QuickBooks Tip #1: Memorized Transactions

If you have any recurring transactions you may want to use the memorized transaction feature in QuickBooks. This feature will not only save you time but could also serve as a reminder to you or automatically post to give you a better understanding of your available cash.

Here is how it works.

To set up a memorized transaction:
1. Create the transaction you want to memorize (bill, check, estimate, invoice, etc.) as you'd like it memorized.
If the content of certain fields will change each time you recall the transaction, leave those fields blank (i.e. leave the amount field blank on your monthly cable bill). That way, you can fill in the amount each time you recall the bill.
2. Go to the Edit menu and click Memorize. In the Memorize Transaction window, enter a unique name that will help you recognize the transaction on the Memorized Transaction list. Choose whether you want to be reminded to enter the transaction, have QuickBooks enter the transaction for you, or neither. Click OK to memorize the transaction.
3. If you are only entering the transaction information for future use, close the transaction window by clicking the Clear button and then clicking the close box at the top of the window.

To use the memorized transaction:
1. Go to the Lists menu and click Memorized Transaction List.
2. Select the memorized transaction you want to use.
3. Click Enter Transaction.
4. Make any necessary changes or additions.
5. Save and close the transaction

Some examples where this feature would be helpful include:

• An automatic debit to your bank account for a credit card or loan payment (we create a check and memorize it with a check number = dd for direct debit)
• A bill you pay every month but don't receive a statement or invoice (i.e. rent) -either create a check or bill and memorize it. Code it to automatically post monthly.
• A lengthy estimate that is frequently used - create an estimate with the items that are normally used, then memorize it with a unique name. When you click it on from your memorized transaction list, you can add a customer name and add or change any items.
• Repetitive invoices to the same customer (you may want to group invoices by frequency - weekly, monthly, quarterly - to create a group, go to the Lists menu and click Memorized Transaction List, click Memorized Transaction at the bottom of the list and click New Group, enter the name of the new group, then choose how you want to manage the transaction group).

10 Tips for Surviving and Thriving in a Down Economy

Right now our economy is on a roller coaster. To make sure your business not only survives but thrives, you need to be creative, cautious, and compassionate. Here are some tips that can help:

1. Keep your vision a reality
   Write down your vision statement. Do you still believe it or have you strayed? What is your NEW vision?
   
2. Review your cash flow
   Examine your credit policy: Are you invoicing properly? Do you provide clear information concerning terms? Do you maintain an aging accounts receivable report and are you promptly following up with delinquent accounts?
   
   Examine your cash pay-outs: Are you taking advantage of trade discounts? Do you pay each bill only as soon as you have to? If temporary cash flow ia a problem, have you set up extended terms with your creditors? Remember to buy only what is needed, when it is needed (just in time inventory control).
   
   Examine your payroll: Consider overtime, part-time and freelance before hiring new employees. Don’t pay all employees on the same day. Examine your salary for reduction during slack periods and increases during times of higher volume. Be careful about providing too many costly benefits. Offer employee discounts.
   
   Examine your inventory controls: Be sure to check security to prevent theft. Instruct employees on proper handling to prevent breakage and damage. Don't be caught with obsolete inventory.
   
   Examine your purchasing costs: Reduce number of items purchased. Reduce number of vendors. Eliminate unprofitable products. Don’t sacrifice quality for low prices unintentionally. Use recycled goods - i.e. a laser printer cartridge recycling service. Consider leasing: Leasing may be alternative to purchasing fixed assets.
   
   Increase your available credit NOW: If you have good credit and are disciplined about using it, increase or establish credit lines at banks, ask for higher limits on credit cards, or apply for additional cards.
   
   Reduce debt: Just because you have credit, doesn’t mean you need to use it. Reduce debt as much as possible. Move balance in high interest credit cards to fixed rate loans or lower interest credit cards.
   
   Reduce discretionary spending: You will survive and thrive in tough times if you have sufficient cash to make it through. Don’t spend money on unneeded renovations, trips, etc.
   
3. Examine your marketing plans
   Although it typically costs you six times more to sell something to a new customer than to an existing customer, you need to constantly work on increasing your customer base. Be willing to do whatever it takes to get a potential customer converted into a paying customer.
   
   Be careful to target your market: The more you focus on the people/businesses who most likely want or need what you are selling, the more cost effective your marketing efforts are.
   
   Look at alternatives for marketing your business: Don’t stop marketing but look for cost-effective marketing. Determine if coop advertising is available. Use woed of mouth marketing (networking) to market your business and tend your net! Remember marketing really begins once you’ve made the sale – follow-up, follow-up, follow-up and be sure to track your results!
   
4. Optimize your customer relations
   Remember the 80/20 Rule: Which customers are you spending 80% of your time on? Which customers make up 80% of your dollars? These are the ones you want to focus on! Re-examine customers to make sure they’re profitable and dependable.
   
   Provide good customer service: What is your vision of outstanding customer service. What does your customer expect?
   
   Find a way to get more referral business. Give discounts/prizes for referrals. Have clear policy on returns and repairs and offer a guarantee. Use customer furnished materials
   
5. Focus on your selling skills
   Reactivate dormant accounts: Sit down with your list of old clients and call them. Don’t make it a hard sell.
   
   Help existing customers to create new sales for you: Suggest ideas for products or service that you can help your customer with.
   
   Quote reasonable, affordable prices: Don’t lower your prices to rock bottom – remember the perception you may be giving potential customers about your business. Offer packaged pricing - add on pricing less than individually priced.
   
