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Tips to Boost Efficiency on the World’s Most used Accounting Software

More than 4.5 million organizations use QuickBooks, making it most widely used accounting system in the world. But, many CPAs frequently overlook and underutilize the product’s potential features.

To check with, whether you are using QuickBooks efficiently? Shown below is the list of potential QuickBooks features that you must be using.

1. Memorize Transactions

Every organization goes through with a significant number of transactions recurring regularly, and QuickBooks accommodates the feature of memorizing recurring transactions.

For instance, assume an organization makes the same monthly rent payment. Then, QuickBooks can memorize the transactions and details get automatically entered at regularly scheduled intervals. This feature save time, reduce mistakes and increase accuracy.

Such feature can be used to memorize complex journal-entry templates, like detailed allocations, and entering the actual amounts later. Type Ctrl + M to access the tool.

Memorize Transactions

2. QuickBooks Loan Manager

Several small businesses record loan payment transactions inappropriately, failing to segregate the loan payment into the proper interest and principal amounts according to the loan amortization schedule. Loan Manager offers a solution that allows you to set up each loan with its associated parameters, like term, rate, compounding, fees, balloon payments, etc. Then, Loan Manager will issue the correct loan payment check each payment period, and this will again save time, reduce mistakes and increase accuracy. To access the tool, go to the Banking menu, Loan Manager.

3. Process Multiple Reports

The bookkeepers fail to produce and distribute the mandatory financial reports consistently.

In multiple cases, the process of preparing and printing dozens of reports is very time-consuming. QuickBooks offers a solution called Process Multiple Reports, that enables users to group together dozens of reports (via using the Memorize function) and print them. To access this tool, go to the Reportsmenu, Process Multiple Reports.

Process Multiple Reports

4. Prevent Prior-Period Changes

A popular issue with QuickBooks is how simply users are allowed to enter or edit transactions in prior periods. To restrict unauthorized prior-period entries, set up a unique username and password for each user and set each user’s preferences to restrain user from bypassing the closing date. Then, by giving a password-protected closing date and moving it forward every month as review and adjustments are finished, lock down the prior-period data as the year progresses, as shown in the screenshot. To access the tool, go to the Company menu, Set Closing Date.

Prevent Prior-Period Changes

5. Custom Data Fields

QuickBooks Premier offers 20 generic custom data fields, and QuickBooks Enterprise offers more than 50 content-specific custom data fields. By using these data fields, a smart CPA can overcome several shortcomings in an accounting system.

Moreover, QuickBooks permits users to filter reports using those custom data fields. To use the tool, go to the Customer Center, choose a Customer, then click the Edit Customer button, and then under the Additional Information tab, select the Define Fields.

The information that is entered into custom data fields can also be included in financial reports, on invoices and in all QuickBooks documents.

Custom Data Fields

6. Batch Invoicing

QuickBooks versions 2011 and higher editions enable users to create a batch of invoices in a single process. For instance, a company which requires invoicing 500 customers each month for a $20 Webhosting fee can produce all 500 invoices in single step. The batch invoice functional feature also permits users to search for customers as per the custom data fields and then invoice the resulting group.

To access this tool, go to the Customers menu, and then select Create Batch Invoices ).

Batch Invoicing

7. Editing Templates

Invoices purchase orders, sales orders, customer statements and other documents are known as templates in QuickBooks. These templates are allowed to be edited by rearranging the document and by adding additional columns, text, images, data fields, and custom data fields.

To access such tool, go to the Lists menu, Templates, right-click on a template and then select Edit Template, then select the Layout Designer button.

The templates screen offers an option for downloading additional templates from the Web, also colorful themes for improvising all of your templates.

Editing Templates

8. Remote Access

QuickBooks Remote Access is a Web-based service which allows CPAs to securely log in to their clients’ QuickBooks systems.

Remote Access allows the CPA entry only to the client’s QuickBooks application and data. This also prevents the CPA from accessing other data, like Word, Excel and email files, on the client’s computer.

