Gross Profit vs Net Profit: What’s the Difference?
Whether you’re a small business owner or professional accountant, you’ll probably be hearing the terms “gross profit” and ” net profit” quite frequently. But these terms can undoubtedly be confusing, especially for newcomers. So if you’re struggling to grasp the concept the concept of gross profit and net profit, keep reading to learn more about these terms and their unique characteristics.
Gross profit is essentially the total amount revenue that’s left over after a business deducts its direct operating expenses used to generate the profit. Gross profit margin is expressed as a percentage of the revenue. For example, if your business earns $20,000 in gross profits and the total revenue (including expenses) was $40,000, your gross profit margin would be 50% — $40,000 divided by $20,000 is 50%. Many businesses use gross profit margin as a measurement of its overall profitability.
Now that you know the basics of gross profit margin, let’s discuss net profit. Net profit is essentially the amount of revenue that’s left over after accounting for overhead. Much like gross profit, it too has a “margin” that’s expressed as a percentage. Net profit margin is the net profit expressed as a percentage of the revenue. Using the same example cited about, a net profit of $10,000 with $20,000 revenue would be 50%.
So, should you pay more attention to gross profit or net profit? Rather than focusing your attention on just one of these metrics, you should analyze them both. Gross profit margin provides a better understanding of how much profit your business makes after accounting for direct operating expenses, whereas net profit margin reveals a similar understanding of the revenue generated after accounting for overhead.
Business owners should carefully monitor their gross profit margin and net profit margin, as this information could prove useful when applying for a loan or other forms of credit. Lenders want to know that businesses can repay the loan, so they check for things like gross profit margin and net profit margin. Failure to monitor this information with your business could prevent you from obtaining a loan. The bottom line is that business owners should constantly analyze their gross profit margin and net profit margin.
Of course, gross profit and net profit are just two of the many accounting terms that you’ll hear when running a small business and/or performing bookkeeping tasks.
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How to Email an Invoice in Quickbooks?
Businesses of all shapes and sizes use invoices as part of their day-to-day operations. If you run a business that performs a service for its customer — instead of selling a physical product — chances are you use them. Perhaps you first perform the service, and then send the customer an invoice asking for payment. This is an all-too-common format on which modern-day businesses operate. And while it’s more common among service providers, even businesses that sell physical products may use invoices.
Assuming you use the Quickbooks accounting software, you can actually create and send invoices using email. Emailing customers their invoice offers several benefits: it’s faster, more convenient, and it doesn’t require paper or stationary. But if you’re new to Quickbooks, you might be wondering how exactly to email an invoice. Don’t worry, because we’re going to walk you through the steps in this blog post.
There are two different ways to email an invoice, one of which involves using Quickbooks’ built-in email service. Go ahead and log into your Quickbooks account and open the invoice you wish to send. From here, click the drop-down menu > Send > Email Invoice. You may now enter the recipient of the invoice. Feel free to include multiple recipients using the CC or BCC fields, separating the recipients’ addresses using either a comma or semi-colon. When you are finished, click “Send Now” to send the invoice immediately, or you can click “Send Later” to send it at a later time.
Alternatively, you can email invoices using an outside service like Outlook or Outlook Express. To do this, go back and open the invoice you wish to send, followed by Send > Email Invoice. Assuming your preferred email program is set to default, this should automatically open your email program, in which case you can follow the instructions to send it.
Keep in mind that most users will choose the option to send their invoices now instead of later. The only time when you really want to send an invoice email later is when it involves other documents. If you want to send an invoice and other documents to a particular customer, for instance, it’s probably best to choose the “Send Later” option. This will allow you to prepare all of the documents for the customer, bundling them all together into a single, convenient message.
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Quickbooks: How to Find a Deleted Invoice
It’s bound to happen sooner or later: you delete an invoice in Quickbooks, only to realize that you need it later. Fear not, as there’s actually a simple and relatively easy way to retrieve deleted invoices. It involves the use of an “audit trail,” which is something that we’re going to discuss more of in today’s blog post.
There are dozens of reasons for deleting an invoice. Maybe it’s several years old and taking up space, or perhaps the customer information is wrong. Regardless, it’s not uncommon for business owners and accountants to delete their old invoices. But if you delete an invoice, you should make sure you no longer need it. In the event that you need to access a deleted invoice, follow these steps to retrieve it.
To retrieve a deleted invoice, you’ll first need to log into your Quickbooks account. Once logged in, run the Voided/Deleted Transaction report under Reports > Accountant. This should bring up details about the invoice, including all of its respective information. Feel free to add more columns of information as needed.
It’s important to note that you cannot technically restore the deleted invoice. When you delete an invoice in Quickbooks, it’s gone for good. There is no option to restore it back to its original, working order. That doesn’t necessarily mean that you can no longer retrieve it, however. Assuming you followed the steps mentioned above, you can still print out the invoice for reference purposes. And if you wish to continue using the invoice, simply use the information from your previous invoice to create a new one. As long as the details on both invoices are the same, it should function in the same manner.
