Top 3 Tips for Quickbooks Online

Quickbooks Online is the global cloud accounting software package offered by Intuit. Here at KFH Accounting Ltd, we are big fans of the software and use it for our practice on a daily basis. We have enjoyed features such as being able to run instant reports at the click of a button, time saved gained from the direct bank feeds and being able to upload receipts directly into the software, via the mobile app.

If you are new to using Quickbooks Online, based on how we use the system ourselves to manage our practice financials, here are our Top Three Tips:

  • Get into the habit of updating your bank feed via the software, daily (or at least weekly) so that the transactions don’t build up

    • Like all accounting software packages, Quickbooks Online can’t give provide accurate reports if you have not reconciled your bank transactions. This means you need to go through the ‘For Review’ tab on each account you have linked up and confirm to Quickbooks whether the account categorisation / treatment they have suggested, is correct.
    • If you try to run a profit and loss report and have ten transactions ‘For Review’ you will soon realise that you are only getting half the story as Quickbooks won’t include them in the report if they are in ‘For Review’ so go through and categorise these before you run any reports.
  • Use the Undeposited Funds Account for cash receipts

    • If you receive cash receipts, this is the best way to record and issue receipts for them. Undeposited funds is known as the ‘online desk drawer’ and represents cash that has been received but not physically banked by the business as not every business goes to the bank daily.
    • If you record the payment as cash and select your normal business bank account, you will automatically have a mismatch between your bank feed (which brings in live data from the bank and your Quickbooks balance, as by selecting the normal business bank account as receiving the payment, Quickbooks assumes you’ve gone straight to the bank once you received the payment).
    • To avoid this mis-match, make sure you select ‘Undeposited Funds’ from the payment method.
    • What this does, is enable you to issue out receipts of payment received, to the customer and also puts it in a holding account until you’ve gone to the bank.
    • When you do deposit the money, all you need to do is press ‘Find Match’ on the banking screen and you will see the payment receipts issued.
    • Tick those payment receipts that apply and then it will update your Quickbooks balance to recognise those payments have been physically banked.
  • Use the mobile app regularly to create Expense transactions

    • It is really easy when you are busy, to forget about employee expense reimbursements, such as business mileage or employee expenses from say being on a training day. The Quickbooks app is super easy to use and can be used on a train or perhaps when you are away from the office, to carry out a number of tasks. You can send out estimates to clients, reconcile your ‘For Review’ items and also create expense entries on the go! Remember you can always fill out the bare minimum details while on the go and update with more details (ie a Suppliers address for example) when you are back on the office. It’s a great way of not being worried about what would happen if you lost the paper receipt which is easily done!

These three tips are only the tip of the iceberg as to how Quickbooks Online can help you save a ton of time on your bookkeeping! Plus, it gives you the ability to really understand your business financials which is crucial to be able to make business decisions going forward.

If you’d like to try Quickbooks free for 30 days, simply give me a call!