Now more than ever it is vital for a business to centralize their financials.
As you know, “commerce” now involves both brick-and-mortar stores and selling on multiple channels online. And that’s just the first layer of complexity—this year at QuickBooks Connect, I learned that the average SMB uses approximately 15 applications to manage their business.
Unfortunately, many businesses are still manually entering in much of their sales, inventory, and shipping data into their QuickBooks. But why? This method creates many problems, some of them include:
While an ERP may feel like a logical step for a maturing SMB, I would recommend waiting. If you are considering an ERP, it’s likely that you already have many of the necessary tools, but still struggle because those tools are not in sync. When your tools are not in sync, they cause a mess and confusion, which is more manual work. Continue reading →
Of the many features that you get when upgrading to QuickBooks Premier, there are only a few that I consider essential. The main factors for choose Premier over Pro are:
Simultaneous users: QuickBooks Pro limits you to having three users working on your QuickBooks company file at one time. Premier increases the number of simultaneous users to five.
Manufacturing: QuickBooks Premier allows you to create inventory assembly type items, which is essential if you’re manufacturing products. These items have a bill of materials, which is a list of every component that goes into the finished good. When you perform a build assemblies transaction, you relieve inventory of all of the individual components in the bill of materials and increase the inventory of the finished good. That way, if you’re manufacturing products, you can keep your inventory accurate.
Sales orders: Sales orders are non-posting transactions, so they do not affect your income, expense, or balance sheet accounts. They are documents used for internal company purposes only. Many businesses use sales orders to track backorders and partial shipments. A sales order can be turned into an invoice with one click.
Wholesale and retail sales: While QuickBooks Pro only allows you to create a global discount, Premier allows you to set different price levels for customers, jobs, and items. This feature allows you to have prices automatically adjusted when selling to a wholesaler or preferred customer.
Premier offers many other features that are very useful and can save you a ton of time, such as reversing journal entries, unlimited archive of bank reconciliations, multiple units of measure, and lots more, but the features I have listed above are those that I feel are a must-haves.Continue reading →
Many of our customers sell on multiple channels, which can be convoluted. But we’ve found that selling on a single marketplace can also have its own special complexities that are worth creating work-arounds for. For example, selling on Amazon can be complicated because Amazon operates with its own set of seller rules. One such issue arises when trying to reconcile a physical bank deposit and Amazon records with your QuickBooks undeposited funds. Continue reading →
Some questions come up from Webgility customers repeatedly, including this one: “Can you explain the different item types and how they are classified in my online store in QuickBooks?”
QuickBooks gives you a few options in the desktop software, where you can have inventory parts or non-inventory parts. Inventory parts are going to end up on your inventory asset account and you get to select where they’re going to show up as an asset type. Then every sale is going to take one item out of the asset account and put it in your cost of goods sold. Continue reading →
Before we get into why the cycle count is important, let’s reiterate an important set of conditions: Any item that comes into your warehouse should be accounted for in your accounting system through an item receipt or bill, every time. Also, every item that leaves your warehouse should be accounted for by a sales transaction. So, nothing comes in or goes out without being logged in your accounting system.
Now, about the inventory. Once you’ve done your full physical count, how do you know that your count is accurate? Conducting a monthly cycle count means re-counting the top 10 percent highest volume, quickest selling items to reveal any discrepancies between the counting system and what’s physically on your shelves (or any breakdowns in workflow) so the system can be corrected immediately.Continue reading →