QuickBooks Online clean-up: 7 problems a books health check finds

QuickBooks Online makes it easy to get transactions in. It is just as easy for small errors to pile up until year-end, when your accountant finds them and bills you for the time. When we run a books health check on a QuickBooks Online file, these are the seven problems we see most.

1. Duplicate transactions

The same expense entered by hand and then imported from the bank feed. Same payee, same amount, a few days apart. Each one overstates your expenses and understates your profit.

2. Customer payments not applied to invoices

A payment is recorded, but not against the invoice it paid. The invoice still shows as unpaid, so your receivables look higher than they are and customers get reminders for bills they already paid.

3. Old open invoices and bills

Invoices more than 90 days overdue are either real collection problems or mistakes. Either way, they need a decision before year-end.

4. Uncategorized income and expenses

Transactions parked in an uncategorized or "ask my accountant" account. Every one is a question someone will have to answer later.

5. Sales tax on the wrong code

Exempt sales taxed, taxable expenses without tax, or BC PST mixed into GST accounts. These flow straight into your GST/HST return.

6. Bank and card accounts not reconciled

If the balance in your books does not match the statement, something is missing or doubled. The longer it waits, the harder it is to find.

7. Balances in opening balance equity

Amounts left in opening balance equity from setup or imports. Your accountant will need to move them before the financial statements are right.

Run the check on your own file

AxLedger connects to QuickBooks Online read-only, checks a year of transactions for all seven problems and lists each finding with its date and amount. The health check is free, and you keep the results whether or not you work with us.