QuickBooks on the surface is very easy to use to handle your Company’s financial needs. But behind the pretty face, lies an ugly accounting program!
Without you having a basic understanding of accounting, QuickBooks does many things behind the scenes that destroy the integrity of your books, gives your accountant nightmares, and subjects you to risk during an IRS audit.
Commons problems in QuickBooks result in major business headaches such as:
- Paying incorrect amounts to the IRS
- Paying incorrect sales tax payments to the State
- Paying incorrect payroll tax payments to the IRS and State
- Inability to correctly track your costs
Like an automobile, QuickBooks requires regular maintenance.
Here are just a few of the many things that can go wrong:
- Prior period account balances change due to not closing your accounting period and recording or changing transactions in a prior period- this means your books do not agree with your tax return and bank statements!
- Transactions are often coded inconstantly to different accounts making it hard to track your costs
- Items in your chart of accounts, inventory, fixed assets, payroll and sales tax lists are incorrectly changed resulting in erroneous reports for tax filing
- Accounts receivable reports show negative balances due to unapplied customer payments
- Accounts payable reports show negative balances due to mismatched invoices and payments
- Undeposited funds are not recorded as deposits and/or income
- Inventory is not reflected at the correct amount – this means you are using wrong information to plan for your business and to pay taxes
- Sales tax liabilities are incorrectly stated or worse yet, paid wrong
- Payroll tax liabilities are incorrectly stated and/or paid wrong
Many of these problems are caused by QuickBooks seeming to be so simple to use. The truth is, that most of the time, a lot of things ARE done right by most people. However, it is that small percentage of time that causes the most problems.
Realistically, it is hard for the average person to correct these problems, just as the average person cannot correct problems developing with their automobile. We think nothing of taking the car to the shop for a tune-up, an oil change, or other repairs. It is time to start treating your QuickBooks the same way – keep it well maintained by a professional! We are here to help.