April 1, 2025 • 60 mins
Rachel and Dan discuss making daily sales summaries for entering transactions into Quickbooks. We will also be taking a closer look into a POS system, Lightspeed and how they handle this process.
QB Power Hour is a free, biweekly webinar series for accountants, ProAdvisors, CPAs, bookkeepers and QuickBooks consultants presented by Dan DeLong and Matthew Fulton who are very passionate about the industry, QuickBooks and apps that integrate with QuickBooks.
Earn CPE through Earmark: https://bit.ly/QBPHCPE
Watch or listen to all of the QB Power Hours at https://www.qbpowerhour.com/blog
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00:00 Introduction and Course Instructions
01:09 April Fools and Technical Difficulties
01:33 Welcome to QB Power Hour
02:05 Introducing Today's Topic: Daily Sales Summaries
03:05 Meet the Co-Host: Rachel Doci
05:12 Housekeeping and Agenda Overview
06:51 Understanding Daily Sales Summaries
15:35 Setting Up QuickBooks for Daily Sales Summaries
19:07 Integrating Point of Sale Systems
21:24 Best Practices and Common Issues
29:46 Clearing Accounts and Daily Sales Summary
30:45 Manual Entry and Mapping Complexities
31:15 Setting Up Accounts and Items for Daily Sales
34:40 Handling Sales Tax and Reporting Issues
42:05 QuickBooks and Lightspeed Integration
45:10 Lightspeed's Features and Benefits
51:53 Training and Implementation with Lightspeed
54:01 E-commerce Integration and Product Mapping
57:21 Conclusion and Final Thoughts
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Dan DeLong (2) (00:32):
April Fools, everybody.
Rachel, where are you?
Alright, that fantastic.
You
Rachel D (00:46):
got me.
You got me.
Dan DeLong (2) (00:51):
Welcome everybody to a QB Power Hour and
I pulled up the wrong videointro video.
But thank you for joining ushere today.
Sorry.
Today is I think April Fools isbeing played on me.
I have a very horrible internet.
(01:13):
Sound was horrible right beforegoing live.
And of course now I've done somechallenging things with the
wrong intro video.
But here we are.
Today we're gonna be talkingabout daily sales summaries and,
unpacking the LightspeedQuickBooks integration, for
(01:33):
summarizing sales data in pointof sale from QuickBooks.
My name's Dan DeLong, owner ofDan with and school of
Bookkeeping.
I worked at Intuit for nearly 18years co-host in today, as well
as the workshop Wednesdays.
And the feature D the feature D.
(01:54):
Oh my God, I can't say it.
The feature, deep dive guest atthe unofficial Facebook
accountant podcast.
So thank you for joining us heretoday.
Now normally this would beMatthew joining us today, but
unfortunately he's not feelingwell, and he was, he sent me a
video he's I know it's April1st, and this is not an April
(02:16):
Fools joke because he, had onvideo, he had his hair all it's
9:00 AM on, his time.
So this was like very early inthe morning for him to be
sending a video, but playing thepart of Matthew today is Rachel
Doci.
Thank you for for, filling in onsuch short notice coming out of
(02:37):
the yoga.
And,
Rachel D (02:41):
I was literally coming out of the yoga room and I was
like, no problem.
And I ran home.
Dan DeLong (2) (02:46):
So for those that that don't know you, tell,
us a little bit about your job.
Rachel D (02:53):
Sure.
So in addition to co-hostingworkshop Wednesday with you,
where we always talk aboutsomething fun every week, my
firm is called Net Deposited andwe do all kinds of different
bookkeeping and accounting, butone of our focuses specifically
with what we're gonna talk abouttoday with, these aggregated
(03:18):
sales postings, which we do alot in e-commerce bookkeeping,
and we do a lot of that at netdeposited and not necessarily
just e-commerce, but even gosh,with everything it seems like
everybody's using a POS system.
So we do a lot of that at netdeposited and I'm very active in
the QuickBooks world and justhappy to be here.
Dan DeLong (2) (03:42):
All right.
Thanks again for filling in on,such short notice.
And we did a a daily salessummary workshop on the
workshop.
On the workshop Wednesday overat School Bookkeeping.
So yeah, we just did
Rachel D (03:55):
like the other week.
Dan DeLong (2) (03:56):
Yeah, so that was like a dress rehearsal for
the QB Power Hour, which alittle bit of information about
the QB Power Hour, just turningin for the first time.
It's every other Tuesday at 12noon.
We are available or for CPEcredit or we do have a channel
over at earmark to be able toget those CPE credit for for
(04:21):
accounting professionals.
We now have six, prior webinarsavailable there on the earmark.
Housekeeping.
We're gonna be talking about thetopic of, today.
So if you have any specificquestions about about the topic
please put them in the q and aso we can make sure that we can
(04:43):
capture those.
If you're watching on thestreaming platforms of YouTube
which, oh my gosh, my computerjust restarted.
I hate Mac.
I'm, sorry.
I hate Windows machine.
Rachel D (04:58):
That's why I use a Mac.
Dan DeLong (2) (05:00):
Yeah.
Yeah.
I was telling my son, Macs justdon't crash.
Yeah.
Out of the blue like Windowsmachines do.
So if you hear a jet enginethat's my machine restarting in
the background.
So if you have the some q and aspecific questions about what
(05:24):
the topic that we're talkingabout today, please put those in
the q&a.
If you have general commentsabout whether you prefer Mac or
windows, please put those in thecomments or the, and then of
course we have the, handoutavailable there.
Noah, if you can throw that,those links in the variety of
places that we need them to goso that we can do that.
(05:48):
'cause I would've done that onthe other machine that just
restarted.
So here we go.
We also have a QB power Hourstore for all your QB power
hours, swag needs.
Wireless chargers mugs,whatever.
(06:08):
So let's let's talk about what'son the agenda today.
Daily sales summaries is we'regonna unpack what they are, who
needs them and then do a littledemonstration of, doing them in
QuickBooks online.
And then we'll transition alittle bit into Lightspeed point
of sale and how they arehandling the daily sales
(06:29):
summaries.
Now, all of this came up becauseover at School Bookkeeping, we
have quick answers, featurewhich allows anyone, to, chat
with with us there.
And someone came in with a,challenge, because, they were
(06:50):
using a subway.
They, had a subway franchisethat they were working with.
And, subway had its own way tointegrate into QuickBooks
Online, and it was doing thatwith a daily sales summary.
And, very familiar with how thisall plays out with desktop and,
(07:13):
QuickBooks online.
But it, was integrating intoQuickBooks online and there's a,
snag.
And that's what we really wannaunpack here is, there's a, yeah.
But
Dan DeLong (3) (07:25):
When
Dan DeLong (2) (07:26):
it comes to doing daily sales summaries and
QuickBooks online and and we'lltalk about that as it relates to
Oh yeah.
Sales.
I think I
Rachel D (07:35):
remember, yeah.
It was the sales tax.
Dan DeLong (2) (07:37):
Yeah.
We'll, do that now.
Oh, crap.
Day is just a horribletechnology day.
But we did have some priorwebinars.
We do a, series here on, on theQB Power Hour called Niche
Nuances.
So I wanted to make sure thatthose were available in the
handouts.
(07:58):
We did convenience Stores withAlicia Kaz Pollock.
She does she actually literallywrote a book about, handling
convenience stores.
They will typically notintegrate with QuickBooks,
depending on what, what'ssoftware they're using or if
(08:19):
they're just using cashregister.
So that is that's a good, goodone to review.
And then we also had WilliamEnglish join us to talk about
retail.
I, was looking at this thumbnailtoo look how, young we looked.
Rachel D (08:36):
I know
Dan DeLong (2) (08:37):
with Michelle and myself there.
That was
Rachel D (08:39):
before I knew you too.
Yeah.
Dan DeLong (2) (08:42):
Wow.
I think that was amid amidst thethroes of Covid.
Alright.
All right.
So our first poll question justto get things started here.
What version of QuickBooks doyou support your clients with?
Has QuickBooks online or desktopor both?
Whether that is now Rachel you,primarily or solely use
(09:03):
QuickBooks Online.
Or desktop or what, does itYeah.
Rachel D (09:06):
I, used to use desktop a long time ago.
That's where I originallylearned desktop.
When I learned QuickBooks,sorry, I was in desktop way back
in the day.
But when I started my businessnet deposited, I really wanted
to exist in the cloud.
So that was 2019.
(09:26):
I completely learned QuickBooksonline and never looked back, so
I only used QuickBooks Online.
Dan DeLong (2) (09:35):
Gotcha.
And when we first started.
Working together.
You because you specialize inthe inventory and, retail or
e-commerce space.
Dan DeLong (3) (09:49):
Yeah.
Dan DeLong (2) (09:50):
Getting these daily sales summaries into
QuickBooks is, a key workflowYes.
In, your practice.
Rachel D (09:58):
It's, really key.
And with that, I remember Ididn't really know a lot of the
specifics of why'cause most ofmy clients sell stuff, even
though we do, supportservice-based businesses now
more than ever.
'cause inventory's driving menutty, but we do support stuff.
(10:21):
And there's so many differentnuances about dealing with
inventory and QuickBooks onlinethat I really just needed to
unravel every little thing andunderstand what it can do and
what it can't do.
So there's so many.
Different elements to thesesales summaries and why you
(10:42):
would need it versus when youwouldn't wanna use it.
And yeah, that, that's notreally an answer but, basically
there, there's just so much toknow that it's really, helpful
to zero in on one thing, focuson it, talk about it, understand
why it's important to do asummary this way versus that
(11:04):
way.
Gotcha.
Dan DeLong (2) (11:06):
Yeah, it looks like most of the folks are
agnostic to the QuickBooksplatform.
About 59% support, both but thenlike you, 31% solely with
QuickBooks online.
So let's talk a little bit aboutdaily sales summaries, what they
are, who needs them and justunpack that a little bit here.
(11:28):
But really what this boils downto is turning.
The, Z out store close at theend of the day into a, sales
transaction into, QuickBooks.
And that may be something thathappens automagically through
whatever application thatyou're, that you might be using
(11:49):
or entering it in, individuallyinside of, QuickBooks.
But yeah, and
Rachel D (11:55):
I'll say that like we, we talked about this method
specifically in the workshopWednesday, and using a sales
receipt entry form in QuickBooksonline is definitely the
traditional way.
There's, other ways to get salessummaries into QuickBooks
Online, but I just wanted to saythat because I thought that was
(12:16):
very confusing when I firststarted learning it this way.
There, there's journal entries,there's different ways to get it
in there, but I just wanted tosay that.
Dan DeLong (2) (12:27):
Yeah.
The the type of transaction thatyou're going to be entering in
these sales summaries iscertainly going to either
augment or pass the baton to,to, to the next workflow that
might be necessary, or, put alimitation on that, depending on
what what it is that youcompletely do inside of the,
(12:51):
QuickBooks Ecosystem.
So who really needs them?
Let's talk about some of the theindustries that, that will use
those.
Maybe the integration is notneeded or not functioning right?
So if they're using like aphysical cash register, right?
There's no way to set that ontop of your computer and get it
(13:12):
to go into QuickBook, right?
End of.
You're gonna zero out your yourcash sales or your cash register
for that day.
And it's going to give you, in,general what was sold, what's
taxable, what's not taxable whatand the payment methods that you
(13:34):
took throughout throughout theday on those cash registers.
