Creating Product and Service Records in QuickBooks Online

QuickBooks Online is good at managing and tracking inventory – as long as you’ve created thorough records.
When you first started your business, you might have been able to keep track of your merchandise by counting manually. But as you and your product list grew, this became impractical. You might have recorded it all in a spreadsheet, or even a box full of notecards.
 
QuickBooks Online has a much better way. Whether you sell products or services or both, you need records of specific items to use in transactions and reports. Those records are especially important if you have physical inventory; they can store details that help you know, for example, when it’s time to reorder.
 
Building a database of your inventory is time-consuming work that requires a lot of detail. But the information it supplies will be of great significance as you make critical buying decisions.
 
Detailed Templates
It’s easy enough to create your individual records. To get started, click the gear icon in the upper right corner of QuickBooks Online and select Products and Services under Lists. A table will open that will eventually contain a comprehensive list of what you sell. Click New in the upper right corner, and the Product/Service information pane slides out. You’ll see your four options here:

 

  • Inventory: Products you buy and/or sell
  • Non-inventory: Products you buy and/or sell that don’t require tracking
  • Services: Services you sell
  • Bundle: Products and/or services that you sell together
We’ll focus on the first option. Click Inventory. Enter the product’s Name and SKU (if there is one) and click the pencil icon to upload a photo if you’d like. If this item is going to be a sub-product or service of another, you’d click the box in front of that option and select the “parent” product or service from the drop-down list.
 

To create an Inventory item record in QuickBooks Online, you’ll have to fill in several fields.
How many do you currently have of that item? Enter the number in the field to the right of Initial quantity on hand, and then enter the As of date in the next box. When your stock level hits a certain number, you’ll want to reorder more. Enter that number in the box to the right of Reorder point.
 
Your item needs to be assigned to an Inventory asset account for tracking and reporting purposes. This field should default to Inventory Asset. If it doesn’t, or if you want a more thorough explanation of this element of accounting, contact us.
 
Enter a description of the item in the Sales information box; this will appear on sales forms. What will your customers be charged for it? This is the Sales price/rate. The Income account should automatically display Sales of Product Income, and you should click in the box in front of Is taxable if that’s the case.
 
If you buy the item to resell, enter a description in the Purchasing information box, and provide your Cost, the price you pay when you buy the item from another source. The Expense account should default to Cost of Goods Sold.
 
When you’re done, save the record.
 
Viewing Your Records
 

Once you create a record for an item or service, it will appear in this table.
 
You don’t have to create records for absolutely every product or service you sell before you start using them. When you create an invoice, for example, and you open the drop-down list under Product/Service, the option at the top of the list will be + Add new. Select that, and the Product/Service information pane opens. You can create a record on the fly.
 
To get to the list of the product and service records you’ve created, click the gear icon in the upper right and select Products and Services, like we did early on here. You’ll see a screen similar to the one pictured above. You’ll also notice that you can link to several action screens from each entry.
 
If you maintain careful item records, you’ll be able to create a number of reports that can advise you on the state of your inventory. Click on Reports in the toolbar, and then All Reports | Manage Products and Inventory. These reports are fairly self-explanatory, but by customizing them, you can get even more focused insight. We can help you with this. We’d also be happy to go over any other aspect of inventory-tracking and management that’s confusing. Just let us know when you want to get started.

Getting Ready for Payroll in QuickBooks Online

Getting Ready for Payroll in QuickBooks Online
Taking on your company’s payroll with QuickBooks Online? Knowing what you’re up against ahead of time will make your setup tasks much easier
Payroll is probably the most complex element of small business accounting. Not only are you directly responsible to your employees, but you also have to make sure you’re handling everything related to benefits and payroll taxes correctly.
Whether you’re switching from a manual system to QuickBooks Online, or you’ve just hired your first employee, you’ll soon discover that the site can make your payroll-related tasks much more organized and accurate – speeding up the process tremendously.
But before you start getting ready for your first payroll run, you have a lot of setup work to be done. Be sure to leave yourself time before those first paychecks are expected.
Our Purpose Here
 
We’ll provide some step-by-step instruction, but initially, we just want you to see what information you’ll need to have available and how QuickBooks Online handles it. This is not meant to be a payroll setup tutorial.
Building a Backbone
 
There’s no particular order set in stone for your payroll preparation tasks, although you will need to provide some background information about your company and its policies before you can start creating employee records.
QuickBooks Online doesn’t walk you through the steps required. It does though display a page with links to all of the data you’ll have to enter. Click the gear icon in the upper right, and then click Payroll Settings. You’ll see this screen:

 

 

 

QuickBooks Online’s 

Payroll Settings screen displays links to the pages where you’ll manage your setup tasks.

