QuickBooks is a complete accounting system that provides to you, the business owner, the control and information you need to be successful. The wide variety of reports and tools that QuickBooks provides are critically important to the day-to-day operation of your firm.
Of those, however, two reports stand out:
- The Profit & Loss Previous Year Comparison
- The Collections Report
The Profit & Loss Report is a measure of whether you are succeeding or not. Sales volume, cost of goods sold, staff costs, and your general overhead determine the direction that your business is taking. It is especially enlightening to compare this year to last.
The report will show where sales have changed and whether they have increased or not. It will tell you if any of your marketing efforts this year or last had an impact on your sales volume. It also measures how well you are working to control the costs of running your business. Are the costs of sales increasing? Should you be looking to reduce those costs, or even modify your pricing?
The Collections Report will help you find those accounts where you are owed money and direct your efforts to collect them. You can examine exactly who owes you money, and take advantage of QuickBooks’ automatic contacts with those customers. Or use the report information to make a personal contact. Collecting as much as you can will make your firm stronger and more profitable.
QuickBooks is a very powerful tool for managing a small or medium-sized business. Reports like this contribute to its usefulness, and should be consulted frequently.
If you need the answer to any QuickBooks question, please give us a call at (212) 461-3300 or visit our website. We are here to help you succeed with this important element of your business.