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Common QuickBooksMistakes Clients Make and
How to Fix Them
Presented by:Wayne I Greenfeld- QuickBooks Advanced Certified Pro Advisor- Certified QuickBooks Enterprise Solutions Provider Team Member (ISP)- Appointed to QuickBooks Advisory Council- Appointed to Intuit Trainer/Writer Network-Authorized Reseller of QuickBooks Merchant Services,Payroll Solutions and Checks & Forms
Brought to you by:
Wayne I Greenfeld, Presenter
Prior to entering the consulting arena, Wayne was the CFOof an international real estate development company andwas a partner in a local CPA firm, where as Director ofTechnology Services he was charged with the responsibilityof guiding the team toward his goal of becoming the premierDC area solutions provider for QuickBooks® software. Wayneholds many top-level software certifications and served onthe 2003-2004 and 2004-2005 Accountant and CustomerAdvisory Councils for Intuit, Inc., developers of QuickBooks®
Accounting Software
Wayne is a native Washingtonian and graduate of BenjaminFranklin University in Washington DC
Wayne is an independent Accountantand owner of Wayne I Greenfeld LLC.He and his team specialize inimplementing QuickBooks® basedsolutions as well as providingoutsourced Bookkeeping and Accountingservices to a wide array of clients in theWashington DC area
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Learning Objectives
• Understand data file types and otherinitial considerations
• Explore symptoms and causes ofcommon mistakes
• Determine if these mistakes occurred andthe impact on the accounting records
• Discover alternatives available to fixthese mistakes
• Identify ways to minimize these mistakesin the future.
Module 1Initial Considerations and
Data File Types
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Module 1 Objectives:
In this module, I will show you how to:
• Consider initial preparations before makingchanges
• Understand different data file types
Initial Considerations
• Back up the data file prior toimplementing any changes andperiodically during the process
• Prior to making any changes,print reports to PDF
• For major changes, have theclient sit with you!
They see results of the situationthey created
They understand changes that willbe made in the data file
They know how long it took tocorrect the mistakes
They LEARN
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Working with Different Data File Types
• QBW (Working copy)Log in remotely or at client’s office to work
• QBB or QBM (Back up or Portable file)Client should not work in file while you have it
Changes do not merge back into their file
• QBX or QBA (Accountant’s copy)Many changes will import back into their file
Some limited backward compatibility (1 year)
Must have QB Premier Accountant Edition
• In generalYou need the same year of QB as the client(unless you use remote access)
Module 1 Review:
In this module, I showed you how to:
• Ensure you backup and other considerationsbefore making changes
• Consider the different data file types
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Module 2External Accountant User andClient Data Review Overview
Module 2 Objectives:
In this module, I will show you how to:
• Benefit from using the External Accountant User
• Utilize Client Data Review for managing anddocumenting the engagement
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External Accountant User
• Introduced in 2009
• Provides you with Admin rights except:Cannot access sensitive credit card information
Cannot create or modify users
• Allows you to track your changes separately
Client Data Review (CDR)
• Introduced in 2009with 4 new tools in2010
• Find and fix errorsquickly and efficiently
• Assign and monitortasks and documentthe engagement
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Module 2 Review:
In this module, I showed you how to:
• Login as the External Accountant User and thebenefits
• Use Client Data Review to help manage anddocument engagements
Module 3List Mistakes and
Misclassified Transactions
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Module 3 Objectives:
In this module, I will show you how to:
• Understand mistakes with lists and how toclean up lists
• Identify misclassified transactions and discovera way to reclassify them quickly
List Mistakes – Chart of Accounts
• Common Mistakes:
Duplicate accounts
Accounts duplicate thefunction of customers,vendors, or items
• Symptoms:
Extremely long chart ofaccounts
Balance Sheet and Profit &Loss reports looks wrong
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List Mistakes – Items List
• Common Mistakes:
Duplicate items
Items duplicate thefunction of customers,vendors
One sided items
Inconsistent accountmappings
• Symptoms:
Extremely long items list
Balance Sheet and Profit &Loss reports looks wrong
Review List Activity and Setup
• Common Mistakes:
Changes to lists:
New
Changed
Merged
Deleted
Mistakes in setup of Items
• Symptoms:
Prior year balances changed
Income accounts mayinclude negative amounts
Inconsistent postings (fromitem mappings)
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Misclassified Transactions—Unassigned Class
Common Mistakes:
Transactions posted towrong accounts
Inconsistent posting
Transactions notassigned a class
Symptoms:
Unusual variances inaccount balance
Notice inconsistencies
Unassigned amounts onP&L by Class
Module 3 Review:
In this module, I showed you how to:
• Identify mistakes with lists and methods toclean up lists
• Locate misclassified transactions and how theCDR tool can reclassify them quickly
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Module 4Undeposited Funds and
Receiving Payments
Module 4 Objectives:
In this module, I will show you how to:
• Identify mistakes with undeposited funds andreceiving payments improperly and methods tocorrect the mistakes
