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5 posts from September 2014

10 Sales Tax Tips Your Business Needs to Know

You're invited to our....

Webinar: Sales Tax 101 for the Small Business Owner

Avalara LogoDebates over online sales tax and related statutory rules and rate changes have vaulted sales and use tax compliance to the top of every savvy businessperson’s 2014 action list.

Understanding how to implement safeguards and systems, monitor widely varying statutory rules, and find efficient ways to collect and remit the right sales and use tax to the right jurisdiction at the right time, can baffle even the most compliance-minded  businessperson.

Developed by Avalara tax experts, this webinar will cover the top ten sales and use tax tips will help your business develop an effective proactive sales tax strategy long before the auditor knocks on your door.

Learning Objectives include:

• Understanding sales tax compliance when selling into new states
• The sales tax implications of selling over the Web
• How selling new products & services impacts your tax liability
• How failing to adapt compliance activities to changing rules and regulations increases your audit risk

As Congress reconsiders federal legislation to require remote sellers including online retailers) to collect sales tax, companies might find themselves on the wrong side of an audit notice. Keeping pace with the vast array of tax requirements requires determination, intelligence, and the right tools.

Join us for this webinar and learn what you can do to stay ahead.

Thursday, October 9, 2014; 1 p.m. Eastern/10 a.m. Pacific

Register Now Button

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QuickBooks Cost of Goods Sold - Where Does the Number Come From?

I have been fielding many questions lately about the cost of goods sold line on the profit and loss report in QuickBooks.

Time to take a closer look...

For this article, we'll focus on inventory parts and inventory assembly items in your QuickBooks.

IN THE BEGINNING...

When you created your inventory part or inventory assembly item the very first time in QuickBooks, you had to tell it what "COGS Account" (COGS = Cost of Goods Sold) to use. See the example screen shot below:

When this item appears on an invoice or sales receipt in QuickBooks, the instructions above tell it to post to the 50100 - Cost of Goods Sold Account each and every time. No exceptions (your business may only use account names and not numbers - that is just fine).

WHERE DOES IT GET THE AMOUNT?

As we know, for every transaction in QuickBooks, there is not only a ledger account but also an amount that has to post.

Much confusion exists as to where QuickBooks pulls the actual amount that gets posted to the COGS account.

Here's the scoop...

For inventory parts and assembly items, QuickBooks pulls from the value in the "average cost" field to fill in the cost of goods sold amount when the invoice or sales receipt is completed. See the screen shot below:

In the example above, if 2 of this particular item were sold on an invoice or sales receipt, a total of $6 would post to the 50100-Cost of Goods Sold account.

Keep in mind that this is an average cost - it is not a FIFO, LIFO, Standard or Landed Cost.

DON'T BE FOOLED

Many have been mistakenly led to believe that the cost that posts to the COGS account is not the average cost amount, but rather, the amount showing in the generic "Cost" box. See the screen shot below:

This understanding is not true. The generic "cost" box is more of a "management cost" type of box that is either updated manually or when purchase orders are created.

UNDERSTANDING THE PROFIT AND LOSS

My hope is this brief lesson will help you have a better understanding of the activity that is showing up in the cost of goods sold account on your QuickBooks profit and loss report.

Of course, other transactions such as bills or credit card entries can also post into the COGS account, but understanding how inventory parts and assemblies post will be a big plus to help you manage your business...

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Salesforce.com for QuickBooks Desktop Versions Being Discontinued

How quickly things are changing in the technology world!

Shortly after Intuit announced they would be dropping their mobile app for the desktop versions of QuickBooks, the following plopped into my inbox:

"Salesforce.com for QuickBooks desktop will no longer be offered"

Hmmmm....

DON'T BE CONFUSED!

"Salesforce.com for QuickBooks" is NOT the same as the longstanding Salesforce.com product. The Salesforce.com product is still going very strong and there are several companies that do offer links to connect the traditional Salesforce.com software to QuickBooks desktop.

The "Salesforce.com for QuickBooks" solution was something Intuit introduced four years ago with great fanfare. Apparently, the great din and commotion back then has been reduced to background noise and demand far below expectations for the program to be discontinued.

The "Salesforce.com for QuickBooks" web site is still active as of this writing. Note that all inquires once you get to the site are being directed to the traditional Salesforce.com folks.

There is also mention of Salesforce integration with QuickBooks Online, so it appears that program is still alive and well.

This move to drop the connection to the desktop version of QuickBooks isn't surprising, as Intuit continues their march toward getting their users into the cloud somehow (more on that in a future blog post).

CRM ALTERNATIVES

Find all of the above to be migraine inducing and want a more stable, less hassle CRM solution for your business?

The Intuit Marketplace has a listing of CRM programs that work with the desktop versions of QuickBooks. The marketplace allows you to browse the solutions, check out use feedback, and much more.

MY FAVORITES

If you were to ask me which CRM systems I like, my answer would be:

WHAT IS YOUR CRM EXPERIENCE?

Care to share insights about the CRM package your business may be considering or using? Feel free to drop your comments in the box below!

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Adding a Line Number to QuickBooks Invoices, Sales Orders, Packing Lists, etc.

As you likely know, the various templates within QuickBooks (i.e. sales order, purchase order, invoice, etc.) don't actually track a "line number" for multi-line orders.

The sample screen shot below is what I'm referring to when it comes to line numbers:

The good news is that you have some options to get these line numbers to appear in your QuickBooks.

Option #1 - Customize the template and add the line numbers manually

For the layout shown above, I went in and customized the template. I created a new column marked "line #", and then manually typed in the number as I entered data into the form. Keep in mind you will need to customize each template where line numbers are desired.

Option #2 - Use the QuickBooks add-on called FormCalc SST to have QuickBooks enter line numbers for you automatically.

Take a look at the example of how their software can automate this and many other functions within QuickBooks as well.

Want to purchase FormCalc SST? Use this link for the best pricing.

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Today is an Awesome Day to...

Make certain that you click Window > Close All (in the menu bar) at the end of your work day.

Awesome StampThis step will close all open windows automatically (and prompt you to save any work in progress).

In addition, it will allow QuickBooks to start faster the next time you open it, since each of the open windows does not have to be created at startup!

OTHER AWESOME THINGS TO DO:

DID YOU GET YOUR COPY?

Be sure to get a copy of my free QuickBooks keyboard shortcuts as well!

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