 

 

 
You would have entered information about your Contact Information and Work Locations (under the Business Information heading) when you first signed on to QuickBooks Online. At the same time, you would have been exposed to the Chart of Accounts, which already has accounts designated for payroll. You can see them by clicking Preferences | Accounting, but please do not customize these. If modifications are needed, we’ll do them for you.
Payroll Policies
 
How often will you pay your employees? Go up to the Payroll heading in the upper left and click on Pay Schedules. Click Create and open the drop-down list next to Pay Period to select the frequency desired. Then enter the date for the first payroll you’ll run in QuickBooks Online and the end date for the period that it covers. Click the box below if you want this to be the default setting for all employees. Then click OK to return to the previous page.
Open the Vacation and Sick Leave Policies window. If you don’t yet have accrual rules for these paid days off, let us help you here. It’s complicated. When you’re done, click the back arrow to return to the Pay Policies window and select Deductions/Contributions. Are you offering benefits like health insurance? You’ll need to have your paperwork and information handy before you start completing this section.

 

 

Before you can pay employees, you’ll need to have entered information about the benefits you offer so you can withhold dollars for them.
Click the plus sign (+) in front of Add a New Deduction/Contribution and complete the fields here, then click OK. You’ll assign these deductions to employees on their individual records in QuickBooks Online. If there are any Employee Garnishments needed (like child support), click the down arrow next to Add Garnishment for and select the worker from the list. You’ll provide details for these in the window that opens. This information was most likely provided to you by the agency requesting it. When you’re done, click OK.
Taxes and More
 
If you’re new to payroll and have never dealt with payroll taxes before, you’re going to need our help getting this complicated element set up correctly. Even if you have, we’d recommend that you let us work with you. QuickBooks Online does a good job of providing guidance here, but failure to submit payroll taxes (or pay them incorrectly) can lead to penalties and fines – or worse.
There are other setup tasks you’ll need to complete, like:
  • Connecting your payroll bank account to QuickBooks Online.
  • Creating employee records.
  • Setting payroll production preferences.
Setup is by far the most challenging part of processing payroll in QuickBooks Online. Once that’s done, you’ll just be entering hours and making modifications. Please do connect with us if you’re planning to take this on, and we’ll make sure you get a good start.

Customize QuickBooks Online Using Settings

 Customize QuickBooks Online Using Settings

You can start using QuickBooks Online the first time you sign in. However, your tasks will be easier and faster, if you customize it for your company.

 
QuickBooks Online was designed to be used by a variety of business types; that’s one reason why it’s such a popular small business accounting website. It was built to be versatile. That is, whether you sell hard drives or you service HVAC systems, you can customize it to “fit’ your company.
 
This is why your first order of business when you start using QuickBooks Online should be to click on the small gear icon in the upper right corner. The window that opens displays links to all of the site’s options – a collection of choices that’s called “Preferences” in desktop QuickBooks.

When you click on the small gear icon in the upper right corner of QuickBooks Online, this window containing the site’s many options will open.

 
Global Settings
 
The first screen you should visit is Account and Settings. This page is divided into five sections, accessible by clicking on one of the tabs below:
 
Company -Your company’s name and contact information appears here, as well as identifying details like the tax form you file, as well as your industry.
 
Sales -You can do a lot of customizing here that will affect your company’s selling activities. For example, you can specify preferred invoice terms and delivery method, and indicate whether to turn on features like:
  • Shipping
  • Custom fields and transaction numbers
  • Discounts
  • Quantity and price/rate
  • Inventory quantity on hand
You can also access the site’s tools for customizing the design and layout of your sales forms (invoices, receipts, etc.).
 
Expenses -You’ll toggle expense-related tools on and off here. You can choose to, for example, track expenses and items by customer and make them billable. Will you be using purchase orders? What will your default bill payment terms be?
 
Payments -Here, you’ll be able to set up a merchant account so you can accept credit cards and bank transfers from customers through QuickBooks Online. If you already have a merchant account, you can connect it here.
 
Advanced -There’s a good reason why this section is named “Advanced.” You may not be familiar with some of the concepts here, like “closing books” and specifying default accounts for items like Markup. We can go over these things with you and help you make decisions.
 
