---
title: So You Think Halloween is Scary? Try Doing a Clean-Up in QuickBooks
description: Here are some of the most common errors we find in clients' Quickbooks files.
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## So You Think Halloween is Scary? Try Doing a Clean-Up in QuickBooks

** Oct 25, 2022 12:33:26 PM ** [Cheryl Coyle](https://www.budgetease.biz/blog/author/cheryl-coyle) ** [QuickBooks](https://www.budgetease.biz/blog/topic/quickbooks), [Bookkeeping](https://www.budgetease.biz/blog/topic/bookkeeping), [accounts receivable](https://www.budgetease.biz/blog/topic/accounts-receivable), [small business bookkeeping](https://www.budgetease.biz/blog/topic/small-business-bookkeeping)

![bookkkeeping problems](https://www.budgetease.biz/hs-fs/hubfs/20221025_101601.jpg?width=300&height=225&name=20221025_101601.jpg)We are routinely contacted by small business owners who have made errors in their QuickBooks files. Mistakes range from not too bad to downright scary for the average business owner or inexperienced bookkeeper. Some of the things we routinely correct are:

## Multiple Tax IDs

Every Tax ID should have its own QuickBooks Online file. Having multiple ID numbers in one QBO file will result in mass confusion and erroneous financials. It’s not easy to unravel multiple entities. We strongly advise you have a separate QBO file for each EIN number.

## Transfers

Using transfers incorrectly is a mistake we see with nearly every QuickBooks file. Erroneous transfers are one of the top reasons we see duplicate transactions. Normally incorrect transfers span over years and are time-consuming to correct.

## Undeposited Funds

If you record a payment to undeposited funds and then add the deposit in the bank feed as a sale, you have overstated your income. The correct process is to receive a customer payment, open a deposit, and batch the checks together you are depositing to the bank in one single deposit.

## Products & Services Not Set Up Correctly

It’s essential to set up products and services if you plan to provide customers with an invoice or sales receipt. Make sure to point income to the correct revenue account to keep your reports accurate.

## Duplicates in the Chart of Accounts

It is common to see multiple accounts in the chart of accounts for the same expense or income. In addition to making your financial statements looks sloppy, duplicates in the chart of accounts will create confusion and mis-postings of transactions.

## Using Header Rows Instead of Subaccounts

Posting transactions to a header row instead of categorizing transactions to the appropriate subaccount creates confusing and unprofessional financials. Make sure to use the subaccount instead.

## Rules

Using rules can be great; however, unless you know how to set them up properly, rules tend to create inaccurate categorizations and duplicates.

## Don't Believe QuickBooks

Despite its best efforts, QuickBooks will often suggest a category or payee that is completely incorrect. Always open transactions in the bank feed to see who the payee is and categorize them correctly.

## Relieving Accounts Receivable

Make sure you apply customer payments to outstanding invoices. If you don’t, you will have a ton of open invoices and your accounts receivable will be incorrect. 

## Accounts Payable

Post payments you make to vendors to their bills. Not doing so will overstate your payables.

## Memorized Transactions

Much like rules, memorized transactions theoretically save time. What normally happens is the memorized transaction changes or expires but is still being entered behind the scenes. Left unchanged it will result in duplicates, erroneous accounts payables, and accounts receivable.

## Too Much of a Mess?

Imagine having most of the errors above in one QuickBooks file. We see it all the time. The good part: we love to fix QuickBooks files that are scary to less experienced bookkeepers. Let us help you make QuickBooks work for you and ensure your financial statements are correct. Find out more [HERE](https://www.budgetease.biz/) or reach out to us to discuss! 

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#### Written by [Cheryl Coyle](https://www.budgetease.biz/blog/author/cheryl-coyle)

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