Quickbook’s hack: Inputing Sales

First and foremost, before I even share this information, you should know I am in no means a Quickbooks expert or an accounting guru. I am a small business owner who had zzzzero experience with accounting/Quickbooks, who wanted to use the power of Quickbooks for book-keeping purposes. This hack is a means of inputing sales into Quickbooks when your POS doesn’t do it for you.

I chose to use a POS–point of sale– system other than the one offered by Quickbooks due to reviews I read stating that if you didn’t have an accounting background that the system was more difficult to understand. While the benefit of using the Quickbooks POS is that it simultaneously integrates with your book-keeping, I found that the detailed sales information given by my software was worth it (or at least that is what I tell myself.) Any who, I had to figure out a way to input the information from my POS’s reports into my Quickbooks for accounting purposes. When scouring the internet for advice, I came up short. I attended a SBA Quickbooks class, which I highly recommend you do as it was very very helpful and it was FREE!!! However when working with the instructor of the class on how to input my info, she was somewhat perturbed that I chose not to use the Quickbooks POS and didn’t have much to offer when offering a solution to my problem of integrating my POS sales info into the QB model. So after gaining the understanding of debiting & crediting, the type of accounts and balancing my P&L, I came up with a solution that worked for me. My hope is that you’ll be able to use this hack in a way that works for you:

Okay so first thing is first; setting up your accounts.

Quickbooks is nice enough to suggest accounts for you per types of businesses. This is nice however I am somewhat anal retentive and like to have more control than that. I selected other for my industry so that it wouldn’t input accounts for me. I found it extremely useful to organize my accounts per my tax forms to make things easier on my accountant (cutting my accounting bill significantly.) I am a single member LLC so I file a Schedule C (Form 1040) Below is how I organized my accounts:

Quickbook Accounts

Quickbook Accounts

 

Like I said, anal retentive. I use sub-accounts so I can see exactly where my money is going when viewing my P&L. How you choose to organize your accounts is your prerogative, however the accounts you must have for this “hack” are:

  • NAME                                      :    TYPE
  • Cash Undeposited                   : Other Current Asset
  • Undeposited Merch Services   : Other Current Asset
  • Inventory Asset                        : Other Current Asset
  • E-Commerce Undeposited      : Other Current Asset
  • Cash Register                          : Other Current Asset
  • Sold Goods                             : Income
  • E-Commerce Sale                   : Income
  • “Your Bank Name”                   : Bank

–If you do not have an E-commerce platform than just ignore those accounts.

When creating these accounts, in the tax drop down select <not tax related>

Okay so what does this mean? To account for deposits into your account you have to denote where they came from. Revolutionary right? Well to someone who had no experience with accounting it was somewhat confusing. So now that we’ve got the accounts lets make some $$$ and I’ll explain the rest as we go along.

***I’d like to reiterate that I am not a Quickbooks expert and I only use a tenth of QB’s potential, this is just how I found to make the software work with my needs.***

Creating a sale is relatively easy… I accept 2 forms of payment; cash & cc, (I’ve taken checks before but I just add them in with the cash) So if you take other forms like paypal or apple pay, you’d need me make another “Other Current Asset” account. In your POS (or if you just old school it) You need to know at the end of each day how much cash/cc will be deposited, separately. Most merchant services deposit funds the next day so when inputting your end of day sales you deposit the funds into your Undeposited Merch Service account to double-check that the right amount will be deposited/ you have entered the right amount that day… BALANCED   Same goes for your cash, deposits will go into Cash Undeposits because I am certain that you are not depositing your cash into your bank account every night. This will allow you to check and double-check the information being entering is accurate and that the deposits are correct. Here are some visuals:

Screen Shot 2015-01-08 at 9.23.24 AMOn the home screen click on  Create Sales Receipts

Another window will pop up.

So for your first time you will have to make your customer & items and after you input it the first time, it will be saved into the system. When adding a customer just start typing the customer name and click “Quick Save”. When adding an item, start typing item and then a prompt will pop up, click “Set Up”.  In “Type” drop down, select Service. In “Account” drop down, select Sold Goods (for Cash & CC items) and E-Commerce Sale (for E-Commerce Items)

You’ll have 3 sales each day (less or more depending on how many types of payment you take) I like to keep things consistent and always have them in the same Sales No. order: Cash-1; CC-2; E-commerce-3. This helps because when I am inputting my sales, sometimes I forget to change where the money is being deposited to and if kept in the same order you’ll realize that it wasn’t changed for the prior sale. Make sure to be depositing to the right account

Sales Rece

I do not denote tax when doing this. The money that will be deposited in your account will include your sales tax money so if you try and take it out prior, it will get all messed up. My POS tells me how much in sales tax I owe each qt so when the time comes to pay up to the state, I just write a check in that amount and then expense the item in my books.

Okay so you’ve created your sales for each day. If you look at your chart of accounts on your homepage you’ll see that you have money that is owed to you that has not been input into your account yet. If you have done everything correctly it should look something like this:

Quickbook Accounts

Quickbooks Record Deposits

So now you went to the bank and deposited your money and your merchant services deposited the money into your account. Next, you check your bank statement and start inputting all your deposits and withdraws. In your QB homepage click on Record Deposits.

 

Deposit them in order according to your statement but theses are how the should be deposited when the time comes:

Quickbooks DepositsAfter the money is deposited into your account, it will no longer be held in your undeposited accounts:

Quickbooks Chart of Accounts

You should tailor this concept to fit your needs but I hope that it will help you backdoor the quickbooks need for their POS.  Again, this is not the intended way to use Quickbooks but as a small business owner without an accounting background, I found this to work with my needs. If you have any questions or if I did not explain something well enough, reach out! I can also send you the Quickbooks template for starting an account 🙂 Hope you found this helpful!