So that will be one in reasonfor, using a daily sales summary
inside of QuickBooks.
The integration is just notthere.
Or if they, want to dodepartmental accounting, right?
So retail.
Convenience store e-commerce.
(13:55):
We talked about some of those,industries, they don't manage
inventory or sales data in, intwo redundant systems.
So they're not necessarilyneeding to track their inventory
comings and goings in aperpetual, action.
And that's very,
Rachel D (14:11):
very common that we wouldn't do that in QuickBooks
online.
Dan DeLong (2) (14:15):
Because as we've talked to ad nauseum on the
workshop, QuickBooks online is,great for inventory tracking if
it's you are a reseller ofgoods.
But not if you need to know muchmore of anything else about
those goods where it is landed,costs all those advanced
(14:37):
inventory functions.
So if they're not tracking thoseperpetual inventory, daily sales
summers that are, okay.
Or they're using QuickBooks for,category tracking of
Rachel D (14:49):
Yeah.
Dan DeLong (2) (14:50):
Again, those departmental things.
So there's a little bit ofpre-work when it comes to
setting up QuickBooks for, thedaily sales summary itself,
right?
So first is to create some kindof customer for your counter
sale, right?
So things that you can call itwhatever you want.
(15:11):
QuickBooks point of sale callthe counter tail, right?
But you can call that customerwhatever it's Right.
A, you can even do it byregister if you wanted to,
right?
Just creating a customer to puton the, sale transaction.
Yeah.
Rachel D (15:29):
And just like we, we do a lot of Shopify accounting
and bookkeeping, and I alwaysjust create Shopify customer and
that's if I'm bringing them inand using a sales receipt and, I
need to put a customer in thefield.
We just do Shopify customer.
Dan DeLong (2) (15:49):
Yeah.
And I saw in the like the q anda that somebody was asking for,
can we have a Power hour onShopify integration with qbo,
there's probably about 34different ways to bring in a
Shopify transaction.
There's one built in directlyinto QuickBooks with through
commerce to all of the otherones.
(16:10):
I saw another person's usingshow go.
And that was actually somethingthat William had mentioned on
the, prior power Hour.
But the next thing after you setup a customer is setting up your
desired chart of accounts.
How much detail or generalgenerality are you gonna need in
(16:32):
the chart of accounts, side ofthings.
So you just wanna set up, thosechart of accounts first, and
then set up items.
Typically, they're gonna benon-inventory items.
For each source of revenue oreach of those items that are
going to be pointing to thoseaccounts that you've set up.
(16:52):
So this will be, your, sourcesof revenue.
So if you're gonnadepartmentalize the sales or
just something as simple asthese were taxable and these
were non-taxable, because youhave to have that
differentiation on the salestransaction itself as to what
was taxable and what wasn't.
(17:12):
Payment methods you're gonna setup items for payment methods.
And then sales tax, is there's acaveat there about sales tax.
'cause that's what we're really,Dr that's what's really driving
the distinction of, doing thisinside of QuickBooks online
(17:34):
versus desktop.
'cause QuickBooks desktop doesactually have a payment method
or a payment item, and those aretreated.
And distinctly from QuickBooksOnline, where QuickBooks Online
does not have that type of itemwhen you specify that.
So that is a, unique distinctionbetween the two.
(17:56):
And that's one of the reasons,but you don't necessarily want
to do a daily sales summary ifyou're doing sales tax inside of
QuickBook online.
Rachel D (18:08):
Yeah.
Then when you're dealing withmulti-state though, it's, you
don't wanna use the sales tax,the center in QuickBooks Online
even'cause you, that's justit's, not sophisticated enough
for that.
Can I ask you a question though?
Are Okay?
Yeah.
So with regards to Lightspeed,'cause that's what we're talking
(18:29):
about.
Does Lightspeed specify that youneed to have the items.
Set up as non-inventory as suchin QuickBooks Online so that
it'll find the non-inventoryitem and then post it if you're
doing a sales receipt.
Do you have to have those itemsset up?
Dan DeLong (2) (18:50):
Yes.
Yeah, you do wanna set up thoseitems ahead of time?
'cause guess what?
Just, what's that?
Rachel D (18:56):
I was just gonna say, in this world of automation and
connectivity, I am really deepin that, and I'm working with an
app right now that you cannothave the item set up for
syncing.
It wants to create the item, anon-inventory item, but you
cannot have them set up already.
(19:19):
It's so funny because like inthese.
It with the differences of themapping and how things need to
be set up to get the data overto QuickBooks online.
They're so wildly different.
And so one of'em, you have tofollow this, these steps and set
up your items ahead of time soit can find the item.
(19:41):
Usually in the settings they'llbe, if it doesn't find the item,
it will create a new item andmost of them are like that.
But now I'm working in aninventory app where Zoho in that
you can't sink anything over ifthere's an item and
non-inventory item, it's gottabe all no items.
Dan DeLong (2) (20:04):
Interesting.
I know.
Yeah.
It sounds like Zoho a controlfreak.
It's I'm gonna do this my way.
Rachel D (20:11):
Yeah.
So it's, really interesting thatevery time I feel like I have a
workflow down, okay, create thecustomer, set up the desired
chart of accounts, set up theitems.
Oh, now all of a sudden now I'mworking on one where no items.
Dan DeLong (2) (20:28):
Yeah, The, all these different details and
nuances of the, apps thatintegrate and how they integrate
is certainly not universal.
Rachel D (20:39):
Yeah.
Yeah.
It's, wildly different
Dan DeLong (2) (20:43):
right now, if you are using inventory and you
want to track some of thesethings, these, you're gonna want
to create income accounts andnon-inventory items as well.
And those will match to matchthe, point of sale systems.
And then if you do purchases,you want those purchases coded
to inventory asset, even thoughinventory is not used.
(21:07):
For, this process.
And then you would do, periodicadjustments to get those
alignments of inventory valueinto QuickBooks.
You wouldn't necessarily useinventory items and track those
inventory items because theaccounting is gonna be all sorts
of differently handled.
(21:27):
And really that's the bigdistinction about this whole,
process is where's the inventorysource of truth typically that's
going to be in your point ofsale system or or somewhere else
other than inside of QuickBooks.
So you can, you just wantQuickBooks to mirror the
(21:48):
accounting value that whereveryou're tracking your inventory
in.
Yeah.
Do you have any thoughts about,to add to that?
Rachel D (21:58):
Yeah.
And this is really confusing.
I'm telling you like I encounterpeople every single day that And
my clients too, that they thinkthey need to track inventory in
both.
That's a, confusing thing that Irun into a lot, that they're
tracking their ups and downs ofquantities elsewhere and they
(22:20):
think that they need to alsotrack the ups and downs of, and
quantities in QBO and allthey're doing is like pulling
their hair out, going, I'm trI'm going up and down here and
I'm trying to go up and downhere.
The same thing.
No, we don't do it like that.
Ups and downs of the individualquantities in your inventory
(22:40):
system, whether that's Shopify,whether that's Lightspeed,
whether that's wherever,valuation only in QBO on the
balance sheet.
That's it.
We're not even using theinventory valuation.
We're not, or the inventorysummary report.
Nothing like that.
It is literally inventory isturned off.
We have a value of inventory onthe balance sheet.
(23:03):
That's it.
Period.
End of story.
You can, like you said, decreasethat inventory with a monthly
cogs entry or something.
If you wanna pull that from yoursystem, like if you're using
Katana or something, you can goand pull your monthly cost of
goods sold and post them.
I typically pull in systems thatwill push a cost of goods sold
entry with every point of sale.
(23:25):
'cause that's perpetualinventory.
But even still, all you're doingis with a, COGS entry, decrease
inventory, increase cogs alittle bit with every single
sale.
It's just a balance sheet thing.
That's it.
Dan DeLong (2) (23:41):
Yeah.
Now, now this slide is theAlice's restaurant.
Slides got circles and arrowsand, paragraphs on the back of
each one.
But, so I'm dating myself onthat reference for those that
may or may not have understoodthat.
But the, daily sales repeat, andthere's a link here to the
(24:02):
Intuit article to and we'll,cover that as, as well.
But you're gonna be creatingthat daily sales zero out tape
from the point of sale system,and then use as$0 sales receipt
to manually enter that intoQuickBook.
Now you're gonna be depositingit to the, deposit two is, is,
(24:28):
important because if you put itto o undeposited funds inside of
QuickBooks, you're gonna haveall these$0 sales receipts.
Sitting in positive funds, andthat's a waste, right?
So just put it to anotherclearing account or some other
non non undeposited fundsaccount so that when you record
(24:50):
these sales receipts, it doesn'tclog up your bank deposit
screen.
And then you'll want to usesales departments to track all
that you want to or sales items,those sales items to track the
differences that, that you want.
So you would enter in I had a,like a mailboxes, et cetera type
(25:13):
of type of client.
They had their own unique pointof sale system for, that, it was
a franchise.
And it did not integrate withwith QuickBooks Desktop.
He started at the time and thenhe didn't wanna pay for the
integration in when he didfinally go to QuickBooks Online.
But it also gave him the abilityto keep.
(25:37):
Track of the numbers.
He was very interested in thedays sales, what was going up
and going down.
So he had created all of theseitems for faxing and shipping
and packaging and gift card, ornot gift card, but greeting
cards.
He had those they have all sortsof little extra things inside of
that, the mailboxes themselves.
(26:00):
So he wanted to keep track ofall of the sales of those,
different little things.
He got it out of his point ofsale system.
So he would create those itemsand put'em into his daily sales
summary.
And then after you've got yoursales your overages, your
shortages, your gift cards, allthe things that you do want to
(26:21):
track, which increase the valueof this daily sales receipt,
then you would put paint thosepayment methods as negatives
onto the daily sales summary.
And that's why you wouldessentially be entering these
daily sales summaries as nothingas a$0 sales receipt, which
(26:42):
would then, do the accounting ofhere's what I sold, and then
here's the payments that Ireceived.
And those payments are thengonna go to unde positive funds
or wherever you need them to bedeposited so that the money
movement then happens.
And then we've got the, Intuitarticle linking here.
(27:06):
Let's let's ask our secondpolling question of do you use
daily sales summaries?
Yes.
I enter'cause a variety of ways.
You can enter them manually.
You enter them automaticallythrough an integration, maybe
through a utility import, or,you need to record the sales by
customer and you wouldn't dothat sort of thing.
(27:27):
Do you find Rachel that ismostly daily sales for.
For the clientele that you workwith?
Nope.
You're muted.
I can't hear you.
Oh.
(27:47):
We have the same problem asbefore.
Did you turn around?
What about now?
Rachel D (27:50):
Can you hear me?
Dan DeLong (2) (27:51):
There we go.
Rachel D (27:51):
There you're okay.
It's half and half.
I have people that I do bring inindividual sales receipts on
automation.
And like what I was explainingbefore, we have certain
situations which it'll createthe item based on the mapping
that I've set up in the originalsystem.
(28:13):
And then I have other situationswhere we have to have the items
created, mapped to where wewanna go, and it still brings it
over on individual salesreceipts.
I typically, when we're usingpoint of sale.
I typically have, I typicallyalways use a sales receipt.
I don't use an invoice because Idon't want it to hit undeposited
(28:37):
funds.
