As Certified QuickBooks Proadvisors we have met many clients who have intended to do their books on a daily basis, but life gets in the way, and depending on how many transactions occur on your synced accounts, even failing to match the transactions after a couple days can lead to a mess.
Even as ProAdvisors, if we set up all the “rules” in Quickbooks, you as the user will still need to click “match” when your bank says 1 transaction found. If you never “lump” your deposits together (more than 1 sale physically deposited into the bank), this will minimize your problems. (meaning, 1 deposit for each sale)
QBO is still not entirely automated and is only as a good as its user. The categorizing of programmed transactions is automated, but in addition to clicking match, you will need to do monthly bank and credit card reconciliations. We need to reiterate that 1 error in matching or doing the reconciliation wrong will compound errors throughout the file.
- Never lump deposits
- Never let your account be disconnected from your bank (or you will lose transactions which automatically downloads and you would need to manually type in each one)
- Daily: match transactions
- Weekly: keep in touch with your ProAdvisor with any problems before they compound
- Monthly: account reconciliations
- You’ll still need another vendor, an accounting provider (plus if they are a Certified Quickbooks ProAdvisor) to compile the corporate tax return.
While QBO is the most popular cloud accounting solution, THUT Accounting is a 3-step Software-as-a-Service:
- Data capture and coding: THUT extracts data from receipts, bank and credit card statements. Cleansing algorithms allow it to extract transactional data that is 100% accurate (no error-prone and costly manual input).
- Computing: We use mathematical optimization algorithms to save you money. As with all convex mathematical functions, there is only one minimal value that describes the combined taxes in terms of its variables.
- Reporting: Promise kept – you receive your clear and thorough reporting package in PDF with full-text search and we file everything with the Canada Revenue Agency- on-time and with the best result. You will receive unlimited support and access to business advice including Grenzplankostenrechnung (GPK) – German accounting to effectively price your product or productized service. We immediately respond to questions and concerns. After we save you thousands in taxes, what will you do with the money?
Which one is right for you?
Use your pre-tax income to calculate your pre-tax hourly rate (since Accounting is paid for with pre-tax dollars). If THUT Accounting’s SaaS cost less than your hourly rate than THUT is for you. If THUT Accounting costs more than your hourly rate than Quickbooks Online is right for you.
Once you make more than the average person ($95k/year in Edmonton or $50/hour), it does not make sense for you to specialize in something that is not directly related to your ability to generate revenue. This is because of the minimum efficient scale.