Managing your finances doesn’t have to feel overwhelming. Regularly checking your QuickBooks ensures your business stays on track, helps you make smarter decisions, and saves time and stress at year-end. Below are the key areas to focus on, explained in plain English.

1. Keep Categories Simple and Consistent

What this means: Every expense in your business should be put into a category, like “Utilities,” “Marketing,” or “Supplies.”

Why it matters: If you have too many categories or aren’t consistent, your reports won’t make sense. For example, if sometimes you put your internet bill under “Utilities” and other times under “Office Expenses,” it will be hard to see how much you’re really spending.

Tip: Start simple and only create more detailed categories if they give you useful insights—like separating Facebook ads from Google ads if you want to track ROI on marketing.

2. Reconcile All Accounts Monthly

What this means: Reconciliation is checking that what QuickBooks shows matches your actual bank or credit card statement.

Why it matters: QuickBooks can sometimes pull in transactions incorrectly, or a payment might not appear where it should. Reconciling helps you catch duplicates, missing payments, or mistakes before they cause bigger problems.

Tip: Even if you use bank feeds, always check your statements at least once a month. This avoids surprises at year-end and keeps your records accurate.

3. Review Accounts Receivable and Payable

Accounts Receivable: This is money your customers owe you.
Accounts Payable: This is money you owe suppliers or vendors.

Why it matters: Missing invoices or unpaid bills can create cash flow problems. For example, if a customer hasn’t paid for 60 days, you need to know so you can chase it. Likewise, if you don’t check bills due, you could face late fees.

Tip: Use QuickBooks reports to see who owes you and what bills are coming up. You can even set reminders to follow up on unpaid invoices automatically.

4. Keep Business and Personal Finances Separate

What this means: Only use your business accounts for business expenses, and your personal accounts for personal expenses.

Why it matters: Mixing finances can make it very confusing to track business performance. It can also be a red flag for accountants or HMRC/Northern Ireland tax purposes.

Tip: If you pay for something personal with business money, record it as an “Owner Draw.” If you use personal money for business, record it as an “Owner Contribution.” This keeps your books clear and avoids headaches at year-end.

5. Understand the Three Key Financial Reports

• Profit & Loss (Income Statement): Shows what money came in, what was spent, and whether you made a profit.

• Balance Sheet: Shows what your business owns (assets) and owes (liabilities), plus your equity.

• Cash Flow Statement: Shows actual cash moving in and out, helping you understand if you have money to pay bills or invest back into your business.

Why it matters: Knowing the difference between profit and cash flow prevents surprises. For example, your business might show a profit of £10,000, but £5,000 might already be committed to bills, leaving only £5,000 free cash.

Tip: Review these monthly to see trends and catch issues early.

6. Use Automation with Care

What this means: QuickBooks can automatically categorise transactions, create recurring invoices, and pull in bills.

Why it matters: Automation saves time but isn’t perfect. QuickBooks might miscategorise a transaction, which can make reports inaccurate.

Tip: Always double-check automated entries and add notes to explain any corrections. You can also use recurring templates for regular invoices and bills to save time while maintaining control.

7. Prepare Before Year End

What this means: Get your books in order before sending them to your accountant.

Why it matters: A clean set of accounts reduces mistakes, queries, and accounting costs.

Tip: Complete all reconciliations, check for uncategorised transactions, review key reports, and correct anything unusual. This will make year-end smoother and give you confidence in your numbers.

With Thanks

A special thank you to Hope Allen, founder of her own bookkeeping business (Wyoming Small Biz & Demystified Works), who provides QuickBooks classes and hands-on support to small business owners. Her training focuses on helping businesses gain clarity, confidence, and control over their finances, whether you’re just starting or looking to streamline your accounts.