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Quickbooks Online (QBO) Standardization
Introduction
For 2023, Mosquito Squad is undergoing an initiative to standardize our profit and loss reporting. We do this so we, as a franchise system, can
- improve location support by a better understanding of expenses
- foster best-practices
- discover trends across the brand
Process in QBO to reclassify and re-arrange accounts
Your Quickbooks Online Income statement must be re-arranged to match the attached Chart of Accounts. The goal is for each organization to have a layout that matches the sales, cost of goods sold, and expense categories according to the attached chart of accounts.
Here is how to reclassify your accounts:
- From the left menu, select Expenses.
- Filter transactions under Type, then click Apply.
- Select all transactions.
- Locate and uncheck split expenses.
- Once done, go back to Batch actions, then select Categorize selected.
Once you've done this, your accountant will receive an invite link with the steps to connect to your account. If your accountant doesn't have QuickBooks Online Accountant, there's a link in the invite to help you sign up.
Using numbers is a local option. The use of the major categories is different. Each major category should not include any transactions but should be a header. For example, Office should have no expenses but should contain sub-categories like telephone expenses that roll up to Office.
Setting up Percent of Sales Income Statement
Once your accounts are organized, the profit and loss report should have a year-to-date column, including a percentage of sales column. This is what should be submitted to Authority Brands each month.
Here is our Standard Chart of Accounts for importing into QBO
Automating Monthly Reporting to Authority Brands
Monthly reports are gathered via Qvinci, effective 1/1/2024.