I want it to point to a specificclearing account because, like
for example, if my client'susing something like Stripe to
collect those payment methods, Iwanna point it to Stripe
Clearing because those payoutsthat are gonna come in through
Stripe, I wanna clear out thatclearing.
And a lot of times they havemore complexity.
(28:57):
They have some other, they'reusing QuickBooks payments also,
maybe with invoices they'resending out.
So I like to separate thoseclearings.
And for that reason I, am like,when you're talking about
clearing accounts, you'respeaking my language, but yeah
and then the other half thepeople, yeah, we do use a daily
(29:17):
sales summary.
Usually the, connector toolsthat I use will put it in a
journal entry.
So rather than pointing toproduct service items, we're
just pointing it specifically tothe accounts revenue and then
the clearing and then sales taxor something like that.
But I, we do still havesituations where we will
(29:41):
literally go in and maybe take amonth's data not a daily one,
but maybe for like super simpleclients we're doing, we'll take
a month's data and we'll postlike a month sales receipt that
way.
Dan DeLong (2) (29:55):
Yeah.
And, like you, I think a lot ofpeople are, it depends.
Yeah, right?
You don't always, you don'talways do this, entering
manually.
So yeah, I didn't put it in as amulti check box option.
But yeah, so it looks likeentering manually is is.
Majority that are doing that.
Rachel D (30:16):
Yeah.
and and it really, the mappingcan get complex once you do it,
you really develop the mind forit.
And then you can go in andfigure it out and, but yeah,
it's I understand it sometimescan be tedious.
All right,
Dan DeLong (2) (30:34):
This article here is and LinkedIn in the,
handouts.
This is actually a really goodrobust robust article, really
walking you through this veryprocess where it talks about
creating the customer for dailysales, setting up the accounts
for, daily sales.
So you're gonna have the, in theincome accounts, the clearing
(30:58):
accounts overages and shortagesfor your, cash drawer for those
cashiers with sticky fingers orclumsy fingers that drop a
quarter underneath a cash bar orsomething like that.
I'll set those.
And then setting up those itemsthat point to point, to point to
(31:20):
it, and then all of the extra,items and where they, go.
As I was reading these things,the, the check the check item,
I'm quite, I'm not quite surewhy it goes to the account of
check.
Dan DeLong (3) (31:39):
Doesn't seem right,
Dan DeLong (2) (31:40):
but I, think that would be, I think that
would be positive funds in here.
Somebody got copy, paste happy.
Yeah, because it's just checkcheck, across the, chart here.
But, unless you, have a,distinct, check depositing
process, right?
These are Mobile deposits orsomething like that.
(32:02):
But normally that would just goto un deposit funds and then you
would be putting this in as adaily sales template, putting in
the and then putting this as arecurring transaction, right?
So you would save this as amemorized transaction.
And then every day when you havethat, the, Z Out store close.
(32:27):
Tape or receipt or whatever itends up printing on.
You would then just enter in theamounts, just down the list,
right?
So this this this failed receiptshould be mirroring the exact
same format of your, Z out tape,so that you can just go down the
list of the amounts and, enterthose in.
(32:50):
So you start with a$0 salesreceipt that is, that has
nothing on it.
David has a template, and thenjust go into recurring
templates, use it, and then justenter the amounts, record it,
and you're done.
Right?
Rachel D (33:05):
And this is all supposing you, you're, you don't
have something that's automatingit for you, right?
Yeah.
Dan DeLong (2) (33:14):
This is, the entering the manually method.
Got it.
That, the 37% of our folks are,seeing that's what they're
doing.
And then you would go in andenter that and this I can make
this bigger.
Yes.
I, so this is the breakdown,right?
You've got your daily salesincome of 1,080.
(33:37):
You're on this on this screen.
And then the payment methods ofcash, check, visa, MasterCard,
American Express, discover, anykind of overages as negatives,
which zero that out.
Now they do mention here, and Ijust wanted to go back up here.
I saw it, somewhere because itwas talking about.
(33:59):
Sales tax.
Okay, maybe that's down, herelater.
So the next thing is thendepositing your daily sales.
All of these items of paymentmethods are gonna be linked to
wherever they need to go.
And that's gonna be passing thebaton to to the next step.
Whatever that workflow happensto be.
(34:21):
And then you're just gonna makethose deposits grouping your
credit cards together, takingout the fees, whatever it is
that that you wanna be able todo with that deposit sample.
Right where it's bringing in thecash check visa, MasterCard,
American Express, all in one tomake that lump deposit.
(34:43):
Maybe you don't go rushing downto the bank every day to deposit
your cash, right?
Cash is gonna accrue or build upinside the undeposited funds.
And then.
You take all of the cash, threedays worth of sales, an thousand
some dollars, then you lumpthose things together, make
(35:03):
those deposits to mirrorreality.
Now, okay, now where did it go?
Because I saw it earlier.
Let me make this a little easierto see for me.
Because it, it's somethingabout, okay, I'm just gonna find
it here about there.
(35:24):
It's okay.
Yeah.
It's a little blurb here.
Make sure you use your tax rateis set up properly, is this
little tiny thing here, right?
So by doing it this way you cansee that, and this is what Paul
prompted the whole topic here.
(35:45):
By doing it this way, we haveour taxable sales.
Of this first item, and then wehave negative items as,
non-taxable, right?
So to QuickBooks Online, itdoesn't know a diff the
difference between the cashcheck and Visa MasterCard as a
(36:06):
negative, as the daily salesincome line item above it,
right?
So to QuickBooks it isrecognizing this on in,
QuickBooks as a negative sale,right?
So because it cash is$327 as anegative and it's non-taxable.
(36:28):
When you run your sales taxreport, you have positives for
the, for the, 10 80, for thethousand dollars and 80, 80
cents.
But then you have thesenegatives as negative sales.
So that's what started thiswhole this whole conversation is
(36:49):
someone was having somechallenges because they were
coming in as sales receipts likethis from their subway
franchise, but then he was goingto remit the sales tax and ran
the sales tax report.
The gross sales said zero, for awhole month.
(37:10):
It was zero.
I think you're muted again.
Sorry.
I saw you say something.
Rachel D (37:16):
Sorry.
Yeah, no, it screws up yoursales tax report.
It's super frustrating.
Yeah.
Dan DeLong (2) (37:23):
So he had gross sales of 87,000 or taxable sales
of$87,000 and non-taxable salesof negative 87,000.
And thus giving him gross salesof nothing.
So that was that, that, that wasa challenge for him because he
was using, QuickBooks to helphim fill out the, sales tax
(37:44):
reports.
And those reports wereessentially useless in this
manner, right?
Yeah, because, because inQuickBooks it was recognizing
the ins and the outs of thesales receipt negative and a
positive sale, right?
Because these items, unlikeQuickBooks Desktop, they're not
(38:05):
specifically marked as paymentitems, right?
So it doesn't know thedifference between it and a
payment, right?
So it handles the, theaccounting rate.
But this is the, yeah.
But of this whole thing, whoop,where did it go?
So non-taxable sales ornon-sales items are sales items
(38:28):
to QuickBooks and the sales taxreports, are, a challenge.
And the other thing is you couldpotentially, so this$1,080
that's, here at the top, is asummary of all of the sales, for
(38:49):
that, day.
You, this may be 20 differenttransactions at varying
different dollar amounts whichare going to have sales tax
calculated at the time of thatsale, not at a grand total of 10
80.
So potentially by doing it thisway also.
(39:11):
And counting on QuickBooks torecalculate the sales tax, not
putting in your sales tax itemson the sales, trans sales
receipt itself.
It's going to potentiallyrecalculate your sales tax and
it's gonna base its calculationon$1,080, which may have some
(39:32):
fluctuations with routing.
So that's another potentialissue when it comes to doing it
this way and sales tax.
Rachel D (39:42):
Dan what's your, what's, what would you say then
to somebody that's this is, I Iam doing the bookkeeping for
somebody's franchise, or I am afranchise, small franchise
owner, and I am this is the waythat I've been taught.
This is the way I know how to doit, and I wanna put my daily
sales receipts in this way.
(40:03):
What would you suggest to them?
Dan DeLong (2) (40:06):
Yeah, so if you're using.
If you are using QuickBooks to,help you with the, sales tax
reporting side of things, then adaily sales summary is not the,
best way to handle that.
And, I would as it's a pain, asit would be not just one
transaction for the daily sales,it would be the invoice payment
(40:29):
rec avenue.
Because payments are, paymentsthey're treated as payments and
they don't have, the the,challenges that a negative sales
item that,
Rachel D (40:46):
Right.
So rather than a sales receipt,you'd have them use an invoice
in which there would be areceive payment associated with
it.
Dan DeLong (2) (40:57):
Now you still potentially could have that same
issue by summarizing your salesand sales tax recalculating.
But that's all gonna also comeout in the wash when you
actually do the filing.
Rachel D (41:09):
Yeah.
Dan DeLong (2) (41:10):
Because they are going to ask and that's gonna
recalculate as well.
Rachel D (41:14):
cause doing it that way, you don't, you, all you're
seeing on that invoice isincome,
Dan DeLong (2) (41:21):
right?
Yeah, exactly.
Which segues really nicely intohow Lightspeed point of sale
handles this.
And this was one of the thingsthat we've Matthew and I have
been talking about what we'regonna the direction that we're
gonna be heading.
The CUNY Power Hour to, isreally understanding the, things
(41:42):
that are really important forQuickBooks online in that,
ecosystem, because of theshallow end of the pool, the
functionality of QuickBooks.
You.
It's not designed.
QuickBooks online is notdesigned to be a point of sale
system.
Yeah.
So you often need to have otherthings that, that synchronize.
(42:05):
And, we want to get into, somedetailed analysis of how these
apps actually send data toquick, right?
So if you're using somethinglike Bookkeep with Lightspeed,
that's gonna be handledcompletely different than if
you're using Lightspeed's pointof sale and built in built in
(42:25):
integration.
So
Rachel D (42:27):
under, and that's not shows
Dan DeLong (2) (42:29):
up QuickBooks.
That's really what we want tounpack with some of these app
integrations moving forward.
Rachel D (42:38):
Yeah, and I was just gonna say, that's not to say
that you can't use a connectorwith a point of sale automation
tool.
And do both.
'cause you're only mapping onething from one and ma one thing
from the other.
So this is, I just have to say,this is why I love QuickBooks
online because like you said,the shallow end of the pool
(43:00):
there's just thesefunctionalities, but it's
engineered to work with all ofthis other stuff and instead of
doing the things in QuickBooksonline, we're now doing the
things elsewhere and justfunneling the data in there to
QBO and it the, capabilities areendless.
(43:22):
You can grab data from here andfrom there and put it all
together and it can get reallycomplex.
But the whole point is, that QBOcan support it and QBO can do
it.
So it's really, neat.
I love that part of it.
Dan DeLong (2) (43:35):
Yeah, and that's that's the, environment that
we're, in now, right?
It's, yeah.
Especially with something likeQuickBooks Enterprise.
For desktop, a lot of thingswere done stoop to nuts inside
of, QuickBooks.
(43:56):
Now we're with QuickBooks Onlineand some of the glass ceilings
that we're bumping into you haveto have this hodgepodge of
technology to integrate into,QuickBooks, and you're using
QuickBooks as the, foundation ofyour, finance and your
accounting.
(44:17):
But the way that informationcomes in is going to either
allow you to make usable reportsor not, depending on how that
information comes in.
