Tutorials

The Basics of Setting Up and Tracking Inventory in Quickbooks

If you run a small- or medium-sized business, you might be wondering how to set up and track inventory in Quickbooks. Intuit’s popular business accounting software is loaded with useful features, including inventory tracking. Also known as stock tracking, this allows you to track the products your business sells by one or more criteria. Unfortunately, many business owners overlook inventory tracking, believing it’s too difficult to set up and, therefore, not worth the effort. However, Quickbooks makes it easy to set up inventory tracking. Just follow the steps listed below.

The Different Ways to Track Inventory

Quickbooks supports four different methods for tracking inventory. First, you can track inventory by quantity, such as the number of products that your business buys or sells in a given period. Second, you can track inventory by the items that your business buys or sells but can’t use (known as non-inventory items). Third, you can track inventory by services, such as services your business sells and offers to its customers. Fourth, you can track inventory by bundle, which consists of multiple products and/or services that your business sells together as once.

How to Set Up Inventory Tracking

To set up inventory tracking, log in to your business’s Quickbooks account and click the gear icon at the top of the page. Next, click “Account and Settings” below the “Your Company” menu. On the left-hand sidebar, click “Saves.” You should see a new window in the middle of the screen labeled “Products and services.” Look for a pencil icon next to this window and click “Track Inventory.” Assuming you followed these steps, Quickbooks will now enable inventory items under “Products and Services.” You can test this by going back to the main screen and choosing “Products and Services,” followed by “New.” If it worked, you’ll see a new item type here called “Inventory item.”

With inventory tracking enabled, you can now choose “Inventory” as a product type. This essentially allows you to track the products that your business sells by one of the four aforementioned criteria. Not all businesses need to track inventory — and that’s okay. However, if your business sells a lot of products, tracking products is usually a good idea. It provides you with invaluable data on where your products are being sold and how they are bold sold. Using this information, you can optimize your business’s strategy to achieve greater success.

Have anything else that you’d like to add? Let us know in the comments section below!

How to View Transaction Changes in Quickbooks Using Audit History

As a business owner, it’s important that you monitor your business’s financial transactions on a regular basis. If you don’t know where your money is going, or where it’s coming from, you won’t be able to optimize your business’s operations to achieve the highest possible profits. Using Quickbooks, however, you can easy view transaction changes using the accounting software’s Audit History.

What Is Audit History?

Audit History is a feature in Quickbooks that allows you to view all changes made on a transaction. It’s not uncommon for multiple people to access a business’s Quickbooks account. If you run a medium-sized business, for example, there may be several other corporate executives, as well as professional accountants, who regularly use your business’s Quickbooks account. As a result, some of these users may make changes to one or more transactions. Using Audit History, you can see who exactly made changes to a transaction recorded in your business’s Quickbooks account.

How to Use Audit History

To use Audit History, log in to your Quickbooks account and open the transaction that you’d like to view changes for. It’s important to note that Audit History only works with a single transaction. You can not use it to view changes on multiple transactions simultaneously. Rather, you’ll need to open and view each transaction separately to see their respective changes and who made those changes.

With the transaction open, click the “More” link at the bottom of the page, followed by “Audit Trail.” You should now see the Audit Trail featuring all changes made to the respective transaction. As you go through these changes, you can see who made them as well as when they were made.

What About Audit Log?

You can also use the Audit Log to view changes made to your business’s transactions in Quickbooks. The key difference between the Audit Log and Audit History, however, is that only the Audit Log allows you to view changes made to multiple transactions. To use this feature, log in to your Quickbooks account and click the gear icon at the top of the page, followed by “Tools.” Next, select “Audit Log” from the drop-down menu, at which point you can filter the results by user, date and events. The Audit Log in Quickbooks will show up to 150 transaction records at once. However, you can view more records by clicking “More” at the bottom of the screen.

Have anything else that you’d like to add? Let us know in the comments section below!