Other entries in this list are easier to complete, though you may still want some guidance. Will you support multiple currencies? Automatically apply credits and invoice unbilled activity? Make individually-tracked time activities billable to customers?
 
Other Preferences
 
There are many other areas in this window that you’ll want to explore before you start processing a lot of transactions in QuickBooks Online. If more than one person will have access to the site (we’ll assume you’re the Administrator), you must click on Manage Users. Here, you can set limits of what other employees can access. Click New on the screen that opens to launch this mini-interview, and follow its instructions:

 

You can restrict users to specific areas of QuickBooks Online.

Other preferences you should look at include:
  • Chart of Accountsonly to familiarize yourself with the accounts that make up the backbone of your accounting data. You’ll use these in transactions. Please do not make any changes here without talking to us.
  • All Lists – to see what’s available here, like Classes, Recurring Transactions, and Payment Methods.
  • Products and Services – to start building records for the items and services you sell. If you carry inventory and have never worked with a website that helps you manage it, please let us go over these concepts with you.
  • Budgeting – if you plan to create a budget. QuickBooks Online contains a tool that will accommodate this critical task.
  • Audit Log – if multiple people will be using QuickBooks Online. It tracks all activity by date and user.
QuickBooks Online is easy to use, but there’s a lot to learn upfront about customizing it to meet your company’s accounting needs. It’s natural to feel a bit overwhelmed at first. Let us help you get through those early days of use.  Connect with us, so we can walk you through the basics.

It’s the most wonderful time of the year (for taxes)!

While we are all thinking of presents and sugar plums (what are sugar plums anyway), it’s easy to forget about all those taxes, statements, and other fun mandatory filing requirements that come at the end of the year.

Here’s are just a few of the items for your “to do” list:

  1. Gather information for 1099’s – That means sending a form W-9 (here’s the link IRS form W-9) to all your vendors who perform services for you.  Common examples of these are landscapers, cleaning folks, graphic designers, accountant, lawyers, etc.  Any vendor that your pay $600 or more during the calendar year who is unincorporated gets a 1099.  They are due to the recipients by January 31st, so get that information now!  Having trouble sleeping?  Here’s a link to the IRS Instructions for Form 1099.
  2. Check all your employee information for accuracy – W-2’s are due to employees by January 31st and 4th quarter payroll forms are due by January 15th.  You should make sure that you have up to date address information and information on benefits (if you are required to report them) so that this process will go smoothly.  Also, start gathering new withholding forms from employees and check to make sure that all the employee files are up to date (I-9’s completed, correct emergency contact information, etc.)
  3. Make estimated tax payments for the 4th quarter – Unless you are a non-profit, remember to make your 4th quarter estimated tax payment by January 15th.  In most cases, you must have paid in at least 90% of your total tax liability by this date in order to avoid underpayment penalties.

Non-profits have additional reporting requirements like sending out annual giving statements (officially called “gift acknowledgement”) so you might have to add this to your list if you run this type of organization.  Have questions about what is required for this?  Here’s another fun IRS publication for late night reading.

Quickbooks has many tools to help with these tasks and make your life a little easier.  If you need help, be sure to contact us or your accounting professional.  It’s better to ask us for help now so we can make sure you are on track to meet all your filing requirements and not incur penalties!

Apps, Apps, and more Apps – which ones are right for me??

As the universe of apps that integrate with QuickBooks Online seems to expand exponentially on a daily basis, how do you pick the right one?  I recently attended a session on this very topic at #QBConnect.  The presenter, Byron Patrick, did a great job of identifying the steps in this process:

  1.  Identify the reasons & goals
  2. Determine the must haves
  3. Identify the options
  4. Filter down the choices
  5. Do your research
  6. Make your selection

Download Byron’s presentation here: Taming the Wild West of Apps

Hello world! Welcome to the mind of a QB SuperGenius!

My passion is teaching people about how to best use their QuickBooks to solve problems and deliver information about the money side of the business so that they make good decisions and spend more time doing what they love! If you are successful, I am successful.

So I created this blog to keep you up to date on the changes constantly being made in the Intuit universe and what products and services are available to help you do your job better, faster, and cheaper. I want to help you stay out of trouble from an accounting and tax perspective. And I want to help you grow your business!

Let me know what issues you’d like to hear about. QuickBooks questions? Accounting questions? Pictures of my cats? This blog is for you so what would you like to know? P.S. I’m always happy to post pictures of my cats!