Expert Analysis - Free Versions

Expert Analysis

Overview

Expert Analysis is a product developed by Sageworks and co-marketed with Intuit.  It provides an automated way to look at the results of the business based on the information contained in the QuickBooks data file. 

 

The result of using the free version of this tool is a report of approximately 5 pages in length that deals with 6 areas of analysis: Liquidity, Profits and Profit Margins, Sales, Borrowing, Fixed Assets, and Employees.  The commentary provides a starting point to understanding what is happening in the business.  It is typically most effective when used in conjunction with a business consultant to increase revenue, improve cash flow, and result in growth for the business.

 

Version 2002

 

This feature was first available as a true add on product on the Premier 2002 CD as a software package that uses QuickBooks data through an Excel interface to prepare various analysis reports based on the industry.  Although it was included on the program CD, it must be installed individually.  This is an add-on software package so to use it choose Start (from Windows) > Programs > Expert Analysis.  From within QuickBooks, on the report pull down, choose Reports > Expert Analysis > then the appropriate date range > create each report and click on the Excel button (be sure the advanced tab is set to send header information to the page set up) for each report.  From within the add-on software, you will choose the industry and answer several questions, then import the information from the spreadsheets you have left open.  The result is a report that provides feedback on key financial aspects of the business.

 

Version 2003 and higher

 

Free with Premier Version 2003 and higher – This process has been streamlined by including the product as an integral part of the software itself.  This eliminates the need to install it, and eliminates the need to use Excel as an interface. 

 

QBRA-2004: Company > Planning & Budgeting > Expert Analysis Tool > Continue

 

Once the process is started, the next step is to choose the appropriate industry.  The industry will be important for comparison purposes.  The benchmarks (or industry averages) represent two equally weighted factors:

    1. An average of industry peer data pulled from external sources such as Risk Management Associates (RMA), Financial Research Associates, and the Almanac of Business and Industrial Financial Ratios.

    2. The expert judgments of a team comprised of CPAs, bankers, and Sageworks personnel who look at each industry category and assign "normal" averages for each industry benchmark.

 

QBRA-2004: Company > Planning & Budgeting > Expert Analysis Tool > Continue > Next

 

The next choice is what periods will be compared.  Monthly, quarterly or annual choices are possible.  The decision will typically be the result of the frequency the Accountant has confirmed the balances appear to be accurate on the financial statements.  It is also possible to choose to have the comparison be to the prior period or to the same period the prior year.

 

QBRA-2004: Company > Planning & Budgeting > Expert Analysis Tool > Continue > Next > Enter the company name and choose the industry > Next

 

 

 

Choosing the sales range and number of employees will provide more accurate analysis information.

 

QBRA-2004: Company > Planning & Budgeting > Expert Analysis Tool > Continue > Next > Enter the company name and choose the industry > Next > Enter the report range and period for comparison > Next

 

 

The expert analysis tool will then automatically retrieve the financial data from the QuickBooks file.

 

QBRA-2004: Company > Planning & Budgeting > Expert Analysis Tool > Continue > Next > Enter the company name and choose the industry > Next > Enter the report range and period for comparison > Next > Enter sale range and number of employees > Next

 

 

 

Once the tool has retrieved the data from the QuickBooks file, a recommendation will appear to designate the amount of officer salary.  Then generate the report.  A sample report (without any dollar results for the period) is available as a PDF.

 

For an additional fee, a more robust, upgraded product is available.  It provides a rating scale from 1-100 (rather than the five star approach in the free version). The upgrade has additional information including ratio comparison of the data file to industry specific averages through the internet and a Word interface to permit customizing the report by adding the business letterhead and editing the text for each section based on additional information known by the preparer of the report.

 

 

More information on this topic

Analytical Review

Financial Analysis Add-Ons