QB Power Hour Podcast
QB Power Hour Podcast
Daily Sales Summaries and LightSpeed QB Integration
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.
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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
April Fools, everybody. Rachel, where are you? Alright, that fantastic. You
Rachel D:got me. You got me.
Dan DeLong (2):Welcome everybody to a QB Power Hour and I pulled up the wrong video intro video. But thank you for joining us here today. Sorry. Today is I think April Fools is being played on me. I have a very horrible internet. Sound was horrible right before going live. And of course now I've done some challenging things with the wrong intro video. But here we are. Today we're gonna be talking about daily sales summaries and, unpacking the Lightspeed QuickBooks integration, for summarizing sales data in point of sale from QuickBooks. My name's Dan DeLong, owner of Dan with and school of Bookkeeping. I worked at Intuit for nearly 18 years co-host in today, as well as the workshop Wednesdays. And the feature D the feature D. Oh my God, I can't say it. The feature, deep dive guest at the unofficial Facebook accountant podcast. So thank you for joining us here today. Now normally this would be Matthew joining us today, but unfortunately he's not feeling well, and he was, he sent me a video he's I know it's April 1st, and this is not an April Fools joke because he, had on video, he had his hair all it's 9:00 AM on, his time. So this was like very early in the morning for him to be sending a video, but playing the part of Matthew today is Rachel Doci. Thank you for for, filling in on such short notice coming out of the yoga. And,
Rachel D:I was literally coming out of the yoga room and I was like, no problem. And I ran home.
Dan DeLong (2):So for those that that don't know you, tell, us a little bit about your job.
Rachel D:Sure. So in addition to co-hosting workshop Wednesday with you, where we always talk about something fun every week, my firm is called Net Deposited and we do all kinds of different bookkeeping and accounting, but one of our focuses specifically with what we're gonna talk about today with, these aggregated sales postings, which we do a lot in e-commerce bookkeeping, and we do a lot of that at net deposited 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 net deposited and I'm very active in the QuickBooks world and just happy to be here.
Dan DeLong (2):All right. Thanks again for filling in on, such short notice. And we did a a daily sales summary workshop on the workshop. On the workshop Wednesday over at School Bookkeeping. So yeah, we just did
Rachel D:like the other week.
Dan DeLong (2):Yeah, so that was like a dress rehearsal for the QB Power Hour, which a little bit of information about the QB Power Hour, just turning in for the first time. It's every other Tuesday at 12 noon. We are available or for CPE credit or we do have a channel over at earmark to be able to get those CPE credit for for accounting professionals. We now have six, prior webinars available there on the earmark. Housekeeping. We're gonna be talking about the topic of, today. So if you have any specific questions about about the topic please put them in the q and a so we can make sure that we can capture those. If you're watching on the streaming platforms of YouTube which, oh my gosh, my computer just restarted. I hate Mac. I'm, sorry. I hate Windows machine.
Rachel D:That's why I use a Mac.
Dan DeLong (2):Yeah. Yeah. I was telling my son, Macs just don't crash. Yeah. Out of the blue like Windows machines do. So if you hear a jet engine that's my machine restarting in the background. So if you have the some q and a specific questions about what the topic that we're talking about today, please put those in the q&a. If you have general comments about whether you prefer Mac or windows, please put those in the comments or the, and then of course we have the, handout available there. Noah, if you can throw that, those links in the variety of places that we need them to go so that we can do that.'cause I would've done that on the other machine that just restarted. So here we go. We also have a QB power Hour store for all your QB power hours, swag needs. Wireless chargers mugs, whatever. So let's let's talk about what's on the agenda today. Daily sales summaries is we're gonna unpack what they are, who needs them and then do a little demonstration of, doing them in QuickBooks online. And then we'll transition a little bit into Lightspeed point of sale and how they are handling the daily sales summaries. Now, all of this came up because over at School Bookkeeping, we have quick answers, feature which allows anyone, to, chat with with us there. And someone came in with a, challenge, because, they were using a subway. They, had a subway franchise that they were working with. And, subway had its own way to integrate into QuickBooks Online, and it was doing that with a daily sales summary. And, very familiar with how this all plays out with desktop and, QuickBooks online. But it, was integrating into QuickBooks online and there's a, snag. And that's what we really wanna unpack here is, there's a, yeah. But
Dan DeLong (3):When
Dan DeLong (2):it comes to doing daily sales summaries and QuickBooks online and and we'll talk about that as it relates to Oh yeah. Sales. I think I
Rachel D:remember, yeah. It was the sales tax.
