workflow
Overview

This section will give you an overview of how to have the cleanest and “prettiest” books in town!

 
 

QuickBooks Tips for excellence:

  • Chart of Accounts

    • No miscellaneous accounts. Other versions of misc. would be ‘uncatagroized’ expense, asset or income.

    • No duplicates Examples: telephone costs and cell phone costs or subcontractor and contractor.

    • Account listings for Bank, Loans and credit card accounts- Put the last four digits of the account number in the Chart of Accounts, Asana and Client Notes. See image #1 on the right.

    • To find the Chart of Accounts in QuickBooks, click Lists, Chart of Accounts or CTRL+A.

      Pro-tip - the Chart of Accounts is sometimes abbreviated as COA.

  • Reporting -

    • No “other” accounts on the P&L (meaning transactions are posted to their header account instead of a sub account). See image #1 above.

      • To access the Profit and Loss (aka the P&L) go to Reports, Company and Financial, Profit and Loss Standard.

      • When you run this report for the period you are working on, scan down it to make sure you don’t see any “other” on any accounts.

    • Memos on checks - here are the reasons you would want to put memos on checks in QuickBooks.

      • Suspense Received - a client gives you an answer/more detail on a transaction

      • Check image and there is a memo on the physical check

      • Suspense - a question to the client (example: is this personal or business?)

      • Abnormal transactions - say your client goes to Chipotle to buy a gift card for a customer giveaway but normally Chipotle goes to meals. Put in the memo “per client - giveaway for customers” then when the person doing your final check (or for the forgetful client) sees that transaction they will remember why its there and that its not a mistake.

  • Vendor Names -

    • When you see a transfer to an account, create the vendor name in QB to be “Transfer 1234” so that way if the money is going in or out you can use the same name. Once you figure out what that account is, you can change the vendor name to “Transfer 1234 – Owners draw” so when you see it hit the bank account you already know where it goes. See image #3 above.

    • Square, Intuit, PayPal and merchant processors will put their names on the front of transactions to let you know how the payment was processed. Make sure you only enter the actual vendor name to the vendor list and not the processor. Example: the transaction shows up on the bank statement as SQ*ABC Supply Store - the vendor name you should use is ABC Supply Store.

  • Memorized Transactions - If you have to make a reoccurring adjustment/entry for a client and one month they just so happen not to have any transactions, enter a $0.00 adjustment instead of skipping it.

    This is to prevent when your final check is being completed, they will know that it was intentional. Same goes if there are not changes in a bank statement - still reconcile it. Otherwise you will get an email saying “Looks like you forgot to enter the monthly adjustment for xxxx, please do so.” :)


Related Topics:

Basics of QuickBooks - VIDEO HERE

Please be sure to watch videos on your
personal computer or phone (not the cloud).