While you’re accessing this area of Quickbooks, you may notice an audit trail report. Basically, this is a report that allows users to filter according to number or date. If you need to find a specific transaction, simply search for its respective date range in the audit trail report. The audit trail report is a highly useful tool in Quickbooks that can pinpoint specific transactions and invoices.
Hopefully, this will give you a better idea on how to find a deleted invoice in Quickbooks. As mentioned above, you cannot restore a deleted invoice. Rather, you’ll have to retrieve the information from it and then use this information to create a new one.
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Quickbooks: How to Edit a Memorized Transaction
It’s not uncommon for business owners to bill customers and clients the same, fixed amount on a regular basis. If you sell a membership, for instance, the customer will likely pay the same amount on either a monthly or annual basis. There are a few ways to handle recurring transactions such as this: you can manually create the invoice by hand, or you can “memorize” it using the Quickbooks accounting software. Obviously the latter is the better choice, but what happens if you need to change the details of a memorized transaction?
How to Memorize a Transaction
Let’s first go over the basics of how to memorize a transaction, as this is something that many Quickbooks users are unfamiliar with. After logging into your account, go ahead and enter the transaction as a new transaction. Rather than clicking OK or Next, however, you should click Edit > Memorize.
From here, you’ll be asked to enter a name for the memorized transaction. It’s recommended that you give the transaction a relevant, meaningful name. This will make it easier to find the transaction in the future if needed. You can also add information to the Memorize Transaction window. When finished, click OK > Save & Close. Congratulations, you’ve just memorized a transaction to your Quickbooks account!
It’s important to note that you can also use a memorized transaction that is not automatically entered. This done by choosing Lists > Memorized Transactions > double-click the preferred memorized transaction > many any changes (if needed) > Save & Close. If you wish to use a different memorized transaction that is not automatically entered, click Save & Next instead of Save & Close.
How to Edit a Memorized Transaction
Now that you know a little bit about memorized transactions and how to create them, you might be wondering how to edit an existing memorized transaction in your Quickbooks account. The good news is that it’s actually easier that most users realize. To edit a memorized transaction, log into Quickbooks and choose Lists > Memorized Transactions. From here, choose the memorized transaction that you wish to edit and make the preferred changes. Click Save & Close to complete the process.
You can also delete a memorized transaction by selecting Edit > Delete Memorized Transaction. Keep in mind that this is a permanent process, meaning you’ll have to manually reenter and memorize the transaction if you ever need it again.
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What is Quickbooks Error 3371 and How do I Fix it?
Have you experienced a 3371 error message when using the Quickbooks accounting software? Intuit’s long-running accounting software is the preferred choice among thousands of small-to-medium-sized business owners. It offers a convenient interface through which business owners can keep up with their accounting efforts. But if you encounter the error 3371 message, you’ll need to take the appropriate steps to fix it.
So, what causes the error 3371 message? There are a few different possibilities, all of which revolve around activating the software. Quickbooks is a licensed software, meaning users must activate the software to use it. If Quickbooks can not initialize the license properties, it may display the error 3371 message. This happens when files are either missing or damaging.
According to Intuit, when the Qbregistration.dat file is damaged or missing, it will trigger the error 3371 message. This is an instillation file that houses all of the software’s license information. Whenever you activate Quickbooks Desktop, the license information is pulled from this file and validated on Intuit’s server. But if the Qbregistration.dat file is damaged, the software won’t open; thus, triggering the error 3371 message.
Another common cause of the error 3371 message involves a damaged MSXML component. This component is used by Microsoft and required to run Quickbooks Desktop. It works by assisting the software in retrieving information from the aforementioned Qbregistration.dat file. If the MSXML component is damaged or missing, Quickbooks may fail to launch and instead display the error 3371 message.
Of course, there are other possible causes of the error 3371 file, such as an outdated Windows operating system. Check to see if your Windows operating system is up to date. If it’s not, go ahead and update it, followed by restarting your computer. You should also check to see if your antivirus software is quarantining any Quickbooks files, which could otherwise lead to the error 3371 message.
Seeing an error message when you attempt to run Quickbooks is frustrating to say the least. However, you have to remember that the message is indicative of some other underlying problem. Normally, the error 3371 message is caused by a damaged or missing Qbregistration.dat file, a damaged MSXML component, outdated Windows operating system, or conflicts with antivirus software. Use process of elimination to pinpoint the cause of your error message. And if you need help, don’t be afraid to seek it, either from Intuit or your Quickbooks hosting provider.
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Merchant Fees for Credit Card Payments: What You Should
Not every customer with whom you do business is going to pay using cash. On the contrary, most consumers today now prefer credit cards over cash payments, and for good reason: credit cards are safer, more secure, more convenient, and often come with other perks like cash back rewards. But if you’re a business owner who’s thinking about accepting cash payments, there are a few things you should know.
