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Pure Bookkeeping

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If you were at one of our seminars we’d now invite you

to take a look at The Pure Bookkeeping System ...

pick it up, go through it page by page, and work out if

it’s for you.

Unfortunately that’s the one thing we can’t really do

in the webinar. So instead we’ve sent you a sample -

this document contains an example of a procedure

from each of the Bookkeeping, Sales and Marketing

and Human Resources manuals, as well as the table

of contents from the Bookkeeping Manual. It should

give you a sense of what to expect when you receive

The System.

Helping Great BookkeepersGrow Their Business

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Sales & Marketing

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Human Resources

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Bookkeeping

III

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BOOKKEEP I NG


BOOKKEEP I NG


BOOKKEEP I NG

Bookkeeping




Resources& Templates

InstructionalVideo




The Bookkeeping manual

Human Resources manual

Sales & Marketing manual

Instructional videos

Templates & resources

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Sales & Marketing

CONTENTS

© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 i

THE PURE BOOKKEEPING SYSTEM – SALES & MARKETING MANUAL

TABLE OF CONTENTS

The Sales & Marketing Manual ix

Index xi

1 MODULE 1 – Getting Started 1

1.1 Business Cards 1

1.2 When to start Marketing 2

1.3 Create a Marketing Plan 3

Summary of Key Learning 6

2 MODULE 2 –7 X 5 Marketing Strategy 1

2.1 Strategy 1 -‐ People you know 1 2.1.1 Who do you know? 1

2.1.2 What do you say? 2

2.1.3 People you know are on your Marketing Team! 3

2.2 Strategy 2 -‐ Referrals from clients -‐ People they know 5 2.2.1 Just ask! 5

2.2.2 Getting great testimonials from delighted clients 7

2.3 Strategy 3 -‐ Networking 11 2.3.1 Networking Groups 11

2.3.2 Before you join 12

2.3.3 Selling yourself in 60 seconds 12

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 ii

2.4 Strategy 4 – Door knocking 14 2.4.1 Preparation 14

2.4.2 Have fun with it! 15

2.4.3 Preparation completed now taking Action 17

2.5 Strategy 5 -‐ Letterbox Drop 19 2.5.1 Post Cards 19

2.6 Strategy 6 -‐ Accountants 20

2.7 Strategy 7 – Website & free online advertising 21 2.7.1 Go Daddy 21

2.7.2 Square Space 23

2.7.3 Content for your website 24

2.7.4 Free online Advertising 26

2.7.5 SAGE & QB online directories 26

2.8 Two things NOT TO DO in Marketing 27 2.8.1 Pay for print advertising 27

2.8.2 Yellow Pages 27


3 MODULE 3 – NETWORKING WITH ACCOUNTANTS 1

3.1 Cold Calling Accountants 1

3.2 Contacting Accountants referred by another Accountant 2 3.2.1 Calling Referred Accountants 2

3.2.2 Update your CRM and Template FIN 101 – KPI’s 3

3.2.3 Sending an email after setting up the appointment 3

3.2.4 Calling to confirm the appointment 3

© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 iii

3.3 Contacting the Accountant of a new client 4 3.3.1 Calling the Accountant of a new client 5

3.3.2 Update your CRM and Template FIN 101 – KPI’s 5



3.4 Getting Referrals from your Client’s Accountant 7 3.4.1 Developing and Maintaining Your Relationship 7

3.4.2 Email for Accountants to send to their whole database of clients! 8

3.4.3 Getting feedback and testimonials from happy Accountants 9


4 MODULE 4 – PRESENTATION FOR ACCOUNTANTS 1

4.1 What you need to prepare for the presentation 1

4.2 Customizing the Presentation 2

4.3 Practicing the presentation 3

4.4 Slide 1 – Introduction 4 4.4.1 Gathering information 4

4.4.2 Reflective listening 4

4.4.3 Ready to begin the presentation 6

4.5 Slide 2-‐ Problems accountants have with bookkeeping 7

4.6 Slide 3-‐ My Story 8 4.6.1 Your Experience 8

4.6.2 The Pure Bookkeeping System 9

4.7 Slide 5 – Your Vision and/or Mission Statement 10

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 iv

4.8 Slide 6 – Your Commitment and Core Values 11 4.8.1 Your Commitment to your clients 11

4.8.2 Your Core Values 11

4.9 Slide 7 – Keys to our success 12

4.10 Slide 8 – Our People 13 4.10.1 Standards 13

4.11 Slide 9 -‐ Our Process 14

4.12 Slide 10 – The Pure Bookkeeping System 15 4.12.1 The Full Presentation of the PBS 17

4.13 Slide 11 – What are we looking for? 24

4.14 Slide 12 – A Preferred Bookkeeper Agreement 24

4.15 Slide 13 – What do you have to do? 25

4.16 Slide 14 – What’s in it for you? 25

4.17 Slide 15 – Who are suitable clients? 26

4.18 Slide 16 – Rates 27

4.19 Closing the Presentation 28 4.19.1 Three things you leave with the Accountant 28


5 MODULE 5 – PROSPECTS 1

5.1 Cold Calling Prospects 1

© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 v

5.2 Receiving a Cold Call from a Prospect 2 5.2.1 How to respond to a “tire kicker” 2

5.2.2 Explaining the benefits of using your services 3

5.2.3 Completing the form MKT P104 Prospect’s Details 3

5.2.4 Meeting with the “decision-‐makers” of the business 4

5.2.5 Deciding where to meet 5

5.2.6 Making the Appointment 6

5.2.7 Updating your CRM & Outlook Contacts 6



5.3 Calling a Prospect who has been referred 7 5.3.1 Completing the form MKT P104 Prospect’s Details 7

5.3.2 Making the appointment 8

5.3.3 Update your CRM & Outlook 8




6 MODULE 6 – PRESENTATION FOR PROSPECTS 1

6.1 What you need to bring to the presentation 1

6.2 Choosing a Category for the Prospect Presentation 2 6.2.1 General 2

6.2.2 Startup Business 2

6.2.3 Rescues 2

6.3 Customizing the Presentation 5

6.4 Practicing the presentation 6

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 vi

6.5 Gathering information 7 6.5.1 Reflective listening 9

6.6 MKT P101 Prospect Presentation – General 10 6.6.1 Slide 1 Introduction 10

6.6.2 Slide 2 Your Vision Statement 10

6.6.3 Slide 3 Your Mission Statement 11

6.6.4 Slide 4 The Bookkeeping Monster! 12

6.6.5 Slide 5 You’re in control! 12

6.6.6 Slide 6 What are your options? 13

6.6.7 Slide 7 Important news when choosing a bookkeeper 13

6.6.8 Slide 8 Why choose…..? 14

6.6.9 Slide 9 Our Core Values 14

6.6.10 Slide 10 How do we take care of you? 16

6.6.11 Slide 11 Keys to our success 16

6.6.12 Slide 12 Our People 17

6.6.13 Slide 13 Our process 18

6.6.14 Slide 14 the Pure Bookkeeping System 18

6.6.15 Slide 15 Our Service 24

6.6.16 Slide 16 Our Rates 25

6.7 MKT P102 Prospect Presentation – Startup Business 26 6.7.1 Slide 1 Introduction 26




6.7.5 Slide 5 A New Business 26


6.7.7 Slide 7 Why choose…..? 27




© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 vii






6.8 MKT P103 Prospect Presentation – Rescue 28 6.8.1 Slide 1 Introduction 28



6.8.4 Slide 4 How did you get here? 28



6.8.7 Slide 7 Why choose YOUR BUSINESS NAME? 30









6.9 Closing the Presentation 32 6.9.1 Template P109 the FREE Health Check 32

6.9.2 Determining if the Prospect is a suitable client 33

6.9.3 Type Z Prospect 34

6.9.4 Notice how you and the Prospect are feeling 35

6.9.5 Choosing your client – the “Starfish” approach! 37

SUMMARY OF KEY LEARNING 39

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 viii

7 MODULE 7 – ENGAGING A NEW CLIENT 1

7.1 Documents to be completed and signed 1 7.1.1 TEMPLATE MKT C102a Client Engagement Letter 1

7.1.2 RC59 CRA Authorization Form 3

7.1.3 Telpay 3

7.1.4 TEMPLATE 102 New Client Details 5

7.2 Template C105 & C105a DETAILED Health Check 6

7.3 Administration 7


© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 ix

The Pure Bookkeeping System

The Sales & Marketing Manual

Layout

The Sales & Marketing Manual is broken up into five parts: Module 1 – 7 x 5 Marketing Plan

Module 2 -‐ Networking with Accountants

Module 3 – Presentation for Accountants

Module 4 -‐ Prospects

Module 5 –Presentation for Prospects

Module 6 – Engaging a New Client

There are many examples throughout the Manual of types of questions or comments you may make. They are meant to be used as a guide to help you while you are getting used to the Presentations. With experience you will learn to be creative with your interaction with Accountants or Prospects and adapt the questions or comments you make to suit the particular person you are speaking with. Above all, we recommend you be yourself! Sure you are backed by the Pure Bookkeeping System but if you are not genuinely passionate about what you do and feel awkward about what you are saying then they will see through it.

Resources & Templates CD & DVD

Over 100 Resources and Templates that form part of The Pure Bookkeeping System including: PowerPoint Presentations for Accountants and three different categories of Prospects; The Client’s Bookkeeping Manual; various checklists for tax preparations; New Clients Details forms; letters to Accountants; various value-‐added financial reports for clients; various Sales & Marketing Templates; bookkeeping job ad; interview scripts and bookkeeping recruiting skills test.

Purpose

The Sales & Marketing Manual provides you with a proven system which you can follow to deliver high quality, professional presentations to Accountants and to Prospects to increase your client base. It also includes information you need to start a new client and all the relevant templates. It has been tested on scores of Accountants and Prospects over the past 10 years so we know what they want and have developed the presentations to give them the solution – The Pure Bookkeeping System.

