QuickBooks Tip – Determing Cost of Goods Sold

Job Costing Tips, QuickBooks Setup & Cleanup
Question: How do I determine the Cost of Goods Sold for an item? Answer: I tell my clients that Cost of Goods Sold (COGS) is any cost incurred that directly relates to getting the sold goods out the door. I have them ask the question "Would you have this expense if you hadn't made the sale?" Typical examples of COGS are product purchased for resale, subcontractors or vendors you hire specifically for preparing a product for sale, shipping materials like packaging, freight costs of receiving the resale product and shipping the product to your customers, payroll/labor costs of your employees who are directly related to preparing the goods to be sold or shipped out (would you have hired them if you didn't have the product to sell?). Costs that are…
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QuickBooks Tip 10 Plus Methods of Accounting for Construction Contracts

Be A Better Bookkeeper, QuickBooks Setup & Cleanup
Every contractor, regardless of their business structure (sole proprietor, partnership, corporation) has to choose an overall method of accounting; before the first federal tax return is filed.  Accounting methods include: the cash method the accrual method the accrual method which excludes retentions, and (possibly) a hybrid method(s) Depending on the type, size, and length of the construction contract, there are various methods of accounting for long-term construction projects that are allowed - each method has its own advantages and disadvantages. A contractor will need to select a specific long-term contract accounting methods - possibly with different methods for it's exempt and non-exempt contracts - and also selects sub-treatments for the classification of contracts and the allocation of indirect costs. In a nutshell, accounting for long-term contracts relates to the treatment…
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QuickBooks Tips Payroll Mistakes – It’s NOT As Easy As 1-2-3! Part 4

Payroll Tips
Payroll is an essential part of your business – not just a weekly, bi-weekly, or monthly annoyance.  Payroll is the primary way that employees are rewarded for good job performance and retained.  If you are issuing late or incorrect paychecks it can lead to dissatisfied, unmotivated workers – or worse.  It’s hard to keep good employees when a company gets payroll wrong. The relationship between employees and employers is highly regulated by the government and many of these regulations involve payroll.  There are literally hundreds of things that you have to know, as well as hundreds of mistakes that you can make.  As a result, the payroll process is much more complicated than anyone who has never done it can possibly know. The consequences of some mistakes can be more…
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QuickBooks Tip Payroll Mistakes – It’s NOT As Easy As 1-2-3! Part 3

Payroll Tips
Payroll is an essential part of your business – not just a weekly, bi-weekly, or monthly annoyance.  Payroll is the primary way that employees are rewarded for good job performance and retained.  If you are issuing late or incorrect paychecks it can lead to dissatisfied, unmotivated workers – or worse.  It’s hard to keep good employees when a company gets payroll wrong. The relationship between employees and employers is highly regulated by the government and many of these regulations involve payroll.  There are literally hundreds of things that you have to know, as well as hundreds of mistakes that you can make.  As a result, the payroll process is much more complicated than anyone who has never done it can possibly know. The consequences of some mistakes can be more…
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QuickBooks Tips Payroll Mistakes – It’s Not As Easy As 1-2-3 – Part 2

Payroll Tips
Payroll is an essential part of your business – not just a weekly, bi-weekly, or monthly annoyance.  Payroll is the primary way that employees are rewarded for good job performance and retained.  If you are issuing late or incorrect paychecks it can lead to dissatisfied, unmotivated workers – or worse.  It’s hard to keep good employees when a company gets payroll wrong. The relationship between employees and employers is highly regulated by the government and many of these regulations involve payroll.  There are literally hundreds of things that you have to know, as well as hundreds of mistakes that you can make.  As a result, the payroll process is much more complicated than anyone who has never done it can possibly know. The consequences of some mistakes can be more…
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Contractors Using QuickBooks Have Special Bookkeeping Needs

Be A Better Bookkeeper, QuickBooks Add-Ons, QuickBooks Setup & Cleanup
As we all know, having an accounting system is a vital piece of any successful business.  An accounting system provides an automated and easy way to track how much money is being made vs. how much money is being spent. Creating proper accounts in an accounting system to track business Assets, Liabilities, Equity, Income, Cost of Goods Sold, and Expenses will allow your construction client to see an overall picture of their company's worth or value from a financial standpoint - not only for themselves, but also when they apply for a loan, or have to be bonded. A construction company, like any other company, has numerous responsibilities - to their employees, customers, vendors, subcontractors, investors, and even the government. Contractor Business Needs: The construction industry has some very specific…
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