If you've ever used Do It Yourself (DIY) bookkeeping software like QuickBooks Online, you know the feeling—That gut feeling that you’re doing something wrong.
Trust your gut. It's one thing to know an accounting software, but it is entirely different to know bookkeeping for your business.
When new clients bring their DIY bookeeping to Easie Bookkeeping services, we almost always find mistakes in the general ledger and balance sheet. There are many facets of bookkeeping that the average business owner is not aware of, there's more to it then just income and expenses.
The tax season deadline is approaching, you may have to pay your CPA to redo a year’s worth of transactions. Or you may have incorrect financial statements.
The great news: with a short bookkeeping training, we can show you how to fix the most common errors in your Quickbooks Online software.
Mistake #1 - Unrecorded Transactions:
You're a busy business owner, it’s easy to fall behind on your records. But when your books no longer reflect the reality of your finances, it’s hard to gauge your business accurately.
Solution: Make a Habit of Recording your Transactions:
Try to get into the habit of recording every transaction either daily or weekly. We all know the headache of playing catch-up at the end of the quarter or year is.
Mistake #2: Duplicate Transaction Entries
Double vision—sometimes DIY Bookkeepers forget they’ve entered an item already and end up counting it twice.
Solution: Reconcile Monthly and Review your General Ledger for duplicates
If you are not reconciling your accounts correctly, it can be easier to leave transactions in the register uncleared or sitting in your reconcile screen when you reconcile. Why are these still sitting in there? Are the duplicates or are they checks that have not cleared, look into these items BEFORE you hit that reconcile button!
Mistake #3: Chart of Accounts Set-Up Incorrectly
Your chart of accounts lists all the categories you use to record your income, assets, liabilities, receivables, and operating expenses. These categories are the essentials for your financial statements—so it’s key to have them set up properly.
Solution: Hire an Outsourced Bookkeeper to Setup or CleanUp Chart of Accounts
You can hire a bookkeeping firm to setup your Quickbooks Online account and create a custom chart of accounts that lines up with the categories you see when preparing your taxes. Your CPA will thank you for making it easier on them!
Thank you for sharing the information. Its very helpful.