Creating Product and Service Records in QuickBooks Online

Creating Product and Service Records in QuickBooks Online

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.

Looking for a QuickBooks Expert?

Working with a QuickBooks ProAdvisor is the best way to learn how to use QuickBooks to help your business grow and flourish. You won’t find a better way to get the support you need anywhere else.

As a small business owner, we realize that you may not have the budget to hire a QuickBooks expert. If you’re looking for a more economical way to get set up on QuickBooks, we provide cloud bookkeeping programs to match any business requirement. Here are our Quickbooks ServicesQuickBooks SetupQuickBooks Training, and QuickTune-up.

You can feel confident in knowing that our STAC Bizness Solutions team are Certified QuickBooks ProAdvisors. Meet Our Team.

If you would like to learn about all the benefits that STAC offers, just give us a call and we’ll provide you all the details. Call us at (844) 424-9637.

Getting Ready for Payroll in QuickBooks Online

Getting Ready for Payroll in QuickBooks Online

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.

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Tools for Strategic Planning

Tools for Strategic Planning

Tools for Strategic Planning

If a company is operating without any strategic planning, then an imminent loss or slow progress can be anticipated. Strategic planning plays a pivotal role in the success of any business. It cannot be overlooked, neglected or considered less important at any cost – it is what defines the goal of a business.

Why is Strategic Planning so important?

You cannot go anywhere without knowing where exactly you want to go, right? In simple words, strategic planning defines “where” your business wants to go and what goals it has to accomplish. It does not necessarily mean that it will tell you the progress of a company. In other words, strategic planning is a roadmap for your company.

Fundamental Elements of Strategic Planning

When it comes to strategic planning, there is need of special emphasis on three critical elements: Values, Vision Statements, and Mission. These three are the fundamental elements of any strategic planning process.

Values: A culture of any organization is defined by the set of beliefs that are shared by everyone in an organization.
Vision Statement: The ideal or desired state of any organization is defined by a future-oriented vision statement.
Mission: It defines the true purpose of an organization/company, explains why it exists and what it aims to accomplish.

Tools for Strategic Planning

An assessment of external and internal factors is completed with the help of some major tools. These tools assist in formulating a result-oriented strategic planning. Here are some of the most common tools that are deployed by companies in the process of doing strategic planning:

SWOT ANALYSIS

An analysis method called SWOT (Strengths, Weaknesses, Opportunities, and Threats) is used to determine the internal weaknesses and strengths along with external openings and threats that are faced by an enterprise.

  • Strengths: These are the resources and capabilities of any company that enables it to gain a competitive edge and in generating
  • Weaknesses: These are the shortcomings that limit the progress of any company and its ability to fully utilize its resources and capabilities.
  • Opportunities: These are the openings that can be utilized by an organization to gain an edge over its competitors.
  • Threats: These can come from any direction, e., organizations, competitors, individuals, regulatory bodies, etc.

The SWOT analysis can be used to set goals, objectives, priorities, action plans, and measuring performances.

PEST or PESTEL ANALYSIS

An analysis method called PEST (political, economic, social, technology) is a micro framework that is deployed for the purpose of expanding the SWOT analysis of a company. PEST comprises of regulatory and political issues, social norms and behaviors, economic factors, technological developments, and demographics.

With PEST analysis, a company can assess its progress, weaknesses, plus points, and take advantage of its resources. When everything is fully sorted out, the process of strategic planning becomes simpler.

All in all, it is fair to say that strategic planning is crucial for any company. One cannot deny the importance of financial strategy as well.  A financial strategy is developed after a comprehensive strategic planning is complete. Just ensure that you describe the vision, fundamental values, and mission of your company and plan for future contingencies. By evaluating your weakness, strengths, opportunities, and threats, you can develop an impeccable result-oriented strategic plan for your business.

Looking for a QuickBooks Expert?

Working with a QuickBooks ProAdvisor is the best way to learn how to use QuickBooks to help your business grow and flourish. You won’t find a better way to get the support you need anywhere else.

As a small business owner, we realize that you may not have the budget to hire a QuickBooks expert. If you’re looking for a more economical way to get set up on QuickBooks, we provide cloud bookkeeping programs to match any business requirement. Here are our Quickbooks ServicesQuickBooks SetupQuickBooks Training, and QuickTune-up.

You can feel confident in knowing that our STAC Bizness Solutions team are Certified QuickBooks ProAdvisors. Meet Our Team.

If you would like to learn about all the benefits that STAC offers, just give us a call and we’ll provide you all the details. Call us at (844) 424-9637.

Hire a QuickBooks ProAdvisor

To schedule an initial consultation with us, please click the button below.

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Exempt vs. Non-Exempt Employee Classification

Exempt vs. Non-Exempt Employee Classification

Exempt vs. Non-Exempt Employee Classification

Most business owners find it difficult to distinguish between the exempt and non-exempt employees, and it also causes a great deal of confusion between employers and employees. Whether you are entitled to the overtime payment or not (usually means the extra time you work after the standard 40 hours for every week), depending on your exemption position according to the FLSA (Fair Labor Standards Act), remains the primary ambiguity in this regard. However, various other jobs don’t fall under these standards, like agricultural jobs, truck driving, and others, which are usually governed by other law organizations.

Majority of citizens in U.S come under the FLSA and you can either classify them as exempt or non-exempt, depending on the overtime pay regulations. As an amateur, you may not have a clear idea of what category of workers these are, but don’t ponder over it because that’s what we are here for today! We’ll give you a quick breakdown of what rules apply to which workers. So let’s dive right in.

