Best QuickBooks Tips – Cut Time By Half: Centsless Accounting

Filed in Accounting, Business, Intuit QuickBooks, Politics by on February 24, 2010

Best QuickBooks Tips are the fastest and easiest ways to Cut Time By Half. This post is on Centsless Accounting.

http//blocktaxcom/ was a QuickBooks Errors authority, before Intuit had a big web presence. Mike also wrote the book on Speeding Up QuickBooks Performance. These Best QuickBooks Tips – Cut Time By Half: Centsless were written long before two Intuit “Ask the Expert” appearances on QuickBooks Errors and Speeding Up QuickBooks Performance. Intuit copied the blocktax Speeding Up QuickBooks article to its QuickBooks Community Library, as did AccountingWeb and others. This Library also had the blocktax.com QuickBooks Shortcuts page. Here is the fastest, easiest and newest way to Cut Time By Half.

Centsless Accounting is for those needing time and money saving shortcuts during tough economic times. It also is faster, easier and more efficient. Centsless Accounting is not for those entering each check and deposit as they go. Use Centsless to round off pennies if you enter QuickBooks data monthly or less often. Start Centsless Accounting by working from bank statements, not checkbooks. Outstanding checks and deposits tend to even out over time. Also use this Centsless Accounting by entering total bank statement deposits for the month as one sales deposit, at month end (split any non-sales amounts).

The big difference between Centless Accounting and what most CPAs and QuickBooks users do is that Mike recognizes that pennies are near worthless. They (and all our money) lost 86% of their value since Waren Buffet began managing Berkshire Hathaway. That means you waste far more than a penny every time you account for a penny. Pennies never even go on income tax returns. That is why Centsless Accounting drops pennies for 49 cents or less and rounds up for 50 cents or more. This lets Centsless Accounting cut time by half. Few QuickBooks entries are more than $999.99. A QuickBooks Edit, Preference lets you enter 987 and get $987.00. Numbers like $987.65 take seven keystokes, with the decimal and Enter. The Preference lets $988.00 take four keystokes, counting Enter. It is that simple. Make up the difference by saying Reconciled, when doing bank reconciliations with differences of less than $50. That is aways too small to waste time finding. You can even increase this to $500 depending on company size. You can set QuickBooks to use your largest expense account, instead of Office and Misc or Bank Charges for the differences. However, I prefer letting QuickBooks create its Bank Reconciliation Differences account to see the annual amount before moving it. You can move it fast if you then change (Edit) the Differences account name to be the same as the name of a large account. Say Yes when QuickBooks then asks you if you want to merge them.

Best QuickBooks Tips – Cut Time By Half: Centsless can go even further. Ignore amounts under $25. For our purposes, they are one step removed from pennies. You also Reconciled these differences when doing bank reconciliations. You can even decide which account has the largest number of postings (not Sales) AND NOT RECORD THEM. Simply let that QuickBooks Reconciled adjustment take care of these and other differences. This combination of Centsless Accounting tips can really cut far more than half. It is not what we learned in school, but unless you use it I may soon charge your clients less 🙂

These Centsless Accounting procedurses do not cut taxes. They only save accounting time. IRS does not officially approve Centsless Accounting. However, in 50 years of heavy IRS dealings, including 15 years of using Centsless Accounting, I never heard of IRS making adjustments for insignificant differences like these.

 

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Fastest, easiest, accurate, low-cost QuickBooks! Intuit - QuickBooks CEO, "You're fantastic Mike! Absolutely fantastic!" Tax fighting CPA.

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