Was your company file setup by a QuickBooks professional?

Was your company file setup by a QuickBooks professional?

A well designed QuickBooks file can is essential for getting the most out of QuickBooks. All start-up companies should have their file developed by a QuickBooks professional. While QuickBooks offers lots of customization, there are a number of key features that if setup incorrectly will result in reporting errors and other problems down the road.

To ensure proper use of QuickBooks, it is important to get the Company Preferences correct (Edit menu --> Preferences --> Company Preferences). We recommend the following specific settings for most companies:
  • Accounting
    • Check Use Account Numbers
    • Check Require Accounts
    • Check Show lowest subaccount only
    • Check Warn when posting to Retained Earnings (Important! Only post to Retained Earnings when advised to do so by your accountant or advisor!)
    • Check Warn if transactions are 90 days in the past.
    • Check Warn if transactions are 30 days in the future.
    • Set Closing Date through last reporting period (last year, last quarter, or last month).
    • Always set a closing date password.
  • Finance Charges
    • If your business will assess finance charges, then assign the settings here.
    • 18% annual interest rate is the equivalent to 1.5% per month and is a commonly used percentage.
  • Items and Inventory
    • If your business will track inventory, then check Inventory and Purchase Orders are active.
    • Although it is uncommon, some businesses need to print Purchase Orders, but do not need to track inventory. In this case, this box must be checked.
    • If you need neither inventory nor PO's, then uncheck this checkbox.
  • Payments
    • Check Use Undeposited Funds as a default deposit to account.
    • We recommend this to avoid errors in making bank deposits.
  • Payroll
    • If your business hires employees, then turn on the payroll feature here.
    • Be sure to set your Employee Defaults. This will greatly reduce the chances for errors when setting up individual employees.
  • Reminders
    • Check either Show Summary or Show List for all reminders.
    • This will ensure that nothing important gets missed.
  • Reports & Graphs
    • Set Summary Report Basis to Accrual, even if you file taxes on Cash basis.
    • Accrual reports load much more quickly.
    • Most business use accrual reporting for day-to-day operations, even it they use Cash for taxes.
  • Sales Tax
    • If you business will collect sales tax, select Yes on Do you charge sales tax?
    • Make sure the correct tax codes and tax items are being used.
    • If your business is in a complex taxing jurisdiction, get professional assistance to setup your sales tax settings correctly to ensure that you report, collect, and remit the correct amount of taxable sales and sales tax.
    • Select the correct tax payment frequency.
    • Select the appropriate sales tax filing basis. We generally recommend using Accrual Basis. Discuss with your accountant or taxing agency if in doubt.
Setup a user for each person that will be using QuickBooks. Many of the personal preferences can be changed to match the preference of the individual user. However, we recommend at least the following Personal Preferences be set as listed for each user.
  • Checking
    • Select the default bank account.
    • This will speed up the data entry process, especially if you have more than one bank account.
  • Desktop View
    • Check One Window
    • Check Don't save the desktop
    • Check Show Home page when opening the company file.
  • General
    • Check Automatically open drop-down lists when typing.
    • Check Turn off pop-up messages for products and services.
  • Reminders
    • Check Show Reminders List when opening a Company file.
    • This will help ensure that nothing important gets missed.
  • Reports & Graphs
    • Uncheck Prompt me to modify reports options...
    • Check Refresh automatically.
Setting up a company file correctly requires a well-designed chart of accounts. Many financial reports are based on accounts. If the accounts are not setup correctly, then your financial reports are wrong also. Your accountant may have a preferred account list that you can use. Click here to download our account list templates (Income Statement and Balance Sheet). Feel free to use this and modify as needed to meet your reporting goals (or contact us for an import file).

Other important tasks of setting up a company file correcting include,
  • Configuring the items list
  • Configuring other lists (see Lists menu)
  • Entering your Company Information (Company menu --> Company Information)
  • Configuring your Icon Bar
  • Configuring your Memorized Reports list for quick access to key reports (can also be pinned to Icon Bar)
  • Develop a consistent backup system. Click herefor a free online backup solutions for QuickBooks.
  • And more...
Contact us today to have your company file developed professionally. Click here to fill out an interview form that will give us much of the information we need to get started. We will be in touch with you shortly to get more information as needed.

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