Understanding Assets on Your Quickbooks Balance Sheet

In Quickbooks, a balance sheet is an essential component of your business’s financial records. This document features two columns, one of which is a list of assets, whereas the other is a list of debt and liabilities. Analyzing your business’s balance sheet can help you understand the true value of your business. If your business’s debt and liabilities are greater than its assets, for example, it indicates a low (or no) value. But what exactly constitutes an “asset” on a balance sheet?

Cash

Cash on your business’s balance sheet refers to money in hand, deposits in bank accounts and any short-term investments that you can easily convert into cash.

Securities

Securities on your business’s balance sheet include market securities like stocks, bonds, certificates and other investments that you can easily trade.

A/R

While most business owners are familiar with cash and securities, many are confused when they see “A/R” listed on their balance sheet. A/R refers to accounts receivable. Not to be confused with accounts payable, accounts receivable is money owed to your business by a customer, client, vendor or any other party. Many businesses allow their customers or clients to pay after their product has been delivered or service has been completed. Until the customer or client pays the required amount, the transaction is considered A/R. If your business has significant money tied up in A/R, you should follow up with customers or clients on a regular basis to request payment.

Inventory

As the name suggests, inventory on your business’s balance sheet refers to tangible equipment, products, goods and other items that you can sell. Inventory is considered an asset because of its monetary value. You can essentially sell inventory to turn it into cash, thereby making it an important asset for many businesses.

Prepaid Expenses

Finally, prepaid expenses on your business’s balance sheet are ongoing, regular expenses needed to conduct your business’s operations. According to Intuit, insurance is a common type of prepaid expense incurred by many businesses. When a business purchases insurance, it must record those insurance payments as prepaid expenses on its balance sheet.

It’s important to note that there are also property and intangible property assets on balance sheets. These two assets, however, are considered non-current assets, whereas the other assets described in this blog post are considered current assets.

Have anything else that you’d like to add? Let us know in the comments section below!

How to Delete a Bank Account From Quickbooks

One of the great things about adding your bank accounts to Quickbooks is that it allows you to see all the transactions — including deposits, withdrawals and payments — from Quickbooks. Rather than logging in to each of your online bank accounts, for example, you can simply launch the Quickbooks accounting software. It will automatically pull data from your respective bank accounts, revealing this information in a single, convenient interface. There are times, however, when you may need to remove a bank account from Quickbooks. So, how do you delete or remove a bank account from Quickbooks?

How to Hide a Bank Account

In some cases, hiding the bank account might be better than actually deleting it. When you hide a bank account, Quickbooks will retain all the data from the account, but it will remove this information from the screen so that you can navigate the accounting software more easily. As a result, you can still access your bank account’s information from Quickbooks even when it’s hidden.

To hide a bank account, log in to Quickbooks and click the gear icon at the top of the screen. Next, click the drop-down menu and select “Bank Accounts.” You can then scroll through the list of bank accounts to choose the one that you’d like to hide. Next to the account name, click the toggle button for “Show Account” so that it displays “OFF” rather than “ON.” Once finished, Quickbooks will hide this bank account.

How to Delete a Bank Account

Hiding a bank account doesn’t actually remove it Quickbooks. To completely remove a bank account, you’ll need to delete it. This involves going back to the main Quickbooks screen and clicking the gear icon. Next, click the drop-down menu again and select “Bank Accounts.” Scroll through the list of bank accounts until you find the account that you’d like to delete. You should see a trashcan icon in the upper-right corner of the account window. Clicking this icon will initiate the delete process. Quickbooks will ask you to confirm the account’s deletion by entering “DELETE,” after which the account will be removed from Quickbooks.

Remember, deleting a bank account completely removes the account from Quickbooks. This is a permanent action that you cannot undo. Therefore, it’s recommended that you create a backup before attempting to delete any bank accounts from Quickbooks.

Have anything else that you’d like to add? Let us know in the comments section below!

