3 Reasons to Keep QuickBooks Current

Most all of us have faced a situation where we were forced to catch-up on a lot at one time. It’s not fun. Even something as simple as cleaning out a basement or garage can seem overwhelming. Record keeping can be the same, especially for a business. Since I work with QuickBooks I know how difficult it can be when trying to get things current. In the process of helping a client get QuickBooks setup and operating I have had a chance to see just how difficult and discouraging it can be when starting from several months behind. To say the least, it is highly time consuming and increases the likelihood of errors. Here are 3 reasons to keep QuickBooks current.

It’s Less Stressful

Just as cleaning out and rearranging your garage or basement after years or months of neglect can be discouraging and stressful, the same applies to playing catch-up with QuickBooks or any accounting system. If you’re planning to start using QuickBooks, I encourage you, if at all possible, to do the necessary planning and start clean at the beginning of a year. If you wait several months into a year and want to capture detailed information for the months that have passed, entering all the necessary data can be time consuming and fraught with error. In essence you have started the process in a manner that fails to keep QuickBooks current. The same applies once you have gotten data for past months entered. You simply must keep current, preferably on a daily basis.

You Will Reduce Errors

When you enter data in QuickBooks on a regular and current basis you have the time to evaluate the best way to accomplish a task. For example, you may decide that a non-inventory part makes more sense than using an inventory part. Unfortunately, under time pressure you may by default choose the wrong item type. We all make poor decisions when rushed.

The Information is More Meaningful

Let’s face it. Most businesses need to know where they stand in real time. If you find out several months after the fact or if you lack information that is current and accurate, you are forced to make decisions at a disadvantage. Think about it. If you go to buy a car you have preferably researched the cars you are considering to know consumer and expert ratings, prices ranges, etc. It’s the same with making business decisions. You need current data, and that means staying up-to-date on your record keeping, particularly with your financial data.

I hope you can begin to understand why it is so important to keep QuickBooks current. You want your business to succeed, and to do that you need to make the right decisions. That is much easier with current and accurate information.

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As always, your comments are welcomed.

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