4 Most Common Quickbooks (for Mac) input errors
This is the time of year when many accountants and business owners have to clean up their mistakes from the previous year. For businesses that run on Mac computers, there can be a lot more clean-up work than their PC-anchored counterparts. To follow are the most common (and time consuming) errors faced by companies using Quickbooks for Mac.
1. Writing a check AFTER you enter a bill
QuickBooks is designed with the expectation that you will enter each bill as it arrives using the “Enter Bills” window. Then, when all bills are entered, the user is expected to pay the bill in the “Pay Bills” window. This is especially confusing to small business owners who use their accounting software in brief sit-downs consisting of just a few tasks at a time.
Why is this an issue? Because in QuickBooks for Mac, if you enter a bill, and then pay it afterward using the “Write Checks” entry window, you will actually record the expense twice. In addition, you will still have an “unpaid bill.” This will in turn create an outstanding accounts payable line item.
This is a big issue that appears small. If you don’t follow the steps appropriately, QuickBooks for Mac will crumble when attempting to plan future payments and manage cash-flow.
2. Duplicate expenses: entering a charge and a bill
This common mistake can take dozens of hours to remedy. When you receive a statement from your credit card company, do not enter it as a bill and then write a check to remedy that bill.
From the Banking menu, select “Enter Credit Card Charges”
Choose the charge/credit card
Enter all your charges and any credits/refunds
[Also on AcctVantage: Top 3 reasons to shed QuickBooks]
3. Skipping “Receive Payments”
When writing checks, many QuickBooks for Mac users will, upon receiving payments, enter sales invoices and then make deposits without going through the Receive Payments step. The “Make Deposits” screen is a logical step, but it makes very messy books.
When you receive a payment:
Apply it to the appropriate invoice.
When you receive a payment, which is meant to pay an invoice, but enter it in the Receive Payments window off the Customers menu, QuickBooks automatically puts the money into the Undeposited Funds account.
If you do this, a quick remedy is to use the “Make Deposits” window in the Banking menu to move the payment from the Undeposited Funds account to your bank account.
[New on AcctVantage: Top 3 reasons to shed QuickBooks]
4. Homeless & Lost Inventory Items
Do you keep inventory? Make sure that inventory items are assigned to the right accounts! Each item should have three titles to watch:
Inventory Asset account
Cost of Goods Sold account
QuickBooks automatically sets up an Inventory Asset account (necessary to track the current value of your inventory) and a COGS account (to track costs on each item).
You must also set up sales income accounts to track the income you make from selling your inventory items.
Here’s how to check yours:
Select the LIST menu
Your Item list will show the name, description, type, posting account, and price.