The main thing that I wanted to,point out about, Lightspeed
Lightspeed has, taken a pagefrom, Intuit.
(44:37):
They have.
Acquired other companies andassimilated them into their
Rachel D (44:43):
yay,
Dan DeLong (2) (44:44):
into their ecosystem.
We
Rachel D (44:46):
love that.
Right?
Dan DeLong (2) (44:48):
So if you've had an, interaction or an experience
with, Lightspeed, there are avariety of different series of,
lights speeds.
Their flagship product right nowis called Xer, which is not the
light feed from 2, 3, 4 yearsago.
They have, that is the R series.
(45:09):
So just the, amount ofQuickBooks that are out there
can get, challenging.
The you might want to take alook at it again if you may have
had a, poor experience becausethey understood that it wasn't
the greatest thing and thenthey, went out, found another
(45:31):
point of sale system that doeswork a little better.
'cause when we talked with.
Before he talked aboutLightspeed then, and he was
using Cho go to integratebecause the integration didn't
do what he wanted it to do.
But to your point, you're, notbeholden to using only the
(45:52):
Lightspeed integration.
You could use a sales connectorlike book like bookkeeper or
sender or ility a lot of thoseother connectors or integrators
do allow for
Rachel D (46:07):
yeah, they allow for multiple payment methods so you
can use the, one of yourchoosing.
And I, my clients are veryparticular on the POS system
they wanna use because of therates.
And the, it really, there isflexibility for them to keep
using what they wanna use.
Dan DeLong (2) (46:27):
Just QuickBooks point of sale Lightspeed
specializes in hard goods.
So you know, things that areactually, available to tangible,
to hold and, whatnot.
Those are their, in theirindustries that they specialize
in.
I did hate the fact that theysaid the word seamless
(46:47):
integration.
I know you,
Rachel D (46:48):
you do hate that
Dan DeLong (2) (46:49):
that is a trigger word for me.
But, their, integration isactually pretty, good with the
exception of inventoryadjustments.
But we're not talking aboutthat.
But Lightspeed does allowmapping to QuickBooks Daily
sales summary items.
This just a screenshot here oftheir integration page.
(47:15):
So you have the dropdowns andthat will pull in the item
listing from, your QuickBooks.
So you can map to specific itemslisted here.
So that's one of the things withthe pre-work in, setting up
QuickBooks and Lightspeed, isthat you do have to set up those
items ahead of time, otherwiseyou won't see them to be able to
(47:36):
map them to this one here.
With the product types, thisdoes allow you to map Lightspeed
product types to QuickBooks,right?
So you, if you're, if you'vedepartmentalized your, your,
inventory inside of Lightspeed,you can set up those items.
So that you have if it'sclothing store, you've got
(47:57):
shirts and men's and pants andall those different types of
items.
You can map those independently.
Oh, that's awesome.
Rachel D (48:05):
Awesome.
Awesome, And then,
Dan DeLong (2) (48:08):
and then what Lightspeed does is it sends the
coffee of the gold to QuickBookson a daily basis as well.
It's one transaction, it's ajournal entry.
It's not split out like thatdepartment.
So just keep that in mind.
And it also sends purchaseorders, store credits, sales on
account all those things thatyou would be doing inside of the
(48:31):
point of sale system over toQuickBooks.
And it does it automatically,right?
And as soon as you close theregister, it creates that sales
transaction over in QuickBooks.
You don't have to go and clickon something that says.
Send to QuickBooks or anythinglike that.
As soon as you do the task thatyou're doing, whatever that is,
(48:52):
that's the trigger to get itover into QuickBooks.
And then it also allows formapping of specific sales tax
items, right?
So it does, so you don't havethat rounding or recalculation,
because when you point it to theright sales tax item or the
sales tax method inside ofQuickBooks, it's just going to
(49:16):
take the amount that wascollected and put that dollar
amount in there.
It's not gonna allow QuickBooksto recalculate.
And, potentially have thisrounding issue of pennies and
cents.
So it's daily sales summariesare created as invoices and the
payment methods are created ascustomer payments applied to
(49:39):
that invoice, right?
You're not gonna have thisproblem with with sales tax by
using the Lightspeed built inintegration.
And this is not something thatyou have to pay for extra,
right?
It's just one of the, paymentopt, or I'm sorry the, levels
of, QuickBooks.
If you have accountingintegration, you would just get
(50:02):
the, flavor of Lightspeed XSeries that, that allows you to
do that.
If you find that this is youneed your details or you need
something else, then you wouldpurchase the one that doesn't
have that, right?
So it's not something thatyou're and there's other things
that come in with that flavor ofLightspeed as well.
Rachel D (50:20):
Why do people have till discrepancies,
Dan DeLong (2) (50:24):
till discrepancies?
Rachel D (50:25):
It drives me crazy.
Dan DeLong (2) (50:30):
That requires a human to do things.
So humans make mistakes, whetherit's counting the money or
fraud.
Yeah.
Or dropping things.
I worked at Pizza, my, all, allthrough college.
I dropped coins all over theplace so that, that comes in at
(50:52):
the end of the day when you'resweeping, right?
Oh, there's where it went.
Rachel D (50:57):
All, I'm doing is exposing myself to be so very
anal.
Dan DeLong (2) (51:04):
All right.
They are offering a a promotionactually.
Ooh, very cool.
This month or three months ofthe service.
And one of the things that Ireally like about Lightspeed as
well is they reef they charge.
Their customers for animplementation.
They give five sessions oftraining for, to train the store
(51:26):
so you don't have to tell themhow to use all this stuff.
They then they break it down in,in five different topics of
sales and inventory managementand e-commerce and, those types
of things.
And then they charge them, Ithink it's$300, to do the,
(51:46):
implementation, but uponcompletion of those five
sessions, they get it back.
Oh.
And so that's
Dan DeLong (3) (51:53):
really cool.
They know
Dan DeLong (2) (51:54):
And they, realize that if they, if people
don't know how to use it,they're not gonna use it and
they're gonna, and they're gonnacancel.
I kind of wish QuickBooks woulddo this of Yeah.
Dan DeLong (3) (52:04):
Hey,
Dan DeLong (2) (52:04):
we'll charge you $500 to figure out how to train
you how to, use these things.
On demand sessions.
And then when you complete it,then you get that money back.
And then it, gets people alittle bit more familiar with
the product using it.
Now, one of the things I wannamention about these, sessions is
(52:29):
those people are very focused onusing Lightspeed and as they
should, right?
Like they, they know how to useLightspeed.
They don't know how it's gonnaall integrate and respond to,
QuickBooks.
Dan DeLong (3) (52:47):
Yeah.
Dan DeLong (2) (52:48):
I, first time that I did recommended this to a
client, I sat in on thosesessions so that I could be
available to help explain, andunderstand a little better,
right?
Rachel D (53:01):
Yeah.
That sometimes happens.
Dan DeLong (2) (53:03):
And if they are using something else.
Another point of sale system.
They will migrate the, datacustomers and vendors, and their
items into their Lightspeed toget it set up for them.
Rachel D (53:19):
Hey, Dan, quick question.
Do you know if you can useLightspeed within e-commerce
channels?
Dan DeLong (2) (53:25):
Yes.
It actually the, way that theythey explain it is they've had a
Shopify integration longer thanShopify has a, has had an
integration with its ownproduct.
Rachel D (53:39):
Because let me tell you.
The fact that Lightspeed canseparate by product type.
Product type in Shopify is avery big deal.
And those eco most e-commerceconnectors can only grab the
class and or location.
And so if it can grab somethinglike the product type, I haven't
(54:02):
seen anything else that can dothat.
I'm gonna, I'm gonna go in anddo some research on this because
if you can, map the Shopifyproduct type to its own product
service item, and thus its ownincome account, that's huge.
You can separate things on the pand l.
I have a client where Iliterally go in and do it
manually'cause I haven't foundanything that I can separate by
(54:25):
Shopify product type.
Dan DeLong (2) (54:27):
Yeah.
And another another point ofinterest is that every register
is it creates a, daily salessummer summary for each
register.
And e-commerce channels areconsidered a separate register
Yeah.
As well.
Yeah.
So when those e-commerce salescome in to to the Lightspeed
they will be sent as a separatecustomer
Rachel D (54:50):
Yeah.
Dan DeLong (2) (54:51):
Over, over into QuickBooks as well.
Rachel D (54:53):
That's very cool.
And really what, just to, what Imean is on the p and l, like for
your clients, it's so cool.
You can have like Shopify sales,but then you can have furniture
sales.
Hardware sales,
Dan DeLong (3) (55:09):
yeah.
Rachel D (55:09):
But wa wallpaper sales and, you typically can only do
that on the vertical, like bythe class.
So this, that's cool.
Exactly.
Dan DeLong (2) (55:20):
And, then as I said, so this is this is the
inside of.
Why is this?
Is, I updated my Mac, so nowit's asking me all sorts of
questions as well.
But this is the the QuickBooksapp settings inside of a, of
Lightspeed.
This is where you can just clickthe dropdown and find find the
(55:43):
mappings.
If you wanted to map the producttypes you would have to, I think
to your point if it's a Shopifyproduct type, you would have to
map those product types as wellinside of the, yeah, you'd have
to map
Rachel D (55:59):
them ahead of time.
But yeah, as long as
Dan DeLong (2) (56:01):
they're, as long as they're mirroring what you
have at Shopify, then of courseit's gonna send those things
over as, as you tell them to.
And then your expenseinformation, li any li
liabilities that you have giftcards.
Store credit those types ofthings that you wanna map
(56:21):
specifically to again, you justmake sure that those items are
set up in, in your QuickBooks tohandle the accounting, because
that's what Lightspeed is gonnabe using when it, sends it over.
There we are, right on time.
Oh, and I just wanted to mentionthat this all came up because of
(56:44):
a quick answer that, thatsomebody reached out to us over
at school of Bookkeeping.
So if you have questions, youwant to, get some support, you
can do that over at SchoolBookkeeping as well.
And maybe your topic is gonna befeatured on on a future QB Power
(57:04):
Hour.
So let's, real quick Noah, goahead and launch the last poll
question, which is, was thisinformation useful?
Did you learn something new?
Rachel, was it useful for you?
Rachel D (57:16):
Yes.
Oh my gosh.
I didn't even really I'mfamiliar with Lightspeed, but
really getting to see thedifferences of, what it can do.
Oh my gosh.
I'm very impressed because Ihaven't really looked at their
Yeah.
And this is settings.
Dan DeLong (2) (57:34):
Yeah.
There's no silver bullet for aone try, one size fits all
anymore.
Rachel D (57:39):
No, there's not.
Dan DeLong (2) (57:40):
And that's really what into my pain we
want.
And that's what we really wannaunpack, and, compare for these
workshops.
And the power Hour that we'redoing here is really getting
into the, how this data, as muchas they would say works with
(58:04):
QuickBooks.
And, integrates with QuickBooksin what way?
The biggest example is as.
Our friends at Bookkeeper we'veused bookkeeping before.
They will only bring intransactions as journaling,
right?
They do a really good job ofthat.
But if you are using somethinglike like sales tax or a
(58:26):
functionality that requires,QuickBooks to have its
functionality that isn't thebest solution to bringing ev,
bringing that data over, yeah,there are some things that it
will do really well, butunderstanding how that
information gets over, that'sreally things that, that Matthew
(58:46):
and I are gonna be focusing onwith QB Power Hour moving
forward.