Copyright

Copyright ©Pure Bookkeeping 2013. This manual, and the entire Pure Bookkeeping System remain the property of Pure Bookkeeping Business Systems Limited (BN 84717 7631). All rights reserved. No part of this manual including interior design, cover design and icons may be reproduced in any form by any means (electronic, photocopying, recording or otherwise), for any reason, under any circumstances. As you will see in your licence agreement, we take our copyright very seriously – in fact our entire business is based upon it. Breaching this copyright by copying any section of this manual is grounds for instant termination of the licence and would require the immediate return or all Manuals, Resources, Templates, CD’s, DVD’s and any other Pure Bookkeeping property. Furthermore the damages for copying and

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 x

distributing this manual or any part thereof have been stipulated in the licence agreement as the full retail cost of a new licence agreement.

© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 xi

Index

Index

Refer to Resources & Templates CD Marketing/Admin/Admin MKT Quick Reference Index for a soft copy of the Index

Index PBS REF 7 x 5 Marketing Strategy -‐ Strategy 1 -‐ People you know Mod 2 2.1 -‐ Strategy 2 -‐ Client Referrals Mod 2 2.2 -‐ Strategy 3 -‐ Networking Mod 2 2.3 -‐ Strategy 4 -‐ Door Knocking Mod 2 2.4 -‐ Strategy 5 -‐ Letter Box Drops Mod 2 2.5 -‐ Strategy 6 -‐ Accountants Mod 3 -‐ Strategy 7 -‐ Website & free online advertising Mod 2 2.7 Accountants -‐ Calling referred Accountants Mod 3 3.2.1 -‐ Cold calling Mod 3 3.1 -‐ Developing a relationship Mod 3 3.4.1 -‐ Email to send to their database Mod 3 3.4.2 -‐ Feedback and Testimonials Mod 3 3.4.3 -‐ Presentation Mod 4 -‐ Referred by another Accountant Mod 3 3.2 -‐ Updating KPI's & CRM Mod 3 3.2.2 & 3.3.2 Angies List Mod 2 2.7.4 Business Cards Mod 1 1.1 Calls -‐ Calling Accountants of a new client Mod 3 3.3.1 -‐ Calling referred Accountants Mod 3 3.2.1 -‐ Calling referred Prospects Mod 5 5.3 -‐ Cold Call FROM Prospects Mod 5 5.2 -‐ Cold calling Accountants Mod 3 3.1 -‐ Cold Calling Prospects Mod 5 5.1 -‐ Tire Kickers Mod 5 5.2.1 CRM (Customer Relationship Management) -‐ Update after talking to an Accountant Mod 3 3.2.2 & 3.3.2 -‐ Update after talking to Prospect Mod 5 5.2.7 Door Knocking Mod 2 2.4 Facebook Mod 2 2.7.4 Health Check Mod 7 7.2 Hotfrog Mod 2 2.7.4

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 xii

Index

Index PBS REF Letter Box Drops Mod 2 2.5 Linkedin Mod 2 2.7.4 Marketing -‐ Creating a Marketing Plan Mod 1 1.3 -‐ Meeting with the decision makers Mod 5 5.2.4 -‐ Two things you DON'T DO Mod 2 2.8 -‐ What questions can you ask? Mod 2 2.1.2 -‐ When to start Mod 1 1.2 -‐ Who's on your team? Mod 2 2.1.3 Go Daddy Mod 2 2.7.1 Networking Mod 2 2.3 -‐ Accountants Mod 3 -‐ Groups Mod 2 2.3.1 Online advertising Mod 2 2.7.4 Postcards Mod 2 2.5.1 Powerpoint Presentations -‐ For Accountants Mod 4 -‐ For Prospects -‐ General Mod 6 6.6 -‐ For Prospects -‐ Rescue Mod 6 6.8 -‐ For Prospects -‐ Startup Business Mod 6 6.7 Preferred Bookkeeper Agreement Mod 4 4.15 Prospects -‐ Calling a referred Prospect Mod 5 5.3 -‐Cold call FROM a Prospect Mod 5 5.2 -‐ Cold Calling Mod 5 5.1 -‐ Presentation Mod 6 -‐ Tire Kickers Mod 5 5.2.1 -‐ Update CRM & Outlook Mod 5 5.2.7 Referrals -‐ From Accountants Mod 3 -‐ From people you know Mod 2 2.1 -‐ From your clients Mod 2 2.2 Resources & Templates -‐ Admin MKT 101 Marketing Plan & Checklist Mod 1 1.3 -‐ Admin MKT 102 Door Knocking Checklist Mod 2 2.4 -‐ Admin MKT 103 Creating a Website Mod 2 2.7 -‐ Admin MKT 104 Accountant's Presentation Checklist Mod 4 4.1 -‐ Admin MKT 105 Existing Accountant Feedback Form Mod 3 3.4.3 -‐ Admin MKT 106 Prospect Presentation Checklist Mod 6 6.1 -‐ Admin MKT 107 New Client Checklist Mod 7 7.1 -‐ Admin MKT 108 Existing Client Feedback Form Mod 2 2.2.2 -‐ MKT Spiel for PBS in your Advertising -‐ Corporation Mod 2 2.7.3 -‐ MKT Spiel for PBS in your Advertising -‐ Sole Proprietor Mod 2 2.7.3 -‐ PBS BK Logo & Manual Photos Mod 2 2.7.3 -‐ MKT A101 -‐ Accountant's Presentation(business) Mod 4

© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0 xiii

Index

Index PBS REF -‐ MKT A101 -‐ Accountant's Presentation(practice) Mod 4 -‐ MKT A103 -‐ Email for Accountant to send to their clients Mod 3 3.4.2 -‐ MKT C102a New Client Engagement Letter Mod 7 7.1.1 -‐ MKT C104 New Client House in Order Checklist Mod 7 7.3 -‐ MKT C105 DETAILED Health Check Checklist Mod 7 7.2 -‐ MKT C105a DETAILED Health Check Workpapers Mod 7 7.2 -‐ MKT C106 New Client -‐ Info they need to provide Checklist Mod 7 7.3 -‐ MKT P101 Prospect Presentation -‐ General Mod 6 6.6 -‐ MKT P102 Prospect Presentation -‐ Startup Business Mod 6 6.7 -‐ MKT P103 Prospect Presentation -‐ Rescue Mod 6 6.8 -‐ MKT P104 Prospect's Details Mod 5 5.2.3 & 5.3.1 -‐ MKT P109 FREE Health Check -‐ SAGE Mod 6 6.9.1 -‐ MKT P109 FREE Health Check -‐ QB Mod 6 6.9.1 -‐ MKT P110 FREE Health Check Voucher Mod 2 2.4 -‐ Reporting 601 -‐ Sample Financial Reports for Clients

Mod 4 4.19.1 & Mod 6 6.6

-‐ Reporting 602 -‐ Sample Fitness Review for Clients

Mod 4 4.19.1 & Mod 6 6.6

-‐ Reporting 603 -‐ Understanding Your Financial Reports Mod 2 2.4 Sales -‐ Choosing your clients Mod 6 6.9 -‐ Engaging the new client Mod 7 Selling yourself in 60 seconds Mod 2 2.3.3 Square Space Mod 2 2.7.2 Testimonials -‐ From Accountants Mod 3 4.3 -‐ From Clients Mod 2 2.2 Website -‐ Content Mod 2 2.7.3 -‐ Go Daddy Mod 2 2.7.1 -‐ Square Space Mod 2 2.7.2

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Sales & Marketing

SAMPLE

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 MODULE 3 p4

3.3 | Contacting the Accountant of a new client

3.3 Contacting the Accountant of a new client

After the Presentation to a Prospect, if they decide to go ahead with the engagement you will complete all

the relevant documentation. This is detailed in Module 3 of this manual. One of the documents you will

complete is the 102 -‐ New Client Details Template. One of the sections of this form is the Accountant’s

Contact Details.

When you return to your office after engaging the new client we recommend you contact their

Accountant to introduce yourself. It is a good idea to have the client call or email their accountant to pre-‐

introduce you first.

This is the perfect opportunity to call an Accountant that you don’t know and may not have spoken to

you, but because you can mention that you are the new bookkeeper for their client the barriers that

otherwise may have been there are gone completely.

© Pure Bookkeeping 2013 The Sales & Marketing Manual v4.0

Contacting the Accountant of a new client | 3.3

MODULE 3 p5

3.3.1 Calling the Accountant of a new client

The following is an example of what you would say:

“Hi my name is ……………………….. I’m from ………………………………..”

“I was wondering if I could speak to (Joe Blogs) about (ABC Client)”

If you are speaking to the secretary then they won’t hesitate to put you through (unless the Accountant is unavailable). When you are put through:

“Hi Joe my name is ………………… from ………………………… and I have just been engaged as the Bookkeeper for (ABC Client)”

Some direct questions you could ask:

• I was just wondering if you could give me information about this client that might be of help.

• Are there any issues that I need to know about (e.g. with the CRA)?

• Is there anything complicated that you think I need to know about the entity?

When sufficient information has been gathered then you could ask:

“I always like to meet with the Accountant of a new client, just to put a face to the name. So I was wondering if we could make a time to meet so that I could tell you more about my business and also to find out about the services you offer and your target market?

WITHOUT PAUSING SAY – “When would be a good time for you?”

Have your Outlook Calendar ready to enter the appointment.

3.3.2 Update your CRM and Template FIN 101 – KPI’s

Refer to the Resources CD – Admin Templates – Finance – FIN 101 KPI’s

• Update your CRM

• Update Template FIN101 – KPI’s

• Update Outlook Contacts

The Sales & Marketing Manual v4.0 © Pure Bookkeeping 2013 MODULE 3 p6

3.3 | Contacting the Accountant of a new client

3.3.3 Sending an email after setting up the appointment

So that the Accountant has your contact details, and as a professional courtesy, confirm the appointment

by sending an email immediately after the phone call.

