How to Perform a Year-End Clean Up on Your Accounting Books | QuickBooks Canada (2024)

FAQs

How to do a QuickBooks clean up? ›

Clean Up the Chart of Accounts

Review all accounts to ensure that they're necessary and relevant to your business. Merge duplicate or unnecessary accounts. Rename accounts to make them more descriptive and easy to understand. Create new accounts as necessary to better track your business transactions.

Once your bookkeeper receives all the necessary documentation, they'll typically complete your cleanup within 30 days. In some cases, your cleanup may take longer depending on timeliness of documentation and the complexity of your books.

The three golden rules of accounting are (1) debit all expenses and losses, credit all incomes and gains, (2) debit the receiver, credit the giver, and (3) debit what comes in, credit what goes out.

Defining the accounting cycle with steps: (1) Financial transactions, (2) Journal entries, (3) Posting to the Ledger, (4) Trial Balance Period, and (5) Reporting Period with Financial Reporting and Auditing.

QuickBooks Live Bookkeeping is a subscription service that gives a business a certified bookkeeper to help manage the company books. There is a $500 cleanup fee to get started, which pays to get your books up to date, and then you pay $200 to $400 per month for the service.

It is generally better to have less detail and keep it accurate than to have inordinate amounts of detail that tend to be inaccurate. For organizational elegance, keep numbers and descriptions consistent. Align direct cost account numbers with the corresponding sales account numbers.

Can I hire someone to teach me QuickBooks? ›

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Reconcile all accounts

Reconcile all your accounts monthly to make sure transactions are recorded correctly in QuickBooks. This lets you have balanced and accurate data by the end of the year and prepare for tax season. Here's the workflow and tips for year-end reconciliation.

How long does it take to be QuickBooks certified? QuickBooks certification can take as little as 2-3 weeks. Intuit QuickBooks training offers two-day live online or self-paced instruction. These include a study guide, practice test, and exam voucher.

Clean-up bookkeeping is a process of organizing historical books (existing financial records) to correct errors and discrepancies and improve the accuracy of financial statements. This may involve reviewing the general ledger, reconciling bank statements, and ensuring that all transactions have been recorded correctly.

Any professional service fees that are necessary to the functioning of your business, such as legal, accounting and bookkeeping services, are deductible for tax purposes. If you use accounting or bookkeeping software for your business, that would also qualify as a tax deduction.

QuickBooks cleanup can include reconciling accounts, correctly categorizing transactions, and verifying that all of your financial records are correct. Cleanup can identify corrupt data, features being used incorrectly, or features you can use to get more out of QuickBooks.