How we Setup QuickBooks for a Bottle Water Manufacturing Business is an experience we will love to share with you and our client in that line of industry on how we were able to conquer their challenges by tracking bill of materials used to run production with the available inventories and requirement for the production of bottle water.
QuickBooks helps to curb the stress of manual accounting or using excel spreadsheet to present reports. As we all know that technology has gone beyond that stage in the business world. The business was using excel to input data’s and track day to day financials until we were called upon to display our expertise on how QuickBooks will work and solve their financial and inventories issues. With the information provided to use we were able to do the followings using QuickBooks accounting software with other relevant features the software can perform.
- Easily import all the inventories with their respective cost and quantity on hand.
- Migrate all the customers, suppliers, banks and relevant account balances into the system via excel.
- Easily check quantity of product available for sale which could be in pieces, bags or any other preferred unit of measure.
- Record all bills of materials used in production to build assembly.
- Record cash or credit sales to your customers.
- Know their customers and how much they owe you via receivable reports.
- Know their vendors or product suppliers and how much you owe them via payable reports.
- The system also provides multi-currency features; ability to set up banks in multiple currencies, record FX transactions and see the effect of exchange rate gain or loss on your business.
- Your month-end bank accounts and inventory reconciliation are made easy with a quick reconciliation window.
- With all these in place, we were able to generate accurate sales, expense, inventory, profit loss, statement of financial positions, cash flow and other relevant management reports that are necessary for decision making.
- You can manage multiple users on the platform, assign user roles and password and monitor their activities on a real-time.
- For security and safety of your files, you can back your data up on a daily, weekly or monthly basis.
- You can also close your book for the year.
- You can also see a company snapshot of your business activities. Performance tracker.
Setup requirement includes:
- List of customers and receivables.
- List of vendors and payables.
- List of inventories, cost and quantity on hand.
- List of bill of materials and its material usage for each final output.
- List of bank account balance including foreign currencies if any.
- List of fixed asset, cost and depreciation value.
- Tax balances. VAT and WHTax.
With the following information above, we were able to do a perfect projects seamlessly by installing QuickBooks Premier Edition, Implementation and Charts of account setup and train the users.
How we track the sales aspect (Revenue)
As we know that most pure water and bottle water businesses has a sales rep and buses that load the items for supply. We track the buses as Customer names and invoice the total numbers of bags given to them as Receivables and Map to the sales rep. upon return we use the receive payment window to track the numbers of bags sold as income and to know how many bags are left as receivables. With this setup you can check sales report by rep in other to know which rep is doing well and if it’s a company that does performance appraiser that rep can be appraise for the good work done for that period of time.
How we setup the inventory and Assembly items.
Using the item list menu on QuickBooks Desktop Premier Edition, we setup the raw materials which are PREFORM, CAPS, LABELS and SHRINK WRAPS as inventory item including the cost price and quantity on hand and setup the BOTTLE WATER as Inventory assembly. In the event of setting up the bottle water you will be required to also setup the bill of materials used in the production of the bottle water and the quantity of materials used in producing a bottle water. When all this is in place you will be able to see how many bottle water can be produced with the quantity of hand on the system and once you build assembly the raw materials reduces as the finish products increases.
In the meanwhile, the business doesn’t sell a bottle water rather they sell in dozen. This means we still need to have an assembly item under an assembly item by creating an item name called packaging as inventory assembly and pick the number of bottle water that makes a pack or dozen. This means that we can’t get a pack or dozen if we don’t have a bottle water as each because as we assembly the pack or dozen it decreases the bottle water in each and increases the pack or dozen.
Other features of QuickBooks for a bottle / Sachet water business.
a. QuickBooks has a feature that you can track transfer of items to various locations or outlet for a business that has different location. This will help see sales from different locations.
b. QuickBooks has a window for a direct sales from any Walk in Customers. We use the sales receipt which eventually reduce the quantity of the item been sold and increases the revenue.
c. You can also record all cost that is incurred in the production process as a cost of sales in order to ascertain your actual profit margin.
d. QuickBooks has an inventory report page that shows the item movement and the quantity on hand.
e. You can also track all expenses incurred in the business, salaries paid to the workers. Direct and indirect cost transactions.
f. You can also see report that shows how many final products you can get with the quantity on hand available in store.
- For further information on how we setup QuickBooks for a bottle water manufacturing business, Call us on +2347012193226 or send us a mail using [email protected]
- We will be glad to help you sort your business challenges.