Best Practices

Periodic Maintenance Checklist for Accounting Systems

  • Reviewing memorized reports to remove any inactive GL accounts.
  • Clearing up any negative balance inventory items, at least every year or every cycle.
  • Adjusting any unused inventory items to zero balance before making them inactive.
  • Cross-referencing any item you intend to make inactive with other things (in groups or assemblies).
  • Cross-referencing any GL accounts you intend to make inactive with items (like services, non-inventory items, inventory items) and refresh those items with a new GL account if they are to stay active.

Sequence of System Setup

* In general, the sequence for setting up the system’s main functional areas (where applicable to the organization) are:

    1. Evaluate user and server hardware, server OS, and network capabilities
    2. QBES system preference setup (i.e., use of sales orders, estimates, purchase orders necessary, turn on/off payroll module, connection to email client, etc.)
    3. Chart of Accounts
    4. Item List and Sales Tax List
    5. Set sale tax agencies
    6. Other Lists (i.e. Payroll item, Payroll schedule, Fixed assets, Terms, etc.)
    7. Employee List
    8. Customer List
    9. Vendor List
    10. Loading of outstanding A/R and A/P
    11. Setting of starting bank balances in the bank reconciliation module
    12. Connection of bank and credit card accounts
    13. Connection to email client/server

Checklist for Optimal Quickbooks Desktop Operations

Somewhere along the process, you might want to review and update the Templates – to design forms like Invoices, Estimates, and Purchase Orders.

** These are general best practices that apply to all QuickBooks desktop products for optimal operation:

  • Have all users log off and close their QB app each day after work
  • Change QuickBooks passwords at least once a year
  • Backup and run verification of the books at least once a month – store backup QBB file on a network drive that runs regular backups of its own
  • Clear any small immaterial balances from AR, AP, customer and vendor accounts, and COA accounts (and other areas like inventory, payroll, etc.) at least once a year (part of your year-end cycle) – idea is not to leave any “hanging” transaction on the books (allows for better data integrity)
  • Run maintenance upgrades at least every six months – take advantage of the software update notices emailed to the registered owner
  • Review customized reports if changing Chart of Accounts (adding new accounts, making old accounts inactive, etc.) – this will help maintain healthy data linkage/disassociation
  • Schedule bi-annual and annual maintenance functions with the entire operations months in advance – all users should save their work and log-off QuickBook before the maintenance
  • Do small maintenances before and after accounting’s year-end close
  • Do system conversions shortly after a year-end close or during the middle of a fiscal year
  • DO NOT do a system conversion close to or at the same time as accounting’s fiscal year-end close