Creating a Delayed Charge Invoice in Quickbooks

It’s not uncommon for business owners to invoice their customers or clients at different intervals. While some business owners collect payment during the transfer of the goods or services, others wait until later. When accepting payment after the delivery of goods or services, you should consider using a delayed charge invoice. As the name suggests, this special type of invoice “delays” the charge, allowing customers or clients to pay for their purchase at a later date. To learn more about delayed charge invoices and how to create them using the Quickbooks accounting software, keep reading.

You can easily create a delayed charge invoice in Quickbooks Online — the cloud-based version of Intuit’s accounting software — by logging in to your account, clicking the (+) menu at the top of the screen and choosing “Delayed Charge” under the column for “Customers.” From here, you’ll need the select to whom you want send the delayed charge invoice. If the customer isn’t listed in your Quickbooks account, you’ll need to add him or her by clicking the “+Add new” button. While adding a new customer may sound tedious, you don’t have to enter all the information for the customer. Rather, creating a delayed charge invoice only requires you to enter the customer’s name. You can go back into your Quickbooks account later to update the customer’s other information.

After selecting the customer, Quickbooks will prompt you to enter a date for the purchased product or service. Keep in mind that this is not the “due date” for the invoice. This is the date on which the customer agreed to purchase the product or service. Double check the date to ensure it’s correct, at which point you can proceed to the next step. Next, you’ll need to enter the product or service that you sold to the customer. Like customers, Quickbooks allows you to select the product or service from a drop-down menu. And if the product or service isn’t listed in your Quickbooks account, you’ll need to add it by clicking the “Add” button.

You’re almost finished. Now comes the process of choosing an “Income Account” in the “Product or Service Information” field. Finally, enter a price for the product or service, followed by clicking “Save and Close” to complete the process. Once finished, you’ll have a delayed invoice ready for the customer or client.

Did this tutorial work for you? Let us know in the comments section below!

How to Record a Bounced Check Payment in Quickbooks

When accepting checks as a form of payment for your business’s products or services, you run the risk of having the check bounce. If the customer doesn’t have enough funds in his or her bank account to cover the cost of the purchased product or service, the check will bounce. Typically known as non-sufficient funds (NSF), it’s a common occurrence encountered by countless businesses. To prevent a bounced check from negatively impacting your business’s financial records, though, you’ll need to record it. If you use Quickbooks, you can easily record a bounce check payment in just a few simple steps.

Bounced Check Feature

Quickbooks Desktop actually has a bounced check feature that’s designed specifically for recording bounced check payments. To use this feature, log in to your Quickbooks account and click Customers > Customer Center > Transactions > Received Payments. From here, you’ll see a list of all payments that your business has received. Scroll through the list until you see the payment associated with the bounced check, at which point you can double-click it to record it as an NSF.

There are a few more steps to recording a bounced check using this feature, however. Once you’ve marked the customer’s payment as an NSF, you’ll need to access the “Receive Payments” window, from which you can click the “Record Bounced Check” option. Keep in mind that you can only record a bounced check if the check is not waiting to be cleared. Rather, this feature is only available to checks that have been cleared by the respective bank, even if the clearing resulted in an NSF.

Manually Recording Bounced Check

You can also record a bounced check payment in Quickbooks manually. This is a slightly more tedious process, but it’s still a viable solution for handling these bad payments. To record a bounced check manually, you’ll need to create an account as well as an item to track the NSF. Next, you must record the NSF that your business incurred from its bank. Finally, you can reverse the customer’s original payment so that it doesn’t affect your accounting records. While optional, you can also send the customer an invoice for the NSF fee charged by your bank. If you don’t send a customer an invoice for this fee, your business will incur this expense, which is usually around $30 or $40.

Did this tutorial work for you? Let us know in the comments section below!

