Using Quickbooks for Better Decision Making

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Most small business owners under utilize their accounting system. They are focused on tracking transactions and not on decision making. This results in making critical business decisions without the right information.
In this class for owners and decision makers, students will learn the features in Quickbooks that give them more useful data about their business. Better decisions will result from information about profitability, customers, products and marketing performance.

Published in: Business, Economy & Finance
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Using Quickbooks for Better Decision Making

  1. 1. Sigma Free Presents… Using Quickbooks for Better Decision Making Tuesday, March 16, 2010 6pm – 8pm Sigma College of Small Business 6611 Jefferson St. Haymarket, VA  20169 Sponsored by: Myerson & Myerson CPAs Provided by Sigma College of Small Business, Inc.
  2. 2. Sponsored by: Agenda Introductions Myerson & Myerson CPAs Keynote Topic Using Quickbooks for Better Decision Making Our Sponsor: Myerson & Myerson, CPAs Break – Refreshments and Networking Ask  Questions  Keynote Conclusion Any Time Using Quickbooks for Better Decision Making Using Quickbooks for Better Decision Making 2 Copyright 2010 Sigma College of Small Business, Inc.
  3. 3. Sponsored by: Managerial Accounting Myerson & Myerson CPAs • “Managing” the company – Used by managers to make decisions and guide actions • Financial Accounting is used for “reporting” on the company • Information for IRS, stockholders, etc… • Costs and Profitability – Analyze at more detailed levels – Products, jobs, customers • Results from Specific Investments – Marketing campaigns – Equipment investments • Budgets and Forecasting • Manage Cash Flow Using Quickbooks for Better Decision Making Copyright 2010 Sigma College of Small Business, Inc. 3
  4. 4. Sponsored by: What Do You Want to Know? Myerson & Myerson CPAs • Costs and Profitability – “That job was big, but was it profitable?” – “What are my most profitable types of customers?” – “What are the most costly parts of my business?” • Budgets and Forecasts – “How are actual costs matching up to what we had planned?” – “Based on my actuals v. forecasts, do I need to change my budget?” • Cash Flow – “Will I have enough cash at the end of the month to…?” • Customer Management – “How can I use my financial system to better communicate with my customers?” Using Quickbooks for Better Decision Making Copyright 2010 Sigma College of Small Business, Inc. 4
  5. 5. Sponsored by: Tracking Financial Information Quickbooks Tools for Managing Information Myerson & Myerson CPAs • Accounts – General, high level data • Items – Track goods and services that are sold • Customers and Jobs – Relate transactions to specific customers and jobs • Classes – Flexible way to track additional information Using Quickbooks for Better Decision Making Copyright 2010 Sigma College of Small Business, Inc. 5
  6. 6. Sponsored by: Job Expenses Account Subcon‐ Job Equipment  Permits and  tractors Materials Rental Licenses Myerson & Myerson CPAs Sub‐account Sub‐account Sub‐account Sub‐account Accounts “How much did the company spend on _____________ last year?” Used to compare revenue, expenses, assets and liabilities on a company  basis. Using Quickbooks for Better Decision Making 6 Copyright 2010 Sigma College of Small Business, Inc.
  7. 7. Sponsored by: Job Expenses Account Subcon‐ Job Equipment  Permits and  tractors Materials Rental Licenses Myerson & Myerson CPAs Sub‐account Sub‐account Sub‐account Sub‐account Plumbing Item Electrical Item Items “How much did we spend on plumbing last year?”, or “Should we Hire a Plumber?” Used to itemize delivered products and services across multiple accounts. Using Quickbooks for Better Decision Making 7 Copyright 2010 Sigma College of Small Business, Inc.
  8. 8. Sponsored by: Job Expenses Account Subcon‐ Job Equipment  Permits and  tractors Materials Rental Licenses Myerson & Myerson CPAs Sub‐account Sub‐account Sub‐account Sub‐account Plumbing Item Electrical Item Note:  The  Cook: 2nd Floor Addition specific account  Abercrombie:  Bathroom can change – we  can just as easily  track item and  job info for a  revenue account Impact:  Allows  us to compare  across accounts,  items and jobs. Customers and Jobs “How much did we spend on Job Materials the Cook Addition Job?” Used to track transactions to a specific customer and job. Using Quickbooks for Better Decision Making 8 Copyright 2010 Sigma College of Small Business, Inc.
  9. 9. Sponsored by: Job Expenses Account Subcon‐ Job Equipment  Permits and  tractors Materials Rental Licenses Myerson & Myerson CPAs Sub‐account Sub‐account Sub‐account Sub‐account Plumbing Item Electrical Item Cook: 2nd Floor Addition Abercrombie:  Bathroom Note:  Using  New Construction Class Classes allows  Remodel Class you to have a  simpler account  list.  Otherwise  you would need a  new and  Classes renovation sub‐ account for each  “How much were total Job Expenses for New Construction  Expense Account. compared to Renovations?” Flexible categories to further break down financial information Using Quickbooks for Better Decision Making 9 Copyright 2010 Sigma College of Small Business, Inc.
  10. 10. Sigma Free Presents… Using Quickbooks for Better Decision Making Tuesday, March 16, 2010 6pm – 8pm Sigma College of Small Business 6611 Jefferson St. Haymarket, VA  20169 Sponsored by: Myerson & Myerson CPAs Provided by Sigma College of Small Business, Inc.
  11. 11. Sponsored by: Rock Castle Construction Myerson & Myerson CPAs • Reports – Profit and Loss • Uses Accounts – Job Profitability • Uses Customer and Job Info – Item Sales and Profitability • Add and Use – Accounts – Items – Customers and Jobs – Class Using Quickbooks for Better Decision Making Copyright 2010 Sigma College of Small Business, Inc. 11
  12. 12. Sponsored by: Using Estimates in Quickbooks Myerson & Myerson CPAs • Similar to Invoices • Advantages – Turn into invoices very easily – Track Estimates v. Actuals to evaluate accuracy – Help track close rate • Demonstration Using Quickbooks for Better Decision Making Copyright 2010 Sigma College of Small Business, Inc. 12
  13. 13. Sponsored by: Budgeting in Quickbooks Myerson & Myerson CPAs • Budget at Multiple Levels – Allows budgeting by account • Demonstration Using Quickbooks for Better Decision Making Copyright 2010 Sigma College of Small Business, Inc. 13

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