Doug:
From Rea & Associates studio, this is unsuitable, a management and financial services podcast for entrepreneurs, tenured business leaders, and others who are ready to look beyond the suit-and-tie culture for meaningful, measurable results.
I'm Doug Houser. On this weekly podcast, thought leaders and business professionals break down complicated and mundane topics and give you the tips and insight you actually need to grow as a leader while helping your organization to grow and thrive. If you haven't already, hit the subscribe button so you don't miss future episodes. And if you want access to even more information, show notes, and exclusive content, please visit our website at www.reacpa.com/podcast and sign up for updates.
If you could work smarter and not harder, wouldn't you? I know I would. I know I'm always looking for ways to maximize my time to get more done as efficiently as possible. That's why I'm looking forward to talking to today's guest. Jillian Carpenter is an associate on Rea's Client Advisory Services team, where she spends a lot of time with technology. Today, she's going to share some of the many virtues of QuickBooks Online with us and ultimately, why she enjoys working with the program.
She's also going to throw in a few tips and best practices for those of you who are already using the program. Welcome to unsuitable, Jillian.
Jillian:
Thank you for having me so much.
Doug:
I think this is such an important topic. We have so many, obviously, clients out there that use QuickBooks or maybe they're currently using desktop and haven't yet moved to online and certainly should, and we'll talk about that, but talk a little bit first about how you became such an expert in this area because boy, your skills are in great demand. I know most all of my clients that do use QuickBooks, they said, "Boy, I wish we had an expert who could really help us with this." And I say, "You know what? We've got just the person and just the team."
Jillian:
Well, thank you.
Doug:
So talk about your journey to where you are.
Jillian:
Sure. So when I first started at Rea, one of the first things the cast teams makes us do is become a Pro Advisor, get certified in QuickBooks Online and desktop: both, because we work with both kinds of clients. But with online, we became a Pro Advisor, and when you get that, you get the support back office, which is really, really nice, but then all of my clients were all online. So from working in it daily, in and out, that was really how I got kind of to where I am but then introduced COVID. And that was really where the need for online really boomed, and people started ... with the desktop, you can only be at the office or wherever you have that license. With online, it's Cloud-based. So when COVID hit and people were starting to work remote and offline and at home and really anywhere but around people at the office, there was a need for people to start transitioning more to online.
And with that, I just started doing conversions from desktop to online. And that became my bread and butter, during COVID, which was, "Hey, we need this conversion done. Hey, we need this conversion done." So that was just kind of how I learned my way through it. Really, it was all new to me. And then, the more you do it, the more practice you get, the better you get, and it just all comes from the experience of, "Hey, can you do this conversion for me?" "Sure." And just kind of figuring it out.
Doug:
That's awesome. Yeah. And I know we've had ... the other thing, besides COVID, we've experienced a number of clients that are perhaps looking at transitions in the next few years and it may be bringing in the next generation or next level of management and they've got this desktop version and they want to be able to look at this stuff from anywhere, right, because maybe they want to take a little more time away or get more people involved, have that flexibility. And online can do all of those things for you, correct?
Jillian:
Right. Yeah. So one of the best things about online is that it's Cloud-based. So there is an app: you can go be in Mexico and check your real-time financials out while you're out with the family. The other thing is that they don't have licenses. You don't have that multi-user issue. You don't have to flip back and forth. 10 people can be in it at the same time, as long as they have admin or user rights to that file, which is nice.
Doug:
Yeah. That's awesome. So before we get into the specific benefits, maybe the online and the conversion and all that, in your view, where do you find ... what type of client profile or company profile works best with QuickBooks Online and that type of scenario?
Jillian:
So with what my team does specifically, we gear more towards professional services. So that's kind of what I know mostly but really, it is good for any small to medium-sized businesses because it can do payroll. It can manage and pay your bills directly from QuickBooks. You can connect to the bank, which is something I wanted to talk about. You can accept payments directly through QuickBooks, too. It can kind of work for all different things but as far as what my team does specifically, we work with professional services.
