QuickBooks can help keep your business's financial records in order. However, the program relies on human data entries to maintain the records. Mistakes made in the entries and incorrect usages of the software can result in errors that could prove costly. To ensure your company is getting the most out of your online version of QuickBooks, here are mistakes to avoid:
Leaving Your "Items" in Disarray
In QuickBooks, your inventory is defined as "Items." As transactions are made, the category is updated. Unfortunately, there are some limitations to what the software can track, which can lead to a confusing compilation of items in the category. To prevent this, you need to periodically update your inventory and organize the "Items" category.
One way to start is by removing any products that your business no longer sells. The removal of those products not only helps QuickBooks keep more accurate records, but it makes it easier to quickly find information that you need. In addition to this, you can periodically verify the number of products that your business currently has. Updated records can help with determining when you are running low.
Going Overboard with Sub-Accounts
QuickBooks allows users to create accounts and subaccounts that can be used to better organize the financial records. You can create as many of the accounts and subaccounts that you need. Unfortunately, creating too many can sometimes lead to problems.
Too many subaccounts can make it difficult to find the right category for items while using the software. To avoid this, take the time to consider the full purpose of a subaccount before you create it. If you can fit an item within another sub-account, avoid creating the new one.
Failing to Back Up Your Files
One of the worst things that could happen to your financial records that are stored within QuickBooks is that they are lost. A common misconception about the online version of the software is that it is automatically backed up. However, if you have not taken the time to set up your online backup, you could lose important work when you exit the program.
Ideally, you should set up a backup when you first start using QuickBooks. You can find the online backup application in the "Programs" folder on your computer. Follow the instructions to run the application and setup automatic backups.
Contact a company like Blueback Accounting for more information and assistance.Share