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Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services
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16, January
2019

Accounting Tips: Understand Differences Between Divisions and Classes

The ability to sort accounting transactions by user-defined divisions and classes in QuickBooks is a great way to track and analyze what areas of your business are the most profitable. Unfortunately, many businesses and accounting specialists aren’t taking full advantage of this option because they don’t clearly understand the difference between divisions and classes and how to use them. Hopefully the following examples will clear up some of the confusion.

Using Divisions in QuickBooks

If you want your accounting or outsourced bookkeeping and controller services to provide separate profit and loss reports for different areas of your business, creating divisions will allow them to do that. Here are examples of divisions setups in QuickBooks for different industry models:

  • Accounting Services: Payroll, Accounts Payable, Billing, Full Service
  • Mechanical Contractor: Residential Service, Commercial Service, New Construction
  • Construction Contractor: Bathrooms, Kitchens, Whole House, Repairs

As you can see with the mechanical contractor example, how you choose to divide your services is totally up to you and may be different from one business to another. By selecting a division when creating an invoice, the revenue from the invoice will be appropriately tagged for that division. Select a division when entering a vendor bill to log costs of materials or services specific to that task. With this process in place, a business can then run Division Profit & Loss Reports, showing the income, costs and gross profit on distinct roles within the company.

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9, August
2018

5 Tips to Get Clients to Pay on Time

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24, July
2018

First-Time Contractor's Guide to Completing the CAS Disclosure Form

Government forms - they're a given when you work as a government contractor, but that doesn't make them any easier.

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25, April
2018

4 Accounting Tasks You Should Do Each Week

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13, February
2018

5 Signs That Your Business Has Outgrown its Accounting Software

 

As a business expands, a competent CEO realizes that the previously reliable accounting system has become a.

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21, November
2017

Looking Forward: The Age of Cryptocurrency in Accounting

Cryptocurrency (e.g. Bitcoin, Dogecoin) has become a hot-button issue in the financial and technology industries as.

8, September
2017

Telecom, Travel and Technology: What to Consider When Managing the Three T's of Expense Management

Managing a profitable company is all about controlling costs enough that revenues outpace expenses and margins are.

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