QuickBooks for Your Business2018-10-10T15:37:45+00:00

Work flow -Automated

If you plan on scaling your business, developing a system for all processes that happen in your business is essential. Automation is one of the easiest way to scale.

To automate the accounts payable system, the following must be present:

  1. A healthy level of cash flow: Usually automated accounts receivable system generates a good level of cash flow
  2. Automated bill payment: Most vendors today give you the option to pay automatically.
    1. This is even true with your credit card payments.
    2. Not only do you get to automate but in some instances, they might let you choose  payment date
  3. Prepayment: Prepayment is an alternative to automation. You pay once a year, thereby you only have to deal with the bill annually.
  4. A credit or debit card: for daily purchases.
  5. Bank feeds: You must have bank feeds set up in your quick-books file.

The automated workflow – bills

  1. Contact your vendors and set up automation or prepayments.
    1. If prepayment, set up:
      1. An asset account to record the prepayment.
      2. A recurring journal entry to recognize the expense each month (decreasing the prepaid amount).
    2. If automated,  set up a recurring bill.
      1. This cannot be completely automated if the amount varies per month
      2. In this case you will have to update the recurring template when the bill is received.
  2. Once a week, clear the imports from the bank feed center by matching the bills with the payments.  This will take very little time as most transactions will be automatically matched.
    1. Unmatched transactions could be a sign of unauthorized charge. Be sure to investigate.
      1. This is also a great way to catch unauthorized charges.
    2. Also be sure to delete recurring transactions as services are cancelled.
  3. Once a month reconcile the bank accounts
    1. If all the steps above were carefully followed, all the transactions should already be checked and the difference zero.
    2. This is also a great place to find transactions accidentally entered into qbo.
  4. Review report at least monthly.
    1. Compare report to budget to make sure you are not overspending
    2. When accounts payable is automated, the budget serves as a double check

This process will only take less than an hour of your time each month compared to about 5 hours for non automated processes. Obviously, the size of your transactions will affect estimated time.

The automated workflow – daily expenses

  1. Use a receipt scanning app like neat receipt
  2. Scan each receipt and upload to qbo as soon as an expense is incurred
  3. When the expense comes through the bank feed, match to receipt
    1. You can directly add receipts from bank feed, however it becomes easier for false transactions to be added to your report.
    2. This is even more important when you are not the only one making purchases.
    3. By matching transactions, you can tell when a transaction you are not expecting comes through.

How to video

One Comment

  1. Evelyn Ivy, CPA, MBA October 1, 2018 at 3:14 am

    Click next

Comments are closed.