• QuickBooks Tip: Receiving Customer Payments

    5 May 2017
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    We’ve put together step-by-step instructions of how to receive payments from a customer using your QuickBooks account:

    QuickBooks was designed to make your daily accounting tasks easier, faster, and more accurate. If you’ve been using the software for a while, you’ve probably found that to be true. Some chores, of course, aren’t so enjoyable. Like paying bills. Reconciling your bank account. Or anything else that has the potential to reduce the balance in your checking accounts.

    The process of receiving customer payments is one of your more enjoyable responsibilities. You supplied a product or service that someone liked and purchased, and you’re getting the money due you.

    Depending on the situation, you’ll use one of multiple methods to record customer payments. Here’s a look at some of your options.

    A Familiar Screen

    If you’re like many businesses, you send invoices to customers to let them know what they owe and when their payment is due. So one of the most commonly used ways to record payments is by using the Receive Payments window. To open it, click the Receive Payments icon on the home page or click Customers | Receive Payments.

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    You’ll use QuickBooks’ Receive Payments screen when you record a payment made in response to an invoice.

    The first thing you’ll do, of course, is choose the correct customer by clicking the down arrow in the field to the right of RECEIVED FROM. The outstanding balance from that customer will appear in the upper right corner, and invoice information will be displayed in the table below. Enter the PAYMENT AMOUNT and make sure the DATE is correct. (The next field, REFERENCE #, changes to CHECK # only if the CHECK option is selected.)

    Next, you’ll need to ensure that the payment is applied to the right invoices. If it covers the whole amount due, there will be a checkmark in every row in the first column of the table. If not, QuickBooks will use the money received to pay off the oldest invoices first. To change this, click Un-Apply Payment in the icon bar and click in front of the correct rows to create checkmarks.

    Several Options

    You’ll then want to tell QuickBooks what payment method the customer is using. Four options are displayed. The possibilities that are visible here are:

    • CASH
    • CHECK
    • CREDIT DEBIT (A specific card type may be shown here if you’ve indicated the customer’s preferred payment method in his or her record.)
    • e-CHECK

    If the desired payment method isn’t included in those four, click the down arrow under MORE. If it’s still not there, click Add New Payment Method. This window will open:

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    The New Payment Method window

    Click OK. When you choose your new payment method from the list, a window opens containing fields for the card number and expiration date. Click Done after you’ve entered it, and you’ll be returned to the Receive Payments screen. If you’re satisfied with your work there, click Save & Close or Save & New.

    Haven’t gotten set up to accept credit and debit cards yet? We can get you going with a merchant account to make this possible. You’re likely to find that some customers pay faster with this option. Your customers will be able to click a link in an emailed invoice and make their payments.

    Instant Sales

    Depending on the type of business you have and its physical location, there may be times when customers will come in and buy something on the spot. You’ll need to give them a Sales Receipt. Click Create Sales Receipts on the home page or open the Customers menu and select Enter Sales Receipts to open this window:

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    The Enter Sales Receipts window

    You’ll complete this form much like you entered data in the fields of the Receive Payments window. As you can see, you can print the mail for the customer and/or email it.

    After all the hard work you’ve done to make your sales, the last thing you want to do is record a payment incorrectly so it isn’t processed and you don’t get paid. Though QuickBooks makes the mechanics of receiving payments simple enough, you still should understand the entire process involved in getting income into the correct accounts. Dagley & Co. is available to help with this and any other areas of QuickBooks.

     

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  • Ringing Out 2016 in QuickBooks

    29 November 2016
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    It’s that time again! One year is coming to an end, and a new year is quickly approaching. At Dagley & Co., we urge you to start your end-of-year QuickBook tasks now, before time runs out. We have 4 things we suggest you fit into your busy schedule sometime this month:

    1) Create and send year-end statements.

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    As your customers wrap up 2016, too, it’s good to send statements to past-due accounts.
    In an ideal world, all of the invoices that are currently due would be paid off by the end of the year. We all know that that’s not usually the reality. Two reports can help you here: the A/R Aging Summary and Open Invoices.

    Give everyone a chance to clear their accounts before December 31 by sending statements. Click Statements on the Home page (or Customers | Create Statements) to open the window pictured above.

    You have multiple options here that are fairly self-explanatory. The screen above is set up to create statements for all customers who have an open balance as of the date you select, but not for inactive customers or those with a zero balance or no account activity. That way, no one who’s paid in full to date will receive a statement. Of course, if you didn’t want statements created for anyone who’s less than 30 days past due, you’d click in the box in front of Include only transactions over and enter a “30” in the following field. Questions about all of this? Give us a call.

    Tip: You can also find out who’s overdue by clicking on the Customers tab in the left vertical pane to open the Customer Information screen. Click on the down arrow to the right of the field just below Customers & Jobs. QuickBooks provides several filters for your list.

    2) Reduce your inventory.

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    Want to discount all or selected items in your inventory by the same percentage or amount? Open the Customers menu and click Change Item Prices. Dagley & Co. can work with you on the whole item pricing process.
    The week between Christmas and New Year’s Day might be a good time to sell excess inventory by having a sale. If you only sell a few products, you probably know what hasn’t sold well in 2016. If your stable of products is larger, you can run QuickBooks reports like Inventory Stock Status by Item and Sales by Item Detail to identify your slow-sellers and discount them. You may need to filter your reports to see the right data. Talk to us about customization options if you’re unsure of this.

    3) Clean up your contact lists.

    If you don’t maintain your customer and vendor lists, you’ll eventually start wasting time scrolling through them when you enter transactions. So this would be a good time to designate those contacts that you’ve not dealt with in 2016 as Inactive (you can delete their records entirely, but we advise against that). Simply open a Customer record, for example, and click the small pencil icon in the upper right to edit it. Click on the box in front of Customer is inactive.

    4) Run advanced reports.

    Here’s where we come in. If we’re not already creating and analyzing QuickBooks’ advanced financial reports (found in the Accountant & Taxes submenu of Reports) monthly or quarterly, talk to us about it. They’re important, and they give you insight that you can’t get on your own. This is another activity that can spill into January.

     

    We hope these few things help to get you started with your year-end QuickBook tasks. Give Dagley & Co. a call at 202-417-664 if you have any questions, or would like us to go through these steps with you one-on-one. Remember: even though we are located in Washington, D.C. are clients are around the country!

     

     

     

    Image via public domain

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