Maximizing QuickBooks
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The document is a presentation about maximizing Quickbooks. It provides an overview of setting up and using key Quickbooks features such as the chart of accounts, lists, reports, automation, and benchmarking. It discusses automating billing, invoicing, and payments. It also covers customizing reports, using classes to track different business units or departments, and benchmarking a business against competitors. The presentation aims to help users better utilize Quickbooks tools to improve business performance through better measurement and decision making.
Maximizing QuickBooks
- 2. Links for this and other presentations: www.LeanTeams.ca/resources www.Slideshare.net/leanteams
- 3. Invoicing and receivables. What we will cover today: Setting up the QuickBooks environment. Reports and reporting tools. Bills and payables. Banking with QuickBooks. 2 3 4 5 6 1 Automation and special functions.
- 4. Better measurement means better decisions. Better decisions mean Better performance.
- 5. Bills. Invoices. Checks. Increase and decrease vs. Dr and Cr. Form-Based Software
- 9. Chart of Accounts Products and Services List Customer List Vendor List 5 Important Lists Employee List
- 11. Often confused with/called the “general ledger.” A list of your company’s activities separated into “accounts.” You can have as many accounts as you like. Account types are prescribed and unchangeable. Chart of Accounts
- 12. A. Income B. Equity C. Loan D. Fixed assets E. Other current assets F. Current liability G. Cost of goods H. Expense I. Bank J. Credit card K. Other income L. Long term liability M. Accounts receivable N. Accounts payable ___A line of credit. ___ Direct costs (Ex. flour to go in the cake). ___ Inventory (Ex. candy you sell, and want to track). ___Things you buy (see two above exceptions). ___Your credit card account(s). ___ Money the owners put into the business. ___ Money you earn. ___ Money you owe and expect to pay within a year. ___ Significant items (land, truck, machinery, etc.). ___ Checking, savings, or petty cash account. ___ Bills you need to pay. ___ Money you expect your customers to pay you. ___ Non-core revenue (interest, etc.) ___ Money you expect to pay off over more than one year.
- 13. P & L Income Sales + Other Income _- Discounts Net Sales - Cost of Goods Sold Gross Profit - Expenses · Payroll ___· S, G, and A Expenses Net Profit Assets Bank Accounts Fixed Assets Other Current Assets Liabilities Loans (Long-term) Credit Cards Other Liabilities Balance Sheet Equity Shareholder Contribution Retained Earnings Dividends
- 14. How does your business make money? How does your business spend money? What does your business own? What (or who) does your business owe? Make Your COA A-Okay
- 15. Also called the “Item list”. A list of things your company buys or sells. Products, services, shipping charges - anything you want to detail on an invoice or a bill. Multiple items can be mapped into one account. Products and Services
- 16. Flat fees • Service call • Dump run fee Resale of items • Kohler K-596 • A.S. Champion • PVC (10 foot) Hourly services • Regular $65/hr. • Weekend $120/hr. • Superbowl $300/hr. Income Service income Sale of product Expenses Cost of goods Wage expense Vehicle expense Tool rental Monthly Profit & Loss Report
- 17. Next steps when you get back to your office: 1. Set up your chart of accounts. 2. Make sure your items are mapped correctly.
- 18. Can be grouped by customer type. Customer records contain pertinent information related to specific terms and data. Records can further be broken down by jobs. Fields for custom invoices and statements are pulled from the customer record. Customers
- 19. Fully customizable in QB Online and Desktop. Automatically brings in delayed charges. Can be viewed online – not in QB Desktop. Even better when paired with QuickBooks payments. Invoices
- 20. Online vs. Desktop Pros: • Automation apps and AI. • Access from anywhere. • It’s cheaper. • R&D $ are going here. Cons: • Not as many custom fields. • Less keyboard shortcuts. • Doesn’t look like desktop. Pros: • It is at the peak of dev. • Keyboard shortcuts. • It’s… familiar. Cons: • Requires physical place. • ALL manual data entry. • No more development $. • It is a time suck. If you ever want to use automation get off desktop
- 21. QuickBooks Only - QuickBooks Online Plus subscription. - 50% off retail price for 5 years. - Free conversion from QuickBooks desktop. $25/mo. $75/mo. Accounting Pack - QuickBooks Online Plus. - Automated receipt capture. - Automate receivables by direct debit. - Automated payables by EFT. - Free setup session.
