quickbooks set-up & workflow for architects
TRANSCRIPT
Quickbooks Set-up & Workflow for Architects
Presented by: Terry ChongFocus-Grow Bookkeeping
@ AIA SF on 8/4/16
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A business has 3 legs:
Operations Marketing
Finance
If any one of the 3 legs is not strong…
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An owner stands on top of the organization
• on top of the world!
• He gets things done through other people.
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The top job of a CEOThe only job I cannot delegate is on hiring people.
• Get the right people on the bus
• Get the wrong people off the bus
Photo credit: Tim Cook @ twitter
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Team
Each team member brings with him / her a unique skill set.
A leader’s job is to help each achieve his / her full potential, by providing guidance & resources.
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2 major reasons employees quit:
1. Don’t agree with the boss(es).
2. Don’t feel appreciated.
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Our knowledge:
What I know.
I don’t know what I don’t know.
I seek to know what I don’t know.
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2 things that make us wiser:
• Books that we read
• People who we hang out with
Image credit: Himani A. Gupta
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2 good closing questions:
1. What should I have asked you but I haven’t?
2. What are somethings very important that you wish I know by now?
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Bookkeeping
• Tasks (chores)– Invoicing clients– Paying bills– Bank reconciliation
• Vs.
• End Goals: - TIMELY and ACCURATE financial reports
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Reports serve 2 purposes:
• For monitoring purpose - Weekly reports: – Cash balance– A/Receivable reports: A/R Open invoices, Aging.– A/Payable reports: A/P unpaid bills.
• For strategic purpose – Monthly & Yearly Reports- Understand how the company performed.- Then, make strategic decisions; i.e. what actions should be taken? (i.e. take out loan, hire more staff, buy equipment?)
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Monitoring A/Receivable (Aging):
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Monitoring Open Invoices & Past-Due:
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Balance Sheet - shows the company’s financial positions; assets, liabilities, equity.
On being strategic:
1. We seek to understand the company ‘s performance.
2. We make decisions accordingly.
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Profit & Loss - shows the Profitability of the company; how profitable the company is.
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Numbers tell a story:
They tell 2 things:
• Quantity = how big are they?
• Quality = how good is the company performing?
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Accounting 101:
• Accounting is quite simple:
• 5 major types of accounts:- Asset, liability, equity, income and expenses
• 2 major types of financial reports:- Balance Sheet – showing assets, liabilities & equity- Profit & Loss – showing income & expenses
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Quickbooks Demo
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Chart-of-accounts
• Is the back bone for financial statements.
• Everything listed on Balance Sheet or Profit & Loss needs to be set up as an Account first.
• Asset, liability, equity accounts will be listed on Balance Sheet.
• Income and expenses accounts will be listed on Profit & Loss.
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Items List:
• Every thing you use on your “invoices” need to be set up as an “item”.
• Item is linked to chart-of-accounts.• (Accounts on chart-of-accounts make up Balance Sheet and Profit &
Loss.)
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To set up New Item:
• To set up a new item, go to List menu, select Item, then “New” or Ctrl+N.
• By default, only “Income account” is provided.• Put a checkmark on “This service is … performed by a
subcontractor” to open up “Expense account” side. This is called “double-sided item set-up”.
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2 types of billing:
• T&M Billing (Time & Materials Billing)
• Fixed Price / Progress Billing (Contract Billing)
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Time & Material Billing:
It starts with gathering time on a time sheet
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T&M Billing: Enter weekly time sheet
• Enter time by job and by task (item; i.e. SD, DD, CA, etc.)• Checking the box “Billable” allows us to pull these times into T& M invoices.• Enter employees and contractors’ time in the same way. (Pull contractor’s
time into a vendor’s bill.)
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Entering a Reimbursable Bill:
• For Job Costing purpose, use “Items” tab instead of “Expense” tab. Expense tab is for general & administrative expenses; i.e. rent, utilities.
• Checking the box “Billable” allows us to pull the expense into an invoice later.
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T&M Billing:
While creating a T&M invoice:
• Every thing listed on Time tab, Expense tab, Mileage tab and Items tab can be pulled into the invoice.
• Put a check mark on each line to include it.
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Progress Billing:• Turn on this feature: Edit Preference Job & Estimate
Company Preference “Yes” on “Progress Billing”• Uncheck “Don’t print zero amount” (to show full contract value)
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Fixed Price / Progress Billing:
• Step 1: create an Estimate
• Amount = hard costs
• Markup = can be in $ or %
• Total = Contract Value
When it is time to bill:
•Step 2: Click on “Create Invoice” to flip this “estimate” into a “progress billing invoice.”
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Step 3: Enter Percentage (in fraction) you want to bill here, or in previous pop-up window.
“Prior Amt” column shows amount previously billed for each item.
Progress Billing:
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Financial Reports:
Under Report Company & Financial are various Balance Sheet, Profit & Loss and Cash Flow Reports which show the overall company’s performance.
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Job Reports:Under Report Jobs are various job reports.
• “Detail” reports are for one specific job.
• “Summary” reports are summary for all jobs.
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Job Profitability Summary report lists ALL jobs, showing how profitable each one is.
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Job Detail Report shows 1 job at a time.Example: Job Estimates vs. Actuals Detail Report
• 3 columns on the left are on costs comparison.• 3 columns on the right are on revenue comparison.
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The Estimated Costs & Revenue came from Estimate:
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Q&A
