5 Reasons to Get Help with QuickBooks

I remember the first time I heard someone say, “I don’t need an accountant. I have an accounting system to do that.” Yeah, right. Today, that statement is often heard as, “I don’t need an accountant. I have QuickBooks.” Here are 5 reasons why that just might be a mistaken assumption and you should consider help with QuickBooks.

Knowledge

The knowledge I am referring to is not just about QuickBooks, though it certainly helps if someone has familiarity with it. I’m also talking about a strong understanding of good accounting practices. For example, I had a client who contracted to have someone input their QuickBooks data. That was a good decision as this person had considerable knowledge of the flow of information in QuickBooks. Fortunately, however, I convinced this client to let me sit with this person the first time they entered inventory receipts. The reason was that I knew that for the inventory to be correctly recorded that the in-bound freight had to be included. It was clear this individual did not realize this. If the freight has just been recorded as an expense and only the material cost recorded as inventory, expenses for the month would be overstated, inventory value understated, and future cost of goods understated. That is just one example of why you need someone with accounting knowledge to help with QuickBooks.

Pitfalls

There are a number of things during the setup of QuickBooks and its subsequent use that must be done in certain ways or the information you get will be incorrect. An example is the proper method of recording sales. Another is the correct use of what QuickBooks refers to as items. These are just a couple of examples, but there are numerous pitfalls waiting to cause problems.

Best or Correct Version

Someone who is both knowledgeable of QuickBooks and accounting will be invaluable in helping you select the correct version. QuickBooks comes in numerous versions, including ones for manufacturing, retail, contracting, etc. How you process data (including the number of people using QuickBooks), the reports and information you need, and other things will determine the correct choice for you. Do yourself a favor and at least consult with someone knowledgeable during the selection and implementation stage.

Problems

What happens if the information you are getting does not make sense to you? Will you have adequate knowledge to reconcile accounts? Will you have adequate knowledge of the flow of information through QuickBooks to find the cause of discrepancies? This is something to remember as you actually use QuickBooks.

Maintenance

Do you know the things to do to keep QuickBooks running smoothly? How about data cleanup and backups? Do you know the proper procedures to make sure these are performed when they should be and done correctly? An experienced QuickBooks user can probably help you here, but remember a part-time CFO or Controller will also be knowledgeable of additional things that can be crucial.

Efficiency

Okay, I know I said 5 reasons and this is now 6. Well, consider it a bonus. Someone who is knowledgeable of both QuickBooks and accounting will be more efficient at establishing routines and processes to help you get the most out of QuickBooks.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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