• Leonard Brecken

Using Quickbooks As A Profit Tool

Many small business owners use Quickbooks as a tool organizing the mechanics of a business, but fail to utilize it to ENHANCE profits. This is due to NOT holding a person accountable to profits at all. Instead, accountants/bookkeepers are relied upon who's main focus is the mechanics of a accounting for a business vs improving a businesses efficiency. To do the latter first you must capture the right data so an owner is measuring a business efficiency so they can then in turn allocate resources the most efficiently to improve profits.

One of the easiest ways to arrange your accounting data in a way more geared towards improving profits vs paying taxes is to track revenue & margins via product/service, customer, job & operating segment. Also to track what you planned for in these areas vs what actually happened. The latter Quickbooks doesn't do a great job in doing thus why we frequently use Excel to supplement this as a forecasting tool. However, Quickbooks can do the revenue & margin analysis fairly well, but only if the one doing it not only sets it up to do so, but there exists a system/process that captures the data.

Here at TheProfitConsultant.me we start by analyzing a company's books to make sure the RIGHT data is being capture and if not creating a plan to do so. Sometimes we do this, and sometimes we work with accountants/bookkeepers to capture the data. The point is assuring you are capturing the RIGHT relevant profit data is the key to begin devise a plan to improve profits.

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