Thanksgiving for QuickBooks Pro Users – The Inflation of Things Other than Macy’s Parade Balloons
According to the American Farm Bureau Federation, a traditional Thanksgiving dinner complete with turkey, stuffing, cranberries, and my personal favorite, pumpkin pie, will cost you 13% more this year than last year.
Perhaps it’s time to usher in a new era – Thanksgiving lasagna, anyone?
Food and energy prices aside, market watchers and analysts are suggesting we small business owners perhaps need not fear inflation as we have in the past. Whether adjusting your own pricing for inflation or other reasons, QuickBooks can help you accurately update your financial records, providing better balance sheet and income statement reporting for your business.
Keeping on top of your profits per service, per customer is important. So when your costs change, it is important to revisit your sales pricing to determine if an adjustment will help or hurt your business. In QuickBooks Pro and Premier desktop edition, adjusting prices is completed in the Item list.
Click on List menu, then Items
Right click on an item name, select edit item and then replace your old selling price with the new one.
Your existing transactions will not be changed, only new transactions will use the new pricing. So be sure to review open sales orders or active estimates created with the old pricing to determine if you need to update with the new pricing, as this will not happen automatically.
If a vendor has changed many cost prices, you can easily identify those items in your item list and change in a list view, similar to working in excel:
Click on Edit menu; then Add/Edit Multiple List Entries
For those companies that encounter random price changes from vendors through the year, consider upgrading to QuickBooks Enterprise. The 2012 edition introduced a new feature; whenever the cost changes on a purchase transaction, you can have QuickBooks change the selling price. The settings can be applied to each item as to whether you want to approve the price change or just automatically change the selling price. On each item, you can set the markup for that item over cost.
I’d like to wish you and your family a very Happy Thanksgiving this week! And if it isn’t too expensive, have an extra slice of pumpkin pie on my behalf.