Organized Bookkeeping

Massive QuickBooks Problems? Years Even?

One of the hallmarks of QuickBooks is that it is easy to set up.  One of the other hallmarks it also seems to be the most system prone to posting nonsense entries.  Therefore, unless you have an outsider look at your company file.  It’s very prone to being incorrect.

Now that most businesses have transitioned to doing their own payroll and federal taxes, it’s even more likely that the QuickBooks file is incorrect.  Here are some symptoms of misbehav’n QuickBooks Files.

  • Undeposited funds has a large balance.
  • Cash is negative
  • Inventory is Negative
  • Payroll is incorrect.
  • Fixed Assets are posted as expenses.
  • Bank Reconciliations have not been completed.

All of these things are symptoms of a disease.  The I-Don’t-Want-To-Do-Complicated-Things disease which is closely related to I-Don’t-Want-to-Hire-A-Bookkeeper-Because-They-Are-Expensive disease.

If you as the business owner can see these things are incorrect, then it’s time to get a second opinion.  Crack open the Find-A-ProAdvisor site and get some quotes.  They can either give you a quote for fixing the problem or training you on how to fix the problem.

Remember that Bookkeeping requires 10,000 hours of practice to get it right.

If you can’t afford to get a quote, consider visiting the SBA offices.  Sometimes they have consultants that help you for pro bono.  They are only at selected offices though.


Check your AR reports.  Make sure all the customer payments have been posted.  If they have been posted, check to see which bank account they were posted to.  Chances are that the QuickBooks defaults are still in place.  There is a pretty good chance that they were posted to undeposited funds.  Go to the ‘make a deposit screen’.  There is a chance that all those payments are waiting to be posted to your bank account.

If so, Get out your photo copied deposit sheets, your bank statement and start posting them on the appropriate date.

If you didn’t make a copy of your bank deposits, I’ve got some bad news for you.  This can be expensive to fix.  Either you have to ‘assume’ which deposits match which bank account deposit dates or you can order deposit copies from your bank.  Most banks charge for that service.

Either way, this can take days or weeks to untangle.  This is the process that takes bookkeepers so long to complete.  It’s like a giant word jumble, crossword puzzle or logic puzzle.

If I deposited $400.00 on the fourth, but my customer payments equal $600.00, what happened to the additional $200.00.

Now imagine doing 52 weeks of those puzzles.

Now imagine doing this for 3 or 4 years for these puzzles.

*fans reader*  Have you regained consciousness yet?  I didn’t mean to frighten you so!

Arguement for making one giant correction:

Now some people would suggest that you do one giant entry and not notice the money leaking out of the company.  It’s easier.  It can be accurate.  There is no legal requirement that you can’t do it.

True, but what if the reason you were missing all that cash was employee theft?

Resolution:  Try to decide which process makes you the most comfortable.  Do consult a ProAdvisor or CPA to check the company temperate.  Remember there can be a trade off between accuracy and difficulty, find your comfort level.