The following is an example of the content of the email:

Hi Joe,

I look forward to working with you on (ABC Client) and hope to make your job much easier. I look forward to meeting you on (DATE) at your office at (TIME) to tell you more about my business and find out more about the services you offer and your target market.

Regards, (YOUR NAME)

(YOUR EMAIL SIGNATURE)

3.3.4 Calling to confirm the appointment

So that you don’t waste your time, and as a professional courtesy, we recommend you call the Accountant

the day before the meeting to confirm the appointment if it was made more than a week prior.

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Human Resources

CONTENTS

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 i

THE PURE BOOKKEEPING SYSTEM – THE HUMAN RESOURCES MANUAL

TABLE OF CONTENTS

THE PURE BOOKKEEPING SYSTEM x

The Human Resources Manual x

Institute of Professional Bookkeepers of Canada xi

Index xii

MODULE 1 – ADVERTISING FOR A BOOKKEEPER 1

1.1 Outsourcing the recruitment vs doing it in-‐house 1

1.2 Taking responsibility for the recruitment process 2

1.3 How The Pure Bookkeeping System helps 2

1.4 Anti-‐Discrimination 3

1.5 When to advertise 6

1.6 Where to advertise 7 1.6.1 Your local newspaper 7

1.6.2 The local School Newsletters 8

1.6.3 IPBC.ca 8

1.7 Workopolis 9

1.8 Ad Content 11 1.8.1 Discrimination in job advertisements 11

1.8.2 Suggested advertisement 11

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 ii

2 MODULE 2 – REVIEWING THE RESUMES 1

2.1 Organizing your email 1

2.2 Keeping resumes 2

2.3 Setting up the File Tray 2

2.4 Processing the Resumes flowchart 3

2.5 Quick assessment of Resumes before printing 4 2.5.1 Move emailed resumes to the “Candidate to Review” folder 4

2.5.2 What do you need to complete the quick assessment? 4

2.5.3 Be clear about your minimum standards 4

2.5.4 Successful candidates 5

2.5.5 Unsuccessful candidates 5

2.6 Transposing information from Resume to HR101 6 2.6.1 What you need 6

2.6.2 Section 1 – Candidate Details 6

2.6.3 Section 2 – Progress of Application 6

2.6.4 Section 4 – Work History 7

2.6.5 Section 5 – Memberships and Qualifications 8

2.6.6 Section 6 -‐ 8 8

2.6.7 Other things to consider 8

2.6.8 What should ring “alarm bells”? 8

2.6.9 Completing Section 3 – Summary of Experience & Qualifications 9


2.6.11 Filing the favourable resumes in File Tray 9

2.6.12 Updating Outlook 9

3 MODULE 3 – PHONE INTERVEW 1

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 iii

3.1 Phone Interview and Anti-‐Discrimination 1

3.2 What you will need 2

3.3 Greeting 2

3.4 Completing Template HR101 3 3.4.1 Section 2 – Progress of Application 3

3.4.2 Section 3 – Summary of Experience 3

3.4.3 Section 4 – Work History 3

3.4.4 Section 5 – What further study? 4

3.4.5 Section 6 – Goals and Ambitions 4

3.4.6 Section 7 – Availability 5

3.4.7 Section 8 – Final Comments 5

3.4.8 Giving information about you and your business 5

3.4.9 Scoring the candidate – Low, Medium or High? 7

3.4.10 Telling the successful candidate about the recruitment process 9

3.4.11 Inviting the successful candidate to a Skills Test 9


3.4.13 Administration after the phone call 10

4 MODULE 4 – THE SKILLS AND SPEED TEST -‐ QB 1

4.1 Preparation 1 4.1.1 Preparing paperwork for the Skills Test -‐ QB 1

4.1.2 Preparing the paperwork for the Speed Test -‐ QB 2

4.1.3 Restoring the QB Backup 2

4.1.4 Saving the Skills & Speed Test data files 2

4.1.5 How long do I keep the Skills & Speed Tests? 3

4.1.6 Work completed prior to the Skills & Speed Tests 3

4.2 The Skills Test -‐ QB 4 4.2.1 Greeting the candidate 4

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 iv

4.2.2 Explaining the process 4

4.2.3 Your Responsibility 5

4.2.4 Noticing the candidate’s behaviour 7

4.2.5 Asking questions during the Test 7

4.2.6 How much guidance is too much? 9

4.2.7 What you’re looking for is a bookkeeper like you! 9

4.2.8 Communication Skills 10

4.3 The Speed Test -‐ QB 11 4.3.1 Explaining the process 11

4.3.2 Conclusion of the Skills & Speed Test -‐ QB 11

4.4 Scoring the Skills & Speed Tests – HR112QB 11 4.4.1 Scoring the Skills Test 12

4.4.2 Total Points of all pages 20

4.4.3 Time Score Formula 20

4.4.4 Total Skills Test Formula 21

4.4.5 Scoring the Speed Test 22

4.4.6 Total Speed Test Formula 23

4.4.7 Benchmark Score for the Skills Test 24

4.4.8 Benchmark Score for the Speed Test 24

4.4.9 Benchmark Score for the combined Skills & Speed Test 24

4.4.10 Transferring the totals to HR114 Section 12 – Candidate Analysis 25

4.4.11 Completing Template HR113 – Scoring YOUR performance 26

4.4.12 Unsuccessful Candidates 26

4.4.13 Emailing unsuccessful candidates 27

4.4.14 Inviting the successful candidate to an Interview 28

4.4.15 Updating Section 2 – Progress of Application 28


4.4.17 Move Resume to “Interview Scheduled” File Tray 28

4.4.18 Completing the HR102 – YOUR Team’s Skills Test Results 29

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 v

5 MODULE 5 – THE SKILLS AND SPEED TEST -‐ SAGE 1

5.1 Preparation 1 5.1.1 Preparing paperwork for the Skills Test -‐ SAGE 1

5.1.2 Preparing the paperwork for the Speed Test -‐ SAGE 2

5.1.3 Restoring the SAGE Backup 2

5.1.4 Saving the Skills & Speed Test data files 2

5.1.5 How long do I keep the Skills & Speed Tests? 3

5.1.6 Work completed prior to the Skills & Speed Tests 3

5.2 The Skills Test -‐ SAGE 4 5.2.1 Greeting the candidate 4

5.2.2 Explaining the process 4


5.2.4 Noticing the candidate’s behaviour 6

5.2.5 Asking questions during the Test 6

5.2.6 How much guidance is too much? 7

5.2.7 What you’re looking for is a bookkeeper like you! 7

5.2.8 Communication Skills 9

5.3 The Speed Test -‐ SAGE 10 5.3.1 Explaining the process 10

5.3.2 Conclusion of the Skills & Speed Test 10

5.4 Scoring the Skills & Speed Test – HR112SAGE 10 5.4.1 Scoring the Skills Test -‐ SAGE 11

5.4.2 Total Points of all pages 19

5.4.3 Time Score Formula 19

5.4.4 Total Score Formula 20

5.4.5 Scoring the Speed Test 22

5.4.6 Total Score Speed Test 23

5.4.7 Benchmark Score for the Skills Test 24

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 vi

5.4.8 Benchmark Score for the Speed Test 24

5.4.9 Benchmark Score for the combined Skills & Speed Test 24

5.4.10 Transferring the totals to HR114 Section 12 – Candidate Analysis 25

5.4.11 Completing Template HR113 – Scoring YOUR performance 26

5.4.12 Unsuccessful Candidates 26

5.4.13 Emailing unsuccessful candidates 27

5.4.14 Inviting the successful candidate to an Interview 28

5.4.15 Update Section 2 – Progress of Application 28


5.4.17 Move Resume to “Interview Scheduled” File Tray 28

5.4.18 Completing the HR102 – YOUR Team’s Skills Test Results 29

6 MODULE 6 – THE INTERVIEW 1

6.1 Preparing for the interview 1 6.1.1 Template HR115 – Presentation for Candidates 1

6.1.2 What work has been completed 3

6.1.3 Saving the Template HR114 4

6.1.4 How long do I keep the Interview Questions? 4

6.1.5 Reviewing the Candidate’s results 4

6.1.6 Typing Candidate Specific Questions 5

6.1.7 Guide to Interviewing Questions 5

6.1.8 Recording the Interview 10

6.2 Your turn to talk! 11 6.2.1 Our Story 12

6.2.2 Our Vision and/or Mission Statements 13

6.2.3 Our commitment and values 14

6.2.4 Keys to our success 14

6.2.5 Our People 15

6.2.6 Our Process 16

6.2.7 The Pure Bookkeeping System 17

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 vii

6.2.8 Why have a system for bookkeeping? 18

6.2.9 What’s In It For You (WIIFM)? 19

6.2.10 Our Commitment to You? 21

6.3 Housekeeping & Legals 22 6.3.1 Template HR116 – Range of Bookkeeping Tasks 22

6.3.2 Template HR117 – Contractor’s Agreement 23

6.3.3 Contractor or Employee? 24

6.4 Section 12 Candidate Analysis 27 6.4.1 Appearance, Manner & Communication Skills 28

6.4.2 General Comments 29

6.4.3 Summary of Experience & Qualifications 29

6.5 Calling References 30 6.5.1 Updating Section 2 – Progress of Application 30

6.6 Choosing the best candidate 31 6.6.1 Three key ingredients in selecting the right person 31

6.6.2 Contacting the successful candidate 31

6.7 Unsuccessful candidates 32 6.7.1 Updating Section 2 – Progress of Application 32

7 MODULE 7 – HR118 STAFF ORIENTATION HANDBOOK 1

7.1 Customizing the Handbook & Admin Manual 1

7.2 Purpose of the Orientation 2

7.3 Saving the Template 2

7.4 Additional Bookkeeping Manuals 3

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 viii

7.5 Your Purpose 4 7.5.1 Your story 4

7.5.2 Your Vision Statement 5

7.5.3 Your Mission Statement 8

7.5.4 Your Admin Mission Statement 11

7.5.5 Your Core Values 14

7.5.6 Support 23

7.6 Knock Your Socks off Service! 24

7.7 Standards 25 7.7.1 BK I & II 25

7.7.2 Resources & Templates CD 25

7.7.3 Variations to BK I & II 26

7.7.4 Agreement 26

7.7.5 Bookkeeping Levels 26

7.7.6 Initial Training 26

7.7.7 Quality Controls & Errors and Omissions 29

7.7.8 Seminars 29

7.7.9 Dress Code 29

7.8 Communication 30

7.9 Finance 30 7.9.1 Time Billing Report 30

7.9.2 Invoicing & Format 31

7.9.3 Hours Worked 32

7.9.4 Taking a Break 32

7.9.5 Taking leave 32

7.9.6 Personal and Unrelated Business Calls 33

7.10 Legal 33 7.10.1 Professional Indemnity Insurance 33

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 ix

7.10.2 Agreement 34

7.10.3 Advice 34

7.11 Giving and Getting Referrals 34

7.12 IT 35

7.13 Organizing Your Client’s Processing 35

7.14 The Client’s Bookkeeping Manual 35

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 x

THE PURE BOOKKEEPING SYSTEM

The Human Resources Manual

Layout

The Human Resources Manual is broken up into six parts:

