A Woodard Events Production Part 1 - Empower Small Businesses · • Inaugural, Prototype Member: QuickBooks Solution Provider • Microsoft Cloud Solution Provider (specialty: Dynamics

Part 1Stretching QuickBooks Desktop to Meet the Needs of Your Larger Clients

www.Woodard.com/Webinars

A Woodard Events Production

About the Series

Part 1:Stretching QuickBooks

Part 2:Stretching Your

Role


Practice


Horizons

To Meet the Needs of Your Larger Clients

Through Custom Reporting and Business Analytics

To Include Technology Advisory Services and

Partnerships

Through a Discovery of How Microsoft’s AI Powers the Future of Accounting Solutions

… QuickBooks … Client Relationships … Your Practice…Your Horizons

About Today’s Presenter

• Inaugural, Prototype Member: QuickBooks Solution Provider

• Microsoft Cloud Solution Provider (specialty: Dynamics 365 Business Central)

• First Intuit Partner to adopt Microsoft Dynamics 365!

• Author & instructor for Intuit, The Woodard Group, and Directions North America

• 5‐time selection Top 100 QuickBooks ProAdvisor

• “Top Integrations” ProAdvisor by Insightful Accountant

• 3‐time winner Sleeter ‘Top Technologist’ award

• Recognized as a Technology Pacesetter by Accounting Today

• Recognized as a Killer VAR by Accounting Technology

• 6‐time selection to ‘VAR Stars,” a mid‐market accounting software resellers award


MARIO NOWOGRODZKI, CPA/CITPFounder & CEO

10 Ways to Stretch QuickBooks DesktopTricks and Workarounds for the Advanced QuickBooks Advisor

Stretching QuickBooksTo Meet the Needs of Your Larger Clients

Woodard.com/webinars

1. Increasing Multi‐user Performance• Set QuickBooks to Load as Few Items as Possible when Starting• Set User Preferences to Clean All Open Windows Each Time You Exit• Turn off Reminders• Set Reporting Preferences to Show the Modify Report Window Before Loading a Report• Turn off Auto‐Refresh on Reports• Close Windows in QuickBooks as You Go• Get High Performance Hardware/Workstations with Solid State Drives• If Networking QuickBooks Locally, Use a Dedicated Computer to Host QuickBooks• Considering Using Windows Remote Desktop or a Commercial QuickBooks Host like Right

Networks• Keep Your QuickBooks File as Small as Possible


2. Reducing Corruption Risk for Larger QB Files• Control Database Fragments (Press F2 to Monitor)

• Defrag Hard Drives

• Use Solid State Drives

• Rebuild the File

• Create and Restore a Portable Company File

• Keep the file size below 500 MB• Don’t Run QuickBooks Over Wi‐Fi Connections• Reduce Network Interruptions When Serving Out QuickBooks Data in Multi‐User Environments

• Use Windows Remote Desktop

• Use a Highly Reputable Commercial QuickBooks Host

• Tip: Perform a backup using the QuickBooks In‐Product Backup Utility to Create Corruption‐Free Rally Points as Data File Corruptions are Unfortunately Not Rare, and Many are Irreparable


3. Creating Subsidiary Ledgers1. As you debit/credit the Client Pre‐Payments account, associate each post with a Customer or Job name.

2. Create a Custom Summary Report with the following settings:

a) On the Display Tab total the rows by Customer:Job

b) On the Display Tab click "Advanced" and then click "Non‐Zero" in the Display Rows section.

c) Filter by Account for the "Client Pre‐Payments" account.

d) Set the Date range to "All."

e) Title the report "Open Pre‐Payments by Client.“

f) Memorize the Report for Future Use


4. Tracking Inter Company ActivitiesYou can reconcile almost any type of Balance Sheet account. If you need to track inter‐company transactions, one very good use of this feature is to reconcile the detail in the “Due to Parent Company” account in one QuickBooks file with the detail reports from the “Due from Subsidiary Company” account in the other QuickBooks file. The concept is like reconciling a bank account to a bank statement, except here you will use documentation from another company or entity with which you transfer monies (e.g. inter‐company loans or payments made by one entity on behalf of another).


5. Restricting Changes to the Chart of Accounts

For QuickBooks Pro and Premier Desktop, to prevent users from making these changes in Pro and Premier you can associate every account on the chart of accounts with a 1099 form in the Company Preferences. Once you associate an account with a 1099 form, you cannot change the type of the account or merge the account with another account. It is best to use a 1099

form that you do not actually create and send to contractors or vendors.

… QuickBooks … Client Relationships … Your Practice… Your Horizons

6. Managing List Limits


QuickBooks Pro/Premier Limits Lists to 10,000 items and 14,500 Names

Option 1: Upgrade to QuickBooks Enterprise Solutions where the limit is

Technically: One Million for items and One Million for Names

Practically Due to Database Constraints 100,000 for Items and 100,000 for Names

Option 2: Merge Old, Used List Records

1. Backup the Data File

2. Using Merging Consolidate Inactive Items, Customers, Vendors, etc. into a single “Old List Item” record

Note: You can find a tool that will perform mass merging of list entries at www.q2q.us.

7. Allocating Freight to Inventory Purchases


The Primary Issue that Requires a Workaround:There is no tool in QuickBooks that allows you to burden the inventory values with the freight you paid to

ship the products from the supplier’s location to yours.

The Strategy behind the Workaround:Since there is no tool to automatically burden freight costs into the value (purchase price) of inventory

products, you must increase the per‐unit costs to include this freight. You must do so as of the date of the Bill and the company must do this burden on each individual inventory Item included on the Bill.



