Are you a newbie online QuickBooks user? Want to know about the common mistakes people make while dealing with online QuickBooks?
QuickBooks is a versatile bookkeeping software that helps in bolstering financial management of business, and thereby contributes towards its development. However, many businesses have failed to utilize this online software effectively and make mistakes that affect their potential progress.
In order to help you go good with online QuickBooks, here’s a list of certain mistakes you can make while handling it.
Also You Can Read “7 Bad Habits Tarnishing Your Effective Bookkeeping Practices“
- Setting Aside Items to Wrong Accounts
Whatever you sell, resell and purchase during business is denoted as “Item” in QuickBooks. If you want to keep your business records organized and precise then always allot every Item to relevant accounts or account types.
- Discarding Critical Accounts that QuickBooks Automatically Generates
QuickBooks often creates critical accounts like Retained Earnings and Sales Tax to make job easier for you. If you rename or delete any accounts then the possibility of generating errors in your financial records gets magnified.
- Selecting Bank Accounts in the Expense Accounts Area while Writing a Check
This is indeed harmful as it causes your money to go out and subsequently come back to your checking account instead of reducing the checking balance.
- Recording Customer Payment Twice
On receiving payment for an invoice, QuickBooks automatically allocate the money in the Received Payment location. Then, if you accidently make a separate deposit for the same amount then business records is likely to get affected and messed up.
- Avoiding the Received Payment Step While Entering Invoices
After entering the invoices to create sales record if you skip the Received Payment then the invoice will not appear as paid. Moreover, QuickBooks would count up your single sale twice. It is better to utilize the Received Payment part to apply the payment against the invoice.
- Forgetting to Apply the Payment to the Bill
When you have chosen method for a specific bill, it is advisable that you must adhere to it or else you are likely to pay your bills twice. Effective method of writing a check and therein applying payment to the bill would be very much beneficial white tracking bills & payments
- Using Sample Files as Original Company Files
This is another mistake a newbie user does while using QuickBooks. You must understand that these files are not templates and contains limited set of Items & services. You can use it to learn QuickBooks but using them to deal with real business information could end in messing up important accounting details. Prefer creating your own company file to store relevant data.
- Not Creating User Login & Passwords
If you have a big company where many employees are working in QuickBooks, then the absence of individual user login, password, permissions, roles etc would beget enormous problems while managing financial affairs.
Bookkeeping is an inextricable part of business and if you leverage online QuickBooks effectively then managing financial affairs of business would be as easy as breathing.
For more information about Bookkeeping related help you can contact – Smith & Smith CPAs