QuickBooks Online Cheat Sheet

#Daily / Weekly Must-Dos

• Check Banking feed: Review new transactions, add payees, and apply rules.
• Categorize transactions: Assign the correct account + class/location (if used).
• Match vs. Add:
  • Match when the bank transaction already exists (invoice payment, bill payment, sales receipt).
  • Add when it’s a new transaction that isn’t in QBO yet.
• Review Undeposited Funds: Clear out old items and confirm deposits match the bank.
• Run a quick health check:
  • Profit & Loss (month to date)
  • Balance Sheet (month to date)
  • A/R Aging and A/P Aging

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#Month-End Close (Fast Checklist)

1. Reconcile bank and credit card accounts (every account, every month).
2. Review uncategorized transactions: “Is this business or personal?” Confirm meals, travel, supplies, software, subcontractors.
3. Review A/R (Accounts Receivable): Send reminders, apply late fees (if policy allows), confirm payments are posted correctly.
4. Review A/P (Accounts Payable): Confirm bills entered, due dates correct, and payments recorded.
5. Payroll check (if applicable): Verify payroll liabilities and tax payments.
6. Sales tax check (if applicable): Confirm tax settings and taxable vs. non-taxable items.
7. Review Balance Sheet accounts:
   • Bank/Credit Cards: reconciled.
   • Loans: principal vs. interest split.
   • Fixed assets: purchases categorized correctly (not expensed if they should be capitalized).
   • Owner’s draws/distributions: posted consistently.
8. Close the books (optional but recommended): Set a closing date + password after reconciliation and review.

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#Banking Feed: Common Moves

• Create rules for recurring vendors (software subscriptions, utilities).
• Use Payee rules to standardize vendor names.
• Split transactions when one bank charge includes multiple categories.
• Watch for duplicates: Duplicate happens when you “Add” something that already exists as a bill payment/invoice payment.

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#Core Transaction Types (When to Use What)

• Invoice: You bill a customer now, they pay later. (Creates A/R)
• Sales receipt: Customer pays immediately. (No A/R)
• Receive payment: Records payment against an invoice.
• Estimate: Quote that can convert to an invoice.
• Expense: Money out, paid immediately (card/cash).
• Bill: Money out, to be paid later. (Creates A/P)
• Bill payment: Pays an existing bill.
• Journal entry: Use sparingly (adjustments, accruals, corrections). Prefer forms when possible.

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#Chart of Accounts (COA) Quick Guide

• Income: Sales, service income, other income.
• Cost of Goods Sold (COGS): Direct costs tied to revenue (materials, subcontractors for job).
• Expenses: Operating costs (rent, software, advertising).
• Assets: Bank, A/R, fixed assets, inventory.
• Liabilities: Credit cards, loans, A/P, sales tax payable, payroll liabilities.
• Equity: Owner’s equity, draws/distributions, retained earnings.

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#Common Categorization Cheats

• Owner pay / personal spending: Owner’s Draw (sole prop/LLC) or Distributions (S-Corp) — not an expense.
• Meals: Meals (often partially deductible; keep notes).
• Travel: Travel (airfare, hotel) vs. Meals while traveling.
• Software: Subscriptions / Software.
• Contractors: Subcontractors (track for 1099s).
• Equipment: Small tools may be supplies; larger purchases may be fixed assets (confirm with your tax pro).

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#Reconciliation: What “Good” Looks Like

• Reconcile every bank and credit card monthly.
• Ending balance in QBO reconciliation should equal the statement ending balance.
• If off:
  • Check statement date range.
  • Look for missing/duplicate transactions.
  • Confirm transfers are recorded once (not twice).

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#Undeposited Funds (UF) Basics

• Use UF when you receive multiple payments and deposit them as one lump sum.
• Workflow:
  • Record payments to Undeposited Funds.
  • Create a Bank Deposit that matches the bank deposit exactly.
• If deposits don’t match the bank, you’ll fight reconciliation.

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#Accounts Receivable (A/R) & Accounts Payable (A/P)

• A/R Aging: Who owes you and how long.
• A/P Aging: What you owe and when.
• Best practice: Don’t use A/R or A/P unless you’re actually invoicing/billing.

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#Sales Tax (Quick Notes)

• Set up correct tax agency, rates, and taxable products/services.
• Run the Sales Tax Center regularly.
• Don’t “fix” sales tax with journal entries unless you know exactly why.

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#Reports You’ll Use Constantly

• Profit & Loss (monthly, YTD)
• Balance Sheet
• Statement of Cash Flows
• General Ledger
• Transaction Detail by Account
• A/R Aging Summary and A/P Aging Summary
• Reconciliation Reports (save PDFs)

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#Cleanup / Troubleshooting Shortcuts

• Find duplicates: Search by amount/date/vendor; review Banking tab matches.
• Negative balances:
  • A/R negative: payments posted without invoices or to wrong customer.
  • A/P negative: bill payments without bills.
• Ask “where did it hit?” Open the transaction and look at the account/category and linked transactions.
• Use Audit Log: Great for tracking changes.

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#Best Practices

• Keep receipt backup (attach to transactions).
• Use consistent naming for vendors/customers.
• Reconcile monthly and lock the books.
• Keep a “Questions for Client” list during categorization to avoid constant back-and-forth.

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#Quick Client Questions (Copy/Paste)

• “Is this expense business-related? If yes, what was it for?”
• “Was this payment for an invoice, or a new sale?”
• “Is this a transfer between accounts, or a vendor payment?”
• “Should this be reimbursed to you personally, or treated as owner draw/distribution?”

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#What I Need From You Each Month (Client Checklist)

• Bank/credit card statements (or confirm feeds are complete)
• Any cash transactions not in the bank feed
• Notes on unusual purchases
• Loan statements (if applicable)
• Payroll reports (if applicable)

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