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!


5 Tips for Keeping Inventory Accurate in Real-Time

5 Tips for Keeping Inventory Accurate in Real-TimeHow to make ecommerce overselling a thing of the past and peace of mind your SOP.

When used correctly, QuickBooks can be a very powerful tool for tracking inventory. But the key to using QuickBooks to track inventory successfully is in appreciating how and why QuickBooks tracks all inventory activity at the item/product level.

1. Proper Item/Product Setup: It may be tempting to start recording your sales in QuickBooks and watch the revenue grow, but to get the most reliable financial reports, you’ll need to put in some time and effort up front. Here’s how to think through your inventory setup and list organization:READ: 5 Tips for Keeping #Ecommerce #Inventory Accurate in Real-Time. #Unify Click To Tweet

  • Do you want to use the SKUs from your website or other sales channel for your item/product names? If so, you can populate the “item name” with this info or choose to populate another data field with the SKU. Webgility Unify’s mapping features help to streamline the matching of different SKUs between all sales channels.
  • Decide how to organize your list. QuickBooks Online allows for product categories, but QuickBooks Desktop does not have the category feature. However, you can organize your QuickBooks Desktop lists by using the field: sub-item of.
  • Consider adding a few income accounts within your chart of accounts for a clearer view of your income on the P&L. Once these accounts are set up, you can choose to which account each item/product’s revenue maps from the dropdown menu in your item/product screen. Also, if you are in QuickBooks Desktop, you can change your mappings in bulk: Lists > Add/Edit Multiple List Entries
  • The cost field in the item/product setup is mostly just used to populate the default value on your purchase transactions (bills, purchase orders). This cost field is not directly used to calculate your inventory value—more on that below.

2. Accurate Starting Counts: Ideally, you want to get started with a physical inventory and accurate item/product counts. But realistically, it can be a challenge to get all of your inventory counted at once. If this is too overwhelming, start with a large even number, like 100 or 1,000 units for the inventory count of each item/product, and then adjust as accurate counts are done using a quantity adjustment. When recording the adjustment, Just be sure to use the date of the actual count.

3. Proper Inventory Workflow: Now that you have inventory set up, you need the proper workflow to maintain accurate counts and costs. The following transactional documents can add inventory quantities to QuickBooks: Continue reading

How’s Your B2B Back-End?

How's Your B2B Back End?
Tips for setting up workflows that produce more cash and less chaos.

When it comes to selling both B2C and B2B, with every product, price, and customer comes more data complexity. In fact, the pressure selling to these two groups puts on back-end systems is often the cause of unpleasant confusion on both sides of the sales funnel.Setting up #B2B workflows that bring more cash and less chaos. #Unify @QuickBooks Click To Tweet

Let’s consider the simplest use case—selling products with different price points. If you have different price points for different customer segments, you’ll need to keep track within some system of record, typically in accounting. Instead of creating proper structural rules, most sellers end up creating different SKUs and then tagging a different price for each of them. Or they keep the product at the same SKU but provide different business logic for each customer segment and its corresponding price point. Continue reading

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