For many business owners, QuickBooks® is a tool that helps track sales and profits, maintain inventory, and manage payroll. However, small missteps when using the software can lead to inaccurate recordkeeping and potentially costly budgeting and reporting errors. Here are a few common mistakes that business owners make and how a QuickBooks consultant can help.

What Are Some QuickBooks Errors to Avoid?

1. Disorganized Items List

The items list is where you manage and describe the products your business sells, as well as taxes, discounts, and special offers extended to customers. For most businesses, this list is constantly evolving, so it needs to be updated regularly.

Inaccurate information can turn routine tasks, including inventory management, tax reporting, and cost analysis, into major hassles. A QuickBooks consultant can review your items list with you and deactivate, label, and update items as necessary.

2. Infrequent Reconciling of Accounts

Reconciling accounts compares the financial records of your business to the information documented in your business's bank accounts. It’s crucial for maintaining the general ledger and preserving a workplace culture of transparency and integrity.

You should reconcile your accounts at least once a month. A QuickBooks professional can show you how to use the software to reconcile all types of accounts, including checking, savings, loan, tax, and mortgage escrow accounts.

3. Writing Paychecks From the Wrong Window

QuickBooks lets you process payroll and record how much payroll tax your business owes. However, many business owners write checks in QuickBooks using the "Write Checks" windows.

This is an understandable error because of the window's label, but paychecks should always be written from the "Pay Liability" window. This way, the proper payroll tax will be tracked and tallied.

When you need assistance fixing a QuickBooks error or getting more comfortable with the software, contact Bergamo Tax & Financial Services. Since 1986, they’ve worked with businesses throughout Litchfield, Waterbury, Middlebury, New Haven, and Hartford counties in Connecticut. These QuickBooks consultants also offer tax planning and preparation, payroll support, and bookkeeping. Call (860) 274-1655 to schedule a consultation, or visit their website to learn more about how they can help your business.