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Quickbooks Clinic Series No 1 ver 2

Published on Nov 18, 2015

First in a series of blogs on how to work in Quickbooks more effectively, starting with a look at the Chart of Accounts

PRESENTATION OUTLINE

Quickbooks Clinic Series

No. 1: Chart of Accounts
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Quickbooks is a great tool to get you started.

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It helps you see where your money is going.

It's designed for the
non-accountant, to be simple and easy to use.

However, lack of accounting knowledge coupled with simplicity often leads to problems.

Poor implementation and inconsistent practices takes many down the wrong path.

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Mapping a Better Chart

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The Chart of Accounts, is a critical element of your accounting.

It is the foundation on which all else is built.

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It organizes data so you can generate reports more effectively.

Quickbooks comes with a standard chart of accounts.

But it rarely reflects the uniqueness of your business.

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You need to customize your chart of accounts for your business.

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Otherwise, the information that an outsider needs to understand your business is either missing or misplaced in your reports.

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Different accounts relate to others and should be grouped for reporting.

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Most non-accountants are unaware of those relationships and how to group effectively.

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Mapping them to the wrong places will create statements that don't make sense.

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Create your chart of accounts with reporting in mind to share with key constituents.

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Making Sense of Costs

Costs need to be segregated in a way that leads to better decisions.

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Pricing decisions rely on accurate designation
of costs like COGS and SG&A.

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If you include SG&A costs with COGS, you can overprice a product.

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Take the time to develop a chart of accounts that flows costs correctly into financial statements.

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If you're not an accountant, hire a consultant to help.

It's worth the time and expense to do it right at the beginning.

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Otherwise, you'll end up fixing it later.

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Author: Chris Reynolds

Accounting Manager, 2Go Group
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To learn more on the topic

  • Read the full blog article
  • Visit our website at www.cfos2go.com
  • Contact us at 925-283-8080 and ask to speak with a Consulting CFO

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