Episode 40

Episode 40: Where Is Your Profit Going? How to Use QuickBooks to Find Cost Creep

Published on: 4th September, 2026

Episode 40: Where Is Your Profit Going? How to Use QuickBooks to Find Cost Creep

Your business can be growing while your profit is quietly getting smaller.

A vendor raises a price. A discount expires. A software subscription renews at a higher rate. Material costs increase. Payroll or overtime creeps up. None of those changes may seem significant on their own — but together, they can slowly eat away at the profit you worked hard to create.

In this episode of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis talk about cost creep and how small business owners can use QuickBooks to identify rising expenses before they become a much bigger profitability problem.

Lee shares a real client story about noticing that a negotiated payroll discount had changed. The client wasn't notified that the amount they were paying had increased. Lee caught it because he was reviewing the numbers, questioned what had happened, contacted the payroll provider, pushed to have the correct pricing restored, and pursued the missed discount retroactively.

But this episode goes far beyond payroll.

We talk about how to use your QuickBooks Profit & Loss report, vendor history, purchase orders, Products & Services, cost of goods sold, payroll reports and expense trends to understand what your business is actually paying — and whether those costs are changing faster than your sales.

Because increasing revenue doesn't automatically mean increasing profit.

If your sales grow 5%, but your cost of goods sold grows 10% or 15%, something deserves a closer look.

The goal isn't to cut every expense or always choose the cheapest vendor.

The goal is to know what you're spending, understand why you're spending it, and make those decisions intentionally.

QuickBooks is most valuable when it does more than record transactions.

It should help you answer questions like:

Where is my money going?

Why did my profit change?

What is getting more expensive?

Are my margins shrinking?

Where do I need to ask better questions?

Key Takeaways

  • Small increases add up. A $50 or $100 recurring increase may not seem significant until it happens every week or every month.
  • Revenue can hide a cost problem. Growing sales don't necessarily mean growing profit if expenses are increasing even faster.
  • Use your Profit & Loss report to compare periods. Look at changes in both dollars and percentages and start with the expenses that increased the most.
  • Review vendor history. QuickBooks can show you what you paid a vendor previously so you don't have to rely on memory.
  • Purchase orders can protect negotiated pricing. Compare the vendor's bill with what you originally agreed to pay.
  • Know what your products and materials actually cost. If your cost rises while your selling price stays the same, your profit margin shrinks even if your revenue looks unchanged.
  • Watch cost of goods sold. If COGS is increasing significantly faster than sales, that can be an important warning sign.
  • Pay attention to payroll and overtime. Ask whether increasing payroll costs are producing a corresponding increase in sales, productivity or output.
  • Use your numbers when negotiating. There's a big difference between saying, “This seems expensive” and being able to show a vendor exactly how your pricing has changed over time.
  • The cheapest expense isn't always the best expense. Reliable vendors, quality products, good insurance and valuable employee benefits may absolutely be worth paying more for.

The goal is not simply to spend less.

The goal is to spend intentionally.

Questions to Reflect On

  1. What are the five vendors, products or expense categories that have the greatest impact on your business's profitability?
  2. What were you paying for those expenses six or twelve months ago compared with what you're paying today?
  3. If your costs increased, did your pricing, sales or business model change enough to absorb that increase?

Mentioned in This Episode

Profit & Loss Comparisons

Use your QuickBooks Profit & Loss report to compare one period with another and look for expenses that have increased substantially in either dollars or percentage.

Vendor History

Review what you've historically paid recurring vendors and question unexpected changes rather than automatically assuming the current charge is correct.

Purchase Orders

For businesses purchasing inventory, materials or equipment, purchase orders can create a record of negotiated quantities and pricing that can later be compared with the vendor bill.

Products & Services

QuickBooks Products & Services can help you track what you're selling and, when set up properly, what those products or materials cost your business.

Cost of Goods Sold

Watching COGS alongside revenue can help identify margin compression that might otherwise be hidden by growing sales.

Payroll and Overtime

Payroll is one of the largest expenses for many businesses. Increasing overtime should be reviewed alongside the additional revenue or productivity it is generating.

Duplicate Bills

Lee also shares a recent example of a client's health insurance bill being entered twice. Reviewing the vendor history helped identify the duplicate before the second payment went out.

Recommended Resources

Free QuickBooks Clarity Scorecard

Not sure whether your QuickBooks is giving you reliable enough information to make these kinds of business decisions?

Our free QuickBooks Clarity Scorecard can help you identify where your QuickBooks is working, where there may be gaps, and whether you're getting the financial clarity you need to confidently run your business.

Get your free QuickBooks Clarity Scorecard here:

https://lee-davis-and-company.aweb.page/unlock-clarity-free-scorecard

Timestamps

00:00 - QuickBooks Mastery Podcast Intro

01:14 - Where Is Your Profit Going? Understanding Cost Creep

03:11 - The Payroll Discount Story: Catching a Hidden Cost Increase

08:28 - What Cost Creep Is and Why Small Increases Matter

14:42 - Using QuickBooks Profit & Loss Reports to Find Rising Expenses

20:23 - Products, Services, Cost of Goods Sold and Shrinking Margins

24:09 - Negotiating With Vendors Using Your QuickBooks Data

38:56 - Key Takeaways: Protecting Your Profit From Cost Creep

Call to Action

Your QuickBooks should do more than tell you what already happened.

It should help you understand where your money is going, what is changing, and what decisions you need to make next.

If you're not sure whether your QuickBooks file is giving you information you can actually trust, start with our free QuickBooks Clarity Scorecard:

https://lee-davis-and-company.aweb.page/unlock-clarity-free-scorecard

And if you have a QuickBooks question, something in your books that doesn't make sense, or a topic you'd like Erica and Lee to cover in a future episode, we'd love to hear from you.

Email us at:

support@leedavisandcompany.com

We read and respond to every email.

And don't forget to subscribe to QuickBooks Mastery for Small Business Success so you don't miss the next episode.

Transcript
Erica:

Welcome to Quickbooks Mastery for small business success.

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I'm Erica Northrup.

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Lee: And I'm Lee Davis.

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Erica: I handle the tech,

and he handles the numbers.

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And together, as a father-daughter team,

we bring decades of experience helping

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small to medium-sized businesses thrive.

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Lee: We know that as a business owner,

your time is best spent mastering

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your craft and growing your business,

not getting lost in QuickBooks.

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Managing finances can be confusing,

and you don't have hours to waste

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sorting through spreadsheets

or fixing bookkeeping mistakes.

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That's where we come in, helping

you streamline QuickBooks so you

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can focus on building your business.

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Erica: Each week, we break it all

down into simple, actionable steps

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so you can focus on growing your

business, not fixing your books.

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Lee: Let's embark on this journey together

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Erica: Welcome back to QuickBooks

Mastery for Small Business Success.

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I'm Erica Northrop, and I'm here

with my papa in person, Lee Davis.

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Lee: Good morning again.

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We- How you

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Erica: doing in Canada, Papa?