- 22. A.R. Automation Did you feed your bot this
- 23. IFTTT is automation. Automation is really human augmentation. Augmentation is about creating rules. What is Automation?
- 24. AKA “memorized transactions” or “recurring”. Invoices, bills, journal entries - can be memorized. In QuickBooks you can memorize sales transactions, in other programs… not so much. You can also memorize the collection of payment in certain cases. Automatic Invoicing
- 25. Like an invoice and a payment put together. Only use these when there is no wait time between creating the invoice and getting paid. Perfect solution to retail sales (Ex. Square POS). This can set your revenues on complete autopilot. Sales Receipts
- 26. All payments go to “Undeposited Funds” by default. All payments must be applied towards a customer invoice. Helps ensure that payments are applied correctly and that banking matches accounting. Do not confuse issuing a payment receipt with creating a sales receipt. Payments & Deposits
- 27. A.P. Automation.
- 28. What you receive from a vendor/supplier. Creates a future “payable”. Usually has the words “invoice” at the top. Bill entry and bill payment are possibly some of the biggest time sucks in a bookkeeper’s life. Bills
- 29. Like a bill and a bill payment put together. Usually these are credit or debit card transactions. Recognized immediately, unlike a bill. Often entered after the fact… and without a receipt. Expenses
- 30. Print, code, enter, and stamp. The Payables Process Receive a bill in mail, or email. Present cheque with invoice for signature. Wait until it is near due date. Print cheque. 2 3 4 5 6 1 Mail the cheque.
- 31. Bill Activity • Who is it from? • Where does it go? • Does the amount get split? • Is it billed to a customer? • How is it entered now? • How long does that take? ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ Can you put this in IFTTT format?
- 32. Bill Activity • Who is it from? • Where does it go? • Does the amount get split? • Is it billed to a customer? • How is it entered now? • How long does that take? Alpine Heat and Air______ 5241 Building Maintenance No____________________ No____________________ Rec. bill, enter manually__ 4 minutes______________ Can you put this in IFTTT format?
- 33. If a bill comes from Alpine Heat and Air, Then scan amount and code it to 5241 Building Maintenance.
- 34. Bills can be emailed to you, scanned, and even fetched. Bills are digitized by OCR – Optical character recognition. Bills are automatically entered into QuickBooks. These are then paid by EFT after being approved. Take a step into the 2000s
- 36. Next steps when you get back to your office: 3. Put one receivable process on autopilot. 4. Set up one automation workflow (Ex. bill fetch > OCR > QB entry > ACH payment).
- 37. QuickBooks Only - QuickBooks Online Plus subscription. - 50% off retail price for 5 years. - Free conversion from QuickBooks desktop. $25/mo. $75/mo. Accounting Pack - QuickBooks Online Plus. - Automated receipt capture. - Automate receivables by direct debit. - Automated payables by EFT. - Free setup session.
- 38. Reporting.
- 39. Nothing puts your finger on the pulse of a business like doing account reconciliations. Beginning balances (QB and statement) must match. Troubleshoot by comparing separate parts (total deposits, total transactions, total withdrawals). Once you “Reconcile Now” it is painful to go back – the time you spend on this task is worth it. Reconciling Accounts
- 40. Requires bank feeds into QuickBooks. QuickBooks searches the last 90 days for matches. If no match exists QuickBooks searches for a bank rule. Matching automatically marks invoices or bills as paid. Matching Bank Feeds
- 41. Better measurement means better decisions. Better decisions mean Better performance.
