QuickBooks® is now an essential tool for running a successful small business. It can be used to manage everything from your company’s bookkeeping and payroll to your taxes. While the software is intuitive, many business owners still make common mistakes when using it. Here are a few to watch for so you can either avoid or fix them.

QuickBooks Mistakes to Look For

1. Forgetting to Back Up the Files Daily

While they’re rare, system failures and computer crashes do happen, so it’s crucial to always back up your files. The same holds true with QuickBooks. Save them to an external hard drive or the cloud on a daily basis. To do so, head to the file menu, and select ‘Backup Company’ and then ‘Create Local Backup.’ Next, click ‘Local Backup’ and then ‘Options.’ From there, choose a location to save the files. 

2. Not Recording Every Transaction

If you’re busy running your business and don’t focus on bookkeeping, you may forget or not have the time to record every transaction. However, if you leave this task to the end of the quarter or year, you could miss transactions. Additionally, if you don’t record them regularly, it will be hard to gauge the health of your business. To avoid these issues, make a habit of doing this task on a daily or at least weekly basis. 

3. Not Reviewing the P&L Report Regularly 

Many business owners don’t take the time to look over the P&L (profit & loss) report on QuickBooks. It should be reviewed at least once a week for a couple of reasons. First, you can compare your income and expenditures to previous periods to make sure you didn’t spend far more or make less than you typically do. Second, by checking this report, you can keep track of the general health of your company, helping you optimize your business and make decisions.

When you need help growing your revenues or optimizing your bookkeeping process, contact Roy E. Carter, CPA, PC. As a proven small business advisor, he will help you with everything from analyzing your financials to teaching you how to use QuickBooks more effectively. Call (540) 886-6251 to set up an appointment, or visit his website to learn more about his business advisory and bookkeeping services.