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Lee: Oh, absolutely, we're loving it.

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Yeah.

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And we'll have to give

a plug for the Airbnb.

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Erica: Yeah, quite the journey

there, but here we are.

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So this is episode 40,

Where is Your Profit Going?

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How to Use QuickBooks to Find Cost Creep.

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Today, we're talking about how small

increases in your business expenses can

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quietly chip away at your profit, and

how QuickBooks can help you spot them

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before they become a bigger problem.

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Lee: One of the things I've learned

after working with businesses for all

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these years is that their expenses

have a tendency to go in one direction.

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Yeah, yeah.

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And that's up.

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And you know, I was thinking, recently

I was working with a client who was

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asking me, "Should I enter my bills

and should I enter my checks, or

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should I just use the bank feed?"

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And you know, that's my

favorite answer to give.

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And I said, "Well, do you want

to keep track of your money?"

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You know, really, I said, "Do you?"

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Because if you want to really know what

you're spending, you're going to want

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to enter your bills, and you're gonna

want to enter your checks, and because

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that keeps you on top of your expenses.

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And really, expenses have a way, as

we're talking about, of increasing.

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Erica: Yeah.

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Lee: Because sometimes it's not the big

expenses that you're trying to maybe keep

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track of, although you certainly will,

but managing those smaller expenses,

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say, "Well, what did I get that for?"

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Mm.

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"What was that for anyway?"

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Sometimes a vendor raises a price

a little bit, a discount expires, a

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subscription renews at a different rate.

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You know, a payroll provider

changes what they're charging.

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Individually, none of these things

may seem like a very big deal.

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Erica: No.

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Lee: But when you start adding them

together across a business, they can have

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a very real effect on your profitability.

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Erica: $5 can really turn into

$100 many time over very quickly.

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Lee: Well, you know, my grandmother

used to say, "You watch the pennies-

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Erica: Yeah

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Lee: the dollars will

take care of themselves."

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Erica: True.

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So good.

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Lee: And Erica, there was

actually a situation with one

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of our clients recently- That

really brought this home for me

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Erica: Yeah, and this is one of the

reasons I wanted us to do this episode

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was because of that experience you had.

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Because when you first told me about

this, the lesson wasn't really, "Here's

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how to negotiate with a payroll company."

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The bigger lesson was, how did

you know something had changed

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in the first place, Papa?

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How did you know that?

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Lee: I think the answer is you need

to pay attention to the numbers.

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Erica: Yeah.

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Mm-hmm.

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Lee: It isn't…

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When we were looking at this weekly,

so this happens to be a payroll client

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who's paid weekly, and so you just

need to take a look at those reports

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weekly because sometimes it doesn't

stand out to you, but when you go

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looking at a report and see, oh, the

discount should be 50% and it's 10.

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Erica: Mm.

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Yeah.

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Lee: So, I mean, that's

a significant number.

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Again, looking at reports

and looking at the numbers.

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Erica: Yeah.

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So Papa, why don't you tell us that

story because I think this is something

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a lot of business owners would never

have noticed, and I think so many people

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are gonna learn from this story today.

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Lee: Yeah.

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I think when you are working with

any vendor and you negotiate a fee,

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a contract, so our clients get a

50% discount on payroll services,

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and some of them have significant

payroll costs in those services.

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They have HR.

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They have a number of services that are

wrapped up in their payroll fee, and

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so getting a 50% discount on perhaps

a $900 charge for a company that has

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40 employees is not small change.

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No.

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And so $450 is something to keep your

eye on, or in this case, it was a smaller

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company, and their discount was $100.

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Whether it's 450 or 100- It's significant.

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So normally, what happens is that

these discounts come, and they're,

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you know, based on their payroll fee.

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What happens is that they charge the

client weekly or biweekly based on what

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their payroll is, and then we see it.

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And so in this case, it was $100 fee

that now they didn't have the discount.

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So therefore, the number normally is 45.

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Okay.

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And so I called up or I emailed

the rep at Paychex, and I

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said, "There's something wrong.

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He hasn't received his discount."

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And I looked back, and it

had been several weeks.

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And I said, "I want him to have this

discount, and I want you to go back

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and give it retroactively back to him."

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And so she had said to me, "I'm not sure

we can go back and do it retroactively."

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I said, "Well, I'm telling you

what, we're gonna work on that,

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and if I need to contact the

salespeople or your manager, I will."

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Erica: Yeah.

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Lee: And so-

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Erica: Because it's

something he's been receiving

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Lee: for a long time.

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Well, that's right.

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Erica: Right?

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Lee: That's right.

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Well, that's one of the advantage

when I first started out over 10 or

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11 years ago, that Paychex wanted to

be our exclusive payroll provider.

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Erica: Mm-hmm.

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Lee: And so I said, "In exchange

for that, I want a significant

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discount for the clients."

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Erica: Yeah.

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And

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Lee: it isn't something that

we make any money off of.

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We pass that discount

directly on to the clients.

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They get that through paychecks.

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We don't…

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It's just something we can

do to help our clients.

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So I've been sort of passionate over that

over the years, and she said to me, "You

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have to make sure that renews annually."

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I said, "You know what?

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I think you need to let me know when

that renews, because that's just

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not something that I keep track of."

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Right.

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You know, but I keep track of it

when I see the discount, okay?

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But I'd like not to be

having this discussion.

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I'd like to be saying, "Okay, let's

look at it before it expires."

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Erica: Yeah, absolutely.

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Lee: So anyway, that's a story.

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Erica: Yeah.

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You know, and that's the part

that really stands out to me.

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The payroll company didn't call

the business owner and say, "By the

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way, you're paying us more now."

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The money just started

increasing significantly.

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Lee: And I, I think, you know, that's

right, that price would just increase.

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Erica: Yeah.

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Lee: And, and I don't think that

necessarily means that somebody

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was trying to do something wrong.

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Erica: Oh, it was probably-

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Lee: You know?

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… Erica: an error in their software-

Right … or something that- Yeah

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just, you know, didn't work.

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Lee: Right.

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So I think that, you know,

businesses, they'll…

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The discounts expire,

and so things change.

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Erica: Yeah.

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Lee: And you just have to know that, yes,

and that's not, that's a small, maybe

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a small amount, but it is something.

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Erica: But times how many ever weeks.

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Lee: Well, that's correct.

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Times-

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Erica: How many months.

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Lee: Right.

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Erica: Every week, yeah.

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You know.

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Lee: So yes.

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Erica: You get paid every

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Lee: week.

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Get paid every week.

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Yeah.

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Erica: So that, that's 52 weeks.

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Yeah.

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I mean, that's-

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Lee: So it-

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… Erica: that's not a small amount.

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Lee: No.

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Erica: Especially for a s-

you know, a smaller company.

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A

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Lee: small business, yeah.

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Erica: Yeah.

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Lee: Yeah.

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Erica: Absolutely.

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Ultimately, it does, it

falls back on the company.

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You have to know what you're paying.

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Right.

