What is the most frequent mistake made in recording banking transactions in QuickBooks?
The most frequent mistake that we have seen is related to payroll: forgeting to pay your payroll taxes with the Pay Liabilities window. When you create paychecks for your employees, use the Pay Liabilities window to pay your payroll taxes. Don’t use the Write Checks window. When you run payroll, QuickBooks keeps a tally of how much payroll tax you owe, and records it in your Payroll Liabilities account. When you use the Pay Liabilities window to pay your payroll taxes, QuickBooks will decrease the balance of the liability account accordingly. It is possible to incorrectly book your payroll tax payments and overstate your expenses if you are not familiar with QuickBooks Payroll functions. For more details, contact the Hector E. Garcia, CPA office at 210-492-5522.
