The purpose of using small business accounting software is to organize your books for your CPA or to only make your accounting all-around easier. Maybe you’ve been doing all of your books for years and are already an expert with QuickBooks software, but below you’ll find several tips that we regularly apply to assist our clients to close out their books in preparation for his or her taxes. If you’re not using QuickBooks, then we highly recommend it as a simple and cost-effective solution for your small business unless you’ve got specific industry needs or add on software that needs other accounting software. By using the following pointers, you’ll be ready to save yourself time with tax filing, lowered tax preparation costs, and have a far better understanding of your business’s financial position.
1.Check transaction dates – make sure that expenses are reported within the correct tax year by reviewing all of the transaction dates for accounts, especially those near the top of the year (December 15 – January 15).
2.Cash or Accrual? – Reporting should be wiped out whichever method is best for your business. Typically under the cash method, income isn’t counted until cash is received and therefore the expenses aren’t counted until they’re actually paid. As against the Accrual method, where transactions are counted upon order or delivery of products/services. Deciding which one is true for you is a crucial decision, and remember that changing back and forth between cash and accrual accounting is prohibited for every five-year period.
3.QuickBooks Keyboard shortcuts – this might seem simple, but using keyboard shortcuts and hotkeys can prevent plenty of time. a bit like together with your typical Copy (Ctrl-C) and Paste (Ctrl-P), QuickBooks features a number of keyboard shortcuts to save lots of you time. Here are a few:
- Ctrl-I Create Invoice
- Ctrl-E Edit transaction selected within the register
- Ctrl-F Find transaction
- Ctrl-J Open Customer Centre
- Ctrl-M Memorize transaction or report
- Ctrl-N For New invoice and bill and also for list item in context
- Ctrl-Q Quick report on transaction or list item
- Ctrl-T Open memorized transaction list
- Ctrl-W Write new check
4.Use Memos! – Provide detailed descriptions within the memos fields consistently. this might appear to be a pain, but 12 months down the road you’ll be thanking yourself once you know exactly where and when every expense was incurred. Use statement dates, or month or invoice numbers to form it easy to see consistent payments when doing a review.
5.These aren’t your grammar school “Classes” – Class tracking on QuickBooks allows you to categorize and track your commercial activity, enabling you to make separate classes for business sectors, advertising expenses per region, or multiple locations. you’ll easily activate class tracking by going into Edit->Preferences->Accounting->Company Preferences->Use Class Tracking.
6.Bill and Income Automation – does one need to pay some bills? QuickBooks has the power to memorize recurring transactions for bills, incomes, and savings. All you’ve got to try to is enter the bill through a memorized transaction and alter the quantity and date, and it automatically posts to the right account.
7.Report comparison function – Understanding how you performed within the current year is great, but it’s even better once you compare it to previous years. By comparing your reports you’ll easily find any inconsistencies or unusual changes.
8.Do don’t confuse it with a pool filter – The filters in QuickBooks allow you to quickly generate reports with predefined filters if you’re one among those types that wish to regularly change information and re-run reports. To enable this setting, enter Edit-> Preferences then select Reports & Graphs. On the My Preferences tab, enable the choice by checking “Prompt Me to switch Report” before opening up your reports.
9.Track fixed assets – QuickBooks features a hard and fast asset manager to trace all of your fixed assets, otherwise, you can create sub-accounts for every major asset to form it easy to spot and build depreciation schedules.
10.Back-back-back it up – Let’s be honest, we’ve all been there. When you’re computer randomly implodes and you lose all of your data. However, QuickBooks allows for straightforward backup to removable hard drives or cloud storage.
If you or your bookkeeper is using QuickBooks, then hopefully the following pointers are helpful. If you would like help or advice on specific modules or features be happy to contact us.