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4 posts from June 2015

Avoid This Common Mistake with Inventory Adjustments in QuickBooks

Ah yes...

Inventory - the ongoing pain in the side (or elsewhere) for many businesses.

Here is a simple trick to avoid making the pain any worse in your business when it comes to making adjustments to your inventory in QuickBooks...

  • Do NOT use the "Inventory Asset" account (or whatever balance sheet account is set up to track inventory) on the Adjust Inventory screen. I repeat - do NOT.

Let me explain...

When you are in the Adjust Qty/Value screen of QuickBooks, the inventory asset account is already being impacted by the entry you make. If you set up your adjustment screen like this example:

You will be both increasing and decreasing the value of your inventory asset account for the value of these 605 items that are being adjusted. The screen itself is already adjusting the inventory account by default, and by you selecting the "Inventory Asset" account in the adjustment account box, you are adjusting the inventory account all over again.

So in effect, you have increased and decreased the inventory asset account for a net result of $0. Bad idea...

A BETTER WAY...

Same entry as above, with a different adjustment account:

In this entry, since the count of the item went down, the value of the inventory asset account will decrease automatically (what we want) and you will then be recording the value of this decrease into a new account called "inventory adjustments" which I recommend setting up as a cost of goods sold type of account.

All is well and your accountant will be smiling!

RELATED INFORMATION:

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Alternatives to QuickBooks Billing Solutions

This article will help prepare you for a potential disruption in your use of QuickBooks.

This disruption relates to the upcoming discontinuation of the QuickBooks Billing Solutions service as of July 1, 2015.

As I understand if from Intuit, all current users of the QuickBooks Billing Solutions service should have received a message similar to the one below...

DISCONTINUATION OF QUICKBOOKS BILLING SOLUTIONS MESSAGE:

This is a reminder that we have updated our QuickBooks invoicing capabilities and will soon discontinue QuickBooks Billing Solutions. We now offer eInvoicing capability for billing customers and receiving payments in QuickBooks 2015. If you are already using eInvoicing or another solution, please disregard this message.

What is changing?

The ability to send invoices through your e-mail client, send invoices by postal mail, and request online payment with QuickBooks Billing Solutions will be discontinued on July 1, 2015. Your customers may continue to pay invoices, access historical invoices and payments and you may download their invoice payments until August 31, 2015.

We have introduced new eInvoicing capability for you to bill your customers. You will no longer be charged an additional fee for the service and you can use your existing QuickBooks Payments account with your current rates to process the payments. We now offer the option of accepting ACH payments at just 50 cents per transaction. Your customers will still be able to pay you online and enjoy an updated payment experience. Learn more about eInvoicing.

What you need to do

Our records show that you have already upgraded to QuickBooks 2015 which includes eInvoicing capability. We recommend that you begin using eInvoicing as soon as possible to avoid disruption to your business.

If you choose not to use eInvoicing, you can still bill your customers by e-mailing or printing and mailing invoices to your customers. Customers can pay by sending payments through the mail or by calling your business and providing a credit card number. You will then manually enter payments into QuickBooks.

What if I have questions?

We've answered many questions in our online support center; or, you may call us at 800-268-9065.
Ending support for features is not a decision we take lightly and we apologize for the inconvenience. 

WHAT IT MEANS...

One of the key features of the QuickBooks Billing Solutions service was the ability to e-mail a customer their invoice with a payment link embedded in it. The customer could then choose to pay the invoice online by clicking the link. following the prompts and then having all that information electronically sync into your QuickBooks. All of that goes away based on their announcement.

WHAT ARE THE OPTIONS NOW?

  • If you use QuickBooks desktop 2014 or older, you will need to find an alternate solution for allowing your customers to pay you electronically (see discussion below) or upgrade to QuickBooks 2015 and then sign up for the QuickBooks e-invoicing solution. This solution is not available for any version of QuickBooks other than 2015.

  • If you use QuickBooks desktop 2015, you can sign up for the e-invoicing solution within the software or consider alternative solutions.

IMPORTANT NOTE: As of the date of this article, even if you use the QuickBooks e-invoicing solution, you can't automatically download that information into QuickBooks. There have been numerous reported cases of this not functionality not working properly.

ALTERNATIVES TO QUICKBOOKS E-INVOICING/BILLING SOLUTIONS

If you choose to go another route, here are two very solid options for you to consider to allow customers to pay you electronically and have the information automatically download into QuickBooks.

Options to consider:

DO YOU USE A DIFFERENT SOLUTION?

Are you using an electronic payment solution for QuickBooks not mentioned above?

Please drop your thoughts into the comment box below and let us know about it!

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QuickBooks Desktop Version Outranks QuickBooks Online and Others

G2 Crowd recently released their research report to compare the best accounting software options for business. Thanks to them for making these results available!

Here is a graphic that recaps the results of the report (click the graphic for more details):

 

When ranked according to user satisfaction, here is how the packages stacked up:

  • Intacct - 95
  • Xero - 85
  • QuickBooks Desktop - 83
  • Freshbooks - 82
  • NetSuite - 49
  • Financial Force - 45
  • Sage 100 ERP - 44
  • Microsoft Dynamics GP - 17
  • QuickBooks Online - 10

Taking a look at the results of the direct comparison of QuickBooks Desktop and QuickBooks Online, note that QuickBooks Desktop scored a 4.0 out of 5 stars, and QuickBooks Online scored a 2.1 out of 5 stars.

The survey also offers other comparisons, such as the G2 score, # of ratings and market presence. Be sure to click into the report for detailed user feedback and many other product details and insights.

THE DEBATE RAGES ON...

It is interesting to observe that of the nine entries listed above, three of them are the traditional desktop platforms (QB Desktop, Sage 100, and Microsoft Dynamics GP). All the others are strictly cloud based solutions.

The buzz has been building for small businesses to move to the cloud for their accounting needs. If your business uses QuickBooks, maybe the results above suggest that you don't move quite so fast off the desktop version? If you have graduated from QuickBooks, maybe the cloud is the way to go.

WHAT DO YOU THINK?

Please share your thoughts on the QuickBooks Desktop vs. QuickBooks Online and cloud vs. desktop accounting debate in the comment box below and let us know how your business views this debate...

HELPFUL RESOURCES:

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Easily Collapse Specific Sections of Reports in QuickBooks

There is a feature inside QuickBooks reports that many businesses are not familiar with, even though they see evidence of it each and every time they run a report.

While I am unsure of the technical term Intuit has assigned to this feature, I'll refer to it as the "collapse" arrow. By clicking this arrow on or off, you have the ability to control just how much detail shows up in your reports.

For this example, we'll use the Profit and Loss Standard (Reports > Company and Financial > Profit and Loss Standard) and focus on the Cost of Goods Sold section to show you exactly what I am referring to.

This first screen shot shows the report as it looks when it is first created - the expanded view showing all the accounts and balances:

Now, I will click the arrowhead - here is what this section of the report now looks like:

See how the "Job Expenses" section of the report has been collapsed down to one number?

This is a great way to get your reports to look just like you want them to!

Just in case you are not seeing the arrowhead above, it means you are using a version of QuickBooks prior to 2013. The feature first became available in QuickBooks 2013.

Pretty handy, eh?

ADDITIONAL RESOURCES...

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