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Small Biz Accounting Tips, July 2013
July 08, 2013
Hello small business owners!

Hope your summer is going well!

...and your small business too!

In this months newsletter I've got some journal entry help for cash receipts - for basic cash sales as well as credit card sales and other miscellaneous receipts - and we'll talk about Cash Receipts Journal and tracking sales within your Cash Receipts Journal, plus I've got a couple gadget/products that you may find useful.

So let's get started!


Accounting Journal Entries

Cash Receipts

Let's explore some of the different types of journal entries you might see concerning cash receipts.

Hopefully you've started some kind of Cash Receipts Journal, to capture all of your incoming cash from Sales.

At it's simplest, a cash sale entry would look like this:
Debit: Cash 1000.00
Credit: Sales...........1000.00

But what if your customer pays you with a credit card? You will receive the cash in an automatic entry from the credit card company, less the 3% fee. So the entry would look like this:

Debit: Cash.........970.00
Debit: Card Fee......30.00
Credit: Sales.............. 1000.00

There are other transactions that involve a receipt of cash, too.

Let's say you run a lawn service company and sell off grass clippings and tree branches to someone who makes mulch.

You would make a journal entry like this:

Debit: Cash...............200.00
Credit: Other Income-Mulch...........200.00

Or - maybe you operate a towing service, and someone pays you to tow away an old rusted out wreck from their house.

Debit: Cash...............100.00
Credit: Sales-Hauling..............100.00

Then - let's say you sell that wreck to a junkyard for scrap.

Debit: Cash.............200.00
Credit: Sales-Scrap..............200.00

Nice days work!

Notice in these entries that my Sales accounts are specific, not just a blanket "sales" account. It makes sense to categorize your Sales as you record your business transactions.

That way, at the end of the month, or year, you have - right at your fingertips - information on your best and worst products or services.

Which leads me into my next topic.

Using your Cash Receipts Journal to track Sales

You can set up your Cash Receipts Journal to give you this information right from the start.

Start with your Chart of Accounts by using multiple Sales accounts. Make them specific to your business, like Consulting Sales and Speaking Engagement Sales, or Product A Sales and Product B Sales, etc.

Then, use your Cash Receipts Journal to add up each entry in these categories as you go thru the year.

Each month, you can summarize your Total Sales, but you can also accumulate your Sales by product, or service, or location, or sales manager, and certainly by customer.

To learn more, click here.

Helpful Gadget / Product for your small biz

And for help tracking potential customers thru your website, you may want to check out Hubspot.

Hubspot's all-in-one marketing software helps you with blogging, SEO, and social media to nurture and track leads to help you analyze web traffic and see which sources bring you the most leads.

So, if you need help with your web activity, check out Hubspot.

Need More Qualified Leads? Use HubSpot's Inbound Marketing System. Try our FREE 30-Day Trial!

Looking for a way to getting customers to pay at the point of sale?

Try Intuit's GoPayment. It's an app for your iPhone, Android, or iPad, and you can take payments from Visa or Mastercard or Discover and American Express right on your device, right when you deliver the product or service. And you can email or text a receipt right to your client.

This is great for contractors, service providers, anyone would benefit from having your customer pay you right at the point of sale. You don't have to remember to send out an invoice, then wait for payment.

Check it out. Intuit's GoPayment.

Never Miss a Sale. Get Intuit Gopayment and Accept Credit Cards Anywhere on Your Mobile Device. FREE reader included.

Well, that's it for this month.

I'll be back next month with more tips and help for your small business bookkeeping.

Take care!


PS: Please feel free to let your fellow small biz owners know about this newsletter! Send them to my sign up page - the last button on my navigation panel.

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