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The most common error that I run across is the misunderstanding of Cash and Accrual Basis Accounting. In QuickBooks if we choose to go to Customers and Create an Invoice we are working with an Accrual basis and that invoice needs to have a payment received against it and then deposited into the account. If we're working with a Cash Accrual we are going to start with the sales receipt, no need to receive a payment though because it's already been registered at the time of the transaction. Sales receipts go directly to record deposit. Without a doubt this is the most common flaw that I see within QuickBooks. Always be aware that if you are creating an invoice you must receive a payment and again if you're creating a sales receipt that payment is recorded for you. In the same regard we will see exactly the same issue on the vendor side, again, remember when we are entering a bill we must pay the bill. However if we choose to write a check, which is actually in your banking section it is going to automatically enter and pay the bill in one step. This is the difference between cash and Accrual Accounting. In Accrual Accounting we are going to record the transaction at the time of the bill, that's why we then pay it afterwards. In Accrual Accounting it doesn't matter when we actually cash the check to pay the bill, what matters is when did the transaction or event occur? In the cash accounting on the other hand we don't really care about the bill until we're actually going to pay it. It's very important to remember those two systems vary within QuickBooks. If I enter a bill and then do not pay bill that bill, but I write a check instead you will have two entries rather then one inside of QuickBooks. If you create an invoice and then create a sales receipt you will again have two separate transactions within QuickBooks. It's very important to remember those as you're going through. Now there's another area where this Cash and Accrual comes into play also but in a slightly different manner. If we go up to our banking area and go down to credit cards the way that QuickBooks establish credit cards is that I go in, enter the credit charges against a balance sheet item that I will then pay from the checkbook. However many of us will actually prefer to put in our credit card as an accounts payable transaction. Now if I choose to put my credit card into Accounts Payable then I need to handle all of the transactions through Enter Bill and Pay Bill. If however I choose to go to banking and enter credit card charges, then I will actually pay these charges by utilizing writing a check. In the case of writing the check it'll automatically clear the liability account which is listed on top. If I'm using Accounts Payable however that's utilizing the system of entering a bill and paying a bill. Always review your credit card accounts and make sure that you are consistent on the method and that everyone in your office is also using exactly the same method.