QuickBooks Online 2022 rental income set up serve as items get ready because it’s go time with QuickBooks Online 2022. Here we are in our gig rake guitars practice file, we set up with a 30 day free trial holding down control scrolling up just a bit ticket to the one to 5% currently in the homepage, otherwise known as the get things done page.
00:28
In the business view, as compared to the accounting view, if you wanted to change to the accounting view, it’s something you can do by going to the cog up top and switching to the accounting view down below,
00:40
we will be switching back and forth between the two views either here or by jumping over to the sample company file currently in the accounting view, back on over we’re going to open some tabs to put some reports and right click it on the tab up top to do so duplicating it back to the tab to the left, right clicking again and duplicating it, we’re going to be opening up reports.
01:03
Before we do let’s take a look at where those reports are located in the accounting view. It’s in the reports on the left hand side. If we go back to the business views, second tab, we’re looking at the business Overview This time,
01:17
and then the reports on the left hand side, closing the hamburger opening up our favorite two reports balance sheet income statement starting with that big B s balance sheet. So we’re going to go up top and do the range and changing a 101 to two to 1231 to two and run it.
01:41
And then let’s go to the tab right tab right. And business overview again, reports close enough to hamburger profit and loss the p and l do in the range change once again, a 101 to two to 1231 to two and run it. So now we’re going to imagine back to the balance sheet holding down control scrolling up a bit, that we have our guitar shop and we’re thinking we’re going to take some of our equipment and be able to rent it out for rental purposes, possibly for people that want to start, say a band or have a band basically for a weekend or something like that.
02:21
So we’re going to set up our rental kind of items, so that we can provide that service as well. So this is an area that will allow us to collect a security deposit because we’re imagining that if they’re going to have the rental items, they’re going to we’re going to want them to give us money upfront.
02:38
So we’ll have a prepayment kind of situation for them to basically rent the items or to reserve the items to be rented. And so we’ll have that kind of system set up. And we also want to think about the items that we would set up with regards to a system like this. And that’s always something that you want to kind of consider your underlying items in terms of how you’re going to be setting them up.
03:02
In other words, if I go back to the first tab, when we’re imagining that, that someone’s going to come in and ask for basically equipment, guitar equipment, amps, drums, and so on, that they can rent for some timeframe.
03:17
That would mean that we might first make an estimate, they might say they call in they want the equipment, you know, next week or something like that, we say okay, let’s make an estimate, possibly.
03:27
And then possibly let’s, let’s get a down payment upfront, receiving the payment before we do the work at that point in time based on the estimate. And then possibly when they come in, we can charge them at that time possibly then charging the invoice at that point in time.
03:43
In order to do the estimate and the invoice, we’re going to need to set up our items that’s going to make the process as easy as possible. When we’re setting up our items.
03:52
We’re thinking service items that will be populated in the estimate and the invoice. And then how do we want to do that do we want to set up a different a different service item.
04:01
For example, for each guitar that we have each drum set that we have that they would be putting together, which might be a little bit more tedious to do or maybe we have some set set, we might say hey,
04:14
if you have a standard band set, which includes these range of stock items that you might have some ability to choose between, then that’s going to be our basic band set.
04:25
And then if you want to do add on or make changes within that basic set, possibly getting a larger amp to get louder summon another guitar, then you can add on top of that.
04:36
So that’s kind of a common type of scenario that you might see we got the baseline set, if you want to rent something, here’s what it calls for the baseline set, you can’t really go below that. You can have up to basically two guitars, a drum set and bass and an amp, you know and all that kind of equipment for it.
04:54
And that’s the baseline. If you just want one guitar it’s gonna we’re still going to charge you the baseline amount that might be the He kind of set it up.
05:01
And then on top of that, if you wanted to add like another guitar, or get a super powerful amp or upgrade some of the equipment, we might have set ranges that we can basically include over and above the baseline.
05:14
So that’s how you might want to, you might start to think through it. So if we were going to go through this, we’re gonna say, Okay, well, let’s go to the get paid and PE area. And we’re going to go down to our products and services.
05:27
And if we were in the accounting view, we would be going into the sales area, and into the products and services. And so then I’m going to say, Okay, so we’re going to set up our products and services, close up the hamburger, and then it’s going to be a service item we’re going to set up so let’s set up the baseline service item, I’m going to say it’s a new item, simply a service item that we will have.
05:50
And I’m going to say that this is going to be, let’s just call it band set, number one, rental, or something like that, the standard band set. And then I’m going to go in the description.
06:04
There it is, and we and we might include in the description, like whatever it is to guitars, guitars, one drum set and, and lift fire amplifier, I think I’m not sure if I spelled that right. But that’s what I’m going with,
06:26
we’re gonna say 2000, this is I’m just making up the numbers for 2000. Not sure what would be a reasonable price for for a rental of a band set. And then and you might even, of course, put the days for a weekend for two days or whatever the whatever the range would be, we’re gonna say it’s a non taxable item.
