Quickbooks is the world’s most popular business account software, and for good reason — it’s loaded with features, come with an easy-to-use interface, and there are several versions available to fit anyone’s accounting needs. Whether you are a small, medium or large-sized business, chances are you’ll find Quickbooks makes accounting quick and easy. If you intend on using Quickbooks, though, you’ll want to avoid making some of the following mistakes.
Mistake #1 – Not Reconciling Accounts
Arguably, the single most common Quickbooks mistake people make is not reconciling their financial accounts. Instead, they simply look at the end balance to see how much money their accounts contain. While it may be accurate nine out of ten times, there’s always a chance the final balance is wrong. The only way to determine the accuracy of your accounts’ final balance is to go through and reconcile each one. Basically, this is a process similar to balancing a checkbook, as you’ll look at each deposit and withdraw to see if the final balance matches up
Mistake #2 – Not Setting Bank Account With Cash Entries
Let’s face it, not all of your financial transactions will be done through checks. There will likely be times when cash is used for the purchase of goods related to your business. The good news is that Quickbooks is designed to handle cash entries with ease. The bad news, however, is that some people make the mistake of not appointing a bank account with the entry. Even though it’s a cash entry, you still need to specify which bank account it’s for; otherwise, your final balances will get thrown off. Try to get into the habit of reconciling your accounts at least once every other week to reduce the impact of any incorrect transactions.
Mistake #3 – Not Backing Up Your Accounts
When it comes to accounting, it’s better to be safe than sorry. Unless you are using Quickbooks Online, all of your financial account data and information is probably being stored on your computer. While this is perfectly fine, you should also back it up elsewhere just in case something happens to your computer. Even a small USB flash drive will typically provide enough storage space to backup your Quickbooks accounts. Alternatively, you can use a removable hard drive, CD, DVD or a remote storage service. The bottom line is that you need all of your Quickbooks account information backed up somewhere other than your computer.