Intuit’s QuickBooks has been one of the top consumer accounting software packages for decades. First released way back in the early 1980s, QuickBooks has helped countless individuals and small businesses take control of their finances. The product of years and years of careful refinement, most users consider QuickBooks to be quite easy to use. Even so, accounting can be complicated and errors will pop up no matter how good the tools you’re using are.
CPAs who have earned Intuit’s QuickBooks Certified ProAdvisor certification — such as Michael J. Yuda — are the ideal folks to turn to when you have a question or need help with your QuickBooks bookkeeping. The following are some of the most common mistakes people make with the software:
Sales Tax Confusion
For small business owners, exactly when sales tax must be applied can vary. Perhaps you owe it on an accrual basis. Maybe it needs to be payed each time you make a sale, regardless of when payment is received. Whatever the case may be, failure to properly set this parameter up in QuickBooks can lead to frustrating and hard to find inaccuracies.
Failure to Set a Closing Date for the Previous Year
QuickBooks can’t do its job and keep all your data organized if you don’t supply it with the necessary information. If you forget to put in a closing date, charges that were already applied to last year’s taxes can find their way on to this year’s, as well. Obviously, this could be disastrous. Even if the mistake is found quickly, fixing it can be an arduous, time consuming process.
Maintaining Multiple Data Files
Some users have a different QuickBooks data file on their laptop, their home desktop, and their desktop at work. It doesn’t take much thinking to relize how many problems this could create. Always work on the same data file to ensure that all of your records stay consistent and up to day.
A major key to QuickBooks’ success is its user-friendly design and overall ease of use. No matter how good a piece of software is, though, there is always going to be room for human error. Learning to recognize common mistakes — like the ones listed above — is an ongoing process that will get easier with time and experience.