Dan DeLong (2):Yeah. We'll, do that now. Oh, crap. Day is just a horrible technology day. But we did have some prior webinars. We do a, series here on, on the QB Power Hour called Niche Nuances. So I wanted to make sure that those were available in the handouts. We did convenience Stores with Alicia Kaz Pollock. She does she actually literally wrote a book about, handling convenience stores. They will typically not integrate with QuickBooks, depending on what, what's software they're using or if they're just using cash register. So that is that's a good, good one to review. And then we also had William English join us to talk about retail. I, was looking at this thumbnail too look how, young we looked.
Rachel D:I know
Dan DeLong (2):with Michelle and myself there. That was
Rachel D:before I knew you too. Yeah.
Dan DeLong (2):Wow. I think that was amid amidst the throes of Covid. Alright. All right. So our first poll question just to get things started here. What version of QuickBooks do you support your clients with? Has QuickBooks online or desktop or both? Whether that is now Rachel you, primarily or solely use QuickBooks Online. Or desktop or what, does it Yeah.
Rachel D:I, used to use desktop a long time ago. That's where I originally learned desktop. When I learned QuickBooks, sorry, I was in desktop way back in the day. But when I started my business net deposited, I really wanted to exist in the cloud. So that was 2019. I completely learned QuickBooks online and never looked back, so I only used QuickBooks Online.
Dan DeLong (2):Gotcha. And when we first started. Working together. You because you specialize in the inventory and, retail or e-commerce space.
Dan DeLong (3):Yeah.
Dan DeLong (2):Getting these daily sales summaries into QuickBooks is, a key workflow Yes. In, your practice.
Rachel D:It's, really key. And with that, I remember I didn't really know a lot of the specifics of why'cause most of my clients sell stuff, even though we do, support service-based businesses now more than ever.'cause inventory's driving me nutty, but we do support stuff. And there's so many different nuances about dealing with inventory and QuickBooks online that I really just needed to unravel every little thing and understand what it can do and what it can't do. So there's so many. Different elements to these sales summaries and why you would need it versus when you wouldn't wanna use it. And yeah, that, that's not really an answer but, basically there, there's just so much to know that it's really, helpful to zero in on one thing, focus on it, talk about it, understand why it's important to do a summary this way versus that way. Gotcha.
Dan DeLong (2):Yeah, it looks like most of the folks are agnostic to the QuickBooks platform. About 59% support, both but then like you, 31% solely with QuickBooks online. So let's talk a little bit about daily sales summaries, what they are, who needs them and just unpack that a little bit here. But really what this boils down to is turning. The, Z out store close at the end of the day into a, sales transaction into, QuickBooks. And that may be something that happens automagically through whatever application that you're, that you might be using or entering it in, individually inside of, QuickBooks. But yeah, and
Rachel D:I'll say that like we, we talked about this method specifically in the workshop Wednesday, and using a sales receipt entry form in QuickBooks online is definitely the traditional way. There's, other ways to get sales summaries into QuickBooks Online, but I just wanted to say that because I thought that was very confusing when I first started learning it this way. There, there's journal entries, there's different ways to get it in there, but I just wanted to say that.
Dan DeLong (2):Yeah. The the type of transaction that you're going to be entering in these sales summaries is certainly going to either augment or pass the baton to, to, to the next workflow that might be necessary, or, put a limitation on that, depending on what what it is that you completely do inside of the, QuickBooks Ecosystem. So who really needs them? Let's talk about some of the the industries that, that will use those. Maybe the integration is not needed or not functioning right? So if they're using like a physical cash register, right? There's no way to set that on top of your computer and get it to go into QuickBook, right? End of. You're gonna zero out your your cash 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 what and the payment methods that you took throughout throughout the day on those cash registers. So that will be one in reason for, using a daily sales summary inside of QuickBooks. The integration is just not there. Or if they, want to do departmental accounting, right? So retail. Convenience store e-commerce. We talked about some of those, industries, they don't manage inventory or sales data in, in two redundant systems. So they're not necessarily needing to track their inventory comings and goings in a perpetual, action. And that's very,
Rachel D:very common that we wouldn't do that in QuickBooks online.
Dan DeLong (2):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 of goods. But not if you need to know much more of anything else about those goods where it is landed, costs all those advanced inventory functions. So if they're not tracking those perpetual inventory, daily sales summers that are, okay. Or they're using QuickBooks for, category tracking of
Rachel D:Yeah.
Dan DeLong (2):Again, those departmental things. So there's a little bit of pre-work when it comes to setting up QuickBooks for, the daily sales summary itself, right? So first is to create some kind of customer for your counter sale, right? So things that you can call it whatever you want. QuickBooks point of sale call the counter tail, right? But you can call that customer whatever it's Right. A, you can even do it by register if you wanted to, right? Just creating a customer to put on the, sale transaction. Yeah.
