The Value of Using Checklists for Accounting and QuickBooks Processes With the first quarter of 2011 now behind us, many organizations have started their quarter end procedures. That brings up an important question: Have checklists become a thing of the past? As organizations strive to become paperless, we’ve seen a marked decrease in the use of checklists. For some reason, “going paperless” gets translated into “throw away the paper checklists” in many businesses. Whether printed and placed in a binder on your desk or stored electronically on your computer, checklists are important in accounting processes. Checklists have many benefits; here are just a few:  It’s easy to forget things. Using checklists ensures we won’t skip over important steps in a particular procedure.  Checklists can be used for reference by someone filling in during an absence.  They make great training documents for new employees.  They help ensure good internal controls are in place.  Checklists document our processes and procedures. Ensuring the integrity of your accounting data is very important, and checklists can be a great help in achieving that. Whether it’s month end, quarter end, or the end of the year, there are several processes that should be accomplished with your QuickBooks accounting system. Below are two examples of what checklists might look like for accounting processes in QuickBooks. Behind each checklist there should be detailed instructions, with screenshots, key information, and tips on how to perform the steps on the checklist. The checklists below are included in the Accounting Procedures for QuickBooks documents written by Anderson ZurMuhelen. To learn more about these procedure manuals, visit our website at www.azworld.com/procedures. TIP! If you’re using the Attached Documents feature in QuickBooks, the Company Information screen is a great place to store an electronic copy of your accounting procedures for QuickBooks. Sample Monthly Accounting Checklist  Verify all data for the month has been entered (bills, invoices, credit memos, returns, etc.).  Record monthly Journal Entries: o Using the postage, copier, and office supply logs, enter the cost allocation entries. o Create the investment income entry.  Reconcile the bank statement. Follow the steps outlined on page 27.  Reconcile balances on the Balance Sheet with individual module reports. See Reconciliation of General Ledger Accounts on page 30.  Perform the steps noted in the Monthly Internal Control Checks found on page 31.  Scan and save the reconciliation documents to the network folder : Accounting\2011\Reconciliations. Sample Quarterly Payroll Checklist  Ensure payroll updates are current. o Select Employees | Get Payroll Updates, choose Download entire payroll update and click the Update button. o
Once the process is complete, review the updated information.  Generate the Payroll Summary (Reports | Employees & Payroll | Payroll Summary). o Dates: Last Calendar Quarter. o Spot check and review the report for accuracy.  Prepare the 941 Quarterly Tax Return (Process Payroll Forms on the Home page). o Select Federal form and then Quarterly Form 941/Sch. B. o Choose the appropriate quarter. o Check the Yes box in the Do you need a Schedule B? section. o
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Choose the Next button. Compare the information on the Payroll Summary report to the 941 to ensure the amounts are consistent and accurate. Resolve any discrepancies. Ensure the information in Part 5 is accurate. This information comes from the Company Information screen. o
Once the report is complete, print it, sign it and mail it to the Internal Revenue Service at the address provided.  Prepare the State Unemployment Report and Quarterly Payment (Process Payroll Forms on the Home page). o Generate the UI‐5 report in QuickBooks. This report will be used to enter wage information on WARP. Review the report for accuracy. o Once the information is verified, log in to WARP on the Internet and enter the current quarter’s information: https://wow.dli.mt.gov/wowjava/logon1.jsp.  Add any new employees in the Input/Update Employees screen.  Enter the wages in the Input Montana Employee Wages screen.  Select Create New Quarterly UI Report.  Enter the quarter and click the Calculate Report button.  Verify that the totals calculated on the screen are correct.  Enter the Number of UI Employees in each month.  When the information is correct, click the Submit Rpt, go to Payment Screen button.  Enter ACH, the payment amount and the last day of the month following the quarter end for the payment date.  Save a PDF of the payment to the accounting folder on the network (Accounting \2011\Payroll). o Record the Unemployment check in QuickBooks from the Pay Scheduled Liabilities window.  Enter ACH for the check number.  Enter the date the payment will be withdrawn from the checking account.  Enter the payment confirmation number in the memo area of the check.  Review the 940 liability amount due. If the liability is more than $500, make the liability payment for the quarter. o Check the 940 liability check in the Pay Payroll Liabilities screen. o Click the View/Pay button. o Enter EFT for the check number. o Enter the date the payment will come out of the checking account. o Log in to EFTPS and make the 940 payment. o Enter the EFTPS confirmation number in the memo area of the check. o Choose Save & Close to record the check.  Run the Payroll Liability Balances report (Reports | Employees & Payroll | Payroll Liability Balances) for the quarter and ensure all of the liability payments have been paid.  Scan all of the quarterly payroll reports to a PDF and save them in the appropriate network folder (Accounting \2011\Payroll). Checklists keep us focused. They help ensure we don’t forget steps when performing a process that involves multiple tasks. It takes time to get a good set of procedures in place, but the benefits of having documented procedures far outweigh the time required to create them. If documenting your accounting procedures seems like a daunting task, Anderson ZurMuehlen can help you with the process. Please don’t hesitate to contact us for assistance.