Success In-Formation LLC Blog

Undeposited Funds Account in Quickbooks

2010-09-21T17:34:00.002-04:00

The undeposited Funds account in QuickBooks is an Asset Account (other current asset) and is a clearing account to record funds received from your customers but not yet deposited in the bank.

When I teach QuickBooks I tell my students to imagine their locked desk drawer or company safe where they place checks received during the week until they go to the bank on Friday and make the deposit. As the week progresses, checks come in the mail and you record their payment in the customer center (accounts receivable) using the "receive payments" icon on the home page. On Friday when you are ready to go to them bank to make your weekly deposit (or whatever day you do this, maybe even same day), use the "make deposit" icon on the home page. This will show all the checks you have recorded using the "receive payments" task in Quickbooks that have not yet been deposited in the bank. You check off the ones you are taking to the bank or use the "select all" button and record this deposit. Be sure you have the correct checking account identified that you are depositing the funds into.

If you notice when looking at your trail balance, balance sheet or chart of accounts list that there is a balance in the "undeposited funds" account you should be able to verify that you have that much ready to go to the bank which you have not deposited.

This is an excellent tool which allows you to get the customers payment recorded to their account immediately but not show it in your bank balance until it really is in the bank.

Remember: record those customer payments on the date you receive them, not the date the check was written.

If your undeposited funds account is not reflecting the correct amount (pending deposits that need to go to the bank) give me a call, I can research and help correct the situation.

New Smartphone Revolutionizes Video Calling

2010-06-08T19:11:00.000-04:00

On Monday June 7, 2010, Steve Jobs of Apple Computers introduced Apple's new smartphone, the iPhone 4. The sleek, ultra-thin device was presented to an audience of software designers at the Worldwide Developer's Conference in San Francisco.

This is the design that was “leaked” and presented on the web by Gizmodo in April. Gizmodo claimed that the phone was left at a bar and sold to them by a third party.

While customer satisfaction rates higher for Android phone users, and Blackberry is the top selling smartphone on the market, Apple can boast that of all mobile web browsing, iPhone is the leader.

Steve Jobs, in his usual superlative manner, introduced several features of the iPhone 4. The design is thinner than any other smartphone on the market. The front and back consist of specially designed glass that is 30 times harder than plastic. Longer battery life allows 40% longer talk-time than previous models.

Many news sources have reported on the technical problems Jobs had when he tried to demonstrate online features of the phone. He openly expressed his frustration, and had to discontinue some of his presentation. Later he said that staff was scurrying backstage. He told the audience that they had discovered that there were 570 people using wireless devices in the immediate vicinity. Most of his audience members were actively communicating on their phones and laptops during the presentation. Steve Jobs laughed and let them know that if they would log off, he could resume his demonstration of the iPhone 4. Presumably enough of them responded, at least those working for Mr. Jobs did, and he was able to continue his demonstration.

Along with Global Positioning (GPS), compass and accelerometer, Apple has added a gyroscope to track movement. The phone can even demonstrate the effects of gravity. Jobs displayed these properties by playing a game of Jenga for the audience, spinning around on the stage, moving the phone in his hands while the audience watched the projected image and the changing perspective. The phone's representation of gravity was seen when the tower fell.

The iPhone 4's display is said to be four times sharper than previous smartphones. “Retina Display” presents 326 pixels per inch, providing an image as rich as the human eye can detect. Objects presented on the screen will appear as sharp as items held in your hand.

The phone's camera capabilities are the most innovative. A 5 megapixel camera with a lens on the front and back is standard on every iPhone 4. This camera has LED flash, and HD video capabilities. The iMovie application is available for $4.99 that allows you to edit and embellish video to create movies which can be shared through texting (MMS), email or youtube.

Steve Jobs brought “The Jetsons” to mind as he introduced the phone's camera-phone capabilities. Apple has designed “FaceTime” which compares to the laptop application, Skype. FaceTime provides video calling through the internet. Apple's demonstration of FaceTime emphasized the value this feature will have for deaf callers who use sign language.

The iPhone 4 retails for $199 for the 16GB model, and $299 for the 32GB model, with a two year AT&T contract. They will be available in the U.S. June 24, and will be in a total of 88 countries by September.

Contributed by :
Patty Harshbarger
Computer Renaissance, Bradenton, FL

Keyboard Shortcuts

2010-06-08T18:58:00.001-04:00

This week, a friend asked a question I hadn’t heard lately: What are all the extra keys on the keyboard for? We all know the basic QWERTY and punctuation keys, but there are many other keys that can make life easier once you are familiar with them.

We teach ourselves how to move around and access our favorite tasks, but there are many shortcuts right on the keyboard to simplify things. As we know, each letter key has a lower and upper case that is determined by the position of the “shift” key. In the same manner, depressing the “control,” “alt,” and “Windows” keys change the function of other keys.

Keys that move the cursor around a document allow you to keep your hands off the mouse while typing. The arrow keys move one space at a time. Hold down Control with an arrow key and move one word at a time. “Home” takes the cursor to the beginning of the line, and “End” moves to the far right. Page up and Page down skip through the document.

Online, go to www.SEOConsultants.com/windows/keyboard/ to find a helpful tool. This page has a clickable keyboard with a description of the functions of each key. It is worth the time to check it out and discover the shortcuts that are right under your fingertips. As an example, in order to cut, copy or paste, simply highlight the word or selection, then hold down “control” and press x, c, or v. To switch between your current work and the desktop, hold down the “Windows” key (near the spacebar) and press “D.”

The F keys across the top of the keyboard perform various tasks specific to the program you are using. F1 accesses the Help menu. In Internet Explorer, F11 toggles between full screen and normal viewing mode.

My favorite shortcut when I am web surfing is the backspace key. Press it to go back to the previous screen without using the mouse. Use Page Down and Page Up, Home and End to move quickly through the site.

Customize your copy of Microsoft Word 2007 to meet your needs and make life easier. Click on the icon in the top left corner, or on “File” and go to “Word Options” near the bottom right of that drop-down. Browse through the options there to find new shortcuts and features.

Contributed by:
Patty Harshbarger
Computer Renaissance, Bradenton FL

Types of General Ledger Accounts

2010-05-07T09:27:00.000-04:00

Following is a repost (edited) from a prior year post - it is a popular request of small businesses

Sometimes I find that people need the basics. Often in small businesses, employees earn their roles in the company by default. Maybe an experienced bookkeeper left the company so the accounting clerk gets promoted to bookkeeper. Sometimes a couple takes on the role of running a company and choose to take on the accounting, management, marketing and running of the business. This is a big role, too much sometimes for just a couple and can be draining on a relationship as well.

When I work with companies, I usually find an employee who is hungry for all the knowledge I can share and they appreciate the basics. One of the accounting basics I share that seems to be appreciated is a very basic description of the types of accounts in the general ledger. If you number your accounts, or use the standard numbering for your chart of accounts, this theorey will be correct. If your numbering system is a bit different, the numbers may vary but the structure is the same. See what you think:

Basic description of the general ledger acccount types:

Accounts beginning with a 1 are Assets. Their normal balance is "debit". These accounts consist of what you own or what people owe you.
Accounts beginning with a 2 are Liabilities. Their normal balance is "credit". Liabilities are what you owe to others.
Accounts beginning with a 3 are Equity. Their normal balance is "credit" Equity is the worth of your business, it includes money the owner have put into the company and retained earnings (profit and losses from prior years).

