Ask the Accountant… Question: I have an older desktop version of QuickBooks Premier (too embarrassed to mention the version/year). So far, it seems to work fine. What are the disadvantages of staying on an older desktop QB version? I have a sense there’s something I don’t know but should. Answer: By using an old version…
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Ask the Accountant… Question: I produce my month-end statements and then do my reconciliations whenever the statements are ready. Is that the right order? Answer: Reconciliations are an important step in keeping your data up to date. Reconciliations are a safeguard that your numbers are correct, or at least entered in your system. A reconciliation…
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Ask the Accountant… Question: QuickBooks can send payment reminders to clients. What do you know about it? Answer: That is a new feature in QuickBooks that might be helpful, but . . . I have reservations about it for our industry, because the automated nature of the payment reminders takes away the personal nature of…
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Ask the Accountant… Question: If I convert to QuickBooks, do I have to use QuickBooks Payroll? Answer: There is no requirement to use QuickBooks Payroll. Our businesses generally involve very few, if any, employees. And payroll is rarely a needed function. My clients who do have a payroll typically use outside payroll services, or have…
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Ask the Accountant… Question: What is the perfect system for a promotional products distributor? Answer: I wish I had the perfect answer for that. Unfortunately, there is not a perfect system for our complex and unique industry regardless of cost. Ad specialty distributors have had to figure out their own systems, mostly by trial and…
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Ask the Accountant… Question: I am downloading QuickBooks Premier. There is a question about which edition I want. Which one do I pick? Answer: When you purchase QuickBooks Premier, there will be options of editions when you download the program. The edition that is best suited for our industry is Manufacturing and Wholesale. By selecting…
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Ask the Accountant… Question: Recently, I had a question about what a balance sheet shows, so I thought I’d tackle income statements as well. Answer: The income statement is also known as a profit and loss statement, or a P&L. It shows what you have earned and what you have spent to produce a profit…
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Ask the Accountant… Question: My CPA always asks for a balance sheet, but I don’t know what that is exactly. Answer: A balance sheet is one of the two standard financial statements that describes the condition of your business. (The other is an income statement.) Your balance sheet is a snapshot of a particular day…
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Question: Do you have any suggestions for a good way to track orders? Answer: Our industry is complicated, and each order involves many steps and details. I used to track orders manually—step by step for each order. Today there are several automated solutions…
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Ask the Accountant… Question: I am new to the business and don’t know how to price the items I am selling. Any tips? Answer: In general terms, you would like your gross profit percentage to be around 40 percent and higher would be better. Your gross profit margin is the amount left over after you…
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