Module 1 – Placing the ad

Module 2 – Reviewing candidate’s resumes

Module 3 -‐ Initial phone call to candidate

Module 4 – The Skills Test

Module 5 – The Interview

Module 6 – Orientation

There are many examples given throughout this Manual. They are meant to be used as a guide. With experience you will learn to be creative with your interaction with the candidates and adapt the questions or comments you make to suit the particular person you are speaking with. Above all, we recommend you be yourself! Sure you are backed by the Pure Bookkeeping System but if you are not genuinely passionate about what you do and feel awkward about what you are saying then they will see through it.

Resources & Templates CD & DVD

Over 100 Resources and Templates that form part of The Pure Bookkeeping System including: PowerPoint Presentations for Accountants and three different categories of Prospects; The Client’s Bookkeeping Manual; various checklists for HST and tax preparation; New Clients Details forms; letters to Accountants; various value-‐added financial reports for clients; various Sales & Marketing Templates; HR Templates, bookkeeping job ad; interview scripts and bookkeeping recruiting skills test, the Training Module data file and template.

Purpose

The Human Resources Manual provides you with a proven system to help you select the best bookkeepers available. It has been tested on scores of candidates – successful and unsuccessful over the past 5 years. You don’t have to re-‐invent the wheel, just follow the instructions in this manual and use the Templates to generate a constant supply of great bookkeepers who will help your business grow.

Copyright

Copyright ©Pure Bookkeeping 2013. This manual, and the entire Pure Bookkeeping System remain the property of Pure Bookkeeping Business Systems Limited (BN 84717 7631). All rights reserved. No part of this manual including interior design, cover design and icons may be reproduced in any form by any means (electronic, photocopying, recording or otherwise), for any reason, under any circumstances. As you will see in your licence agreement, we take our copyright very seriously – in fact our entire business is based upon it. Breaching this copyright by copying any section of this manual is grounds for instant termination of the licence and would require the immediate return or all Manuals, Resources, Templates, CD’s, DVD’s and any other Pure Bookkeeping property. Furthermore the damages for copying and distributing this manual or any part thereof have been stipulated in the licence agreement as the full retail cost of a new licence agreement.

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 xi

Institute of Professional Bookkeepers of Canada

Institute of Professional Bookkeepers of Canada

Pure Bookkeeping and Institute of Professional Bookkeepers of Canada have formed a strategic relationship

to provide to bookkeepers a premium package that will allow bookkeepers to grow their business using a

complete range of systems, templates, tools and resources. Both Pure Bookkeeping and Institute of

Professional Bookkeepers of Canada offer bookkeepers in varying phases of their business a unique value

proposition that will assist bookkeepers in achieving outstanding results for their business.

IPBC offers a “career centre” on their web site to post your bookkeeper ads free of charge.

See 1.6 for further information

If you are not an IPBC Member call 1-‐866-‐616-‐4722 or visit their website at www.ipbc.ca for more

information.

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 xii

Index

Index

Index PBS REF Advertising -‐ Ad Content Mod 1 1.1 & 1.8 -‐ Anti Discrimination Mod 1 1.4 & 1.8.1 -‐ For a contractor Mod 1 1.8.2 -‐ Local Newspaper Mod 1 1.6.1 -‐ Outsourcing or in-‐house? Mod 1 1.1 -‐ School Newsletters Mod 1 1.6.2 -‐ Workopolis Mod 1 1.7 -‐ Suggested Ad Mod 1 1.8.3 -‐ When to? Mod 1 1.5 -‐ Where to? Mod 1 1.6 Anti-‐Discrimination Mod 1 1.4 Contractors -‐ Advertising Mod 1 1.8.2 -‐ Agreement Mod 6 6.3.2 -‐ Contractor or Employee? Mod 6 6.3.3 Emails -‐ Move resumes to "Candidates to Review" folder Mod 2.5.1 -‐ Move resumes to "Candidates to Call" folder Mod 2 2.6.12 -‐ Move resumes to "Candidates for Skills Test" folder Mod 3 3.4.13 -‐ Move resumes to "Candidates for Interview" folder Mod 4 4.4.16 -‐ Organizing your email folders Mod 2 2.1 -‐ Send to unsuccessful candidate after transposing to HR101 Mod 2 2.6.10 -‐ Send to unsuccessful candidate after quick assessment Mod 2 2.5.5 Interview (sorted in order of process) -‐ Preparing for Mod 6 6.1 -‐ Your turn to talk Mod 6 6.2 -‐ Housekeeping & Legals Mod 6 6.3 -‐ Scoring the Candidate Mod 6 6.4 -‐ Calling References Mod 6 6.5 -‐ Choosing the best Mod 6 6.6 File Tray -‐ Candidates to call Mod 2 2.6.11 -‐ Interview Scheduled Mod 4 4.4.17 -‐ Labelling the file tray Mod 2 2.3 -‐ Skills Test Scheduled Mod 3 3.4.13 Newspapers Mod 1 1.6.1 Orientation -‐ Additional Bookkeeping Manuals Mod 7 7.4 -‐ Communication Mod 7 7.8 -‐ Finance Mod 7 7.9 -‐ Giving and getting referrals Mod 7 7.11 -‐ HR118 -‐ Orientation Handbook & Admin Manual Mod 7

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 xiii

Index

Index PBS REF -‐ Important Contact Details Mod 7 7.15 -‐ I.T. Mod 7 7.12 -‐ Knock Your Socks Off Service! Mod 7 7.6 -‐ Legal Mod 7 7.10 -‐ Organizing Your Client's Processing Mod 7.7.13 -‐ Purpose Mod 7 7.2 -‐ The Client's Bookkeeping Manual Mod 7 7.14 -‐ Your Purpose Mod 7 7.5 Phone Interview (sorted in order of process) -‐ Anti Discrimination Mod 1 1.4 & Mod 3 3.1 -‐ Greeting Mod 3.3.3 -‐ What you need Mod 3 3.2 -‐ Section 4 -‐ Work history Mod 3.4.3 -‐ Section 5 -‐ Further study Mod 3 3.4.4 -‐ Section 3 -‐ Summary of Experience Mod 3 3.4.2 -‐ Section 6 -‐ Goals & Ambitions Mod 3 3.4.5 -‐ Section 7 -‐ Availability Mod 3 3.4.6 -‐ Section 8 -‐ Final Comments Mod 3 3.4.7 -‐ Giving information about your business Mod 3 3.4.8 -‐ Scoring Mod 3 3.4.9 -‐ Explaining the recruitment process Mod 3 3.4.10 -‐ Inviting candidate to Skills Test Mod 3 3.4.11 -‐ Unsuccessful candidate Mod 3 3.4.12 -‐ Administration after the phone call Mod 3 3.4.13 References Mod 6 6.5 Resources & Templates -‐ Admin HR103 Resume Flow Chart -‐ Admin HR121 Annual Leave Form -‐ AdminHR102 Quick Reference Index -‐ HR101 Phone Interview Mod 3 -‐ HR102 Your Teams Skills Test Results Mod 4 4.18 -‐ HR112 Skills & Speed Test Score Sheet Mod 4 4.3 -‐ HR113 Scoring YOUR performance Mod 4 4.4.5 -‐ HR114 Interview Questions Mod 4.4.4.10 -‐ HR115 Presentation for Candidates Mod 6 6.1.1 -‐ HR116 -‐ Range of Bookkeeping Tasks Mod 6 6.3.1 -‐ HR117 -‐ Contractor's Agreement Mod 6 6.3.2 -‐ HR118 Orientation Handbook & Admin Manual Mod 7 -‐ HR120 Restoring your Skills & Speed Test Data File Mod 4 -‐ SixPac Trading Ltd QB v** Skills Test Mod 4 -‐ HR110a QB Skills Test Paperwork Mod 4 4.1.1 -‐ HR110 QB Skills Test Instructions for Candidate Mod 4 4.1.1 -‐ HR111a QB Speed Test Paperwork Mod 4 4.1.1 -‐ HR111 QB Speed Test Instructions for Candidate Mod 4 4.1.1 -‐ HR112a QB SPT Skills Test Session Report Mod 4 4.1.1 -‐ HR112b QB SPT BR WP5612 Mod 4 4.1.1 -‐ HR112c QB B SPT BR8902 Mod 4 4.1.1

