Entering your invoices is important but there are some other things you should do first.
Number one - get in the habit of using the Purchase Order function in QB. Everytime you order something, enter a Purchase Order and print it. Fax it to the vendor along with any drawings or specifications. Save the printed copy in your file drawer for that vendor. This will hopefully alleviate any misunderstandings about what you ordered, the quantity, and the price.
Number two - when the shipment arrives, check it to make sure it conforms to your purchase order. Check items on the packing slip and compare them to the PO. SAVE the packing slip!! Receive the items into your inventory in QB so you have accurate inventory count. If you don`t do this will get "out of stock" error messages when you have stock sitting on the shelf.
Number three - when the invoice arrives, enter it into QB. It should match to the items received and the price on the PO.
This is what we call a Three-Way Match between the PO, the packing slip, and the invoice. Staple them together and put them in a file of invoices to be paid. When pay the invoice, attach one of the remittance advices to the stapled PO, pack slip, and invoice. Note: This is why you should order 3-part checks. It is also makes it easy to tell which check paid which invoice.
You`re doing good with keeping the bank account and AMEX account reconciled. Be sure you keep doing that every month. I can tell you from long experience that if you can`t get the cash to work in an accounting system nothing else in it will work.
The "on sale" merchandise you sold at the craft fair is no problem. The reduction gets recorded as a "sales discount" to the regular price when you enter the sale. The sales discount will appear as a reduction to your gross sales on the income statement.
Regional Vice President
Equity Corporate Finance, Inc.
888-498-8999 ext. 109