22 Nov Accounting Issues
Understanding how the accounting software processes transactions can significantly affect the results on the reports. Some common examples include: setting up beginning balances, voiding a check, adjusting inventory balances, credit card charges versus bills, customer deposit liabilities, trust accounting, adjusting sales tax or payroll tax liabilities, cash versus accrual basis for reports, etc. For each type of transaction there may be several ways to record it, depending on how the accounting records are kept and how the reports will be created. If clarification is needed, contact an accountant who is well versed in QuickBooks.
WARNING: Integrated applications (QuickBooks add-ons) significantly improve efficiency, but the trade off can be compromising internal controls. The reason is two-fold: first the applications may add transactional data to QuickBooks. If that is the case, it is recommended that the integrated applications preference by set so the add-on logs in with a special user name and password. And second, the application may provide access to information that the user would not be able to access through QuickBooks directly due to password restrictions.