Quickbooks Pitfalls and how to avoid them
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The document outlines common QuickBooks mistakes to avoid, such as not reconciling bank accounts, over-using journal entries, and incorrect setup. It emphasizes the importance of using online banking features and proper record-keeping methods to maintain accurate financials. Additionally, it offers tips for preparing to meet with a CPA, including reviewing key financial reports and ensuring transactions are properly recorded.
Quickbooks Pitfalls and how to avoid them
- 1. How to avoid the pitfalls of QuickBooks www.TheDigitalCPA.com (407) 900-6713
- 2. #5 QuickBooks Mistake Not Reconciling Bank Accounts Regularly You must reconcile your bank accounts on a regular basis. Understanding your cash flow is required to run your business. www.TheDigitalCPA.com (407) 900-6713
- 3. #4 QuickBooks Mistake Over Using Journal Entries Using JE’s is easy, but you lose traceability of items like inventory. www.TheDigitalCPA.com (407) 900-6713
- 4. #3 QuickBooks Mistake Record invoice in Enter Bills and Pay using Write Checks You must choose one method or the other Using the method shown above will result in a double expense and understating income. www.TheDigitalCPA.com (407) 900-6713
- 5. #2 QuickBooks Mistake Not using the Online Banking Features for your Credit Cards Use QuickBooks to pull in your credit cards transactions to save you the time of data entry and the reduce the risk of error. www.TheDigitalCPA.com (407) 900-6713
- 6. #1QuickBooks Mistake Incorrect Set-up The proper set up will ensure the results your are looking for. www.TheDigitalCPA.com (407) 900-6713
- 7. Other Tips and Tricks • Use Memorized Transactions • Use Class Tracking • Use 3rd Party Apps to avoid QuickBooks limitations • Request a W-9 from all vendors, Enter EIN when setting up • Use Review 1099 Vendors report • Set a closing date and password, once year is closed • Back-up your file – Use Intuit Data Protect www.TheDigitalCPA.com (407) 900-6713
- 8. How to prepare to see your CPA • Review your company’s reports for the previous year 1) Balance Sheet www.TheDigitalCPA.com (407) 900-6713
- 9. How to prepare to see your CPA • Review your company’s reports for the previous year 1) Balance Sheet 2) Income Statement www.TheDigitalCPA.com (407) 900-6713
- 10. How to prepare to see your CPA • Review your company’s reports for the previous year 1) Balance Sheet 2) Income Statement 3) Accounts Receivable Aging 4) Accounts Payable Aging • Make sure all deposits are recorded and bank accounts are reconciled www.TheDigitalCPA.com (407) 900-6713
- 11. Thank you! www.TheDigitalCPA.com (407) 900-6713