Non-Exempt Employees

If you work as a non-exempt employee for more than the standard time per week, that’s 40 hours, then according to the FLSA policies, you are entitled to extra pay for the time and one-half of the standard hours of overtime work you spend. Concisely, if you are working on the hourly basis and get paid for the hours you work, apart from the standard hourly paid rate, then you are classified as a non-exempt employee. If you are a non-exempt employee, then you will not qualify for the numerous white collar job exemptions. Such employees usually include maintenance, technicians, construction, semi-skilled, blue collar, laborers, and clericals.

Exempt Employees

Such employees don’t get any protection and cover from the FLSA, and this means that they are not entitled to any overtime payments. According to the FLSA, airline and sales employees are exempt, and if you meet with three points, then you are in this category. These are the rules that apply:

  • If you are getting a payment of $23,600 for the year
  • If you get paid on the wage basis (doesn’t apply to people who work on “hourly basis,” like school teachers, and physicians)
  • If you perform duties on the job that are classified as exempt

To qualify for the exempt status, the nature of your job is also taken into account. Typically, the duties of exempt employees are high, and the FLSA splits them into three further categories:

Executive

Employees are exempt from the FLSA policies and rules if they perform duties such as:

  • Supervise more than one employee
  • Work as a manager
  • Having the power to hire, assign tasks, fire and so on.

In most cases, such people are usually considered in charge or the boss of the business or company.

Administrator

For people who have duties that support the business, like public relations, accounting, human resources and payroll staffs, then they fall under this category. Duties must also include:

  • Office work
  • Tasks related to the management or customers of the business
  • Independent discretion and judgment of significant business matters

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Government Policies

Government Policies

Most small business owners are well informed about what government policies apply to them, specifically what FLSA (Fair Labor Standards Act) policies they need to be in accordance with according to their business. However, an increasing number of small businesses have been cited for policy violations. It makes one wonder if small businesses are as informed as they think they are about some of the more common FLSA policies. Below is a list of some of the more egregious violations.

Unpaid Compensable Time

A good example is unpaid compensated time; this is when an employee works through lunch but is not paid for that time. That is if the lunch is unpaid, but the employee engages in work that benefits the company they can be entitled to appropriate compensation. Granted, there is some gray area to this policy, but it is one that is in need of handling through communication with the employee and the proper authorities instead of hoping that no one notices.

Unpaid Vacation Time

Unpaid vacation time occurs in mainly one instance: when an employee leaves (whether through being fired or quitting) they are entitled to their paid vacation time. Though the FLSA does not require paid vacation, if the company offers it then it is considered part of the employee’s compensation for their work, just like their wage or salary. If the employee is no longer working for the company, they are entitled to these earnings.

Overtime Status

The FLSA guarantees overtime pay to non-exempt employees. Conversely, they do not guarantee it to exempt employees. The rub is the classification. Now, there are numerous criteria to determine which classification an employee falls into, but it is up to the small business owner to make sure that they are correctly designating the people that work for their company. This can be a major violation if the government finds the owned to be non-compliant.

Overtime Pay

Likewise, if the calculation of overtime pay is determined to be faulty, it can be a major FLSA violation. The FLSA states that any non-exempt employee working over 40 hours in a workweek is to be paid one and half times their wage. Of course, there can be a miscalculation as to when exactly an individuals work week begins or ends, which is to say that if a small business has non-exempt employees, it needs to double check that it is paying the overtime as per FLSA regulations.

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Taking Your Company Paperless

Going paperless has been the way of the future in business over the past decade. People might have scoffed at the idea a few generations ago, but millennials and those who conduct business with them demand innovative solutions not only for the environment but also to cut down on the mundane drudgery of work place repetition.

And with the way things have been moving, people no longer feel like cogs in a wheel but rather integral team players with technological know how. So if your business has not moved completely digital yet, the following are just a few of the many reasons why you should be going paperless.

Boost in Efficiency

People don’t want to be doing the same task at work all day. With paper processes, the middle man is always the employee, who faithfully sits by the phone filling out papers for a client. Or the employee is busy digging in the company store room for files.

Logging onto the computer, whether for cloud accounting or client information, is leaps and bounds easier than putting people on hold or telling them that you will phone them back. You can be on the same page as the client in minutes rather than days by having their digital information at one’s fingertips on CRM. The same goes for talking between departments. It is much more efficient to send emails back and forth delineating the various degrees of urgency than to try to play telephone tag with employees in varied departments. Time is at a premium, so when a person can log on or fire off an email, time is saved from chasing down files and individuals that may not be easy to find.

Disaster Recovery

There’s no telling when a disaster might strike; maybe a flood, theft or a fire breakout could easily cripple your company. What will happen to the documents that are paper-based? Most probably, you will lose them because you don’t have a backup, or if you do have copies, wouldn’t they be likely stored in the same premises too? Going paperless can help avoid this problem. Once you store everything on the cloud, you will not have to worry about the data that you lost in the paper forms because they will all be available on the cloud and you can access them at any time.

Creative Solutions

Digital apps and programs like QuickBooks are often designed to integrate together. This is a virtual dream, literally, when it comes to helping the departments to coordinate. Without such products, people are stuck doing the same processes with paper over and over. The rewriting and photocopying of such pages can really only go so far.

To go digital, one needs to be savvy with employing people in the know-how. These teams can help to train others on processes as well as put them in place. But once paperless systems have been implemented, very few employers will regret the transition. It shows up on the bottom line quite apparently over the years as well.

Need help getting your company to paperless?  Contact STAC Bizness because we can help with establishing your company’s accounting, payroll, and human resource operations in a paperless world.  Join our newsletter for more free tips for running your business.

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