- 42. Used to group business activities into separate departments based on differing factors. Could be used for different locations, business units, departments, or sources of funding (NFPs). Provides an additional level of reporting. Excellent tool for analysis and decision making. Class Tracking
- 43. Revenues $1,000,000 Cost of sales -750,000 Gross margin 250,000 Administration -100,000 Profit before taxes 150,000 Taxes -20,000 Net Profit $130,000 Standard Income Statement
- 44. Product Line A Product Line B Total Revenue $750,000 $250,000 $1,000,000 Cost of Sales $520,000 $230,000 $750,000 Gross margin $230,000 $20,000 $250,000 Administration $100,000 EBT $150,000 Taxes 20,000 Net profit $130,000
- 45. Product Line A Product Line B Total Revenue $750,000 $250,000 $1,000,000 Cost of Sales $520,000 $230,000 $750,000 Gross margin $230,000 $20,000 $250,000 Administration $70,000 $30,000 $100,000 EBT $150,000 Taxes 20,000 Net profit $130,000
- 48. $- $2,000.00 $4,000.00 $6,000.00 $8,000.00 $10,000.00 $12,000.00 $14,000.00 New Construction Labor Remodel Labor New Construction Materials Remodel Materials New Construction Subcontracting Remodel Subcontracting New Construction Other Remodel Other Gross Profit Analysis: Income to COGS Income Cost
- 49. $- $2,000.00 $4,000.00 $6,000.00 $8,000.00 $10,000.00 $12,000.00 $14,000.00 New Construction Labor Remodel Labor New Construction Materials Remodel Materials New Construction Subcontracting Remodel Subcontracting New Construction Other Remodel Other Gross Profit Analysis: Income to COGS Income Cost
- 50. Businesses that make a plan and track against their plan grow 30% faster.
- 51. Sell new construction materials at cost. Estimate new construction labor at +20%. Plan: 20% decrease in new construction sales leads to a 38% increase in net profit. 1 2
- 52. Better measurement means better decisions. Better decisions mean Better performance.
- 53. Balance Sheet Profit & Loss, or Income Statement Aging Report Cash Flow Statement Main Reports
- 54. Customized reports can be saved as templates. Saved reports can be scheduled to email out. Management report templates can be saved. Once a budget is input, a regular Budget vs. Actual report can be saved and scheduled. Automated Reports
- 55. Put all revenue and costs for specific jobs together in one report. Includes time (both billable and non-billable) in the costs section. Businesses can track and receive reports on multiple projects at the same time. Only available in QuickBooks Online. Projects
- 56. Knowing the balance of your bank account is not the same as cash flow management. Cash flow and budgets are often conflated. In reality: Outstanding ARs – Outstanding APs + Bank balance = Cash Flow. That only takes you 30-60 days out, but it is reliable. Cash Flow
- 57. One of the most stressful responsibilities of a bookkeeper. You can get 99.99% of it right, but if there is .01% wrong it will be embarrassing/painful. Remittances cannot be late; not even one day. ROEs andT4s must be correct and on time. Who Loves Payroll?
- 58. All employees are paid by direct deposit. Payroll remittance amounts are auto-deducted and paid – on time, every time or it is not your problem. ROEs are produced with one click of the mouse. T4s are prepped, sent out, and submitted to CRA. Payroll Simplification
- 59. Benchmarking.
- 60. A tool to measure your business against your competitors within your region and industry. You can compare your revenues, costs, average days to collect, average days to pay, etc. Have you ever wondered how your competitors operate? To see the company website that provides this service click here. Benchmarking
- 62. Next steps when you get back to your office: 5. Turn on the class feature and/or enter at least one new class. 6. Build one customized report and schedule it to be emailed every month.
- 63. Set up your chart of accounts. Ensure correct mapping of all your items. Put one receivable on autopilot. Create one automated payable workflow. Six Things To Do: Turn and/or use the class feature. Build and schedule one customized report.
- 65. Link to this presentation: Wade Farquhar www.LeanTeams.ca/resources www.Slideshare.net/leanteams
Editor's Notes
- #12: Set up a new account in QBO and QB Desktop.
- #13: C, G, E, H, J, B, A, F, D, I, N, M, K, L
- #15: Set up a new account in QBO and QB Desktop.
- #20: Activity: Demonstrate QuickBooks invoice customization. Activity: Show the process from Receipt Bank to invoice, to email, to payment – You can’t do that with QuickBooks Desktop.
- #26: Activity: Demonstrate creating a sales receipt, entering payment information, and making it a recurring transaction. Activity: Demonstrate Hubdoc fetching an invoice, sending it to QuickBooks Online, creating a sales receipt, sending it to the customer, and automatically charging them.
- #30: Accounts payable is a short-term liability account, so technically bills are kinda like little loans.
- #41: Activity: Demonstrate setting up a bank feed. Activity: Demonstrate setting up a bank rule. If no rule exists QuickBooks will make suggestions based on historical transactions.
- #55: Activity: Demonstrate setting up an auto-emailed report.
- #56: Activity: Demonstrate the project center
- #58: Not a lot of training out there fore payroll.
- #59: Not a lot of training out there fore payroll.