Rachel, I really appreciate youat such short notice filling in
and coming in, and hopefully,the folks that that watched I
can't tell because my restartedin the middle.
Everything happen.
(59:09):
But we really appreciate you alljoining us here today on the QP
Power Hour next time on the,15th.
Fully expect not everybody to beshowing up here because that is
the tax deadline of April.
We'll be talking about someQuickBooks online updates or
QuickBooks ecosystem updates.
(59:30):
We'll be talking about the, tagmigration and the death of tags.
Rachel D (59:36):
Yeah, that's going away.
Dan DeLong (2) (59:39):
And we'll be fielding some questions out of
the out of the Facebook group.
So appreciate you joining ushere today, and we'll see you
next time on the QB Power Hour.
intro (2) (59:48):
Have a great day, everyone.
April Fools, everybody.
Rachel, where are you?
Alright, that fantastic.
You
Rachel D (00:46):
got me.
You got me.
Dan DeLong (2) (00:51):
Welcome everybody to a QB Power Hour and
I pulled up the wrong videointro video.
But thank you for joining ushere today.
Sorry.
Today is I think April Fools isbeing played on me.
I have a very horrible internet.
(01:13):
Sound was horrible right beforegoing live.
And of course now I've done somechallenging things with the
wrong intro video.
But here we are.
Today we're gonna be talkingabout daily sales summaries and,
unpacking the LightspeedQuickBooks integration, for
(01:33):
summarizing sales data in pointof sale from QuickBooks.
My name's Dan DeLong, owner ofDan with and school of
Bookkeeping.
I worked at Intuit for nearly 18years co-host in today, as well
as the workshop Wednesdays.
And the feature D the feature D.
(01:54):
Oh my God, I can't say it.
The feature, deep dive guest atthe unofficial Facebook
accountant podcast.
So thank you for joining us heretoday.
Now normally this would beMatthew joining us today, but
unfortunately he's not feelingwell, and he was, he sent me a
video he's I know it's April1st, and this is not an April
(02:16):
Fools joke because he, had onvideo, he had his hair all it's
9:00 AM on, his time.
So this was like very early inthe morning for him to be
sending a video, but playing thepart of Matthew today is Rachel
Doci.
Thank you for for, filling in onsuch short notice coming out of
(02:37):
the yoga.
And,
Rachel D (02:41):
I was literally coming out of the yoga room and I was
like, no problem.
And I ran home.
Dan DeLong (2) (02:46):
So for those that that don't know you, tell,
us a little bit about your job.
Rachel D (02:53):
Sure.
So in addition to co-hostingworkshop Wednesday with you,
where we always talk aboutsomething fun every week, my
firm is called Net Deposited andwe do all kinds of different
bookkeeping and accounting, butone of our focuses specifically
with what we're gonna talk abouttoday with, these aggregated
(03:18):
sales postings, which we do alot in e-commerce bookkeeping,
and we do a lot of that at netdeposited and not necessarily
just e-commerce, but even gosh,with everything it seems like
everybody's using a POS system.
So we do a lot of that at netdeposited and I'm very active in
the QuickBooks world and justhappy to be here.
Dan DeLong (2) (03:42):
All right.
Thanks again for filling in on,such short notice.
And we did a a daily salessummary workshop on the
workshop.
On the workshop Wednesday overat School Bookkeeping.
So yeah, we just did
Rachel D (03:55):
like the other week.
Dan DeLong (2) (03:56):
Yeah, so that was like a dress rehearsal for
the QB Power Hour, which alittle bit of information about
the QB Power Hour, just turningin for the first time.
It's every other Tuesday at 12noon.
We are available or for CPEcredit or we do have a channel
over at earmark to be able toget those CPE credit for for
(04:21):
accounting professionals.
We now have six, prior webinarsavailable there on the earmark.
Housekeeping.
We're gonna be talking about thetopic of, today.
So if you have any specificquestions about about the topic
please put them in the q and aso we can make sure that we can
(04:43):
capture those.
If you're watching on thestreaming platforms of YouTube
which, oh my gosh, my computerjust restarted.
I hate Mac.
I'm, sorry.
I hate Windows machine.
Rachel D (04:58):
That's why I use a Mac.
Dan DeLong (2) (05:00):
Yeah.
Yeah.
I was telling my son, Macs justdon't crash.
Yeah.
Out of the blue like Windowsmachines do.
So if you hear a jet enginethat's my machine restarting in
the background.
So if you have the some q and aspecific questions about what
(05:24):
the topic that we're talkingabout today, please put those in
the q&a.
If you have general commentsabout whether you prefer Mac or
windows, please put those in thecomments or the, and then of
course we have the, handoutavailable there.
Noah, if you can throw that,those links in the variety of
places that we need them to goso that we can do that.
(05:48):
'cause I would've done that onthe other machine that just
restarted.
So here we go.
We also have a QB power Hourstore for all your QB power
hours, swag needs.
Wireless chargers mugs,whatever.
(06:08):
So let's let's talk about what'son the agenda today.
Daily sales summaries is we'regonna unpack what they are, who
needs them and then do a littledemonstration of, doing them in
QuickBooks online.
And then we'll transition alittle bit into Lightspeed point
of sale and how they arehandling the daily sales
(06:29):
summaries.
Now, all of this came up becauseover at School Bookkeeping, we
have quick answers, featurewhich allows anyone, to, chat
with with us there.
And someone came in with a,challenge, because, they were
(06:50):
using a subway.
They, had a subway franchisethat they were working with.
And, subway had its own way tointegrate into QuickBooks
Online, and it was doing thatwith a daily sales summary.
And, very familiar with how thisall plays out with desktop and,
(07:13):
QuickBooks online.
But it, was integrating intoQuickBooks online and there's a,
snag.
And that's what we really wannaunpack here is, there's a, yeah.
But
Dan DeLong (3) (07:25):
When
Dan DeLong (2) (07:26):
it comes to doing daily sales summaries and
QuickBooks online and and we'lltalk about that as it relates to
Oh yeah.
Sales.
I think I
Rachel D (07:35):
remember, yeah.
It was the sales tax.
Dan DeLong (2) (07:37):
Yeah.
We'll, do that now.
Oh, crap.
Day is just a horribletechnology day.
But we did have some priorwebinars.
We do a, series here on, on theQB Power Hour called Niche
Nuances.
So I wanted to make sure thatthose were available in the
handouts.
(07:58):
We did convenience Stores withAlicia Kaz Pollock.
She does she actually literallywrote a book about, handling
convenience stores.
They will typically notintegrate with QuickBooks,
depending on what, what'ssoftware they're using or if
(08:19):
they're just using cashregister.
So that is that's a good, goodone to review.
And then we also had WilliamEnglish join us to talk about
retail.
I, was looking at this thumbnailtoo look how, young we looked.
Rachel D (08:36):
I know
Dan DeLong (2) (08:37):
with Michelle and myself there.
That was
Rachel D (08:39):
before I knew you too.
Yeah.
Dan DeLong (2) (08:42):
Wow.
I think that was amid amidst thethroes of Covid.
Alright.
All right.
So our first poll question justto get things started here.
What version of QuickBooks doyou support your clients with?
Has QuickBooks online or desktopor both?
Whether that is now Rachel you,primarily or solely use
(09:03):
QuickBooks Online.
Or desktop or what, does itYeah.
Rachel D (09:06):
I, used to use desktop a long time ago.
That's where I originallylearned desktop.
When I learned QuickBooks,sorry, I was in desktop way back
in the day.
But when I started my businessnet deposited, I really wanted
to exist in the cloud.
So that was 2019.
(09:26):
I completely learned QuickBooksonline and never looked back, so
I only used QuickBooks Online.
Dan DeLong (2) (09:35):
Gotcha.
And when we first started.
Working together.
You because you specialize inthe inventory and, retail or
e-commerce space.
Dan DeLong (3) (09:49):
Yeah.
Dan DeLong (2) (09:50):
Getting these daily sales summaries into
QuickBooks is, a key workflowYes.
In, your practice.
Rachel D (09:58):
It's, really key.
And with that, I remember Ididn't really know a lot of the
specifics of why'cause most ofmy clients sell stuff, even
though we do, supportservice-based businesses now
more than ever.
'cause inventory's driving menutty, but we do support stuff.
(10:21):
And there's so many differentnuances about dealing with
inventory and QuickBooks onlinethat I really just needed to
unravel every little thing andunderstand what it can do and
what it can't do.
So there's so many.
Different elements to thesesales summaries and why you
(10:42):
would need it versus when youwouldn't wanna use it.
And yeah, that, that's notreally an answer but, basically
there, there's just so much toknow that it's really, helpful
to zero in on one thing, focuson it, talk about it, understand
why it's important to do asummary this way versus that
(11:04):
way.
Gotcha.
Dan DeLong (2) (11:06):
Yeah, it looks like most of the folks are
agnostic to the QuickBooksplatform.
About 59% support, both but thenlike you, 31% solely with
QuickBooks online.
So let's talk a little bit aboutdaily sales summaries, what they
are, who needs them and justunpack that a little bit here.
(11:28):
But really what this boils downto is turning.
The, Z out store close at theend of the day into a, sales
transaction into, QuickBooks.
And that may be something thathappens automagically through
whatever application thatyou're, that you might be using
(11:49):
or entering it in, individuallyinside of, QuickBooks.
But yeah, and
Rachel D (11:55):
I'll say that like we, we talked about this method
specifically in the workshopWednesday, and using a sales
receipt entry form in QuickBooksonline is definitely the
traditional way.
There's, other ways to get salessummaries into QuickBooks
Online, but I just wanted to saythat because I thought that was
(12:16):
very confusing when I firststarted learning it this way.
There, there's journal entries,there's different ways to get it
in there, but I just wanted tosay that.
Dan DeLong (2) (12:27):
Yeah.
The the type of transaction thatyou're going to be entering in
these sales summaries iscertainly going to either
augment or pass the baton to,to, to the next workflow that
might be necessary, or, put alimitation on that, depending on
what what it is that youcompletely do inside of the,
(12:51):
QuickBooks Ecosystem.
So who really needs them?
Let's talk about some of the theindustries that, that will use
those.
Maybe the integration is notneeded or not functioning right?
So if they're using like aphysical cash register, right?
There's no way to set that ontop of your computer and get it
(13:12):
to go into QuickBook, right?
End of.
You're gonna zero out your yourcash sales or your cash register
for that day.
And it's going to give you, in,general what was sold, what's
taxable, what's not taxable whatand the payment methods that you
(13:34):
took throughout throughout theday on those cash registers.
So that will be one in reasonfor, using a daily sales summary
inside of QuickBooks.
The integration is just notthere.
Or if they, want to dodepartmental accounting, right?
So retail.
Convenience store e-commerce.
(13:55):
We talked about some of those,industries, they don't manage
inventory or sales data in, intwo redundant systems.
So they're not necessarilyneeding to track their inventory
comings and goings in aperpetual, action.
And that's very,
Rachel D (14:11):
very common that we wouldn't do that in QuickBooks
online.
Dan DeLong (2) (14:15):
Because as we've talked to ad nauseum on the
workshop, QuickBooks online is,great for inventory tracking if
it's you are a reseller ofgoods.
But not if you need to know muchmore of anything else about
those goods where it is landed,costs all those advanced
(14:37):
inventory functions.
