Sales Receipts in QuickBooks…Everything You Need to Know

When your bookkeeping processes include carefully documenting every sale, it ensures that your financial reports and records are accurate when you need them to be. The sales receipt is the right tool for this in specific situations
 
As a business owner, you know how important it is to have receipts for expenses that you and your team incur. You should have a system to record and then analyze your spending to ensure you are informed as to how it impacts your cash flow. You even claim some of them on your income taxes! 
 
That being said, your customers, too, expect to receive forms documenting purchases they’ve made from you. When you automatically receive payment for your goods or services, using a sales receipt will prevent the need for an invoice and further remittance. Not only will your customers have a record of the transaction – you will, too.
 
QuickBooks supports the creation as well as the tracking of sales receipts. This accounting software solution manages the logistics of this important task incredibly well. It eliminates the need for double data entry, once on a paper copy for your customer and again in your accounting system. This QuickBooks feature will not only minimize human error, but will save you time while lessening the possibility of disputes down the road.
 
A Simple Form
 
The following is an example of a situation which perfectly illustrates the importance of really learning about and understanding QuickBooks before you start entering live data. Say you received a check from a customer on the spot for a house painting job you completed. When you look at QuickBooks’ home page, which icon do you click?
 
While reading the names you may be tempted to click Receive Payments, since that’s exactly what you’re doing. Be sure to note that screen is reserved for revenue that comes in to satisfy already created invoices and unpaid items on billing statements. Instead, you’d click Create Sales Receipts to open the Enter Sales Receipts window. Here’s a partial view of what you’d see:
 

When a customer pays you immediately for goods or services, you need to open and complete the Enter Sales Receipts window.

 

If you’ve already gone through the process of entering your customer and item/service records in QuickBooks, you can record your sale very quickly here. Be sure to remember that even if you haven’t, or if you need to create a new record on the fly, you can select <Add New> when you open the drop-down option lists for the Customer:Job and Item fields.
 
Warning: Do you need to track inventory levels for products you sell? Have you created thorough records for these items? There is information that QuickBooks needs to help ensure that you don’t run out of stock or keep too much on hand. Let us walk you through the software’s inventory-management tools so you can take advantage of all the benefits they offer by setting up a FREE 1/2 Hour Consultation with a Business Cents Consultant. 
 
Once you’ve selected the appropriate customer, Class (if you use this feature), and Template (Here again, do you understand that you can either use the default sales receipt form provided by QuickBooks or customize it? We can help here too), make sure that the Date and Sale No. are correct.
 
Continue by clicking on the icon representing the transaction’s payment method, choosing from Cash, Check, Credit Card, or eCheck. Click the More button if your method isn’t listed there. Here, you can add new options by selecting Add New Payment Method just like in the job and item fields. A small window will open allowing this. If you want to modify this list further by, for example: editing and deleting the default methods, clear and close the current sales receipt, open the Lists menu, and select Customer & Vendor Profile Lists | Payment Method List. This window will open:

 

Click the down arrow in the Payment Method field near the bottom of this window to see your modification options.

 

After you’ve chosen the desired Payment Method (and entered a check number if necessary), you’ll complete the rest of the sales receipt very much like you would an invoice, by selecting the correct products or services, the quantity you’re selling, and the transaction’s tax status. QuickBooks will fill in the rest if you’ve created complete item records.
 
After all the data fields you want are filled, save the sales receipt. Of course, information about the transaction will be available in standard places like the Customer Information screens and various reports.
Whether your revenue comes instantly (documented by a sales receipt) or as longer-term payment on an invoice, your company’s income is just one element of the cash flow equation. Are you able to create and interpret the reports that can help you understand these complex calculations, like Cash Flow Forecast and Profit & Loss? You probably run some of QuickBooks’ more basic sales reports regularly, but consider bringing us in to do the deep analysis needed to make better business decisions.

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