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 xiv

Index

Index PBS REF -‐ HR112d QB SPTSpeed Test Session Report Mod 4 4.1.1 -‐ HR112 QB Skills & Speed Test Score Sheet Mod 4 4.1.1 -‐ HR120 QB restoring Your Skills Test Data File Mod 4 4.1.1 -‐ HR110a SAGE Skills Test Paperwork Mod 5 5.1.1 -‐ HR110 SAGE Skills Test Instructions for Candidate Mod 5 5.1.1 -‐ HR111a SAGE Speed Test Paperwork Mod 5 5.1.1 -‐ HR111 SAGE Speed Test Instructions for Candidate Mod 5 5.1.1 -‐ HR112a SAGE SPT Skills Test Audit Trail Report Mod 5 5.1.1 -‐ HR112b SAGE SPT BR WP5612 Mod 5 5.1.1 -‐ HR112c SAGE SPT BR8902 Mod 5 5.1.1 -‐ HR112d SAGE SPTSpeed Test Audit Trail Report Mod 5 5.1.1 -‐ HR112 SAGE Skills & Speed Test Score Sheet Mod 5 5.1.1 -‐ HR120 SAGE Restoring Your Skills Test Data File Mod 5 5.1.3 -‐ SixPac Trading Ltd SAGE v** Skills Test Mod 5 5.1.1 -‐ TR101 Training Workbook SAGE -‐ Part 1 Mod 7.7.7.6 -‐ TR101 Training Workbook SAGE -‐ Part 2 Mod 7.7.7.6 -‐ TR101 Training Workbook SAGE -‐ Part 3 Mod 7.7.7.6 -‐ TR101 Training Workbook QB -‐ Part 1 Mod 7.7.7.6 -‐ TR101 Training Workbook QB -‐ Part 2 Mod 7.7.7.6 -‐ TR101 Training Workbook QB -‐ Part 3 Mod 7.7.7.6 Resumes -‐ Filing after transposing information to HR101 Mod 2 2.6.11 -‐ Keeping Mod 2 2.2 -‐ Memberships and Qualifications Mod 2 2.6.5 -‐ Organizing your email folders Mod 2 2.1 -‐ Other things to consider Mod 2 2.6.7 -‐ Processing flow chart Mod 2 2.4 -‐ Progress of application Mod 2 2.6.3 -‐ Quick assessment Mod 2 2.5 -‐ Quick Assessment before printing Mod 2 2.5 -‐ Setting up File Tray Mod 2 2.3 -‐ Standards Mod 2 2.5.3 -‐ Summary of experience Mod 2 2.6.9 -‐ Transposing information to HR101 Mod 2 2.6 -‐ What should ring alarm bells Mod 2 2.6.8 -‐ What to look for Mod 2 2.6.4 -‐ Work history Mod 2 2.6.4 & 3.4.3 Workpolis Mod 1 1.7 School Newsletters Mod 1 1.6.2 Scoring YOUR performance -‐ HR113 Mod 4 4.4.11 Scoring YOUR Team's Skills Test Result -‐ HR101 Mod 4 4 4.18 Skills Test -‐ QB (Sorted in order of process) -‐ Preparing the paperwork Mod 4 4.1.1 -‐ Restoring the backup Mod 4 4.1.3 -‐ Saving format of the data file Mod 4 4.1.4 -‐ Keeping Mod 4 4.1.5 -‐ Work completed prior to Mod 4 4.1.6

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 xv

Index

Index PBS REF -‐ Greeting Mod 4 4.2.1 -‐ Explaining the process Mod 4 4.2.2 -‐ Your responsibility Mod 4 4.2.3 -‐ Noticing candidate's behaviour Mod 4 4.2.4 -‐ Asking questions during the test Mod 4 4.2.5 -‐ How much guidance is too much? Mod 4 4.2.6 -‐ What you're looking for is a bookkeeper like you! Mod 4 4.2.7 -‐ Communication Skills Mod 4 4.2.8 -‐ Conclusion Mod 4 4.4.2 -‐ HR112 -‐ Scoring the Test Mod 4 4.4.1 -‐ Benchmark Score Mod 4 4.4.7 -‐ HR113 -‐ Scoring YOUR performance Mod 4 4.4.11 -‐ HR102 -‐ YOUR Team's Skills Test Result Mod 4 4.4.18 Skills Test -‐ SAGE (Sorted in order of process) -‐ Preparing the paperwork Mod 5 5.1.1 -‐ Restoring the backup Mod 5 5.1.3 -‐ Saving format of the data file Mod 5 5.1.4 -‐ Keeping Mod 5 5.1.5 -‐ Work completed prior to Mod 5 5.1.6 -‐ Greeting Mod 5 5.2.1 -‐ Explaining the process Mod 5 5.2.2 -‐ Your responsibility Mod 5 5.2.3 -‐ Noticing candidate's behaviour Mod 5 5.2.4 -‐ Asking questions during the test Mod 5 5.2.5 -‐ How much guidance is too much? Mod 5 5.2.6 -‐ What you're looking for is a bookkeeper like you! Mod 5 5.2.7 -‐ Communication Skills Mod 5 5.2.8 -‐ Conclusion Mod 5 5.4.2 -‐ HR112 -‐ Scoring the Test Mod 5 5.4.1 -‐ Benchmark Score Mod 5 5.4.7 -‐ HR113 -‐ Scoring YOUR performance Mod 5 5.4.11 -‐ HR102 -‐ YOURE Team's Skills Test Result Mod 5 5.4.18 Speed Test -‐ QB (sorted in order of process) -‐ Preparing the paperwork Mod 4 4.1.2 -‐ Restoring the backup Mod 4 4.1.3 -‐ Saving format of the data file Mod 4 4.1.4 -‐ Keeping Mod 4 4.1.5 -‐ Work completed prior to Mod 4 4.1.6 -‐ Explaining the process Mod 4 4.3.1 -‐ Conclusion Mod 4 4.3.2 -‐ HR112 -‐ Scoring the Test Mod 4 4.4.5 -‐ Benchmark Score Mod 4 4.4.8 Speed Test -‐ SAGE (sorted in order of process) -‐ Preparing the paperwork Mod 5 5.1.2 -‐ Restoring the backup Mod 5 5.1.3 -‐ Saving format of the data file Mod 5 5.1.4 -‐ Keeping Mod 5 5.1.5

The Human Resources Manual v4.0 © Pure Bookkeeping 2013 xvi

Index

Index PBS REF -‐ Work completed prior to Mod 5 5.1.6 -‐ Explaining the process Mod 5 5.3.1 -‐ Conclusion Mod 5 5.3.2 -‐ HR112 -‐ Scoring the Test Mod 5 5.4.5 -‐ Benchmark Score Mod 5 5.4.8

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Human Resources

SAMPLE

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 MODULE 4 p1

Preparation | 4.1

4 MODULE 4 – THE SKILLS AND SPEED TEST -‐ QB

4.1 Preparation

You can have the paperwork ready for the Skills and Speed Tests well ahead of any appointments. We

recommend you create two “packs”, one for the Skills Test and one for the Speed Test. You can create any

number of these packs in advance.

Refer to Resources & Templates CD

HR/QB/A – For Skills & Speed Test/QB for

• HR110QBSkills Test Instructions for candidate

• HR110aQB Skills Test Paperwork SixPac Trading

• HR111QB Speed Test Instructions

• HR111aQB Speed Test Paperwork SixPac Trading

4.1.1 Preparing paperwork for the Skills Test -‐ QB

• Print Template HR110 – Skills Test Instructions for candidate

• Print the Template HR110A – Skills Test Paperwork

The paperwork is designed to be printed in colour as some important information has been printed in red e.g. payment methods and “processed” stamp. If you don’t have a colour printer then we suggest you highlight this information in another way e.g. using a highlighter pen or telling the candidate.

After you have printed the Templates

• Cut them into their separate invoices and dockets

• The A4 pages of “cheque butts” don’t need to be separated

• Place all paperwork in a plastic sleeve ready for the candidate

The Human Resources Manual v4.0 © Pure Bookkeeping 2013

4.1 | Preparation

MODULE 4 p2

4.1.2 Preparing the paperwork for the Speed Test -‐ QB

• Print Template HR111 – Speed Test Instructions for candidate

• Print the Template HR111A – Speed Test Paperwork

After you have printed the Templates

• Cut them into their separate invoices

• Place all paperwork in a plastic sleeve ready for the candidate

4.1.3 Restoring the QB Backup

Refer to Resources & Templates CD

HR/A – For Skills & Speed Test/QB for

• SixPac Trading Ltd QB v** Skills Test.zip

• HR120 Restoring your Skills & Speed Test Data File

4.1.4 Saving the Skills & Speed Test data files

Create a separate data files for each candidate at least a ½ hour before the candidate arrives.

File Location of the Candidate’s Skills & Speed Test Folder

Save to the hard drive – this is usually the C drive (or your server)

Refer to the example below for the location of the various folders

Format for Skills Test is Candidate Initials /Skills Test /QB v_ _/date as yyyymmdd

Example of the location and format for the MYOB data file:

∟Administration (Folder)

∟ Human Resources (Folder)

∟ Skills & Speed Tests 20YY (Folder)

© Pure Bookkeeping 2013 The Human Resources Manual v4.0 MODULE 4 p3

Preparation | 4.1

∟ 02 Feb YYYY (Folder)

∟ Candidate Name (Folder)

∟ CI Skills Test QB v** YYYYMMDD (.myo)

∟ CI Speed Test QB v** YYYYMMDD (.myo)

4.1.5 How long do I keep the Skills & Speed Tests?

We recommend you keep the Skills & Speed Test data file completed by successful candidates until after

the interview. If you wish to keep this information permanently we recommend you save the backup of

the data file instead.

You can delete the ones saved for unsuccessful candidates after they have been notified.

