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How Do You Do Your Accounting?

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  • How Do You Do Your Accounting?


    I need to start keeping better books. I would like to use Quick Books, but I have a lot of basic questions. I would welcome some input.

    Do you enter every transaction or just a daily total? How do you handle shipping? I have free shipping on orders over $100, so sometimes I pay the shipping and sometimes the customer pays the shipping. From my point of view, this seems like an accounting nightmare. Also, my merchant account deposits the entire amount and then takes out the fees. PayPal takes out the fees and then deposits what's left. This make for complicated book keeping for me any way. I would like to see how others are handling these types of issues.


  • #2
    The question to start with is what are you going to use the accounting for? How much detail do you need?

    It's one objective to use it for end of the year taxes, its another to use it for managing your operation. Also, consider how much time will it take to enter the information, and who is going to enter it. Or do you need some type of automatic solution?


    • #3

      You need to speak to a local accountant that uses QuickBooks to get you set up correctly based on YOUR circumstances and your state laws. Yes, you need to account for EACH sale.


      • #4
        I use ECC as an order management software and Quickbooks. It could save you a lot of time, after you learn how to use it effectively.


        • #5
          Quickbooks will let you do it. You just have to set it up correctly.
          Free shipping is an expense.
          Paid shipping is an expense if you don't charge as much for shipping as it really costs.
          Every item you sell has to be accounted for so you can see incoming and outgoing expenses.
          Fees paid to your merchant provider and PayPal are expenses.

          Get the idea?
          David's Gifts and Things

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          The more you buy the more you save!


          • #6
            Thanks for all of the replies. I will check out ECC.


            • #7
              Undepostited Funds

              When entering Sales, I post gross sales revenue, gross shipping revenue and gross tax revenue to the "Undeposited" asset account. When our Merchant Services or Paypal performs the transfer of money into the actual checking account, I then enter a "Money Transfer" from Undeposited to Checking to match the actual Transfer amount posted in our Checking Account for that particular Transfer. This way the Checking Account Register in Quickbooks is 100% acurate compared to the actual Checking Account. If fee's are taken out prior to the Transfer like Amex or Paypal, then we expense it against the "Undeposited" asset account. I typlically do this at the end of the month as a Monthly Summary Total for each Merchant Bank. I'll create a single Journal Entry in this case. This way I don't waist time worrying about fees on a daily basis. If it's our VS/MC/DS transfers, I expense it against the Checking Account since those come out Monthly directly from our Checking Account anyway.

              By keeping everything within an "Undeposited" asset register untill the Merchant Services does a transfer, you'll also be able to use this to keep your Merchant Services Vender in check and honest. I had a Merchant Services vendor have some technical issues a while back and if I didn't catch it, we could have lost a few days of transactions.

              Hope this helps.
              PerfumeMart.Com, Inc. - Authentic Name Brand Fragrances at Discount Prices
              Dan Goldman


              • #8
                Hi Dan,

                Thanks for the reply.

                Do you enter the gross sales daily? Do you see any disadvantage of not entering individual transactions?



                • #9
                  Since all the transactions are stored within 3dcart, I don't waist my time. I only enter the totals since thats all I care about.

                  Unfortuantely the reports provided by 3dcart are based on ORDER date, not actual SHIPPING date, so I create only ONE monthly journal entry for the sales but I do update it daily so I can have an uptodate P&L. WARNING: If I ship an order in Dec which was placed in November, you have to remember to run the NOVEMBER 3dcart sales report and update your November sales journal entry accordingly.

                  I run my books as ACRUAL basis, not COST basis, so realistacly I need the reports based on SHIP DATE not SALE DATE. O Well, I do my best with what I have to work with.


                  PS: We use QB Online, so we are not able to use the QB Plugin as it's not compatable. If it was, we would manage the books differently. The above you can say is a "Workaround" based on the limitations of 3dcart and QB Online.
                  Last edited by perfumemart; 12-16-2011, 12:16 AM.
                  Dan Goldman