As you probably know, Quality Accounting Solutions specializes in all things associated with QuickBooks. We offer hosting services, QuickBooks classes, bookkeeping and so on, but one of the services we do the most is helping out small businesses calling with bookkeeping emergencies.
Our clients call in to report that “QuickBooks isn’t doing what I told it to do.” What we tend to discover is that QuickBooks is doing exactly what it has been told to do, and the user does not understand that there are right and wrong ways to enter, change and report data in QuickBooks.
Here a few things to avoid when using QuickBooks
1) Do NOT Force the Bank Reconciliation
This means the difference between your statement balance and your QuickBooks balance should be ZERO. If the difference is anything other than zero, do your research, investigate the statement, track down checks and receipts and fix it before clicking on “Reconcile Now.” If you cannot figure out the difference, get help – do not expect QuickBooks to magically make corrections to your balance.
Remember that even a difference of a penny can mean big problems. It could be an error of $5,000 one way and $4999.99 another. Now that is a bigger problem than a penny!!
2) Do NOT Change Transactions In A Closed Accounting Period
Once an accounting period is closed it should not be altered. If the company needs to make any changes to the books, it should be done in the current accounting period. Need some help remembering how to change information correctly? Go to the Company screen menu. Click on “Set Closing Date” and make sure to use the “Closing Date Password” function. This way you (or anyone else) cannot change any information after the closing date without entering the closing date password. Which of course – you won’t do anymore!
3) Do NOT Assume QuickBooks Can Fix Your Bookkeeping
QuickBooks is an excellent tool for any business, but that is all it is. It is a tool. You wouldn't use a hammer to screw in a nail or a paint brush to saw a tree in half. If you do not use QuickBooks correctly, your bookkeeping practices will not improve, your reports will still be wrong, and the fees you pay for accounting & taxes will not improve.
Do not start using QuickBooks without the proper training. With just a couple classes, you should be able to properly set-up your company and utilize the simple bookkeeping functions in QuickBooks. Need to devote your time to other areas of your business? Hire the right people to do your daily bookkeeping, and stay in contact with an accountant regularly to avoid emergency bookkeeping calls to your accountant.