Rachel D:And just like we, we do a lot of Shopify accounting and bookkeeping, and I always just create Shopify customer and that's if I'm bringing them in and using a sales receipt and, I need to put a customer in the field. We just do Shopify customer.
Dan DeLong (2):Yeah. And I saw in the like the q and a that somebody was asking for, can we have a Power hour on Shopify integration with qbo, there's probably about 34 different ways to bring in a Shopify transaction. There's one built in directly into QuickBooks with through commerce to all of the other ones. I saw another person's using show go. And that was actually something that William had mentioned on the, prior power Hour. But the next thing after you set up a customer is setting up your desired chart of accounts. How much detail or general generality are you gonna need in the chart of accounts, side of things. So you just wanna set up, those chart of accounts first, and then set up items. Typically, they're gonna be non-inventory items. For each source of revenue or each of those items that are going to be pointing to those accounts that you've set up. So this will be, your, sources of revenue. So if you're gonna departmentalize the sales or just something as simple as these were taxable and these were non-taxable, because you have to have that differentiation on the sales transaction itself as to what was taxable and what wasn't. Payment methods you're gonna set up items for payment methods. And then sales tax, is there's a caveat there about sales tax.'cause that's what we're really, Dr that's what's really driving the distinction of, doing this inside of QuickBooks online versus desktop.'cause QuickBooks desktop does actually have a payment method or a payment item, and those are treated. And distinctly from QuickBooks Online, where QuickBooks Online does not have that type of item when you specify that. So that is a, unique distinction between the two. And that's one of the reasons, but you don't necessarily want to do a daily sales summary if you're doing sales tax inside of QuickBook online.
Rachel D:Yeah. Then when you're dealing with multi-state though, it's, you don't wanna use the sales tax, the center in QuickBooks Online even'cause you, that's just it'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 about. Does Lightspeed specify that you need to have the items. Set up as non-inventory as such in QuickBooks Online so that it'll find the non-inventory item and then post it if you're doing a sales receipt. Do you have to have those items set up?
Dan DeLong (2):Yes. Yeah, you do wanna set up those items ahead of time?'cause guess what? Just, what's that?
Rachel D:I was just gonna say, in this world of automation and connectivity, I am really deep in that, and I'm working with an app right now that you cannot have the item set up for syncing. It wants to create the item, a non-inventory item, but you cannot have them set up already. It's so funny because like in these. It with the differences of the mapping and how things need to be set up to get the data over to QuickBooks online. They're so wildly different. And so one of'em, you have to follow this, these steps and set up your items ahead of time so it can find the item. Usually in the settings they'll be, if it doesn't find the item, it will create a new item and most of them are like that. But now I'm working in an inventory app where Zoho in that you can't sink anything over if there's an item and non-inventory item, it's gotta be all no items.
Dan DeLong (2):Interesting. I know. Yeah. It sounds like Zoho a control freak. It's I'm gonna do this my way.
Rachel D:Yeah. So it's, really interesting that every time I feel like I have a workflow down, okay, create the customer, set up the desired chart of accounts, set up the items. Oh, now all of a sudden now I'm working on one where no items.
Dan DeLong (2):Yeah, The, all these different details and nuances of the, apps that integrate and how they integrate is certainly not universal.
Rachel D:Yeah. Yeah. It's, wildly different
Dan DeLong (2):right now, if you are using inventory and you want to track some of these things, these, you're gonna want to create income accounts and non-inventory items as well. And those will match to match the, point of sale systems. And then if you do purchases, you want those purchases coded to inventory asset, even though inventory is not used. For, this process. And then you would do, periodic adjustments to get those alignments of inventory value into QuickBooks. You wouldn't necessarily use inventory items and track those inventory items because the accounting is gonna be all sorts of differently handled. And really that's the big distinction about this whole, process is where's the inventory source of truth typically that's going to be in your point of sale system or or somewhere else other than inside of QuickBooks. So you can, you just want QuickBooks to mirror the accounting value that wherever you're tracking your inventory in. Yeah. Do you have any thoughts about, to add to that?
