using quickbooks for better decision making

Sigma FreePresents…

Provided by Sigma College of Small Business, Inc.

Using Quickbooksfor Better Decision Making

Sponsored by:

Myerson & Myerson CPAs

Tuesday, March 16, 20106pm – 8pmSigma College of Small Business6611 Jefferson St.Haymarket, VA 20169

Sponsored by:

Copyright 2010 Sigma College of Small Business, Inc.


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Introductions

Keynote TopicUsing Quickbooks for Better Decision Making

Our Sponsor:Myerson & Myerson, CPAs

Keynote ConclusionUsing Quickbooks for Better Decision Making

Break – Refreshments and NetworkingAsk

Questions Any Time

Agenda

Using Quickbooks for Better Decision Making

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Managerial Accounting

• “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

3Using Quickbooks for Better Decision Making

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What Do You Want to Know?

• 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 bettercommunicate with my customers?”


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Tracking Financial InformationQuickbooks Tools for Managing Information

• 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


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Accounts“How much did the company spend on _____________ last year?”

Used to compare revenue, expenses, assets and liabilities on a company basis.


Job Expenses Account

Equipment Rental

Sub‐account

JobMaterials

Sub‐account

Subcon‐tractors

Sub‐account

Permits and Licenses

Sub‐account

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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.



Equipment Rental

Sub‐account

JobMaterials

Sub‐account

Subcon‐tractors

Sub‐account


Sub‐account

Plumbing Item

Electrical Item

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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.



Equipment Rental

Sub‐account

JobMaterials

Sub‐account

Subcon‐tractors

Sub‐account


Sub‐account

Plumbing Item

Electrical Item

Cook: 2nd Floor Addition

Abercrombie: BathroomNote: The specific account 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.

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Classes

“How much were total Job Expenses for New Construction compared to Renovations?”

Flexible categories to further break down financial information



Equipment Rental

Sub‐account

JobMaterials

Sub‐account

Subcon‐tractors

Sub‐account


Sub‐account

Plumbing Item

Electrical Item

Cook: 2nd Floor Addition

Abercrombie: Bathroom

New Construction Class

Remodel Class

Note: Using Classes allows you to have a simpler account list. Otherwise you would need a new and renovation sub‐account for each Expense Account.

Sigma FreePresents…

Provided by Sigma College of Small Business, Inc.

Using Quickbooksfor Better Decision Making

Sponsored by:


Tuesday, March 16, 20106pm – 8pmSigma College of Small Business6611 Jefferson St.Haymarket, VA 20169

Sponsored by:



Rock Castle Construction

• 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


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Using Estimates in Quickbooks

• Similar to Invoices

• Advantages– Turn into invoices very easily

– Track Estimates v. Actuals to evaluate accuracy

– Help track close rate

• Demonstration


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Budgeting in Quickbooks

• Budget at Multiple Levels– Allows budgeting by account

• Demonstration
