After an epic Hollywood flub, it seems that two accountants from the venerable PriceWaterhouseCoopers firm (which has been handling the Oscar balloting for 83 years) are officially the “fall guys”: http://www.seattletimes.com/nation-world/ap-exclusive-accountants-in-oscar-flub-off-the-show/
There are many jokes to be made here, of course, but professional courtesy requires that I refrain — and, well, we accountant-types aren’t really that funny.
But when things go haywire, some business owners and organizational leaders (even local Diamond Bar ones!) like to blame anyone but themselves. Totally understandable, but it’s not going to help you grow.
Some Diamond Bar business owners never like to “look under the hood” of their finances, and their accountants or financial partners can sometimes encourage that behavior by keeping them in the dark.
Well, I hope that won’t be you. In fact, with our clients, we go overboard to provide the kind of insight into financials that they really need to make strong decisions.
One way I’d like to help YOU is by pointing out different reports and metrics that you can find in QuickBooks and most other accounting softwares, that business owners or their bookkeepers often neglect. Knowing these numbers will help you avoid an embarrassing flub in YOUR business.
Even if you are using some of these QuickBooks reports, I’m sure you’ll find a few more to add to your repertoire. Of course this is just a very basic introduction, but hopefully it’ll spark some ideas.
7 Best QuickBooks Reports Diamond Bar Business Owners Overlook
“Let us not look back in anger, nor forward in fear, but around in awareness.” -James Thurber
Diving right in, here are someof the best QuickBooks reports you should be tracking for your business or organization. Names might vary, if you’re using a different accounting software, but these are the kinds of things you should look for…
1) Profit & Loss Summary Prev Year Comparison: Most business owners rely on the Profit & Loss Summary report, but comparing your results to last year can provide quick insight into whether your revenue is growing or contracting–as well as how fast expenses are rising.
2) Balance Sheet Prev Year Comparison: As with your income statement, it’s important to compare where certain balances stand now versus last year (such as Cash, Accounts Receivable and Payable, etc.).
3) Statement of Cash Flows: Profit & Loss reports enable you to see what you earned, while Balance Sheet reports help you determine what you have–as well as what you owe. (However, neither report necessarily provides a clear picture of where cash is coming from, or going to.) In short, this report shows you exactly what caused your bank balance to increase or decrease during a given report period.
4) Collections Report: Tricky economic times mean it is more important than ever to keep track of your collections. Fortunately, QuickBooks and other platforms make it easy to contact customers with overdue invoices…
5) A/P Aging Summary: Although it’s key to make sure that your customers are paying in a timely fashion, it’s just as important to pay your vendors, too. Unpaid bills can result in phone calls, e-mails, and other unnecessary interruptions.
6) Voided/Deleted Transactions Summary: It’s no surprise that small businesses are much more prone to fraud than large businesses. Small business employees usually wear multiple hats, so it’s often impossible to separate financial duties (bigger businesses can do this with ease). Fortunately accounting platforms make it hard for perpetrators to cover their tracks — you’ll be able quickly identify any transactions that have been deleted from your books. Granted, this isn’t an end-all solution by any means, but it is a helpful management tool. Plus, if a transaction ends up “vanishing” from your books, you can use this report to see who deleted it.
7) Transaction History: QuickBooks or other accounting softwares will usually display a report that shows the entire history for a given transaction. Think of this as a “report within a report”, as you can only run it in certain circumstances.
And don’t forget — we’re right here for you, if you need us: (909) 861-5642
Feel very free forward this article to a Diamond Bar business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Diamond Bar families and business owners. And we always make room for referrals from trusted sources like you.
Bharti I. Sudan
Bharti Sudan CPA Inc.