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Following Best Practices in QuickBooks

Published by Angie Douglas on 21 Aug 2020

For the most effective way to get things done it’s recommended that you follow the standard procedures or “Best Practices” in QuickBooks.

Some work habits can be good for being successful in getting through the workday. For example: responding to emails promptly, scheduling your most challenging tasks for your high energy time of day and leave the less demanding tasks for times when you’re not quite so busy. If you will be going to a meeting you may be in the habit of preparing a checklist ahead of time so you will be well prepared for the meeting.

You may have habits that you follow in QuickBooks too, like following the same work patterns to get things done every day. If you’re incorporating “best practices” of the site, there isn’t a problem. Nor is a habit of taking actions that lead to the most effective use of QuickBooks. If you haven’t already, below is 4 habits you may want to consider developing.

Every day, take time to go through your new transactions:

The ability to connect to your financial accounts and import transactions regularly is one of the 5 best things about QuickBooks. However, this feature is only useful if, every day you review your “recently-downloaded” transactions. If you wait too long this task may become overwhelming.

One of the five best things about QuickBooks Online is its ability to connect to your financial accounts and import transactions regularly. But this feature is only useful if you review your recently-downloaded transactions every day. Wait too much longer than that, and it will become too overwhelming.


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It’s recommend that you review your account transactions daily and complete any of the fields necessary.


You can view an account register by clicking on Banking in the left vertical pane, next click on the desired account at the top of the screen. After selecting a transaction, a window like the partial above drops down to display your options. This can be complicated if you haven’t worked with defining and clearing downloaded transactions before.

Always assign categories to expenses:

It’s essential that you always assign categories to expenses and mark each of them as billable or not. The better you keep up with this task, the more helpful the reports will be to you. As you prepare your company’s income taxes these categorized expenses will be very important.

Run aging reports once or twice a week:

These reports will help you keep up with money you owe and any money owed to you. That is why it’s important that your information stays current. Although QuickBooks’s Dashboard will tell you the dollar amount for unpaid invoices, as well as links to the list, it does not give you information about your own upcoming bills that are due or those that are late.

It’s recommended that you run at least 2 reports, Accounts Receivable Aging Summary and Accounts Payable Aging Summary, at the beginning and the end of the week. Although these reports should be good as is, if you need to modify these reports click on the Customize button.

There should be no numbers in any of the columns with the exception of the first one (Current). If you see numbers beyond the first one, it means that either incoming or outgoing payments are overdue. Click on any number to see the transactions behind it.

Set reorder points on inventory items.


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Inventory-tracking in QuickBooks Online is complicated.


Be sure to keep a good eye on your product inventory levels. As you create an item record (Sales | Products and Services | New), be sure to enter a Reorder point. The Products and Services page tells you how many items have Low Stock or are Out of Stock. You can also see the Qty on Hand and Reorder Point in the table below those numbers. Warning: Inventory-tracking is an advanced feature of QuickBooks Online. Don't hesitate to ask for assistant if you need it.

More to Implement

There are multiple best practices recommend for your use of QuickBooks. Several of them have to do with reports, one of the site’s capabilities that is particularly robust, which many businesses don’t fully engage in because some of them are difficult to analyze. These include standard financial reports like Balance Sheet and Statement of Cash Flows.

If you apply for financing or want to share information about your company’s financial health with a third party, you will need these reports. Their insight can be very useful when making important business decisions.

At Summit CPA we offer QuickBooks consultation. If you would like further information on how we can assist you with your bookkeeping needs, contact our office at 866-497-9761 to schedule an appointment with our advisors.


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