Do you have a QuickBooks Online account but all your balances seem inconsistent with your bank records?
With wrong financial balances in your account, you're left with no understanding of what your financial numbers mean. With Crown Consulting's years of experience handling QuickBooks mishaps, we are going to reveal the number one issue that most small business owners struggle with when keeping their financial accounts up-to-date with their banking records.
Account Balances
While it seems like an obvious aspect of your finances to keep updated, those who try to do their finances while running their businesses find themselves quickly overwhelmed by a quickly growing flow of transactions. Most of the time business owners figure out too late that their financial account has become a tangled, convoluted mess. When tax season comes around, small business owners end up shelling out thousands to accountants to figure out what they owe. Thus, investing in a consistent and deliberate QuickBooks Online Management plan, you can ensure that you will be prepared for any financial situation. We have a specific management plan created to handle accounts that have been left behind and understand the best processes for diagnosing and cleaning up your accounts. By outsourcing this service, you can ultimately take back your financial control while saving thousands in the end.
Each of the accounts below are not just some arbitrary number in your QuickBooks accounts. They are integral components of your everyday business processes and controlling these accounts means controlling your opportunity for profit.
Accounts Receivable
Ironically, one of the most important aspects to your business and cash flow, the money people owe you, is often completely inaccurate in your QuickBooks account. When transactions begin to pile up, you'll find that you have an impossible amount of open invoices. Next thing you know, you're not sure which of your clients you need to contact for unpaid jobs.
This can happen if you use a third-party merchant services app that deposit income into your bank account as a lump sum. When they come through your bank feed, you don't recognize any of the invoice amounts and QuickBooks is unable to automatically match it up for you. It only takes a few weeks of falling behind your bank feed to end up with an unmanageable account balance.
Another account that is involved in this process is called the Undeposited Funds account. At Crown Consulting, we find that many small business owners have a hard time figuring out how to use Undeposited Funds when recording payments on open invoices and their account never goes down. While this may be a confusing aspect of the QuickBooks process, it is an important process necessary to keep your financial records up-to-date.
Accounts Payable
A similar problem happens when keeping your Accounts Payable up-to-date. This account is especially vulnerable when you're in an industry that sells products from other vendors. Do you work in retail, construction, or keep an inventory in any capacity? Then ensuring this account is updated is imperative to your financial strategies.
It can also be incredibly confusing when you don't use billing with every single one of your vendors. Sometimes you're only charged monthly by these entities and billing is just an unnecessary step. When you're trying to clean up your bank feed, however, you can easily accidentally accept an entry as an expense and fail to link it to the proper bill. This can create problems for you later on when you attempt to clean up opened bill payments.
Your relationship with your vendors is an important aspect to your business and ensuring that your payments are received promptly and accurately can help you maintain a sense of professionalism that will help your small business succeed in the end.
The Solution
While the outsourcing solution may seem like a luxury option not available to small businesses Crown Consulting has adapted usual financial management plans in packages that delivers you results in a way that you can afford.
It all centers on QuickBooks Online workflow processes. While often tedious to keep all your account balances completely categorized and updated, it takes a lot of time and consistency: something a growing business owner simply cannot commit to their financial account. With Crown Consulting, we establish plans that offer exactly what you need that can fit within your budget.
Give us a call and we can give you a free hour of our time to analyze your account and answer all your QuickBooks Online questions.