Deciding what software you should use is one of the most important decisions you will make, and it will directly impact how accurate your financial statements will be. Your financial reports tell the story of your business in numbers. They will show that a business owner takes the bookkeeping seriously and knows how important it is, and they will put a spotlight on owners that do not care about their bookkeeping
Accounting frameworks differ from industry to industry and company to company and should be set up to answer the right questions so owners can make the best decisions for their company. Avoid frustrations and expensive clean up later by ensuring your books are set up correctly from the start.
Setting up the books starts with picking the right software.
Consider the following:
- Should you use QuickBooks Online (QBO) or QuickBooks Desktop (QBD)?
- If QBO what version?
- If QBD what version and will you host the file remotely or locally?
- Will you process payroll in-house or outsource it?
- If you do outsource payroll, do you need to job cost payroll expenses?
QuickBooks Set Up
The basic set up you will be left with after you go through the set up wizard for either QBO or QBD is not great. There have been tax law changes from 2018 that are not reflected in the Chart of Accounts you will end up with. There are also a number of accounts especially in QBO that you should never use and should never appear on a financial statement. Unfortunately, you cannot simply connect your bank accounts to QuickBooks and have everything automated.