Monday, November 2, 2009

Improve Your Financial Reporting Instantly!

Nothing irks me more than to receive a set of financial statements, no matter how detailed or well organized, and yet discover they are lacking the most critical element of all - the key ratios or percent of sales column over on the right hand side.

If you are using Quickbooks, this is all you have to do to produce a much more informative set of financial statements with these ratios automatically calculated.

When producing a profit & loss report, but before printing, look up towards the upper left on the toolbar and click "Modify." This will bring you to a new screen that allows for all types of special formatting.

Look towards the bottom and click the "percent of sales" box, and then hit Ok. Voila! You now have a profit and loss statement with key ratios such as paper costs, payroll, overhead expenses, etc..... all the key ratios one needs to have readily at hand to analyze your business!

This same type of formatting is available in virtually every accounting package on the market. You just have to search for it. Once you've found it, make sure it is memorized and from that point on every time you produce your reports the ratios will be calculated.

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1 Comments:

Blogger Dennis Ewing said...

Thanks for the tip John. I've been doing it the hard way. I'm sweating making it though the next few months. I've run through all my cash and things keep falling. I'm see a little rebound, All I have to do is keep pushing and I'll make it. I've got costs cut to the bone, but this gives me a new tool to keep an eye on things.

November 9, 2009 at 3:33 PM  

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