How to Record Cash Sales in Quickbooks

In recent decades, credit cards have become the preferred method of payment among consumers. When buying a product or service, most consumers prefer to pay using a credit card. But while it’s the most common type of payment, it’s not the only option available for consumers. Many consumers still pay using cash. As a business owner, you must properly record these cash sales so that they won’t throw off your financial records. Using the Quickbooks accounting software, you can easily record cash sales in just a few simple steps.

Handling cash transactions in Quickbooks requires a different approach than credit card, debit card and check transactions. When you receive payment from a customer, you typically record the payment immediately when you receive payment. If a customer pays using cash, however, you can wait until the end of the day to record the payment. This involves creating a Sales Receipt template for each day during which you received at least one cash payment from a customer.

To create a Sales Receipt template in Quickbooks, you’ll also need to create a Products/Services with various account types, including sales category, sales tax, overage/underage and cash. Basically, you want to record all of the sales as positives and all the cash payments that you’ve received from customers as negatives. At the end of the day, you can compare these numbers to ensure that the balance equals zero. The total amount of your positives should be the same as your negatives. If your positives for the day are higher than your negatives, this indicates an underage  — meaning your cash register is short and you didn’t receive all the payments from your customers for the day.

A typical sales receipt in Quickbooks lists the sales amount, sales tax and cash payment. The sales amount and sales tax are positive, whereas the cash payment amount is negative. When you add the items together, they should equal zero. If it’s not zero, you made an error and should go back to try and identify it.

After creating a sales receipt, go back to your Quickbooks account and access the “Undeposited Funds” section, at which point you can record the deposit amount. This, of course, is the amount of money from the cash payment that you deposited into your back account. For more help on creating recurring templates, including Sales Receipt templates, in Quickbooks, check out this Intuit article.

Did this tutorial work for you? Let us know in the comments section below!

How to Modify a Sales Receipt That’s Been Deposited in Quickbooks

Do you need to modify a sales receipt that you’ve already deposited into your bank account? In Quickbooks, you can’t edit or otherwise modify a sales receipt after depositing it. However, there’s a simple workaround that will allow you to make changes to it. This involves removing the sales receipt, followed by editing it, and then adding it back to your deposit. It may sound like a lot of work, but it’s actually relatively easy and painless. Here’s how to modify a sales receipt in Quickbooks that you’ve already deposited.

First and foremost, you’ll need to remove the sales receipt from the deposit. This is done by logging in to your Quickbooks account and clicking the gear icon at the top of the page, followed by “Chart of Accounts.” After locating the deposit account, click the “View register.” Next, locate the deposit with the sales receipt and click “Edit.” You can then click the check mark  to remove the transaction from the deposit. Complete the process by clicking “Save,” followed by “Yes.”

After removing the sales receipt from the deposit, you’ll need to edit the payment. Go back to the home screen of your Quickbooks account and click the gear icon, followed by “Chart of Accounts” again. After locating the deposit account, click “View register.” Next, locate and open the deposit. You should see a “Received From” field, in which you can choose the customer whom paid you the money. Clicking the customer’s name will open the “Sales Receipt” window, and here you can modify the payment. When finished, click “Save” and “Yes” to complete the changes.

The final step is to replace the sales receipt in the deposit. Remember, the entire process of modifying a sales receipt that you’ve already deposited involves removing the sales receipt from the deposit, editing it, and then adding it back. With your sales receipt edited, it’s time to add it back. Go back to your “Chart of Accounts” and “View register,” and choose the deposit. From here, you can click “Edit” to add it back. When finished, click ‘Save and Yes,” after which the newly corrected deposit should now appear in your account. Keep in mind that you may see the letter “R” next to your deposit. If present, this indicates that it has been reconciled.

Have anything else that you’d like to add? Let us know in the comments section below!

How to Run a Retained Earnings Report in Quickbooks

As most business owners already know, retained earnings are the profits invested back into a business. When a business generates profits, it may spend those profits on products, services or payroll to further grow and reach new customers. The money invested for this purpose is classified as retained earnings. While most business owners are familiar with the general concept of retained earnings, many don’t know how to view this financial metric in their books. Assuming you use Quickbooks, however, you can run a retained earnings report.