Doug:
Yeah. And obviously, we've got the whole team ... you're part of our cast team. I mean, this is, really, your expertise. This is what you do and help folks get the information so that they can run their businesses, right? You make it as efficient as possible.
Jillian:
And it's always in real-time, which is nice.
Doug:
Yeah. That's awesome. So, okay, talk about this process of converting from desktop to online.
Jillian:
Sure.
Doug:
And we've talked about some of the advantages, but how does one go through that process?
Jillian:
So the way it works is typically, the client would send us a backup of their file, their desktop file. We would go through, check the versions before we tell them we will do it. There are a few back things that we check such as certain reports because non-posting items typically don't go, so things like sales orders, purchase orders, that type of stuff. Payroll will go as well. It's a little bit more of a hiccup that you have to kind of workaround, but it all does transfer. It just depends on what it is and how it's going to transfer because online is a little bit different set up than desktop. So we look at that and then, we ask them for backup, and then, we tell them to stay out of it for a day or two.
And then, they're like, "Oh." So we try to plan it around ... a lot of times we have ... I did one a few months ago where they closed for the week. I don't remember what for, but it was a manufacturing company. They closed for the week and we were like, "Perfect, we'll do it then." So we kind of try to base it around our clients' needs and when they're going to be in and out of the office. Now, during the summer, we're basing it around vacations.
So then, I go in, check all the reports and then, I just ... there's a couple of buttons you have to push and then, it sends it. And once it comes through, I go through and I check trial balances, P&Ls, AP, just to make sure everything transferred properly. And I typically check a year, backdate, just to make sure as well. And crossing my fingers, I haven't had any hiccups yet, so that's been lucky.
Doug:
Yeah. That's great. Now, talk about some of the other benefits. I mean, we mentioned some but say, tying into other apps and things like that, if you're really wanting to get the most benefit out of it, say, in terms of AP and other things like that, inventory payroll. What else can it do?
Jillian:
So it really has ... because it is Cloud-based, you can really connect any type of app. One of the biggest things we use is bill.com consistently with it because bill.com will sync directly with QuickBooks Online and actually pay the bills. So the bills get sent to bill.com and then, we go in, we hit our little buttons to accept and review them. And then, every night, I think at 8 p.m. specifically, it syncs with QuickBooks Online and it will hit all the correct general ledgers for us. And then, bill.com actually sends that bill payment, so that's one of the really nice features. Another one that I'm really adamant about that I don't think enough people utilize is the banking feature.
Doug:
Okay.
Jillian:
So there is a banking feature on QuickBooks Online that directly connects to your banks to your credit cards... you can even connect it to a PayPal, and it will pull in every day. And I think it syncs twice a day, all of your transactions for the day. So you can directly add them right into your QuickBooks and have, like I was saying, real-time financials and have it matched properly right then and there, which is one of my favorite aspects of it.
Doug:
And then, can that flow right into your GL account? [Crosstalk 00:09:33].
Jillian:
Yes, yeah. So when it comes in, the banking feature ... actually, it kind of has a little bit of an AI to it, like artificial intelligence. So it will start to recognize kind of this payment for, let's say, Frontier comes in every day of every month and you always put it to utilities. It will automatically start to replicate that, month to month, and get smarter to where you can just hit "add" and not even have to look at it sometimes. I mean, as for me perspectively, I look at it just because that's my job. But as the client, they don't have to go out and look at that. And you can even set rules. So anytime $350 comes in from Frontier, it automatically adds it, never even comes in your feed.
Doug:
Wow. Yeah. That's really cool.
Jillian:
Mm-hmm (affirmative).
Doug:
And the other thing I think about all of this is the security and the backup that you have here, too. I mean, we see this become ransomware and hacking and small- to middle-market companies becoming more prevalent. And if you're in the online version, I mean, you're backed up very frequently, correct?
Jillian:
Every two hours. Every two hours, it's running a backup of their QuickBooks, and they are actually held to the same financial standards that any financial institution is in regards to banking and security, and privacy. So I know sometimes that makes clients a little nervous, but there's really no need to be because they are held to those same standards.
