Things to Remember about Budget Analysis
A budget truly gives a business owner or manager a way to plan out the year's operation, think about what's most important, and quantify what the firm should achieve over the year. While formulating your [more…]
How to Choose a Type of Budgeting Within QuickBooks 2011
Before creating and using a budget within QuickBooks, you'll want to consider three very useful and common budgeting tactics: top-line budgeting, zero-based budgeting, and benchmarking. None of these three [more…]
How to Prepare a New Budget in QuickBooks 2011
Budgeting within QuickBooks provides business owners and managers with powerful tools for better managing a firm's operation. A budget can give the business owner, manager, or other QuickBooks user a way [more…]
How to Work with an Existing Budget in QuickBooks 2011
Creating a budget in QuickBooks can give the business owner or manager a way to more easily and more quantifiably manage the people working for the business. A budget can often identify problems or opportunities [more…]
Comparing Budgets with Actual Results in QuickBooks 2011
After you record your budget in QuickBooks, you can compare your actual financial results to budgeted amounts by choosing commands from the Budgets & Forecasts submenu. When you choose Reports→Budgets [more…]
Understanding Traditional Overhead Allocation on an Income Statement
The problem in many businesses using traditional overhead allocation is that their overhead expenses or operating expenses don't cleanly tie to products or services. Without good allocation of overhead [more…]
How to Use Classes for Activity-Based Costing in QuickBooks 2011
You set up a class in QuickBooks for each product or service for which you want to measure profitability. For example, if you had a hot dog stand business, you would set up two classes in QuickBooks: one [more…]
Understanding Economic Value Added in Business
Economic Value Added (EVA) analysis measures how profitable it truly is to run a business instead of selling it. It states in a formula something you already know in your gut: If you're a business owner [more…]
How to Use QuickBooks Data for Profit-Volume-Cost Analysis
You need three items of data in order to perform profit-volume-cost analysis in QuickBooks 2011: sales revenue, gross margin percentage, and fixed cost. Typically, these items of data aren't difficult [more…]
