Five Numbers in QuickBooks That Tell You Your Books Are Wrong
Five QuickBooks numbers you can check in 30 seconds to see whether your books can be trusted, and what multiple flags can mean.
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Can you check your books in 30 seconds?
Open QuickBooks. Five numbers, 30 seconds, and you'll know whether your books can be trusted.
What do the first four numbers show?
First, look at uncategorized expense. A balance there means transactions still need to be properly categorized. Second, check Ask My Accountant for items that are still waiting for answers. Third, look at opening balance equity. That balance should be zero. Fourth, check undeposited If it keeps growing, it is a flag that needs attention.
What about negative balances?
Fifth, look for any negative bank balance or negative accounts payable balance. One flag may point to an isolated bookkeeping problem.
What do multiple flags mean?
Multiple flags can indicate a larger accuracy issue and make the reports harder to trust. These checks do not solve the problem, but they quickly show whether the books need a closer look.
What should you do with what you find?
Screenshot what you found and send it to me. I'll tell you if it's a problem.
Need help getting your books cleaned up? Call (310) 800-4494 or send us a note.