Steamline the Bookkeeping Process

Streamline the Bookkeeping Process

QuickBooks is not an adjusted trial balance program.  It can, however, be used to streamline the financial statement preparation process.  Once the new company file has been created by choosing File > New Company and using the "Easy Step Interview", the register is the quickest and easiest way to complete the data entry process.  As transactions are entered at the bottom of the register, they are automatically sorted in date order (or with the newer versions there are other sorting choices).  It does not matter what order transactions are entered.  QuickBooks is strictly date sensitive.  It does not use periods as in some other software packages.

If a transaction needs to be split between general ledger accounts, assigned to a customer:job, or coded to a class, this can be accomplished by clicking on the "split" button at the bottom of the register.  Learning the keystrokes to accomplish this task may also prove helpful.  In the case of the splits, pressing Ctrl and the letter S simultaneously will make the split box appear.  As each transaction is recorded, the split box will disappear and the account section of the register will say "-split-."  This does not mean that there is an account in the chart of accounts with that name; rather it means that there are multiple accounts that have been used to code the transaction.  In addition to seeing this on the register, it is also on many of the reports.

QBRA-2002:  Banking > Use Register

QBRA-2002: Banking > Use Register > Splits

If many of the transactions with require splits, or class or customer:job information will be captured, it may be more efficient to enter the disbursements from the check screen.  Usually the determining factor will be which way seems easier to the person doing the data entry.  A secondary consideration is that the use of the customer:job and/or class information is not required.  A preference can be turned on to require an account, but there is no such preference for requiring a customer:job or class for a transaction.  Therefore entering the information directly into the register if only one account is needed often results in the supplemental information being inadvertently not entered.

QBRA-2002: Banking > Write Checks

Once the initial set up has been completed, and the first processing reviewed, the following periods will proceed much easier.  The reason is that QuickBooks has an automatic recall feature that will QuickFill the checks for a vendor based on the account coding from the last transaction.  If this does not happen, confirm that the preference is set properly (Edit > Preferences > General > automatically recall last transaction for this name). 

Trick: If using QuickBooks as a write up program, be sure to make the Accounts Receivable and Accounts Payable accounts other current asset and other current liability accounts, respectively, to permit making journal entries to record and adjust the balances in the same journal entry.  In addition, this change in type will improve the financial statement presentation and eliminate the need for a customer or vendor.

More information on this topic

Cash Basis Entry