Quick Books

Dec 10, 2009

Overview

Welcome to QuickBooks for Business Success Seminar
Seminar Instructor: Vicki Perryman
Sponsored by: Tri Counties Bank

School of hard knocks
QuickBooks fixer
Common Attitudes: Too busy for accounting, work on marketing, products and services.

• Embezzlement via the books - 50% family members - 50% book keepers
• Dead entry individuals
• Total transparency
• CPA does the taxes, they are too busy to do financial analysis during tax session

• Housing
• Education
• Health

Tax > Have a life
Accounting
Double entry book keeping
Too and From
Profit and Loss
Balance Sheet
Cash-Flow Quadrant
by Robert T. Kiyosaki

• Employee, position is the worth
• Self-Employed, skills is the value. Market dictates worth, time year 7, Capped income
• Business Owner, Manager, loss of control, quality, customer relationships
• Investor, invest in others, life like a proper

Four Levels of Financial

Self-Employed Tendencies
Games with Books : Hide Cash | Trade Income | Maximize Expenses
Gross Sales - Expenses = Net Profit
90% of business play games with their books
Stated income loan - sub prime loans - handshake loans

Profit & Loss

• Did I make money?
• How did I make money?
  • Where did the money come from?
  • Where was it spent?

   Income                100,000   100%
 - Cost of Goods Sold    -70,000    70% Directly related to income
 = Gross Profit           30,000    30% < GPM
 - Expense               -20,000    20% Overhead + Assets + Loans
 = Net Profit             10,000    10%

Pay attention to the details

Expense / Gross Profit Margin (GPM) = Income

Profit Margin / Cost = Mark-Up

Four Strategies to Increase Profits:

• Increase volume of sales - old and new
• Cut Cost of Goods Sold - discounts, bulk, labor
• Raise Gross Profit Margin - mark-up
• Cut Overhead Expenses - Price creep, water cooler, television

Very detailed expense line items
Debt expense
Dirty Underwear

Balance Sheet ( Since the start of business )

• What do I Own? What do I Owe?
• How did I use my Net Profits?

   Assets : What I own
     Bank
	 Fixed Assets
     AR
     Inventory
	 Accumulated Depreciation(-)
 - Liabilities : What I owe
     AP
 = Equity : Worth
     Owner's Investment
     Owner's Draw
     Retained Earning's ( All previous fiscal years )
     Net Income ( This fiscal Year )

 Profit & Loss
	 Income
	 Expenses
		Office Supplies
		Depreciation - IRS Section 179  v Find the real cash
	 Net Profit = Income - Expenses

Cash 'v' Accrual

Accrual - More difficult, uses a P&L and a Balance Sheet
Financial Management
Record Income - When Earned
Record Expenses - When Incurred

Working Capitol

Quick Books At Work

• Remove TAX line items for COA
• Setup accounts for every user with restrictions
• General Ledger - Recording depriation, Inventory - Always use notes
• Icon Bar : Find Transaction - Use Registers
• Preferences : Admin required for many functions
• Class tracking : Fund Accouning : Business Units
• Closing Date to protect older data
• Add reports to the icon bar ... Report open > View
• Use Vendor for Pretty Cash and Owner Draw
• Account for all check numbers
• Audit Trail with user accounts
• Reconcile with bank accounts
• Automatic data from bank may fail with items 'v' chart of accounts
• Use a Misc account for temporary fixes
• Reconcillation Detail - Report print and staple to bank statement
• Employee using decimals for time
• Payroll Services : <4 $250/yr for <4 employees | $350/yr >4 employees
• Custom fields : Example - Shirt size for employees
• Unpaid Bills Detail ... add to tool bar
• Credit memos
• Setup lines of credit as a 'Credit Card' account. Makes bills easier to pay.
• Check out types of items including : subtotals, groups, discounts, etc.
• Negative income
• Friends discount
• Investigate selecting customer/vendors by second name
• Coupons and other discount items
• Open invoice report .. add to icon bar
• Create a 'tips' item for over payments. Adjust invoices for small over payments
• Bad credit = negative income
• COGS bad check