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It's important, as business owners, that

you do know what's going out and, and just

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as much as you know as what's coming in.

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You know, which sounds incredibly

obvious when you say it, but once

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a business gets busy, I think that

becomes much harder than people realize,

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right, to manage all the different

maybe subscriptions or things that

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you're paying out for your business.

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Lee: Mm-hmm.

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You know, all of those

things can get hard.

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Erica: So I want to give this a name,

because I think it's something business

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owners should start looking for, and

we're gonna call it the cost creep.

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And really, all that means is that

the cost of running your business

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gradually increases over time,

not necessarily because you made a

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conscious decision to spend more.

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It just creeps up.

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Lee: Exactly, and usually it

isn't just one giant expense.

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It can be 20 small increases

and your software fee could have

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gone from 100 to 125, and your

supplier increased something by 3%.

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You know, I was talking with a vendor

of one of our competitors, and he said,

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"Well, we just slide an increase in-

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Erica: Oh

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e-

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Lee: every year."

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Erica: Mm.

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" Lee: And, and our customers just pay it."

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And I thought to myself, "You know what?

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He must have some different customers than

we do," because I think while may- maybe

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customers will pay an increase, they're

going to look at increases as well.

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Yeah.

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I mean, you know, so I think

that when you're gonna increase

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your service, then you need to

communicate with your customer.

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Erica: Yeah.

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Lee: I said it, I think

it works both ways.

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I think we want communication from our

vendors when they're gonna increase.

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I think that also insurance You

know, you have to keep track of…

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I have a thing about insurance.

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I think that, you know,

what do you pay for?

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Erica: Yeah.

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Lee: And ask what you pay for.

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Yeah.

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And understand your insurance, because

some of those fees are pretty hefty.

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So when your insurance renews, you

know, while you don't like it, read

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the fine print, read the contract.

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Know what you're getting.

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Erica: Yeah.

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Lee: And make sure you have a

good insurance agent who's willing

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to go out to the market and

look for you for better prices.

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Again, having a good partner and a vendor-

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Erica: Yeah

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Lee: makes you comfortable to say

that Joe Smith is looking out for me.

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Erica: Right.

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Sometimes those third-party companies that

don't have allegiance to any one company

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can actually be a great business asset-

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Lee: Yeah

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… Erica: and can really make a difference

when it comes to your bottom line.

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Right.

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For sure.

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Lee: And I think one of the areas that

y- you know, we're gonna allude to a

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little bit later in the podcast, which

I really liked that you brought up, was

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the fact that, you know, when you have

a good vendor, when you have a good

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partner, it's not always about price.

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Erica: No.

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Lee: Okay?

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It's really about, you know,

when you need that product or

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when you need that insurance-

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Erica: Yeah, it's there

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… Lee: that it's there.

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Erica: And they don't give

you any- Any … kickback or-

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Right … you know, they- That's

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Lee: right.

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Erica: That's right … you

know, you pay for a service.

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Lee: Yeah.

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Erica: Especially when it

comes to, like, insurance.

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Lee: Yeah.

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Erica: You know, we have friends

that went through, you know, a

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horrible experience with the, the

Talin fires a couple years ago.

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Lee: Mm-hmm.

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Erica: And they're still dealing

with the insurance companies-

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Yeah … trying to get it taken care of.

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Yeah.

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And here these people lost their house.

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That doesn't look good for

this insurance company-

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Lee: No

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Erica: at all.

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Lee: No.

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Erica: You know, and so I think,

yes, be mindful, you know, of the

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companies that you do partner with.

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When push comes to shove, when

actually need to utilize their

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product, are they going to do what

they actually said they're going to do?

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Lee: That's right.

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Or are you gonna fight for every

dime that you're entitled to?

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Erica: Yes, absolutely.

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Lee: So recently I was reading this book,

and it really g- gave me a, a really

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interesting look at the way people work.

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This guy was buying a house.

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So he decided, and, and we've bought a

number of houses, and I kinda wish that

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I had followed this advice way back, knew

that, is that before he bought the house,

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he went in and talked with the neighbors.

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And he found out that, about the schools.

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And he, you know, he rubbed

elbows with the general store.

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And he, he just learned about-

The community … whether that

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would be a great place for him and

his wife to bring their family.

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Mm.

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And I thought to myself, vendors, it,

you kinda need to do that with vendors.

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You

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Erica: need to find out

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Lee: what the borough wants then.

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You need…

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Right.

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Right.

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You need, and rather than just

say, "Well, so and so said, well, I

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can get the best price over here."

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Right?

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But

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Erica: the price isn't.

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It

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Lee: isn't the best price.

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So, you know, when you look at

the profit margin, it gets smaller

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even if the sales have an increase.

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So, you know, if your sales are flat- Yeah

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then you need to be concerned

about your costs, right?

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Erica: Absolutely.

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That's what it comes down to.

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And that does mean that your

profit margin does get smaller

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if your sales have an increase.

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That is truly what it means.

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Lee: A business owner may look at

the revenue and say, "We're doing

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more business than we did last year.

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Why doesn't it feel like

we're making more money?"

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Sometimes this is the answer.

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Erica: Absolutely.

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You know, I think that this is

particularly important for the kind

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of businesses we work with because

revenue can actually disguise

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the problem for a while, right?

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You might go from a million

dollars in sales to 1.2

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million, and that feels like the

business is growing, but if it costs

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significantly more to generate that 1.2,

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you may not actually be

better off, are you, Papa?

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Lee: You're absolutely…

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I think important, but

revenue isn't what you keep.

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Erica: No.

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Lee: And one of the things owners need

to start watching as their companies grow

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is not only how much do we sell, but what

does it cost us to make the, those sales?

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And that's where the

gross profit comes in.

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That's where your cost

of goods sold- Mm-hmm

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is important for you to keep an eye on.

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And that's where having good

historical information in QuickBooks

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becomes extremely valuable.

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Erica: Yeah.

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So this is a really important distinction.

341

:

QuickBooks isn't just

recording what happened.

342

:

If it's being used properly, it lets you

compare what happened, doesn't it, Papa?

343

:

Lee: Exactly.

344

:

Erica: Yeah.

345

:

Lee: And comparison is where

you start finding things.

346

:

Erica: Awesome.

347

:

So let's talk about that.

348

:

If an owner is worried that their

costs are slowly increasing, what can

349

:

QuickBooks actually tell them, Papa?

350

:

Lee: Actually, a lot.

351

:

You know, one of the first things I would

do is to compare the expenses by periods.

352

:

Like, if you're talking about comparing

last year's expenses to the prior

353

:

year, you can go in and run a report.

354

:

You run the profit and loss, and you

can compare it to the previous period.

355

:

And you can also ask QuickBooks, "I'd

like to see the comparison in either

356

:

a percentage or a dollar amount."

357

:

And then you can drop it into Excel

if you want and go and look at, just

358

:

take the five largest increases- Yeah

359

:

in dollar amounts.

360

:

Erica: Yeah.

