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.

1. Maximizing
Quickbooks.
Presented by:
Wade Farquhar

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

7. Expenses/Vendors
Sales/Customers
Workers/Employees
Settings/Company
5 Major Groups
Banking

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

46. Segment,
Separate,
And Measure.

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.

64. … AND
YOU’RE
DONE!
Thank you.

65. Link to this
presentation:
Wade Farquhar
www.LeanTeams.ca/resources
www.Slideshare.net/leanteams