It’s important to have the right workflows in your bookkeeping process. The reason for this is to avoid mistakes in your Quickbooks Online. This includes when you send out invoices. Or when you track your expenses. This even applies when you’re working in your bank feed. Let’s go through a few common times of what’s the best way to work in your QuickBooks online.
For customer invoicing, it’s best to create the invoice in Quickbooks Online. Even if you’re using a different merchant service for payment (unless it syncs with QBO). Be sure to include any extra fees. Once the deposit comes through the bank, match it to the invoice. If the client pays right away, then make a sales receipt and match it to the deposit in the bank. By using this workflow, you can make sure you have all the information you need on each sale you made.
Expenses are a little easier when it comes to workflows. There is the option to create an expense or a bill whenever these come in. You would then match the transaction when it comes through the bank feed. I find the best workflow for an untrained QBO user is to add the expenses as they come in the bank feed. This way is much more simple. You can also avoid the problem of double counted expenses.
There are a few things that get messed up the most when entered in using the bank feed. Transfers are usually number one. Make sure you enter the correct bank account when adding the transaction in. Quickbooks Online detects a transfer if it’s from bank accounts that are in your Quickbooks. It’ll then match the transfers. Transfers to outside accounts will show up as distributions/owner’s pay or contributions.
Quickbooks Online has many articles going over the best workflows for everything bookkeeping. As long as you follow these, you should be able to keep up with clean books. Be sure to reach out to an expert if you have any questions.
