Channel: QuickBooks

Category: Science & Technology

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Description: QuickBooks Enterprise (learn more: intuit.me/upgradetoQBEnterprise) lets you fully automate landed cost into your accounting, so you know the true total cost of getting your item or product into your customer’s hands. In fact, 91% of QuickBooks Enterprise customers who switched from QuickBooks Pro or Premier agree that Enterprise gives them visibility into their costs so they can improve their profit margins (based on Intuit survey Sept 2021, among QuickBooks Enterprise users who expressed an opinion). Landed cost factors in the freight, duties, taxes, tariffs, currency conversion, and insurance costs associated with your item. There’s no need to track these costs manually and run the risk of data-entry errors and lost time. With Enterprise, you know your landed cost for each item automatically, so you can more accurately maintain the margins you need to stay profitable. You’ll get started with landed cost by setting up items for the fees you want to track. Then, specify a landed cost account to track these costs – for added flexibility, this account can be “Cost of Goods Sold” (COGS) or as “Other current assets.” To calculate landed cost, you’ll first record the fee items on your bill along with your inventory items. You choose how to allocate these costs to your inventory item – by quantity, amount, percentage, or using manual shipping and handling fees you specify. Then, you’re able to calculate the true landed cost to send each of your items. From here, you can adjust your pricing to ensure the profit margin you want. In Enterprise, you can also calculate landed cost for old item bills or receipts from closed accounting periods. Count on landed cost in QuickBooks Enterprise to get the accuracy you need to understand your true costs and help improve your profit margins. In this video: 0:03 Understanding all your costs is essential to knowing the financial health of your business. 0:09 Your full cost of selling a product can include several fees related to transport, insurance, duties, taxes, tariffs, and currency conversion. 0:22 If your accounting system isn’t able to capture these costs associated with each item, or relies on manual record-keeping with spreadsheets, it can invite errors at every step. 0:30 Landed cost in QuickBooks Enterprise gives you the tools to more accurately reflect what you’re spending to get each of your items in customers’ hands. 0:39 91% of QuickBooks Enterprise customers who switched from QuickBooks Pro or Premier agree that Enterprise gives them visibility into their costs so they can improve their profit margins (based on Intuit survey Sept 2021, among QuickBooks Enterprise users who expressed an opinion). 0:52 The landed cost functionality lets you assign freight charges, insurance, duties, and other fees to each of your products, in the way you prefer. 1:01 To set up landed cost, first create items for the fees you want to track and specify an account to track them. For added flexibility, you can specify the account to be “Other current assets” or “Cost of Goods Sold” (COGS). 1:18 To calculate an item’s landed cost, record your item and the new fee items that apply, on the bill. 1:26 Next, choose the bill that has landed costs yet to be allocated. You’ll then be able to choose how to allocate these costs – by quantity, amount, percentage, or as a shipping and handling cost that you set manually. 1:35 QuickBooks Enterprise also lets you calculate landed cost for old item bills in closed accounting periods, for additional clarity of your past costs. 1:45 Right away, you’ll see the true landed cost per item, and you can use the next screen to adjust your selling price to reflect this new information so that you can better protect your profit margins. 1:55 To get the accuracy you need to understand your true costs and help improve your profit margins, count on landed cost in QuickBooks Enterprise. Subscribe to our YouTube channel: intuit.me/3bOj0M2 Learn more about QuickBooks Enterprise at: intuit.me/qbenterprise #QuickBooksEnterprise #QuickBooks #landedcost #shippingcosts #profitmargins The world’s largest workforce works for themselves. We work for them by providing smarter business tools. QuickBooks #BackingYou.