Rachel D:Yeah. And this is really confusing. I'm telling you like I encounter people every single day that And my clients too, that they think they need to track inventory in both. That's a, confusing thing that I run into a lot, that they're tracking their ups and downs of quantities elsewhere and they think that they need to also track the ups and downs of, and quantities in QBO and all they're doing is like pulling their hair out, going, I'm tr I'm going up and down here and I'm trying to go up and down here. The same thing. No, we don't do it like that. Ups and downs of the individual quantities in your inventory 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 the inventory valuation. We're not, or the inventory summary report. Nothing like that. It is literally inventory is turned off. We have a value of inventory on the balance sheet. That's it. Period. End of story. You can, like you said, decrease that inventory with a monthly cogs entry or something. If you wanna pull that from your system, like if you're using Katana or something, you can go and pull your monthly cost of goods sold and post them. I typically pull in systems that will push a cost of goods sold entry with every point of sale.'cause that's perpetual inventory. But even still, all you're doing is with a, COGS entry, decrease inventory, increase cogs a little bit with every single sale. It's just a balance sheet thing. That's it.
Dan DeLong (2):Yeah. Now, now this slide is the Alice's restaurant. Slides got circles and arrows and, paragraphs on the back of each one. But, so I'm dating myself on that reference for those that may or may not have understood that. But the, daily sales repeat, and there's a link here to the Intuit article to and we'll, cover that as, as well. But you're gonna be creating that daily sales zero out tape from the point of sale system, and then use as$0 sales receipt to manually enter that into QuickBook. Now you're gonna be depositing it to the, deposit two is, is, important because if you put it to o undeposited funds inside of QuickBooks, you're gonna have all these$0 sales receipts. Sitting in positive funds, and that's a waste, right? So just put it to another clearing account or some other non non undeposited funds account so that when you record these sales receipts, it doesn't clog up your bank deposit screen. And then you'll want to use sales 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 of type of client. They had their own unique point of sale system for, that, it was a franchise. And it did not integrate with with QuickBooks Desktop. He started at the time and then he didn't wanna pay for the integration in when he did finally go to QuickBooks Online. But it also gave him the ability to keep. Track of the numbers. He was very interested in the days sales, what was going up and going down. So he had created all of these items for faxing and shipping and packaging and gift card, or not gift card, but greeting cards. He had those they have all sorts of little extra things inside of that, the mailboxes themselves. So he wanted to keep track of all of the sales of those, different little things. He got it out of his point of sale system. So he would create those items and put'em into his daily sales summary. And then after you've got your sales your overages, your shortages, your gift cards, all the things that you do want to track, which increase the value of this daily sales receipt, then you would put paint those payment methods as negatives onto the daily sales summary. And that's why you would essentially be entering these daily sales summaries as nothing as a$0 sales receipt, which would then, do the accounting of here's what I sold, and then here's the payments that I received. And those payments are then gonna go to unde positive funds or wherever you need them to be deposited so that the money movement then happens. And then we've got the, Intuit article linking here. Let's let's ask our second polling question of do you use daily sales summaries? Yes. I enter'cause a variety of ways. You can enter them manually. You enter them automatically through an integration, maybe through a utility import, or, you need to record the sales by customer and you wouldn't do that sort of thing. Do you find Rachel that is mostly daily sales for. For the clientele that you work with? Nope. You're muted. I can't hear you. Oh. We have the same problem as before. Did you turn around? What about now?
Rachel D:Can you hear me?
Dan DeLong (2):There we go.
Rachel D:There you're okay. It's half and half. I have people that I do bring in individual sales receipts on automation. And like what I was explaining before, we have certain situations which it'll create the item based on the mapping that I've set up in the original system. And then I have other situations where we have to have the items created, mapped to where we wanna go, and it still brings it over on individual sales receipts. I typically, when we're using point of sale. I typically have, I typically always use a sales receipt. I don't use an invoice because I don't want it to hit undeposited funds. I want it to point to a specific clearing account because, like for example, if my client's using something like Stripe to collect those payment methods, I wanna point it to Stripe Clearing because those payouts that are gonna come in through Stripe, I wanna clear out that clearing. And a lot of times they have more complexity. They have some other, they're using QuickBooks payments also, maybe with invoices they're sending out. So I like to separate those clearings. And for that reason I, am like, when you're talking about clearing accounts, you're speaking my language, but yeah and then the other half the people, yeah, we do use a daily sales summary. Usually the, connector tools that I use will put it in a journal entry. So rather than pointing to product service items, we're just pointing it specifically to the accounts revenue and then the clearing and then sales tax or something like that. But I, we do still have situations where we will literally go in and maybe take a month's data not a daily one, but maybe for like super simple clients we're doing, we'll take a month's data and we'll post like a month sales receipt that way.
Dan DeLong (2):Yeah. And, like you, I think a lot of people are, it depends. Yeah, right? You don't always, you don't always do this, entering manually. So yeah, I didn't put it in as a multi check box option. But yeah, so it looks like entering manually is is. Majority that are doing that.
