![]() ![]() If you recognize the transaction but don’t know how to book it, put it in “Ask My Accountant,” even if you don’t have an accountant right now. ![]() As a business owner it behooves you to know where your money is going this can inform the decisions you make. If you don’t know what an expense is, find out what it is before booking it.Pulling everything in as an Uncategorized Expense: Generally speaking, in a solo operation there’s no need to put any transactions into Uncategorized Expense:.There are multiple common errors we see in the way bank transactions are imported: Miscategorizing bank feed itemsĪs wonderful as the QuickBooks bank feed is, it is nevertheless very easy to rush through the bank feed without thinking, and before you know it your pristine books are sullied. This is a good thing: it’s like a security checkpoint to make sure you’ve had a chance to assign the correct account to each transaction to avoid your books being clogged with miscategorized transactions. If you have linked your bank feed to QuickBooks, remember this very important fact: unless you’ve already set up automated rules for bank imports, every transaction from your bank is going to sit and wait in your bank feed until you personally approve it for inclusion. If you haven’t linked your bank accounts to QuickBooks, then we highly recommend that you do so - the sooner the better. Each one of your accounts that you have linked to the bank is listed here. The bank feed is under the Banking tab on the right, then under the Banking tab on the top. Of course it would be appropriate to start this article by focusing on how most of your transactions get into your QuickBooks account in the first place: the bank feed. Here are some common pitfalls we’re accustomed to seeing in the field: Section 1: The Bank Feed Throw in utilities and insurance, plus hopefully some owner’s distributions to keep food on your table, and that might pretty much be the extent of your books.īut it’s still a good idea to hire a trained eye to review your books at least annually, unless you have extensive QuickBooks experience yourself (for this article we’re assuming you’re using QuickBooks Online). You will probably have recurring software expenses and continuing education to purchase. There might be office rent and a supply purchase every month. Tomorrow’s post will be covering cash and accrual reporting terms.When you first start a small business, it might not make sense to hire an outside bookkeeper right away, especially if you’re running a solo service business. If you have any questions about this or a situation that you need advice on, please reach out or comment. We sometimes forget that not all clients know what AMA is. ![]() These accounts come in handy to keep track of questions needing to be answered.Įven after the transition from ask my accountant to uncategorized, our team of bookkeepers use AMA for short in describing the uncategorized activity internally here. When you are a bookkeeper, you cant expect to know how to categorize every transaction.
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