361

:

Lee: And say, "Oh, yeah, I'm

gonna focus on these five.

362

:

You know, I want to look at these."

363

:

And quickly you can perhaps

start telling a story with it.

364

:

Erica: Yes, it could really make

a difference in your business.

365

:

Lee: Yes.

366

:

Erica: For sure.

367

:

And the memory is probably a terrible

accounting system, isn't it, Papa?

368

:

I mean, I know my memory.

369

:

I got so many things running

around in my head there.

370

:

Lee: Right.

371

:

It is.

372

:

You can't keep track of, because

something may tip you off, then you

373

:

chase a rabbit, you know- … instead of-

374

:

Erica: Right

375

:

… Lee: listening or looking at the data.

376

:

Erica: Mm.

377

:

Lee: You know, getting the information.

378

:

And so having, oftentimes, an

annual review of your expenses-

379

:

Erica: Mm-hmm

380

:

Lee: is, you know, what I

tell clients at the end of the

381

:

year, it's usually a good time.

382

:

You, things are a little

slower in December, right?

383

:

So good time to start looking at

December, January, at how your year went.

384

:

Erica: Yeah.

385

:

And- It's a good time to take a-

386

:

Lee: Yeah

387

:

… Erica: deep dive into your company.

388

:

Lee: Right.

389

:

Yeah.

390

:

And, and while you might wanna look

at some of your expenses, you also may

391

:

wanna look at some of your sales numbers

and some of your products and services.

392

:

Yeah,

393

:

Erica: yeah.

394

:

Lee: And, and be able to say, well,

is this product or service, is it

395

:

something that we make money on?

396

:

Erica: Is this actually

moving the needle for us?

397

:

Yeah,

398

:

Lee: that's right.

399

:

Erica: Yeah, absolutely.

400

:

Okay, so let's make this really practical.

401

:

If somebody listening to us today said,

"Okay, I want to know where cost creep

402

:

is happening in my business," where would

you tell them to start looking, Papa?

403

:

Lee: Well, you know, I think

QuickBooks offers several

404

:

tools that I really recommend,

particularly service businesses.

405

:

In larger businesses, it's helpful

if when you're going to do a bid, for

406

:

example, let's say you're, you're talking

about some well products, the pumps.

407

:

Erica: Yeah.

408

:

Lee: Okay, so I think start at the

beginning, create a purchase order

409

:

for that vendor, and say, "Well,

listen, I'm gonna purchase five pumps."

410

:

And then you get the price.

411

:

The pump is X dollars.

412

:

Let's say it's $1,500.

413

:

Right?

414

:

And you create that purchase order- Mm-hmm

… for the five pumps, send it to the vendor.

415

:

Erica: Yep.

416

:

Lee: It gets approved.

417

:

You say, "Yep, I'm gonna discount.

418

:

If you buy five, it would be 1,500,

but if you buy 10 it's only 1,000."

419

:

Erica: Hmm.

420

:

Yeah.

421

:

Lee: Okay, so you've saved $500 on a

pump, and if you know you use anywhere

422

:

from 50 to 100 pumps a quarter-

423

:

Erica: That's significant

424

:

Lee: then it's significant pricing.

425

:

Erica: Yeah.

426

:

Lee: But what you have to make sure

is that once you've negotiated that

427

:

purchase order- Mm-hmm … that

A, that you get the pumps-

428

:

Erica: Yep

429

:

… Lee: and you get the price that you want.

430

:

Erica: Yes.

431

:

Lee: And so it's significant in savings.

432

:

Erica: Yes.

433

:

Lee: And then you have to make sure when

they send you the bill, that they've

434

:

got it priced what you agreed on.

435

:

Erica: Yeah, follow up on that

discussion that you had, right?

436

:

Lee: Well, yeah, I mean, make sure.

437

:

Erica: Yeah.

438

:

Lee: So again, when that bill comes

in, you match it to the purchase order.

439

:

Erica: Done.

440

:

Lee: Okay?

441

:

You let QuickBooks create

that bill, all right.

442

:

You let QuickBooks do the heavy

lifting, and you just match that bill.

443

:

And lots of times people say,

"Well, I don't really have time

444

:

to create a purchase order."

445

:

Well, if you thought you

could save 4 or $5,000-

446

:

Erica: Right, you would make

time for a purchase order

447

:

… Lee: I would think that a purchase order-

448

:

Erica: Yeah

449

:

… Lee: is all of a sudden

becomes a great idea.

450

:

Erica: Yeah.

451

:

Lee: Right?

452

:

Erica: Absolutely.

453

:

Yeah.

454

:

Lee: And then, you know, you received your

inventory and- Mm … and you can keep

455

:

on top of the price of your inventory.

456

:

Erica: Mm.

457

:

Lee: Because in this market, inventory

is constantly shifting price-wise.

458

:

Erica: Absolutely, and I'm sure anything

you're paying every month where it

459

:

becomes easy to stop looking at the

individual charge, this would be a good

460

:

thing to do for, wouldn't it, Papa?

461

:

Lee: Right.

462

:

I think another tool that QuickBooks

really uses that I, I really like,

463

:

this is why you should enter a

check or you should enter a bill- Mm

464

:

because when you enter a check

and you, you put in that vendor-

465

:

Erica: Yeah

466

:

… Lee: and you can go down and see what

you purchased from that vendor, and

467

:

usually it's the same thing, right?

468

:

You, you purchase advertising from-

Yeah … a company, and when you put

469

:

it in you can see, ah, it's different-

470

:

Erica: Mm

471

:

… Lee: this month than it was last month.

472

:

I wonder why that is.

473

:

And it could be, again, cost creep.

474

:

Mm-hmm.

475

:

It could be 50 or $100.

476

:

Erica: Right.

477

:

Yeah.

478

:

Lee: And so they've now tacked on a

fee, and say, "Oh, well let me just see

479

:

if I can understand what that fee is."

480

:

Erica: Right, what is that fee for?

481

:

Lee: Yeah.

482

:

Erica: Yeah, absolutely.

483

:

You know, almost the expense that becomes

invisible because they're so routine.

484

:

Those are the ones that really does

create that cost creep, doesn't it, Papa?

485

:

Lee: It does.

486

:

Erica: Yeah.

487

:

Lee: And it, and somebody says,

"Well, I don't really have the time."

488

:

They may think they don't have the time.

489

:

It's only $50, or it's only $100, or

it's- It- … it might even be $400.

490

:

And but again, all of those-

491

:

Erica: All those little things, it-

492

:

Lee: those expenses-

493

:

Erica: Yeah

494

:

… Lee: they add up.

495

:

Erica: Yeah.

496

:

By the time you know it, you're $1,000 in.

497

:

That's right, 1,500.

498

:

$2,000.

499

:

Yeah.

500

:

I mean, if you're a bigger

company, that can add up to

501

:

thousands and thousands of dollars.

502

:

It,

503

:

Lee: it does.

504

:

Erica: Yeah, absolutely.