Rachel D:Yeah. and and it really, the mapping can get complex once you do it, you really develop the mind for it. And then you can go in and figure it out and, but yeah, it's I understand it sometimes can be tedious. All right,
Dan DeLong (2):This article here is and LinkedIn in the, handouts. This is actually a really good robust robust article, really walking you through this very process where it talks about creating the customer for daily sales, setting up the accounts for, daily sales. So you're gonna have the, in the income accounts, the clearing accounts overages and shortages for your, cash drawer for those cashiers with sticky fingers or clumsy fingers that drop a quarter underneath a cash bar or something like that. I'll set those. And then setting up those items that point to point, to point to 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 sure why it goes to the account of check.
Dan DeLong (3):Doesn't seem right,
Dan DeLong (2):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 check check, across the, chart here. But, unless you, have a, distinct, check depositing process, right? These are Mobile deposits or something like that. But normally that would just go to un deposit funds and then you would be putting this in as a daily sales template, putting in the and then putting this as a recurring transaction, right? So you would save this as a memorized transaction. And then every day when you have that, the, Z Out store close. Tape or receipt or whatever it ends up printing on. You would then just enter in the amounts, just down the list, right? So this this this failed receipt should be mirroring the exact same format of your, Z out tape, so that you can just go down the list of the amounts and, enter those in. So you start with a$0 sales receipt that is, that has nothing on it. David has a template, and then just go into recurring templates, use it, and then just enter the amounts, record it, and you're done. Right?
Rachel D:And this is all supposing you, you're, you don't have something that's automating it for you, right? Yeah.
Dan DeLong (2):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 and enter that and this I can make this bigger. Yes. I, so this is the breakdown, right? You've got your daily sales income of 1,080. You're on this on this screen. And then the payment methods of cash, check, visa, MasterCard, American Express, discover, any kind of overages as negatives, which zero that out. Now they do mention here, and I just wanted to go back up here. I saw it, somewhere because it was talking about. Sales tax. Okay, maybe that's down, here later. So the next thing is then depositing your daily sales. All of these items of payment methods are gonna be linked to wherever they need to go. And that's gonna be passing the baton to to the next step. Whatever that workflow happens to be. And then you're just gonna make those deposits grouping your credit cards together, taking out the fees, whatever it is that that you wanna be able to do with that deposit sample. Right where it's bringing in the cash check visa, MasterCard, American Express, all in one to make that lump deposit. Maybe you don't go rushing down to the bank every day to deposit your cash, right? Cash is gonna accrue or build up inside the undeposited funds. And then. You take all of the cash, three days worth of sales, an thousand some dollars, then you lump those things together, make those deposits to mirror reality. Now, okay, now where did it go? Because I saw it earlier. Let me make this a little easier to see for me. Because it, it's something about, okay, I'm just gonna find it here about there. It's okay. Yeah. It's a little blurb here. Make sure you use your tax rate is set up properly, is this little tiny thing here, right? So by doing it this way you can see that, and this is what Paul prompted the whole topic here. By doing it this way, we have our taxable sales. Of this first item, and then we have negative items as, non-taxable, right? So to QuickBooks Online, it doesn't know a diff the difference between the cash check and Visa MasterCard as a negative, as the daily sales income line item above it, right? So to QuickBooks it is recognizing this on in, QuickBooks as a negative sale, right? So because it cash is$327 as a negative and it's non-taxable. When you run your sales tax report, you have positives for the, for the, 10 80, for the thousand dollars and 80, 80 cents. But then you have these negatives as negative sales. So that's what started this whole this whole conversation is someone was having some challenges because they were coming in as sales receipts like this from their subway franchise, but then he was going to remit the sales tax and ran the sales tax report. The gross sales said zero, for a whole month. It was zero. I think you're muted again. Sorry. I saw you say something.
Rachel D:Sorry. Yeah, no, it screws up your sales tax report. It's super frustrating. Yeah.
