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newbeginnings5
Level 2

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

I own a Repair Business that has a low amount of inventory items on hand and purchases individual parts for each customer or job. 

 

To my knowledge it is better to maintain an accurate Inventory and deduct COGS/COS at tax time, in order to realize less income for the accounting period.  Which equals less tax burden. 

 

Obviously, less tax burden is better and COGS/COS should be maintained.  Does it make sense to maintain Inventory in QuickBooks Online or externally for such a low amount of Inventory and high turnover of purchased parts?  What are the benefits if any with opting for Plus over Simple Start?

 

Expensing the purchased parts as Supplies/Materials doesn't sound like it will give an accurate picture of P&L.  Am I going in the right direction?

Solved
Best answer February 22, 2021

Best Answers
Charies_M
Moderator

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

Hi there, newbeginnings5.

 

For your question about maintaining an Inventory in QuickBooks Online or externally for such a low amount of Inventory and high turnover of purchased parts, I recommend consulting your accountant for expert advice on how to deal with this type of situation.

 

You can also find an accountant by clicking on this link: Find an accountant.

 

To give you an overview of the features of QuickBooks Online Simple Start and Plus, you can have this article for a great comparison: QuickBooks Online Comparison

 

Also, find out more about managing inventory in QuickBooks Online Plus and Advanced through this article: Set up and track your inventory in QuickBooks Online,

 

Learn more about how QBO calculates COGS through this article: Cost of goods sold: How to calculate and record COGS.

 

To give more information about managing inventory in QuickBooks Online, check out this article: Inventory management.

 

You might also want to check for the available reports that will help you see the product cost, the product on hand, and more: Use reports to see your sales and inventory status.

 

If there's anything I can help you with, feel free to drop me a reply below. Hope you have a good one.

View solution in original post

MarsStephanieL
QuickBooks Team

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

Hello there, @newbeginnings5.

 

Yes, you can override the price on the Estimate. Allow me to share some details on how you can add markup percentage per sale in QuickBooks Online.

 

After activating the Markup option in the Settings page, you can still manually modify the mark up percentage to 20 or 25 by the time you're going link the bill to an invoice.

 

However, if you're going to create a progress invoicing, or create an estimate before the invoice. You can add the markup cost on the items manually. Simply calculate the cost and rate per item. Then, enter it in the Rate column.

 

To know more about managing billable expense in QuickBooks Online, check out this article: Enter billable expenses.

 

I'll be around if you have other concern or questions. Take care!

View solution in original post

4 Comments
Charies_M
Moderator

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

Hi there, newbeginnings5.

 

For your question about maintaining an Inventory in QuickBooks Online or externally for such a low amount of Inventory and high turnover of purchased parts, I recommend consulting your accountant for expert advice on how to deal with this type of situation.

 

You can also find an accountant by clicking on this link: Find an accountant.

 

To give you an overview of the features of QuickBooks Online Simple Start and Plus, you can have this article for a great comparison: QuickBooks Online Comparison

 

Also, find out more about managing inventory in QuickBooks Online Plus and Advanced through this article: Set up and track your inventory in QuickBooks Online,

 

Learn more about how QBO calculates COGS through this article: Cost of goods sold: How to calculate and record COGS.

 

To give more information about managing inventory in QuickBooks Online, check out this article: Inventory management.

 

You might also want to check for the available reports that will help you see the product cost, the product on hand, and more: Use reports to see your sales and inventory status.

 

If there's anything I can help you with, feel free to drop me a reply below. Hope you have a good one.

View solution in original post

Charies_M
Moderator

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

Hi there, newbeginnings5.


Hope you’re doing great. I wanted to see how everything is going about the benefits and differences of Quickbooks Plus and Simple Start for Repair Business you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!
newbeginnings5
Level 2

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

Thanks for the follow up.  I'm leaning towards QBO Plus, however I'm concerned with exactly what I can do with Inventory items. 

 

We're a service based repair company.  We will require our software to be able to add items to the inventory and mark those parts up by specific percentages according to a set cost ranges (e.g. $1-50 = 25% markup or $50-100 = 20%).  I was reading through some other threads about how "mark up" is only available with the billing expenses on the vendor side.  Not sure if this affects what we need to do.

 

The price that the item in the inventory is set for will not necessarily be the selling price, but we would still need to be able to differentiate how much we paid for the parts and what we sold them for.  Would we have to manually override the price of the part in the Estimate?  Or would we include the markup when we add the part to the Inventory?  On the Test Drive, I see that you can enter the cost of the part.  I suppose that would be better than nothing.  Guess I was just looking for something more automated, but instead I'll have to use a separate way to calculate the markup and then input.

MarsStephanieL
QuickBooks Team

Inventory/Cost of Sales, benefits and differences of Quickbooks Plus and Simple Start for Repair Business

Hello there, @newbeginnings5.

 

Yes, you can override the price on the Estimate. Allow me to share some details on how you can add markup percentage per sale in QuickBooks Online.

 

After activating the Markup option in the Settings page, you can still manually modify the mark up percentage to 20 or 25 by the time you're going link the bill to an invoice.

 

However, if you're going to create a progress invoicing, or create an estimate before the invoice. You can add the markup cost on the items manually. Simply calculate the cost and rate per item. Then, enter it in the Rate column.

 

To know more about managing billable expense in QuickBooks Online, check out this article: Enter billable expenses.

 

I'll be around if you have other concern or questions. Take care!

View solution in original post

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