Accounting with QPro

April 2021

Piggy bank on laptop
Trent Ogden

Trent Ogden
CFO

You bought QPro to manage the parts of your business that weren't managed well with QuickBooks™ or some other generic accounting software. Those systems just don't do a good job of managing the front end of your business.

When I talk about the 'front end', I'm speaking about floor covering specific price catalogs (including b2b capabilities), detailed proposals with side by side job costs and immediate profit margins, 'what if' capabilities, detailed invoicing, automatic work order generation, automatic job-costing, automatic PO generation, integrated inventory control with floor covering units, labor costing and reporting, sophisticated commission calculation and reporting, flexible and automatic sales and use tax calculation and reporting. And all of this is wrapped into an easy-to-use 2 screen search and reporting interface. This is why you bought QPro.

What most of you don't realize is that QPro, when properly used, will produce much more meaningful/accurate financial statement reports than any generic accounting system will give you. Why is this?

Because QPro will report sales and cost of sales numbers to you using the matching principle of accounting. Simply stated, the matching principle realizes sales revenue and direct cost of goods sold (for that same sale) at the same time. This allows more accurate gross profit dollars and percentages on your Profit & Loss that you can't get from QuickBooks. QuickBooks recognizes revenue in their accounting reports when you collect money (if you are using cash basis accounting) or it recognizes it when you create the invoice. Then it recognizes the cost of sales (materials and labor on that job) according to the date of the bill entered for the materials and labor. Often those costs are dated in a different month (and sometimes even a different quarter or year) than the sales revenue for that job. This situation gives you misleading information about how much gross profit you earn from one period to the next. It makes it more difficult to make good decisions about your business.

On the other hand, when you job-cost/complete sales orders in QPro consistently and in a timely manner, it will produce a journal entry type report each month that will give you the amounts you should enter into your accounting system for Sales, Cost of Material and Labor Costs, as well as the amounts to lower your Inventory, Prepaid Labor and Customer Deposits accounts to offset the buildup of these accounts throughout the month. If you aren't comfortable entering journal entries, we have provided a way to export this journal entry into Quickbooks Online for your convenience. (Please see this video for details)

Please consider implementing these journal entries if you want to realize the full extent of QPro's features and, in my opinion, the most important features. Accounting and journal entries etc. may sound boring and foreign to you but accurate accounting gives you the most important information your business system can provide.