Using QuickBooks to Increase Efficiency

QuickBooks is a powerful tool that can improve your business. Getting to the place where it’s more than a glorified checkbook register, however, takes work on your part. You need to be familiar enough with QuickBooks and what it does to be able to squeeze out all of that extra productivity. In particular, QuickBooks can help your business run more efficiently in several ways:

  1. Track expenses in real time. Because you can track and control your cash flow in real time, you avoid problems of overspending.
  2. Identify profitability. You can review profit & loss reports to identify which products or services are bringing money in to the business and which ones aren’t.
  3. Understand customer payments better. You can review your customer records and identify which ones usually wind up in a slow pay situation. Because slow pays cost you money and can affect your cash flow, you can adjust your discount structure accordingly in order to incentivize quick payment.
  4. Know who your profitable customers are. In the same way you identify product and service profitability, you can identify which customers have the lowest margins, and find ways to increase those margins.
  5. Follow up with customers on the edge. While QuickBooks isn’t designed to be your sole CRM solution, you can use reports in QuickBooks to tell you how recently a given customer placed an order, identifying those customers whose buying patterns have changed and giving you the opportunity to save the account.
  6. Save time and money at tax time. If your QuickBooks is configured correctly and you are diligent about getting every bit of relevant information into the system, you’ll save time and money with your accountant when it’s time to file your taxes.
  7. Identify your sales strengths. You can use reports in QuickBooks to identify who on your sales force is consistently producing the most profit (which is not always the same person who is producing the highest volume of sales).
  8. Integrate with the rest of your business. You can connect QuickBooks data with a number of other software packages and solutions, including CRM solutons like ACT!

Job costing could help with many of these areas (see how to do job costing in QuickBooks for more information). Spend some time with QuickBooks today identifying opportunities for your business to improve.

Bernard Roesch About Bernard Roesch

Bernard Roesch is co-founder and Managing Partner of Mission Consulting. Bernard’s background in the early years of his career was spent in the manufacturing sector, making his QuickBooks perspective a unique one – he understands the intricacies of a complex environment and then applies his strategic skills accordingly.