In this How-To video, LongSchaefer member Todd Chamberlain offers insights into how to navigate your QuickBooks Financial Statement. If you’re new to using this powerful financial accounting software, you may not yet be utilizing it to its full potential. That’s where LongSchaefer, a certified ProAdvisor for QuickBooks, comes in. As part of Longschaefer’s wide-ranging financial accounting services, we offer advisors who specialize in your industry - construction, retail, food service, and more - who are prepared to set up your small business for success.
Today, Todd discusses common reasons that your QuickBooks financial statement and your bank account balance don’t line up.
The QuickBooks Financial Statement
Have you been taking a look at your QuickBooks financial statement? Hopefully, you can answer with an easy yes. If you haven’t been looking at your QuickBooks financial statement, you should be. Why? In the event of an audit by the IRS, your QuickBooks financial statement will be considered a reliable source for your auditor to examine. So, if you’re using the QuickBooks software to manage your financial accounting, then you’d be best served by attending to it and making sure it’s as balanced and up-to-date as you can.
There are many common issues which can lead to an improperly balanced financial statement. These issues typically revolve around incorrect input into the software, meaning the user is forgetting or otherwise not entering important information that will keep the record straight.
When evaluating your financial statement, you should expect your assets to have a positive balance. While a negative balance can arise out of normal circumstances, these are uncommon enough that you should expect to find a positive balance.
A few common reasons contribute to improperly balanced QuickBooks and bank statements. For example, you may have deposited funds with your bank, but you’re waiting for the deposit to clear. In this case, your QuickBooks statement will reflect the deposit before your bank will. Another case of improper balance occurs when you have written checks that are yet to clear, in which case your QuickBooks statement will reflect the payment before your bank statement will.
QuickBooks Financial Accounting with LongSchaefer
Keeping your QuickBooks statement in line with your bank is crucial not only for basic financial accounting and potential audits but also for ensuring that your statement lines up with your tax return. This can also be a serious issue. If you’re experiencing trouble with your balances and you need further guidance, seek out the financial accounting help of a certified advisor at LongSchaefer. Our team is specially certified to work with QuickBooks, so we know how to set you straight and get you back to running your business worry-free.
For additional help, give us a call, stop by our office, or set up a free consultation. We look forward to helping you.