4.1.6 Work completed prior to the Skills & Speed Tests

• The assessment of the resume

• The phone interview

• Template HR101

• Preparing the paperwork

• Printing the instructions

• Restoring the backup for the Skills & Speed Tests

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Bookkeeping

CONTENTSPT 1 - HOUSEKEEPING

Pure Bookkeeping 2014 QB CDN | Part 1 – Housekeeping v1.0 i


TABLE OF CONTENTS

How BK I & II is Organized ix

Understanding the wording of BK I & II x

Icons in BK I & II xi

Abbreviations & Explanation of Terms xiii

Supervision and Control xv

My Way xvii

Variations to the Pure Bookkeeping System xix

The Staff Orientation Handbook xxi

Table of Figures xxiii

1 MODULE 1 – GETTING STARTED 1

1.1 Sending Large Files 1

1.2 Remote Access 2

1.2.1 Remote Authorization 2

1.3 Organizing your Client’s Processing 4

1.4 Ordering a Courier 5

1.5 Creating a User Name and Password on your client’s data file 6

QB CDN | Part 1 – Housekeeping v1.0 Pure Bookkeeping 2014 ii

1.6 Information to be emailed to Admin 12

1.6.1 Every Session 12

1.6.2 Every Month (after End of Month processing) 12

1.6.3 Every Quarter (after GST/HST and PST completed) 13

1.6.4 Every Year 13

1.6.5 Ad Hoc 13

Summary of Key Learning – Getting Started 14

2 MODULE 2 –101QB – SESSION CHECKLIST 1

2.1 Session Checklist Introduction 1

2.1.1 What is a Session? 2

2.1.2 Completing the Checklist during the Session 3

2.2 Saving the Checklist 4

2.2.1 File location of Checklist Folder 5

2.2.2 Cleaning up the Checklist Folder 6

2.3 Section A– Administration 7

2.3.1 Hours Worked 7

2.3.2 Taking a Break 7

2.3.3 Personal and Unrelated Business Calls 8

2.3.4 Numbering the Checklist 9

Summary of Key Learning – Section A 10

2.4 Section B – Queries and CTA account 11

2.4.1 Clearing queries with your client during the Session 11

2.4.2 Queries relating to Tax Invoices and Other Queries 12

2.4.3 Client to Advise (CTA) 13

2.4.4 Saving the CTA Reports 15

Pure Bookkeeping 2014 QB CDN | Part 1 – Housekeeping v1.0 iii

Summary of Key Learning – Section B 17

2.5 Section C - Compliance Obligations – GST/HST, PST & Source Deductions 18

2.5.1 Actual GST/HST, PST and Source Deduction Amounts Owing 18

2.5.2 Discussing the Estimated Obligations with the Client 19

2.5.3 Calculating the estimated GST/HST 19

2.5.4 Estimating the PST 21

Summary of Key Learning – Section C 23

2.6 Section D – Miscellaneous 24

2.6.1 Prioritizing work to be done 24

2.6.2 For Future Action 24

2.6.3 Stationery Provided 25

Summary of Key Learning – Section D 26

2.7 Section E - Quality Controls 27

2.7.1 Reviewing the Audit Trail Report 27

2.7.2 Correcting Errors or Omissions 27

2.7.3 Important Actions 28

2.7.4 Saving the Audit Trail Report 29

2.7.5 Cleaning Up of Audit Trail Report Folder 31

Summary of Key Learning – Section E 32

2.8 Section F – Housekeeping 33

2.8.1 Locking the period 33

2.8.2 Data File Naming 38

2.8.3 Restoring your client’s backup 39

2.8.4 Returning the live data file to the client 39

2.8.5 Saving the Backup after processing 40

QB CDN | Part 1 – Housekeeping v1.0 Pure Bookkeeping 2014 iv

2.8.6 Cleaning Up the Backup Folder 41

2.8.7 Important Archive Backups 42

2.8.8 Saving important Archive Backups 42

2.8.9 Clean Up of Archive Backup Folder 44

2.8.10 Archive Data Files 45

2.8.11 Saving the Archive Data Files 45

2.8.12 Keeping Archive Data Files 47

Summary of Key Learning – Section F 48

2.9 Section G - Work Completed 49

2.9.1 Customizing Page 2 of the Checklist 49

2.9.2 What information is included 50

2.10 Section H - Other Matters Attended To 51

Summary of Key Learning – Section G & Section H 52

3 MODULE 3 – END OF SESSION PROCESS 1

3.1 Communication 1

3.1.1 Documenting important communication 1

3.1.2 Discussing the Checklist with the client 2

3.2 Emailing Admin 5

Summary of Key Learning – End of Session 6

4 MODULE 4 – CLIENT’S BOOKKEEPING MANUAL 1

4.1 TEMPLATE 102 - New Client Details Form 1

4.2 TEMPLATE 103 - Client’s Bookkeeping Manual 2

4.2.1 Purpose of the Manual 2

Pure Bookkeeping 2014 QB CDN | Part 1 – Housekeeping v1.0 v


4.2.3 Saving & Printing the Manual 4

4.2.4 Saving Changes to the Manual 5

4.2.5 Updating Version History 6

Summary of Key Learning – Client’s Manual 7

5 MODULE 5 - FILING 1

5.1 Filing Drawers 1

5.1.1 Labeling of the Filing Drawers 2

5.1.2 Expandable Document Wallets 2

5.1.3 Binding Cases 3

5.2 Filing Methods 4

5.2.1 Financials Folder (Binding Case) 4

5.2.2 Accounts Receivable Binding Case 4

5.2.3 Unpaid Receivables 5

5.2.4 Payable Binding Cases 5

5.2.5 Unpaid Payables 5

Summary of Key Learning - Filing 6

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Bookkeeping

CONTENTSPT 2 - GENERAL QUICKBOOKS

Pure Bookkeeping 2014 QB CDN | Part 2 – General v1.0 i


TABLE OF CONTENTS

Icons in BK I & II vii

Abbreviations & Explanation of Terms ix

Table of Figures xi

1 MODULE 1 – GENERAL PROCESSING SYSTEMS 1

1.1 Things that experienced and accurate bookkeepers don’t do 1

1.2 Template 201QB - Chart of Accounts 2

1.3 Using Suppliers when entering “Write Cheques” 8

1.3.1 Generic Suppliers 8

1.4 Payment Codes 10

1.4.1 Transactions on the Bank Statement 11

1.4.2 For all credit cards 11

1.4.3 Other Payment Codes 12

1.5 “Write Cheques” Transactions 13

1.5.1 Commonly used Memorized Transactions 14

1.5.2 Saving Memorized Transactions 14

1.5.3 Adding Actions to the Icon Bar 15

1.5.4 Finding Memorized Transactions 15

1.5.5 Making changes to the Memorized Transactions 16

1.5.6 Transfer between Accounts 17

1.5.7 Stamping “Processed” 18

QB CDN | Part 2 – General v1.0 Pure Bookkeeping 2014 ii

1.6 Purchases/Bills 19

1.6.1 Creating a New Supplier (Vendor) when Entering a Purchase 19

1.6.2 Saving Memorized Transactions for Purchases 22

1.6.3 Entering Invoice Numbers 22

1.6.4 The importance of including descriptions 23

1.6.5 Stamping “Processed” 24

1.7 Non tax deductible transaction 25

1.8 Taxable Benefits 26

1.8.1 What is a Taxable Benefit? 26

1.8.2 Taxable Benefits and Entertainment 27

1.8.3 Taxable Benefits and Motor Vehicles 27


1.9 Part GST/HST and/or PST Expenses 29

1.10 Dates 30

1.10.1 Processing transactions after a closed month 30

1.10.2 Adding transactions after a closed month 30

1.10.3 Dates after Current GST/HST Period 36

1.10.4 Electronic Date Format 36


2 MODULE 2 – INDUSTRY SPECIFIC INFORMATION 1

2.1 Building & Construction Industry 1

2.1.1 T5018 - Statement of Subcontractor Payments Filing 1

2.1.2 Who needs to Report? 2

2.1.3 What do you need to Report? 2

2.1.4 Completing the T5018 Summary 3

2.1.5 What type of work is included in the Report? 4

Pure Bookkeeping 2014 QB CDN | Part 2 – General v1.0 iii

2.1.6 Examples of structures surfaces or sub-surface construction 5

2.1.7 Examples of items not considered structures, surface or sub-surface construction 5

2.1.8 Who is responsible for Filing the Report? 5

2.1.9 Setting Preferences to Generate the Report 6

2.1.10 When is the Report due? 6


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Bookkeeping

CONTENTSPT 3 - BALANCE SHEET

FOR QUICKBOOKS

© Pure Bookkeeping 2014 QB CDN| Part 3 – The Balance Sheet v1.0 i


TABLE OF CONTENTS

Icons in BK I & II ix

Abbreviations & Explanation of Terms xi

Table of Figures xiii

1 MODULE 1 – FINANCIAL REPORTS OVERVIEW 1

1.1 Three Types of Reports 1 1.1.1 The Balance Sheet 1

1.1.2 The Profit and Loss 1

1.1.3 The Cash Flow Statement 1

1.2 The Balance Sheet 2 1.2.1 What is the Balance Sheet? 2

1.2.2 What is the Balance Sheet used for? 2

1.2.3 Why is the Balance Sheet important? 3

1.2.4 Advice regarding the Balance Sheet 3

1.3 Balance Sheet Terminology 5 1.3.1 Assets 5

1.3.2 Current Assets 5

1.3.3 Fixed Assets 5

1.3.4 Current Liabilities 6

1.3.5 Long Term Liabilities 7

1.3.6 Owners’ Equity 7

1.3.7 Retained Earnings 7

1.3.8 Total Liabilities and Owners Equity 7

QB CDN | Part 3 – The Balance Sheet v1.0 © Pure Bookkeeping 2014 ii

Summary of Key Learning – The Balance Sheet 8

2 MODULE 2 – CREATING AND NAMING BANK ACCOUNTS 1

2.1 Creating and naming a new bank account 1

2.2 Creating and naming a new credit card or other liability 3

2.3 Creating and naming loan accounts 4

Summary of Key Learning – Creating Bank Accounts 5

3 MODULE 3 – FIXED ASSETS 1

3.1 Asset Register 1 3.1.1 Saving the Tax Invoices for Assets 2

3.1.2 Assets over $500 3

3.1.2 Assets under $500 5

3.2 Depreciation of Assets 6 3.2.1 What is Depreciation? 6

3.2.2 How is it calculated? 6

3.2.3 Capital Cost Allowances 6

