FinancialSoft’s software used in its Financial Analysis reports organizes your QuickBooks data to generate all the metrics. QuickBooks summarizes many of the accounts we need, but some just are not narrow enough so our software needs to look at the name of each account to determine whether or not they fit into specific account categories that the software requires. The software is dependent upon logical account names. These accounts are:
- Balance Sheet – Inventory: Current Assets
- P&L – Income Tax: Expense
- P&L – Interest: Expense
- P&L – Amortization: Expense
- P&L – Depreciation: Expense
We have created a table for you to see what names within the QuickBooks account names can be identified by our software.
Statement | Account Category |
Account Naming* {word(s) contained within account name} |
QuickBooks Account Type | |
Balance Sheet | Inventory | Inventory | Current Asset | Other Current Asset |
Inv | ||||
Income Statement (P&L) | Income Taxes | Income Taxes | Expense | Other Expense |
Income Tax | ||||
Depreciation | Depreciation | |||
Amortization | Amortization | |||
Interest | Interest | |||
*Note: The Account Naming show the word(s) that must appear in the Account Name that FinancialSoft’s Financial Analysis Reports can identify for use in the mathematics to generate the report metrics. It is also important that the full account name must also be in the company’s Chart of Accounts (Account Listing). See the following examples:
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Examples | ||||
Statement | Account Category | Account Naming* | Actual Account Name (example) | |
Balance Sheet | Inventory | Inventory | Warehouse Inventory | |
Stock Room Inventory | ||||
WIP Inventory | ||||
Parts Inventory | ||||
Inv | Piece Part Inv | |||
Income Statement (P&L) | Income Taxes | Income Taxes | State Income Tax | |
Income Tax | Federal Income Taxes | |||
Depreciation | Depreciation | Fixed Asset Depreciation | ||
Office Equipment Deprecation | ||||
Amortization | Amortization | Computer System Amortization | ||
Factory Equipment Amortization | ||||
Interest | Interest | Interest Expense | ||
Bank Loan Interest | ||||
Credit Card Interest |
Special Note: When accountants talk about “before tax” or “pre-tax” i.e. Earning Before Taxes, the tax they are talking about is always Income Taxes from State or Federal. Accounts like “Payroll Tax”, “Sales Tax”, “FICA” are taxes but are not included in accounting terms as “before tax”.