So if they're not tracking thoseperpetual inventory, daily sales
summers that are, okay.
Or they're using QuickBooks for,category tracking of
Rachel D (14:49):
Yeah.
Dan DeLong (2) (14:50):
Again, those departmental things.
So there's a little bit ofpre-work when it comes to
setting up QuickBooks for, thedaily sales summary itself,
right?
So first is to create some kindof customer for your counter
sale, right?
So things that you can call itwhatever you want.
(15:11):
QuickBooks point of sale callthe counter tail, right?
But you can call that customerwhatever it's Right.
A, you can even do it byregister if you wanted to,
right?
Just creating a customer to puton the, sale transaction.
Yeah.
Rachel D (15:29):
And just like we, we do a lot of Shopify accounting
and bookkeeping, and I alwaysjust create Shopify customer and
that's if I'm bringing them inand using a sales receipt and, I
need to put a customer in thefield.
We just do Shopify customer.
Dan DeLong (2) (15:49):
Yeah.
And I saw in the like the q anda that somebody was asking for,
can we have a Power hour onShopify integration with qbo,
there's probably about 34different ways to bring in a
Shopify transaction.
There's one built in directlyinto QuickBooks with through
commerce to all of the otherones.
(16:10):
I saw another person's usingshow go.
And that was actually somethingthat William had mentioned on
the, prior power Hour.
But the next thing after you setup a customer is setting up your
desired chart of accounts.
How much detail or generalgenerality are you gonna need in
(16:32):
the chart of accounts, side ofthings.
So you just wanna set up, thosechart of accounts first, and
then set up items.
Typically, they're gonna benon-inventory items.
For each source of revenue oreach of those items that are
going to be pointing to thoseaccounts that you've set up.
(16:52):
So this will be, your, sourcesof revenue.
So if you're gonnadepartmentalize the sales or
just something as simple asthese were taxable and these
were non-taxable, because youhave to have that
differentiation on the salestransaction itself as to what
was taxable and what wasn't.
(17:12):
Payment methods you're gonna setup items for payment methods.
And then sales tax, is there's acaveat there about sales tax.
'cause that's what we're really,Dr that's what's really driving
the distinction of, doing thisinside of QuickBooks online
(17:34):
versus desktop.
'cause QuickBooks desktop doesactually have a payment method
or a payment item, and those aretreated.
And distinctly from QuickBooksOnline, where QuickBooks Online
does not have that type of itemwhen you specify that.
So that is a, unique distinctionbetween the two.
(17:56):
And that's one of the reasons,but you don't necessarily want
to do a daily sales summary ifyou're doing sales tax inside of
QuickBook online.
Rachel D (18:08):
Yeah.
Then when you're dealing withmulti-state though, it's, you
don't wanna use the sales tax,the center in QuickBooks Online
even'cause you, that's justit's, not sophisticated enough
for that.
Can I ask you a question though?
Are Okay?
Yeah.
So with regards to Lightspeed,'cause that's what we're talking
(18:29):
about.
Does Lightspeed specify that youneed to have the items.
Set up as non-inventory as suchin QuickBooks Online so that
it'll find the non-inventoryitem and then post it if you're
doing a sales receipt.
Do you have to have those itemsset up?
Dan DeLong (2) (18:50):
Yes.
Yeah, you do wanna set up thoseitems ahead of time?
'cause guess what?
Just, what's that?
Rachel D (18:56):
I was just gonna say, in this world of automation and
connectivity, I am really deepin that, and I'm working with an
app right now that you cannothave the item set up for
syncing.
It wants to create the item, anon-inventory item, but you
cannot have them set up already.
(19:19):
It's so funny because like inthese.
It with the differences of themapping and how things need to
be set up to get the data overto QuickBooks online.
They're so wildly different.
And so one of'em, you have tofollow this, these steps and set
up your items ahead of time soit can find the item.
(19:41):
Usually in the settings they'llbe, if it doesn't find the item,
it will create a new item andmost of them are like that.
But now I'm working in aninventory app where Zoho in that
you can't sink anything over ifthere's an item and
non-inventory item, it's gottabe all no items.
Dan DeLong (2) (20:04):
Interesting.
I know.
Yeah.
It sounds like Zoho a controlfreak.
It's I'm gonna do this my way.
Rachel D (20:11):
Yeah.
So it's, really interesting thatevery time I feel like I have a
workflow down, okay, create thecustomer, set up the desired
chart of accounts, set up theitems.
Oh, now all of a sudden now I'mworking on one where no items.
Dan DeLong (2) (20:28):
Yeah, The, all these different details and
nuances of the, apps thatintegrate and how they integrate
is certainly not universal.
Rachel D (20:39):
Yeah.
Yeah.
It's, wildly different
Dan DeLong (2) (20:43):
right now, if you are using inventory and you
want to track some of thesethings, these, you're gonna want
to create income accounts andnon-inventory items as well.
And those will match to matchthe, point of sale systems.
And then if you do purchases,you want those purchases coded
to inventory asset, even thoughinventory is not used.
(21:07):
For, this process.
And then you would do, periodicadjustments to get those
alignments of inventory valueinto QuickBooks.
You wouldn't necessarily useinventory items and track those
inventory items because theaccounting is gonna be all sorts
of differently handled.
(21:27):
And really that's the bigdistinction about this whole,
process is where's the inventorysource of truth typically that's
going to be in your point ofsale system or or somewhere else
other than inside of QuickBooks.
So you can, you just wantQuickBooks to mirror the
(21:48):
accounting value that whereveryou're tracking your inventory
in.
Yeah.
Do you have any thoughts about,to add to that?
Rachel D (21:58):
Yeah.
And this is really confusing.
I'm telling you like I encounterpeople every single day that And
my clients too, that they thinkthey need to track inventory in
both.
That's a, confusing thing that Irun into a lot, that they're
tracking their ups and downs ofquantities elsewhere and they
(22:20):
think that they need to alsotrack the ups and downs of, and
quantities in QBO and allthey're doing is like pulling
their hair out, going, I'm trI'm going up and down here and
I'm trying to go up and downhere.
The same thing.
No, we don't do it like that.
Ups and downs of the individualquantities in your inventory
(22:40):
system, whether that's Shopify,whether that's Lightspeed,
whether that's wherever,valuation only in QBO on the
balance sheet.
That's it.
We're not even using theinventory valuation.
We're not, or the inventorysummary report.
Nothing like that.
It is literally inventory isturned off.
We have a value of inventory onthe balance sheet.
(23:03):
That's it.
Period.
End of story.
You can, like you said, decreasethat inventory with a monthly
cogs entry or something.
If you wanna pull that from yoursystem, like if you're using
Katana or something, you can goand pull your monthly cost of
goods sold and post them.
I typically pull in systems thatwill push a cost of goods sold
entry with every point of sale.
(23:25):
'cause that's perpetualinventory.
But even still, all you're doingis with a, COGS entry, decrease
inventory, increase cogs alittle bit with every single
sale.
It's just a balance sheet thing.
That's it.
Dan DeLong (2) (23:41):
Yeah.
Now, now this slide is theAlice's restaurant.
Slides got circles and arrowsand, paragraphs on the back of
each one.
But, so I'm dating myself onthat reference for those that
may or may not have understoodthat.
But the, daily sales repeat, andthere's a link here to the
(24:02):
Intuit article to and we'll,cover that as, as well.
But you're gonna be creatingthat daily sales zero out tape
from the point of sale system,and then use as$0 sales receipt
to manually enter that intoQuickBook.
Now you're gonna be depositingit to the, deposit two is, is,
(24:28):
important because if you put itto o undeposited funds inside of
QuickBooks, you're gonna haveall these$0 sales receipts.
Sitting in positive funds, andthat's a waste, right?
So just put it to anotherclearing account or some other
non non undeposited fundsaccount so that when you record
(24:50):
these sales receipts, it doesn'tclog up your bank deposit
screen.
And then you'll want to usesales departments to track all
that you want to or sales items,those sales items to track the
differences that, that you want.
So you would enter in I had a,like a mailboxes, et cetera type
(25:13):
of type of client.
They had their own unique pointof sale system for, that, it was
a franchise.
And it did not integrate withwith QuickBooks Desktop.
He started at the time and thenhe didn't wanna pay for the
integration in when he didfinally go to QuickBooks Online.
But it also gave him the abilityto keep.
(25:37):
Track of the numbers.
He was very interested in thedays sales, what was going up
and going down.
So he had created all of theseitems for faxing and shipping
and packaging and gift card, ornot gift card, but greeting
cards.
He had those they have all sortsof little extra things inside of
that, the mailboxes themselves.
(26:00):
So he wanted to keep track ofall of the sales of those,
different little things.
He got it out of his point ofsale system.
So he would create those itemsand put'em into his daily sales
summary.
And then after you've got yoursales your overages, your
shortages, your gift cards, allthe things that you do want to
(26:21):
track, which increase the valueof this daily sales receipt,
then you would put paint thosepayment methods as negatives
onto the daily sales summary.
And that's why you wouldessentially be entering these
daily sales summaries as nothingas a$0 sales receipt, which
(26:42):
would then, do the accounting ofhere's what I sold, and then
here's the payments that Ireceived.
And those payments are thengonna go to unde positive funds
or wherever you need them to bedeposited so that the money
movement then happens.
And then we've got the, Intuitarticle linking here.
(27:06):
Let's let's ask our secondpolling question of do you use
daily sales summaries?
Yes.
I enter'cause a variety of ways.
You can enter them manually.
You enter them automaticallythrough an integration, maybe
through a utility import, or,you need to record the sales by
customer and you wouldn't dothat sort of thing.
(27:27):
Do you find Rachel that ismostly daily sales for.
For the clientele that you workwith?
Nope.
You're muted.
I can't hear you.
Oh.
(27:47):
We have the same problem asbefore.
Did you turn around?
What about now?
Rachel D (27:50):
Can you hear me?
Dan DeLong (2) (27:51):
There we go.
Rachel D (27:51):
There you're okay.
It's half and half.
I have people that I do bring inindividual sales receipts on
automation.
And like what I was explainingbefore, we have certain
situations which it'll createthe item based on the mapping
that I've set up in the originalsystem.
(28:13):
And then I have other situationswhere we have to have the items
created, mapped to where wewanna go, and it still brings it
over on individual salesreceipts.
I typically, when we're usingpoint of sale.
I typically have, I typicallyalways use a sales receipt.
I don't use an invoice because Idon't want it to hit undeposited
(28:37):
funds.
I want it to point to a specificclearing account because, like
for example, if my client'susing something like Stripe to
collect those payment methods, Iwanna point it to Stripe
Clearing because those payoutsthat are gonna come in through
Stripe, I wanna clear out thatclearing.
And a lot of times they havemore complexity.
(28:57):
They have some other, they'reusing QuickBooks payments also,
maybe with invoices they'resending out.
So I like to separate thoseclearings.
And for that reason I, am like,when you're talking about
clearing accounts, you'respeaking my language, but yeah
and then the other half thepeople, yeah, we do use a daily
(29:17):
sales summary.
Usually the, connector toolsthat I use will put it in a
journal entry.
So rather than pointing toproduct service items, we're
just pointing it specifically tothe accounts revenue and then
the clearing and then sales taxor something like that.
But I, we do still havesituations where we will
(29:41):
literally go in and maybe take amonth's data not a daily one,
but maybe for like super simpleclients we're doing, we'll take
a month's data and we'll postlike a month sales receipt that
way.
