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Please help QB newbie get off on the right foot

I've been in business for one year, just now starting my second year. I did not use QB my first year. Rather, I kept up with everything on Excel spreadsheets, and did manual quotes and invoices.

I'm in telecom and computer/networking services, and so far I have not maintained inventory on the books. I keep parts around, but I've always shown everything as COGS against my orders. Tracking cost is getting tough, because I am starting to buy out-of-service telecom and computer parts in lot bids. It's kind of like salvage, in that I take in a bunch of stuff I don't want to get the stuff I do want. Then I'm never quite sure where and exactly how to allocate the cost.

I have been using 5 main part numbers for my services: CompServ1 (in-house computer repair services); CompServ2 (on-site computer repair services); CompServ3 (custom computer building services); NetServ (network services); and TelcomServ (telecom services). On my invoices I show these in total number of hours. Then I itemize the parts I use and bill for them individually.

With this very basic (let me know if it's *too* basic to be of any use) outline of my business, what are some general tips for setting up QB?

Let me know what info I left out.

thank you,

jm

Reply to
JM
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Nah, I think you're doing okay. If you buy 100 things for $100 but only keep ten, the ten you keep each cost you $10.00.

Reply to
HeyBub

jm:

You will probably want to create some additional Parts/Items to account for the physical items you are purchasing & reselling.

I assume that some of what you buy will be discarded/recycled, and you will want to get rid of that without fouling up your Inventory books at year end. If so, you need to assign a cost to each item you purchase.

Let me know if I am unclear with this - I'm not sure how much info you need/want.

Tony

Reply to
TonyK

One thing to think of doing too would be to account for each item in the lot of goods purchased and reflect each item cost individuallly... say 100 items for 200.00 this would be 2.00 each, then you find you need to get rid of 80, if you deem the items to be somewhat still useful you can donate them to a charity (goodwill, salvation army, etc) get receipts and account for $160 in goods donated & possibly more if you use the It's deductible software to help determine 'actual value of goods donated'.

This could do two things for you. 1. reduce your item cost for the few items you choose to keep and resell, since each item in the example only cost you $2.00 each if you sold them for 20 you'd reflect an $18 increase rather than the way mentioned below of counting the cost only for the items you keep which would raise the cost of item from $2 to $20 if you only kept

10, which would yield a lower profit margin.

  1. Your donations to the charities could be tax deductible writeoffs, so you'd be able to reduce your taxable income.

just some thoughts... exactly how practical they are from a professional accounting / IRS standpoint is beyond me.... but it seems logical.

Reply to
Mr . .

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