Choosing an accounting software that is best suited for your small business is a huge task. Properly running and implementing that software is a monumental task that often causes small businesses to fail in the accounting area because they have not properly researched or prepared for the magnitude of such an undertaking. Our Louisville CPA firm would like to offer some helpful advice for successfully running one highly recommended accounting program QuickBooks.
Here are some helpful tips to get your program off the ground and running smoothly.
- Proper Set Up – This step is often overlooked as having importance but it is actually one of the most important steps to take in order to start the process off correctly. Check with your accountant to find out which version may be the best one for your business. With the correct version start understanding projects items and chart accounts then set them up specifically for your company needs. Make sure you know how to properly utilize the reports option for profitability customer break down evaluations and inventory control.
- Review Reports – Financial reports should be continually reviewed including the Profit and Loss report Balance Sheet Accounts Payable Aging and Budget Tracking.
- Remember to Reconcile – Failing to reconcile accounts will end up creating a messy balance sheet and oftentimes one that shows a negative balance. Credit card accounts and sales tax accounts should be reconciled on a monthly basis. Monthly reconciliation is the key to ensuring accurate financial data for your business and QuickBooks makes this easy to do.
- Key Hire – Hiring the right person to manage your QuickBooks is critical. The most common mistake that most small businesses make is hiring someone underqualified and underpaid for this position. Focus on compensation and qualifications. Specific previous experience is a must. Only hire employees who can answer specific questions like How would you reconcile the bank account? How would you invoice a customer in QuickBooks?
- Write Down – Develop a turnkey process for hiring a bookkeeper to take care of your accounting procedures. Large corporations already have this process in place. Set up a process for your accounting procedures and document it. Use the documentation to train new staff or other personnel should sickness occur or you are in transition.
- Back up – Always back up your files remotely. In the event that theft natural disaster or corruption may occur having a zip drive back up is simply not sufficient for all your financial records. Small businesses should consider backup services which can often backup to a cloud or remote server for additional protection.
Lindemeyer CPA has QuickBook consultants on staff and available to teach you best practices for getting the most out of QuickBooks. If you would like to learn more please contact our office.