How To Record Amazon Product Sales In QuickBooks Online

How To Record Amazon Product Sales In QuickBooks Online

This write up is perhaps the most simple, straightforward way of recording Amazon product sales in QuickBooks Online.  There are apps and other methods out there that may be better for you, especially if you deal in larger volumes of transactions.

The issue is that you have to create a separate step between the sales taking place on Amazon and the money being disbursed into your account because Amazon withdraws their fees prior to disbursing, so there is no way to accurately reflect the sales amount, and then really the secondary transaction of the processing expense by just entering the sales receipts into your main bank account.  This write up also assumes that you’re using QuickBooks Online to track inventory.

1. Create An Amazon Clearing Account

This is the first step!  You will want to create a separate bank account on your chart of accounts that is dedicated to Amazon sales and use it as a clearing account.  You’ll see the reasons for this in a second.

2. Great! You’ve Received A Sale On Amazon!

The seller notification email you receive from Amazon has all of the information in it that you need to accurately record this multi step transaction.

So you can see that the actual product sale was $66.29, with $5.49 paid for shipping.  And Amazon’s fees are a total of $11.76.  They will disburse to me $60.02 for this transaction.

3. Enter The Sales Receipt Into QuickBooks Online

Choosing to deposit this transaction into the Amazon clearing account, it allows me to accurately record the net margin that I made on this particular item so my books stay in order.  I’ve also added the shipping as a separate line item.  So the total deposit for this transaction is $71.78

4. Now Enter The Amazon Fees As An Expense

Now you will want to enter the Amazon fees as an expense that is being debited from the Amazon clearing account.  So in this case, I entered an expense for $11.76.

5. Now Review The Amazon Clearing Account on the COA

So upon reviewing the Amazon clearing account on my COA, I can see the balance in the clearing account is the amount of funds that Amazon states I will receive from this transaction.  At this time, I will leave it here for now(My income’s been recorded, the expense fees have been recorded-the P and L is fine).  Once Amazon disburses the funds into my bank account, I can then create a banking transfer between the Amazon clearing account and the account the money actually gets money deposited into, or I can create a journal entry.

Since Amazon and most e-commerce platforms disburse funds on a schedule and in batches rather than in individual transactions, by holding off until the money is disbursed into my account, I can add transactions to that future deposit seamlessly by using this method.

Hope that helps!

Keywords – The Basics of Digital Marketing

[thrive_headline_focus title=”Keywords – The Basics of Digital Marketing” orientation=”left”]

With the age of technology, the way businesses market themselves and their products is increasingly more complex and involved. As a result, many businesses are implementing both traditional marketing and digital marketing strategies.

Traditional marketing refers to print advertising such as brochures, flyers, and posters as well as paid advertisements in local publications, magazines, newspapers, and billboards. The traditional approach also relies on word of mouth referrals and local events, where businesses can build relationships with community members.

On the other hand, digital marketing leverages digital technologies to market products and services. The primary focus of digital marketing includes keywords, search engine optimization, email campaigns, social media management, and engaging customers to make online reviews. While email, social media, and reviews are more straightforward, keyword and SEO strategies can be daunting for businesses who are accustomed to more traditional strategies.

[thrive_headline_focus title=”What are keywords? How do you build an effective keyword strategy? ” orientation=”left”]

The goal of keyword marketing is to reach the right people at the right time – when they are desiring the product or service. An effective keyword strategy ensures that your website shows up when people search online for specific keywords or phrases. Below is a 5 step process that will get you well on your way to establishing an effective keyword strategy.

  1. Make a list of topics and themes that are relevant to your business and the products or services that you provide. Out of this list, create a list of words that you would like to test as possible head keywords. Head keywords are one to two words in length.
  2. Perform research on your head keywords. Search your keywords on Google.com and take a look at the related search terms that appear when you plug in a keyword. When you type in your word(s) and scroll to the bottom of Google’s results, you’ll notice some suggestions for searches related to your original input.
  3. Repeat steps one and two with long-tail keywords, longer phrases of 3+ words. While your head keywords will pull a larger audience, your long-tail keywords will likely draw your target audience as they are more tailored to what your business provides.
  4. After you have established a sizable list of head and long-tail keywords, check how your competitor rates for the same keywords. After testing your keywords, choose the ones that will diversify you from your competitors, so that you target a different segment of the market. SEMrush is a great resource to do this type of competitor research.
  5. Trim down on your keywords list even further with Google AdWords Keyword Planner and Google Trends. Without paying for an advertisement, you can gain access to your keyword search volume and traffic estimates, which will help you solidify which ones you want to keep. 

[thrive_headline_focus title=”Growth Business Consulting can help you establish and grow your digital marketing strategy.” orientation=”left”]

GBC develops customized digital marketing strategies based on our clients needs. We provide a​ variety of services including social media marketing, paid ads, analytical tools, keyword strategy, search engine optimization, and e-mail campaigns ​to drive sales. To learn more about our marketing services, contact us today!

How to Increase Productivity at Work

  1. Maintain an Agenda

Planning out the goals you want to accomplish within the hour, the day, the month, and so on. This gives you the ability to manage every task or project you wish to complete within the workday, to the very end of the month. Not only will it keep your work organized, but also it will encourage you to stay on task and manage your time accordingly and recognize the time it takes you to accomplish these goals you set out to.

