that there’s a category of reports called Accountant and Taxes. You can certainly create these yourself, but some, like Trial Balance, will be unfamiliar to you. There are others listed under Company & Financial that are quite complex, but quite important. We’d be happy to analyze these for you on a regular basis (monthly or quarterly) and provide insight that will help you make better business decisions.

Remind Late Payers

There are all kinds of reasons why customers pay invoices late. Their bills may have been lost in the mail. They may have ordered so much that they’re confused about which invoices haven’t been paid. And they may just be low on funds.

You can’t do much about the latter reason, but QuickBooks provides a way for you to update customers about their past due payments: statements.

Sometimes, customers just need a full accounting of what they owe in the form of a statement.

It’s not difficult to follow QuickBooks’ customization options for statements, but we’re here to help if you run into difficulties. In fact, we’d be happy to sit down with you and talk about these as well as other options for improving your company’s cash flow. It’s a multi-faceted problem with many solutions; we can go over the options with you. Contact us now to work on making the rest of 2018 more profitable.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Tracking Time in QuickBooks, Part 1

If your company sells services, you can track the time spent providing them in QuickBooks.

When you sell a product to a customer, you know it. It goes away, and your inventory count in QuickBooks is reduced by one. This tracking helps you know what’s selling and what’s not, and it signals when a reorder is due.

If your business provides services to customers, though, you’re selling your employees’ time and skills. There’s no inventory count; you can sell as many hours as you have workers to fill them. Tracking time accurately and comprehensively, though, is as important as knowing how many hard drives or tote bags you’ve sold.

QuickBooks contains tools to help you record the hours employees spend doing work for customers, so you can bill them for services rendered. You can also use these same features to enter employee time for payroll purposes. The software offers two options here: single-activity records and timesheets.

Building the Foundation

We’ve discussed QuickBooks’ Preferences many times before. The software was designed to support small businesses with a wide variety of structures and needs, so it needs to be flexible. For that reason, we always recommend that you check in with your “Preference” options before you explore new features.

To get there, open the Edit menu and select Preferences. In the left vertical pane, click on Time & Expenses, then on the Company Preferences tab at the top. Here is a look at the top part of the window that opens:

The Company Preferences window for Time & Expenses displays multiple options.

To make sure that QuickBooks’ time-tracking features are turned on before you start, click the button next to Yes under Do you track time? Specify the First Day of Work Week by opening that drop-down list. If you know that all your time entries will be billable, click in the box in front of that statement.

There are other options in that window; we’ll talk about them next month.

Creating Service Items

Before you can start tracking billable time, you have to create a record for each service offered – just like you would for a physical product. Click the Items & Services icon on the home page or open the Lists menu and select Item List. The window that opens will eventually display a table containing all the items and services you’ve created.

To define a service item, click Item in the lower left corner, then New, to open a window like this:

You can create numerous types of items in QuickBooks; Service is one of them.

Click the down arrow in the field under Type to see your options here. There are many, ranging from Service to Inventory Part to Sales Tax Group. Select Service. In the field under Item Name/Number, enter a word or phrase and/or number that describes the service, and that won’t get confused with another.

If you had already created an item like “New Construction Services” and you wanted “Carpet Installation” to appear as a subitem of it, you’d click in the box in front of Subitem of to create a checkmark, then open the drop-down list below it and select “New Construction Services.”

Ignore the Unit of Measure section. If this designation is important to your business, talk to us about upgrading your version of QuickBooks. Connect with us, too, if the service you’re defining is used in assemblies or is performed by a subcontractor or partner, as these are more advanced situations.

Enter a brief Description in that box and your hourly charge—to the customer—in the field to the right of Rate. Click the down arrow in the field next to Tax Code to select the item’s taxable status.

It’s very important that you get the next field right. QuickBooks wants to know which account in your company’s Chart of Accounts should be assigned to this item. In this case, it would be “Construction Income.” If you’re not yet familiar with the concept of assigning accounts, let’s set up a session to deal with this and other basic knowledge you should have.

When you’re done, click OK.

Next month, we’ll talk about entering time items in records and timesheets.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

5 QuickBooks Reports You Need to Run in January

2018 has begun. Does your accounting to-do list look like a clean slate, or are critical 2017 tasks still nagging?

Getting all of your accounting tasks done in December is always a challenge. Besides the vacation time you and your employees probably took for the holidays, there are those year-end, Let’s-wrap-it-up-by-December-31 projects.

How did you do last month? Were you ready to move forward when you got back to the office in January? Or did you run out of time and have to leave some accounting chores undone?

Besides paying bills and chasing payments, submitting taxes and counting inventory in December, there’s another item that should have been on your to-do list: creating end-of-year reports. If you didn’t get this done, it’s not too late. It’s important to have this information as you begin the New Year. QuickBooks can provide it.

A Report Dashboard

You may be using the Reports menu to access the pre-built frameworks that QuickBooks offers. Have you ever explored the Report Center, though? You can get there by clicking Reports in the navigation toolbar or Reports | Report Center on the drop-down menu at the top of the screen.

QuickBooks’ Report Center introduces you to all of the software’s report templates and helps you access them quickly.

As you can see in the image above, the Report Center divides QuickBooks’ reports into categories and displays samples of each. Click on one of the tabs at the top if you want to:

  • Memorize a report using any customization you applied.
  • Designate a report as a Favorite.
  • See a list of the most Recent reports you ran.
  • Explore reports beyond those included with QuickBooks, Contributed by Intuit or other parties.

