Bookkeeping is the foundation of every successful business. When done right, it helps you stay compliant, manage cash flow, and make informed financial decisions. QuickBooks is one of the most powerful and user-friendly bookkeeping tools available—but knowing how to use it properly makes all the difference.

Below is a simple step-by-step guide to help you manage your books in QuickBooks:

• Choose the right version (QuickBooks Online is best for accessibility; QuickBooks Desktop works well for complex needs).
   
• Customize your company settings with your business name, address, EIN, and accounting method (cash or accrual).
   
• Create your Chart of Accounts—this is the backbone of your bookkeeping. Include income, expenses, assets, liabilities, and equity accounts tailored to your industry (for example: job cost tracking for contractors, trust accounts for law firms, or insurance billing categories).
   

• Link your accounts so transactions automatically download.
   
• This saves time and reduces manual entry errors.
   
• Be sure to review and categorize transactions regularly instead of letting them pile up.
   

• For income: Use QuickBooks’ invoicing feature or record deposits to the correct income account.
   
• For expenses: Enter bills and pay them through QuickBooks, or categorize direct bank/credit card charges.
   
• Always assign expenses to the proper category (e.g., payroll, per diem, subcontractors, supplies).
   

• Set up employees and contractors in QuickBooks Payroll.
   
• Track wages, per diem, and taxes automatically.
   
• Ensure payroll entries tie to job costs or WIP if you’re in construction.
   

• Create jobs/projects in QuickBooks.
   
• Assign expenses, payroll, and materials to each job.
   
• Run WIP and job cost reports to see if projects are staying on budget and profitable.
   

• Use dedicated trust liability accounts.
   
• Record client deposits as liabilities, not income.
   
• Track disbursements carefully to stay compliant with legal requirements.
   

• Set up customers, policies, or cases as needed.
   
• Record invoices and apply payments against the right account.
   
• Use reports to reconcile billing against payments received.
   

• Match your QuickBooks balances to your bank/credit card statements every month.
   
• This ensures accuracy and catches errors before they snowball.
   

• Key reports include:
   
  • Profit & Loss (to track income and expenses)
     
  • Balance Sheet (to see assets, liabilities, and equity)
     
  • Job Cost Reports (for contractors)
     
  • Trust Liability Reports (for attorneys)
     
• Use these reports to make informed decisions and prepare for tax time.
   

Bookkeeping works best when it’s consistent. Set aside time weekly to review and update QuickBooks—or consider outsourcing to professionals who specialize in your industry.

✅ At Quick Bookkeeping and Financials, we take the stress out of QuickBooks by handling setup, daily bookkeeping, WIP/job costing, payroll, trust accounts, and insurance billing—so you can focus on growing your business.

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Disclaimer: The information shared on this website is provided for informational purposes only. It does not establish a client–bookkeeper relationship with Quick Bookkeeping and Financials, LLC. While we offer training and coaching classes to support entrepreneurs and business owners.  These Helpful Hints  are to provide general guidance and should not be considered a substitute for professional, personalized financial or legal advice.