QuickBooks® Simple Start Training Package

A Simple Start to Managing Your Business Finances

A Guide to the Essentials
Financial Management Essentials

• Introduction to Financial Management
• Why Accounts are Important 
• Using Reports 
• Managing Essential Tasks: Practice Session
• Tips and Resources
• Appendix: Additional Concepts & Terms

1. What is Financial Management?

Six Ways Financial Management Helps Your Business Succeed

Information is Power

2. Financial Accounts - Why They Matter to Your Business

Cash Flow: 

Money In and Money Out

Major Account Types

• Assets
– Current (cash, inventory, accounts receivable, etc.)
– Fixed (property, vehicles, machinery, etc.)
• Liabilities
– Current (within one year)
– Long Term
• Equity
– Contributed capital: owner’s investment
– Retained earnings (profits)

Categorize Your Transactions With a Chart of Accounts

Chart of Accounts:

Your Master List of Accounts and Sub-Accounts

Accounts: What We’ve Learned

• Consolidate your record keeping
• Use a standard set of accounts or categories to “file away” transactions—there is a common language
• Keep it simple: Significant accounts only

3. Reports - Understanding Your Business and Decision-Making

• Use reports as a planning tool
– Gain insight into your sales
– Income statement (P&L) shows your profitability
– Balance sheet shows assets, liabilities and equity
• Regularly monitor your profitability – and your cash flow

Make the Most of Your Reports 

Income Statement 

Balance Sheet 

4. Manage Essential Tasks

Practice Session: Mark’s Atomic Graphic Designs

Money in
• Record a sale
• Invoice a customer
• Receive a payment
• Make a deposit
Money Out
E. Write a check / record an expense
F. Use a credit card / record an expense

A. Record a Sale: Practice Session – Money In

Money In: Record a Sale
Track Your Business
See Where Your Business Stands

B. Invoice a Customer: Practice Session – Money In

Money  In: Invoice Customer
Track Your Business
See Where Your Business Stands

C. Receive a Payment: Practice Session – Money In

Money In: Receive Payment
Track Your Business
See Where Your Business Stands

D.  Make a Deposit: Practice Session – Money In

Money In: Make a Deposit
Track Your Business
See Where Your Business Stands

E.  Write a Check / Record an Expense: Practice Session – Money Out

Money Out: Write a Check
Track Your Business
See Where Your Business Stands

F.  Use Credit Card / Record an Expense: Practice Session – Money Out

Money Out: Use a Credit Card
Track Your Business
See Where Your Business Stands

6. Tips and Advice 

• Getting Started
• Helpful Resources
• Online Resources
• Congratulations!

Getting Started

• Build your toolkit
– Consider software packages such as QuickBooks Simple Start       (Trial Edition is available)
• Structure your accounts
– Start with a minimum # of accounts and add as needed
• Establish an accounting routine – and stick to it
– Reconcile accounts monthly
– Update financial statements quarterly

Helpful Resources

Advance Your Knowledge
• Professional Help
– Accountants
• Look for knowledge of your industry
– QuickBooks ProAdvisors
• Expert set-up can save you time
• Free 1-hour consultation
– Small Business Development Center (SBDC) counselors 
• Training Tools

Online Resources

Small Business Development Centers www.sba.gov/sbdc/
sbdcnear.html
Internal Revenue Service www.irs.gov/businesses/small/
U.S. Chamber of Commerce
www.uschamber.com
QuickBooks Financial Software

Congratulations!

You now know:
• Why financial management is critical to effectively run a business
• How to set-up and manage your accounts 
• The usefulness of financial reports

Appendix:  Additional Terms and Concepts 

Financial Management Terms and Concepts

• Business types
• Cash or accrual
• Debits and credits
• Journal
• Ledger

Determine Your Business Type 

Choosing an Accounting Type 

Mark’s Atomic Graphic Design: Journal 
Mark’s Atomic Graphic Design: General Ledger 

Acknowledgements

Intuit would like to thank the following advisors for their help developing this presentation:

• Peter Pappas, Regional Director, Connecticut Small Business Development Center, Groton, CT
• Neal Nelson, Counselor, Maricopa Community College Small Business Development Center, Phoenix, AZ
• Charles Eason, Director, Solano College Small Business Development Center, Fairfield, CA