Episode 8 – Polymath Video Tutorial Series: Changes to QuickBooks Online – Estimate

Inestimate this episode of the Polymath Video Tutorial Series: Changes to QuickBooks Online we cover how to use QuickBooks Online to create an estimate to send to your customers.  We also show you how to take the existing estimate and turn it into an invoice once you get approval from you customer.

 

 

Make sure to check out all the other great videos in the Polymath QuickBooks Tutorial Series:

Transcript:

Welcome viewers to this Polymath Bookkeeping Instructional Video. I am Ingrid Edstrom of Polymath LLC, and Ashland Bookkeeping Services. Today we will be looking at how to create an estimate using QuickBooks Online. Many people have businesses where it’s necessary to give your potential customers an idea of what their costs in their project could be before they agree to do business with you. QuickBooks can assist you in creating quality, professional estimates that will help you in the process of closing business with your clients.

[expand title=”Continue reading…”]If you’re just joining us for the first time, make sure to check out the other videos in this series. If you’ve already seen Episode 5, How to Create an Invoice, this process will look very familiar to you. Estimates are often most important in the construction industry, where they’re commonly called bids. However, the estimate tool can also be used in a similar way to a sales order, for those of you who are used to using the sales order tools from QuickBooks desktop. I know that for my business I use sales orders to track the work that I’ve done for a client over the course of the billing period. Then I turn that sales order into an invoice once the billing period is complete.

The same thing can be done with an estimate. This is the page where you will create and edit your estimates. Once your estimate is ready to move forward you can easily turn it into an invoice with the click of a button. Similar to sales receipts and invoices there are two ways to get to the create estimate screen. The first is from the customer screen. Find and select the customer that you would like to create an estimate for. Then on the right hand side of the screen use the create new dropdown menu and select estimate.

The second way to get to the estimate screen is by clicking the plus sign or create menu at the top of the screen. Then click on estimate from under the customer heading. If you access the estimate form from an existing customer’s page, all of that customer’s billing information will be filled in for you automatically. If you access the create estimate page from the plus sign at the top of your QuickBooks Online then you will need to choose your customer from the dropdown menu, or set up a new one from within the estimate page.

Next you will choose or enter the products or services your customer is considering purchasing from you. If you already have all of your products set up in your system, you can simply select the product they plan to purchase. Otherwise, you can enter a new product and you will get a pop-up to set up that new products details. You can watch Episode 4 of this series for some important pointers to keep in mind when setting up your product list.

If you scroll down on your estimate page you will see an area where you can add sales tax, apply discounts, and enter a custom message for your customer. At the bottom of the screen you’ll see an option to save and send if you are ready to send the estimate to your client. This allows you to e-mail the estimate directly from within your QuickBooks to your customer. If you’re not happy with the way that your estimate looks, or if you just want to add some flair, such as your company’s logo, click customize at the bottom of the screen and you can modify the estimate to make it exactly how you would want it to look.

One of the great tools about QuickBooks Online estimates is the ability to use it to track the estimates progress. You can see the estimate’s status underneath the customer’s name. Here you can make the status pending, accepted, closed, or rejected. When you make the estimate accepted you can also record the name of which representative at your customer’s company accepted the bid and the date that you received its approval.

When the estimate has been approved you can simply click copy to invoice, and QuickBooks will automatically transfer all of the information from your estimate over to an invoice within your QuickBooks Online. When you do this QuickBooks will link that invoice and the estimate to transactions so that you can easily refer between the two.

If you’re watching this series in order you are now fully versed in how to manage the money coming into your business. You can create a sales receipt, create an invoice and receive a payment against it, and then create a deposit when you’re ready to go to the bank. In the next few videos in this series, we will look at how to track the money going out of your business. We will enter expenses, enter bills, and pay bills. Stay tuned for more exciting and informative videos coming soon.

I am Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping Services. Thank you for watching. [/expand]

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