When viewing your business’s balance sheet in Quickbooks, you won’t see retained earnings. This is because retained earnings is considered a rollover from all your business’s past years of profit or loss. Therefore, the correct way to view your business’s retained earnings is to run a “Profit and Loss” report.

To run a “Profit and Loss” report in Quickbooks, log in to your Quickbooks account and click “Reports” from the menu on the left-hand side. In the “Go to” field, select “Profit and Loss,” followed by “Profit and Loss” report. You should see a new menu for the “Profit and Loss” report appear. Click the drop-down menu next to “Report period,” and select “All Dates.” Next, click “Run Report” so that Quickbooks will create a report for your business’s profits and losses. Once Quickbooks finishes with the report, choose “Net income” for the amount.

Assuming you followed these steps correctly, you’ll see a “Profit and Loss” report that includes all transactions that affected your business’s finances. Of course, this method shows your profits and losses from all previous years. You can run a “Profit and Loss” report by year by making a few changes.  This is done by choosing “Reports” from the main main, followed by “Profit and Loss” in the “Go to” field. However, you’ll need to click “Customize” in the upper-right corner of the report menu, followed by “Rows/Columns.” Next, click the “Columns” drop-down menu and choose “Fiscal Years” or “Calendar Years.”

It’s a good idea to run a “Profit and Loss” report on a regular basis. Using this report, you’ll be able to see your business’s retained earnings, thereby giving you a better understanding of your business’s financial health. Without this information, you won’t be able to make educated decisions regarding your business’s finances and its future.

Did this tutorial work for you? Let us know in the comments section below!

What Is Progress Invoicing in Quickbooks?

When using Quickbooks to keep track of your business’s financial transactions, you’ll probably come across the term “Progress Invoicing.” This billing feature works like traditional invoices but with one major difference: Progress Invoicing is used to send many small invoices to a customer rather than a single invoice for 100% of the money owed. It’s called Progress Invoicing because it invoices the customer based on the progress of the work or job purchased. To learn more about Progress Invoicing and how to use this feature in Quickbooks, keep reading.

The purpose of Progress Invoicing is to bill customers incrementally rather than all at once. When a business sells a service to a customer, it may send the customer an invoice requesting payment. From landscapers and painters to advertising firms and doctors, countless businesses use invoices to bill their customers and collect payment for their services or goods sold. And while you can always use the traditional invoicing method of sending customers a single invoice, Progress Invoicing is a viable alternative that’s particularly useful for jobs that require a significant amount of time to complete.

Not all businesses need to use Progress Invoicing. While there’s no single right way to use it, Progress Invoicing is best used to bill customers for work that’s completely in incremental stages. A business-to-business (B2B) advertising company, for example, may use this feature to send its customers partial bills at different stages of their service. When one segment of the company’s advertising service has been completed, it may send the customer a partial invoice. And after the company completes the next segment of its service, it may send the customer a second partial invoice. There’s no limit to the number of partial invoices that you can send using Progress Invoicing. The most important thing, however, is that you invoice customers for the appropriate amount. In other words, don’t overbill your business’s customers by sending them too many partial invoices.

You can enable Progress Invoicing in Quickbooks Online by logging in to your account and clicking the gear icon at the top of the page. From here, click Account > Settings > Sales > Progress Invoicing. You’ll then need to click the pencil icon, followed by choosing “Create multiple partial invoices from a single estimate.” To complete the process, click “Save,” followed by “Done.” Quickbooks Online will now allow you to create an invoice using one of your saved estimates.

Have anything else you’d like to add? Let us know in the comments section below!

LAYOUT

SAMPLE COLOR

Please read our documentation file to know how to change colors as you want

BACKGROUND COLOR

BACKGROUND TEXTURE