Here’s some tips for running QuickBooks. You may already know that QuickBooks is pretty flexible, but sometimes that flexibility can get you into trouble someplace else.

  1. Never, Never, Ever let QuickBooks inventory items on hand become negative. All logic concerning inventory valuation goes away when that happens and it’s amazingly difficult and expensive to correct. It’s not possible for you to pay the correct amount of tax if you’re only working from the QuickBooks file, if QuickBooks thinks you’ve sold items you didn’t have.
  2. QuickBooks has drop-dead file size limits. If you allow your QuickBooks Pro file size to exceed 500 mb or your Intuit Enterprise Solutions file size to exceed 1 gb, you’re on thin ice and asking for trouble. Both programs will slow dramatically and your chances for corruption increase above those limits. I’ve seen files that are working properly above those limits and your mileage may vary. Just don’t be surprised to have grief.
  3. I recommend that you run the verify utility once a month.
  4. Ensure your accountant knows QuickBooks. If they don’t, the chances increase dramatically they’ll tell you to do things that damage your file. If you insist on using an accountant that doesn’t know QuickBooks at least have a consultant you can call on and never let the accountant make entries to the file. We’ll help you even if you don’t use our accounting services and you’re non-QuickBooks savvy accountant will be delighted with your clean books.
  5. Run your own payroll if you have the discipline and cash flow to make payroll tax deposits on time. If you don’t have that discipline, use a payroll service. QuickBooks Assisted does a great job with payroll, except on HSA’s and that is broken until Intuit fixes the software. That means W-2 forms must be adjust manually if you have an HSA.
  6. Even if you’re a one person shop, the QuickBooks payroll tax table is a good deal.
  7. Never put your personal transactions into your QuickBooks file unless that’s all that’s in that file. Keep business and personal strictly segregated.
  8. Deleting old transactions after tax returns are filed can cause big problems with the Retained Earnings account. There are well designed ways to negate the affect of old transactions. Get help.
  9. Don’t use the Enter Bills/Pay Bills function to pay note payments. Use the Write Checks function or, better yet, Memorized Transactions on the List Menu.
  10. If you’re not amortizing your notes, that is, splitting the interest and principal parts of the payment to the note payable and interest expense account, charge the note payment to the interest expense account.
  11. Enter credit card detail into QuickBooks each month and record the payment to the credit card payable account.
  12. Credit card accounts, along with most other balance sheet accounts, can be reconciled just like a bank account. Reconcile your credit card accounts each month.
  13. If you have a petty cash account, enter petty cash detail transactions into QuickBooks each time the account is replenished. Petty cash accounts are easy fraud targets. Keep a careful eye on that cash.
  14. Did you know that your income on your Sales Tax Liability report may not tie to income on your Profit & Loss statement?  There are reasons for that and they’re not all good. Prior to having your taxes prepared, let us perform a data file analysis on your QuickBooks data file.  The cost is $295. We’ll tell you everything that’s wrong with the file and talk about how to repair it. Don’t pay more in taxes than you should.