505

:

You know, I want to spend some time on

something else you talked about, Papa,

506

:

something else you talked about in your

recording, because I think this becomes

507

:

even more powerful for businesses selling

products or materials, and that's knowing

508

:

what something actually costs you.

509

:

Lee: Yeah, I think that, you

know, we've alluded a little

510

:

bit to automatic payments.

511

:

Erica: Yeah.

512

:

Lee: And this is where I think it can

really impact small businesses, that

513

:

you need to know what your costs are.

514

:

Erica: Yeah, it's important.

515

:

Lee: Okay?

516

:

And you need to have a system

for tracking your costs.

517

:

It's

518

:

Erica: all about systems, absolutely.

519

:

Lee: Right, it, and QuickBooks

does have, within the products and

520

:

services, it does have a box to

say, "Do you purchase this product?"

521

:

Erica: Mm.

522

:

Lee: And if so, there's a place

for you to put in the amount

523

:

that you purchase it for.

524

:

And it, it's one place, you know,

that you can look at to say,

525

:

"Yes, I do purchase this product,

and here's what I pay for it."

526

:

So you quickly can look at

what you're selling it for-

527

:

Mm … and what you're paying for.

528

:

And you might do that for some of

your bigger supplies, but even,

529

:

I know the well guy we work for,

there's a lot of small parts-

530

:

Erica: Yeah

531

:

Lee: that go into his well invoice.

532

:

Erica: Seems like thousands

and thousands of parts

533

:

Lee: I mean, a lot of parts

534

:

Erica: Yeah

535

:

Lee: And so it's a big volume of parts.

536

:

Watching your cost on, you

know, let's say 60 parts-

537

:

Erica: Mm

538

:

… Lee: could be a significant revenue,

both issue for you because price that

539

:

you're paying could have gone up-

540

:

Erica: Yeah

541

:

… Lee: and you haven't adjusted your

542

:

Erica: service.

543

:

Right, your cost-

544

:

Lee: Your cost

545

:

… Erica: people.

546

:

Lee: Right.

547

:

Erica: Yeah.

548

:

Lee: And believe me, people today

understand, customers understand-

549

:

Erica: Yeah

550

:

… Lee: the shifting costs-

551

:

Erica: Yes

552

:

… Lee: that they increase.

553

:

Erica: Yeah.

554

:

Lee: So again, looking at your bills,

knowing what you're paying can really

555

:

enhance your bottom line because if you

are selling more, if you're selling more-

556

:

Erica: Yeah

557

:

Lee: at a loss-

558

:

Erica: Yes

559

:

… Lee: then you're losing significant money.

560

:

Erica: Yes, absolutely.

561

:

Lee: So if you sell products,

or if materials are a major

562

:

part of delivering your service,

your cost matters tremendously.

563

:

So let's say you're selling something

for $100, and that item used to

564

:

cost you 40, and now it costs you

48, but you're still selling it

565

:

for 100, your margin has changed.

566

:

Erica: Even though the customer

never saw a price change, right?

567

:

Isn't that true, Papa?

568

:

Lee: That's right.

569

:

Erica: Yeah.

570

:

Lee: You're selling that product for the

same amount of money, and your revenue

571

:

may look the same, but you're making

less money every time you sell that item.

572

:

Erica: Yeah.

573

:

Lee: And you multiply that times

a hundreds of sales, and now

574

:

you're taking, talking about a

very different amount of money.

575

:

Erica: Yeah, and this is where products

and service in QuickBooks can become

576

:

much more than just a list of things

you invoice people for, can it, Papa?

577

:

Lee: Absolutely.

578

:

It's a great tool.

579

:

If your products and services are

set up correctly and you're tracking

580

:

costs properly, the information

can help you understand the

581

:

economics of what you're selling.

582

:

You know, what are you charging?

583

:

What's it costing us?

584

:

You know, is that cost changing?

585

:

Do you need to adjust your selling price?

586

:

Do you need to find a different supplier?

587

:

Do we need to, you

know, maybe renegotiate?

588

:

If you have a good supplier or a

good relationship, they might give

589

:

you a heads-up, for example- Mm

590

:

on, on a price increase coming,

and that way you can, you know,

591

:

buy a bunch of product ahead.

592

:

Erica: Mm.

593

:

Lee: Um, and you know, these are not

really bookkeeping questions really.

594

:

Erica: No.

595

:

Lee: But it's a way to use QuickBooks-

596

:

Erica: Yes

597

:

… Lee: to start that discussion with

your vendor, especially if you've

598

:

got a really good vendor that,

you've worked with for years.

599

:

Erica: It's really smart-

600

:

Lee: Yeah

601

:

… Erica: smart business.

602

:

Lee: Yeah.

603

:

Erica: Absolutely.

604

:

So now we get back to the negotiation part

of your original recording because finding

605

:

the increase is only one step, then the

question becomes, what do you do about it?

606

:

What do you do about that?

607

:

So- Right … break it down for us, Papa.

608

:

Lee: Yeah.

609

:

I think business is

all about partnerships.

610

:

Erica: Yeah.

611

:

Lee: First of all, you have to,

as we notice the price increase-

612

:

Erica: Mm-hmm

613

:

… Lee: you have to ask the

question, what happened?

614

:

Erica: Yes.

615

:

they're curious about your business

616

:

Lee: Yeah.

617

:

And what happened, and

why did it increase?

618

:

Erica: Mm-hmm.

619

:

Lee: And is there a

different pricing tier?

620

:

In this case, when we were dealing

with this negotiation, yes, they had

621

:

stopped the correct percentage of the

discount, so that was quite clear- Mm-hmm

622

:

what had happened.

623

:

Erica: Yeah.

624

:

Lee: And then we had to really come

down to the fact of when did it start?

625

:

Erica: Mm-hmm.

626

:

Lee: When did that increase change?

627

:

Erica: Mm-hmm.

628

:

Lee: When did that price increase go up?

629

:

And, you know, kinda

what was the total cost?

630

:

Erica: Yeah.

631

:

Lee: And who do I need to reach out to?

632

:

And then how do I need to

get it resolved so the client

633

:

gets the fair contract price?

634

:

Erica: Yeah.

635

:

You know, and you don't know until

you ask, you start asking those

636

:

questions- Uh-huh … do you, Papa?

637

:

Lee: That's right.

638

:

You have to ask.

639

:

Erica: Yeah.

640

:

Lee: You can't be afraid to

really say, "Yes, you know what?

641

:

This is a price issue.

642

:

This is a contract we have,

and it needs to be, you know,

643

:

handled correctly and fairly."

644

:

Erica: Yeah.

645

:

Lee: You know?

646

:

Yes,

647

:

Erica: absolutely.

648

:

Lee: That, and you need to

be willing to negotiate.

649

:

It, it doesn't have to be combative.

650

:

Erica: No.

651

:

Lee: It's business, right?

652

:

Yeah.

653

:

And- We had- … it starts out with

a discussion, and then if it somehow

654

:

needs to be pushed back on a little bit-

655

:

Erica: You push back a little bit

656

:

… Lee: you push back.

