Use of accounting software has become standard for small companies of all types. Even the solo contractor finds that programs such as QuickBooks simplify and speed up the bookkeeping process. Regardless of your level of accounting expertise, however, data entry mistakes still occur.
Midyear is ideal for an accounting review to ensure that your software is not rendering distorted information. This tactic keeps you on track for producing reliable records that inform you of results and aid in defining goals. It’s easier if you have a “partner” to help: your accountant knows how to read and interpret a variety of standardized reports to locate targets for modification.
Your best bet is to give your accountant login access to your online software application. Many accounting tools, like QuickBooks Online, permit file sharing by providing your accountant with a separate login from your own.
Users of some software packages can make an accountant’s copy of the file, which allows you to continue making new entries and later import your accountant’s changes. An accountant’s copy also allows you to pick a dividing date, ensuring you don’t overlap your accountant’s changes.
Regardless of the accounting software you have, ensure you adhere to the following guideline: Don’t modify earlier transactions while your accountant is examining your records for those specific time periods, because your modifications are likely to negate the accountant’s corrections. Also, you should refrain from reconciling accounts to financial institution statements until your accountant completes his or her examination.