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Archive for June, 2007

What Is GAAP?

Posted by admin on June 20th, 2007

Copyright 2006 Bookkeeping R Us All Rights Reserved

GAAP stands for Generally Accepted Accounting Principles and represents standards, conventions and rules to be followed by accountants in recording and summarizing financial transactions and preparation of financial statements. These rules and standards come from various authoritative organizations and documents such as the AICPA, FASB statements, APB opinions, AICPA Accounting Research Bulletins and the AICPA Industry Guides as well as industry practices, traditions and accounting books and articles.

QuickBooks Classes

Posted by admin on June 19th, 2007

Copyright 2006 Bookkeeping R Us All Rights Reserved

Would you like to know how much profit is made by a particular department or location within your company? The use of classes will allow you to do just that providing you with reports showing the income earned and the expenses incurred for each segment of your business you wish to break out. For example, if your company is a retail store with more than one store it would be helpful to know just how profitable each store is. Or perhaps you are an electrician and would like to know whether you make more of a profit on commercial jobs versus residential work.


Setting up classes is very easy. First under the Edit pull down menu, choose Preferences. In the new window in the left hand column click on Accounting and then the Company Preferences tab. Check the box titled Use Class Tracking and the Prompt to assign classes box. To set up your classes, access the List Menu and choose the Class List option. On the bottom of the window that opens up click on the Class pull down menu and choose New. Name your class and click okay.

You will see a class field on all forms and should you save an entry without filling in the class you will be prompted to add a class. However, you will have the choice to either use a class designation or not to use one.

You may run a Profit and Loss Report by class by clicking on the Report menu, choosing the Company & Financial section and selecting Profit and Loss By Class. Other reports may be modified to show data by class should you wish. For example if you would like to see all open customer invoices by class, then bring up the Customer Open Invoice Report and click on the Modify Report button at the top of the window. In the Filter tab you may choose to filter by class and then you can either choose to filter by all classes or choose to filter on multiple classes. If you choose to filter on multiple classes an additional window will open and let you choose the classes you wish to see in your report.

As always QuickBooks gives business owners many ways to see and analyze their financial information in order that they might use this information in their quests for profits and success.

A Definition of Success

Posted by admin on June 18th, 2007

Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.

David Rockefeller
US banker (1915 - )

A Great Interview!

Posted by admin on June 14th, 2007

Copyright 2006 Bookkeeping R Us All Rights Reserved

Typically there are two nervous people in an interview – the person being interviewed and the person conducting the interview. You the employer, however, can overcome these jitters and the result will be a “great interview” for both of you.

As with any other task, preparation is the key. You go in cold and you will fumble through the process, forget to ask key questions and will not be relaxed enough to hear what is being said between the lines. After all almost all prospective employees have done some home work on what to say in a standard interview. You need to go beyond the expected and dig a little deeper if you want to hire an employee who will really shine.


Before the interview takes place, however you should carefully review all the resumes submitted in response to your job offer. What are you looking for? Besides name, address, job and education experience look for several other items. Neatness, spelling, and a sense that the person is being honest should be part of your first scan. Are there empty periods between jobs or has the person not stayed at several jobs for very long? These are signs that this might be a problem employee. Does their education and/or job experience fit your requirements? Do they have a life outside of work – that’s why we ask for hobbies, interests and membership affiliations. After all a person who is dull, uninterested, only associates with fellow workers often means an employee who will show up at work, do the job and only the job defined and then leave. Unless you are looking for just a body to fill a slot then this is not the type of employee you want.

Now, prior to the interview, check all the references given on the resumes that you find interesting. And now you are down to a much smaller group of people who you would like to meet.

Try to schedule your interviews in the morning, when you will be fresh and not bogged down by everything that might have happened during the day and your interviewee is also likely to be fresh. Mid-week is always better than Mondays or Fridays.

And prepare, prepare, prepare! Make a list of standard questions that you will ask each and every potential employee. And then a sub-list of questions geared specifically to each individual. Remember the goal is not just to determine the work and education qualifications of a person, but to get to know them. What do they like to do, what is it that really bores them? Do they like getting into the nuts and bolts of a situation? Do they feel comfortable at social gatherings or public speaking or are they more likely to be a quiet introverted type? While experience and education are certainly important it is often the personality fitting the position that makes or breaks a good hiring.

And if appropriate, have the prospective employee meet some of your employees and don’t forget to get feedback from both the interviewee and your current people. But remember the final decision is yours to make.

Do not get fooled by someone who has all the answers at their fingertips, they may be very practiced in interviewing but really are less than honest vs. a person who has to think about an answer or two. And lastly if you find a person who you really feel comfortable with but might have less qualifications or perhaps have a less than perfect job record then don’t be afraid to take a chance. You can always offer then a trial period where you can both try on each other.

Whatever your decision when you finally make an offer, put it in writing. The written job offer should include a job description, starting date and end of trial period if it is part of the offer, salary or wage, descriptions of hours required, a copy of the employee handbook or company rules if available and a list of benefits including paid time off allowances. If a trial period is in play, then the terms of the trial period should be clearly stated in the written offer. Include salary or wages paid and benefits offered within the trial period if they are to be different than those paid when the job becomes permanent. Also include a detailed description of what will determine whether the trial period becomes a permanent job offer. This will eliminate misunderstandings down the road.

And your last task is to send out letters thanking those who you did not hire. After all, you might want to consider then in the future.

Revolving Fund

Posted by admin on June 13th, 2007

Copyright 2006 Bookkeeping R Us All Rights Reserved

An account that is funded, used and then replenished and the cycle starts all over again. The most common example of this type of account is a Petty Cash Fund. A Petty Cash Fund is set up with a designated amount of money. Through out a period of time the fund is used to reimburse small expenses, pay for miscellaneous postage and deliveries, etc. At a pre-determined time such as once a month or when the funds are reduced to a pre-determine amount the fund is replenished.

When funding the Petty Cash Fund for the first time the entry is Debit Petty Cash Fund and Credit Cash. Prior to replenishing the fund a report is prepared dividing up the expenses by type and to determine how much money is needed to replenish the fund to its original amount. The entry to replenish the fund is Debit the appropriate Expense Accounts (such as Postage or Office Supplies) and credit Cash.

The Petty Cash Fund account is never posted to again unless the original amount assigned to the account is changed. For example you determine that the amount of money residing in the fund is inadequate to meet the monthly expenses or the fund is retired.

Copyright 2006 Bookkeeping R Us All Rights Reserved

Have you ever had to go back to review just how a deleted, voided or edited transaction affected your books? QuickBooks has provided you with a tool that will allow you do just that – an audit trail report.

The audit trail is always on and automatically tracks all changes you have made including additions, deletions and modifications making it easy for you to see in one report every changed transaction.

The audit report can be accessed through the report menu under the Accountant and Taxes heading. You may specify a date range which will show you all modified transactions for that period of time. Custom options include Dates, Date Entered/Last Modified, Columns and Show deleted transactions. When you run the report you will see a listing of the changed transaction (labeled Latest) and the prior entries for each modified transaction. And you can zoom down to the detail entry should you wish.


This tool is not for accountants only but is also a useful report for users that have permission to edit and or void/delete transactions. Whether you use it to review work done by others or to determine how a change you made has affected your books the audit report function is a great QuickBooks feature.

The Secret of Success -

Posted by admin on June 11th, 2007

“The secret of success is to know something nobody else knows.”

- Aristotle Onassis (1906-1975)