Dan DeLong (2):So he had gross sales of 87,000 or taxable sales of$87,000 and non-taxable sales of negative 87,000. And thus giving him gross sales of nothing. So that was that, that, that was a challenge for him because he was using, QuickBooks to help him fill out the, sales tax reports. And those reports were essentially useless in this manner, right? Yeah, because, because in QuickBooks it was recognizing the ins and the outs of the sales receipt negative and a positive sale, right? Because these items, unlike QuickBooks Desktop, they're not specifically marked as payment items, right? So it doesn't know the difference between it and a payment, right? So it handles the, the accounting rate. But this is the, yeah. But of this whole thing, whoop, where did it go? So non-taxable sales or non-sales items are sales items to QuickBooks and the sales tax reports, are, a challenge. And the other thing is you could potentially, so this$1,080 that's, here at the top, is a summary of all of the sales, for that, day. You, this may be 20 different transactions at varying different dollar amounts which are going to have sales tax calculated at the time of that sale, not at a grand total of 10 80. So potentially by doing it this way also. And counting on QuickBooks to recalculate the sales tax, not putting in your sales tax items on the sales, trans sales receipt itself. It's going to potentially recalculate your sales tax and it's gonna base its calculation on$1,080, which may have some fluctuations with routing. So that's another potential issue when it comes to doing it this way and sales tax.
Rachel D:Dan what's your, what's, what would you say then to somebody that's this is, I I am doing the bookkeeping for somebody's franchise, or I am a franchise, small franchise owner, and I am this is the way that I've been taught. This is the way I know how to do it, and I wanna put my daily sales receipts in this way. What would you suggest to them?
Dan DeLong (2):Yeah, so if you're using. If you are using QuickBooks to, help you with the, sales tax reporting side of things, then a daily sales summary is not the, best way to handle that. And, I would as it's a pain, as it would be not just one transaction for the daily sales, it would be the invoice payment rec avenue. Because payments are, payments they're treated as payments and they don't have, the the, challenges that a negative sales item that,
Rachel D:Right. So rather than a sales receipt, you'd have them use an invoice in which there would be a receive payment associated with it.
Dan DeLong (2):Now you still potentially could have that same issue by summarizing your sales and sales tax recalculating. But that's all gonna also come out in the wash when you actually do the filing.
Rachel D:Yeah.
Dan DeLong (2):Because they are going to ask and that's gonna recalculate as well.
Rachel D:cause doing it that way, you don't, you, all you're seeing on that invoice is income,
Dan DeLong (2):right? Yeah, exactly. Which segues really nicely into how Lightspeed point of sale handles this. And this was one of the things that we've Matthew and I have been talking about what we're gonna the direction that we're gonna be heading. The CUNY Power Hour to, is really understanding the, things that are really important for QuickBooks online in that, ecosystem, because of the shallow end of the pool, the functionality of QuickBooks. You. It's not designed. QuickBooks online is not designed to be a point of sale system. Yeah. So you often need to have other things that, that synchronize. And, we want to get into, some detailed analysis of how these apps actually send data to quick, right? So if you're using something like Bookkeep with Lightspeed, that's gonna be handled completely different than if you're using Lightspeed's point of sale and built in built in integration. So
Rachel D:under, and that's not shows
Dan DeLong (2):up QuickBooks. That's really what we want to unpack with some of these app integrations moving forward.
Rachel D:Yeah, and I was just gonna say, that's not to say that you can't use a connector with a point of sale automation tool. And do both.'cause you're only mapping one thing 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 there's just these functionalities, but it's engineered to work with all of this other stuff and instead of doing the things in QuickBooks online, we're now doing the things elsewhere and just funneling the data in there to QBO and it the, capabilities are endless. You can grab data from here and from there and put it all together and it can get really complex. But the whole point is, that QBO can support it and QBO can do it. So it's really, neat. I love that part of it.
Dan DeLong (2):Yeah, and that's that's the, environment that we're, in now, right? It's, yeah. Especially with something like QuickBooks Enterprise. For desktop, a lot of things were done stoop to nuts inside of, QuickBooks. Now we're with QuickBooks Online and some of the glass ceilings that we're bumping into you have to have this hodgepodge of technology to integrate into, QuickBooks, and you're using QuickBooks as the, foundation of your, finance and your accounting. But the way that information comes in is going to either allow you to make usable reports or not, depending on how that information comes in. The main thing that I wanted to, point out about, Lightspeed Lightspeed has, taken a page from, Intuit. They have. Acquired other companies and assimilated them into their
Rachel D:yay,
Dan DeLong (2):into their ecosystem. We
Rachel D:love that. Right?
Dan DeLong (2):So if you've had an, interaction or an experience with, Lightspeed, there are a variety of different series of, lights speeds. Their flagship product right now is called Xer, which is not the light feed from 2, 3, 4 years ago. They have, that is the R series. So just the, amount of QuickBooks that are out there can get, challenging. The you might want to take a look at it again if you may have had a, poor experience because they understood that it wasn't the greatest thing and then they, went out, found another point of sale system that does work a little better.'cause when we talked with. Before he talked about Lightspeed then, and he was using Cho go to integrate because the integration didn't do what he wanted it to do. But to your point, you're, not beholden to using only the Lightspeed integration. You could use a sales connector like book like bookkeeper or sender or ility a lot of those other connectors or integrators do allow for
Rachel D:yeah, they allow for multiple payment methods so you can use the, one of your choosing. And I, my clients are very particular on the POS system they wanna use because of the rates. And the, it really, there is flexibility for them to keep using what they wanna use.