657

:

Erica: Right.

658

:

Not nastily- Right … but

you just, you're- You push

659

:

Lee: back.

660

:

Erica: Yeah.

661

:

Absolutely.

662

:

You know, I think there's

another important point here.

663

:

Negotiating doesn't mean being

combative, just like you said.

664

:

That's not what it's about-

No … at all, is it, Papa?

665

:

Lee: No, not at all.

666

:

If you have a good business

relationship- Yeah … with your vendors-

667

:

Erica: Yeah

668

:

… Lee: and they understand the value

of your business, and you understand

669

:

what you receive from them, then

you're gonna come to some agreement.

670

:

Erica: Yes.

671

:

Lee: And sometimes the simple

fact is that you're paying

672

:

attention changes the conversation.

673

:

Erica: Yes.

674

:

Lee: You know, they know, "Oh,

you know, he, I guess he keeps

675

:

track of that information."

676

:

Erica: You're right, which is good

for your partners to know, right?

677

:

That, that's right.

678

:

That you're on top of the ball.

679

:

Lee: That's right.

680

:

Erica: Absolutely.

681

:

Lee: That you care about them.

682

:

Erica: And what you don't ask

for, if you never ask, the

683

:

answer's always going to be no.

684

:

Lee: Yes.

685

:

Erica: So it doesn't hurt to ask.

686

:

Lee: No.

687

:

And ultimately, they want

more business from you.

688

:

Erica: Yes.

689

:

Lee: They want more business from us.

690

:

Erica: Yes.

691

:

Lee: So, and you know, so it's a two-way-

692

:

Erica: It's a two-way street

693

:

… Lee: street.

694

:

Erica: Absolutely.

695

:

You know, this is probably the part

of the episode I like the most because

696

:

there's a huge difference between

calling a vendor and saying, "This

697

:

seems expensive," and calling them and

saying, "Last year we were paying this.

698

:

Six months ago we were paying this.

699

:

Today we're paying this.

700

:

Can you explain what changed?"

701

:

Lee: Absolutely.

702

:

Now you're having a data discussion.

703

:

It's

704

:

Erica: a factual conversation.

705

:

The

706

:

Lee: factual

707

:

Erica: information.

708

:

Right.

709

:

You bring actual facts

that actually happened.

710

:

Lee: Right, and that-

711

:

Erica: In curiosity, right, Papa?

712

:

Lee: Sure.

713

:

Erica: Right?

714

:

Yeah.

715

:

Does it, it really pays to be

curious, to just be open about,

716

:

okay, just explain this to me.

717

:

What did happen?

718

:

Yeah.

719

:

Can you break this down for me?

720

:

Explain for me why

there was this increase.

721

:

Lee: Yeah, because getting

information is never bad, right?

722

:

Erica: Oh.

723

:

Lee: Because you could say, well, your

vendor could say, "Oh, something happened.

724

:

You didn't get the preferred pricing."

725

:

And all of a sudden you

get a check for $3,000.

726

:

Erica: Right.

727

:

You

728

:

Lee: know?

729

:

What

730

:

Erica: happened?

731

:

Lee: Right.

732

:

You know, actually, when you see the

history and you're looking at the numbers-

733

:

Erica: Yeah

734

:

… Lee: quite good information

helps you make good decisions.

735

:

Erica: And at the end of the day, this

makes you a much better negotiator.

736

:

So books is actually giving you

leverage, aren't they, Papa?

737

:

Lee: Absolutely.

738

:

Erica: Yeah.

739

:

Lee: Absolutely it can.

740

:

If the information inside is accurate

enough to trust, I think that's, right?

741

:

Erica: Yeah, back, where,

where's your numbers

742

:

Lee: at?

743

:

Back to good information.

744

:

Erica: Yeah, yeah.

745

:

Lee: And only if somebody

actually looks at it.

746

:

Erica: Yeah.

747

:

Lee: Okay?

748

:

That's something we've said

many times of, on this podcast.

749

:

Erica: Yeah, absolutely.

750

:

Lee: Um, there's no benefit

to having all the financial

751

:

information if nobody's using it.

752

:

Erica: Absolutely.

753

:

So let's talk about that for a hot

second here because I can already hear

754

:

somebody thinking, "I have QuickBooks.

755

:

Why haven't I seen any of this?"

756

:

So break that down for us,

757

:

Lee: Papa.

758

:

Yeah, because having QuickBooks

and having useful information

759

:

are two different things.

760

:

If everything from one vendor is being

lumped into one great expense account,

761

:

you may not have enough detail, okay?

762

:

If transactions are being miscategorized,

comparisons become harder.

763

:

Erica: Yeah.

764

:

Lee: If your products and services

aren't set up properly, your product

765

:

profitability may not be obvious,

and if your books aren't being

766

:

reconciled, you may not even know

whether the information is complete.

767

:

Erica: Mm, which connects directly

back to so much of what we've been

768

:

talking about in these recent episodes.

769

:

The chart of accounts matter,

reconciliation matters, posting

770

:

payroll correctly matters, products

and services matter, not because

771

:

QuickBooks wants you to do those

things, because they determine whether

772

:

you can actually trust the information

you're using to run your business.

773

:

Lee: Exactly.

774

:

I think that's the whole point, right?

775

:

So we've talked about in a

number of podcasts- It's small

776

:

steps you take, and wins.

777

:

You can have small wins and feel

really confident about your numbers.

778

:

And so I think that whole

confidence just increases-

779

:

Erica: Yes

780

:

… Lee: and makes you more willing

to utilize books the way it can

781

:

bring you a greater satisfaction.

782

:

Erica: Right.

783

:

Absolutely.

784

:

So let's give somebody listening

a simple exercise, Papa.

785

:

Not a 20-page product, just something

they can do after this episode.

786

:

What would you have them look at, Papa?

787

:

Lee: I would start by identifying maybe

five of your largest or most important

788

:

reoccurring products that you use.

789

:

Take, like we talked about, the

well guy might take his most

790

:

expensive product, his pumps.

791

:

Erica: Yeah.

792

:

Lee: And what you order the most of.

793

:

So you can run a products and service

report, that is a key report, and just

794

:

search for your top five products.

795

:

Yeah.

796

:

And they could be several different

vendors, but take your top five, your

797

:

most expensive, what you order the most,

and ask yourself what cost has changed.

798

:

Erica: Mm.

799

:

Lee: You know, or m- maybe

you're ordering more.

800

:

Erica: Mm-hmm.

801

:

Lee: And maybe you're not selling more.

802

:

You know, I mean, there could be a number

of reasons when you look at your products

803

:

that you say, "Ah, somehow we're not

tracking what we're selling enough, and we

804

:

have more products on hand than we need."

805

:

Erica: So you really start asking

yourself questions about- That's right

806

:

what you're seeing back at you

based on these five products.

807

:

Lee: That- that's right.