Assets, Liabilities and Equity appear on your Balance Sheet Financial Report

Accounts beginning with a 4 are Income Accounts. (Sometimes the account number's differ depensing on your CPA, but this number structure is very typical). Income accounts normal balance is "credit". These accounts record the Income also referred to as Revenue or Sales for your company.
Accounts beginning with a 5 are Cost of Goods Sold Expense Accounts. Their normal balance is "debit". This is the cost for what you buy to make the money listed as Income ie: the product you purchase (if you have inventory, this is the cost of the item pulled from inventory). It could include labor if you pay labor to build a part or to perform a construction job.
Accounts beginning with a 6 are Overhead expense accounts. Their normal balance is "debit". This could include shop and warehouse expenses or equipment expenses.
Accounts beginning with a 7 are General Administrative expense accounts. Their normal balance is "debit". This is the cost of keeping your office open, rent, office supplies, utilities, office and officer salaries and wages, etc. for the current year.
800 and 900 accounts may include other accounts not listed above, such as Other Income (normal balance of "credit"), Interest Expense (normal balance of "debit"), Federal and State Taxes (normal balance of "debit").

Income and Expenses Accounts make up your Profit and Loss Financial Statement also known as Income Statement

This numbering structure may vary depending on how your books are set up. If you are using QuickBooks, account numbers can be "turned on" in your General Preferences. Consult with your CPA or financial consultant (or us) before turning them on.

Apple iPad Coming Soon

2010-03-15T20:50:00.000-04:00

Apple's new iPad hits the market on April 3. CEO Steve Jobs unveiled the iPad in January, announcing that they have created a new product for the niche between the iPhone and the laptop. The iPad is a sleek device with an interactive touch screen. Consumers have been looking for an affordable tablet for years. It remains to be seen whether the iPad can perform up to our ever-increasing processing demands, and whether it finds the market Apple has imagined.

The iPad's 1.5 pound slim design is only a half inch thick and has a 9.7 inch screen. The touch screen senses various gestures to click, zoom and reposition the display. A half-screen keyboard can be displayed for typing. It utilizes standard wireless N and bluetooth. An accelerometer reorients the display when the device is flipped or turned. Battery life is estimated at 10 hours. Full specifications can be found at www.apple.com/ipad/specs/.

In addition to email, web browsing and date book utilities, the iPad makes use of the many newly popular applications designed for smart phones. Since the introduction in January, developers have already begun to provide new apps designed specifically for the iPad. Apple provides easy access to music and videos, and has set up a book store to facilitate eBook use at $14 per volume. Some believe that the iPad is destined to be a device for consumers, driving the ongoing purchase of videos, music, books and downloadable apps.

At the San Francisco unveiling, Steve Jobs smugly sited the Wall Street Journal's comment: “Last time there was this much excitement about a tablet, it had some commandments written on it.”

While Apple Inc. is heralding the iPad as a God-send, many are challenging its worthiness. Concerns focus on its processing abilities and the absence of ports for external devices. Others have said that iPad is “a solution without a problem.” It fills a gap between smart phones and laptops, but do we need a device that is too big to fit in a pocket, that cannot handle things as well as a laptop? Bloggers have called it “a big iPhone without the phone” and a laptop without a keyboard.

During his presentation, Jobs glowed that the iPad experience is “intimate” and the web is altogether new when “you hold it in your hands.” Perhaps this was his attempt to counteract slams that the iPad must be held in one or two hands or propped on bent knees.

Jobs also dismissed the closest competitor to the iPad, the netbook, as a slower, less effective laptop. The fact remains that the iPad is less powerful than many netbooks (1 GHz vs. 1.6 GHz). Pricing of the iPad is quite comparable to netbooks.

The appeal of iPad is its sleek, lightweight form. The rush to create applications that has enriched the smart-phone industry will surely bless the iPad as well. If it can live up to Apple's claims of being the coolest way to surf the net, and truly meet consumers' needs, iPad may create a new computer standard.

Patty Harshbarger, contributor to Success In-Formation LLC
PC Group LLC dba Computer Renaissance
patty@cr-bradenton.com
941-753-8277

Structure in our lives

2010-02-06T15:20:00.000-05:00

I have trained individuals for many years. I have observed and studied the way people learn. You cannot train a person who is an auditory person with only handouts to read, you must talk to them and connect with them verbally to get them interested in learning what you have to offer.

I also observe the structure that people need when they learn. Some people needs lots of structure, step by step instructions and they need to know I am available to help them anytime they need me for questions and help. Others like me to give them an overview of what we are to learn and where we want to be when we are done learning, and then they take off doing it on their own with minimal help from me.

I know that if you take a person out of their comfort zone not only will the end result be disrupted but you will put the person in a tizzy of fear of the unknown.

I was listening to NPR this weekend and I heard an autistic woman being interviewed. (Following is taken from what I remember, not verbatim). She talked about how autistic people think like animals, in pictures. She can visualize a situation all the way through to the end result, seeing it like a video with a successful ending. Like animals, if you put an object in her environment like a loud buzzing noise or an object out of place, it sets off a fear and inhibits learning or life for that matter. It puts her out of her comfort zone. One example is a school bell to break for classes. Once this is understood and modifications are made, she excels in learning. When asked “if you could be changed to not be autistic, would you do it?” she said “no, seeing the world in pictures is too wonderful, many people who only verbalize their thoughts, don’t think thru to the end result and speak in unfinished statements”.

My own comfort zone is disrupted when I don’t know where my next dollar is coming from; some say “faith” helps them know that things will be alright in situations like that. That may be but being a Taurus, I need evidence. My comfort zone is disrupted when papers get stacked too high and the filing is not done, when I take appointments and don’t get them on my calendar, when I don’t understand the new technological tools I need to use to make my life better. When I have company for too long or go somewhere that I don’t feel I “fit in”. But when I have a couple days set aside to clean my house, organize my office, do my bank reconciliations, review my accounts receivable to assure myself that things are moving forward and I have money coming in, I feel good. I need time to cook or bake once in awhile, workout, spend time outside, be with my family; those that accept me for who I am. When those things happen consistently I feel comfortable and am happy with my life.

Pandora Music

2010-01-31T10:43:00.000-05:00

A wonderful way of listening to your favorite music is to tune into Pandora. This can be done anywhere you have an internet connection and speakers. this means, your telephone (if you have internet on your phone), your blackberry or your computer. Imagine: You connect your laptop up to nice small speakers to host a party. These days, great speakers come in small size which is nice for being portable. Going on vacation or to your office doesn't mean, you can't take your stereo with you!!