3.2.4 Disposal of an Asset 7

3.2.5 Who is responsible for calculating the Depreciation GJ? 7

Summary of Key Learning -‐ Assets 8

4 MODULE 4 – BANK AND OTHER CURRENT ASSET ACCOUNTS 1

4.1 Bank Reconciliations 1 4.1.1 Using a YELLOW highlighter to mark the statement 1

4.1.2 Processing the remaining transactions 2

© Pure Bookkeeping 2014 QB CDN| Part 3 – The Balance Sheet v1.0 iii

4.1.3 Allocating Unknown Transactions to CTA 3

4.1.4 When the bank account is reconciled (but not cleared) 4

4.1.5 When the Bank Reconciliation is cleared 4

4.1.6 Old Unreconciled Transactions 5

4.1.7 Creating a Memorized Report to Check for Uncleared Bank Transactions 6

4.1.8 Recording Refunds Paid into your Bank Account 11

4.1.9 Filing the reports 15

4.2 Petty Cash 17 4.2.1 When a float is operated by the client 17

4.2.2 Sole Proprietors 19

4.2.3 Cash used from Sales to pay for expenses 21

4.2.5 Companies not using a Petty Cash Float 24

4.3 Undeposited Funds 25

4.4 Payroll Clearing Account 26 4.4.1 To Configure the Payroll Clearing Account for online banking 26

Summary of Key Learning– Bank and Other Current Assets 31

5 MODULE 5 – ACCOUNTS RECEIVABLE 1

5.1 Reconciling Accounts Receivable 1 5.1.1 Potential problems 2

5.1.2 Transactions posted to the Accounts Receivable Account 3

5.1.3 EOY GJ 4

5.1.4 Making sure the transactions are “real” 4

5.1.5 Writing off Bad Debts 6

5.2 Filing the A/R Aging Summary Report 8

Summary of Key Learning – Accounts Receivable 9

QB CDN | Part 3 – The Balance Sheet v1.0 © Pure Bookkeeping 2014 iv

6 MODULE 6 – CREDIT CARDS 1

6.1 Processing Credit Card transactions 1 6.1.1 Processing credit card receipts 1

6.1.2 Processing payments of bills by credit card 2

6.2 Credit Card Reconciliations 5 6.2.1 Using a YELLOW highlighter to mark the Credit Card Statement 5

6.2.2 Processing remaining transactions 5

6.2.3 Processing unclear transactions 5

6.2.4 When the credit card account is reconciled (but not cleared) 6

6.2.5 When the Credit Card Reconciliation is cleared 6

6.2.6 Clearing old unreconciled transactions 7

6.2.7 Creating a Report to Check for Uncleared Credit Card Transactions 7

6.2.8 Filing the reports 10

Summary of Key Learning-‐Credit Cards 12

7 MODULE 7 – ACCOUNTS PAYABLE 1

7.1 Reconciling Accounts Payable 1 7.1.1 Potential problems 1

7.1.2 Transactions posted to the Trade Creditors Account 2

7.1.3 EOY GJ 3

7.1.4 Making sure the transactions are “real” 3

7.2 Filing the A/P Ageing Summary Report 5

Summary of Key Learning – Accounts Payable 6

8 MODULE 8 – GST/HST and PST CONTROL ACCOUNTS 1

9 MODULE 9 – Source Deductions/Payroll Remittances 1

© Pure Bookkeeping 2014 QB CDN| Part 3 – The Balance Sheet v1.0 v

10 MODULE 10 – LOAN ACCOUNTS 3

10.1 Creating and Naming a Loan Account 3

10.2 Reconciling Loan Accounts 4

10.3 Shareholder's Loan Account 5 10.3.1 Debit balances in the loan account 5

10.4 Inter-‐Company Loan Accounts 7 10.4.1 Setting up Inter-‐Company Loan Accounts 7

10.4.2 Processing an injection of funds from one entity to the other: 8

10.4.3 Processing purchases paid for by one entity that belong to the other 8

10.4.4 Reconciling Inter-‐Company Loan Accounts 11

Summary of Key Learning – Loan Accounts 12

11 MODULE 11 – Capital and Operating Leases 1

11.1 Capital Leases 1 11.1.1 Definition of a Capital Lease Agreement 1

11.1.2 How does a Capital Lease work? 2

11.1.3 What are the benefits of a Capital Lease? 2

11.1.4 Who should consider a Capital Lease? 2

11.1.5 Processing a Capital Lease 2

11.1.6 Tax Invoices 3

11.2 Operating Leases 4 11.2.1 Definition of an Operating Lease Agreement 4

Summary of Key Learning – Capital and Operating Leases 5

12 MODULE 12 – EQUITY ACCOUNTS 1

QB CDN | Part 3 – The Balance Sheet v1.0 © Pure Bookkeeping 2014 vi

12.1 Owner’s Capital and Drawings Account – Sole Proprietor 1

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CONTENTSPT 4 - BAS IAS QUICKBOOKS

Pure Bookkeeping 2014 QB CDN| Part 4 – GST/HST/SOURCE MODULE 1 p1

MODULE 1 - GST/HST PREPARATION


TABLE OF CONTENTS

Icons in BK I & II 4

Abbreviations & Explanation of Terms 6

Table of Figures 8

1 MODULE 1 - GST/HST PREPARATION 11

1.1 Due dates 12

1.2 File location of the GST/HST Folders 13

1.3 Cleaning up the GST/HST Folder 14

1.4 Saving the required GST/HST Documents 15

1.4.1 Setting up Memorised Reports 16

1.4.2 Saving the Reports as Memorised 18

1.4.3 Restoring previously saved Memorised Reports 19

1.4.4 Restoring multiple saved Memorised Reports 20

1.5 TEMPLATE 401QB – GST/HST Preparation Checklist 21

1.5.1 Completing the Audit Company File 21

1.5.2 Saving the Audit Company File 21

1.5.3 Asset Accounts 30

1.5.4 Petty Cash 31


1.5.6 Tax Invoice for the Asset purchased 35

1.5.7 Liability Accounts 36

1.5.8 P & L Standard with columns to display by month (Multi Period) 36

1.5.9 Check all Transactions are Correct 38

1.5.10 Profit and Loss with Tax Codes 41

1.5.11 P & L Cash or Accrual 43

1.5.12 Balance Sheet with Tax Codes 44

1.5.13 Tax Detail Reports 47

1.5.14 NTI Transactions 49

1.5.15 Tax Summary Reports – Cash & Accrual 57

1.5.16 Aged Payables 67

1.5.17 Aged Receivables 70

1.5.18 GST/HST Summary and Journals 72


1.6 Processing, Filing and Paying the GST/HST Return 74

1.6.1 Filing the GST/HST "Sales Tax" Report in the "Sales Tax" Module in RA 74

1.6.2 Error when No Tax Code is Entered 76

1.6.3 Printing and Saving the Return 78

1.6.4 Filing the Return 80

1.6.5 File Online Method 80

1.6.6 Pay Now 85

1.6.7 Paying the GST/HST 86


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CONTENTSPT 5 - EOY QUICKBOOKS

Pure Bookkeeping 2014 QB CDN| Part 5 – YE GST/HST/SOURCE DEDUCTIONS MODULE 1 p1

MODULE 1 - GST/HST PREPARATION


TABLE OF CONTENTS

Icons in BK I & II 4

Abbreviations & Explanation of Terms 6

Table of Figures 8

1 MODULE 1 - GST/HST PREPARATION 11

1.1 Due dates 12

1.2 File location of the GST/HST Folders 13

1.3 Cleaning up the GST/HST Folder 14

1.4 Saving the required GST/HST Documents 15

1.4.1 Setting up Memorised Reports 16

1.4.2 Saving the Reports as Memorised 18

1.4.3 Restoring previously saved Memorised Reports 19

1.4.4 Restoring multiple saved Memorised Reports 20

1.5 TEMPLATE 401QB – GST/HST Preparation Checklist 21

1.5.1 Completing the Audit Company File 21

1.5.2 Saving the Audit Company File 21

1.5.3 Asset Accounts 30

1.5.4 Petty Cash 31


1.5.6 Tax Invoice for the Asset purchased 35

1.5.7 Liability Accounts 36

1.5.8 P & L Standard with columns to display by month (Multi Period) 36

1.5.9 Check all Transactions are Correct 38

1.5.10 Profit and Loss with Tax Codes 41

1.5.11 P & L Cash or Accrual 43

1.5.12 Balance Sheet with Tax Codes 44

1.5.13 Tax Detail Reports 47

1.5.14 NTI Transactions 49

1.5.15 Tax Summary Reports – Cash & Accrual 57

1.5.16 Aged Payables 67

1.5.17 Aged Receivables 70

1.5.18 GST/HST Summary and Journals 72


1.6 Processing, Filing and Paying the GST/HST Return 74

1.6.1 Filing the GST/HST "Sales Tax" Report in the "Sales Tax" Module in RA 74

1.6.2 Error when No Tax Code is Entered 76

1.6.3 Printing and Saving the Return 78

1.6.4 Filing the Return 80

1.6.5 File Online Method 80

1.6.6 Pay Now 85

1.6.7 Paying the GST/HST 86


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CONTENTSPT 6 - REPORTING

QUICKBOOKS

Pure Bookkeeping 2014 QB CDN | Part 6 – Reporting v1.0 i


TABLE OF CONTENTS

Icons in BK I & II vi

Abbreviations & Explanation of Terms viii

Table of Figures x

INTRODUCTION xii

1 MODULE 1 –FINANCIAL REPORTS Q1 - Q3 1

1.1 Due Date 3

1.2 File location of the Financial Reports Folder 4

1.3 Saving & Memorizing the Reports 6

1.3.1 Setting up Memorized Reports 7

1.3.2 Saving the Balance Sheet Report 8

1.3.3 Saving the P & L Standard Report 9

1.3.4 Saving the P & L YTD Comparison 10

1.3.5 Saving the P & L YTD Comparison as a Summary Report 12

1.3.6 Saving the P & L to Report Multiple Periods 14

1.3.7 Saving the P & L for multiple periods as a Summary 16

1.3.8 Opening previously saved Memorized Reports 18

1.4 TEMPLATES 604a-c QB –Reporting Checklist Q1–Q3 19

1.4.1 Previous Year EOY GJ 19

1.4.2 Clearing CTA Transactions 20

1.4.3 Customising the Chart of Accounts 21

1.4.4 Audit Company File 22

1.4.5 Reconciling Asset Accounts 23

1.4.6 Reconciling Liability Accounts 24

1.4.7 Balance Sheet Reports - Previously Unreported Periods 25

QB CDN | Part 6 – Reporting v1.0 Pure Bookkeeping

2014

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1.4.8 Changes in previous Balance Sheet Reports 25