Doug:
Yeah. And I know having come from the banking industry, those standards are very high in that. So that if something does happen, obviously, you're much more protected than if say you're on a traditional, old desktop or you've got something on your own servers. I mean, good luck trying to deal with that, right?
Jillian:
Yep, yep.
Doug:
Yeah. That's crazy. So we talk about getting this information in real-time and having these replicated transactions and all of that. What does that do? What does that allow you to do for the clients, in terms of their financial information and helping them kind of run their business? That's the ultimate end goal here, right?
Jillian:
Right. So being that it's real-time, that's one of our biggest things because the other thing is that we have access to their books, obviously, so they can call me and be like, "Hey, I don't think this is right. Can you look at this right now?" And I can instantly go in, look at it, and adjust it. And their financials, as I said, they can go run their P&L and it'll be 100% real-time, exactly what they're looking at.
Doug:
Yeah. That's awesome. So rather than being so much after the fact, we see a lot of this with certain clients that they don't get current financial information until four to six weeks later.
Jillian:
Right.
Doug:
And by then, obviously, it's no longer current and you don't have time to pivot and change things with regard to your business. So that's super helpful. What about the end of the month when we go through a closing process, bank recs, all those things, what does all of this do by having the online version here?
Jillian:
So bank recs ... actually, depending on the bank, QuickBooks Online has started to where they actually will upload the statements directly into QuickBooks Online for you. Before we would have to go out to the bank, get the statement, print it or save it, or however, you want to do it to go off of. Now, the larger banks: Chase, PNC, those types of banks, and even the littler ones are kind of getting into it to where they will ... they have a connection with QuickBooks Online, and the statement will send directly to QuickBooks Online. So when we go in to do the reconciliation, we just hit "View Statements" and it's already there. It brings up this nice little window and then, it has another window for the reconciliation. And we can just write down the line.
But again, with that banking feature, if you are keeping up with that or maybe for my team, some of the people we work on, we do their daily transactions for them. So it's kept up day-to-day-to-day. So when we go in to do the reconciliation on those clients, all we have to do is put in the ending balance, and it's already reconciled because we've been keeping up with it on the daily, using that banking feature. So for me, it's all about efficiency. That bank rec that maybe took 30 minutes to an hour before, maybe now it takes 10, 15 minutes if that.
Doug:
Yeah. And so there's a lesson here, too, right? If you keep up with this as you go, it's much better, much more efficient than dealing with it after the fact. I know we've run into a few reviews that we're doing say, after a year-end. "Oh, we haven't posted transactions or done anything for three months."
Jillian:
Right.
Doug:
And then, it's a big mess, obviously, to try to figure out and remember all that.
Jillian:
All that things. Yeah. Yeah. That's what's nice, is because it's still fresh in your mind if something weird happens. So then you're like, "Oh yeah, that's what happened." And you can instantly fix it versus in three months, four months down the line, when you're doing it and being like, "Hmm, what happened again? I don't remember." And then, trying to wiggle your way through it. So for me, it's all about efficiency.
Doug:
Yeah, exactly. If you make it more of a repetitive process-driven thing here, you can, again, focus the time on what the information is saying and running the business rather than dealing with trying to get correct information in the first place.
Jillian:
Right, right.
Doug:
Yeah. So are there new things coming down the pike with QuickBooks Online? Have you gotten any insight as to where all of this is kind of head as we look to the future, whether it's just next year or maybe even looking further ahead, like five years out? What do you see with all of this?
Jillian:
Truthfully, I see more people going online. With COVID and everything, I think the structure and the way people are working have changed drastically, and I think that QuickBooks Online has done a really good job of keeping up with the demand for that. They've changed the way their support system works. They used to only have support certain hours. They're there all the time now, so if there's something that's beyond us, we can reach out to them any time, which is really nice. And I think, just in general ... the apps. They keep building apps, and everything is becoming more and more technologically based. So like I said, they've just been doing a really good job keeping up with those apps that can work into their system and working on building out more things just for their online features.
Doug:
So in other words, having other ... whether it's different, say ... I know we have clients that use different timekeeping and payroll-type of apps and other things like that. So it's more likely than not that as we move forward, there'll be more and more of those things that will kind of integrate easily with QuickBooks Online?
