Any business owner just getting started with QuickBooks bookkeeping will know how challenging it can be. Not only do you have to set up your account properly at the beginning, but you also have to stay on top of day-to-day and month-to-month tasks.
The good news is, with the right set-up and a solid understanding of how to reconcile your QuickBooks, you’ll avoid 90% of the problems beginners will encounter. This blog will teach you how to customize your settings and get your QuickBooks in working order, and will also give you some tips on how to reconcile your accounts correctly.
Getting Set Up Properly
There’s a lot of customization you can do for your account, whether that’s changing the fonts and colors on your invoices, or creating a dropdown menu that’s tailored to your go-to needs.
Go to the gear icon in the top right corner, then click the “accounts” tab, then settings, then “sales.” Here, you’ll be able to customize the look and feel of your invoices. Play around with things to see what works for you! This is where you’ll be able to change those colors and fonts to match your branding and get your invoices looking professional. Add in business and vendor addresses that will automatically populate when you send an invoice. You can also click on “emails” to personalize the message that gets sent with automated client invoicing.
Setting Up QuickBooks Payroll
To set up your payroll, head to the gear icon, then “Payroll,” where you’ll be able to subscribe to QuickBooks’ payroll platform. You’ll need your business tax information here, so make sure you have it handy.
The next step is to head to the payroll tab on the left hand menu to input employee information. To get started, you’ll need to have completed W4 forms from your employees, plus their bank account information if they want to receive direct deposits, and any past pay stubs you’ve paid employees. Once you’ve filled everything out, you’ll also need to connect your bank so you can transfer money. From here on out, you’ll access the Payroll tab on the left hand menu.
SETTING UP QUICKBOOKS BANKING
The banking tab will let you connect your account directly to QuickBooks. Know that QuickBooks billing and QuickBooks payroll are separate, so you’ll need to input your bank account info multiple times on QuickBooks (once in the banking section and once in the payroll section) before everything is set up properly. You’ll even need to add bank info a third time if you choose to accept payments via invoicing/QuickBooks links–so don’t be surprised.
To pay your bills via QuickBooks, head to the “+New” tab. Hint: This tab is the easiest way to access most of the functionalities you’ll need in QuickBooks! Select “pay bills” under Vendors, review the payment info, and submit. If you prefer not to pay bills directly through QuickBooks, Bill.com is another excellent option that is easy and efficient to use.
Another helpful tidbit: Under the “My Accountant” tab (which is under the bookkeeping tab if you’re in the business view–look for the little calculator icon!), you’ll be able to share your QuickBooks with a bookkeeper or accountant. QuickBooks offers bank-level security here, so rest assured your financial records are secured!
Reconciling in QuickBooks
Reconciling your books is an essential part of bookkeeping, but it can also be one of the trickiest. Here are my top tips for making this process as smooth as possible!
One of the most important things to watch out for is which category you put your transactions into. Pay attention and make sure the category you’re using actually applies! Sometimes, automatic transactions can mis-categorize your expenses and will mess up your accounts. Go through each and every transaction to make sure it’s where it should be–doing this every month will save you a headache later on.
Another place many business owners run into trouble is the undeposited funds function. When you receive a payment, it should say “deposit to undeposited funds” rather than going directly into your account. From there, you’ll need to match up bank deposits with your undeposited funds. Warning–if you’re not doing this, it means you’re duplicating your income, which can cause some serious problems down the road.
Resources for Extra Support
If you find yourself struggling with QuickBooks, stop right there! There are TONS of resources and tools to make your life easier, and it’s absolutely worth using them to save yourself time and energy.
For other resources to learn more about managing your QuickBooks, be sure to check out some of our other blog posts, too:
- QuickBooks Resources For Small Business Owners
- How To Set Up QuickBooks The Right Way For Your Business
- QuickBooks Clean-Up Tips & Tricks
For more detailed, step-by-step guides that walk you through all the QuickBooks functionalities you need, KC Virtual Bookkeeping also offers QuickBooks video courses. You’ll be able to download the video and follow along at your own pace while getting a QuickBooks walk-through from a professional bookkeeper. Head to our courses page to explore the course that will be best for your business.
