3 Assumptions Not to Make with QuickBooks

We all know that certain kinds of assumptions are dangerous, whether in life, relationships, or business. Here are three assumptions that it would risky to make about QuickBooks:

1. Assuming QuickBooks is easy and you can do it all yourself.

A lot of people think that because you can buy a copy of QuickBooks Pro 2012 for under $200, it’s a simple program. The assumption is that inexpensive software is simple to use, and anyone can set it up and operate it. It’s like Quicken for business, right?

That’s not a very good assumption. QuickBooks addresses the most fundamental financial aspects of your business: cash flow, invoicing, payments, inventory, payroll, and indirectly, taxes and credit. You want all that done right.

If you have an experienced bookkeeper or accountant on your staff, you should be in good shape. If not, it’s probably best to find one who can help you set up and maintain a proper set of books in QuickBooks. They can scale the level of help you need — it need not be a terribly big budget item for you.

2. Assume that all the numbers are always right.

This goes along a bit with number 1 above. You’ve heard the old data processing chestnut, “Garbage in, garbage out”? That is as true in QuickBooks as it is in any information system. You can plug pretty much any kind of numbers into QuickBooks that you want. Because of that, there is no built-in guarantee of correct financial reporting. There’s always the human factor.

A while ago I was talking with a QuickBooks consultant who had a client with a problem: their books were off in accounts payable by $600,000. That’s a little bit of a problem, eh?

It’s an extreme case. But it illustrates how if the bookkeeping processes aren’t correct, and mistakes are repeated over a long period of time, it can make a mess.

There are online training seminars available to help users master the skills they need to use QuickBooks correctly. Or refer to point 1 above and let a pro take a look at your books and see if there are issues.

3. Assume that your computer, and QuickBooks, will start up every time you want it to.

This is an easy assumption to make – but computers are machines, and software is a kind of logical machine itself, in a way. No machine will work right every time forever.

So every day, some QuickBooks user somewhere turns on their computer and Windows fails to boot. Or the network server RAID drive fails in the middle of the day. Or a QuickBooks company gets corrupted.

THEN what happens? Hopefully, a contingency plan is put into motion that had previously been thought through and prepared. One that involves current backups.


Source: QuickBooks and Your Business Blog, 2011

Share this

Latest Insights

Recent posts from our blog

How to plan for seasonal variances in your cash flow

Have you noticed unexpected seasonal variances in your company’s cash flow? If your business is seasonally-based (a lawn care or snow removal company, for example), it’s normal for your cash flow to vary depending on the time of year. Unfortunately, many companies who shouldn’t be affected by the seasons still experience peaks and valleys in […]

Organizational growth and restructuring: Is your business ready to take the next steps?

Are you planning to take your business to the next level? Before you start growing your company, you need to ensure that your organizational structure is prepped for this major shift. Don’t just jump in head first – make sure you follow our key prep tips to keep your growth sustainable and successful.   3 […]

Do you have a file you need to send to us? Would you like to make a payement?