For starters, you’ll typically have to pay discount fees when accepting credit card payments as a merchant. A discount fee is essentially a basic fee that’s incurred on the merchant each time a customer makes a purchase using his or her credit card. The fee will vary depending on several factors, however, including whether or not you swiped the card or entered the number manually, the type of credit card being used, and the industry in which your business operates.
According to Intuit, maker of the Quickbooks accounting software, there are 3 tiers of discount fees: qualified, mid-qualified and non-qualified. Qualified discount fees are the lowest, whereas non-qualified are the highest — and mid-qualified falls somewhere in the middle. It’s important to note, however, that discount fees can be downgraded, which basically means that some of the info was submitted later; thus, lowering the amount the merchant is charged.
In addition to discount fees, merchants must also pay a transaction fee. As the name suggests, this is a small fee for each credit card transaction. The purpose of the transaction fee is to cover the electronic authorization service cost.
But those aren’t the only fees you’ll have to pay as a merchant. Assuming you want to offer credit card payments to your customers, you may also have to pay other fees, such as chargebacks for instances. A chargeback occurs when a customer cancels his or her credit card payment, essentially reversing the charge. Other, large accounts, may have to pay a minimum fee is they don’t meet the necessary requirements.
These are a few of the most common fees associated with credit card payments. Merchants who choose to accept credit card payments will have to pay these fees. At the same time, however, it’s usually a smart investment that ultimately leads to more sales and more revenue. When customers are allowed to pay using credit cards, they’ll spend more money. It’s just that simple.
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Intuit Study Reveals Mobile App Popularity
More small business owners are leveraging the power of cloud computing and mobile apps as part of their daily operations, according to a recent study conducted by Intuit.
The company behind the popular Quickbooks accounting software found that 64% of small businesses operating in the U.S., Canada, U.K. and Australia use cloud computing services, 68% of those businesses use mobile apps, and 66% use smartphones.
The study, titled “2016 Appification of Small Business Report,” was conducted by surveying some 2,000 small business owners and managers, seeking insight into the tools used by their respective business. While the study sheds light on the sheer popularity of cloud computing and mobile apps, it also unveils a thriving yet not fully tapped market for app development.
Intuit went on to reveal that it, and its partners, have created one of the largest app markets for small businesses. As of today, there are more than 1,200 apps integrated into the company’s Quickbooks accounting software, 400 of which are available in the app store while the remaining 800 are available through private connections.
This study attests to the growing popularity surrounding cloud computing services and mobile apps among small business owners. Cloud computing, of course, is beneficial for several different reasons: it allows business owners to utilize the computing resources of remote servers, while also allowing them to access their files from any Internet-connected computer or device. And mobile apps are equally as helpful, allowing business owners to work on the go using nothing more than their smartphone.
As explained by Intuit’s Vinay Pai, Intuit is thrilled that small business owners across the globe are using cloud computing and mobile apps to run their business. Pai further added that Insights acquired through this study reinforce Intuit’s strategy.
“We’re thrilled that small business owners around the world are transforming how they run their business, and integrating innovative new technologies to improve how they operate,” said Vinay Pai, vice president and head of the Intuit Developer Group. “Insights from this global study further reinforce our strategy to focus on delivering quality apps that eliminate our customers’ biggest pain points. By enabling third-parties to build high-quality integrations that run seamlessly with QuickBooks, we offer the best outcomes for developers, partners and our small business customers.”
What do you think of Intuit’s latest study on small business apps and cloud computing? Let us know in the comments section below!
How to Find Your Quickbooks Company File
In Quickbooks, all of your transactions, ledgers and other accounting information is conveniently stored in a single file, known as the company file (extension .QBW). Whenever you make changes to your account, whether it’s adding a new vendor or tallying a new business-related expense, these changes are reflected in your company file.
Now that you know a little bit about the Quickbooks company file and how it works, you might be wondering where exactly it is located. Well, the location where your company file is stored will vary depending on your settings. You’ll have the option to choose your own preferred storage location, meaning you can store your company file on an external drive, the cloud, or locally on your computer’s hard drive. Regardless of which option you choose, though, there are ways to find your company file.
If you can’t seem to find your company file, you should first attempt to run Quickbooks and search for the location. After firing up Quickbooks, press Ctrl+1, at which point the Product Information window should appear. Look under the “File Information” option to see the specific location where your company file is stores. You can either make a mental note of this location, or you can copy it to a notepad for future reference.
If the steps listed above didn’t guide you towards your company file, there’s another way to find this file. Assuming your computer runs a new version of Windows operating system, access the Start menu > Search/Find > Files/Folders. From here, search for Documents, and perform a search for the “.qbw” extension. This should reveal all Quickbooks company files that are stored on your computer. You can click each one to access its respective location.
It’s important to note that the default Quickbooks storage location varies depending on your operating system as well as your Quickbooks version. In Quickbooks 2006 and earlier versions, for instance, company files are stored in the same folder where it was before installing Quickbooks. If you are running Quickbooks 2007 or newer, however, your company file may have been moved to the default file location for your respective version. Again, you don’t need to know the exact location for default file storage, as following the steps listed above should guide you to the right location.
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