Reporting
Within the Case Handyman software, QuickBooks Pro is used to transfer job costs to Red House and report on your financial results.
Interface with Red House
Job Cost Report for Red House
At the end of every day in which bills, checks or payroll was processed it is necessary to run the job Cost Report for Red House (set up as a memorized report). This report is then imported into Red House to maintain current job costs within Red House.
Red House Reconciliation Report
This report should be used to reconcile job cost totals between QuickBooks and Red House. We suggest that this report be run at the end of every week and compared to the "QuickBooks Reconciliation Report" found in the QuickBooks Pro memorized report.
Job Cost Detail
The Job Cost Detail report provides a listing of all transactions (bills, checks, paychecks and deposits) for a selected job and time period. The report is sorted by general ledger account which corresponds to the cost line items in Red House.
The Job Cost Detail is a Memorized report. To print the report:
1 . From the Reports menu, choose Memorized Reports.
2. In the Memorized Report List window, select the report you want -Job Cost Detail
3. Click Generate Report.
To select a particular job:
1. In the Report window, click Filters.
Or... In the Report Finder, click Customize and then click Filters. 2. Select to filter by Name from the list of filters. 3. Select the job that you want to print on the report 4. Click OK.
Cash Analysis Reports
Cash Balance
In order to view your current cash balance you can run the Cash Balance Report, which is defined as a memorized report. This report will list the current balance in all of your bank accounts.
Cash Transactions
In order to view a summarized listing of deposits and checks written you can run the Cash Transactions report within Memorized Reports. This report will show you a beginning balance and transactions for a specified period of time.
To obtain a detail list of your deposits you can run the Deposit detail report. Deposit detail report
Deposit Detail Report
This report shows details about the deposits you've entered. Initially, the report covers this month to date, but you can change the period covered by choosing a different date range from the Dates drop-down list.
The Name column lists the customers whose payments were included in the deposit.
The Amount column shows how much of each customer's payment was included in the deposit.
To display any of the payments listed, double-click the payment.
To create this report:
- From the Reports menu, choose Banking -and then Deposit Detail.
Check Detail Report
This report shows detailed information about the checks you have written. The report includes all the types of checks you can create in QuickBooks, including paychecks, bill payment checks, and payroll liability checks as well as the checks created with the Write Checks window. Initially, the report covers the current month to date, but you canchange the period of time covered by choosing a different date range from the Dates list.
The Account column shows the accounts affected by each check. Usually, these are expense accounts.
The Original Amount column shows how you distributed the total amount of the check among the accounts.
The Paid Amount column applies to bill payments. When a bill payment pays part of the original bill, the Paid Amount column shows how QuickBooks allocated the payment among the accounts affected by the bill.
To display any of the transactions listed, double-click the transaction. To create this report:
1 . From the Reports menu, choose Banking and then Check Detail.
Open Payables Reports
There are a number of different reports available in QuickBooks which will enable you to view your outstanding payables.
Unpaid Bills Detail Report
This report shows all the bills and payments related to each vendor. The totals shown in the Balance column are your company's unpaid balances. If a bill is overdue, the Aging column shows the number of days past due.
To create this report:
- From the Reports menu, choose Vendors & Payables and then Unpaid Bills Detail.
A/P Aging Summary Report
This report summarizes the status of unpaid bills in accounts payable. For each vendor to whom your company owes money, the report shows (1) what your company owes for the current billing period, and (2) what your company still owes from previous billing periods.
The 1-30, 31-60, 61-90, and >90 columns show overdue balances from previous billing periods. For example, an amount in the 31-60 column is between 31 and 60 days overdue. If you want to change the aging periods select to customize the report and change the number of days per aging period or age through how many days fields.
To create this report:
1. From the Reports menu, choose Vendors & Payables and then A/P Aging Summary.
A/P Aging Detail Report
This report lists the unpaid bills in accounts payable, grouped by when the bill was due (aging period). If a bill is overdue, the Aging column shows the number of days past due.
To create this report:
- From the Reports menu, choose Vendors & Payables and then A/P Aging Detail.
Monthly Financial Reports In QuickBooks Pro
In order to gain a good handle on your financial results the following reports should be prepared and analyzed each month. Prior to running any of these reports, it is important to adjust your general ledger to account for your results on a percentage of completion basis.
Revenue is posted to QuickBooks as it is collected. Since our billing schedule does not necessarily match how costs on a job are incurred, in order to get an accurate handle on earnings from your jobs, it is necessary to adjust sales for amounts received on jobs in progress, which have not been earned. A monthly journal entry should be made prior to running any of the month end reports in order to obtain the reports on a percentage of completion basis.
- In Red House, Run the Financial Report Open jobs at the end of the month.
