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Mastering QuickBooks: Turning Financial Puzzles into Clear Solutions

Jan 11, 2024 12:46:00 PM Kathy Dise QuickBooks, Small Business, Nonprofit, Start-ups, Bookkeeping, Profitability, Accounting, payroll, Banking, Biotech

Mastering QuickBooks: Turning Financial Puzzles into Clear Solutions

Mastering Quickooks

Catching up on QuickBooks is like solving a puzzle: Each transaction is like a puzzle piece that needs to be placed in the correct account. Just as you would take your time to ensure that each puzzle piece fits correctly, you should take your time to ensure that each transaction is entered into the correct account.


There are several ways to catch up on your QuickBooks when you have fallen behind. One of the most efficient ways is to follow a structured approach. Here are some tips to help you:

  1. Organize the Project: Make a list of everything that needs to be done and the corresponding documents needed to complete the work. Prioritize the list so that you are as efficient as possible.
  2. Collect: all the bank, credit card and loan statements for all accounts needed to be brought up to date. Payroll Registers/Summaries are also a must. Organize them in an electronic file so they are easy to retrieve.
  3. Verify: that all transactions not already in your bank register in QuickBooks are in the Bank Feed. Connect or reconnect your bank accounts so they sync with QuickBooks for easy entry.
  4. Ensure Accurate Starting Position: Best to have a starting position at year end so you don’t have to enter mid-year profit and loss information. Make sure you have an accurate starting position. You can get that from bank statements and/or the tax return. Build an accurate Balance Sheet with this information. You may need to adjust the existing balance sheet to make it accurate. You can use Opening Balance Equity to offset your entry.
  5. Enter Transactions One Month at a Time: Go one month at a time entering transactions from the bank feed to the register. Enter payroll correctly, and loan payments split by interest and principal.
  6. Check reports for accuracy: Unpaid bills, Open Invoices, undeposited funds. Then look at the P&L and Balance Sheet to make sure that everything for that month is entered correctly. This review is crucial to assure that you are putting a transaction into the right account. Many people skip this step or find it more satisfying to enter transactions for one bank account then another then then payroll for the entire period you are catching up. Sadly this means that if you are making a mistake you are not catching it until you are done. That mistake is made over and over again and will take a 10 times the time to fix it.
  7. Reconcile Bank Accounts: Bank reconciliations are important. If there are uncleared transactions, you need to determine if they should be cleared before or after the bank reconciliations. Best to reconcile after you have
  8. Other Considerations: Ensure undeposited funds are at zero or can be explained. Uncleared items could be duplicates. It is best to check at the end of each period that you reconciled that the uncleared items are valid and address at that time.

I hope these tips help you in your catch-up work. If you have any further questions, please don’t hesitate to ask.

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Kathy Dise

Written by Kathy Dise

Kathy has over 30 years experience helping small businesses succeed. As a commercial lender, commercialization expert and now as a QuickBooks diamond level advisor, Kathy understands the challenges small business owners face. Her experience helps business owners quickly accomplish their financial goals. As the owner of BudgetEase, Kathy works with clients to develop a plan to efficiently process 1,000s of small transactions so owners can make informed decisions. She lives in Shaker Heights, OH with her husband Ralph and enjoys golf, curling and walking in Cleveland’s fabulous Metro Parks.