Dan DeLong (2) (29:55):
Yeah.
And, like you, I think a lot ofpeople are, it depends.
Yeah, right?
You don't always, you don'talways do this, entering
manually.
So yeah, I didn't put it in as amulti check box option.
But yeah, so it looks likeentering manually is is.
Majority that are doing that.
Rachel D (30:16):
Yeah.
and and it really, the mappingcan get complex once you do it,
you really develop the mind forit.
And then you can go in andfigure it out and, but yeah,
it's I understand it sometimescan be tedious.
All right,
Dan DeLong (2) (30:34):
This article here is and LinkedIn in the,
handouts.
This is actually a really goodrobust robust article, really
walking you through this veryprocess where it talks about
creating the customer for dailysales, setting up the accounts
for, daily sales.
So you're gonna have the, in theincome accounts, the clearing
(30:58):
accounts overages and shortagesfor your, cash drawer for those
cashiers with sticky fingers orclumsy fingers that drop a
quarter underneath a cash bar orsomething like that.
I'll set those.
And then setting up those itemsthat point to point, to point to
(31:20):
it, and then all of the extra,items and where they, go.
As I was reading these things,the, the check the check item,
I'm quite, I'm not quite surewhy it goes to the account of
check.
Dan DeLong (3) (31:39):
Doesn't seem right,
Dan DeLong (2) (31:40):
but I, think that would be, I think that
would be positive funds in here.
Somebody got copy, paste happy.
Yeah, because it's just checkcheck, across the, chart here.
But, unless you, have a,distinct, check depositing
process, right?
These are Mobile deposits orsomething like that.
(32:02):
But normally that would just goto un deposit funds and then you
would be putting this in as adaily sales template, putting in
the and then putting this as arecurring transaction, right?
So you would save this as amemorized transaction.
And then every day when you havethat, the, Z Out store close.
(32:27):
Tape or receipt or whatever itends up printing on.
You would then just enter in theamounts, just down the list,
right?
So this this this failed receiptshould be mirroring the exact
same format of your, Z out tape,so that you can just go down the
list of the amounts and, enterthose in.
(32:50):
So you start with a$0 salesreceipt that is, that has
nothing on it.
David has a template, and thenjust go into recurring
templates, use it, and then justenter the amounts, record it,
and you're done.
Right?
Rachel D (33:05):
And this is all supposing you, you're, you don't
have something that's automatingit for you, right?
Yeah.
Dan DeLong (2) (33:14):
This is, the entering the manually method.
Got it.
That, the 37% of our folks are,seeing that's what they're
doing.
And then you would go in andenter that and this I can make
this bigger.
Yes.
I, so this is the breakdown,right?
You've got your daily salesincome of 1,080.
(33:37):
You're on this on this screen.
And then the payment methods ofcash, check, visa, MasterCard,
American Express, discover, anykind of overages as negatives,
which zero that out.
Now they do mention here, and Ijust wanted to go back up here.
I saw it, somewhere because itwas talking about.
(33:59):
Sales tax.
Okay, maybe that's down, herelater.
So the next thing is thendepositing your daily sales.
All of these items of paymentmethods are gonna be linked to
wherever they need to go.
And that's gonna be passing thebaton to to the next step.
Whatever that workflow happensto be.
(34:21):
And then you're just gonna makethose deposits grouping your
credit cards together, takingout the fees, whatever it is
that that you wanna be able todo with that deposit sample.
Right where it's bringing in thecash check visa, MasterCard,
American Express, all in one tomake that lump deposit.
(34:43):
Maybe you don't go rushing downto the bank every day to deposit
your cash, right?
Cash is gonna accrue or build upinside the undeposited funds.
And then.
You take all of the cash, threedays worth of sales, an thousand
some dollars, then you lumpthose things together, make
(35:03):
those deposits to mirrorreality.
Now, okay, now where did it go?
Because I saw it earlier.
Let me make this a little easierto see for me.
Because it, it's somethingabout, okay, I'm just gonna find
it here about there.
(35:24):
It's okay.
Yeah.
It's a little blurb here.
Make sure you use your tax rateis set up properly, is this
little tiny thing here, right?
So by doing it this way you cansee that, and this is what Paul
prompted the whole topic here.
(35:45):
By doing it this way, we haveour taxable sales.
Of this first item, and then wehave negative items as,
non-taxable, right?
So to QuickBooks Online, itdoesn't know a diff the
difference between the cashcheck and Visa MasterCard as a
(36:06):
negative, as the daily salesincome line item above it,
right?
So to QuickBooks it isrecognizing this on in,
QuickBooks as a negative sale,right?
So because it cash is$327 as anegative and it's non-taxable.
(36:28):
When you run your sales taxreport, you have positives for
the, for the, 10 80, for thethousand dollars and 80, 80
cents.
But then you have thesenegatives as negative sales.
So that's what started thiswhole this whole conversation is
(36:49):
someone was having somechallenges because they were
coming in as sales receipts likethis from their subway
franchise, but then he was goingto remit the sales tax and ran
the sales tax report.
The gross sales said zero, for awhole month.
(37:10):
It was zero.
I think you're muted again.
Sorry.
I saw you say something.
Rachel D (37:16):
Sorry.
Yeah, no, it screws up yoursales tax report.
It's super frustrating.
Yeah.
Dan DeLong (2) (37:23):
So he had gross sales of 87,000 or taxable sales
of$87,000 and non-taxable salesof negative 87,000.
And thus giving him gross salesof nothing.
So that was that, that, that wasa challenge for him because he
was using, QuickBooks to helphim fill out the, sales tax
(37:44):
reports.
And those reports wereessentially useless in this
manner, right?
Yeah, because, because inQuickBooks it was recognizing
the ins and the outs of thesales receipt negative and a
positive sale, right?
Because these items, unlikeQuickBooks Desktop, they're not
(38:05):
specifically marked as paymentitems, right?
So it doesn't know thedifference between it and a
payment, right?
So it handles the, theaccounting rate.
But this is the, yeah.
But of this whole thing, whoop,where did it go?
So non-taxable sales ornon-sales items are sales items
(38:28):
to QuickBooks and the sales taxreports, are, a challenge.
And the other thing is you couldpotentially, so this$1,080
that's, here at the top, is asummary of all of the sales, for
(38:49):
that, day.
You, this may be 20 differenttransactions at varying
different dollar amounts whichare going to have sales tax
calculated at the time of thatsale, not at a grand total of 10
80.
So potentially by doing it thisway also.
(39:11):
And counting on QuickBooks torecalculate the sales tax, not
putting in your sales tax itemson the sales, trans sales
receipt itself.
It's going to potentiallyrecalculate your sales tax and
it's gonna base its calculationon$1,080, which may have some
(39:32):
fluctuations with routing.
So that's another potentialissue when it comes to doing it
this way and sales tax.
Rachel D (39:42):
Dan what's your, what's, what would you say then
to somebody that's this is, I Iam doing the bookkeeping for
somebody's franchise, or I am afranchise, small franchise
owner, and I am this is the waythat I've been taught.
This is the way I know how to doit, and I wanna put my daily
sales receipts in this way.
(40:03):
What would you suggest to them?
Dan DeLong (2) (40:06):
Yeah, so if you're using.
If you are using QuickBooks to,help you with the, sales tax
reporting side of things, then adaily sales summary is not the,
best way to handle that.
And, I would as it's a pain, asit would be not just one
transaction for the daily sales,it would be the invoice payment
(40:29):
rec avenue.
Because payments are, paymentsthey're treated as payments and
they don't have, the the,challenges that a negative sales
item that,
Rachel D (40:46):
Right.
So rather than a sales receipt,you'd have them use an invoice
in which there would be areceive payment associated with
it.
Dan DeLong (2) (40:57):
Now you still potentially could have that same
issue by summarizing your salesand sales tax recalculating.
But that's all gonna also comeout in the wash when you
actually do the filing.
Rachel D (41:09):
Yeah.
Dan DeLong (2) (41:10):
Because they are going to ask and that's gonna
recalculate as well.
Rachel D (41:14):
cause doing it that way, you don't, you, all you're
seeing on that invoice isincome,
Dan DeLong (2) (41:21):
right?
Yeah, exactly.
Which segues really nicely intohow Lightspeed point of sale
handles this.
And this was one of the thingsthat we've Matthew and I have
been talking about what we'regonna the direction that we're
gonna be heading.
The CUNY Power Hour to, isreally understanding the, things
(41:42):
that are really important forQuickBooks online in that,
ecosystem, because of theshallow end of the pool, the
functionality of QuickBooks.
You.
It's not designed.
QuickBooks online is notdesigned to be a point of sale
system.
Yeah.
So you often need to have otherthings that, that synchronize.
(42:05):
And, we want to get into, somedetailed analysis of how these
apps actually send data toquick, right?
So if you're using somethinglike Bookkeep with Lightspeed,
that's gonna be handledcompletely different than if
you're using Lightspeed's pointof sale and built in built in
(42:25):
integration.
So
Rachel D (42:27):
under, and that's not shows
Dan DeLong (2) (42:29):
up QuickBooks.
That's really what we want tounpack with some of these app
integrations moving forward.
Rachel D (42:38):
Yeah, and I was just gonna say, that's not to say
that you can't use a connectorwith a point of sale automation
tool.
And do both.
'cause you're only mapping onething from one and ma one thing
from the other.
So this is, I just have to say,this is why I love QuickBooks
online because like you said,the shallow end of the pool
(43:00):
there's just thesefunctionalities, but it's
engineered to work with all ofthis other stuff and instead of
doing the things in QuickBooksonline, we're now doing the
things elsewhere and justfunneling the data in there to
QBO and it the, capabilities areendless.
(43:22):
You can grab data from here andfrom there and put it all
together and it can get reallycomplex.
But the whole point is, that QBOcan support it and QBO can do
it.
So it's really, neat.
I love that part of it.
Dan DeLong (2) (43:35):
Yeah, and that's that's the, environment that
we're, in now, right?
It's, yeah.
Especially with something likeQuickBooks Enterprise.
For desktop, a lot of thingswere done stoop to nuts inside
of, QuickBooks.
(43:56):
Now we're with QuickBooks Onlineand some of the glass ceilings
that we're bumping into you haveto have this hodgepodge of
technology to integrate into,QuickBooks, and you're using
QuickBooks as the, foundation ofyour, finance and your
accounting.
(44:17):
But the way that informationcomes in is going to either
allow you to make usable reportsor not, depending on how that
information comes in.
The main thing that I wanted to,point out about, Lightspeed
Lightspeed has, taken a pagefrom, Intuit.
(44:37):
They have.
Acquired other companies andassimilated them into their
Rachel D (44:43):
yay,
Dan DeLong (2) (44:44):
into their ecosystem.
We
Rachel D (44:46):
love that.
Right?
Dan DeLong (2) (44:48):
So if you've had an, interaction or an experience
with, Lightspeed, there are avariety of different series of,
lights speeds.
Their flagship product right nowis called Xer, which is not the
light feed from 2, 3, 4 yearsago.
They have, that is the R series.
(45:09):
So just the, amount ofQuickBooks that are out there
can get, challenging.
The you might want to take alook at it again if you may have
had a, poor experience becausethey understood that it wasn't
the greatest thing and thenthey, went out, found another
(45:31):
point of sale system that doeswork a little better.
