The 5 Do’s (and Don’ts) of Proper QBO Procedures
Whether you’re newer to the game or a seasoned pro, it’s easy to make small mistakes while using QuickBooks online – especially while managing your bankfeeds. Unfortunately, these small missteps can quickly snowball into big problems that could spell big trouble for your small or medium-sized business. If you want to avoid this and keep your accounting procedures sharp, read along to learn 5 of the biggest things to keep in mind while working through QBO.
1. Don’t Neglect Your Bankfeeds
It may seem glaringly obvious, but you should be putting in the work staying on top of your bankfeeds. Even the smallest businesses have at least a few transactions they need to sort day in and out and somebody here needs to put in that work (that somebody here is you!). It’s easy to fall into the “I’ll do it later” trap where a day of procrastination turns into your bankfeeds still remaining unsorted months later. Avoid that at all costs. Spend a few minutes a day on it and you won’t have a panic attack trying to fix everything a year down the road.
2. Don’t Mix Up Adding and Matching Transactions
QBO is an incredibly smart piece of technology that can detect when it appears you’ve already entered a transaction before. When that happens, you’ll have the option of clicking “Match” to connect it to a previously recorded payment. That’s the proper way to take care of this, however sorting outgoing money and such can become almost automatic and might mean you accidentally add the transaction instead of matching it. Not good. This results in duplicate transactions that will create a huge headache for you in the future. That’s why you should always be mindful when sorting your transactions. Don’t let this become a mindless task and instead stay focused.
3. Don’t Only Stay in the Bankfeeds Window
There’s no doubt that QBO is fantastic, but don’t fall into the trap of believing the bankfeeds essentially automate your bookkeeping. In short: they don’t. QuickBooks online can be used for everything from tracking your expenses to monitoring sales to managing your invoices and more. As such, there’s a whole lot to do outside of the bankfeeds. You should be utilizing all of QBO’s features for the best bookkeeping possible – even though we understand it can get overwhelming at times. Not only this, but you shouldn’t only be staying in the bankfeeds when adding transactions anyways, because it encourages you to add them without categorizing.
4. Don’t Just Add Every Transaction You Make in QBO
Connected to the last point, you need to ensure you’re properly categorizing all of your different transactions! Simply adding them sends them straight into uncategorized income and expenses which muddies up your profit and loss tracking. To avoid this, keep a close eye on the description and the payee of the transaction to determine where it should be properly sorted. This may not always make the proper category super obvious, but it goes a long way to helping you keep your expenses and such nicely tidied.
5. Be Careful When Matching Transactions and Bankfeeds
This is perhaps one of the easiest mistakes a QBO user can make while managing their books. If you tend to sort things a little mindlessly, you can easily connect the wrong transaction and bankfeed together. Bookkeeping wise, it’s a mess to clean up, but in the real world? Well, it means somebody isn’t getting paid! It also means you think you have more money in your available balance than you do, so stay vigilant. Always be mindful when matching things up in the bankfeeds window.