First off, I do not utilize INVOICES in QB for our retail services. We have a separate database system that does that and tracks jobs. I utilize QBs online to 1.) track NET SALES daily, 2.) track income deposits from customers made at time of sale and 3.)track/enter insurance payments (A/R) once they are billed and income received at a later date. My taxes are cash basis so I'd like to run QB's the same way; however, I do have to report on accrual basis to my franchisor. Any help in for the best way to do this would be appreciated. Thank you.
Hello there, @jpsgirlsf.
Thanks for reaching out to us here in the Community space. I can share some insights on how reports are accumulated in QuickBooks Online (QBO).
You will have to enter invoice transactions so you can run an accrual basis report for your franchiser. You won't be able to pull up an accrual report if you're only entering net sales, income deposits, and insurance payments (which are cash basis).
For additional reference, you can check this link: Choose between cash and accrual accounting methods in reports.
If there's anything else you need help with, just let me know by leaving a comment below. I'll be around to offer more help.
I really appreciate your help with this. So when you say "You will have to enter invoice transactions so you can run an accrual basis report for your franchiser", could you explain how to do it this way in a little more detail, cause it sounds like I could at least do that on a weekly basis, or even monthly basis. I keep an Excel spreadsheet for the daily/weekly numbers.
I'm wondering if I could do it this way so that I have an accrual report, because I must be able to report accrual to my franchisor: Can I enter an INVOICE weekly with the customer as "Sale of Product", and then the amount of the invoice as the total income (including actual money paid and money to be owed from insurance or patients), let's say $50,000. Then go in and RECEIVE PAYMENTS individually to account for the bank deposit I make and the credit card and insurance payments I received (say $48,000) that week or even at end of month?
My goal is to be able to show 1.)total merchandise sales and then 2.) the total income I received through customer payments(cash,credit cards), and insurance payments and to 3.) be able to show the total balance still owed to the business(AR I believe).
I need to be able to file quarterly reports so the total numbers are what matter, I don't need to track daily sales numbers in QB. Any advice you can provide would be helpful. Thanks so much.
Hi there, jpsgirlsf.
All invoices are accrual type transactions, thus, it will display on your sales reports (accrual basis) automatically. The invoices will also show in your cash basis reports once you paid the invoice on the same day. You can pull up the Sales by Customer Detail report or customer summary report to verify the information.
You can enter your invoices for your daily tracking of income and RECEIVE PAYMENT if the customer pays you on the weekend or month end. In this process you can track income you have received and the balances still owed to the business.
For your quarterly reports, you can use the Sales by Customer Summary. This shows the total sales set for the report period for each customer.
Please let us know if you have additional concerns. I'm here to help!
You both have been very helpful. Your last response helped me get going but I have another question and wanted to keep in on my same question (hence the reason I didn't marked it solved). So now that I'm "entering invoices" to my income acct and then "receiving payments", what do I do if I have to do a customer refund from my income account. What is the proper way to enter it, so that it reduces my income? Thanks in advance.
It'll be my pleasure to provide you with additional information, @jpsgirlsf.
You can record a refund receipt for your customer. Let me guide you how.
Recording a Refund Receipt doesn't affect your customer's balance, but only affect your bank balance. This said, it'll decrease your bank balance.
Here's how you record a refund Receipt:
You may read this article for more information: Record a Customer Refund.
Fill me in if you have any other concerns. I'll be here to assist you. Have a good one!
So, just to confirm I'm doing it correctly the way you mentioned - When I enter a return receipt it will reduce my bank balance. I also noticed that when I pull the Income by Customer report, it will also decrease my income account (which is what I want).
Also, It actually looks like everything is record and tracked similar to if I just created a "CHECK" (refund). Is there a difference?
It’s nice to see you again, @jpsgirlsf.
Allow me to step in for a moment and route you to the direction about tracking a customer refund.
You’re correct. The refund receipt only affects the bank balance. Since you’re currently using the Cash basis accounting, you’ll have to create a check to process customer refunds.
This will reduce the bank's balance and offsets the customer's open credit, overpayment, or prepayment. To accomplish this task, please follow these steps.
Once done, make sure to pair the transaction with credit or overpayment to keep your records correct. Here’s how:
This information should help you move forward. Keep me posted if you have any questions or concerns while working in QBO. Please know I'm always ready to help. Have a great rest of your day!
Great - thanks for clarification. Another question - So I mistakenly deleted an entry that took my payments and moved them to my unapplied cash payment income acct. Once I saw this, I went back in and recreated the original transaction. But now how do I get them to show as payments to my true income acct and not the unapplied cash payment account? Thanks.
I'm here to help regarding about your additional question.
How did you recreate the payment?
Example of transactions in the Unapplied cash payment account are those unlinked invoice payments. There's no other way to remove them in that account unless they are properly linked to the correct invoices. Let's run the Audit Log report (Gear icon>Audit Log) to see the history of this payment. Once done, delete the one you've recently created and re-enter it again with the original detail.
Let us know if you have more questions. Have a great day!