Recommended Reports

Here are the reports we think you should run as soon as possible if you didn’t have a chance to in December:

Budget vs Actual

We hope that by now you’ve at least started to create a budget for 2018. If not, the best way to begin is by looking at how close you came to your numbers in 2017. QuickBooks actually offers four budget-related reports, but Budget vs Actual is the most important; it tells you how your actual income and expenses compare to what was budgeted.

Budget Overview is just what it sounds like: a comprehensive accounting of your budget for a given period. Profit & Loss Budget Performance is similar to Budget vs Actual. It compares actual to budget amounts for the month, fiscal year-to-date, and annual. Budget vs Actual Graph provides a visual representation of your income and expenses, giving you a quick look at whether you were over or under budget during specific periods.

Income & Expense Graph

You’ve probably been watching your income and expenses all year in one way or another. But you need to look at the whole year in total to see where you stand. This graph shows you both how income compares to expenses and what the largest sources of each are. It doesn’t have the wealth of customization options that other reports due, but you can view it by date, account, customer, and class.

A/R Aging Detail

QuickBooks’ report templates offer generous customization options.

Which customers still owe you money from 2017? How much? How far past the due date are they? This is a report you should be running frequently throughout the year. Right now, though, you want to clean up all of the open invoices from 2017. A/R Aging Detail will show you who is current and who is 31-60, 61-90, and 91+ days old. You might consider sending Statements to those customers who are way past due.

A/P Aging Detail

Are you current on all of your bills? If so, this report will tell you so. If some bills slipped through the cracks in December, contact your vendors to let them know you’re on it.

Sales by Item Detail

January is a good time to take a good look at what sold and what didn’t in 2017 before you start placing orders for 2018. We hope you’re watching this closely throughout the year, but looking at monthly and annual totals will help you identify trends – as well as winners and losers.

QuickBooks offers some reports in the Company & Financial and Accountant & Taxes categories that you can create, but which really require expert analysis. These include Balance Sheet, Trial Balance, and Statement of Cash Flows. You need the insight they can offer on at least a quarterly basis, if not monthly. Connect with us, and we can set up a schedule for looking at these.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Are You Using QuickBooks’ Reminders?

We can’t emphasize this enough: QuickBooks’ Reminders can prevent countless problems with your finances.

How do you know when it’s time to pay a bill or follow up on overdue customer payments or print payroll checks? If you’re still using a paper calendar and sticky notes and file folders, there’s a good chance you’re missing some important deadlines on occasion. Manual methods aren’t effective enough when you’re dealing with your business finances. You might experience:

  • Credit problems.
  • Overextended customers.
  • Unhappy vendors and employees.

If you’re missing the mark frequently, you won’t be able to get a true picture of your financial status, and your cash flow will suffer.

Use QuickBooks’ built-in reminders to avoid this unnecessary drama. Here’s how they work.

Totally Customizable

To start setting up Reminders, open the Edit menu and select Preferences. Click Reminders in the left vertical pane. With the My Preferences tab highlighted, click in the box in front of Show Reminders List when opening a Company file to create a checkmark. Then click on the Company Preferences tab to open this window:

QuickBooks Company Preferences Tab Screen Shot

When you’re setting up your Preferences for QuickBooks’ Reminders, you can customize each type in multiple ways.

As you can see in the above image, QuickBooks lets you create reminders for a wide variety of actions. For each, you can indicate whether the Reminders window will display a summary or a list, or whether that particular activity will not be included. For those that are time-sensitive, like Checks to Print, you’ll also be able to specify how much warning you’ll get – how many days in advance each item will appear in the Reminders list.

My Preferences vs Company Preferences

If you haven’t worked much with QuickBooks’ Preferences, you may not understand the difference between the two tabs that appear in each window. Only the QuickBooks Administrator can make changes on the Company Preferences page, since these affect company-wide settings. All users, though, can change any options that appear in the My Preferences window.

Here’s an example of a Preference (General) where all employees can indicate how they want QuickBooks to work for them specifically:

My Preferences Screen Shot in QuickBooks

Open the Edit menu and select Preferences, then General to open this window. Everyone who uses QuickBooks can set up their Preferences here, but only the administrator can modify Company Preferences.

Using Reminders

If you indicated in My Preferences that you want the Reminders window to open every time you open your company file in QuickBooks, it should appear on top of your desktop. If you didn’t, or if you need to see it after you’ve closed it, open the Company menu and select Reminders. A link should also be available in the toolbar.

Using the Reminders tool is like using any other interactive to-do list.

QuickBooks Reminders Window Screen Shot

QuickBooks’ Reminders window displays the tasks you need to do today and in the near future. You can click the arrows to the left of each boldfaced category to expand or collapse the list.

The left pane of the window displays tasks that must be done today, while the right shows upcoming tasks. Small arrows to the left of each task category expand and collapse each section when you click on them. Double-click a task (not the category label), and the relevant form or other document opens. When you’ve completed the chore, it will disappear from the list.

There are two icons in the upper right of the window (not pictured here). Click the plus (+) sign, and the Add To Do window opens. You can create six types of to-do items here: call, fax, e-mail, meeting, appointment, and task. Each can be assigned to a customer, vendor, or employee, or earmarked as a lead. You can designate a priority (low, medium, high) and a status (active, inactive, done) to each. You can also assign a time and date due, and enter descriptive details. Each to-do then appears in the appropriate place in QuickBooks.

The other icon, a small gear, opens your Preferences for Reminders.

The mechanics of setting up your Reminders window are not difficult. What can be a challenge is watching your cash flow as all these transactions occur. If you’re struggling with that, let’s sit down together and develop a plan for keeping your cash flow positive while meeting your financial obligations.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.