One of the best tools that you can use as a business owner is an accounting software to keep track of your balance sheet, profit and loss, A/R, A/P, expenses, payroll, sales and sales tax, etc. QuickBooks is a powerful accounting system to daily to manage your business.
It is important to have correctly trained personnel to input data, run reports, etc. The reports should be reviewed regularly to make shifts in your business decisions.
What is QuickBooks?
QuickBooks is one of the most used management programs for small businesses in the United States. It is a small business management tool that offers payroll, accounting, payments, and time-tracking tools developed and marketed by Intuit. QuickBooks products are geared mainly toward small and medium-sized businesses as well as products for the self-employed.
If you are a start-up business, let us help you with the setup of QuickBooks? Or, if you are an existing business with QuickBooks, we can review your current setup to make recommendations for improvement.
We can work with your office on setting up these features: preferences, banking, customers, lists, chart of accounts, balances, etc. Getting this right from the start is the basis of the information going forward, so you need to make sure it is accurate.
As a small business owner or employee, you need to use a management software that will help you with your accounting, payroll, accounts receivable and payable, invoicing, sales, expenses, tracking daily transactions, sales tax, and financial reports.
We can offer training at your office for you or a staff member on how to maximize using QuickBooks in your office. We can customize the type of training you or an office staff needs from start-up, beginner all the way up to the advanced techniques and strategies.
Most Common QuickBooks Mistakes
Incorrect chart of accounts
If your chart of accounts is not set up correctly, you will not be able to use the information properly to put together your financial statements.
A chart of accounts is a list of the categories you use to record your income, assets, liabilities, receivables, and operating expenses.
Using accrual instead of cash-basis accounting
When setting up your QuickBooks, talk with a CPA to determine which method is best for you – accrual or cash-basis accounting. QuickBooks automatically uses an accrual system. A cash-basis accounting system is a little more straightforward and easier to see your cash at any time.
Same item appears in two places
The same item appears in two different places, or you end up counting it twice. If you purchase an expense with a credit card, and then you input it as an expense. When the monthly credit card statement comes in, you count the same transaction as a second expense. You’ll have a double charge.
All of the transactions need to be recorded in order to reflect the reality of your finances and see an accurate picture of the health of your business. Make sure you record every transaction the day or the week that it takes place.
Incorrect or missing adjustments
You need to adjust journal entries at the end of the year, quarter, or month with an accrual basis accounting setup. The adjustments make sure your statements reflect the transactions of expenses and revenues. Adjustments can be tricky, especially with interest paid on business loans, etc.
Losing your old records
If you make changes with your accounting platforms, remember to export your files in a timely manner so you have access. With some systems, you lose access when you cancel or switch.
Joshua Wilson, CPA – Certified QuickBooks ProAdvisor
Joshua Wilson, CPA is a Certified QuickBooks ProAdvisor. A Certified QuickBooks ProAdvisor is a certified independent accounting pro who can provide strategic insights to drive small business success.
QuickBooks is a valuable tool to help you manage your small business. Let us help you maximize your abilities to use QuickBooks properly in your office.
Joshua Wilson, CPA, PC is a full-service public accounting firm that specializes in accounting, tax preparation, tax planning, & business development for small businesses in Winder, GA, and the surrounding areas. Give Joshua a call today to set up a consultation at 770-856-1309 or email him at email@example.com.