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QuickBooks® helps businesses effectively manage their inventory, sales and payroll and offers a host of other important items for smaller businesses when it comes to their financial records. However, like any software program, there is always room for user error and there are some common errors that every QuickBooks® user should be aware of.
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QuickBooks Common Issues QuickBooks Common Issues Since its release in the early 1990s, QuickBooks® has grown to become the highest rated and most popular accounting software solution for small businesses. QuickBooks® helps businesses effectively manage their inventory, sales and payroll and offers a host of other important items for smaller businesses when it comes to their financial records. However, like any software program, there is always room for user error and there are some common errors that every QuickBooks® user should be aware of. This article explores 10 of the most common errors that QuickBooks® users make. The list includes setup errors (e.g. using too many accounts and subaccounts), procedural errors (e.g. using the Write Checks window to pay payroll taxes) and other errors such as not regularly checking the balance sheet statement and not exploring third party options that expand the capabilities of QuickBooks®. Here is a list of the 10 most common QuickBooks® reporting errors and how to avoid them:
Not Setting Sales Tax Preferences Not Setting Sales Tax Preferences If sales tax is owed on items that a business sells, the sales tax preferences must be setup in QuickBooks® to keep the records accurate. To set sales tax preferences, go to Edit—Preferences—Sales Tax icon—Company Preferences—Owe Sales Tax Edit—Preferences—Sales Tax icon—Company Preferences—Owe Sales Tax and then choose either As of Invoice Date As of Invoice Date or Upon Receipt of payment Upon Receipt of payment. Not Reconciling Accounts Not Reconciling Accounts To ensure the business account register is correct, accounts must be regularly reconciled. This includes checking and savings accounts, loans, taxes and more. To reconcile an account, open the Banking Banking section, click on Reconcile statement dates and end balances. After each item in the Checks and Payments column is checked off, the bottom right corner should read zero. Reconcile, then enter Checks and Payments Writing a Check Without Entering a Bill Writing a Check Without Entering a Bill When a bill arrives, some business owners simply use the Write Check the bill. The first step when a new bill arrives should be to enter the bill in the Enter Bills window. This creates an accounts payable. Then, go to Pay Bills you want to pay. This takes care of the accounts payable for that vendor and allows you to use QuickBooks to properly manage your cash flow and plan for future expenses. Write Check feature to pay Enter Bills Pay Bills and indicate the bill Using the Write Checks Window to Pay Payroll Taxes Using the Write Checks Window to Pay Payroll Taxes As payroll is processed, QuickBooks® reporting software keeps track of how much payroll tax the business owes and records that amount in the Payroll Liabilities However, if payrolls taxes are paid in the Write Checks Write Checks window, the amount paid will not be properly deducted from the Payroll Liabilities Payroll Liabilities window. Paying these payroll taxes directly in the Pay Liability Pay Liability window will make the proper deductions and keep the books straight. Payroll Liabilities window. Not Reviewing P&L and Balance Sheet Statements Not Reviewing P&L and Balance Sheet Statements These statements give valuable information about the health of the business and can help catch errors before they become costly mistakes. These valuable statements should be reviewed regularly. Too Many Accounts and Subaccounts Too Many Accounts and Subaccounts
One benefit of QuickBooks® financial reporting software is the ability to create accounts and further organize them into sub-accounts. Think carefully about the logical ordering of account information but try to group things into as few categories as possible to avoid complicating the system. Entering a Bill or Writing a Check for Loan Payments Entering a Bill or Writing a Check for Loan Payments Many business owners use the Enter a Bill payments each month. A better strategy is to go to Banking—Loan Manager—Set Up a New Loan New Loan. After following the directions to set up the loan, the next step is to click the Set Up Payment Set Up Payment option. Once this is in place, QuickBooks® reporting will automatically enter the payment each month and also keep track of the principal and interest. Enter a Bill or the Write a Check Write a Check windows to make loan Banking—Loan Manager—Set Up a Skipping the Receive Payments Step Skipping the Receive Payments Step When money comes in, many QuickBooks® users go right to the Make Deposits However, it should first be recorded in the Receive Payments be shown as paid. Make Deposits screen. Receive Payments window so the invoice will Not Backing Up the Data Not Backing Up the Data It’s best to plan for the unexpected. In this case, that would be a computer crash that wipes out the QuickBooks® reporting files. Business QuickBooks® files should be backed up at the end of each day they are used. Not Expanding QuickBooks Capabilities Not Expanding QuickBooks Capabilities There are many apps, add-ons and consolidation software that work to expand the capabilities of QuickBooks® reporting. These can help with more complex needs such as preparing consolidated financial reports. For businesses with extra needs, it is wise to look into other software that will help you get the most out of QuickBooks®. Contact Support Contact Support QuickBooks Customer support number 1855-924-9508 troubleshoots QB issues and provides solutions for them. We provide QB solutions through call and chat. Our experts can remotely access your system for resolving errors.