1.4.9 Current Period Balance Sheet Reports 27

1.4.10 Profit & Loss Reports - Previously Unreported Periods 28

1.4.11 Changes in previous Profit & Loss Reports 29

1.4.12 Profit & Loss Reports Current period YTD Comparison 30

1.4.13 Check all transactions are correct 31

1.4.14 Profit & Loss Reports Current period YTD Comparison – Summary 32

1.4.15 Profit & Loss for Multiple Periods 33

1.4.16 Profit & Loss YTD Monthly 34

1.4.17 Sending backup and emailing Reports 35


2 MODULE 2 –FINANCIAL REPORTS Q4 1

2.1 Due date 1

2.2 File location of the Financial Reports Folder 2

2.3 Saving the Reports 3

2.3.1 Saving the Reports as Memorized 4

2.3.2 Opening previously saved Memorized Reports 4

2.4 TEMPLATE 604dQB – Reporting Checklist Q4 5


2.4.2 Clearing CTA and NTI Transactions 6

2.4.3 Customizing the Chart of Accounts 7




2.4.7 Balance Sheet Reports - Previously Unreported Periods 11

2.4.8 Check for changes in previous Balance Sheet Reports 12


2.4.10 Profit & Loss - Previously Unreported Periods 14

2.4.11 Changes in previous Profit & Loss reports 15

Pure Bookkeeping 2014 QB CDN | Part 6 – Reporting v1.0 iii

P & L YTD Comparison 16


2.4.13 Profit & Loss Reports Current period YTD Comparison – Summary 18

2.4.14 P & L Standard Modified for Multi-Period 19


2.4.16 Sending backup and emailing Reports 21


3 MODULE 3 –FITNESS REVIEWQ4 1

3.1 Due date 1

3.2 File location of the Fitness Review Folder 2

3.3 Memorizing the Reports 3

3.4 Saving the Fitness Review Reports 4

3.5 TEMPLATE 620dQB –Fitness Review Checklist Q4 5


3.5.2 Clearing CTA and NTI Transactions 6

3.5.3 Customising the Chart of Accounts 7




3.5.7 Balance Sheet - Previously Unreported Periods 11

3.5.8 Changes in previous Balance Sheet Reports 18


3.5.10 P & L Previously Unreported Periods 20

3.5.11 Changes in previous Profit and Loss Reports 21

3.5.12 Current Period P & L YTD Comparison 22


3.5.14 P & L Modified for Multiple Periods 25


QB CDN | Part 6 – Reporting v1.0 Pure Bookkeeping

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3.5.16 Backup and Emailing Reports 26


4 MODULE 4 – FALTERING OR THRIVING BUSINESS? 1

4.1 Faltering or thriving? 1

4.1.1 Signs that a business may be in trouble 1

4.1.2 How to Make your Business a Lean Mean Fighting Machine 3

4.1.3 How to Keep the Cash Flowing in their Business 4


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SAMPLE

© Pure Bookkeeping 2014 QB CDN | Part 3 – The Balance Sheet v1.0

Reconciling Accounts Receivable | 5.1

MODULE 5 p1

5 MODULE 5 – ACCOUNTS RECEIVABLE

Refer to the Client’s Bookkeeping Manual and the Staff Orientation Handbook for any variation to these processes

It has already been explained how important it is that all possible Balance Sheet accounts are reconciled.

It is vital for clients who operate Accounts Receivable, that when the processing is completed, the Accounts Receivable is reconciled. Errors could result in doubling up on an invoice (affecting the income) or inflating the receivables because the payment wasn’t processed correctly.

5.1 Reconciling Accounts Receivable

To print the A/R Aging Summary:

Ø Select “Reports”

Ø Select “Customers and Receivables”

Ø Select “A/R Aging Summary”

To reconcile the Accounts Receivable:

ü Print the “A/R Aging Detail” as of the end of the processing period

ü Reconcile the report with the hard copy of the sales invoices

ü Make sure all the transactions are “real” i.e. that debt is still outstanding

ü File the report in front of the respective sales invoices

QB CDN | Part 3 – The Balance Sheet v1.0 © Pure Bookkeeping 2014

5.1 |Reconciling Accounts Receivable

MODULE 5 p2

5.1.1 Potential problems

If there is a credit in the “A/R Aging Summary” Report:

• A payment may have been dated before the invoice date in error

• A payment was more than the invoice amount

• A transaction was processed against the Customer’s Account e.g. EOY GJ

• It could also be a legitimate credit note that was raised as well

It is important that the reason for the credit is identified and corrected if necessary

Figure 5.1 Reconciling the A/R Ageing Summary Report



MODULE 5 p3

5.1.2 Transactions posted to the Accounts Receivable Account

QB does allow you to post a debit or credit directly to the Accounts Receivable

Account and will then be included in the A/R Ageing Report because it will ask

you for a Customer Name. However it is also possible that the offset credit will

be an account other than an Income Account therefore affecting the P&L.

Posting directly to Accounts Receivable can cause issues and should be avoided. All Sales/Income should be entered using an Invoice or a Sales Receipt Discuss with Admin if you have any concerns.

Example In this example the Debit is posted to the Accounts Receivable and the Credit is the Bank Account.

Posting this GJ will have three consequences:

It will affect your bank reconciliation

It will appear on the A/R Ageing Summary Report without having raised an invoice

No posting will be applied to a P & L Account



MODULE 5 p4

5.1.3 EOY GJ

An EOY GJ provided by the accountant sometimes includes posting transactions to various Balance Sheet accounts including Accounts Receivable.

Admin Instructions – For Office Use Only

Review all EOY GJ’s provided by the Accountants to identify transactions which may affect

Balance Sheet accounts you have previously reconciled such as Accounts Receivable.

Contact the Accountant to discuss the issue and to suggest a way of taking up the GJ

without affecting your reconciliations e.g. If the Accountant intends to increase the

Accounts Receivable you can post a Sales Invoice instead of a GJ giving you the same

results.

Refer to Part 5 – EOY for more information about the EOY GJ

5.1.4 Making sure the transactions are “real”

A common error with the Accounts Receivable is that an invoice is issued but the

payment has been processed as “Deposit” instead of through the Customers via

“Receive Payments”, leaving the previously entered invoice as unpaid. The impact of

that is that the income will be overstated on the P & L because it will have been

credited twice.

An additional problem with using the ‘Deposit’ Screen is that no Tax Code is allocated

to the transaction resulting in incorrect GST reporting.

The purpose of ensuring the Accounts Receivable are “real” is to check that there has

not been a double up of transactions which will overstate the income resulting in

potentially a higher tax liability and also requiring a previously filed GST/HST Return



MODULE 5 p5

to be amended.

It is vital that you ensure that the balance outstanding for each debtor is “real” i.e. the debt is still outstanding at the end of every Session.

To reconcile the Accounts Receivable:

ü Tick off the transactions on the A/R Aging Detail Report against the hard copies

of the Sales Invoices Filed

NOTE: If customers have multiple invoices reconcile the hard copies of the Sales

Invoices against the A/R Aging Detailed Report



MODULE 5 p6

5.1.5 Writing off Bad Debts


Ensure the Bad Debt expense account Item has been set up correctly in the Chart of

Accounts

Periodically the Accounts Receivable should be reviewed in consultation with the client after all attempts at being paid have not been effective and the outstanding invoice allocated to the Bad Debt Expense Account.

Setting up the Bad Debt expense account:

Ø From your Chart of Accounts, choose “New”

Ø Add the “Bad Debt” expense account

Setting up the Service Item linked to the Bad Debt expense Account:

Ø From the List menu go to “Item list”

Ø Choose “New”

ü Name it “Bad Debts” and leave the amount as zero

ü Link it to the “Bad Debts” expense account that you just created

To write off the Bad Debt:

Ø Select “Refunds and Credit”

ü Apply the same customer

ü Choose the Bad Debts Item just created

The tax code on the refund and adjustment must match the invoice for your GST/HST and PST to be correct



MODULE 5 p7

Ø Select “Save and Close”

This customer will now have an outstanding credit waiting to be applied.

To apply the credit from the Customers Navigator:

Ø Select “Receive Payments”

Ø Select the customer with the existing credit

Ø Select the particular invoice and select “Discounts & Credits”

ü Apply the amount of that credit

Ø Select “Done”

Make sure that the receive payments screen has all the information

To check that the bad debt has been processed correctly check the Profit and

Loss Report or Tax Summary Report


5.2 |Filing the A/R Aging Summary Report

MODULE 5 p8

5.2 Filing the A/R Aging Summary Report


If the process for filing the A/R Aging Summary Report differs from these instructions then

document that in the Client’s Bookkeeping Manual before handing over to the assigned

bookkeeper

If working onsite, the report will be filed in either the Customer lever arch folder or in the Financials Folder if there are not many invoices.

Refer to Part 1 – Housekeeping Module 5 5.2.2 for information about creating the Customers Folder and filing the Paid and Unpaid Customers

Refer to Part 1 – Housekeeping Module 4 for information about the Client’s Bookkeeping Manual


Summary of Key Learning – Accounts Receivable | 5

MODULE 5 p9

MODULE 5–ACCOUNTS RECEIVABLE

Summary of Key Learning – Accounts Receivable

5.1 You know how to reconcile Accounts Receivable

5.2 You know how to file the A/R Aging Summary and Detail Report

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