QuickBooks is an accounting program package that is designed to manage the needs of every small to medium-sized business, such as managing payrolls, bills, inventory, sales, etc. It offers software solutions for both on-premises and cloud-based accounting applications. It’s the accounting program used most. The package develops solutions according to the industry’s need and includes tools for marketing, services, product, and supplies for merchants and training solutions.
QuickBooks offers different package options, depending on the needs of you and your company.
A contractor version of the software is available. It is built to meet every kind of contractor; therefore, the do-it-yourself accounting is not as easy, and many users fall prey to many mistakes.
Managing payroll is a difficult task, and any business can benefit from outsourcing this time-consuming process to a payroll firm. As local, federal, and state laws regularly change, managing payroll can become a complicated task, and businesses can be negatively affected by errors resulting in tax penalties.
Not Reconciling Accounts
It is necessary to reconcile all of your accounts. You need to reconcile your savings and checking accounts and taxes, loans, and mortgage escrow accounts. Otherwise, you will not know if the money in the business account register is correct. Reconciliation is an important step in bookkeeping and must be done regularly.
Using Too Many Accounts & Sub Accounts
While QuickBooks offers one advantage in creating further sub-accounts of accounts, this can also complicate the system and be very time-consuming. This should be avoided, if possible, especially in the case of small companies where one parent account is adequate.
Not Backing Up The Company Data
To prepare for the unpredictable, it is necessary to back up the Business QuickBooks files every day. This will prove to be immensely helpful in case of a computer crash.
The balance sheet and P&L statements have valuable insights regarding the business’s health. Reviewing these statements can help catch mistakes before they cause any financial repercussions. Thus, they should be checked regularly.
Not Setting Sales Tax Preferences
You can set up your sales tax preferences if your business makes sales subject to sales tax. To do this, go to Edit → Preferences → Sales Tax icon → Company Preferences → Owe Sales Tax and then choose from As of Invoice Date or Upon Receipt of payment.
Booking Loans Improperly
Not Creating User Permissions and Passwords
Suppose multiple users are accessing your QuickBooks file. It is necessary to give each of them separate roles, permissions, and logins. This ensures that everything happening in your books is controlled smoothly.
In QuickBooks, many transactions are interconnected, and deleting one transaction can affect other transactions linked to the deleted transaction. A choice is to void a transaction rather than delete it. But that too can cause problems in the case that the deleted transaction is for a closed period. Refer to your accountant and get the transaction reversed through the current period.
Paying Payroll Taxes using the Write Checks Window
QuickBooks keeps track and records the payroll tax a business owes as the payroll is managed in the Payroll Liabilities account. Accidentally paying the payroll taxes through the Write Checks window will result in the paid amount not getting properly deducted from the Payroll Liabilities. Therefore, to ensure that the payroll liability balance is deducted correctly, it is necessary to pay the payroll taxes from the Payroll Liabilities window.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.