|
ASK JUDY
|
|
|
8
UNDERAPPRECIATED
PLANNING TOOLS
• A creative brief defines a job’s
objectives, strategy, and execution — in writing —
so that you and your client are of one mind from the start,
reducing costly misunderstandings later.
• Estimates do more than show what
the client will pay for the work. A well-written estimate
clearly states what the client gets for their money, so
that you’re covered when the client changes its mind
— and the fingers get pointed at you (you’re
doing one for every job, right?)
• Media plans help your clients clearly
see how you intend to spend their broadcast, interactive,
print, and outdoor media dollars. And the more confident
a client feels about your plan, the more likely they are
to approve it.
• Job schedules let you track the
start date and finish date of each job task, which are used
by the On-Time Analysis report to rank by client each creative
team’s performance.
• The Production Planner sorts jobs
by priority (e.g., RUSH, Killer Rush, etc.), helping you
balance your resources to get the most important work done
first.
• The Job Snapshot window lets you
schedule a job’s next billing. The planned billings
are summarized together on the Snapshot Worksheet by client,
which can be used to predict your upcoming cash flow.
• If you add client budgets (i.e.,
the projected gross billings), the Client P&L report
will calculate the gross income and billed vs. budget percentage.
It’s a great way to see which clients are really pulling
their weight.
• The Projected Gross Margin report
(see Snapshots > Profitability) compares each client’s
projected profit for its open jobs based on the jobs’
estimate, change orders, and budget.
|
|
Dear Judy:
“I have never run the close year tool before.
What steps do I take before I click the Start button?”—
Christine, Chicago
Closing your year is not as complicated or mysterious
as people think. Like Groundhog Day, the same issues pop up every
year.
That’s how I thought of my six Year-End Closing
Rules:
#1) DON’T PANIC: If your
books are in order, closing only takes a couple of hours. But if
you’ve procrastinated reviewing your accounting for accuracy
until now, then there could be a long, bumpy road ahead. If so,
you’ll need to play catch up first.
#2) REVIEW, REVIEW: First, everything
needs to be posted. Then make sure the G/L is balanced. Wait for
the January bank statement then reconcile the checking accounts.
Finally, double-check everyone’s work.
#3) PRINT FINANCIALS FIRST: Once
the year is closed, only the new year’s financials can be
printed. So print any Detailed G/L reports, audit trails, journals,
and final year-end financials now for your permanent records.
|
|
4) BACKUP, BACKUP,
BACKUP: One is for your normal backup (you’re backing
up every night, right?). Then burn a second copy on a CD to keep
in your desk drawer; if needed, you’ll have it close at hand.
Now make a third copy as a permanent moment-in-time archive. Label
the CD and store this one off-site (e.g., a safe deposit box, at
home, in your CPA’s office, etc.).
#5) KICK EVERYONE OUT: Closing
is a single-user function, so no one can work on Clients & Profits
until its finished. How to keep users from sneaking on? Drag the
database onto your computer then run the close there. You’ll
also avoid any network burps that could cause interruptions.
#6) DOUBLE-CHECK: Print my favorite
report, the YTD Trial Balance, after closing. There should be no
balances in future periods. If so, closing was somehow interrupted.
If the report looks good, move the database back to the server and
you’re good to go.
You’ll find a five-minute year-end
closing tutorial and FAQs
Judy Salkind-McConnaughay is an 11-year
veteran of the Clients & Profits Helpdesk and is a practicing
bookkeeper. Ask your business management questions at Ask
Judy |
