DesignerLink has added QBO Reports to access financial reports in real-time as they are showing in a linked Quickbooks Online (QBO) account. Advanced understanding of these reports will provide a summary of a company’s financial performance and position. The available reports are:

Collectively, these reports offer insight into a company's financial health, including cash flow, operational efficiency, profitability, and long-term stability. Please see below for instructions and best practices on the function and full utilization of these key reports.

The Customer Balance Detail functions as an Accounts Receivable report. An accounts receivable report shows all open invoices on account. It can be filtered by client, and sorted in various ways such as by client, date, amount, that gives designers a clear idea of what money is owed by their clients that should be available for collection. Please refer to the Total Amount and Total Open Balance at the bottom of the report for what is owed to you by all clients.

The Unpaid Bills report is akin to an Accounts Payable report that shows all open bills for product on account that have been synced to QBO or were created in QBO. The report shows the total of each open bill as a line item, as well as columns for the vendor, the date, and remaining balance if any deposit is already applied. Like other DesignerLink reports, sorting can be applied to each column and you're able to filter select columns like the Vendor Name on your bills. Please refer to the Total Amount and Total Open Balance at the bottom of the report for what is due to all of your vendors.

A financial statement that provides a full scope of revenue against cost and itemized expense totals by category. This statement helps analyze sales, costs, spending, and margins. Although your Quickbooks account defaults to a preselected accounting method which is how you file your reports and returns, you can toggle between the two different methods for various snapshots of business performance. If you're unsure what accounting method is used for your tax returns, you can confirm with your Account Manager or accountant.

Your different account categories on your P&L (Profit and Loss) are Income (revenue), Cost of Goods Sold (COGS), and Expenses. Each account category is collapsible to easily reference the total of each.

Gross Margin is calculated by subtracting COGS from Income and then dividing by Income and multiplying by 100. Gross Margin represents the profit remaining after deducting the COGS.

Your Net Margin is calculated by subtracting COGS and Operating Expenses from Income and then dividing by Income and multiplying by 100. Net Margin reflects the profit remaining after deducting all expenses including COGS, Operating Expenses, and Other Expenses/Income.

Your margins helps you target which parts of your business's strategy/performance are working and where changes might have to be made to increase profitability.

A financial statement that shows what the company owns and what the company owes as of any given date. This report is helpful to principles for planning, knowing the company’s worth, and what they would potentially walk away with should the business “close down tomorrow”. Just like your P&L, you can toggle between the two different methods for various snapshots of business performance. Your different account categories on your BS (Balance Sheet) are Assets, Liabilities, and Equity. Each account category is collapsible to easily reference the total of each.

Assets are everything a company owns that has value and can be used to generate income. This includes:

Think of assets as resources the company controls.

Liabilities are what a company owes to others—its financial obligations. This includes:

Equity represents the owner’s share of the business after liabilities are subtracted from assets. It includes:

Equity is what’s left for the owners if the business paid off all its debts.

You can use these accounts to get some insight into the health of your company. Are assets greater than liabilities? That suggests positive net worth and financial stability. Can the company cover its short-term obligations? Look at current assets vs. current liabilities to assess whether the business can pay its bills. This information will help you evaluate risk and what flexibility you have for decision making!

The Financial Summary Report shows your top 5 highest expenses for Year to Date which can also be found on your P&L. By highlighting your highest expenses, you're able to identify any potential cost saving measures to improve business performance.

The Key Financial Ratios shown below your expenses are performance metrics to help you measure efficiency across your operations. We compare your ratios against Industry Benchmark Standards to guide you where peers in the interior design have seen success.

Gross Margin: The percentage of revenue left after deducting the COGS. A higher margin means more revenue is available for covering operating costs and generating profit. The formula is ((Total Income - COGS) / Total Income) x 100

Design Fee % of Revenue: The portion of total revenue generated from design fees. This helps track how much revenue comes from design services and monitor service profitability. The formula is (Design Fees / Total Income) x 100

Overhead %of Revenue: The percentage of total expenses over total revenue. This is useful for assessing how efficiently the business manages its operating costs. The formula is (Total Expenses / Total Income) x 100

Net Income % of Revenue: The percentage of total revenue remaining as profit after all costs and expenses. This is your key measure of overall profitability. The formula is (Net Income / Total Income) x 100

QBO Reports Full Access: This access includes full access to the QBO reports listed above including the P&L and BS. This permission should NOT be granted to anyone unless specifically advised by the principal/president of the account.

QBO Reports Limited Access: This access does not included viewership of the P&L and BS, only the Customer Balance Detail (AR) and Unpaid Bills (AP). This permission is granted to employees giving them access to track unpaid invoices and bills but are NOT privy to the financial performance or status of the company.