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3 Ways to Accelerate Profitable Growth with QuickBooks
Nick Roell
Mar 06, 2024
Growing a business is complicated, and success can be derailed by an uncountable number of fluctuating circumstances.
Even so, there are certainties. One of them is this: the more visibility you have into the financial details underlying your business, the greater your chances of success. It’s just as true for manufacturers as it is for construction companies or professional service providers.
And yet, too often we see business owners who are not taking advantage of one of the easiest and most effective ways to gain deeper visibility into the numbers driving – or stalling – their business growth: good accounting software. Here are three examples of businesses who overcame a common business challenge with the help of QuickBooks, an industry leader in small business accounting softwares.
Challenge #1: Understanding Service Line Profitability
When a commercial moving enterprise company with three service lines wanted a true picture of its profitability, the options didn’t look promising. Using spreadsheets to break down revenue by customer to assign profits for commercial moving, freight brokerage services, and specialized trucking services would be a time-consuming effort. Who had time for that, and how would they account for customers who used services across multiple divisions? Without accurately assigning the revenues, the business risked overlooking profitability issues in one service line that might be concealed by overall profitability.
Solution: QuickBooks Class Tracking by Service Line
Luckily, they didn’t have to resort to death by spreadsheet. An easy-to-use class-tracking feature of QuickBooks Online was implemented to assign every transaction to a specific division. Now the company can run its reports to breakdown profits and loss by each division for a clear picture of how each line of business is performing – or underperforming.
Challenge #2: Understanding Profitability by Location
A mobile phone provider with multiple locations believed its business was profitable but did not have the ability to see into the performance of individual storefronts. As a result, three unprofitable locations went undetected, their losses unseen and absorbed in the company’s overall finances.
Solution: QuickBooks Class Tracking by Location
Once QuickBooks Online class tracking was set up, the problem locations were quickly identified, and the business owner made the decision to close them. While he may have suspected that some stores were carrying more of the weight than others, a gut feeling is no substitute for 360-degree visibility into your business financials by entity, service, location – or however you want to slice it. Profits by location can be the difference between a healthy business and one that is bleeding profits and opportunities.
Challenge #3 Making Industry Software Work for Your Accounting Needs
Industry-specific software can be a powerful source of process improvement, especially in industries like manufacturing, construction, and distribution, where challenges around inventory and project tracking are built in. And yet, even some of the best software for manufacturers is better at tracking the flow of inventory and goods than facilitating timely financials. As a result, it’s common to find business owners manually entering invoices from their industry software into their QuickBooks. It’s clunky, time-consuming, and – happily – unnecessary.
Solution: QuickBooks Online Integrations
QuickBooks Online integration with industry software lets you keep all the convenience of your customized invoicing and inventory software without sacrificing the benefits of a more sophisticated accounting software – and without the need for duplicate data entry. It’s an easy win that will ensure you have the “at-a-glance” financial reporting you need without any unwieldy workarounds.
With QuickBooks Online, you’ll also have the confidence of knowing your data is always backed up and visible in real time. You’ll find it easy to integrate with credit and bank accounts and you’ll have access to useful add-on applications not available to users of QuickBooks desktop.
Your Accounting Partner as Your QuickBooks Partner
If you’re not sure whether you’re getting the most out of your QuickBooks or other accounting software, you probably aren’t. The good news is the Kirsch CPA Group team has decades of experience helping businesses like yours get the most out of the financial data you need to succeed. That includes help with leveraging, integrating, cleaning up and maximizing the value of your investment in QuickBooks and QuickBooks Online.
Let the Kirsch team show you how to easily drill down into your numbers for at-a-glance visibility and deeper insights into where your business is on the path to meeting your short and long-term financial goals – and where things need shoring up.
If you’re not getting the full picture of your financial health, or you’re spending time and effort that you could put to better use, reach out to one of our team members and learn more about our solutions for growth-minded business owners.
Contact us to learn more about QuickBooks
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About The Author
Nick is passionate about making an impact on small and medium-sized businesses. Focusing on increasing the performance of…
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