- From the Financial Report - Open Jobs, obtain the amount of net over or under billing as of the end of the month. Use this amount to make the following journal entry in QuickBooks:
If cash received exceed revenue earned you are in an over billed situation:
Debit 3200 % of Completion Adjustment
Credit 2480 Billings in Excess of Cost
When revenue earned exceed cash received you are in an under billed situation:
Debit 1300 Costs in Excess of Billings
Credit 3200 % of Completion Adjustment
One of the above entries (depending if you are over or under billed for the month) should be dated the last date of the month and reversed the first day of the subsequent month.
1. Display the General Journal Entry window.
2. Change the date to the last day of the month
3. Fill in the entry number to be WIP
4. In the detail area, enter distribution lines.
5. In the Account column, enter the first account in your transaction.
6. Enter the debit or credit amount for the account you entered.
7. (Optional) Enter a memo about the amount. The memo appears on reports that
include the general journal entry. The memo can read month name, over billings
8. Continue to enter distribution lines until the transaction reaches a zero balance
(the total in the Debit column equals the total in the Credit column).
9. Save the journal entry.
Income Statement (Profit and Loss) Analysis
The Income Statement is a summary of the revenue, expenses and net income (earnings) or loss of a business entity for a specific period of time - a month, quarter, or a year. Net income or loss for the period becomes part of the Balance Sheet by increasing (net income) or decreasing (net loss) the owner's capital.
Proper analysis of the Income Statement will assist you in evaluating the overall profitability of your franchise. In the upper part of the income statement the overall amount of revenue and costs relating to earnings from construction activities should be shown. Details of these accounts can be found in the Financial Report Closed Jobs and Financial Report Open Jobs in Red House.
The lower portion of the income statement reflects the expenses that were incurred in the operation of the business. These include sales and marketing, salaries and fringe benefits, office expense, vehicle and indirect job expense and other operating expenses. In order to get the most out of the income statement, the lower portion may be expanded to include a more detailed analysis of operating expenses.
In addition to monitoring the percentage relationships that the various expense categories have to revenue, the income statement can be used to compare budgeted revenue and expenditures against the actual sales and expenses incurred during a given period of
time.
Profit and Loss for the Month
This report summarizes your income and expenses for-the monthso you can tell whether you're operating at a profit or a' loss. The report shows subtotals for each income or expense account in your chart of accounts. The last line shows your net income (or loss) for the month. To see a list of the transactions that make up an amount, double-click the amount.
To create this report
From the Reports menu, choose Company & Financial and then Profit & Loss Standard.
To add the percentage relationships that the various expense categories have to revenue, select Customize report and put a checkmark in the % of income box.
Year to Date Profit and Loss
This report is the same as the Profit and Loss for the Month with the report dates being set as this fiscal year to date.
Budget vs. Actual for the Month
This report requires that you enter your operating budget into QuickBooks. To enter you budget in QuickBooks:
1. Display the Set Up Budgets window.
2. Choose the Fiscal Year.
3. Choose an Account.
4. Enter the budget amount for the first month, then fill in the remaining months. Use the Fill Down button to speed up entering the amounts.
5. Click Save, and then:
If you are budgeting for several accounts, choose another account and repeat these steps. Or, create another type of budget. If you are finished, click OK.
To see how you're doing against a budget, use a Profit & Loss Budget vs. Actual report.
1. From the Reports menu, choose Budget.
2. Choose the Profit and Loss Budget vs. Actual report
3. Change the columns default to totals only. If you want to see the budget versus actual for multiple months you can leave the column default at Month.
4. Change the date's filter from the default of this fiscal Year to-date to this month
in order to obtain a Budget vs. Actual report for the month.
5. (Optional) To remove columns from the report, click Customize and clear the
checkbox for any column (Show Actuals, Difference, % of Budget).
Comparative Balance Sheet
The Balance Sheet is a statement showing the assets, liabilities and equity of a business entity at a specific date. Assets are those items that are owned by the business while liabilities include items that the business owes. Equity is the owners' interest in the enterprise. The Balance
Sheet tells the business owner things like how much cash he has in the bank, how much money is owed to him and what he owes out, what is the cost of jobs in process and what the business is worth at a given point of time.
Proper analysis of a Balance Sheet will help a builder understand and evaluate his financial strength, liquidity and leverage. It will also provide management with information which will help in the formulation and monitoring of company goals and plans.
The most beneficial way to look at a balance sheet is to compare the balances at the end of the current month with those at the end of the prior month..
The Comparative Balance Sheet provides a financial snapshot of your company as of a specific date. Initially, the date is today's date, but you can change the date by entering a different date in the As Of field.
The report calculates how much your business is worth by subtracting all the money your company owes (liabilities) from everything it owns (assets). The result is what your company is worth: your business's equity. The total for equity includes your company's net income for the fiscal year to date.
To create this report:
1. From the Reports menu, choose Company & Financial and then Balance Sheet Standard.
In order to customize the report to get comparative balances from the prior period:
2. Set dates to This Month
3. Check the Previous Period and $ Change boxes within the Other Columns of the Customize Report screen