Money is the score card for your business. It summarizes all your exchanges: buying, selling, paying for services and so forth. There are thousands, if not millions, of these transactions each year. Bookkeeping software turns financial exchange details into information. Standardized financials summarize the exchanges. Other reports slice and dice the transactions from different viewpoints.
Going off into the ditch?
Intuit claims it’s easy to get started with QuickBooks. Unfortunately, improper setup can distort your financials and cause other problems that are expensive to fix later on. Typical problems include
- Using the wrong version of QuickBooks,
- Defining accounts that don’t work for you and
- Distorting the value of your company.
Your books need the support of a good file system. Paper is the source of most financial information. Important papers include statements, payroll records, bills and receipts. Your account loves papers, so does the IRS.
- Every business owner should open the bank statements.
- Copy checks you receive and file them.
- Write guidelines before throwing stuff out.
Don’t believe everything you see
Use QuickBooks to build trust in your financials. Business owners have a feeling for what is going on. The numbers on the financials are only as valid as the underlying details. They should represent reality — it doesn’t matter whether or not you like the answer.
- Do things make sense?
- Is something missing?
- Need some help? Here are some tips.
Are you willing to look in the mirror? Give us a call when you believe your books don’t represent reality.