Financial Accounting

Financial Accounting How-To Video

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 trusted business advisors who specialize in your industry – construction, retail, food service, and more – who are prepared to set up your small business for success with our Cincinnati CPAs.

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.

Balance Issues

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.

"Each person has their own definition of success, our job is really to figure out what that is and help them achieve that."

- Ron Schaefer, CPA/PFS

May 2020 COVID-19 Update

In order to comply with the Ohio Health Department Order & CDC social distancing recommendations, our offices are closed until further notice. Rest assured that our established protocols and available technology will allow us to provide the same level of service and quality you expect from LongSchaefer during this time.

The SBA has announced details of how it’s helping small businesses through the Coronavirus outbreak. The IRS is sending payments to families affected by this crisis. 

Please click on our Coronavirus information pages for more information.