QuickBooks Cleanup Checklist: Where to Start

Assess the current bookkeeping file

Identify the business bank and card accounts, the months that need attention and the last statement period reconciled for each account. Make note of any previously closed reporting periods.

• List all active financial accounts.
• Identify the last completed reconciliation per account.
• Consult your CPA before changing previously filed or closed periods.

Review transaction categories and duplicates

Look for uncategorized entries, repeated bank-feed imports, unclear classifications and transactions that do not belong in the selected reporting period. Work from dependable account records rather than guesses.

• Review entries waiting to be categorized.
• Investigate repeated or inconsistent transactions.
• Document questions requiring business-owner input.

Work through overdue reconciliation periods

Reconcile accounts in a logical order using complete bank and credit-card statements. Investigate unexplained differences instead of posting arbitrary adjustments simply to make a balance agree.

• Match the correct statement period and balance.
• Resolve material discrepancies.
• Keep completed reconciliation reports.

Check financial statements after corrections

Review the profit and loss statement and balance sheet for unusual categories or balances once the relevant bookkeeping work is complete. Larger accounting corrections should be reviewed with the appropriate professional.

• Look for unexplained balances or outlier categories.
• Compare periods for major changes.
• Agree on a manageable ongoing bookkeeping routine.

Common pitfalls to avoid

• Making large edits before understanding prior reconciliations.
• Deleting entries simply because they look unfamiliar.
• Changing prior-year records without discussing the impact with a CPA.

Additional recordkeeping guidance

• IRS: business recordkeeping ↗