Go to the internet, then to http://www.pandora.com/. Register for an account - don't be afraid, just do it.
Once you choose your favorite type of music, Pandora starts playing songs that are by your favorite artist or by similar artists of your favorite. You have the option of saying it's not your favorite and Pandora will find another song to play. This process creates a "saved radio station" for you. With this saved station, next time you sign into Pandora, you just choose your station and all your saved songs are there, plus Pandora starts adding more.

You can create several types of "radio stations". I have stations called: "The Beatles", "Women's Music", "Easy Listening", "Blues", "Jazz", "Classical". Which one I play depends on my mood.

Yesterday as I was painting, I started out with "The Beatles". The first song was "Hey Jude". The songs morphed into a mix of Beatles, Rolling Stones, Simon and Garfunkle and more from that era, It was a wonderful nostalgic time for me and motivated my painting experience.

Have fun, Pandora is free, it may time out after an hour or so if you don't click "I'm still listening" when the message comes up.

Please let me know by leaving a comment if you liked this post. If you saw the movie Julia and Julia you know that bloggers never know if anyone is reading unless they get comments. I sure do appreciate any readers out there and would love to hear back from you once in awhile. You don't have to register to comment, just be annoymous!

My Favorite keboard shortcuts

2010-01-31T10:18:00.001-05:00

• Ctrl + F4: Closes currrent Window (you may be asked to save changes)

• With mutliple windows open, hold your CTRL key and click on each, you will noticed that become highlighted or selected, then right click on one of the applications selected and “close group”.

• CTRL+C: Copy

• CTRL+X: Cut

• CTRL+V: Paste

• CTRL+Z: Undo

• CTRL+B: Bold

• CTRL+U: Underline

• CTRL+I: Italic

• Windows Key + M: Minimizes all windows

• Windows Key + Shift + M: Undo Minimize all Windows

• Windows Key + E: Windows Explorer

• Windows Key +F: Opens the Find Window

• Windows Key: Opens the Start Menu

Operation Able

2010-01-13T18:38:00.000-05:00

I have been asked to return to Operation Able in Detroit Michigan to teach QuickBooks to people over the age of 45 (and in most cases 55). This agency is funded by the State of Michigan and provides back to work skills for the older worker. I found them because I went to their website looking for work for myself and noticed that they teach Microsoft Office and other computer skills along with job hunting skills. I emailed the director asking if they were interested in offering a QuickBooks class. She emailed back immediately and hired me in December for our first class.

The students are so much fun and so eager to learn. They come from all walks of life and many different career industries. It is unfortunate that it takes so many months for the agency to get their funding but I guess that's what happens when your state is operating at a deficit and unemployment exceeds 20% (not including the underemployed).

I look forward to going back next week to see my friends at Operation Able. Many of the people who work here are interns or volunteers. The most exciting thing about Operation Able to me is that the environment is healthy, thriving and a great place to learn and network. Check out their website when you have a minute: Operation Able

Vacation Time

2010-01-08T13:47:00.000-05:00

I know about a secret vacation destination that all can afford!

A few of my family members are owners of a condo at Shanty Creek Resort in northern Michigan (not far from Traverse City). For only $120.00 per night ($130.00 on weekends) you have a three room unit with kitchen and fireplace (wood burning) that sleeps 10. You have access to skiing (down hill and cross country), snowboarding and sledding in the winter and golf and swimming in the summer. Spa facilities (massage - oh yes) and excellent meals in the lodge.

Within a short drive you are near the Leelanau Peninsula which is full of artsy shops and restaurants, Traverse City Cherry Festival in July, Mackinaw Island and so much more.

If you are interested in this rental (privately owned so don’t call Shanty Creek) email me and I’ll put you in touch with my sister!

Upgrading QuickBooks to Version 2010

2010-01-07T18:58:00.001-05:00

Today, I received an email from a QuickBooks user who was having difficulty upgrading from Version 2005 to Version 2010.

Intuit, Inc. requires their customers to upgrade so that the customer keeps up with technology. QuickBooks products must continually stay on the cutting edge and Intuit, Inc. cannot keep old versions active forever (or provide staff to support old versions). Four years is normally the availability for upgrading to a current version of QuickBooks. If you have a version older than four years, you cannot upgrade to the current or newest version. For Version 2010 you must be on version 2007 or later.

Your option in this case is to upgrade to a newer version than you have, but may not be the most current version, then, you can upgrade to the new version (this is known as “leapfrogging”).

I recommend my clients upgrade every year or every two years, to keep up with the current features.

If you have this problem and need to “leapfrog” to get your data to an earlier version please call me, I have many versions available and can help.

Job Hunting

2010-01-06T18:29:00.000-05:00

Thank you to Anonymous for requesting blog entries. I am like any other blogger, I run out of ideas and topics that I feel would interest others. Your suggestions will always be appreciated.

Many of you know that business is very slow right now for Success In-Formation LLC. As a result I have been looking for a position with a company that can benefit from my skills. Accounting, Project Management, Software Implementation, Sales, Training and Teaching, to name a few.

The job of looking for a job is grueling. When you have years of experience, it’s even worse I think. Recently I applied on a website (a recruitment agency) and the earliest year you could choose for completion of a college degree was 1980. Isn’t that discrimination?

Recently, I have been receiving emails with job leads. It comes from a friend, of a friend, of a friend. Once per week, an email comes with several leads. I think the only way to get a job right now is if I know someone or get a tip from someone. Let me know how the job market is working out for you.

You are the author of your companies books!

2009-11-11T20:48:00.000-05:00

A nice feeling to me is when I know the financial books are in order. Once all the data is entered to date, all accounts are reconciled and reviewed, I’m confident that the reports are telling the true story of a companies’ wealth.

One reason I like accounting is that everything has to balance. If the bookkeeper/controller is true to her/his work, they will work to make sure everything balances to the penny. You just never know when a $1.00 adjustment is really a combination of errors resulting in a net difference of $1.00.

Once you know that things are caught up and in balance, it’s time to read the reports that tell the story. Learn to read the following reports:
• Balance Sheet
• Profit and Loss aka Income Statement
• Statement of Cash Flow
• Subsidiary reports which may list out items that are shown as totals on the Balance Sheet

Once you understand these reports, you open the book of your company… the General Ledger, this is where the detail is.

And your companies story goes on year after year….

Tofu with Peanut Sauce

2009-11-10T12:53:00.000-05:00

In my last entry, I mentioned that I would send you a recipe. Recently, my favorite dish is one I made up but I absolutely love it. I'm trying to stay away from meat. After seeing the movie "Food, Inc" I try only to buy organic meat, but that can be expensive, so I've been eating more tofu and tempeh.

Tofu with Peanut Sauce (spicy)

Saute garlic and sliced onions
Add Tofu (cubed, firm)
Add Shredded carrot (I used my potatoe peeler to shread it)
Peanut sauce (I add liberally, but it might be spicy if you do)

Saute the tofu long enough to get it browned and simmer with the peanut sauce long enough to allow the tofu to absorb the flavor.

I have had this at a restaurant and it includes broccoli and cabbage so you could add any vegetables that you like.

Serve over rice.

