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Understanding the nuances of accounting software can be complex and intimidating, but it doesn’t have to be. In fact, Quickbooks is an incredibly comprehensive tool that comes with a multitude of features that can aid any small business. However, it’s possible to overlook a few details in the program that could make organizing your transactions more streamlined.
1. Using QuickBooks Integrations
QuickBook integrations can help any business, no matter how precise or general. For example, third-party integration software ServiceTitan can help pest control, HVAC and plumbing companies stay focused and organized without having to fiddle with multiple widgets. Other integrations like PayPal, Amazon Business Purchases, Connect to Square, and Shopify helps you connect data outside of the platform. Integration software can help make accounting simple, payroll a breeze, and allow for customization options that are unavailable on other platforms.
2. Connect to Bank Accounts
QuickBooks allows you and your clients to connect their bank account to the software, so transaction information is uploaded automatically. It’s important to review these processes regularly because incorrect calculations can occur if the wrong rules are set in the program.
3. Making Sense of Account Names
Account names are easy to mix up when you have many of them, but QuickBooks makes it easy to name, categorize and find the data you need as quickly as possible. Think of your accounts as folders that have multiple files inside. These accounts become expense categories when you print off balance sheets or profit and loss statements. When the names are immediately recognizable to you and your team, they won’t be difficult to look up. Be sure to use a similar naming convention (Client, Project, Date), so your team follows that same rule.
4. Use Keyboard Shortcuts
Keyboard shortcuts are incredibly handy timesavers. In addition to keyboard shortcuts, there are also date shortcuts such as using “w” for the first day of the week. The following QuickBooks keyboard shortcuts are ones you’ll likely use daily.
- Ctrl+E – Edit the transaction that’s selected in the register.
- Ctrl+F – Locate a transaction.
- Ctrl+I – Create an invoice.
- Ctrl+M – Memorize a transaction or report.
- Ctrl+J – Open the Customer Center.
- Ctrl+Q – QuickReport on transaction or list item.
- Ctrl+N – New bill, invoice, list item, or check.
- Ctrl+W – Write a new check.
- Ctrl+T – Open memorized transaction list.
- Ctrl (while opening QuickBooks) – Start QuickBooks without a company file.
5. Positive Values for Financial Statements
Although accounting software does mimic a checkbook somewhat, the differences are so diverse that it’s important to read the manual before use. A common mistake new QuickBooks users will make is adding a negative sign when a set amount leaves an account. Using a negative value makes sense on the surface, but using this value will make your balance sheet confusing and inaccurate. New debts entered into QuickBooks should be in positive amounts, and all other values should stay in the positives unless a professional says otherwise.
6. Track Sales Taxes Correctly
The sales tax on your items is calculated based on the country, state, and sometimes city you live in. Some businesses will charge a fixed price, while others will place the tax in subcategories like federal and state. Either of these methods are fine, but some companies will omit them entirely and end up with a hefty bill from the IRS at the end of the tax year. To avoid this problem, choose to include sales taxes in expenses and revenues or leave it out of both entirely. This way, your business’s profitability will be reported with the correct amount.
7. Commit to Learning QuickBooks or Hire a Bookkeeper
Learning the QuickBooks software isn’t difficult but still requires a few weeks of active learning. If you find that your knowledge in accounting is limited and you wish to skip the process of learning the software, hire a bookkeeper that has QuickBooks and small business experience.