QuickBooks

Common Errors on a

Cash Basis Balance Sheet

Terry Stone

Business Performance Solutions, LLC

802-878-3550

Terry@bpsvt.com

3 Most Common Errors

A/R & A/P - Dating a payment BEFORE

the invoice or bill date

A/R & A/P - Not “applying” payments to

invoices or bills

Entering the sale of an inventory item

BEFORE entering the purchase & bill

details

Cash-Basis Balance Sheet

items that are NOT errors

Accounts Receivable:

Outstanding invoice with sales tax

Outstanding invoice with inventory

Accounts Payable:

Outstanding Bill for inventory

Outstanding Bill for assets purchased

Credit Card balance moved to A/P

A bank or vendor loan posted as a bill

Payroll Tax Liabilities:

cash OR accrual - when using the QuickBooks

payroll system the employer taxes will post to

the expense and liability accounts