Kicking it up

2009-11-07T14:02:00.004-05:00

I have decided to kick this blog up a few notches. Let's face it, accounting is boring. If you need help with accounting the best bet is to contact me, schedule some one on one time together and nip your fear of accounting in the bud, or call me and have me do it for you. So...I have decided to include in this blog, some everyday tidbits of my life as a small business owner and under-employed accountant/business consultant.

Yes, that's right, business is so slow that I cannot maintain just with Success In-Formation LLC. I have been hitting the pavement, both literally and the cyberspace pavement, looking for a job. A job that includes benefits so I don't have to wait two years for the government health insurance option (cross our fingers on today's vote).

Back to the blog, I am going to offer interesting information other than accounting, I need to hear from you if you like it, that will determine the direction of my blog. Today I'm making a vegetarian dish with tempeh, kale, sweet potatoes and marsala wine (I'm making it up as I go) If it's good, I will tell you about it. If it's not good, I'll tell you about a different recipe maybe.

If you like this blog, please share it with your friends, the more hits I get, the more traffic to my website and maybe I'll get some much needed income.

I will still offer accounting and business tips, but they will just be a part of this blog, not all of it. Thanks to Cheryl from metro Detroit who called today for QuickBooks help. We will do a short (1.5 hrs) session tomorrow on line. Yes, that's right, I work on Sundays!

American Contractor by Maxwell Version 8.1

2009-11-02T12:54:00.005-05:00

What a nice upgrade we now have in American Contractor. New features like the ability to create your own screen views, filter by any field "easily" (you could do it before but now it is much easier) and the cleaning up of many reports and adding new reports, like number S0571 (billing form for AIA type invoicing).

If you are an American Contractor User, it is definitely time to perform the upgrade. The program is stable and much much nicer than 7.8. When you do, your first step should be to go into each "center" and click on View: Customize Current view. You can add calculated fields to your views as well as simple changes like rearranging columns and deleting columns you don't want to see. No more seeing unnecessary fields (like state and zip) on a daily basis unless you really want to. To me, it was wasted space better used for something like "user defined: job type" or "last receipt date".

And if you aren't using info center yet, you will need to now. Drop and drag your outlook contacts into AC and it will create a contact for you in AC that you can use for any purpose, maybe for a "bidders list". Drop and drag your outlook emails into AC and attach them to a job.

For me, attaching invoice PDF's to jobs is a lifesaver for looking up information. And if you are using efax, they already come to you in fax form, so it's so simple to attach the pdf, you don't even need to scan them. But scanning with info center is a piece of cake. One example of the time saving of doing this: a job is a cost plus job, when it comes time to do an invoice, you are required to submit copies of vendor invoices. Now, just go to the job record, click on info center and there they are, waiting for you to print them to send with the invoice.

All in all, Maxwell has shown that they have the resources and the desire to stay in the market for the long haul. While we are in an economic downturn, they are using this time to improve their product for contractors who are also, in it for the long haul.

New Video on QuickBooks Preferences

2009-10-26T11:08:00.002-04:00

Multi-currency functionality

2009-10-21T12:10:00.002-04:00

Beginning in 2009, QuickBooks added the feature of having Multi-Currency functionality in their software. I must say, Intuit really surprises me with what they do with QuickBooks. It has come a long way from what it once was. With this feature, you choose your preferred currency when setting up your company. You set exchange rates for different currency types that your customer or vendors may use and as you set up your vendors or customers, QuickBooks asks you for their rate and converts the currency to your rate.

Today, I did a bit of research for a company in the Dominician Republic who's default currency is Pesos. I researched for a software that would work in conjunction with QuickBooks to allow the user to understand the English words that the program uses, such as "transaction", "vendor" "general ledger", etc. I did find a software that will provide "pop ups" to allow a person who speaks Spanish to understand QuickBooks.

It always amazes me how much is available via the Internet. The world has become a smaller place and I like it that way.

Now....to just get a trip to somewhere warm in February instead of working on-line from the cold north!!

Let's Get Organized - Accounts Payable

2009-03-21T15:29:00.004-04:00

Accounts Payable aka Vendor Bills

When bills come in the mail, code them with the job and code (roofing, siding, etc) and enter them daily into your accounting software as an accounts payable bill.
File them in an A-Z accordion folder that is labeled "Accounts Payable or Bills to Pay".
Twice a month (weekly or monthly) when it's time to pay bills, print an open payables report to choose what you want to pay, pull the bills from your blue accordion folder and select the bills in your software to be printed.
Print checks using three part checks (body, stub, stub or similar). After checks are printed, use window envelopes to mail the checks to the vendor.
Staple the bottom stub from each check you printed to the group of bills they are paying.
File each vendors paid bills (with check stub attached) in the appropriate "paid bill file folder" (see below).

This may be contrary to what many contractors want to do, but something I highly recommend. Job reports can be printed for the job file showing all job costs including paid and unpaid bills and more. By stapling all bills together with the check stub, they are all in one place and you can always go to the same location to find them. Waivers if printed with the bills can be filed in the job folder, or even in the paid bill folder. You will know where to get them if you need them, many times, you won't need them unless liens are filed. At the end of the year, the paid Bills folders can be stored away and new file folders created for the new year.

File paid bills in file folders labeled for each letter and/or for your major vendors:

"ABC Electric, Paid 2009"
"A-Misc, Paid 2009"
"B-Misc, Paid 2009"

Email sarah@successif.biz if you would like a word document ready for printing onto labels of your "Alpha- Misc Paid 2009" file folders.

Getting to 100% Complete on Jobs

2009-03-21T13:29:00.002-04:00

Following is a repost of an earlier blog post, I have many contractors ask about this process:

Most software written for construction will automatically calculate a percentage complete on a job. This percentage is a percentage of actual costs to the job budget. If you haven't entered a budget, most software will calculate the percentage as 100% because it will assume your budget should be what your costs are. The way to avoid this problem of course is to be sure you enter a budget for every job.

Another challenge in construction is to get the calculation to 100% complete when the job truly is complete. It is rare that a jobs cost is equal to its budget. There will most always be a slight variance. I recommend the following when a job is complete.

Set up a cost code or tracking code called "over/under budget".
Review the job (see previous blog) to be sure it is complete.
Enter an internal change order (which only posts to budget, not to contract amount) for the amount of the difference so that you force the budget to equal the final costs.

Be sure to record the amount in #3 to the code called "over/under budget", this preserves your original budget figures and also allows you to see your "over/under budget" amount by job at any time which would be a great report to view by Project Manager, Estimator or Crew Leader over a specific length of time.

