 0. Accounting software quote or estimate form. Get ready to be an office hero with 0. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need then can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in our custom zero homepage. We set up in a prior presentation scrolling in a bit by holding control scrolling up on the mouse wheel currently at one seven five percent zoom in opening the demo file but doing so with the reset item which will reset the data and open the demo file at the same time. Normally we would duplicate a couple tabs at this point and then we would I'm going to hide this open up our financial statements balance sheet and income statement not doing that this time due to the fact the form we're currently looking at which is a quote or estimate will not have an impact on the end financial statements. If I hit the plus button up top and we scroll down we're looking at that quote you might hear be called an estimate for example that's what we're going to focus in on here. First let's take a look at a flow chart to see where it fits in. So I'm going to look at a flow chart here and we're in our customer cycle or revenue cycle where at the end of the cycle we expect our checking account to go up generally. Normally that might happen if you have a simpleized simple kind of system like you're getting paid gig work from a platform you might wait till it clears the bank and then just record the deposit possibly using bank feeds at that point and revenue at that point if you have a cash based system but it's got a cash register you're typically going to have to record the transaction at the point of sale then deposit use the bank feeds to check and if you're on an accrual system which is going to be our major focus here driven by what industry you are in like a landscaper bookkeeper other kind of construction companies typically uh law firms typically they have to do the work first then invoice the customer track the accounts receivable receive the payment and make the deposit the estimate or quote then will typically be the step before we make an invoice if applicable given the the current industry now the kind of industries that might be more likely to have quotes are clearly like a construction industry anything that's more specific in nature meaning it's going to be a custom design type of thing then you might be more likely to use a a quoting type of system so a law firm or bookkeeping firm that's trying to say how how much will it cost to to do this particular job well you might in that case put a quote kind of system in a similar way with like a kind of a job cost system now note that a job cost system in of itself is kind of a specialty area especially for longer term type jobs which are often kind of construction jobs or possibly longer terms law jobs and stuff like that because the fact that they're going to last for a long period of time can kind of distort the revenue recognition processes in terms of completed contract or percentage of completion methods and tracking the jobs can be done in a few different ways so there's there's a projects kind of tool also with zero that can be used for so we're not going to go into a whole lot of detail on that but we'll touch on the concepts related to it remember that if you are a bookkeeper then what you want to do in your business is try to focus on where where's the specific industry that it's going to be where I want to put most of my time which might have some more specialized kind of needs in a long-term job cost or construction area could be one of those specialized industries and one of the specialized areas is the creation of the estimate because if you're making a long-term estimate bidding on jobs then you have to make a competitive yet accurate estimate in order to get the job and be able to execute the job so that your reputation for being able to do that is solid going forward so you can pick up more jobs but even in a more simplified kind of situation you might sell like larger items that are somewhat customized like we're going to go into guitars and you can imagine a situation where they want a particular guitar that's plaid or something like that it's like we don't have any plaid guitars but maybe we can order the guitar however you know we might want to to put in an estimate for how much it's going to cost before we go through the process and possibly get like a down payment in that situation or if if someone is going to like place an order or think about an order that they're placing then you might try to work out how much like they call in and say I want this that and the other thing how much will that cost well one way to kind of tie that out is to create an estimate on how much it'll cost as opposed to creating an invoice once we have the estimate made then we can track to see if it's accepted or not and then once the job actually is done or going forward depending on if it's a process cost system or something like that we can then create an invoice from the estimate so that's what we'll do here let's go back on over and say all right so we've got a quote we would expect the quote then to lead to an invoice if the quote or estimate is accepted so I'm going to go to the plus button we'll create a quote here that's going to be the starting point and I'm just going to make a contact I'm just going to say it's a a a for a new quote create a create a as a new contact so I'm going to say okay and then the date the expiry date if it's not accepted by so I'll keep that as the default number that's populated I'll keep that reference number if we have another reference number which you you might you know apply like a reference kind of system to the quotes that you're putting together currency we're going to keep at the United States branding theme we're going to keep at standard tax exclusive so you've got your tax options tax inclusive no tax so I'll keep that as is and then down here we can add the item so I'm going to imagine someone comes in and asks us for you know particular items maybe they call in or something and we're like okay how much would it cost for these particular items well instead of at making an invoice and then adding them we might make a quote and then say let's add a couple new items here that goes to our items page and I'm just going to say let's say we have a new item and let's say that this is going to be then the item let's say inventory one item that I'm just going to put in my quote and I'm going to say this has our inventory involved with it so we're going to track inventory item so inventory the purchase side of it let's say is uh 500 cost of goods sold account here it's going to be the cost of goods sold well didn't pick it up cost of goods sold and then I'm going to say is it subject to tax I'm going to say it has tax on sales we're going to say and then the price is going to be let's say let's say let's say this is 600 again 600 just so it's and then 1000 down here this is going to be the sales account so that looks good didn't pick it up sales and then tax on sales so that looks good okay so let's say save it I'm going to