This service consumes few minutes to set up and, then, the CPA is allowed to log in to the client’s QuickBooks to train users, review the client’s books and, enter corrections and adjustments.

Such type of remote access provides the CPA control of the client’s screen, permiting the client to view the CPA’s mouse actions as the client is trained remotely.

9. Stratifying Reports

QuickBooks offers a Columns tool which stratifies financial reports by several column configurations. This functionality is important for analyzing and scrutinizing a organization’s financials.

To access the Columns tool for any financial report, select on the Columns dropdown menu present above the report.

Stratifying Reports

10. Using Account Numbers

QuickBooks permits to display seven-digit account numbers in addition to 31-digit alphanumeric account names. The advantage is faster data entry (by using a 10 key) and the capability to control the sort order of accounts shown in financial reports.

To use the tool, move to the Edit menu, Preferences, Accounting, Company Preferences tab, and then check the Use account numbers box, as depicted below.

But, activating this option also includes account numbers in the financial statements and reports that is not always desirable. And to suppress account numbers, amend each account and append an account description, then set the Reports-Show Accounts by preference to Description Only. Then, only the account descriptions, rather than account numbers and names, will appear on all financial statements.

Using Account Numbers

11. Fixed Asset Manager

The QuickBooks Fixed Asset Manager (which is included in the Accountant and Enterprise editions) has capability to track those assets according to 6 methods (federal, book, state, adjusted current earnings, alternative minimum tax and other). The running system incorporates several tax methods.

Upon asset dispositions, the system calculates the appropriate gain or loss on sales, also the appropriate amounts of depreciation recapture. Though fixed-asset data allowed to be integrated with QuickBooks, several organizations tend to use the Fixed Asset Manager as a stand-alone product that is recommended, as the effort setting up integration consumes more time. To access the Fixed Asset Manager, go to the Accountant menu, then to Manage Fixed Assets.

Fixed Asset Manager

12. Attach Documents

The Attach Documents functional feature allows attaching electronic documents throughout QuickBooks to attain a paperless environment. When documents are processed, then you are allowed to save them locally on your computer network or on a cloud-based storage facility accessible by all users, also those present in remote locations.

Few of the advantages of a paperless accounting system are:

1. Electronic documents might be available for all the users, even remote users;
2. Locating electronic documents via indexed searching is much faster;
3. Electronic documents are simply easier to include when maintaining reports or email messages, minimizing the costs related with making replicas and sending paper documents;
4. Electronic documents might be easily backed up off-site for enhanced data protection; and
5. Electronic documents minimize costs related to paper documents like file rooms, filing cabinets, and archiving efforts.
To use the tool, select the Attach button with the paper clip icon in any document or template. This choice is grayed out till setup is completed.

13. Imported Credit Card Transactions

Generally, a lengthy credit card statement is time-consuming and difficult to accomplish without making transposition or keypunching errors. In contrast, credit card transaction data are allow to be imported directly into QuickBooks in just a few seconds, and QuickBooks’ built-in logic are allowed automatically to match the expenditures with the appropriate vendor and account number to achieve more efficient processing.

To access this, go to the Banking menu, Enter Credit Card Charges and then select the Download Credit Card Charges option present at the top of the page. Your particular setup and monthly procedures will vary based on the credit card company you use.

14. Intuit Data Protect

The Data Protect service automatically backs up mission-critical QuickBooks data daily to a Web-based storage location. The Data Protect service provides the QuickBooks Backup service in that the backup procedure runs even when your data file is open, and daily backup is saved.

Once installed, select File, Backup.

15. Prepare Letters and Envelopes

This tool provides an assortment of templates and mail-merge abilities for producing custom letters targeting customers, employees, vendors, and others. For instance: of the included templates are, “Bounced check”, “Scheduled delivery notice”, and “Late payment reminder.”

Prepare Letters and Envelopes

You are also allowed to use this tool to create customer-specific letters like new products or service announcements and invitations for chosen customers to attend special VIP sales events.

To access this tool, go to the Company menu, Prepare Letters and Envelopes.

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