808

:

And you might get a real good indicator

if your cost of goods sold is up

809

:

significantly in percentage wise.

810

:

Mm.

811

:

That's why running that report by

percentage of increase can really

812

:

tell you, because if your sales are

up only 5%- But your cost of goods

813

:

sold is up 10 or 15, then you know you

need to take a look at that, right?

814

:

Erica: There's a, it's

just a flag that says,

815

:

" Lee: Okay, hey- That's right.

816

:

Yeah.

817

:

Hey, let's look those

818

:

… Erica: look at, look at me."

819

:

' Lee: Cause it could be significant.

820

:

It could mean 50 to $100,000.

821

:

Erica: Mm-hmm, which is very significant.

822

:

Lee: Right.

823

:

Which is very significant.

824

:

Erica: Yeah, absolutely.

825

:

So, you know, maybe some of those

questions are, has the cost changed?

826

:

Do I know why?

827

:

Was the increase expected?

828

:

Did a discount expire?

829

:

Did a contract renew?

830

:

Did your usage increase?

831

:

Did the vendor simply

increase their price?

832

:

Then I'd look at the major

cost categories, right, Papa?

833

:

Lee: Mm-hmm.

834

:

Erica: You know, look at overtime, cost

of goods sold, insurance, software-

835

:

Yep … professional services.

836

:

Whatever matters most in your particular

company, look at the trend, you know?

837

:

Lee: Yeah.

838

:

Erica: And there's probably one other

question we should add, and it's if

839

:

this increased, did your selling price

or business model change with it?

840

:

Because if your cost went up 10% and

your customer pricing never changed,

841

:

somebody absorbed that increase, and

it probably wasn't you, was it, Papa?

842

:

Lee: Yeah.

843

:

Clearly, one of the largest

expenses to any business is payroll.

844

:

Erica: Mm.

845

:

Yeah.

846

:

Lee: And within payroll, the most

significant cost is overtime.

847

:

Yeah.

848

:

Right?

849

:

So while employees like to have

overtime, 'cause it's time and a half,

850

:

employers, on the other hand, need

to make sure that they are reaping

851

:

the benefit of paying overtime.

852

:

Erica: Hmm

853

:

Lee: Is there a direct

correlation to increased sales?

854

:

Erica: Does this actually

move the needle for us-

855

:

Lee: Right

856

:

… Erica: if we had these people,

you know- Yeah … be in overtime?

857

:

Lee: Because if your overhead starts to

increase significantly, you have to look

858

:

at that and say, "Yeah, maybe I should

not have my employees work on Friday," if

859

:

Monday through Thursday they're racking up

50 hours, and then all of a sudden Friday,

860

:

and they might like having Fridays off.

861

:

Erica: Yeah, maybe

862

:

Lee: it could win for everybody.

863

:

Right, because they've

worked a lot of hours.

864

:

Or just tracking- Yeah … having a

better tracking mechanism to maybe

865

:

looking at the payroll reports-

866

:

Erica: Yeah

867

:

… Lee: would be helpful.

868

:

Erica: Yeah, absolutely.

869

:

You know, I don't want people to hear this

episode and start canceling everything

870

:

tomorrow, because not every higher

expense is a bad expense, is it, Papa?

871

:

Lee: Yeah, that's very important.

872

:

Um, we alluded earlier, it's not

necessarily when you're gonna say,

873

:

"Well, I'm gonna go with a less

expensive product," for example.

874

:

Erica: Yeah.

875

:

Lee: And that can, I can buy it over here.

876

:

Erica: Because then maybe your quality of

your overall product totally decreases.

877

:

Lee: That's right, and you may decide

that the employee benefit, or it could

878

:

be a, an employee benefit issue, like it

could be your health insurance- Mm-hmm

879

:

or it could be your dental

insurance, or it could be,

880

:

you know, the retirement plan-

881

:

Erica: Mm

882

:

… Lee: that you might use.

883

:

Erica: Mm-hmm.

884

:

Lee: That you may decide that an

employee benefit is worth the cost.

885

:

Erica: Mm, yes, absolutely.

886

:

You

887

:

Lee: know, you know, the point isn't

spend as little money as possible.

888

:

The point is knowing what you're spending

and make decisions intentionally.

889

:

Erica: Yeah, absolutely.

890

:

You know, that's really the definition

of being financially in control

891

:

of your business, isn't it, Papa?

892

:

Lee: Absolutely.

893

:

Erica: Yeah, and I think this is where

QuickBooks changes from bookkeeping

894

:

software into something much more useful.

895

:

A lot of owners think QuickBooks

exists because they need financial

896

:

statements at tax time, but the real

value is being able to answer questions

897

:

like, "Where is my money going?

898

:

Why did my profit change?

899

:

What is getting more expensive?

900

:

Which parts of my

business are making money?

901

:

Where do I need to ask better questions?"

902

:

Lee: I always like practical stories.

903

:

Erica: Yes.

904

:

Lee: And yesterday I was

talking with a client.

905

:

Their bookkeeper had entered a bill twice.

906

:

Erica: Mm.

907

:

Lee: And they actually cut two checks.

908

:

And he, when he, but he signs

the checks, so I, I think- Right

909

:

there's a very good reason-

910

:

Erica: Yeah

911

:

… Lee: why the owner signs checks.

912

:

Erica: Yes.

913

:

Lee: Because the owner may take

a harder look, especially when

914

:

that check is 8 or 10 or $12,000

a month, like health insurance.

915

:

Erica: Their money.

916

:

Lee: That's right.

917

:

Erica: Yeah.

918

:

Lee: And so he said, "Lee, can you tell

me whether that bill got entered twice?"

919

:

I was able to go right

to that vendor file.

920

:

Erica: Mm.

921

:

Lee: And I said, "Sure enough."

922

:

Erica: Yeah.

923

:

Lee: And he said, "Well, I've still

got the check sitting in the file."

924

:

He said, "Can you fix it for me?"

925

:

Because if it wasn't fixed

correctly, and of course, it would

926

:

be awful for that check to go out.

927

:

Erica: Yeah.

928

:

Lee: And but also, it overstated

his, their expenses, doubled

929

:

their health insurance.

930

:

And one of the ways that QuickBooks

helps you when you're managing bills

931

:

is that if you put in a duplicate

bill number, it will flag it.

932

:

So getting the right bill number-

933

:

Erica: Mm-hmm

934

:

Lee: is a great tool that QuickBooks, if

you have it turned on, that will help you

935

:

know, oh, I already entered this bill.

936

:

Erica: Yeah.

937

:

Lee: And, and I'm a stickler for

going to the vendor file- Yeah

938

:

and looking at it when a bill comes in.

939

:

Erica: Yeah.

940

:

Lee: I just think it's one

extra check you can do-

941

:

Erica: Yeah

942

:

… Lee: that helps.

943

:

Erica: Yeah, utilizing the resources

and the tools- That's right … that's

944

:

right around you that you have-

Yes … at your disposal is huge.

945

:

That's,

946

:

Lee: that's right.