Taking the next step

2009-03-09T22:55:00.004-04:00

You've purchased new accounting software, you may even have integrated estimating software and may be sending your bids from the estimating package to the accounting package. Wonderful, you have done well. Now you are ready for the next step. Some of the setup procedures that sometimes take a back seat to be done later may need to be reviewed. Now is a good time to choose one more task to get you closer to your goals:

General Ledger Budgets - set up projections for income and expense accounts to keep the numbers in check and make it easy to review on a monthly basis.
Statement of Cash Flow - is it set up, do you know how to read it?
Fine tune your Chart of Accounts - get rid of accounts that were ".. in your software" and are not used by your company, summarize some accounts so that your income statement is clean, or your balance sheet includes totals of all vehicle loans allowing you to refer to supporting schedules for a detailed list.
Do you have a remote data backup procedure in place? Put the responsibility in a reliable companies hands to be sure you have a good backup on a daily basis. The benefit far outweighs the cost.
Is your equipment in good shape and up to par? RAM is very inexpensive these days, good network cards are worth their weight in gold and also inexpensive.
Is it time to review jobs that need to be closed? Set up procedures for reviewing closed jobs and mark them closed in your software.
Are you current in your monthly closings? Are procedures written down? Does everyone know their duties as it relates to this important task?
If you are using QuickBooks, are your items clean and directed to the proper GL accounts.
Have you scanned your logo and are you using it on your reports? Do your reports look like you want them to look?

Keeping up with Technology

2008-12-21T20:22:00.003-05:00

Recently one of my on-going customers called asking for assistance. I hadn't talked to them in several months and was happy to hear from them, not just for business, but because I enjoy their friendship. Their question could not be defined as just software assistance or accounting assistance, it is sometimes a blurred distinction between the two because one leads into the other.

What intrigued me was when she said "Sarah, will there ever be a time when I will not have to learn new things?". My response was of course "no, that's what keeps us young and keeps our mind active".

As much as we don't want to sometimes, learning is the livelihood of our lives.

We are learning as babies, playing with our toys. We have to change the toys babies play with every 6 weeks because they get bored with the ones they have mastered.

We move through our school years being challenged to learn more, sometimes feeling overwhelmed but always trying to do our best, then moving on to another level, grade, certification or degree.

Some of us learn pottery, sports or to challenge our bodies with physical fitness.

We become parents and most times, are not taught how to be a parent. We learn from others who are parents, maybe learning not to do what they have done, but more often, modeling those who we respect and have raised children we would love to have as our own. Then, we become grandparents, we learn to be quiet until asked, we learn to watch our children learn and we look upon learning in a different way, as one of the many circles of life.

We retire and take pride in hobbies we have had , like woodworking or golfing until we become challenged with physical limitations, then we learn to adapt to those hobbies that our bodies will allow us to tackle. We learn, that limitations are just another challenge to overcome.

So, why in our work would we expect learning to be any different? We learn our jobs, then the tax rules change, the software is updated, the economy requires we manage our business differently.

Always, we are learning and as long as we take on the challenge as something positive, we will be rewarded with a sharp mind and a positive role model for others who just might be watching silently from a distance.

Adjusting Journal Entries from your CPA

2008-11-14T18:08:00.002-05:00

As a consultant for many small businesses, it really bothers me when a CPA does not make sure after the tax return has been done that the client’s books match the tax return. Most small businesses don’t understand or realize the importance of this. Many small businesses rely on their CPA for accurate numbers, not realizing that they should and could have financials that match their CPA records at their fingertips, on their own computer.

Adjusting journal entries are entries that are done once your CPA reviews your books and makes any changes before filing your tax return. These adjusting journal entries should be given to you along with your tax return. They will include depreciation (if not previously posted), may include changes to fixed assets and prepaid expenses as well as loans if the interest expense had to be adjusted. If any personal expenses were paid from the business the adjustments will also include changes to the owners equity.

Your CPA works for you, ask for your adjusting journal entries and post them in your books if the CPA hasn’t done that for you. If you need help, we can help at Success In-Formation LLC.

QuickBooks Question & Answer Session

2008-08-15T08:58:00.003-04:00

Anyone interested in a QuickBooks Question & Answer Session on a Saturday or an evening, please email me at info@successif.biz. Remember to tell me your time zone when you tell me your preferred time.

Our most recent Q & A sessions have only drawn one person. I'd like to pool some people together for a group session. There are always good questions when there is a group.

The session is free for 90 minutes.

Communicating accross Generations

2008-06-15T23:12:00.003-04:00

You can see here, why I have been amiss about posting on this blog. I am a new Grandmother. Here, my granddaughter is less than a week old and for a few minutes, we communicated in our own way.

I spent just over two weeks with my daughter and her husband before, during and after the delivery of Victoria Tate. I learned just how much things change through the years. I remember my mother being with me when I was having children and she must have been thinking the same thing. You'd think that things like having babies and nursing would be so natural that they would be done the same across generations. But this is not the case, innovations in baby care, clothes, toys, re-discovered (by me at least) herbs, salves, diapers (no pins anymore even for cloth diapers). It didn't take long for me to realize that the old school way was my way and I suddenly felt my age, I guess I should, I'm a grandma.

So many times we want to do things because we know they work. Because we are used to doing something a certain way. It doesn't always mean it's the right way and it might not be the wrong way, but there might be a better way if we are open to listening, watching and learning.

Blog Block

2008-05-26T15:49:00.002-04:00

I have been experiencing a combination of a busy schedule, a new grand baby on the way and a new found dilemma called "blog block". I feel a change coming. For any of you who have followed my blog, I apologize and will be posting very soon.

Mastering the task - one bite at a time

2008-04-07T09:35:00.003-04:00

One of my favorite mentors in my life used to remind me when I was overwhelmed with a task at hand: "How do you eat an elephant Sarah? One bite at a time".

I'm sure that quote belongs to another person and forgive me please for not citing the correct author, but I do relate to the quote. I get overwhelmed as often as my clients do, but I try to pick the most important tasks and concentrate on the task at hand instead of something I "should be" doing. There will always be lots of work to do and we are all very busy people. One way to keep moving forward is to continue to master our software to learn easier ways to do the tasks at hand.

How to you master your software? One new task at a time, for example:

QuickBooks:

Begin adding or organizing items - one hour per week
Begin using just one additional billing method - this month
Merge vendors (customers, items, accounts) that are duplicates - 4 per week
Attend Success in-Formation http://www.successif.biz/ Free On line Q & A Session each month with a list of questions to ask - 90 min per month.

American Contractor:

Begin using T & M Invoicing for one job this month - read help next Tuesday.
Begin using Info Center by scanning in AP Invoices for just one job - starting on the 15th.
Add your daily/weekly tasks to Fast Access in Command Center - one time, next Friday morning
Schedule Night Auditor this month to reindex every Tuesday night - Schedule it tomorrow (takes 5 minutes to schedule it - read help for more info)

Windows:

Name your saved files in a consistent fashion - begin today as often as you can.
Organize your folders on a shared folder/eliminate duplicates in just one folder - 15 minutes each Wednesday after lunch.
Schedule an automatic backup or contact a remote backup company this month so you don't have to worry about loosing data.
Learn to connect to the office remotely - this month.

Microsoft Word:

Make your tables attractive using Styles - one table at a time as you need them.
Learn about QuickParts by reading help and creating one. - Next Friday afternoon.
Add a commonly used document to your templates - this week.