Jillian:
Yeah, yeah. Right now, I'm just going to use Paychex, for example, because that's something that I literally just was doing before I came here. Paychex before, it didn't really sync well, and you had to go in and manually make the journal entry, but now they've kind of changed to where they put the journal up on Paychex side, and then, you can do it there or you can wait, but you just hit "Send Journal," is what it's called. And it instantly goes. All you have to do is map at one time and then, when you hit that button, it just flows right into your QuickBooks, and it hits all the right GLs and again, it makes everything so much more efficient because you're not going in and being like, "Okay, look at the payroll journal, enter this year. Look at the cash requirement, enter this year." You've already mapped it, and it's good to go after that one time.
Doug:
Yeah. That's really that's cool stuff.
Jillian:
Mm-hmm (affirmative).
Doug:
Give us another ... I know you've got another online pro tip in terms of something to utilize with QuickBooks Online. What is that?
Jillian:
Sure. So as far as ... you had asked previously about month-end and that type of thing. One of the things that I stress to my clients, again, is "Ask My Accountant." That is a general ledger account that QuickBooks Online already has hardwired into their chart of accounts, and it is really good for when clients get stumped and don't know if they're doing their own books and don't know where to put anything. Throw it in "Ask My Accountant" because come the end of the month, when I'm looking at that profit and loss, if I see something in there, it's going to stick out like a sore thumb and make it super simple for me to go in, look at what it is. If I need to have a discussion with the client, exactly what it was for what it was about and really categorize it correctly at that point.
Doug:
Yeah. That's cool. That's a great feature clients should be aware of. So Jillian, as we wrap up here, talk about, kind of, the breadth of services that you and the CAS team can provide. I mean, say somebody just wants us to come in, perhaps at month-end, and sort of have another set of eyes or can you do the whole gamut and run everything for them? Where does all that fall?
Jillian:
Sure. So as far as the CAS team is concerned, it really is on a client-to-client basis. We do things such as consulting. We do outsource services, obviously, such as daily transactions, AP, AR. We do month-end support. We will go in sometimes, watch a process, and kind of help, maybe, redevelop it a little bit to make it more efficient. We go out, and we do training. Really, anything the business might need help with is something that our team can step in and help with.
Doug:
Yeah. I think that flexibility is great because every company might have different needs and different levels that they want in terms of assistance with regard to that, and by using you and our cast team is ... we've always got somebody that's available to help, even though, say, you may regularly work on a specific client, for example, if you're on vacation. That's okay because we've got other team members that can do it for that period of time.
Jillian:
And our team's really good about cross-training, too. So if specifically, there's someone who's in, we always definitely have two people who can handle it for that specific reason. Another thing that we do is last year, I went in, and I just covered a maternity leave, and that was all they needed us for. And then, we were out. So it's kind of just dependent on the client and what their needs are at the time.
Doug:
Yeah. And I think that's great, just to have ... it's well worthwhile for the client to talk to us about this because if for no other reason to have that ... this situation where, hey, somebody needs to jump in and we've got the resources to be able to handle that. So that's important.
Well, that's great stuff. Thanks, Jillian, very important and I think, certainly, as we move forward, this type of technology is only going to become more and more vital, and to have companies think about using an outside resource to help assist with this process, and you're the best at it.
Jillian:
Thanks. Right, right.
Doug:
Yeah. So thanks again, Jillian. Great to have you.
Jillian:
Thank you.
Doug:
And I'm sure we'll look forward to having you on again.
Jillian:
Thank you so much.
Doug:
So if you want more business tips and insight, or to hear previous episodes of unsuitable, please visit our podcast page at www.reacpa.com/podcast and while you're there, sign up for exclusive content and show notes.
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I'm Doug Houser. Join us next week for another unsuitable interview with an industry professional.
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Views expressed on unsuitable on Rea Radio are our own and do not necessarily reflect the views of Rea & Associates. The podcast is for informational and educational purposes only and is not intended to replace the professional advice you would receive elsewhere. Consult with a trusted advisor about your unique situation so they can expertly guide you to the best solution for your specific circumstance.