  1. Prioritize Your Work

There may be a great deal of work that has to be done, but not all of it is a top necessity. Determine the most important tasks of the day and depending on the time constraints, accomplish them first or during your time of most efficiency. Some of your projects may be long term and cannot be completed within the workday whereas some small tasks can be done in a matter of a few minutes. Break up these different sized tasks to keep focused while accomplishing crucial projects.

  1. Break up work periods

Refraining from breaks can often lead to a lack of interest and energy; as well develop stale and uninspired ideas. Taking a break between projects keeps you energized and focused on the tasks ahead. Knowing when to take a break is crucial to a productive work ethic since leaving during a task may interrupt your thinking process, but other times it gives your mind a break on in order to refresh itself. Recognizing this period of disinterest is the time you need to distance yourself from work.

  1. Discover what Environment Encourages Your Productivity

Everyone has their own distinct setting on where they are at their most productive, and finding that thinking space is key to discovering your ideal environment. Do you find you’re most focused in a quiet area, away from people or noise? Or do you need to be in a more active area to be at your most efficient? Taking the time to find this space will help you unlock your own productive potential and also help you create your ideal working environment.

  1. Stop Multitasking

You may think that doing multiple tasks at the same time will ensure a faster rate of completion, but it often does not result in the best work, nor is it the most efficient use of your time. Keep yourself focused on one project at a time. You’ll find yourself to be far more efficient not only with your time, but in your ability to take on more tasks and produce far better results.

  1. Discover when You’re at Your Most Productive

Each person has their own unique time or place in which they are at their most productive. Once you find that ideal physical space, recognize the time of day in which you feel you do your best work. Some people find they are most focused in the morning, while others find mornings challenging and work best in the evening. When you find that time, try to revolve your schedule around it to ensure the best outcome.

3 Tips to Start a Business

3 Tips to Start a Business

by Holly Baweja

Make a Business Plan

Developing a complete business plan provides a great way for a new company to create a detailed outline of the fundamental elements of each stage of the creation to their business. This plan will organize and structure the key components as well as setting up the future management and responsibilities of the members of the company. This document should provide a general overview of the finances, competitors, and market that the business is contending with. Within with the plan, devising a market and sales strategy will provide a clear and efficient to best establish the business.

 

Organize Funds and Resources

Determine the amount of funding that will be required to start up your business by calculating the amount of materials and labor needed. Your businesses demands should be prioritized by evaluating the essential functions and determining the necessary amount of funding to implement them. Once the business plan is created, this step will be made easier as much of the fundamental aspects are already recognized. In addition to the written goals, calculating these funds and resources offers an detailed outlook on what will be expected and what weekly, monthly, or annual goals should be set to meet.

 

Plan for the Future

After your needs are determined, create a profit and loss forecast based on market expectations and competitor values in order to set up realistic business goals and determine future funding and expenses. Since these values are all approximations, these should not be examined and treated as a definite cost, but it gives the business owner a general idea of what will be required to maintain their business. Based on the business plan and the funds and resources that are determined in the previous steps, creating a accurate estimate of what is to be expected in the future can be achieved.

 

Ready to get started with your business but need some help?  Give us a call at 616-422-4500 and our team can help your business.  Free consultation!

 

Contact us via e-mail.

Xero Management Report Walk Through

Xero’s Management Report is a great compilation and summary of the month (or other periods) end reports that most businesses need.

The report includes an executive summary, cash summary, income statement (profit and loss), balance sheet, aged receivables and an aged payables report.  This report can be published within the Xero company file, or exported as a pdf, Excel document, or Google Sheets.

How to generate a Xero Management Report For Your Company

1.From your Xero Dashboard, navigate to the ‘Reports’ tab.  You can see at this time that I do not have it saved as a favorite or starred report.

2.On the reports page, you’ll want to scroll down to the “Accounting” reports section.  You should star this so it shows up in your ‘Reports’ drop down box in the future.

3.When you select Xero’s Management Report, you’ll be taken to a screen with the Executive Summary.

4.This executive summary alone offers a lot of insight into your business’ performance over the last month, compared to the previous month, and you can even have that difference show up in a percentage column.  It’s a really fantastic snapshot of your business.

5.There are several customization options for your report.  For starters, you can choose which month you would like to see a report for using this drop down box. You can also choose which of the 6 reports (executive summary, cash summary, income statement  balance sheet, aged receivables and an aged payables report), and you can also choose to show the previous month’s numbers, it’s ratio compared with the chosen month, or no comparison at all.

6.Once you have made your selections, you have a few options to export the finalized report.  Your options include just publishing it within your company’s Xero file, or you could download it as a .pdf,, Excel spreadsheet, or a Google Sheets file.  You can also choose to edit the cover page, who the preparer was, date, or choose not to have a cover page at all.

I find that the Xero Management Report is a great compilation and other accounting platforms such as Quickbooks Online require you to compile these various reports manually.

Yes! We can help you with your Xero bookkeeping!  Contact us today to get started!