Solo & Small Firm Conference 2015 Office Accounting: Take Control of Your Finances to Take Control of Your Practice

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1 Vermont Bar Association Seminar Materials Solo & Small Firm Conference 2015 Office Accounting: Take Control of Your Finances to Take Control of Your Practice May 15, 2015 Basin Harbor Club Vergennes, VT Faculty: Wendelyn Duquette, Quick$tart

2 Office Accounting Take Control of Your Finances Wendelyn Duquette Stowe, VT Masters in Organization and Management Founded QuickStart & became a ProAdvisor Specialize in serving Non-Profit organizations Serve approximately 60 clients a year New business set-ups Consulting on existing systems Conversions from enterprise level & legacy systems Outsourced Accounting Services

3 Learning Objectives 1. Understanding financials for partner distributions 2. Two key numbers to manage practice profitability 3. IOLTA account reporting in QuickBooks 4. QB Desk Top vs QB Online and practice management integration

4 Understanding your financial goals What does your practice need to fund % of household living expenses College tuitions Retirement So what is your exit strategy Close up Shop Sale Businesses that plan grow 30% faster

5 How Much is Available for Partner Salary? Bank Balance Profit and Loss Report Understanding Overhead Costs Planning for your Goals

6 Two Important Numbers 1. How profitable is each employee 2. How profitable is each matter/client

7 How profitable is each employee? Use this information to decide when to: Increase billable hours Decrease payroll costs Increase billable rates Tracking this in QuickBooks Class tracking by Employee (move to product)

8 How Profitable is each Client or Matter? Decisions this can effect Fire unprofitable distracting clients Identify qualities of your most profitable clients and look for more of the same Increase rates How to track in QuickBooks Job costing (move to product)

9 IOLTA Accounts in QuickBooks Separate QuickBooks file for IOLTA accounts Separating each client and matter Reconciling closed matters QuickBooks Example (move to product)

10 QuickBooks Comparison QuickBooks Desk Top Best time tracking features One time purchase More likely to integrate with desk top practice management software More users know it Familiar user interface QuickBooks Online Best bank & CC downloads Subscription pricing More likely to integrate with SAAS practice management software Anytime anywhere access Some users prefer it Auto back ups & Security

11 Summary 1. Understanding financials for partner distributions 2. Two key numbers to manage your practice 3. IOLTA account reporting in QuickBooks 4. QB Desk Top vs QB Online and practice management integration

12 Questions?