Several accounting professionals and CPAs often face difficult times in managing company files, chart of accounts and several other significant financial reports on QuickBooks accounting software. QuickBooks Desktop is undoubtedly an easy-to-use software, however, due to lack of technical expertise, things may sometimes get cluttered
At any point in time, when you experience difficulties in doing daily tasks on QuickBooks or if you encounter nagging QuickBooks errors, then there is always an option to consult a QuickBooks error support service provider. A certified QuickBooks expert can efficiently help you with instant and precise solutions to QuickBooks or network errors.
Well, to prevent QuickBooks errors, there are certain precautionary measures as well that you can adopt. These precautionary measures help you significantly avoid the most common errors pertaining to QuickBooks Desktop. In this blog post, to let you have seamless and uninterrupted QuickBooks experience, we discuss the top 14 QuickBooks mistakes and steps to prevent them.
Prevent These 14 Common QuickBooks Mistakes
1. Not Reviewing P&L Account
One of the most common QuickBooks mistakes that business owners commit is to not review periodic profit and loss accounts. Without review and analysis of P&L statements, business owners usually fail to maintain their other key financial reports as well that in a long run adversely impacts the financial position of the business.
2. Using too many Accounts & Sub-accounts
Creating and using too many accounting and sub-accounts in QuickBooks can mess up the entire accounting and bookkeeping data. Categorizing different interrelated expenses as one and using specific and precise accounts and sub-accounts, however, helps bookkeepers to have the most comprehensive insight of financial report and statistics.
3. Not Reviewing Balance Sheet
The balance sheet of your business gives you an insight into real-time financial position, status, and several other significant information. And, just like the timely review of P&L accounts, it is indispensable to have a routine and constant eye on the balance sheet as well. Periodic review of balance sheet also helps you make wise business decisions.
4. Incorrect Payroll
If you are using QuickBooks Payroll to get payroll tasks done by your in house accounting professionals then you may face difficulties in preparing and filing Payroll returns, etc. It is, therefore, always advisable to outsource payroll tasks or hire an experienced and certified payroll professional.
5. Not Organization List of Items
QuickBooks identified the product that you sell as Items, and, therefore, it is important to timely organize or streamline List of Items. You need to clean up List of Items by deleting the products that you no longer sell and add the list of new products.
6. Deleting Transactions
In QuickBooks, one transaction is related to the another. And, when you delete or modify or delete one transaction, then another transaction can automatically get deleted. It is, therefore, important to check the transaction status and related transactions of the transaction that you want to delete or modify.
7. Incorrect Report Setting
Many a time, due lack of expert guidance, you may encounter nagging QuickBooks errors due to incorrect report setting. The problem of incorrect report setting is commonly when you don’t know the preferences that you want to set. For example, in the cash report, select both cash in and cash out to get the accurate and precise report.
8. Incorrectly Applying Deposits to Invoices
Incorrectly applying deposits to invoices can lead to adverse situations such as negative balances that may later become quite messy to handle. It is, therefore, important that while applying deposits or receiving payments from customers, you always have open and new invoices.
9. Not Using Purchase Orders
One of the most common mistakes that business owners commit while using QuickBooks is to not use Purchase Orders or PO. Well, this is the significant feature of QuickBooks that lets you manage product list that you purchase from vendors.
10. Messed Up Chart of Accounts
You may experience inconsistency and bugs if the chart of accounts on QuickBooks is completely messed up. To have clear and better insights of your business finances, it is, always good to clean up a chart of accounts at least every year end.
11. Non-reconciliation of Credit Cards
To get instant and accurate financial reports of your business on QuickBooks, not using the reconciliation module for credit cards, loans or any other liabilities is always worrisome. Reconciliation module of QuickBooks gives you overall data related to outstanding reconciliations and other liabilities of your business.
12. Incorrect Preference Setting
QuickBooks allows you to get customized accounting and bookkeeping experience. However, if you haven’t set the Preference correctly then you are missing the most critical component and feature of QuickBooks. With Preference setting, you can easily customize the email template, reporting options and lot more.
13. Non-reconciliation of Bank Accounts
Timely reconciliation of bank accounts is important to have updated financial reports on QuickBooks. However, many a time, businesses owners ignore the reconciliation of bank accounts that ultimately lead to inaccurate financial data and report.
14. Ignoring Data Backup of QuickBooks Files
One of another common mistakes that QuickBooks users commit is to not backup their QuickBooks company files. Due to this, they may lose significant financial data and reports due to the server crash. If you are experiencing difficulties in data backup, then you always have an option to host QuickBooks on a cloud server. With QuickBooks hosting, your company files are automatically backed up with at least 31 day retention period.
It is important to avoid these experience to have maximum end-user experience and ROI on QuickBooks Desktop accounting errors. If there occur any nagging QuickBooks errors then, call us right away. We are a US based QuickBooks error support services provider, helping SMBs and CPAs unleash the true power of QuickBooks.