Quickbooks is the software of choice for small and medium-sized businesses looking for an inexpensive software package that can be use by a non-accountant with a minimum amount of CPA/accountant supervision.
Why should I use Quickbooks?
Quickbooks performs many accounting functions, such as accounts receivable, accounts payable, time and billing, preparation of estimates and job costing. Quickbooks also performs many payroll functions, such as calculating payroll taxes, printing payroll checks, and completing appropriate tax forms. The software allows you to print out a balance sheet and income statement for any period during the year or even for comparable periods.
What is the cost of Quickbooks?
There are several versions ranging in price from roughly $200-$500. You can probably get three to five years use before the version is sunseted. Basic payroll processing will cost approximately $150 per year for tax table updates. Quickbooks offers higher levels of payroll service similar to ADP and Paychex for substantially more per year. In addition to the cost of the software you will have to order new checks that are compatible with Quickbooks and allow you to print checks to vendors and employees directly out of the software.
User Caveat
While Quickbooks is easy to use compared to other accounting software products, many users make the mistake that they can generate accurate financial statements without help from their CPA or from a knowledgeable bookkeeper. Unfortunately this is not the case.
We have had several new and existing clients that do not have any accounting expertise try to “go it alone” with disastrous results. We say this not because we are looking for more work, but because our experience has shown that having us spend a few hours from time to time reviewing your Quickbooks file will prevent much bigger and expensive problems from developing in the future.
How can Halla Marlowe Coutant & Company assist you with Quickbooks?
- Custom installation of the latest version of Quickbooks
- Initial setup of your company’s file
- Transfer of account balances from other accounting software
- Monthly, quarterly or annual review of accounting data
- Review of payroll activity
- Conversion of Quicken to Quickbooks
- Quickbooks training
Where can I find more information about Quickbooks?
You can get more information about Quickbooks at quickbooks.intuit.com. If you have more questions you can email Jim Marlowe in our office at jmarlowe@hmcco.com or call him at 214-373-8117 x12.
Tricks and Traps for Quickbooks
- Did you know that American Express and Quickbooks now offer credit cards with internet access that allow you to download your credit card transactions directly to a credit card liability account in Quickbooks?
- Do you have accounts payable showing up on a cash basis balance sheet? The reason is that you have paid a bill on a date prior to the date entered on the bill that was entered in the accounts payable system. To correct go back and identify the bill and correct the date so that it is prior to the date when the payment was received.
- Do you have an amount in undeposited funds on your balance sheet even though you have deposited in the bank all the money received from clients and customers? The reason for this is that you have recorded a deposit that was not assigned to any outstanding invoice. Run a customer balance detail report and look for customers with credit balances in their account. To correct this problem, you should go back in and create a customer invoice for the amount received.
- Have you gone in to reconcile your bank account and your beginning balance in the reconciliation window does not equal the beginning balance on this month’s bank statement? One of two things have happened. You have either changed a cleared mark on a previously cleared transaction or deleted a previously cleared transaction. This is particularly difficult to reconcile. Try doing a “find” in the checking account register for the amount that you are off. Compare your outstanding checks and deposits to the outstanding checks and deposits on the previous month’s checking account reconciliation report that you should have printed out. To prevent this from happening in the future, make sure you have the option turned on where the program asks you if you want to accept the change to a cleared transaction.
There are two ways of handling credit card transactions in Quickbooks. If you have and will always pay off the entire balance due on your credit card account each month, then you can simply write a check to pay the balance and provide split transaction detail categorizing the transactions into the appropriate expense accounts. If you do not pay off the balance each month or if you have paid off the balance in the past and cash flow is tight to the point where you are going to pay less than the total amount due, then you must create a new liability account for the credit card, enter and code each charge and code your payment to that liability account. If you do not do this, then your accountant and the IRS have no way of knowing what the payment was for.