QuickBooks: Contractor Mistakes

QuickBooks for Contractors - Complete Controller

QuickBooks is an accounting program package designed to manage the needs of every small to medium-sized business, such as payrolls, bills, inventory, sales, etc. It offers software solutions for both on-premises and cloud-based accounting applications. It’s the accounting program used most. The package develops solutions according to the industry’s needs and includes tools for marketing, services, products, supplies for merchants, and training solutions. 

QuickBooks offers different package options, depending on your and your company’s needs.

A contractor version of the software is available. It is built to meet every kind of contractor; therefore, do-it-yourself accounting is not as easy, and many users make mistakes.

LastPass – Family or Org Password VaultIncorrect Payroll

Managing payroll is difficult, and any business can benefit from outsourcing this time-consuming process to a payroll firm. As local, federal, and state laws regularly change, managing payroll can become complicated, and businesses can be negatively affected by errors resulting in tax penalties. 

Not Reconciling Accounts

Reconciliation is necessary for all of your accounts, including your savings and checking accounts, taxes, loans, and mortgage escrow accounts. Otherwise, you will not know if the money in the business account register is correct. Reconciliation is an important step in bookkeeping and must be done regularly.

 Using Too Many Accounts & Sub Accounts 

While QuickBooks offers one advantage in creating further sub-accounts of accounts, this can also complicate the system and be very time-consuming. If possible, this should be avoided, especially in the case of small companies where one parent account is adequate.

Not Backing Up The Company Data

It is necessary to back up the Business QuickBooks files daily to prepare for the unpredictable. This will prove to be immensely helpful in case of a computer crash.

Download A Free Financial Toolkit Not Reviewing

The balance sheet and P&L statements have valuable business health insights. Reviewing these statements can help catch mistakes before they cause any financial repercussions. Thus, they should be checked regularly.

Not Setting Sales Tax Preferences

You can set up your sales tax preferences if your business makes sales subject to sales tax. To do this, go to Edit → Preferences → Sales Tax icon → Company Preferences → Owe Sales Tax and then choose from As of Invoice Date or Upon Receipt of payment.

 Booking Loans Improperly 

Recording any loans taken by the business is necessary. Each payment’s principal and interest breakdown is monitored and reconciled with the monthly loan balance.

Not Creating User Permissions and Passwords

Suppose multiple users are accessing your QuickBooks file. Giving each of them separate roles, permissions, and logins is necessary. This ensures that everything happening in your books is controlled smoothly.

CorpNet. Start A New Business Now Deleting Transactions

In QuickBooks, many transactions are interconnected, and deleting one transaction can affect other transactions linked to it. One option is to void a transaction rather than delete it. But that, too, can cause problems if the deleted transaction is for a closed period. Refer to your accountant and get the transaction reversed through the current period.

Paying Payroll Taxes using the Write Checks Window

QuickBooks keeps track and records the payroll tax a business owes as the payroll is managed in the Payroll Liabilities account. Accidentally paying the payroll taxes through the Write Checks window will result in the paid amount not getting correctly deducted from the Payroll Liabilities. Therefore, to ensure that the payroll liability balance is deducted correctly, paying the payroll taxes from the Payroll Liabilities window is necessary.


In conclusion, QuickBooks is a versatile accounting solution tailored for diverse business needs, offering both on-premises and cloud-based applications. It caters to various industries with specialized tools, including a dedicated contractor version. However, users should be cautious to avoid common mistakes, such as mishandling payroll, neglecting account reconciliation, and utilizing excessive accounts.

Proper data backup, regular review of financial statements, setting sales tax preferences, and maintaining accurate loan records are essential practices. Additionally, creating user permissions, avoiding 
transaction deletions, and paying payroll taxes contribute to QuickBooks’ effective and error-free use in managing business finances.

Cubicle to Cloud virtual businessAbout Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.Complete Controller. America’s Bookkeeping Experts