add some of those inventory items in place just so we have a couple on hand so I'm going to go back into it and say that we're going to have a new adjustment quantity let's say that there's three of them which I said they were 500 and the adjustment account is going to go to cost of goods sold just to put them on the books beginning balance here that's just going to create a journal entry putting the inventory on the books so I'm going to say all right post that adjustment there we have it let's go back to the items so I'm going to go to the business drop down products and services back to the item let's make one more for like an inventory item so let's say new item I'm going to say inventory let's not inventory let's say service item I'll just call it service item generic code or price let's make that 300 dollars account I'm just going to put it to sales sales which is the income account and service item so that looks good I'll save that so now let's go back to the estimate and let's say that we're going to have the inventory item so we know what exactly that's consisting of there it is let's say we had like three of these that they want for whatever reason and then we've got a service item service item and let's say they want didn't I put a price on it I thought it was 300 well let's say two of these at 300 and then it should be going to the sales account of 400 and tax and we're going to say no tax on this on the service item so I'll just generate that and obviously one of the things that that is that could be useful is to calculate that tax because we might see okay yeah you got three of those be 3000 but then the sales tax could be relevant so it's useful then to make the estimate for it and again in a job cost system if you're bidding on a job then you could have a very complex estimate for like a construction job or any kind of custom job that's trying to win the job over in this case we're imagining that someone's basically saying we want this out of the other thing I can make the estimate and at least I'll let it to calculate and then if they say they're going to come in and buy it then maybe I can say okay let's save the estimate we can send it out I'm going to save it and I'm going to mark it and then we can mark it as sent okay and so then if I go to my business drop down and we go to the quotes area notice no transaction was made by that it looks like you would kind of have a transaction it's on the sent area instead of draft now because because it looks like kind of like an invoice but it's just an estimate now if they accept it I can select this item and say okay now they're saying that the estimate is accepted so we're going to say they're going to follow through with it they're going to come in and actually buy the stuff or they're going to take on the job if it was a construction job then back to the business drop down if I go into the quotes that will pull it into the accepted area so now it's been accepted still hasn't created anything on the financial statements balance sheet and income statement because it's still just an estimate we haven't actually done the work when we record revenue we record revenue when we do the work so so now we're going to say okay let's say that we've done the job now and we're going to and we've done the work and we're going to basically invoice them at this point in time so now I can use the a quote to create an invoice so I'm going to say let's go into that create an invoice and mark as so I want to mark as uh as created or invoiced so that the estimate no longer is showing as approved but not invoice so I'm going to say create and then we create the invoice so now it's populated the invoice from the estimate now at this point in time if there's changes to the invoice that differ from the estimate which is quite possible if you're in a construction kind of system depending on the contract you set up you might say hey look this is just an estimate there's so much range that we have within the estimate and then you go through your billing process and so on or if someone comes in and says this is what I want and then they come in and they change their mind and they want something a little different well then you could you know you could change up the invoice at this point in time here obviously and add more lines or whatever you need to do for the invoice and now if I actually record the invoice that's when something actually gets recorded that's when there's going to be an increase to accounts receivable there's going to increase the sales increase in the sales tax decrease in the inventory increase in the cost of goods sold also the sub ledgers for a a a here will be impacted as well as the sub ledger for inventory tracking by item so I'm going to approve it and just check that out I won't go to the reports because we we saw them in in the past complete the tax field so I'm going to say this one says I'll just say it's exempt is that good zero for crying out loud give me a break man okay so now if I go to the business drop down and quotes then now it's moved that from approved to invoiced so that's good because now we're going to say okay that's been completed on the full process and then it'll be on the financial statements as an invoice and we can now track it on the invoices side of things if I go to the invoices there we have the a a a item here uh and it's under it's under the awaiting payment area of course so there it is and we can try to receive payment on it in the future and then we can also track that in the contacts and the customers and we're looking for a a a now a customer going into that we've got the detail down below so we've got the quote that was created and the invoice which is currently awaiting payment that we can discuss with a client there so it'll depend on what kind of industry you're in in terms of how exactly you're gonna you may or may not use the estimates and if you get into like a job cost system with long jobs and whatnot then you're going to get more into like a specific more detailed job cost system and you could try to integrate projects into a job cost system you can use a class tracking possibly method of going into that we've got so we won't we won't dive too much into detail because that's going to be a specialized area we may be able to go in I think we might have a courses on the specializations of job costs and projects in and of themselves because again it's a whole it's a whole specialty area in and of itself and if you are a bookkeeper you you do want to be thinking about okay what kind of clients do I want to pick up do I want clients that are service businesses what kind of industry do I want them in if they're if they're tracking inventory do I want to deal with that how am I going to set up my payroll if they're if they have payroll which we'll talk about more and do I want to be taken on people that have construction companies that have a job cost system especially if it's complex with percentage of completion or completed contract methods differing from normal revenue recognition so just some things to keep in mind so that's that one