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QuickBooks Insights – Material: Not the Clothing Kind

Fourlane QuickBooks Insights

We at Fourlane have learned a lot from our customers when it comes to the problems they run into with their QuickBooks files. With our services, we try to help the businesses we work with identify the true issues hiding beneath the surface, and walk away better off then when they came to us. That’s why with this QuickBooks Insight series, we hope you can identify with the experiences other customers have faced.

Today’s QuickBooks Insight Tip #6: Material – Not the Clothing Kind

Time is the most precious commodity all leaders have today. Our roles in the accounting or finance side of the house should be to protect that time. We can best do this by removing immaterial amounts from financials and instead using subledger reporting for details.

Time Sucker

A Franchisee for a car repair franchise had set up every vendor on their chart of accounts as an expense line. He wanted to be able to look to see very specifically where his cash was going on a monthly basis. Some of these vendor totals would be less than .005% of revenues over the course of a year.

We like to explain it like an email sitting in your inbox. Every time you look at this email it takes you away from your overall goal and direction and makes you think about it. The same happens with immaterial amounts on your Profit & Loss statement.

Our Solution

We showed our client how to run a purchases by vendor report, and even further, how to use items to get more details without bogging down the chart of accounts. The comfort that the details were readily available allowed the customer to part ways with his detailed vendor expense reporting on his financial statement. Instead we were left with material buckets of numbers that were at least 5% of revenue or more.

We’re Here For You

Whether you need help with QuickBooks, advice on which QuickBooks to buy, or are outgrowing QuickBooks, our team of certified experts can help. For easier QuickBooks imports, exports and more, visit Transaction Pro.

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About Marjorie Adams

Our head QuickBooks trainer and guru, Marjorie Adams, is Founder and CEO of Fourlane, Inc., an award-winning consulting firm and Intuit’s #1 QuickBooks Reseller Partner. Fourlane’s team of experts offers several QuickBooks oriented services including consulting, training, programming, integration, and more. Over the years, Fourlane has helped over 10,000 customers across many different industries with their QuickBooks accounting software. Marjorie Adams is considered one of the top QuickBooks trainers in the country. She was listed on CPA Practice Advisor’s 40 Under 40 in 2014 & 2015, and has been recognized as Intuitive Accountant’s 2015 QuickBooks Desktop ProAdvisor of the Year. Marjorie sits on Intuit’s VIP Program, is a frequent contributor to Inuit Accountants News Central, and has developed Intuit’s QuickBooks Enterprise Certification training. She has also been published in The Wall Street Journal, Forbes, BusinessWeek, American Express Open, the Huffington Post, and Inc. Magazine.

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