Section 6

Check out their Inventory Valuation Summary report. Because it Shows the book (purchase or cost) value of inventory items with quantity on hand.

If client asks how much does my inventory worth?

Check out the Profit and Loss report. Because it Shows profitability and how much money was earned and spent on each category.

If client asks how much money did I make?

You can change the class and/or location for invoices, sales receipts, checks, or bills with items (products or services) on them. However, you can't change the accounts You can't change the payment account (bank or credit card) for expenses You can't change the account or class for inventory adjustments because they're connected to your inventory shrinkage and asset accounts You can change the expense account for billable expenses, but not the income account for the related income transactions You can only manage your payroll transactions in the Payroll menu Continue training

Are there any limitations on reclassifying transactions?

Check out their Balance sheet report. Because Balance Sheet shows cash balances, money owed to the company, money owed by the company, and net income for the period.

If client asks can I afford new equipment?

Check out their Sales by Product/Service Summary report. Because A business can decide which products they should buy more of (high volume) or which products to put on sale (low-volume or slow-moving products)

How to answer your client What are their top-selling and/or worst-selling products?

Check out the Sales by Customer Summary report. It shows how a business can look at the characteristics of their top customers to help identify potential new customers who have the same characteristics.

How to answer your client about who are their top customers?

Check out the Accounts Payable report. Because it Lists all vendors with open balances and shows how old the balances are.

How to answer your client about who do I owe money?

Look at the Accounts Receivable report. It lists all customers who currently owe balances and shows how old the balances are.

How to answer your client about who owes them money?

Check out their Statement of Cash Flows report. It shows the cash flowing in and out of a business for a specific period of time. It breaks down the source of cash received and spent into operating, investing, or financing activities. This can help a business identify whether it's generating more cash than it's using.

If I show a profit, why isn't there any cash in the bank?

Check out their Profit and Loss report. This is an important profitability metric. You can tell a business owner whether they need to raise prices or reduce spending, or both.

If client asks How much revenue (less cost of goods sold) is available to cover operating costs?

Profit and Loss Statement of Cash Flows

Mylene is also considering new computers for her business. She would love to be able to see real-time accurate financials so that she can decide whether she has enough profit and cash flow to take out a small business loan to cover the cost of the equipment. Which 2 reports should she compare to help her make this decision?

Sales by Product/Service Summary

One of your e-commerce clients, Cindy Lee, ordered far too many products in the build-up to the holiday season last winter. This left her with too much stock in January and she had to offer discounts in order to shift the stock. Which report could help prevent her making the same mistake next year?

Resolve transactions with issues Account reconciliation Review financial statements

What are the three stages in the month-end review?

It allows you to write off invoice balances in a batch. This tool instantly zeroes out the balance of the invoice by adding it to the discount field on the original invoice.

What is the Write-off tool?

To correct an insurance payment that has been miscategorized as an interest payment To reclassify a non-item transaction incorrectly posting to uncategorized income

When can you use the Reclassify Transactions tool?

When a client has outstanding invoices that will not be paid

When might you need to write off an invoice?

1099 Contractors, because 1099 Contractor reports are critical to verifying and validating 1099 contractor payments and compliance requirements.

Which vendors may also be classified as 1099 independent contractors?

Profit and Loss with comparative settings

You are approached by another one of your clients, Mylene Ravela, and she wants to see how much she is spending on overhead office expenses and how much this has changed from last year. What report would you recommend?