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he task of entering historical data as of your start date is time-consuming, but there is no way around it. In 2, I acknowledged that in choosing a start date, a major consideration for many businesses is the amount of work involved in entering historical data. The more recent your QuickBooks start date, the less historical data you are required to enter. On the other hand, the more historical data you have at your disposal, the more information you can use for creating graphs, charts, and budgets.

dv a*(v)B(v).

are international, cultural differences between the groups may become an issue. Even when the alliances are domestic, there is the risk of issues aris ing from differences in focus. Industry or military groups may focus on the bottom line, while academic groups may focus on the underlying science. On balance, however, the potential of gain through strategic alliances far outweighs the risks.

(7.138)

Entering past sales and accounts receivable Entering past accounts payable information Entering historical bank transactions Entering opening balances for asset and liability accounts tracked on your company s Balance Sheet

[B, Bt] =

dv la(vW = 1,

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The integrity and reliability of your QuickBooks accounting system depend on the accuracy of the historical data that you enter in the system. Its scope and exibility as a tool for budgeting and analysis also depend on the start date you choose and how much historical data you have entered. When entering historical data in the system, you are always entering all transactions from the start date to the current date. Assume that you choose January 1 of the current year as your start date, and today is March 15. You would enter all transactions as of January 1 through March 15. You then have records identical to those that you would have had if you had actually started using QuickBooks on January 1. If you want to compare your company s performance in the current year to its performance in the prior year, you would have to enter all transactions for the prior year to generate comparative reports, charts, and graphs.

(7.139)

While the level of nancing and the performance of the biotech market will continue to uctuate, the pressure on biotech companies to innovate in the marketplace will be unrelenting In the United States, as in many of the de veloped countries, the average age of patients is increasing This is forcing the health-care industry to increasingly focus on the treatment of chronic medical conditions that rely on long-term pharmaceutical therapies How ever, the current US health-care system of Medicare supplemented by per sonal insurance won t be able to accommodate the current rate of pharmaceutical cost escalation One approach to cost containment in health care is to limit the pro t margins of the pharmaceutical rms, which will decrease funding available for drug discovery and development.

as it should. We can also check that [Y(17), yt(17')] combination of B(v),

= 8(17 - 17').

Compiling and entering historical information is labor intensive and requires thought and familiarity with the business. How far back in time should you go How much historical information is enough If you enter the data indicated at the end of this chapter, you can rely on your accounting system to help you with four questions that every small business must be able to answer: Question No. 1: Do I have suf cient working capital to meet my liabilities What is my current bank account balance QuickBooks calculates accurate balances for your bank accounts and can be used to reconcile your bank statement to the account balance shown on the QuickBooks system. Question No. 2: Am I making a pro t QuickBooks gives you an accurate year-to-date Pro t and Loss Statement at any time updated as of the very last transaction entered into the system. Question No. 3: Are my payroll and sales tax liabilities current No small business can afford to fall behind in paying its payroll and sales tax liabilities. 2 gave you a feel for the different types of penalties imposed on late lers and how quickly they mount. With QuickBooks, sales tax and payroll records are a mouse click away if you have properly entered the relevant historical data. Question No. 4: Do I have suf cient cash ow to meet my current obligations With QuickBooks, you can generate reports as to your accounts receivable and accounts payable at any time to see what your customers owe you and what you owe to vendors.

Writing y(17) as a linear (7.140)

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