Microsoft Outlook:

Add a tag line about your business to your signature line - change monthly on the 10th of each month
Delete your junk mail folder- once per week, glance at the emails quickly for non-junk, then delete.
Categorize your contacts into logical categories to find contacts quickly-create or clean up one category per week.
Add above tasks to Outlook to remind you, over time, you will be happy you did them, they will make your life easier in the long run.

Learning in the Now

2008-03-25T09:19:00.002-04:00

Learning new software is a wonderful time to practice, living in the present.

There area many books out about "living in the Now" and "focusing within". I remember when I used to demonstrate software and I could feel myself "being in the zone". Time would go away while I was in a contractors office showing them a software program. I would focus on their questions and make notes and show them the software. I got very good at knowing my success rate by the time I left their office. I could feel the connection we had made, or didn't make in some cases. I could assess their needs and concentrate only on them. When this was happening, I lost track of time. Sometimes the demo would take 3 hours, sometimes 45 minutes. It really didn't matter, what mattered was that I was there at that moment, living in the Now.

Life is so busy, offices are so busy. It is very hard to do your present job as well as implement new software. It is especially hard if you don't have a plan of action for how it will happen and if you cannot focus on that plan. Your focused hard work will make your job easier in the near future.

Focusing within means giving attention to the task at hand and to yourself. Be good to the person who has to do this task "You". Give yourself time to read, concentrate in a quiet place, not answer the phone, just to breathe and relax. You deserve the chance to fully grasp what you are doing in the workplace. Someone at your office decided that now was the time to implement new software. Based on that decision, you can decide that "Now" is the time you will give your undivided attention to your needs in order to learn and perform this task.

As quoted in "The Power of Now" by Eckert Tolle, there is an Eastern saying "the teacher and the taught together create the teaching". I can say from experience, that a successful implementation are when both the teacher and the taught are focusing in the present moment.

Happy Learning!

Networking

2008-03-18T10:12:00.007-04:00

I have always valued the benefit of networking. It is a challenge to decide what networking opportunities are the most time effective. There are a limited number of events per month I can manage to participate in so deciding which will benefit my business the most is a marketing decision I struggle with each month.

I am a member of the National Association of Women in Construction (NAWIC) and have been for 30 years, longer than I have done anything else, including raising my children.

My business is a member of two Chambers of Commerce, both Manatee and Pinellas Park in Florida. I am on the small business committee of the Manatee chamber which meets once per month for an hour in the morning.

When I was in Michigan I was a member of the Construction Association of Michigan and the Associated General Contractors. I have not re-joined any construction associatons other than NAWIC since being in Florida (now 3 1/2 years) but am considering making that move soon.

There are network associations popping up all over the place these days. They are private and local to your specific area. In these associations, the members refer the other members of the group to each other and everyone they know. Some groups have only one of each kind of company in an industry so your competition is not a member of the group at the same time you are. But...you cannot miss meetings, if you miss your meeting, another company, possibly your competitor will take your position. If I refer someone to one of my clients or a friend or my family, I want to know they are good at what they do. I don't want to refer someone just because I'm in a group that requires me to do that. I understand that the theory is to grow your business, but I'm not sure yet if these groups are for me, although I'm sure there are very skilled people in the group that I would be happy to refer.

With the Internet, we network no matter what we do. The world sees us, blogging, writing articles, what colleges we attended and who our friends are (my space, face book).

It is important to say what you mean and stand behind what you say. If we aren't sure of something, we must state up front that it is an opinion or we shouldn't say it at all. My mother taught me and I taught my children "if you don't have anything nice to say, don't say anything at all". I guess after all these years, this still holds true.

Oh and one more thing, Blogs are almost always "opinions"!

Happy Networking!

Document your Business Process

2008-03-04T17:39:00.001-05:00

Every business needs to document the process of how things are done in their business. If you don’t state in writing what you what to happen within your company it just won’t happen, especially in the way that you expect.

Just like instructions to do a task, a business process states how things are to be handled at your company, in brief form. It doesn't have to be as detailed as a procedure or policy manual. Think of your business process as "the big picture" that helps to explain how your business functions. What you do in your business will determine how detailed the document is and what form it takes on.

It may take the form of a gantt chart or it could take the form of a flow chart. If that is too elaborate for you just put it in writing, it will be referred to often. It may become a jumping point for creating employee training instructions (saving you time every time you hire someone), company referral charts (where do we buy this, who do we call to refer that service, etc) and many more documents that together may be come your company policies and procedures.

Wouldn't it be nice if the next time an employee says to you "how do we do backup" you can just say "did you look first?" in the documentation!

For more information on "Documenting your Business Process" go to http://www.successif.biz/ and click on Articles and Links.

Marketing for a non-marketing professional

2008-02-12T20:57:00.000-05:00

Marketing has got to be the biggest time drain on my business, along with keeping up with technology. I've been doing marketing work this week. Making changes to my website, talking to other professionals who can offer services that are compatible with mine, net working in general.

I try to market on a tight budget. It's tough to know what will work and what won't and just like any small business owner, it's 9pm at night and I'm still working.

I finally posted some articles on my website. I'm trying to offer free information so people can get to know me. Not just junk, but really good stuff. I need ideas for topics, please send some!

That's another subject: the web definition of an article. It's the big thing these days, "get your articles published on the web". Funny thing is, what "they" call articles are about 3 or 4 paragraphs. People don't have time to read much. It's amazing what a time warp you can get into when you get on the web, so articles are kept at a minimum. We all need time for our other life; reality: those who give you a kiss every now and then when you aren't pecking away at your computer.

A day in my life

2008-02-09T11:54:00.000-05:00

Recently I spent a day with one of my new clients. I spent the day with them in their conference room along with their chief estimator, vice president and their controller. We looked at their new software and viewed screens within the software and discussed their current business process and how it would fit into their new software.

What we did in that meeting was so important to the success of this company.

It was important that the meeting was attended by the key players and only those players (although there are times when all players should be involved).
It was important that all of us dedicated that time to the meeting un-interrupted with no phone calls, only a break for lunch.
It was important that the software was used as a guide for how things would be done and who would do what and what sequence of events would be followed.
As the process for the implementation of new software was unveiled, notes were made about how to perfect the existing process in the future. IE: potential problems in the current process were uncovered that came up as a result of creating the new process.
It was important that we documented the revised process right there in the meeting as a part of the meeting.

We all came out of that meeting with a clear process in writing of how their company would function using the software to it's fullest potential.

Keeping up with the Blog

2008-02-05T22:22:00.001-05:00

I know it's been some time since I posted here and I appologize for the delay. Many companies decided that 2008 was the year to get new software and that thrills me, and it keeps me very busy. I am always happy to see the progress companies make when they implement new software. It's like cleaning out your house and repainting, sending all the old clothes to Goodwill, buying new furniture and appliances and learning how to finally program the DVD player, all at the same time. What a task, but how rewarding when everything is set up, organized and the employees truly understand why they are doing what they do and everyone understands how to read the reports.

January 26th my daughter married her sweetheart who is a wonderful young man and I couldn't be more proud. The wedding was in the hills of Texas in a beautiful large log cabin. The weather was perfect and the guests were even better.

