Quickbooks classes

Posted by munosib on August 9th, 2019

quickbooks classes

Tracking sales and business expenses is one of the most fundamental functions of running a successful company. Without knowing how much money your company is making or spending it's difficult to ascertain true performance and profitability. Many entrepreneurs tell me that they think they are making money but when I ask how much, they're usually stumped.

QuickBooks makes sales and expense tracking easy but to get it right, you must properly set it up from the start. The setup begins with the Chart of Accounts List. This is a list containing all financial categories in a company's accounting system. An account is a unique category representing a specific type of a financial transaction. This list is used to organize a company's finances, prepare financial reports and record various transactions such as expenses, sales, investments, purchase of assets, loans, etc.

The most important point about designing an effective Chart of Accounts is to begin with the end in mind. In other words, you first need to identify what information is relevant to your decision making process and then determine how detailed you want your Chart of Accounts to be. For instance, if you are running a trucking company it might be relevant to know what you spend on gas, parking, and tolls. Since these expenses may represent a substantial portion of your total financial output, many trucking companies will specifically track these expenses individually. However, if you are an interior design business then the individual breakdown of these auto/truck expenses might not be relevant or significant. Designers often record all auto related expenses into one general category called "Automobile Expenses". For an interior design company the level of expense detail might be more important in a different area such as: client purchases like art, furniture, fabric, etc. Or in the area of job related costs such as: blue print reproduction, travel or subcontractor fees. Therefore, identifying the level of detail you need is the most important step in designing a well functioning Chart of Accounts.