Quickbooks Best Practices

Nov 30, 2020

Out of the many self-service accounting tools, Quickbooks is by far one of the better ones. Their wide range of tools and programs make it the all-in-one accounting software for small to medium-sized businesses who like to keep their books organized. If you use Quickbooks or have been looking into it, you’ll want to ensure you’re using the necessary functions and not inadvertently self-sabotaging yourself. Here are our best practices for Quickbooks to make the most of the program. 

Clean Up Your Account

The first place to start when using Quickbooks is to clean up your account. You’ll want to sync all necessary accounts, add users who need access, log past transactions, and adjust any settings that align with your business. A solid foundation is going to help make Quickbooks work to your advantage instead of adding more stress. 

Classify Transactions Correctly

Classifying your Quickbooks transactions will help with properly tracking income, expenses, and estimated tax payments. You have the option to sync multiple bank accounts and log transactions as either personal, business, or split. It’s crucial to be classifying these properly and documenting any necessary receipts and invoices and attach them to their respective transactions. If you are unsure of how to classify each transaction, it’s best to work with a Virtual CFO who can assist you with it.

Keep Your Account Secure

Like most accounts, you’ll want to keep your Quickbooks account secure. You should treat your Quickbooks account with the same level of security as your bank account. Never let any unauthorized users on your account and use hard-to-guess passwords when setting up your account. 

Refresh Your Accounts

Quickbooks has the option to refresh your bank accounts with the most updated information. You want to ensure you’re doing this frequently so you don’t miss out on any transactions and stay informed on your bank account status. 

Check-In Frequently

Checking your Quickbooks account should be something you do every day or at least every other day. You won’t want to miss any transactions or invoices, especially if you have multiple bank accounts synced. If you check your accounts frequently, it ends up being less work during tax season and prevents any future headaches if there are errors. 

Hire a Virtual CFO

Quickbooks is fairly easy to use at the beginner levels, but once you start logging thousands of dollars and have multiple bank accounts, you’ll want to seek some expert advice. Hiring a Virtual CFO makes the most sense in this scenario because they are equipped with the knowledge and expert advice needed to properly track your business finances. Not only are they great with accounting, but they can help you strategize for growth and assist with increasing revenue.