Dan DeLong (2):Just QuickBooks point of sale Lightspeed specializes in hard goods. So you know, things that are actually, available to tangible, to hold and, whatnot. Those are their, in their industries that they specialize in. I did hate the fact that they said the word seamless integration. I know you,
Rachel D:you do hate that
Dan DeLong (2):that is a trigger word for me. But, their, integration is actually pretty, good with the exception of inventory adjustments. But we're not talking about that. But Lightspeed does allow mapping to QuickBooks Daily sales summary items. This just a screenshot here of their integration page. So you have the dropdowns and that will pull in the item listing from, your QuickBooks. So you can map to specific items listed here. So that's one of the things with the pre-work in, setting up QuickBooks and Lightspeed, is that you do have to set up those items ahead of time, otherwise you won't see them to be able to map them to this one here. With the product types, this does allow you to map Lightspeed product types to QuickBooks, right? So you, if you're, if you've departmentalized your, your, inventory inside of Lightspeed, you can set up those items. So that you have if it's clothing store, you've got shirts and men's and pants and all those different types of items. You can map those independently. Oh, that's awesome.
Rachel D:Awesome. Awesome, And then,
Dan DeLong (2):and then what Lightspeed does is it sends the coffee of the gold to QuickBooks on a daily basis as well. It's one transaction, it's a journal entry. It's not split out like that department. So just keep that in mind. And it also sends purchase orders, store credits, sales on account all those things that you would be doing inside of the point of sale system over to QuickBooks. And it does it automatically, right? And as soon as you close the register, it creates that sales transaction over in QuickBooks. You don't have to go and click on something that says. Send to QuickBooks or anything like that. As soon as you do the task that you're doing, whatever that is, that's the trigger to get it over into QuickBooks. And then it also allows for mapping of specific sales tax items, right? So it does, so you don't have that rounding or recalculation, because when you point it to the right sales tax item or the sales tax method inside of QuickBooks, it's just going to take the amount that was collected and put that dollar amount in there. It's not gonna allow QuickBooks to recalculate. And, potentially have this rounding issue of pennies and cents. So it's daily sales summaries are created as invoices and the payment methods are created as customer payments applied to that invoice, right? You're not gonna have this problem with with sales tax by using the Lightspeed built in integration. And this is not something that you have to pay for extra, right? It's just one of the, payment opt, or I'm sorry the, levels of, QuickBooks. If you have accounting integration, you would just get the, flavor of Lightspeed X Series that, that allows you to do that. If you find that this is you need your details or you need something else, then you would purchase the one that doesn't have that, right? So it's not something that you're and there's other things that come in with that flavor of Lightspeed as well.
Rachel D:Why do people have till discrepancies,
Dan DeLong (2):till discrepancies?
Rachel D:It drives me crazy.
Dan DeLong (2):That requires a human to do things. So humans make mistakes, whether it's counting the money or fraud. Yeah. Or dropping things. I worked at Pizza, my, all, all through college. I dropped coins all over the place so that, that comes in at the end of the day when you're sweeping, right? Oh, there's where it went.
Rachel D:All, I'm doing is exposing myself to be so very anal.
Dan DeLong (2):All right. They are offering a a promotion actually. Ooh, very cool. This month or three months of the service. And one of the things that I really like about Lightspeed as well is they reef they charge. Their customers for an implementation. They give five sessions of training for, to train the store so you don't have to tell them how to use all this stuff. They then they break it down in, in five different topics of sales and inventory management and e-commerce and, those types of things. And then they charge them, I think it's$300, to do the, implementation, but upon completion of those five sessions, they get it back. Oh. And so that's
Dan DeLong (3):really cool. They know
Dan DeLong (2):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 gonna cancel. I kind of wish QuickBooks would do this of Yeah.
Dan DeLong (3):Hey,
Dan DeLong (2):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 a little bit more familiar with the product using it. Now, one of the things I wanna mention about these, sessions is those people are very focused on using Lightspeed and as they should, right? Like they, they know how to use Lightspeed. They don't know how it's gonna all integrate and respond to, QuickBooks.
Dan DeLong (3):Yeah.
