QuickBooks Tips

Is It Time to Adjust Your Pricing? How QuickBooks Can Help

10/12/2020

Changing the prices of your company’s services and inventory items can solve one of two problems, depending on why you’re looking for a solution. Say your materials suppliers have upped their prices. You may choose to increase your affected products to maintain your profit margin. Or maybe an item or service has not been moving well. A drop in price might trigger improved sales.

Those examples, of course, are simplifications of what needs to be a thoughtful, studied process. They’re critical business decisions that should be made with the guidance from your trusted ProAdvisor. We’re not experts in just QuickBooks – we also understand the flow of profit and loss, and we can be valuable allies in your battle for continued growth.

We’ll explore the tools that QuickBooks offers to help simplify price changes once your decisions have been made. They’re not overly difficult to use, but we want to ensure your intentions are carried out accurately. And there are related inventory issues that may be impacted by your modifications.

First Steps

First, make sure that QuickBooks is set up to accommodate price levels. Click Edit | Preferences and select Sales & Customers in the left vertical pane. Then click the Company Preferences tab. You’ll see the window shown in Figure 1.

Is It Time To Adjust Your Pricing How Quickbooks Can Help

Figure 1: Before attempting price level changes, be sure the Use price levels box is checked. If it’s not already checked, click on the box next to Use price levels. Then click OK.

Multiple Options

QuickBooks offers options related to item price changes. You can simply alter the cost of one item, or you can modify several at once. Your adjustments can be in the form of either percentages or fixed amounts.

There are two ways to get to the price-changing window. You can click the Customers menu, then Change Item Prices. Or you can select the Items & Services icon from the home page. If you do the latter, simply open the Activities menu at the bottom of the screen and select Change Item Prices to see a window similar to the one shown in Figure 2.

Is It Time To Adjust Your Pricing How Quickbooks Can Help

Figure 2: The Change Item Prices window displays lists of your products.

By opening the drop-down list below Item Type, you can select the desired type of product: Service, Inventory Part, Inventory Assembly, Non-Inventory Part, or Other Charges.

Targeting Your Changes

Once you’ve selected the right type, click in the column next to the item(s) you want to change. A check mark will appear. If you want to increase or decrease the prices of all of them, click next to Mark All at the bottom of the screen, as pictured in Figure 3.

Is It Time To Adjust Your Pricing How Quickbooks Can Help

Figure 3: Click the box next to Mark All if you want to change the prices of all entries.

Based on your discussions with us, you should now know how you want to adjust the selected price(s). You may have just decided on a new price, in which case you can simply enter it in the New Price column.

Here’s an alternative. In the box to the right of Adjust price of marked items by (amount or %), enter either an individual number to increase by that amount, or a number with a % sign after it to up it by that percentage. To decrease the cost, enter a negative number.

The next step is a little trickier. If you simply want to alter the price of an entry based on its current sales price, leave the Current Price option showing in the next box. But if you want to change it based on its Unit Cost, you’ll have to consult us or do some digging to learn what that is.

If you want the resulting numbers to be rounded up, click the arrow next to Round up to nearest. When you’re satisfied with your work, click Adjust to see your changes reflected in the New Price column. Make any desired modifications, then click OK.

One Exception

Of course, no existing transactions will be altered. But if any of your newly priced items or services occur in memorized transactions, you’ll have to edit them. Go to Lists | Memorized Transaction List. Highlight the affected transaction, then right-click and delete it. Enter a new transaction and memorize it again. If you know only that transaction will be affected, you can select Edit Memorized Transaction instead of deleting it.

Don’t know where all of those items occur? Go to Edit | Find to locate them as shown in Figure 4.

Is It Time To Adjust Your Pricing How Quickbooks Can Help

Figure 4: You can easily find items in memorized transactions using the Find tool.

Making price changes in QuickBooks – even global ones – isn’t terribly difficult, but it involves a business decision that’s best made in conjunction with us. It can lead to increased profitability no matter which direction you go, as long as you take into account the issues and potential outcomes involved.

Ask a Question

Find comfort in knowing an Expert in accounting is only an email or phone-call away.

We Are Here to Help

We will happily offer you a free consultation to determine how we can best serve you.

