We are using quickbooks to save costs on accounting and payroll right now. I have a question about how to enter sales. Should i be entering cash sales and credit card sales separately? Right now we are entering the total sales but then when the cc’s hit the bank it is putting into an other income account. Not sure the best way to do this. Please help!
Although there is no right or wrong way…I use a general journal entry, from my POS report, breaking down my category sales, cash deposited, credit card(s) and over/shorts…pretty “old skool” approach
The account is tied to our bank account so it automatically enters the cc’s when they hit the bank. Is there an account these can be changed to that doesnt hit the income account?
I’m a Peachtree guy myself, but it sounds like that account is set up as type “income” in the software when type “cash” (maybe it’s “unreconciled funds” in Quickbooks) would be a more accurate description of its use.
I just started in the pizza business but my other business is as a QuickBooks Consultant. The best approach is to use a sales receipt. You would want to set up non-inventory items for the categories that appear on your Z out report. You would enter a sales receipt for each day of sales based on the Z out. The goal of the exercise is to record all of the income and then to record how the income was received i.e. cash, credit etc. Once you have the income items setup you will also need to set up payment type items. You will want to pick the appropriate payment method for each payment type item. Your cash item should be deposited to a Cash in Drawer account (bank account type). Credit cards and checks if you take them should be deposited to Undeposited Funds. You will then need to go to the Make Deposits window and deposit those items into batches the way they were deposited into your bank account.
Once you have setup all of your non-inventory items for your categories and your payment items, you will want to build a sales receipt that you will memorize. That way you only have to do this exercise one time and from then on you go to the memorized transaction and just change the numbers. The setup should be all of the non-inventory income will be the first lines of the sales receipt, then you will list the payment items and put amounts in them that are negative. The goal of the whole exercise is to have a sales receipt that shows zero at the bottom. The other thing you will have to watch for in the setup is which items are taxable vs non-taxable since QuickBooks will calculate the tax for you. Hope that helps.
Great answer weds2800. The only thing I would add is that I do not have a “zero” sales receipt. I first record my income as Net Sales on line 1 and then record my payment items (cc, gift cert, online pmts etc.) on the following lines which results in a sales receipt that now has a balance of cash to be deposited which goes to undeposited funds. I then go to make deposits and deposit the cash into my bank account minus any cash paid outs for the day ( purchases, drivers mileage etc.)
Hope this all make sense and helps.
Sales should be recorded as per the total transactions. Whether it is cash, credit or otherwise doesn’t matter, a sale is a sale. The finacial amount is a banking factor.
We use MYOB (Mind Your Own Business) and Australian developed system that is similar to Quickbooks. We account for the transaction sales totals under monies recieved in Cash Drawer and that goes in the Monies Recieved journal Undeposited funds). When we bank Cash / Cheques the amount is then entered in the Accounts / Transfer Money section where the bank deposit is transferred from Cash Drawer (undeposited funds) to the relevant banking account. At the end of the month the total CC transactions are then done collated from the CC statement and transferred as well. When you do your monthly reconcilliation of the accounts you check the entries off and they should balance to the sales transactions initially entered.
I am fairly certain Quickbooks operate similar as my siter in law moved from MYOB to QB and says it is very much the same.
Much the sames as “Weeds” outlined.