'cause when we talked with.
Before he talked aboutLightspeed then, and he was
using Cho go to integratebecause the integration didn't
do what he wanted it to do.
But to your point, you're, notbeholden to using only the
(45:52):
Lightspeed integration.
You could use a sales connectorlike book like bookkeeper or
sender or ility a lot of thoseother connectors or integrators
do allow for
Rachel D (46:07):
yeah, they allow for multiple payment methods so you
can use the, one of yourchoosing.
And I, my clients are veryparticular on the POS system
they wanna use because of therates.
And the, it really, there isflexibility for them to keep
using what they wanna use.
Dan DeLong (2) (46:27):
Just QuickBooks point of sale Lightspeed
specializes in hard goods.
So you know, things that areactually, available to tangible,
to hold and, whatnot.
Those are their, in theirindustries that they specialize
in.
I did hate the fact that theysaid the word seamless
(46:47):
integration.
I know you,
Rachel D (46:48):
you do hate that
Dan DeLong (2) (46:49):
that is a trigger word for me.
But, their, integration isactually pretty, good with the
exception of inventoryadjustments.
But we're not talking aboutthat.
But Lightspeed does allowmapping to QuickBooks Daily
sales summary items.
This just a screenshot here oftheir integration page.
(47:15):
So you have the dropdowns andthat will pull in the item
listing from, your QuickBooks.
So you can map to specific itemslisted here.
So that's one of the things withthe pre-work in, setting up
QuickBooks and Lightspeed, isthat you do have to set up those
items ahead of time, otherwiseyou won't see them to be able to
(47:36):
map them to this one here.
With the product types, thisdoes allow you to map Lightspeed
product types to QuickBooks,right?
So you, if you're, if you'vedepartmentalized your, your,
inventory inside of Lightspeed,you can set up those items.
So that you have if it'sclothing store, you've got
(47:57):
shirts and men's and pants andall those different types of
items.
You can map those independently.
Oh, that's awesome.
Rachel D (48:05):
Awesome.
Awesome, And then,
Dan DeLong (2) (48:08):
and then what Lightspeed does is it sends the
coffee of the gold to QuickBookson a daily basis as well.
It's one transaction, it's ajournal entry.
It's not split out like thatdepartment.
So just keep that in mind.
And it also sends purchaseorders, store credits, sales on
account all those things thatyou would be doing inside of the
(48:31):
point of sale system over toQuickBooks.
And it does it automatically,right?
And as soon as you close theregister, it creates that sales
transaction over in QuickBooks.
You don't have to go and clickon something that says.
Send to QuickBooks or anythinglike that.
As soon as you do the task thatyou're doing, whatever that is,
(48:52):
that's the trigger to get itover into QuickBooks.
And then it also allows formapping of specific sales tax
items, right?
So it does, so you don't havethat rounding or recalculation,
because when you point it to theright sales tax item or the
sales tax method inside ofQuickBooks, it's just going to
(49:16):
take the amount that wascollected and put that dollar
amount in there.
It's not gonna allow QuickBooksto recalculate.
And, potentially have thisrounding issue of pennies and
cents.
So it's daily sales summariesare created as invoices and the
payment methods are created ascustomer payments applied to
(49:39):
that invoice, right?
You're not gonna have thisproblem with with sales tax by
using the Lightspeed built inintegration.
And this is not something thatyou have to pay for extra,
right?
It's just one of the, paymentopt, or I'm sorry the, levels
of, QuickBooks.
If you have accountingintegration, you would just get
(50:02):
the, flavor of Lightspeed XSeries that, that allows you to
do that.
If you find that this is youneed your details or you need
something else, then you wouldpurchase the one that doesn't
have that, right?
So it's not something thatyou're and there's other things
that come in with that flavor ofLightspeed as well.
Rachel D (50:20):
Why do people have till discrepancies,
Dan DeLong (2) (50:24):
till discrepancies?
Rachel D (50:25):
It drives me crazy.
Dan DeLong (2) (50:30):
That requires a human to do things.
So humans make mistakes, whetherit's counting the money or
fraud.
Yeah.
Or dropping things.
I worked at Pizza, my, all, allthrough college.
I dropped coins all over theplace so that, that comes in at
(50:52):
the end of the day when you'resweeping, right?
Oh, there's where it went.
Rachel D (50:57):
All, I'm doing is exposing myself to be so very
anal.
Dan DeLong (2) (51:04):
All right.
They are offering a a promotionactually.
Ooh, very cool.
This month or three months ofthe service.
And one of the things that Ireally like about Lightspeed as
well is they reef they charge.
Their customers for animplementation.
They give five sessions oftraining for, to train the store
(51:26):
so you don't have to tell themhow to use all this stuff.
They then they break it down in,in five different topics of
sales and inventory managementand e-commerce and, those types
of things.
And then they charge them, Ithink it's$300, to do the,
(51:46):
implementation, but uponcompletion of those five
sessions, they get it back.
Oh.
And so that's
Dan DeLong (3) (51:53):
really cool.
They know
Dan DeLong (2) (51:54):
And they, realize that if they, if people
don't know how to use it,they're not gonna use it and
they're gonna, and they're gonnacancel.
I kind of wish QuickBooks woulddo this of Yeah.
Dan DeLong (3) (52:04):
Hey,
Dan DeLong (2) (52:04):
we'll charge you $500 to figure out how to train
you how to, use these things.
On demand sessions.
And then when you complete it,then you get that money back.
And then it, gets people alittle bit more familiar with
the product using it.
Now, one of the things I wannamention about these, sessions is
(52:29):
those people are very focused onusing Lightspeed and as they
should, right?
Like they, they know how to useLightspeed.
They don't know how it's gonnaall integrate and respond to,
QuickBooks.
Dan DeLong (3) (52:47):
Yeah.
Dan DeLong (2) (52:48):
I, first time that I did recommended this to a
client, I sat in on thosesessions so that I could be
available to help explain, andunderstand a little better,
right?
Rachel D (53:01):
Yeah.
That sometimes happens.
Dan DeLong (2) (53:03):
And if they are using something else.
Another point of sale system.
They will migrate the, datacustomers and vendors, and their
items into their Lightspeed toget it set up for them.
Rachel D (53:19):
Hey, Dan, quick question.
Do you know if you can useLightspeed within e-commerce
channels?
Dan DeLong (2) (53:25):
Yes.
It actually the, way that theythey explain it is they've had a
Shopify integration longer thanShopify has a, has had an
integration with its ownproduct.
Rachel D (53:39):
Because let me tell you.
The fact that Lightspeed canseparate by product type.
Product type in Shopify is avery big deal.
And those eco most e-commerceconnectors can only grab the
class and or location.
And so if it can grab somethinglike the product type, I haven't
(54:02):
seen anything else that can dothat.
I'm gonna, I'm gonna go in anddo some research on this because
if you can, map the Shopifyproduct type to its own product
service item, and thus its ownincome account, that's huge.
You can separate things on the pand l.
I have a client where Iliterally go in and do it
manually'cause I haven't foundanything that I can separate by
(54:25):
Shopify product type.
Dan DeLong (2) (54:27):
Yeah.
And another another point ofinterest is that every register
is it creates a, daily salessummer summary for each
register.
And e-commerce channels areconsidered a separate register
Yeah.
As well.
Yeah.
So when those e-commerce salescome in to to the Lightspeed
they will be sent as a separatecustomer
Rachel D (54:50):
Yeah.
Dan DeLong (2) (54:51):
Over, over into QuickBooks as well.
Rachel D (54:53):
That's very cool.
And really what, just to, what Imean is on the p and l, like for
your clients, it's so cool.
You can have like Shopify sales,but then you can have furniture
sales.
Hardware sales,
Dan DeLong (3) (55:09):
yeah.
Rachel D (55:09):
But wa wallpaper sales and, you typically can only do
that on the vertical, like bythe class.
So this, that's cool.
Exactly.
Dan DeLong (2) (55:20):
And, then as I said, so this is this is the
inside of.
Why is this?
Is, I updated my Mac, so nowit's asking me all sorts of
questions as well.
But this is the the QuickBooksapp settings inside of a, of
Lightspeed.
This is where you can just clickthe dropdown and find find the
(55:43):
mappings.
If you wanted to map the producttypes you would have to, I think
to your point if it's a Shopifyproduct type, you would have to
map those product types as wellinside of the, yeah, you'd have
to map
Rachel D (55:59):
them ahead of time.
But yeah, as long as
Dan DeLong (2) (56:01):
they're, as long as they're mirroring what you
have at Shopify, then of courseit's gonna send those things
over as, as you tell them to.
And then your expenseinformation, li any li
liabilities that you have giftcards.
Store credit those types ofthings that you wanna map
(56:21):
specifically to again, you justmake sure that those items are
set up in, in your QuickBooks tohandle the accounting, because
that's what Lightspeed is gonnabe using when it, sends it over.
There we are, right on time.
Oh, and I just wanted to mentionthat this all came up because of
(56:44):
a quick answer that, thatsomebody reached out to us over
at school of Bookkeeping.
So if you have questions, youwant to, get some support, you
can do that over at SchoolBookkeeping as well.
And maybe your topic is gonna befeatured on on a future QB Power
(57:04):
Hour.
So let's, real quick Noah, goahead and launch the last poll
question, which is, was thisinformation useful?
Did you learn something new?
Rachel, was it useful for you?
Rachel D (57:16):
Yes.
Oh my gosh.
I didn't even really I'mfamiliar with Lightspeed, but
really getting to see thedifferences of, what it can do.
Oh my gosh.
I'm very impressed because Ihaven't really looked at their
Yeah.
And this is settings.
Dan DeLong (2) (57:34):
Yeah.
There's no silver bullet for aone try, one size fits all
anymore.
Rachel D (57:39):
No, there's not.
Dan DeLong (2) (57:40):
And that's really what into my pain we
want.
And that's what we really wannaunpack, and, compare for these
workshops.
And the power Hour that we'redoing here is really getting
into the, how this data, as muchas they would say works with
(58:04):
QuickBooks.
And, integrates with QuickBooksin what way?
The biggest example is as.
Our friends at Bookkeeper we'veused bookkeeping before.
They will only bring intransactions as journaling,
right?
They do a really good job ofthat.
But if you are using somethinglike like sales tax or a
(58:26):
functionality that requires,QuickBooks to have its
functionality that isn't thebest solution to bringing ev,
bringing that data over, yeah,there are some things that it
will do really well, butunderstanding how that
information gets over, that'sreally things that, that Matthew
(58:46):
and I are gonna be focusing onwith QB Power Hour moving
forward.
Rachel, I really appreciate youat such short notice filling in
and coming in, and hopefully,the folks that that watched I
can't tell because my restartedin the middle.
Everything happen.
(59:09):
But we really appreciate you alljoining us here today on the QP
Power Hour next time on the,15th.
Fully expect not everybody to beshowing up here because that is
the tax deadline of April.
We'll be talking about someQuickBooks online updates or
QuickBooks ecosystem updates.
(59:30):
We'll be talking about the, tagmigration and the death of tags.
Rachel D (59:36):
Yeah, that's going away.
Dan DeLong (2) (59:39):
And we'll be fielding some questions out of
the out of the Facebook group.
So appreciate you joining ushere today, and we'll see you
next time on the QB Power Hour.
intro (2) (59:48):
Have a great day, everyone.
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