10 Most Frequent Errors In QuickBooks And Their Solutions
This article explores 10 of the most frequently reported errors that are faced by QuickBooks users.
Since the release of QuickBooks in the early 1990s, it has proved to be an important tool for businesses. Within a few years, QuickBooks has become the most popular and highest rated software for small business.
The list includes setup errors for example using a number of accounts and sub-accounts, procedural errors that can be using the Write Checks window to pay payroll taxes and many other errors such as not checking the balance sheet statement on a regular basis and not exploring third party options that expand the capabilities of QuickBooks.
1. Not Setting Sales Tax Preferences
In case sales tax is owed on items that is sold by business, the sales tax choices must be established in QuickBooks to keep accurate records. In order to set sales tax preferences, you need to follow the given steps:
Go to Edit—Preferences—Sales Tax icon—Company Preferences—Owe Sales Tax
Select either As of Invoice Date or Upon Receipt of payment.
2. Data file Updation failure
Data file updation can be very tricky. While upgrading QuickBooks from one version to another, sometimes the previous version data file cannot be read by the newer QuickBooks version. Due to this reason, the data files must be kept updated.
Most probably, this happens during the installation process and it requires you to take a backup first.
However, in order to avoid any issues with the data file, ensure that you run a verification on that file prior to the uninstallation of the old version or installation of the new version.
It is better to install the new version side by side with the old version so that you will not have a fallback.
3. Situation when the Chart of Accounts is a Mess
In order to clean things up, it is highly recommended that you combine similar accounts together in a parent-child relationships.
You must try to keep it as simple as possible. Having too many accounts is not a good sign. When you input the data, ensure to enter it in the lowest level account rather than in the parent account.
4. Not Reconciling Accounts
Make sure that the business account register is correct, accounts should be regularly reconciled. This involves checking and savings accounts, taxes, loans and more. In order to reconcile an account, follow the given steps:
Open the Banking section
Input statement dates and end balances.
Step 4 :
After every item in the Checks and Payments column is checked off, the bottom right corner must read zero.
5. Failure in rebuilding of the data files
It may happen sometimes that the verified data will not be upgraded to the newer version. In such cases, you need to go back to the older version and perform rebuilding of your data. For few QuickBooks users, this can be an easy task.
However, while dealing with files that holds the keys to the company’s financial status, others may hesitate. In case the user finds himself in a situation where he needs to rebuild the data, do it in this order:
Backup your data file
Step 2 :
Verify your data file
Rebuild your data file.
In case the rebuild process doesn’t work, you may wish to ensure that data file are located on the local machine.
QuickBooks is assertive that the data file be located on the C:\ drive. It means that even if your data file is on the E:\ drive and it happens that E drive is on the local machine but shared, so QuickBooks thinks it’s on a different drive, QuickBooks could have some issues with the rebuild.
So before the rebuilding of the files, copy the data file to the C:\ drive, perform the rebuild, and transfer the data file back where it is required.
6. The connection to the data file
This is the most common problem, as well as the most challenging problem to troubleshoot. QuickBooks is choosy about the network connection to the data file. In case there is the slightest singultus in the network, your connection may be lost.
In case you are sure that QuickBooks is set-up correctly, you may need to use the QuickBooks Connection Diagnostic Tool that helps you to figure out what’s going wrong. Also, ensure that your firewall and your antivirus are allowing the connection through.
7. Writing Check Without Entering a Bill
When a bill arrives, some business owners might use the Write Check feature to pay the bill. The first step when a new bill arrives must be to input the bill in the Enter Bills window. It will create an accounts payable.
Then, move to Pay Bills and point out the bill you want to pay. It takes care of the accounts payable for that vendor and permits you to use QuickBooks to properly manage your cash flow and plan for future expenses.
8. When the Purchase Order System is not in use
Don’t worry! You are not the only business owner who has failed to use this incredibly helpful system. You are recommended to do the following:
1. You need to create a PO every time you buy a product from a vendor.
2. Ensure that you have received products against a PO.
3. When you view your PO report, you must not have entries over 1 year old.
9. Using the Write Checks Window to Pay Payroll Taxes
Once the payroll has been processed, QuickBooks reporting software keeps track of how much payroll tax the business owes and records that amount in the Payroll Liabilities window.
Although, in case the payrolls taxes are paid in the Write Checks window, the amount paid shall not be properly deducted from the Payroll Liabilities window. Paying such payroll taxes directly in the Pay Liability window will make the proper deductions and keep the books straight.
10. Not Reviewing P&L and Balance Sheet Statements
Such statements give valuable information regarding the health of the business and can help to catch errors before they become costly mistakes. These types of valuable statements should be reviewed regularly.
These are the most frequently errors observed in QuickBooks. Do you need help with any other QuickBooks errors, chat or call us and our friendly and knowledgeable QuickBooks consultants will help you out.