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Mistakes with Undeposited Funds andReceiving Payments
• Common Mistakes:In addition to ReceivePayments—used Make Deposits
Deposits directly into checkregister (skipping ReceivePayments)
• Symptoms:Accts Receivable is high withold A/R
Growing balance inUndeposited Funds
Income is unusually high
Bank balance may be OK
Module 4 Review:
In this module, I showed you how to:
• Locate mistakes in undeposited funds andmethods to make corrections
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Module 5Accounts Receivable and
Accounts Payable
Module 5 Objectives:
In this module, I will show you how to:
• Identify payments and credits not applied to theinvoice or bill
• Understand how to write off invoices
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Accounts Receivable—Open Credits or Small Balances
• Common Mistakes:
Payments not applied to aninvoice
Credit issued and not appliedto an invoice
Small balances need to bewritten off
• Symptoms:
Open Invoice report is lengthywith unapplied credits,payments and/or smallaccount balances
Accounts Payable Mistakes
• Common Mistakes:
Client enters bills then writeschecks
Unapplied vendor credits
• Symptoms:
A/P balance high with manyold A/P
Expenses too high
Bank account balance is OK
Numerous unapplied vendorcredits
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Module 5 Review:
In this module, I showed you how to:
• Locate unapplied payments and credits andmethods to use for correcting them
• Write off invoices as necessary
Module 6Credit Cards
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Module 6 Objectives:
In this module, I will show you how to:
• Understand mistakes with credit cards andproper treatment
Credit Card Mistakes
• Common Mistakes:
Only amount paid is enteredinto QB as a guesstimate ofhow to allocate payment
Balance to a single expenseaccount
A/P used to enter bills
Credit card balances notreconciled
• Symptoms:
Credit card register balanceonly increases
Bank account balance looks OK
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Module 6 Review:
In this module, I showed you how to:
• Identify credit card mistakes and properprocedures for credit card transactions.
Module 7Sales Taxes, Payroll Taxes andReconciling after Corrections
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Module 7 Objectives:
In this module, I will show you how to:
• Understand mistakes with Sales taxes andPayroll taxes and methods to fix them
Sales Tax Mistakes
• Common Mistakes:
Clients write checks topay taxes
Sales taxes not set upproperly
• Symptoms:
Sales tax payableappears too high
Sales tax expense
Pay Sales Tax dialog doesnot show previouspayments
Sales taxes notcalculating properly
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Payroll Tax Mistakes
• Common Mistakes:
Clients write checks topay payroll taxes
• Symptoms:
Payroll liabilities higherthan expected
Payroll tax expensehigher than expected
Bank account is OK
Payroll tax returnsshow no balance due
Module 7 Review:
In this module, I showed you how to:
• Identify mistakes with Sales taxes and Payrolltaxes and different methods for correcting themistakes
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Module 8Inventory
Module 8 Objectives:
In this module, I will show you how to:
• Understand inventory mistakes
• Troubleshoot to make corrections
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Inventory Mistakes
• Common Mistakes:
Incorrect and/orinconsistent inventoryprocedures
• Symptoms:
Inventory valuationsummary report does notappear correct
Inventory quantities arenegative or too high
Average cost appears toohigh, too low or is zero
Asset value does not agreewith GL
Module 8 Review:
In this module, I showed you how to:
• Identify mistakes in inventory
• Use reports or CDR tools to troubleshoot andmake corrections
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Module 9Prior Period Discrepancies
Module 9 Objectives:
In this module, I will show you how to:
• Identify changes to prior period balances
• Understand the possible causes of the changes
• Discover tools and reports to help adjust them
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Prior Period Balance Discrepancies
• Common Mistakes:
Users record, modify,delete and voidtransactions
Users never enter yearend journal entriesprovided to them
• Symptoms:
Ending balances usedby the tax accountanthave changed from yearto year
Reports to help with Prior Period Discrepancies
• Several Reports tohelp troubleshoot
Go to Reports>Accountant & Taxesto find:
Audit TrailClosing DateException reportVoided/DeletedTransactions
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Set a Closing Date Password
• Set Closing DatePassword
Necessary for the ClosingDate Exception Report
Go to Edit>Preferences>Accounting>Company
Starting in QB 2009, you canset the closing data passwordin the Accountant’s Copy tosend back to the client
Module 9 Review:
In this module, I showed you how to:
• Examine prior period balances to identifychanges
• Determine possible causes of the changes
• Utilize CDR tools and reports to help adjustthem
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Most Important Fix of All!
Train your clients to use QuickBooks properly to
eliminate these Mistakes in the future.
Review
• Understand data file types and otherpreliminary considerations
• Explore symptoms and causes ofcommon mistakes
• Determine if these mistakes occurred andthe impact on the accounting records
• Discover alternatives available to fixmistakes
• Identify ways to minimize these mistakesin the future.
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Thanks for Participating!Presented by:Wayne I [email protected]
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