How to Avoid Common Mistakes When Using QuickBooks Accounting Software?

Gone are the days when an accounts department had people hunched over giant ledgers desperately trying to handle hundreds of invoices and entering them in the books in some semblance of order. Today, all this is possible with a click of a mouse and work that meant burning the midnight oil especially during the year-end closing of books are now completed and wrapped up without breaking a sweat.

This has been made possible with the introduction of a plethora of accounting software. Each of them has its own exclusive features and specifications that are applicable to a whole range of businesses ranging from small ones and start-ups to large multi-national corporations.

One of the leaders in this field is QuickBooks accounting software that is widely used by accountants and accounts outsourcing services for its many user-friendly features. A basic feature is easy accessibility where you can browse your accounts from remote locations through any Internet-enabled device like smartphones, tablets or laptops.

Hence you can analyze any head of the account on the go and take instant business decisions. Getting reports when required has never been easy in the past.

By outsourcing QuickBooks accounting services, you can get more than 50 different reports on a call with fields customized to your requirements. However, any software is only as good as the person who is inputting data into the system. Wrong entries and incorrect settings of the software can make things go horribly skewed with reports that have no connection with the actual.

Thus care should be taken to ensure that errors are avoided at all costs. This assumes greater significance here because this software helps businesses manage such critical heads like accounts payable and receivable, inventory management and sales and payroll functions.

What then are the most common mistakes made when using QuickBooks Accounting Software and how to avoid them?

Substituting in-built mock-up file with company file–

When the software is being installed for the first time, there is a sample file that is purely for illustrative purposes only. But those new in this line often tend to build on it and make it the actual business file.

This leads to errors as the sample format is only indicative and does not contain all required fields of the company. To avoid such a mistake, structure a fresh and new file and customize it with all your required fields.

Deleting pre-set fields–

QuickBooks being very user-friendly offers a long list of accounts that you can start off with. These are common to most businesses. The reason for the Chart of Accounts is to guide you through the initial stages so that you do not have to add any head of accounts immediately. These include amongst others Inventory Assets, Accounts Receivable and Payable, Sales Tax Payable and so on.

Now if you are in the service industry and not in the manufacturing sector there will be a tendency to delete say Inventory Assets head. This can result in errors as the software will not be able to correctly classify your subsequent transactions. It is always advisable to let the software “settle down” for a few months before deleting any head permanently.

Creating large numbers of accounts and sub-accounts–

QuickBooks permits a great degree of flexibility in creating reports which can be tailor-made with details of specific heads required by businesses. Hence any account that is needed to evaluate the state of the organization can be incorporated into the software and these can be further clubbed into sub-heads.

Creating a lot of accounts and sub-accounts however, overloads and complicates the system leading to problems with classification. To get the maximum out of the software, keep things simple and have a logical flow of account information that optimizes easy extraction of required data.

Not maximizing QuickBooks functions–

QuickBooks Accounting Software is very versatile with wide-ranging options to expand its potential to the fullest. There are a large number of apps and software that complement QuickBooks and add a host of extra functionalities.

One of the universal mistakes made by users is to keep themselves within the basic limits and parameters of the software and not use its many prospects to the fullest. Look for other add-ons that will enable you to get the maximum mileage out of QuickBooks.

Read Also: Common QuickBooks Accounting Software Problems & Solutions

Use QuickBooks Accounting Services To Save Costs!

Manage your business finances comprehensively with QuickBooks, simple user-friendly accounting software. Follow these few steps and unleash its full power to your advantage.

If you want to streamline your business accounting procedures with QuickBooks and get the full benefits of this powerful versatile software, you will do well to outsource your accounting functions to Cogneesol.

We have a team of experienced and qualified professional accountants well versed in the finer nuances of QuickBooks software. Simply upload your data to us at end of the day and get updated accounts in your system the first thing next morning. For more details contact us at [email protected].