Do You Know the 10 Most Common QuickBooks Errors?

Do You Know the 10 Most Common QuickBooks Errors?
Issue 2.15 April 22, 2003
 
Do you know the 10 most common ailments for the QuickBooks data files? Assuming you know what they are . . . Do you know how to fix them?
   
Have you sent all the adjusting journal entires to your clients? Have the processed them? Do the balances all match?  
   
Using QuickBooks is quite easy. As the commercials say, you just open the box, insert the CD, and follow the simple instructions. ALthough software seems to not require any computer or accounting knowledge, there are many things that can be overlooked. One of the most common errors is that the file has lost data integrity. This topic was addressed in a newsletter article in January.

One of the ways to determine that the information contained in the the QuickBooks is accurate and useful when making business decisions is to reconcile the balances with an external source. For most small businesses this is the Accountant. At the end of each year, at a minimum, the Balance Sheet should be compared and adjusted to the results as determined by the Accountant. Most small businesses do not regularly record some entries such as amortization, depreciation, loan interest, and the like. Or there were errors in the coding of transactions such as the purchase of fixed assets or additional loan proceeds received. Many problems (and related accounting fees and frustration) can be eliminated next year by making these entries and confirming that the QuickBooks data and the information from the tax return or Accountant agree.

This is the time of year to make sure that the balances agree. The situation often starts with the adjustments not being given to the client by the accountant. The second problem can occur when the client does not understand the importance of recording the entries or, does not know how to process the entries (for example, how to enter them into the system, which should be reversed, etc.). And finally once the entries are made, confirming that a couple of key numbers actually match. Obviously it is preferable to create a Balance Sheet in QuickBooks and confirm it matches the report generated by the accountant but that can be overwhelming for some clients. As the accountant you may want to have the client make the entries, or use a remote access alternative to enter the transactions your self, then print a copy of the Balance Sheet for your files.
 


As a resource for this and other questions, submit a question via "Ask the Expert" or attend our free, monthly discussion forum tele-class.

Bonnie J. Nagayama, CPA (925-247-0100) has been featured by Intuit in their QuickBooks Advisor Spotlight and frequently teaches and consults on using QuickBooks to its maximum advantage. For a FREE weekly newsletter of QuickBooks tips and tricks, plus many free and low cost QuickBooks resources visit www.4luvofbiz.com.
 
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For further information, visit the following articles:
QuickBooks Tips & Tricks - #1 Data File Error (Free!)
Loan Payable Tips & Tricks (Free!)
Payroll Liability Payment Corrections (Subscription required)
Loan Payable Tips and Tricks (Subscription required)
Taking Over an Existing File (Subscription required)