April
10
2012
This is a challenging topic for QuickBooks, but try the following suggestions:
If you are accepting goods for consignment in many cases you are actually creating a liability on your part. You have someone else’s goods in your control and you own them if your place should burn down or get broken into and the goods stolen This needs to be addressed in your Agreement with the Consignor.
- IF you are responsible for the goods in case of fire, theft, etc. then you have a “contingent liability” the minute the goods hit the door.
- For your own benefit, make clear who has responsibility for goods that are lost to fire, etc. This could also have an impact on your business insurance, so you need to clarify your position with them. Saying you have “no inventory” may not be correct if the place burns down. Your consignors are not going to accept “The place was broken into” when you have neither their goods nor their money.
That being said, here is the process for QuickBooks:
- Set up the Consignor as a Vendor
- Create Purchase Order for what they want to sell, it may be one item or several.
- Create an Non-Inventory “Item” for every item they are consigning, point to account “Cost of Goods Sold”.
- Suggest creating “Item” for Last Name of Consignor, and then “Sub-Items” for each item they are selling
- If you do not have an agreed sell price leave blank.
- When an item sells, create a Bill for that Vendor, selecting the appropriate Purchase Order.
- Select the item(s) that sold and enter the sales price. Enter Zero “0″ in quantity field for items not sold so that the Purchase Order remains open if multiple items.
- Create “Items” for any Consignor Agreement costs such as Storage Fees, Sales Tax Liability, Commission, and enter into Bill.
- Deduct these items as agreed upon from your Bill.
- The balance is what you owe the Consignor.
Contact us with any bookkeeping questions, we will find you a solution.
MJB’s Bookkeeping Solutions 805-433-3577
@MJBSolutions - https://www.facebook.com/MJBsBookkeeping
March
4
2012
Yes, office supplies come with owning a business. Here are some ways to help minimize costs:
1. Sign up for rewards programs at Staples, Office Depot, Office Max.
2. Shop at warehouses like Costco.
3. Compare prices on the Web…like http://www.discountofficeitems.com
4. Recycle your printed papers by printing on opposite side, and look for re-manufactured ink/toner cartridges, if price is more an issue than quality. No link here as this is a choice you need to make = ).
October
20
2011
Protect your Identity and personal information on the new Smart Phones by limiting what you save and link to, lock when not in use, and purchase the phone recovery/replacement plan.
October
19
2011
Customize Chart of Income and Expenses, personal property, mortgage and interest. Manage multiple income streams and or rental property using “Classes”. Set your categories to match those on your 1040 or Schedule C. Be creative! Blog back or email me if you need help.
October
18
2011
The Cash method is like a checkbook. You record the income when you receive it, and record the expense when you write the check. It is easy to maintain, and good way to start for new businesses figuring out where they are going. It does not include the Accounts Receivable or Accounts Payable so may misrepresent your true income and expenses. As your business becomes more complex, you may decide you need the detail of Accrual accounting.
The Accrual method records the income when the sale is made, whether you have been paid or not, and records the expense when incurred, even though it has not been paid. It is a more intricate system to learn, however, more accurately tracks your finances. Preferred by Accountants and CPA’s for management purposes.
Which is best for your Business?
October
17
2011
Monday Memo: Track your business drivers: Leads, Bookings, Conversion Rates, Revenue per Day, Unit Sales, Gross Margin. Talk to Customers about needs and wants. See attached link for Excel Templates from SCORE.org http://ow.ly/70prB
September
8
2011
- Review Balance Sheet and Income Statements (P &) at least quarterly if not more.
- Reconcile Bank accounts monthly.
- Bank at more than one financial institution to develop a relationship that may help you when you need a loan.
- Hire a Bookkeeper to help you part time so you can focus on growing your business.
MJB’s Bookkeeping Solutions assists businesses and individuals with their bookkeeping and budgeting needs. Services include but are not limited to installation, setting up chart of accounts, training, and troubleshooting problems. We understand the challenges of owning a business, and are ready to connect you to the answer for all your business questions.
Call us at (805) 433-3577, follow us on Twitter @MJBSolutions and Like Us on Facebook !
July
29
2011
Every Business is unique, so wouldn’t you want to have a bookkeeping system customized especially for your business operation? MJB’s Bookkeeping and Office Solutions will show you how.
Two Considerations for creating your bookkeeping system:
- Types of transactions the business enters into and how information about those transactions can be captured
- Type of financial information the business needs to efficiently manage its operations
The Chart of Accounts (COA), is the heart of every Company file. The COA should include:
Accounts to capture Income, Assets, Expenses, Liabilities, and Equity specific to your business, and be flexible enough to allow for future growth. Every transaction you enter is allocated to the appropriate COA account.
On a regular basis, you, your Bookkeeper, or Accounting Professional should run (3) financial reports to make sure your Company is healthy and on track:
- **Profit and Loss or Income Statement- Summarizes your income and expenses for a period of time, so you can tell whether you’re operating at a profit or a loss, and where you might trim spending
- Balance Sheet – Summarizes the financial position of a business as of a specific date – a “Snapshot” of your company. The value of the assets is always exactly equal to the combined value of the liabilities and equity.
- Statement of Cash Flow – This report shows how your cash position changed over a period of time. Shows cash earned from profit; Where you received additional cash; Where your cash was spent; How cash was provided or used in terms of Operating, Investing, and Financing Activities.
Seeking Funds for your Business? These are THE reports that Lenders want to see.
July
13
2011
10 months later from a similar original post, times are still challenging and definitely an education experience for business and individuals. Logic indicates that we should always have a grip on our finances, even more so during times we have less of them.
Are you paying more for office assistance than you need to in belt tightening times? Why pay three entities when you may need just one? MJB’s Office Solutions will not only keep your books, we will also assist with back office administrative and low cost marketing projects.
September
6
2010
Small Business Owners like you and me need to be smart about expenses. Hope you will check out these links for education.
http://content.kiplinger.com/features/archives/10-expenses-you-dont-need.html
http://www.tax.gov/virtualworkshop/
http://score.org
WHY Pay when there are FREE resources. USE that search engine!
Sincerely,
Marla @ MJB’s Office Solutions
