Five Tips for Improving QuickBooks Records in 2009
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Many small businesses indicate that they will be paying close attention to their finances in 2009. Here are some tips that may help you if you use QuickBooks for accounting.
1) Save time with Your Chart of Accounts: Make sure your company's Chart of Accounts accurately reflects the concepts you need to track. A numbered chart of accounts saves time and effort searching for the right place to make an entry. Subaccounts increase the usefulness of your reports. The time you spend diagramming and planning your chart will pay off in efficiency throughout the entire year.
2) Easier Bank Balance Updates: Some businesses find the Undeposited Funds feature cumbersome and difficult to maneuver. It can be disabled if you wish to enter deposits on a more supervised basis to correspond directly with the cash and credit deposits you track on a daily basis. If you think this will solve some problems for you, access this preference through the menu by accessing Edit/Preferences/Sales and Customers/Company Preferences/Receive Payments.
3) More Accurate Reports: Reconciling your accounts on a monthly basis is quite simple with QuickBooks. This is an essential element in cash control and fraud protection. It is best to complete this task as soon as the bank statement arrives. This saves time by offering you opportunity to reconcile the account with fewer entries to review if the bank and book balances are not the same. It also produces reliable reports that can be used for immediate decisions.
4) Better Documentation: Depreciation entries are non-cash amounts which increase your depreciation expenses and decrease your taxable income for the year. It is important to post these amounts in your QuickBooks records after they have been calculated by your accountant. Having these contra-accounts readily available allows you to more accurately anticipate the amount of asset value that is available for loan applications and the amount of capital gains that will occur if you sell an asset.
5) More Efficient Bookkeeping: Bridging transactions from your bank account is a fairly easy process for many bank-to-QuickBooks download interface programs. However, it is very important to review your account set-up prior to bridging to the bank. Otherwise, the information download does not help you with your QuickBooks accounting, it simply adds more transactions to already confused bookkeeping records.
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