06:43
So I’m just going to try to, to do that easily down here by just saying non taxable, and then save it, that means that subject to sales tax that we’re setting up, and there it is.
06:54
So let’s say save and close that. So we can use that to populate our invoice and estimate. And actually, let’s make one more change to it as well on that rental income. Notice I set it up as a service item. So if I went to the income statement holding CTRL down scrolling up a bit, it would then put it into this service item here.
07:14
And you don’t want to get carried away with the different types of items that you have on the income statement because like we can break that out in the sub reports. So we don’t want to basically have like another income account.
07:25
For example, for every every rental item that we have every piece of guitar, for example, or every kind of guitar that we sell.
07:33
And we don’t have want to have a separate income line item. For any for every of our customers either. Those are two tendencies that we tend towards often people tend towards to want to put all that detail on the income statement. That’s not really what you want to do.
07:47
But some of the larger categories, the big groupings of categories, we might break out, and we could put them under a subcategory of the services. So in other words, in the service category,
07:57
I might break out like the guitar, the guitar sales, for example. As opposed to other types of services, we might provide that or general type of, of services, we might want to break out, in this case, the rental service or the rental type of income in another service item. So let’s imagine that let’s make another income account on it. So I’m going to go back to the first tab.
08:20
And let’s go back into our banned set number one and edit it. Let’s do some editing on it, instead of just putting it into the service item, I’m going to try to add an account in the Business View,
08:31
which is is always a struggle, although it gave they gave me the standard, the standard setup. So that’s good. Okay, so we’re gonna say it’s an income type account. And I’m going to say that it’s an other primary income.
08:46
And I’m going to call this this is going to be the equipment rental income, I’ll just call it equipment rental income, we could make it a subcategory of the services if we wanted to. And, you know, that could be a useful thing. But I’m not going to I’m not going to do it.
09:02
We’re gonna say save and close it right there, save it and close it, there it is. And so when we post something to it, it’ll go to the income statement and into that special, special new revenue account.
09:15
Alright, let’s do another one. Let’s say well, what if what if they want like a more something outside the standard band set, typical things we would expect say like adding a guitar or something like that they want three guitars so they can, you know, sound more. With more guitars, or maybe a backup guitar, they’re worried that the guitar is gonna get broken or something a string will break.
09:39
So we’re gonna say well, if they wanted to add, add one guitar to rental or something like that on the description, added guitar to the rental. We’re gonna say that costs another $50 per guitar. So if you want like two backups, you can Another $100 for the devil backup in case strings break things happen, or you just got four rock stars up there that have their own guitar. And this is going to be for what did I call it?
10:14
Where’s my rental equipment rental? There it is, it’s not going to be taxable for sales tax, I’m just going to see if I can do that down here by saying it’s not taxable. And so there we have it, let’s save it and close it.
10:28
And let’s add a one more here. Let’s say the other thing we would anticipate people would want is possibly a more powerful or another amplifier, maybe, because they want to make sure they’re super loud. So we’re gonna say this is going to be add amplifier to rental, to rental,
10:50
let’s just keep it at that. Maybe not the most, most descriptive descriptors are the bestest descriptors. But that’s what we’ll have it we’ll say that’s $40. Again, I’m not these prices, of course, I have no idea.
11:03
But you get the idea. It’s practice problem, practice problem, edit the sales tax. That’s a good price for a rental of an amplifier. And we’re going to go down here and say non taxable once again. So there we have it. So now we’ve got our items set up.
11:23
So in a future presentation, we’ll start to populate these items. And we’re going to start to think, Okay, first thing we might do, someone comes in with an estimate, I won’t record it right now.
11:31
But we can make the estimate based on these items we set up and what they want, and we could schedule the time that they that they think they’re going to that they want to rent it so that we can have the equipment ready, we don’t double booked the equipment and whatnot.
11:43
And then when they come in, we can basically create the invoice in essence what and when we have the estimate we can create we can collect the down payment to reserve the spot reserve the rental spot for it so and then when they and then we can do that with the received payment.
12:00
We will look at the two methods for unearned revenue. We won’t look at the two methods but you can apply either of the two methods will apply method number one that we looked at for unearned revenue.
12:10
And then we can then apply the invoice or create the invoice when they come in. And we actually do the work providing the rental we’ll see those in future presentations. But let’s take a look at the the estimate just to see how these will populate and make sure they’re populating properly.
12:27
So if I hit the drop down down here we’d have we’ve got the rental rental stuff. So we got the Add guitar descriptions. So there we have it, everything looks like it’s populating just like it should. I’m going to close that out. I’m not going to save it. And next time, we’ll continue on with the epic story of good great guitars.