So it's back to work, meeting with my peer group and working on my website and classes and helping clients understand the world of financial software.

I sure do love my work. I hope you do too!

How can I get more Oomph out of my computer?

2008-01-16T22:27:00.000-05:00

Do you ever wonder what all those terms really mean? RAM, HD, CPU, Motherboard?

RAM stands for Random Access Memory. For those of you who aren’t computer gurus, this is the memory available when your computer is in the “on” position. This is what helps you open (access) many (random) windows at one time and run several programs at once with items minimized on your task bar. RAM is easily upgraded. RAM is sold in increments of 64MB (Megabyte) up to 512MB, then in increments of 1 Gig (equivalent of two 512 MB sticks) sticks. Every computer has a different type and speed of RAM so you have to know what you need when you ask for more memory. To find out what type and speed of RAM you need, you can “Google (www.google.com)” your computers model number and read up on the type of RAM your computer takes.

HD stands for Hard Drive. A hard drive is a physical item in your computer that stores data. The size of a hard drive is referred to in megabytes so many people think of it as memory but it’s really not considered memory. It is considered “storage”. Hard Drives can range from 1 Gigabyte up to many hundred Gigabytes. It is hard to know how much hard drive storage a user will need but an average person who doesn't save games or movies may use less than 40 GB (gigabyte) of storage. With the storage of movies and games, some people need larger hard drives. A larger hard drive will not necessarily speed up the processing on your computer.

CPU: Stands for Central Processing Unit and this is a tiny brain in your computer which sits on your Motherboard along with a little fan which keeps it cool. CPU’s usually last the length of your computer and unless you have a very high end computer, they are not always worth replacing. Many times a computer user keeps their computer so long, that is it just not cost effective to replace a CPU. It’s more cost effective to buy a new computer. CPU’s come in two major brands, Intel and AMD. It’s like Buick and Chevy, some people like one brand or the other. The confusing thing about CPU’s is the way they are measured when trying to compare apples to apples. Be sure to have a good sales person fully explain how they compare before purchasing your next computer. CPU’s are usually the most expensive component in your computer and also one of the smallest components.

Motherboard: This is the board inside your computer that everything else in your computer connects to. Your CPU must be compatible with this board. Different boards go with different CPU’s. Your RAM is plugged into your Motherboard. Your hard drive and other peripheral devices (like CD Rom Drive, DVD Drive and USB Ports) are plugged into the motherboard. If your Motherboard goes bad, it can be replaced but sometimes other things which are connected to it may be affected by the bad motherboard. Sometimes your operating system will need to be reloaded as it is licensed to the Motherboard.

To increase the speed of your computer, the most efficient thing to do is increase the RAM in your computer. If you need more storage space, adding a Hard Drive to your computer is not a bad investment if your computer is working fine otherwise. Replacing your CPU or Motherboard is often not cost effective unless your computer is very new, and in that case, they probably are still under warranty.

To check out your own computer, right click on My Computer, and then left click on Properties. Here you will see the following:
System: the version of Windows operating system that is loaded on your computer
Registered: who the operating system is registered to
Computer: The size and type of CPU you have in your computer as well as the amount of RAM in your computer. To check the size of your Hard Drive, left click on My Computer, then right click on the drive you want to know the size of (usually your C drive), left click on properties of that drive.

Decisions, Decisions

2008-01-06T21:58:00.000-05:00

What are the classes that will jump people off their pen and pencil and onto the keyboard to sign up? I’ve been contemplating that this year.

I want to start the year out with a series of classes for free, maybe for the home user. I also think a series specifically targeted at small businesses who need expert help from great instructors might be good (kind of like what Score counselors can offer but people never get out to utilize them).

I know I’m a little fish in a big sea of on-line classes, but I also believe that it just might be my advantage to be that way. I’ve been in so many offices and I’ve worked with people who have been forced to become the main financial managers for their company, and they never intended to be in that role to begin with. I also know that most companies I’ve worked with or talked to or worked for (90%) don’t have a business plan. Don’t set up general ledger budgets. They say when you set a goal, you will achieve it just because you set the goal in writing or verbally.

If only, I could catch people and share just one insight that would help make them more profitable or more proud of themselves.

Processing Payroll in your software when using a Payroll Service

2007-12-20T10:29:00.000-05:00

When posting to payroll there are several accounts that payroll posts to, some of these accounts are expense accounts which will post the labor and the cost of the labor as well as any benefits that the company pays for their employees.

The reason you enter payroll in your software even though you use a payroll service is to get the costs to the expense accounts and to the proper jobs and cost codes with the accurate burden which the software will calculate. This will replace any journal entry you used to do try to calculate the burden or estimate the burden to each job.

Because you are entering payroll, you will also be creating “liabilities” for payroll, or what the company would need to pay for this payroll। Since your payroll company pays these amounts, you will post these amounts to a “clearing account”. The liability + the net amount of the payroll checks will equal what the payroll company tells you is due to them to cover the cost of the payroll.

When the statement for the payroll comes in from your payroll service, you will post the amount that you owe them as you would normally, but you will not have to expense it to expense accounts since this was done during the processing of payroll। You will only need to credit your payroll GL account and debit the payroll clearing GL account for the total amount that is to be funded. This will zero out the clearing GL account if you record it each time payroll is done. If there is still a balance in the clearing account after this entry, you should review all deductions for payroll to be sure they are accurate and posting to the clearing account.

You may need to complete the payroll process by funding your payroll account (if you have a Cash account specifically for payroll)। You will put money in the payroll account from your general account to cover the cost of payroll. This can be done by writing a check from the general account and expensing it to the payroll account.

Success In-Formation would be happy to asssit you with setting up this feature in your software. We can be reached at info@successif.biz

Getting to 100% complete on jobs

2007-12-17T00:37:00.000-05:00

Most software written for construction will automatically calculate a percentage complete on a job. This percentage is a percentage of actual costs to the job budget. If you haven't entered a budget, most software will calculate the percentage as 100% because it will assume your budget should be what your costs are. The way to avoid this problem of course is to be sure you enter a budget for every job.

Another challenge in construction is to get the calculation to 100% complete when the job truly is complete. It is rare that a jobs cost is equal to its budget. There will most always be a slight variance. I recommend the following when a job is complete.

Set up a cost code or tracking code called "over/under budget".
Review the job (see previous blog) to be sure it is complete.
Enter an internal change order (which only posts to budget, not to contract amount) for the amount of the difference so that you force the budget to equal the final costs.
Be sure to record the amount in #3 to the code called "over/under budget", this preserves your original budget figures and also allows you to see your "over/under budget" amount by job at any time which would be a great report to view by Project Manager, Estimator or Crew Leader over a specific length of time.

Closing out Construction jobs

2007-12-09T16:02:00.001-05:00

Every construction company knows that jobs need to be reviewed and closed out when they are completed, but many times, no one is assigned the specific task and sometimes it just doesn't get done completely. If this is done on a monthly basis, it won't be as overwhelming a task as if it were left to be done once per year.

