2023 Purpose of the exercise My objective in giving you this assignment is not to make you Quickbooks experts but to | Assignments Online

Purpose of the exercise

My objective in giving you this assignment is not to make you Quickbooks experts but to expose you to how some of the things you learned in previous classes are executed in practice, e.g. journal entries, financial statements compilations, reports, analysis, etc. You can extrapolate this exercise from small business to large businesses. 

Learning how to navigate the software is a skill you have to acquire over time with practice. You cannot learn the software in one class. Nowadays accountants spend less time on calculations of financial statements. The obtained numbers have a story to tell. It is your responsibility to tell it. This is the purpose of the deliverables. Tell your story with the numbers you obtain. Remember that accounting is a language, it is you who is interpreting this language to the nonaccountants.

Download Quickbooks: https://www.intuit.com/partners/education-program/registration/students/quickbooks-online/

Deliverables

From your Quickbooks Project, please submit the following a management report containing

A)– A one-page cover letter or report to the business owner. [There are many templates online].  (Links to an external site.)I suggest that you follow the linked one above but feel free to use a different one.

Regardless, at a minimum interpret the numbers in terms of

                       (i) liquidity,

                       (ii) profitability

                      (iii) solvency if applicable, and finally,

                       (iv) your recommendations to the owners, especially with respect to financial risks.

Note that the gross profit margin is merchandise gross profit over the cost of goods sold. For services, it’s revenues over the cost of services. This is not commonly done but some service businesses do it.  Do it in this exercise, please. The bulk of the cost of services is usually labor costs. In this case, if you wish to focus on merchandise only, you should use only sales from merchandise sales in the numerator and the cost of goods sold.

B). Include the:

i) Basic financial statements (P and L, Balance Sheet, Cashflow Statement) for the period you covered. Include the Sales, Expense, Aging, reports if you deem these necessary.

ii) At least three notes disclosing things that you think the owner should know, e.g, FIFO, depreciation, etc. [you can follow GAAP disclosures]. The best way to find disclosable information is to google for any companies annual reports and look at their footnotes. There are GAAP mandated disclosures. The simplest way to get disclosures is to look for templates from other published financial statements or go to original GAAP sources or textbooks.

In Quickbooks go to REPORTS and then the “management report” column.

The Exercise Content

QuickBooks-Online-Education-Exercises-Green-Tree-Landscapes.pdf

Some overrides:

1) The exercise is based in Canada. Please use any US address you want.

2) No customers to import. Use the ones listed.