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Wednesday, May 26, 2010

Day 4: QuickBooks Setup

The next step will ask about sales tax. Now, depending on your state regulations, most service industries do not charge sales tax. This is unless you sale a tangible item such as a book, software or promotional items. Please check with your CPA to verify your state's tax laws.
Do you create estimates in QuickBooks? Many businesses do not need to create estimates. This feature, like all features in QuickBooks can be added later if you so choose.
Do you use statements in QuickBooks? Statements are a great tool to have in your financial system. They work directly with the invoice tool to allow you to keep track of receivables. The difference between invoices vs. statements:
1. Invoices are based on a per job basis. You do a single job, you create an invoice.
2. Statements allow you to group invoices together for a total sum. For example, you have a client that has three separate jobs (or invoices) during the month of July. Invoice #1 is for $200.00, Invoice #2 is for $595.00, Invoice #3 is for $75.00. The statement will show the invoice number, each individual amount and then a total sum due: $870.00.

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