QUICKBOOKS FOR MAC TUTORIAL PC
QUICKBOOKS FOR MAC TUTORIAL PROFESSIONAL

Small tools are typically Expenses and not COGS - unless a tool is bought for a particular job and will never be used again. So is the cost of shipping the product to the customer. If you pay a subcontractor for a particular job, his cost is a COGS. If you purchase a ream of paper for a print job for a customer, is it a COGS? Yes, if you consume the entire ream. To qualify for a COGS, the part or supply must be used up in the sale or service. What you paid for the part is classified as a COGS.Ĭosts that are directly related to a customer job should be posted to a COGS account, not an Expense account, so a business owner can determine Net Profit. If you purchase and resell parts, your profit is the difference between how much you paid for the parts and how much the part sold for. Costs of Goods Sold include the cost of material, labor, subcontractors, and shipping. Costs that are directly associated with the product are called Cost of Goods Sold (COGS). When you sell a product, you seldom make 100% profit. To use many function of QuickBooks, items are required anyway! Items for Cost of Goods Sold (COGS)Īnother popular use of items in QuickBooks is for Cost of Goods Sold (COGS). To track sales for product categories or even individual products, create items for each and track their performance in this manner. Create only as many income accounts as you need reported on the Profit and Loss Report. Most accountants recommend that small business owners keep the Chart of Accounts as lean as possible.

Separate revenue accounts could be created for each type of product or service, but that is inadvisable. When the invoice is paid, Accounts Receivable is credited and Cash (checking account) is debited. When the invoice is created, the revenue account to which the items are linked is credited and Accounts Receivable is debited (if using the Accrual accounting method). By default, items do not appear on the printed invoice. When the drop-down arrow in the column is clicked, the Item List displays, and an Item must be selected. Each invoice contains a column called Item, or Item Code, or Classification - depending on your version of QuickBooks. Items are required when creating an invoice in QuickBooks. As you can see in the 'New Item' window, you can create sub-items, and you can enter the price of an item. Then, for each Item, choose the account to which it will be linked. (Note: some versions of QuickBooks may be slightly different.) For products that you purchase, track as inventory, and resell, choose Inventory Part.įor purchased products not inventoried such as materials for a particular job or products that are shipped directly by the vendor, choose Non-inventory Part.

QUICKBOOKS FOR MAC TUTORIAL PROFESSIONAL

For consulting or professional services, choose Service. At the bottom, click Item and then click New.Ĭlick the drop-down arrow next to 'Type' and review the choices displayed. From the top menu line, click Lists | Item List. You don't want an excess of items, but you don't want to make continual changes because then your QuickBooks reports won't be very useful.

QUICKBOOKS FOR MAC TUTORIAL PC

Some companies will have items for both services and products, such as a PC repair service that also cells hardware, but many small businesses, such as consultants, may have one revenue account and only a few items.īefore creating items for your business, it is imperative that you sit down and document all of the current product and/or service categories that you would like to track. For instance, a hardware store could create items for product categories, such as plumbing, electrical, and housewares and then create sub-items to further break down the types of products sold in each category.Īn item can, if desired, be created for each individual product and the product's price can be specified. How Many Items Do I Need?Ī business selling a large amount of products may wish to create an Item for each product type and sub-items to further break down the product type if need be. And sales per item and sub-item can easily be tracked by built-in QuickBooks reports. If a business collects sales tax, separate items must be created for each city and state in which the company sells products. In fact, some businesses may have hundreds of items per each income account. Multiple items may be associated with the same account. Sub-items may also be created.Įach item is linked to an account - usually a revenue (income) account. Items are required in QuickBooks because they are used when creating invoices, sales receipts, refunds, and credit memos. For most users, QuickBooks 'Items' can be defined as 'categories' or 'types' of products and/or services that a company sells.

Quickbooks for mac tutorial