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It’s Time to Cleanup and Update QuickBooks

Published by Angie Douglas on 31 Jul 2020

Are you are still waiting on a few old unpaid invoices? Maybe you have some bills you haven’t paid yet? It’s time to finally wrap it up and so you can move on. Once the cleanup is done, you can start putting your focus on keeping your current bookkeeping up-to-date.

With all that’s happened this year with the pandemic, you may find you’ve neglected your bookkeeping in areas such as; your finances, taxes (now due on July 15th), income, expenses, employee issues, sales quotas, etc. So you may need to make some adjustments here and there. It’s time to clean up the books. Below are five things you can do to bring you accounts up-to-date and focus on your current day to day business.

  1. Create 2 critical A/R reports: Accounts Receivable Aging Summary and Open invoices. This will let you know where you stand for better or worse. It will tell you who owes you and how big the issue is. It could also be disappointing to see how many payments are still past due. To find these reports, click Reports in the left vertical pane and scroll down to Who owes you.

QB updates

You can find out fast who is past due in Open Invoices.


This would be a great time to develop strategies to be proactive and keep your accounts receivable up to date in 2020. 

  1. Create two critical A/P reports: Accounts Payable Aging Summary and Unpaid Bills. Add “Stay Current with Bills” to your list of 2020 goals. But first, you have to see where you stand right now. Click Reports again and scroll down to What you owe. 
  1. Create statements for all customers who are past due. Your customers may be having a difficult time, too. So think about giving them a chance to catch up. But you do need to get your accounts receivable current, so send out statements.

Things slip for your customers toward the end of the year, too. Give them a chance to catch up. Their invoices might have gotten lost in the year-end confusion, but you need to get current with your accounts receivable. So, send statements to those with amounts overdue. Click +New at the top of the left vertical pane, then go to Other | Statement. 

  1. Time to clean up your customer and vendor lists. You may get new customers and vendors or even lose a few from time to time. However, unless you update your records in QuickBooks these records will be there forever. Once you’ve determined that these accounts no longer have activity, you can make them inactive files. All you have to do is click Sales | Customers in the left vertical pane. Next, just click the box in front of each customer/vendor you want to make inactive and then click Batch actions | Make inactive. 

 QB tax rate

Cleaning up your customer and vendor lists will save you time in the future. You will save time in the future by cleaning up your customer and vendor lists. 

  1. When you log in to your dashboard, always look carefully. The most important block is in the upper left corner. This will help you keep QuickBooks cleaned up because you can see at a glance how much money is unavailable due to unpaid invoices and the amount of money that needs to be deposited.

What else can you do to cleanup QuickBooks? There are multiple things you can do. For instance, if you carry inventory, run the Physical Inventory Worksheet report and it will help you decide where your purchasing emphasis should be.

You can also generate critical standard financial reports under For my accountant in Reports. These are the reports that can provide an overview of your finances, especially if you want to apply for a loan or request a business valuation.

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 Virtual CFO.


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