Following are some procedures for reviewing a completed job and determining it closed

Each job probably has several job folders belonging to several different employees throughout the company. I recommend that all job folders be collected when a job is complete to be filed in a "closed job" file cabinet together. After all, the company is the owner of all employees files, if an employee leaves the employment of the company, you will want that folder for future reference.
Job reports should be printed out to show the contract amount and the amount billed which should equal (including change orders).
Review if there are any pending change orders that have not been confirmed back from the owner, CM or General Contractor as to whether they were approved or denied. (you may find "un-billed money" here). Usually this won't be entered in the computer, so you will have to go through the folder, clipping similar paper together such as all correspondence for each change order together. Use this an an opportunity to organize the file and look for information not handled completely. The information in the folder should be organized logically, if you don't understand it, ask someone who does. Don't leave loose ends.
Make a one page document (lets call it "closed job report" for purposes of this blog) in large font that includes the following information: contract amount and amount billed (these should equal each other). Budget (aka estimate) and costs (these also should equal each other for the job to calculate at 100% complete - more about that in a future blog topic), if there is a difference, show the difference clearly. Retention or any Receivable on the job still due if any (if any money is still due, you may not want to close this job). Liens filed Yes or No, Liens released, Yes or No. Have a line for "percentage overhead and profit", divide the cost into the amount billed and put the percentage here. Then, make lines for the estimator, project manager and owner and any other individuals necessary to sign off on the job with space for notes and initials.
Show a computerized job report that shows both summary and detail of the overall job cost (listing costs by code with budget to actual variance) as well as billing information.
Review any Over/Under budget lines on attached job report and highlight them.
Staple or clamp the computer reports for the job to your "closed job report" for this job.
Place this group of reports on top of the file folders and ask the related parties, PM, Est, Owner to have a couple hours each month where they review the jobs to be closed and ask them to sign off that the job will be closed. (Make a positive experience of this time, maybe one Friday per month, the company brings in lunch and these employees meet in the conference room to review jobs to close out).
Once they have signed off on the document, put it in the main job folder, highlight all file folder tabs with a colored highlighter (a color that signifies within your company that this is a closed job) and write on the job folder that it is closed with a date and your initials. This is important in case the folder gets pulled at some later date and it isn't clear that it is a 'closed job'.
Change the status of the job in the computer to closed and file these folders in a special file cabinet called "closed jobs" organized by job number.

Once a job is closed, no costs or change orders or billings should need to be posted against it. If you feel that this is a possibility, don't close the job. That is the main reason, you need the approval of all related parties to close the job.

Be aware that this process may require reclassification of costs to various cost codes. PM's and estimators and Owners may find costs in this job that should have been posted to a different job. That is OK..this is why you are doing this. Once the job is corrected, get signatures and close out the job.

Types of General Ledger Accounts

2007-11-21T22:17:00.000-05:00

Sometimes I find that people need the basics. Often in small businesses, employees earn their roles in the company by default. Maybe an experienced bookkeeper left the company so the accounting clerk gets promoted to bookkeeper. Sometimes a couple takes on the role of running a company and choose to take on the accounting, management, marketing and running of the business. This is a big role, too much sometimes for just a couple and can be draining on a relationship as well.

When I work with companies, I usually find an employee who is hungry for all the knowledge I can share and they appreciate the basics. One of the accounting basics I share that seems to be appreciated is a very basic description of the types of accounts in the general ledger. If you number your accounts, or use the standard numbering for your chart of accounts, this theorey will be correct. If your numbering system is a bit different, the numbers may vary but the structure is the same. See what you think:

Basic description of the general ledger acccount types:

100 accounts are Assets. Things that you own or people owe you.
200 accounts are Liabilities. Liabilities are what you owe to others.
300 accounts are Equity. Equity is the worth of your business.
400 accounts are Income Accounts. Income or Revenue for the current year only.
500 accounts are Cost of Goods Sold Expense Accounts. This is the cost for what you buy to make the money listed as Income on your Profit and Loss. This is the cost for the current year only.
600 accounts are Overhead expense accounts. This could include shop and warehouse expenses or equipment expenses for the current year.
700 accounts are General Administrative expense accounts. This is the cost of keeping your office open, rent, office supplies, utilities, office salaries and wages, etc. for the current year.
800 and 900 accounts may include other accounts not listed above, such as Other Income, Interest Expense, Federal and State Taxes, only for the current year.

Items in QuickBooks

2007-11-18T20:15:00.001-05:00

Sometimes I just have to take a step back and realize how many companies are using QuickBooks and don't realize how to use Items. Recently I was browsing a contractor blog that I visit occasionally to read postings and comments. Of all companies, contractors benefit the most from using Items. Click the check box when creating an item that says if you are a contractor click here. When you do, another area of the item opens up so you can indicate your cost of goods sold general ledger account to post to if you purchase items for a job, or your income account to post to when you bill for a job. If you use the "items" tab in the "vendor bill" you can post your costs to the items. When you do your invoicing, of course you have to use an item to bill to. When you do both, you can see profitability of item reports.

Seminar options

2007-11-12T22:01:00.000-05:00

This last week, we completed another QuickBooks seminar in Tampa. This seminar is held in computer lab and lasted 2 1/2 days. Several of the attendees suggested holding the seminar for a full week, teaching in the morning and allowing the students to set up their companies in the afternoon as we help them and float around the room. Personally I don't think that people would take an entire week away from their office. I think it's hard as it is to get them away for 2 1/2 days. All the students loved the seminar but now see that they need to go back and do the work to setup their company on their own. They would prefer to pay for me to assist them, yet in a group setting where the price might be more affordable to them. any thoughts out there?

The difference in our seminar vs other QuickBooks seminars the students said was that we offered extensive accounting education which they hadn't understood when explained to them in the past.

Statement of Cash Flow

2007-06-28T21:06:00.000-04:00

One of the most valuable reports in any business is the statement of cash flow. Many business owners say "my Profit and Loss statement says I made $20,000 but I have no cash in the bank, where did the money go?". The statement of cash flow shows you where your money went for a reported period of time. This is a standard report in QuickBooks. Analyzing reports allows you to manage for success. Learn more about reading and analyzing reports at www.successif.biz.

Spell Check

2007-06-23T14:15:00.000-04:00

Turn on Spell Check in QuickBooks to save time proof reading documents and prevent errors in typing or spelling. Go to Edit/Preferences/Spelling /My Preferences, and check the box for Always check spelling before printing, saving, or sending supported forms.

Credit Card Transactions

2007-06-23T14:03:00.000-04:00

Are you NOT using the credit card feature because you don’t want to enter all those vendors into your vendor list for each credit card charge? Use generic vendor names like “restaurant” “fuel” or “hotel”. The QuickBooks credit card feature is awesome and rivaled by more expensive software. Stop entering from the credit card statement, start entering from the charge slips. Get control of your finances, it’s a great tool. To learn more about this feature, take a one hour class at www.successif.biz

Deleting and Inserting Lines

2007-06-23T13:35:00.001-04:00

Did you know that while in a transaction, pressing the Ctrl key + the Insert key at the same time will insert a row? To delete a row, press Ctrl key + the Delete key at the same time.