   Postpone any planned fee increases: A down turn in the economy is NOT the time to increase your fees.
   
   Repackage your products/services to accommodate smaller clients or reduced budgets – offer more do-it-yourself type services or no frill products with smaller minimum orders, better payment plans.
   
   Add value to your existing products or services – offer faster delivery, larger selections, more colors, more options, easier payment terms, better guarantees.
   
6. Get your staff involved
   Brainstorm new ideas. Involve them in the solutions. Create a positive work environment – make work a fun place.
   
7. Update your business plan
   Update your financials and marketing strategies. Research the trends that are happening in your industry. Update your goals and strategies.
   
8. Utilize technology
   Use technology to give you more sales and marketing time (automated accounting systems, database manager). Invest in innovations that can help you better compete or reduce costs (i.e. cable phone service)
   
9. Preserve and enhance your greatest asset: Yourself!
   Reduce stress. Maintain a positive attitude (It’s not you aptitude but your attitude that determines your altitude).
   
10. Other areas
    Keep good records. Barter. When you think you’ve covered it all - do it again!

Let me know some of the ideas you have utilized to thrive!

First Impressions Make a Difference

What kind of first impression do you make with your potential customers? Grade yourself on the following items. Give yourself a “1” if you are really good or a “0” if you need to do some work in a particular area:

1. Your personal appearance: Are you always dressed appropriately and professionally? To your prospects, you represent your business 24/7.
2. Your attitude: Remember it’s not your aptitude but your attitude that determines your altitude. Your attitude is the single most important skill that you possess when dealing with people. Have you checked your attitude recently?
3. Your body language and tone of voice: People will believe your body language and tone of voice before they believe the words you say. What are you really “telling” your prospects?
4. Your greeting: Are you (or whoever answers the phone for you) professional and do you greet the caller with a smile in your voice? Do you let the caller know you are GLAD to help them? What about when you are face-to-face with them?
5. Your voice mail: Do you update your message frequently. Do you return calls promptly? Do you make it easy for your prospects to get in touch with you (i.e. automatically transfer your business phone to your cell phone when you are out of the office rather than make them wait or have to dial another number)?
6. Your business card: Do you include your logo, benefits of doing business with you, and all contact info? Is your card easy to read (remember those of us over 40 can’t always read fine print). Tip: Heavy card stock and raised lettering give a more professional image.
7. Your niche: Do you know what differentiates you from your competition? If you don’t know, how will your prospect?
8. Your 30 second commercial: Do you have one? A great format to use is the following: Hello, my name is ___. I’m with __. I help people by (primary benefit you provide). Give your memory hook or tag line. Repeat your name and company name to finish.
9. Your handshake: Is it a firm (not crushing) thumb to thumb shake? Or is it kind of wimpy, wet, or patronizing?
10. Your marketing materials: Are they professionally done and do they focus on the benefits (not features) that you provide? Do you consistently use your business identity on all materials (i.e. your logo, fonts, colors, slogan, etc.).
    
    Your first impression may be the determining factor in whether the prospective customer does business with you or your competitor. Did you score a 10?

Understanding Your Business Financials

One key to understanding what's happening in your business is to understand the numbers. As a business owner, it is certainly important to me to see if my business is profitable or not - but even more important is to see trends that are happening in the business. With QuickBooks (one of the most widely used accounting packages for small business), I can quickly see if we are profitable for the year by creating a Profit & Loss Standard Report with the Date box set to "This Fiscal Year-to-date." But even more important to me is to see the trends for the year. With a simple click of a button (changing the Columns box from "Total Only" to "Month") I can see what has happened month by month up to the current month. By reviewing this report on a regular basis, I can quickly spot trends (i.e. expenses increasing at a higher rate than income over a period of time could indicate a need for re-pricing).

Another report that I think is beneficial for looking at trends is QuickBooks' Profit and Loss Previous Year Comparison report.With this report, I can easily see how my business is doing this year compared to the same period last year. If you want to look at several years together, you can create the same Profit and Loss Standard Report discussed above and change the Columns box to "Year" and set the "From" and "To" dates to the years you want to view.

If you find that these are reports you want to review on a regular basis and you don't want to re-create them every time you want to see the data, then simply memorize the report with a unique name. To view again, you can go to the Reports tab or Report Center and click on memorized reports.

Other reports that I view on a regular basis include:

• A/R Aging Summary report: This report shows all your outstanding receivables and, with a click of a button, you can drill down to see the invoices that make up the totals.


• Unpaid Bills Detail report: This report shows you all your unpaid bills by vendor in due date order.


• Sales by Customer Summary: This report will help you identify your best customers (you can sort by total and arrange by highest to lowest total). You could use this report if you want to make sure you are spending your time on the customers who are creating the revenue or to periodically reward your best customers.


• Unbilled Costs by Job: If you assign a customer/job name to expenses and leave the billable box checked, you can pull these expenses into that customer's invoice. This report shows you a list of expenses you have coded as billable that have not yet been billed.


• Profit and Loss by Class: If you are using classes in QuickBooks, this report will let you see income and expenses by those classes. It will also identify income and expenses that don't have a class assigned.

We will talk about other QuickBooks features and a variety of tips and resources to help your business in future postings.

Why Do We Blog?

I teach classes on starting and running a business in community colleges all over North Carolina. Over and over, I see people getting started in business who may know their product or service, but don't have a clue about how to run a business. From developing your record keeping system to marketing to hiring your first employee, running a successful business takes a great deal of time, energy, expertise, and luck! The purpose of this blog will be to give some tips, tricks, and resources that may help you to be successful.