When Freight is Included on the Bill

1. Enter all the inventory Items, the rates and the quantities received just as they appear on the Bill from the supplier.

2. Determine the percentage of the total Bill represented by each line Item. For example, in the Bill below the percentages for each line are:

Line 1 3.3%Line 2 83.3%Line 3 2.3%Line 4 11.1%



When Freight is Included on the Bill

3. Add the freight amount by percentage to each line. The total freight costs for the Bill above is $175.30. The amount multiplied by the percentages above provides the following purchase costs.

Freight Amt Percentage by Line Freight by Line Part Cost by Line Part Cost with Freight by Line

175.30 x 3.3% 5.78 + 180.00 = 185.78175.30 x 83.3% 146.03 + 4500.00 = 4,646.03175.30 x 2.3% 4.04 + 120.00 = 124.04175.30 x 11.1% 19.45 + 600.00 = 619.45

175.30 + 5,400 = 5,575.30



When Freight is Not Included on the Bill

1. Enter the Bill for the freight on a separate Bill from the parts and make the Bill payable to the applicable Vendor (e.g. UPS or FedEx). Post the freight costs to an Account with a Cost of Goods Sold type called Freight Clearing. When you do, you will increase (debit) the Freight Clearing Account.

2. Perform the same steps as in the example above to allocate the freight to each line on the Bill from the supplier.

3. Since the amount of the Bill will now be more than the amount on the Invoice from the supplier, reduce the total Bill amount by entering a negative number in the Amount field of the Expenses tab. Post the negative amount to the Freight Clearing Account as shown below. The entry below decreases (credits) the balance in the Freight Clearing Account. Important: Do not use inventory

adjustments to allocate freight on purchases!

8. Closing Retained Earnings as of Year End


1. Change the name of the existing Retained Earnings account to “Retained Earnings Clearing.”

2. Create a new Equity account called Retained Earnings.

3. After you have finished making all edits to a fiscal year, enter a journal entry for the total amount of Net Income. Debit the Retained Earnings Clearing account and credit the Retained Earnings account.

4. On the Balance Sheet as of 12/31, Net Income and Retained Earnings Clearing will cancel each other – positive and negative balances will be the same – and the Retained Earnings balance will show the correct amount.

9. Creating Order Fulfillment Workflows


1. Add the following entries to the Ship Via List: Pending, Issued, Packed, Shipped, Close

2. Perform the following steps to create customized reports based on different Sales Order statuses.a) Open a Custom Transaction Detail Report

b) Set the Date Range To All. Tip: For larger files, set the date range to include the previous 6 months in the From field and at least 12 months in the future in the To field. Make a note to edit these settings when the date in the To field becomes the present date.

c) Filter by Transaction Type for Sales Orders

d) Filter by Posting Status for Non‐posting

e) Filter by Account for Sales Orders. Note: If you want to include all of the detail from each Sales Order on the report, do not filter by this account. However, the statuses in this custom method apply to the entire Sales Order only, not to individual lines on the order.

f) Filter by Ship Via for “Pending.”

g) Edit the Title of the report to read, “Pending Sales Orders.”

h) Memorize the report and add the report to the appropriate users’ Icon Bars

i) Repeat steps f through h for the other Sales Order statuses

9. Creating Order Fulfillment Workflows


3. Print the Sales Order as soon as it is issued and

use this paper document to backup the

electronic workflow. The warehouse employees

will use the paper document to manage the

specific Items they intend to pick, pack and ship.

However, the memorized reports will work as an

electronic queue, telling each person at each

stage of fulfillment when the order is ready to

be picked, packed or shipped.

10. Creating a “Real” General Journal


1. If you use a Journal Entry for all types of adjustments (e.g. Sales Receipts, Credit Memos, Checks and Journal Entries), you can use the account register for the Journal Entries bank account to view a list of adjustments.

2. Perform the following steps to create a General Journal that includes all the transactions you used to adjust the client’s QuickBooks data.

3. Include the Journal Entries bank Account on every adjustment you enter, regardless of the form you use, as described above.

4. Use the Register for the Journal Entries bank Account to review a list of the Journal Entries. Highlight any entries you want to view in more detail and click “Edit Transaction” to display the full transaction view.

Stretching Beyond QuickBooksMaintaining Client Relationships and Solving Client Needs When You Can Stretch QuickBooks No Further

TheTransformativeAdvisor.com



10 Ways You Cannot Stretch QuickBooksFeature Limitations for Which there is No In Product Workaround

TheTransformativeAdvisor.com



10 Ways You Cannot Stretch QuickBooks


1. More than 30 concurrent users in the system

2. Assign specific A/R and income accounts to customers (not just to items)

3. Assign specific A/P accounts to vendors

4. Create workflows that automatically create transactions from emails

5. Create workflows that automatically generate email notifications

6. Require an Item Name When Posting to Inventory Asset account(s)

7. Use multiple A/R and A/P accounts on same transactions

8. Consolidated management reporting from multiple company databases (not just financials)

9. Inventory order lead times, forecasting, intelligent re‐order points, and serial/lot number tracking

10. Substitute/alternate Products for Assemblies and Order Fulfillment

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A Woodard Events Production

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Part 2Stretching Your Role through Custom Reporting and Business Analytics

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A Woodard Events Production Part 1 - Empower Small Businesses · • Inaugural, Prototype Member: QuickBooks Solution Provider • Microsoft Cloud Solution Provider (specialty: Dynamics