accounting for preventive maintenance in quickbooks

Accounting for Preventive Maintenance in QuickBooks

HVAC and other specialty contractors regularly utilize preventive maintenance and service agreement to provide a steady flow of income. Here are some useful accounting tips to consider if you are a QuickBooks user.

If you receive a prepayment for services that have not been performed, this is considered deferred revenue. According to proper accounting techniques, Deferred revenue is actually a liability until the service has been performed.

If your business does not receive payment for preventive maintenance or service agreements until the service is performed, then you do not have a liability, and do not need to consider this information. Normal accounting usually bills when the service is performed.

There are several steps involved when you have deferred revenue:

different inventory methods

Different Inventory Methods

How does QuickBooks handle inventory? QuickBooks uses an average cost method to value inventory. This is different from the FIFO (First In, First Out) and LIFO (Last In, First Out) inventory methods.

There are three basic methods of inventory:

  1. LIFO Inventory Method
  2. FIFO Inventory Method
  3. Average Cost Inventory Method

Inventory Method Summary
This is also probably the single most confusing aspect of QuickBooks. In fact, many businesses choose not to track inventory at all in QuickBooks. However, using the QuickBooks inventory will greatly decrease accounting headaches when preparing financial statements for tax return purposes.

why manual paper work order systems fail

Why Manual Paper Work Order Systems Fail

The Way It Has Always Been Done:
Paper work orders have served their purpose since the dawn of service businesses. Basic components of a paper work order include a customer’s name, address, phone numbers, and a description of the problem or service to be performed. The paper work order is then placed in some sort of filing system until it is scheduled or given to a service technician.

Once the technician has completed the work, the paper work order is filled out and turned back into the office. Usually, the work order is then reviewed and turned in to accounting for invoicing. Once the work order has been invoiced and any payments applied, it is attached to the invoice and filed away (among years of filing cabinets). An invoice or statement is then generated and mailed to the customer.

This is a good system, but it has several flaws:

elements of a good item list or inventory part list

Elements of a Good Item List or Inventory Part List

QuickBooks Inventory items consist of the following: Item name or number, type of item (whether it is an inventory item, non-inventory item, service or labor item, etc.), item description, item cost and account, and item sales price and account.

Item Name or Number
One very important aspect of your inventory part list is the item name. If you use a number, be sure that it coincides with something else about the item. A good rule of thumb in naming inventory items is to use the same name or number that your supplier uses. Another useful tip in naming your inventory items is to use an alpha or numeric system.

gps vehicle tracking units – what’s the difference?

GPS Vehicle Tracking Units – What’s the difference?

In finding the best GPS vehicle tracking device, many service companies are curious about what the difference is between types of GPS tracking units. There are three different types of GPS tracking devices which include Data Loggers, Data Pullers, and Data Pushers.

Data loggers include your standard GPS devices available from any electronic store such as Garmin, Magellan, and TomTom. Data pullers include real time GPS devices that regularly send data to a server for real time retrieval and software integration. Data pushers are GPS devices that can be queried on specific time intervals or a set limit for latitude and longitude coordinates and typically include cell phone GPS tracking or mobile phone GPS trackers.