947

:

Yeah.

948

:

Erica: You know, and I think that's really

where we want to keep taking this podcast.

949

:

Not just, do I use QuickBooks,

but how do I use QuickBooks to

950

:

run a stronger business, Papa?

951

:

Isn't that kind of-

Yeah … where we wanna take this?

952

:

Lee: You know, th- that's exactly right.

953

:

Recently, your mom and I

bought a new car, right?

954

:

Yeah,

955

:

Erica: yeah.

956

:

Lee: And I decided to

make the process fun,

957

:

Erica: right?

958

:

You really- Right.

959

:

Lee: I decided that as opposed

to that, your old car had 240,000

960

:

miles plus on it, and, but so

looking under the hood, if you will-

961

:

Erica: Yeah

962

:

Lee: was really a good exercise-

Mm-hmm … to say, you know, what do

963

:

we really want to get out of a car?

964

:

Yeah.

965

:

And I would tell people it's

the same thing with QuickBooks.

966

:

What do you really wanna

get out of your QuickBooks?

967

:

You know, what's your goal?

968

:

It re- and you know, is if it's

just as you've alluded to, you

969

:

know, save money at tax time-

970

:

Erica: Yeah

971

:

Lee: that's not really where the

greatest bang for your buck is gonna

972

:

Erica: be.

973

:

No.

974

:

Oh.

975

:

Lee: You know, your biggest saving

is gonna be running a business

976

:

that is both cost-effective-

977

:

Erica: Yeah

978

:

… Lee: and quality driven.

979

:

Erica: Yeah.

980

:

Lee: That you feel good about the way,

you know, you are managing your sales and

981

:

how you're looking at the relationships

with your vendors, and really how

982

:

you can enhance your bottom line.

983

:

Erica: Yeah, absolutely.

984

:

So if you remember one thing

from today, remember this:

985

:

your expenses are not static.

986

:

Your vendors change prices, discounts

expires, contracts renew, material

987

:

costs change, subscriptions increase,

payroll costs change, and if nobody

988

:

is watching, those increases can

quietly eat away at your profit

989

:

you worked very hard to create.

990

:

Lee: And QuickBooks

gives you great history.

991

:

Use it.

992

:

Compare the numbers, ask questions

when something changes, be willing

993

:

to negotiate for better pricing, know

what you're paying, know why you're

994

:

paying it, and don't be afraid to

have conversations with your vendor

995

:

when the numbers don't make sense.

996

:

Erica: Yeah, because sometimes making

more money in your business doesn't

997

:

start with finding another vendor.

998

:

Sometimes it starts with paying attention

to the money that's already leaving.

999

:

Awesome.

:

00:39:49,627 --> 00:39:51,117

Papa, that was so good.

:

00:39:51,237 --> 00:39:52,427

Such a good episode.

:

00:39:52,478 --> 00:39:53,697

Great job.

:

00:39:53,728 --> 00:39:54,788

Another really great one.

:

00:39:54,987 --> 00:39:58,377

You know, and if you're listening to

this and thinking, "I'm not actually

:

00:39:58,387 --> 00:40:03,036

sure my QuickBooks Would give me that

information Papa is talking about.

:

00:40:03,046 --> 00:40:06,875

That's exactly why we created

the QuickBooks Clarity Scorecard.

:

00:40:06,956 --> 00:40:11,316

It will help you identify where your

QuickBooks is working, where there

:

00:40:11,316 --> 00:40:15,556

may be gaps, and whether you're

actually getting the financial

:

00:40:15,556 --> 00:40:17,586

clarity you need to run your business.

:

00:40:17,625 --> 00:40:21,995

You can find the link in the show

notes or at leedavisoncompany.com.

:

00:40:22,036 --> 00:40:27,385

And as always, if you have any questions

or there's a topic you'd like for us to

:

00:40:27,386 --> 00:40:33,525

tackle on an upcoming episode, reach out

to us at support@leedavisoncompany.com.

:

00:40:33,575 --> 00:40:37,416

We really do read the emails

and we respond to every one.

:

00:40:37,426 --> 00:40:39,755

Lee: Thanks for listening, and

we'll talk to you next time.

:

00:40:39,796 --> 00:40:40,546

Erica: That's right.

:

00:40:40,555 --> 00:40:41,446

Talk to you later.

:

00:40:41,485 --> 00:40:42,336

See you next week.

:

00:40:42,386 --> 00:40:43,135

Bye for now.

:

00:40:47,082 --> 00:40:50,392

Thanks for tuning in to QuickBooks

Mastery for Small Business Success.

:

00:40:50,542 --> 00:40:54,372

Lee: If you enjoyed this episode,

hit Subscribe and stay connected

:

00:40:54,372 --> 00:40:56,642

with us at leedavisoncompany.com.

:

00:40:56,682 --> 00:40:59,192

Erica: We know QuickBooks can

be overwhelming, so we've put

:

00:40:59,192 --> 00:41:02,062

together a free resource to

help you get started right away.

:

00:41:02,111 --> 00:41:04,971

Grab your copy at leedavisoncompany.com,

:

00:41:05,221 --> 00:41:09,291

and when you do, you'll also get

access to our VIP email list, where

:

00:41:09,291 --> 00:41:13,551

we share exclusive QuickBooks tips,

business strategies, and support.

:

00:41:13,702 --> 00:41:15,102

Lee: And we'd love to hear from you.

:

00:41:15,151 --> 00:41:19,251

If you have a QuickBooks question

or a business challenge, send it our

:

00:41:19,252 --> 00:41:22,312

way at support@leedavisoncompany.com.

:

00:41:22,371 --> 00:41:24,842

We might feature it in a future episode.

:

00:41:24,981 --> 00:41:27,702

Erica: We're here to help you

simplify QuickBooks and grow your

:

00:41:27,702 --> 00:41:29,352

business, one step at a time.

:

00:41:29,362 --> 00:41:30,331

See you next time.

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About the Podcast

QuickBooks Mastery for Small Business Success
Running a business is hard. QuickBooks shouldn’t make it harder. Welcome to QuickBooks Mastery for Small Business Success—the podcast for growth-minded small business owners who are ready to stop drowning in financial confusion and start making confident, data-driven decisions. Hosted by Lee Davis & Erica Northrup, the father-daughter duo behind Lee Davis & Company, each episode delivers practical advice, proven systems, and real-world strategies to help you clean up your QuickBooks, simplify your bookkeeping, and grow your business with clarity. Whether you’re stuck in a bookkeeping mess, unsure how to read your reports, or ready to finally outsource your financial chaos, this show gives you the tools and insight to move from overwhelm to control—one episode at a time. Because your time should be spent on your craft and building your business—not buried in spreadsheets and reconciliations. ⸻ Perfect for: • Service-based small businesses • Business owners making $750K–$2.5M annually • Entrepreneurs tired of trying to “figure out” QuickBooks on their own • Leaders who want to spend less time managing their books and more time growing Subscribe today and take the guesswork out of your numbers.