Dan DeLong (2):I, first time that I did recommended this to a client, I sat in on those sessions so that I could be available to help explain, and understand a little better, right?
Rachel D:Yeah. That sometimes happens.
Dan DeLong (2):And if they are using something else. Another point of sale system. They will migrate the, data customers and vendors, and their items into their Lightspeed to get it set up for them.
Rachel D:Hey, Dan, quick question. Do you know if you can use Lightspeed within e-commerce channels?
Dan DeLong (2):Yes. It actually the, way that they they explain it is they've had a Shopify integration longer than Shopify has a, has had an integration with its own product.
Rachel D:Because let me tell you. The fact that Lightspeed can separate by product type. Product type in Shopify is a very big deal. And those eco most e-commerce connectors can only grab the class and or location. And so if it can grab something like the product type, I haven't seen anything else that can do that. I'm gonna, I'm gonna go in and do some research on this because if you can, map the Shopify product type to its own product service item, and thus its own income account, that's huge. You can separate things on the p and l. I have a client where I literally go in and do it manually'cause I haven't found anything that I can separate by Shopify product type.
Dan DeLong (2):Yeah. And another another point of interest is that every register is it creates a, daily sales summer summary for each register. And e-commerce channels are considered a separate register Yeah. As well. Yeah. So when those e-commerce sales come in to to the Lightspeed they will be sent as a separate customer
Rachel D:Yeah.
Dan DeLong (2):Over, over into QuickBooks as well.
Rachel D:That's very cool. And really what, just to, what I mean 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):yeah.
Rachel D:But wa wallpaper sales and, you typically can only do that on the vertical, like by the class. So this, that's cool. Exactly.
Dan DeLong (2):And, then as I said, so this is this is the inside of. Why is this? Is, I updated my Mac, so now it's asking me all sorts of questions as well. But this is the the QuickBooks app settings inside of a, of Lightspeed. This is where you can just click the dropdown and find find the mappings. If you wanted to map the product types you would have to, I think to your point if it's a Shopify product type, you would have to map those product types as well inside of the, yeah, you'd have to map
Rachel D:them ahead of time. But yeah, as long as
Dan DeLong (2):they're, as long as they're mirroring what you have at Shopify, then of course it's gonna send those things over as, as you tell them to. And then your expense information, li any li liabilities that you have gift cards. Store credit those types of things that you wanna map specifically to again, you just make sure that those items are set up in, in your QuickBooks to handle the accounting, because that's what Lightspeed is gonna be using when it, sends it over. There we are, right on time. Oh, and I just wanted to mention that this all came up because of a quick answer that, that somebody reached out to us over at school of Bookkeeping. So if you have questions, you want to, get some support, you can do that over at School Bookkeeping as well. And maybe your topic is gonna be featured on on a future QB Power Hour. So let's, real quick Noah, go ahead and launch the last poll question, which is, was this information useful? Did you learn something new? Rachel, was it useful for you?
Rachel D:Yes. Oh my gosh. I didn't even really I'm familiar with Lightspeed, but really getting to see the differences of, what it can do. Oh my gosh. I'm very impressed because I haven't really looked at their Yeah. And this is settings.
Dan DeLong (2):Yeah. There's no silver bullet for a one try, one size fits all anymore.
Rachel D:No, there's not.
Dan DeLong (2):And that's really what into my pain we want. And that's what we really wanna unpack, and, compare for these workshops. And the power Hour that we're doing here is really getting into the, how this data, as much as they would say works with QuickBooks. And, integrates with QuickBooks in what way? The biggest example is as. Our friends at Bookkeeper we've used bookkeeping before. They will only bring in transactions as journaling, right? They do a really good job of that. But if you are using something like like sales tax or a functionality that requires, QuickBooks to have its functionality that isn't the best solution to bringing ev, bringing that data over, yeah, there are some things that it will do really well, but understanding how that information gets over, that's really things that, that Matthew and I are gonna be focusing on with QB Power Hour moving forward. Rachel, I really appreciate you at such short notice filling in and coming in, and hopefully, the folks that that watched I can't tell because my restarted in the middle. Everything happen. But we really appreciate you all joining us here today on the QP Power Hour next time on the, 15th. Fully expect not everybody to be showing up here because that is the tax deadline of April. We'll be talking about some QuickBooks online updates or QuickBooks ecosystem updates. We'll be talking about the, tag migration and the death of tags.
Rachel D:Yeah, that's going away.
Dan DeLong (2):And we'll be fielding some questions out of the out of the Facebook group. So appreciate you joining us here today, and we'll see you next time on the QB Power Hour.
intro (2):Have a great day, everyone.