One of the most intricate part of structure planning of any business, both small and medium, is Profit Planning. The vision of small businesses not only is to reach a great height of popularity through sustainable growth, is to also increase the share of profits year by year. The complete planning of business is all inclusive of timely forecast of anticipated business growth over certain time period, while keeping an eye out for generated revenue for that period as well.
Basic four principles of Profit Planning are:
- Evaluation of Business Operations
- Authentic Forecast of Marketing Strategies
- Expected Financial Planning
- Predicting the Hiring Requirements
Benefits of Profit Planning
Profit Planning offers numerous benefits and pros to the business and its owner. The efforts put in planning and implementing the same offers fruit at later on time period. Some of the most obvious and incorporated benefits of profit planning are listed below:
- Systematic Evaluation of Business Performance.
- Complete Accountability and Responsibility of each Employee.
- Awareness about the Expenses and Business Cost.
- Methodical Approach for each Problem
- Anticipation and Accuracy in Forecasting Different Business Aspects
- Financial Planning
- Support of Investors and Lenders
Using QuickBooks Budgeting Tool for Profit Planning
Now it’s time to set up for Profit Planning through Budgeting Tool integrated within QuickBooks Software through steps listed below:
1. Type of Budget: User can select their own budget by first clicking on the Company tab followed by Planning & Budgeting option and then on Set Up Budgets. In case the user has already created a budget, then the old one can be edited upon.
2. Next Click on Profit & Loss followed by Next tab: Under this user can further set more criteria as per individual customers through jobs or classes apart from just Accounts.
3. Determine the Content: User can decide whether they wish to start the budget from scratch or let the software fill it with content from the previous year’s details.
How to Write Profit Planning Reports through QuickBooks?
Profit Planning as detailed above is quite imperative in order to keep a track on all the ongoings of the small business and ensure that all the factors assemble together in a balance to ensure systematic growth of the business. In order to create a simple but beneficial profit planning report following four points needs to be kept in mind:
- Authentic and Accurate Comparison of Figures.
- Setup of Achievable and Feasible Profit Goals.
- Be Ready for Changes and Diversion in the Plan.
Different Types of Reports with QuickBooks
QuickBooks offers numerous kinds and types of reports that help the user to keep an eye on the flow of work of the business. Some of the most used reports of QuickBooks are:
1. Transaction reports
a. Profit & Loss Report
b. Balance Sheet
c. A/R Aging Summary
d. A/P Aging Summary
e. General Ledger
2. List reports
a. Account Listing (Chart of Accounts)
b. Product and Services List
c. Customer List
d. Supplier List
3. Summary reports
4. Detail reports
These reports can be easily generated by the user in QuickBooks software as a template is already provided within the software. For more information on the above listed reports and profit planning, user should connect with the QuickBooks customer Support team set up by Intuit. In case the user is unable to connect with the team due to long queue they can try alternative support agencies like Accountsportal.co on their website or call on the Toll Free Number – ☎+1-800-796-0471.