Blog

Attestation Services: Compilations, Reviews, and Audits CPAs offer attestation services as unbiased options

frequently asked questions

  • What Is A Virtual CFO & How Can It Transform My Business?
    • a. A Virtual CFO can be a much-needed sounding board, coach, and guide. Outsourced Virtual CFO is generally not just one person, but an experienced team of professionals providing a full-stack Accounting and Finance Department at a fraction of the cost that it would otherwise cost a business to hire even just one full-time CFO internally. The right virtual CFO service team, such as the one at Perpetual CPA, can deliver timely, detailed, comprehensive financial reporting, interpret the financial data, prioritize recommendations, give expert guidance on how to execute those recommendations, and ultimately give a better path to business success.
  • How can a Virtual Accounting Department help small businesses scale and grow?
    • a. A growing number of small businesses are opting to outsource services such as IT, human resources, or accounting. The benefit of a Virtual Accounting Department is that the company can reduce or increase services to accommodate current business needs. Because the service provider has multiple clients they can absorb fluctuations in workflow more easily than the average small/medium business can on its own.

      b. A Virtual Accounting Department can integrate with a company’s own accounting department to create a blended solution or provide a full-stack accounting department, including Accounting Staff, Manager, Controller, and Virtual CFO. By using a Virtual Accounting Department Small business owners don’t have to worry about hiring, training, figuring out compensation, and payroll compliance for the internal accounting team. Also as the business grows and new and more complex accounting and tax issues come up, the outsourced Virtual Accounting Department can provide all the needed expertise to facilitate continued business success.
  • What are the benefits of hiring a CPA firm?
    • a. Certified Public Accountants (CPAs) do a lot more than just crunch numbers and prepare taxes. They provide valuable expertise and strategies to help businesses and individuals achieve their business and financial goals. A CPA firm can help small businesses with management financial reporting, tax compliance, strategic business advice, and much more. Firms like Perpetual CPA, that specialize in helping small and medium-sized businesses achieve growth, can also provide Virtual CFO services, that help the business owners have the foresight into the short-term future cashflows and be able to more successfully navigate their business performance.
  • What are the best strategies for small business growth?
    • a. A business growth strategy is, simply, a plan of how a business gets from where it is today to where it wants to be in the future.

      b. Some of the questions to consider when coming up with a growth strategy are:
      i. Where will the business get new customers from?
      ii. How will the business expand into new markets?
      iii. What new products could the business offer?

      c. In reality, what happens with many small businesses, is that they generally achieve a specific level of business activity or sales and then the business growth trend flattens. In those cases, working with a firm like Perpetual CPA, which provides Virtual CFO services, can help small businesses avoid stagnation. Virtual CFO services, aside from providing timely accounting and tax reporting, can also provide valuable insight into the current performance of the business, as well as, foresight into the future cash flows for the business. Perpetual CPA Virtual CFO team helps small businesses interpret their financial information and come up with business strategies to help improve business performance and achieve growth.
  • What are the best strategies for small business risk management?
    • a. A risk management plan helps a business develop a detailed strategy to deal with certain risks that are particularly important for the businesses’ success.

      b. For many small and medium-sized businesses, the easiest way to develop and implement a business risk management plan is to work with a reputable CPA firm, such as Perpetual CPA. Large corporations invest a lot of resources and time into managing risk, which is a material factor that allows those large corporations to continue to generate billions of dollars in revenue every year. Small businesses, however, almost never manage any business risks, which is the major reason that over half of all the small businesses do not survive for more than 5 years. Generally, small business owners are not experienced corporate business professionals and lack the needed business knowledge, yet they often have to wear many hats while trying to get their businesses off the ground. In those situations, a CPA firm such as Perpetual CPA, can help small businesses better manage tax compliance risks, cash flow, internal controls, business administration, financial reporting, and much more.
  • What is Strategic Advisory and Virtual CFO? / How do Strategic Advisory and Virtual CFO services work?
    • a. When small businesses start spinning wheels, it is a good time to consider hiring a reputable CPA firm, such as Perpetual CPA, which can provide both Strategic Advice and Virtual CFO services.

      b. As a strategic advisor, the CPA firm will work with business management to improve the effectiveness and profitability of the business. They will look holistically at the business and find ways to operate the business more efficiently, increase customers through additional or improved marketing or improve customer touchpoints and service.

      c. As a Virtual CFO, the CPA firm is like a part-time version of a traditional CFO or Chief Financial Officer plus a full Accounting support team. They perform the tasks that in a larger organization would be performed by the CFO, Controller, and Accounting Staff such as preparing and overseeing the budget process, identifying and analyzing current and future trends, and developing strategies for the business growth.
  • How can timely financial visibility and management reporting help with better business decisions and growth?
    • a. A simple way to a successful business is to prioritize the timely financial visibility and management reporting as it means:
      i. Timely financial information and analysis are essential for making informed decisions, evaluating your company’s results, improving financial performance, and ensuring you are on the path to meet your strategic goals.
      ii. Management reporting is a source of business intelligence that helps business leaders make more accurate, data-driven decisions. But, these reports are most useful if they are available timely and the management receives proper interpretation of the business financial information.

free initial 30-minute consultation

    © Perpetual CPA 2020   •   Site Map   •   Privacy Policy   •   Disclaimer   •   Powered By   Designed by Dot Com Media Moguls