How do I transition from keeping inventory in Excel to QuickBooks?

How do I transition from keeping inventory in Excel to QuickBooks?Taking this important leap could save your business and your life. 

You’re going to be happy with the results, but it might take a little work to get there. At first, the key focus is to get your inventory set up down to the item level in QuickBooks—Webgility Unify is great at pulling in that data from all the different sale sources. And QuickBooks gives you amazing reports so you’ll know exactly where you stand, what’s selling, and what your profits are per product. It does need to be set up properly, so it’s worth taking the time to move your data from Excel correctly.Save your business, save your life, transition from @Excel to @QuickBooks to track #ecommerce #inventory. Click To Tweet

But some businesses don’t want to track their actual on-hand quantities, so you can also set things up as non-inventory items. The key is to capture all the details down to the product level. In fact, you’ll need to set up your accounting with as much detail as you want to track—bank fees, expenses, and shipping costs. In fact, that’s probably what you’re currently tracking in Excel. QuickBooks can help you automate that data by connecting to your sales channels, the banks, payment processors, and credit card companies. When you set up some rules to enable that automation, then instead of writing out checks and payments yourself, QuickBooks can handle that for you.

Once you make the leap from Excel to QuickBooks, it takes some extra effort to get started and then so much of the busywork is simplified for you. Because it’s hard to make the initial transition, commitment is the key to making the switch successfully—and that goes for any software you choose. But if you’re committed, you’ll save tons of time and money in the long run and even have better visibility into the KPIs that can help you grow your business. Moving to QuickBooks will also get everyone in the business on the same page with a system of record to help you track everything and know for sure how things are going. Good luck!


Simple Ecommerce Sales Tax Hack

Simple Ecommerce Sales Tax HackCompliance isn’t complicated with the right tools

Ecommerce sales tax is a moving target these days. It’s a tough one to stay on top of, but every business must deal with it. Just to be perfectly clear—collected sales tax is neither a cost to the seller nor does it belong  to the seller once it is collected. But it is the seller’s responsibility to collect the required sales tax from their customers and submit to tax agencies when it is due.

For starters, you need to have your shopping cart set up to collect sales tax. At that point, an automation software like Webgility Unify can grab it and record it in QuickBooks. This is helpful because, at any point in time, you can easily view your Sales Tax Liability in QuickBooks. In other words, you know what money you’re holding for different states and you are not spending that isn’t yours. Continue reading

Do you know your line item profitability?

Do you know your line item profitability?How transactional accounting reveals the financial insights you may be missing

To the seasoned world of accounting, ecommerce is still in its infancy. As such, it’s no surprise that bookkeeping practices of old are often used to serve the most basic needs of this decidedly modern industry. For example, although journal-entry accounting can be a quick way to summarize and book revenue and expenses of an ecommerce business, it falls short in providing many other important pieces of like which products are making or losing money or which geographic areas are cheapest to ship. This is especially true for those selling complex product catalogs on multiple sales channels.  

What’s wrong with journal-entry accounting? It lacks depth.
Modern electronic accounting systems like QuickBooks, Xero, and NetSuite are not journal-entry accounting systems. While they do provide the ability for an accounting professional to directly enter ledger changes as a journal entry, this feature is provided as an intended method of correction or as a means of entry for otherwise unbookable items. This feature is not intended to be used as the regular method of entering product sales, merchant expenses, vendor purchases, or shipping fees—which represent just a few of many commonly misused journal entries.How transactional #accounting reveals the financial insights you may be missing. #Ecommerce @QuickBooks @Xero #Unify Click To Tweet

Also in a journal-entry system, the bookkeeper or accountant may complete a single batch entry to the sales income account for all revenue generated by the transaction. He or she also may post a batch journal entry for any merchant account expense on the order, and yet another summarized entry for any fulfillment fees booked for that order. So this bookkeeper would have taken several actions to book very generalized information about this order and, while the information itself is correct, it still lacks depth. Basically, journal-entry accounting is a temporary bandage on a problem that will only grow and become unmanageable as the business grows.

What is transactional accounting?
Transactional accounting is when entries are created from transactional documents such as bills, invoices, and credit card charges. This type of accounting allows for much greater transactional detail than a simple journal entry, while simultaneously creating a link with related transactions such as purchase orders, bills, and payments. Many accounting systems like QuickBooks Online and Desktop, Xero, and NetSuite are built around transactional accounting. For example, instead of making a general-ledger entry to a sales-income account to book revenue from a single online sale (or a day of sales), a receipt is filled out with a deposit to account, products, and services with prices and inventory relieved or removed, as well as merchant and shipping charges. Continue reading

The Difference-Maker: QuickBooks Enterprise

Ask a QuickBooks ProAdvisor: Multichannel InventoryWe’re often asked, what are the best practices for managing inventory across multiple stores and warehouses in QuickBooks?

With QuickBooks Enterprise Platinum Edition, you can actually segregate the on-hand quantities of inventory by specific warehouse. That allows for full visibility as you’re syncing sales. Of course, with QuickBooks, Webgility Unify makes it even easier. This feature allows you to keep an eye on your inventory in all locations in real time. For even more control, you can set the reorder points for each location so your stock is always replenished. Alerts on low stock help make sure you have time to contact vendors and receive shipments.

When you’re selling on multiple channels, mapping your inventory and setting up reorder details up is absolutely key. Inventory accuracy prevents overselling. Because overselling can lead to bad reviews or loss of customer trust, it can be the kiss of death for an online business. With the right version of QuickBooks as your system of record for both finances and inventory, it’s possible to make a large portion of your business far more efficient and free up a great deal of time, effort, and energy. #Ecommerce reports are only as good as the data behind them, so give your multichannel inventory the time it deserves. @QuickBooks #Unify #Automate Click To Tweet

Because new customers who are onboarding Webgility Unify are excited to start right in on the order flow, we’re always careful to point out the importance of properly setting up inventory. Fair warning: Sometimes this takes a good bit of work! In fact, we’ve found that if you pause and do a bit of heavy lifting, so to speak, around inventory, you’ll be much more organized once sales start to come in. For example, if you set up order flow before mapping out inventory, the reports you run will be missing crucial information and you’ll have no idea what’s in stock.  Continue reading

How to Track Your Ecommerce Sales Tax

Sales tax compliance is trickier than it sounds, but it doesn’t have to be. 

It’s just a fact—every business has to pay taxes. Retailers are responsible for collecting, tracking, and remitting sales tax to their local tax authority. If you’re an online retailer, you generally must charge sales tax on purchases by customers who live in any state where you have a physical presence. But how do you know the appropriate sales tax rates for your business?

Below we outline some ways to figure it out. Much of it depends on whether you have a single tax rate or a variable tax rate.

How to Track Your Ecommerce Sales Tax
If you only have one tax rate
If you’re using QuickBooks as your accounting software, keep in mind that QuickBooks is designed for businesses that have a standard tax rate. If you’re charging all your customers the same tax rate—for example, if your business is located in a state which has a single tax rate, like New Jersey, and you only conduct business in that state—you’re in luck, because you can find the information you need within QuickBooks. If not, don’t worry, we’ll cover that in the next section.How to track your #ecommerce sales tax. From your friends at @Avalara + @Webgility #Unify Click To Tweet

In each transaction, you’ll see the tax field at the bottom. If you’re using ecommerce integration software like Webgility Unify, you can configure it to record taxes in the tax field.

If you have variable tax rates
Many ecommerce businesses use variable tax rates, meaning they calculate sales tax based on the customer’s location. Some states require this—and big states like California can have over 100 sales tax jurisdictions. Continue reading