There are three types of jeweler using QuickBooks:
-
Those who have a point of sale program who can import their data
into QuickBooks -
Those who have a point of sale program that does NOT import into
QuickBooks -
Those without a POS program at all and use QuickBooks as their
accounting program who could use QuickBooks as their POS program.
The idea is to have an accurate profit and loss statement so you can
see how your business is doing.
Those who have a point of sale program who can import their data
into QuickBooks
This is the easiest way. When buying inventory you enter the bill
into QuickBooks and put all inventory into “Inventory Asset-other
current asset”.
It sits there until its sold. When its sold the POS program reaches
into QuickBooks, LOWERS inventory by the cost of what was sold today,
puts that number into Cost of Goods Sold, places an entry into SALES
(product sales and then shop sales) for what was sold, increases the
sales tax liability account and puts your money (usually into
undeposited funds) so it can be put into the bank account. Shop costs
should not be entered into the POS program, but into QuickBooks Shop
Cost Of Goods directly by the bookkeeper.
Those who have a point of sale program that does NOT import into
QuickBooks
Without a connection into QuickBooks, a store owner would run
reports in the POS program to find those numbers so it can manually
be entered into QuickBooks
After finding the numbers a journal entry is made. Totals for the
day only are entered, not each sale. Totals are placed into the
journal entry:
Sales and sales tax goes in the credit column.
Cost of goods sold go into the debit column.
Total of cost of goods (the same number) goes into the credit
column. Money, by the totals (amex;Visa;Discover;checks & cash) go
into the debit column The difference (not balanced amount) goes to a
liability account called “Customer Deposits”, this is usually money
customers gave you on deposit for layaways or special orders.
Those without a POS program at all and use QuickBooks as their
accounting program who could use QuickBooks as their POS program.
Small stores can use this method but always will manage inventory
better in a POS program. Less than $150,000 in inventory and this
works well in QuickBooks. Over this amount one should get a POS
program.
The Chart of Accounts would have the same simple setup as one with a
POS program:
SALES:
Product Sales
Repair & Custom Design Sales
Appraisals
COST OF GOODS
Product COG
Shop COG
Jewelers wages
Jewelers taxes
Findings/Mtgs/Stones
Outside trade shop costs
To find out details about how many engagement rings you sold or
chains, you wouldn’t clutter up the P&L with that. QuickBooks has an
inventory section they call ITEMS. You’d go to the top LIST icon,
click on ITEMS and add new items. If you don’t see “Inventory Part”
(has cost of goods attached to it) you’d have to go to
EDIT>Preferences and on the inventory tab, make inventory and
purchase orders active.
Then you’d make big category sections:
ENGAGEMENT RINGS
WEDDING BANDS
DIAMOND EARRINGS
CHAINS
BRACELETS
COLORED STONE JEWELRY
GIFTS
Now that you’ve made master categories in ITEMS, when you add REAL
inventory, you’d put that as a sub account of your now made master
list. You do this by using BILLS and instead of using the “expense”
tab, you’d use the “Items” tab and click “ADD NEW”. Here you’d add a
new inventory part. In the income and cost of goods account you’d
connect them to the simple chart of accounts described above. This
adds your items into inventory asset for you.
Repair and appraisals services would be added to your Items list,
but use the QuickBooks “Services” for those.
Now when you use the QuickBooks INVOICES or SALES RECEIPT you’d
enter the customers name and address, so as to build your customer
list and sell your new items. You could print a receipt for the
customer; inventory would be lowered in QuickBooks, sales would be
increased, cost of goods would have an entry as would sales tax. Now
most of your accounting is done for you and you have accurate
customer records and this has saved you a ton of time.
But again, this last section is for smaller stores. Lots of
inventory? You need a good jewelry pos program, preferably one that
imports directly and seamlessly into QuickBooks.
David Geller
P.S. We’re having two QuickBooks for Jewelers classes in June. You
sit at your own computer and get your QuickBooks setup and trained
how to use it as described above.
Atlanta: June 22 & 23rd
Los Angeles: June 29th & 30th
Both on a Monday & Tuesday
See link below for more information
David S. Geller
JewelerProfit