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Understanding Transaction Entry at MyBuilderCPA

Hello, and thank you for considering MyBuilderCPA. My name is Jon Markee, and I am the founder and CEO. Today, I want to spend a few moments talking about one of our core services: transaction entry. While some might know this as bookkeeping, we refer to it as transaction entry because it encompasses more complex elements beyond simple bookkeeping.

The Complexity of Transaction Entry

Many people underestimate the skill and effort involved in transaction entry. They often assume it's just about adding transactions from the bank feed into QuickBooks. However, my team knows that the bank feed can be a trap. QuickBooks often suggests adding transactions in a way that can be incorrect due to its assumptions, such as misidentifying vendors or incorrectly categorizing deposits.

Accurate Entry is Critical

For example, QuickBooks might see a deposit and suggest it’s from a customer when it could be a drawdown on a line of credit or a capital injection from an owner. This is why transaction entry requires a lot of training and a thorough understanding of your business. Our team uses the intended menus and functions of QuickBooks Online to enter transactions correctly and then match them in the bank feed instead of simply adding them.

Types of Transactions in QuickBooks Online

Here are some types of transactions we handle:

  • Sales Receipts: Money received from a customer and deposited simultaneously.

  • Invoices: Recorded as accounts receivable to be paid later, automatically included as revenue on an accrual basis.

  • Expenses: Payments made immediately, matched in the bank feed once posted.

  • Bills: Similar to invoices, but for accounts payable.

  • Transfers: Moving funds between accounts.

  • Journal Entries: More advanced transactions requiring a deep understanding of debits and credits, often needing a name attached for accounts payable or receivable.

Attaching Documentation

We prioritize attaching as much documentation as possible to each transaction. This includes PDFs, spreadsheets, and links to emails or Google Sheets. Using the attachment and memo fields in QuickBooks Online, we ensure every transaction is well-documented, making it easy to understand the details even years later.

Tools and Integrations

We use various tools and integrations to streamline the process:

  • UnCat: This app helps us get your input on uncategorized transactions without needing you to create a username or password. You receive weekly emails prompting you to provide descriptions and upload files.

  • Receipt Capture: Tools that allow you to snap pictures of receipts, sending them directly to an inbox for us to process.

Common Challenges and Solutions

We are vigilant about clearing uncleared transactions and reconciling accounts accurately. For example, if a check remains uncleared for more than 180 days, it's unlikely the bank will process it. We also pay close attention to your accounts receivable (AR) and accounts payable (AP) listings to avoid double-stating revenue or expenses.

Integration with Job Management Software

For our Buildertrend users, all QuickBooks transactions must be booked to an item, product, or service to sync correctly with Buildertrend. Accurate mapping of vendors, customers, items, products, services, and cost codes is essential. The bank feed alone cannot classify these correctly, which is why entering transactions organically is crucial for accurate syncing.

Service Plans and Frequency

The frequency of transaction entry depends on your service plan:

  • Tier 1 Pro Growth Plan: Weekly transaction entry and cleanup.

  • Tier 2 Accelerator Plan: Monthly transaction entry.

  • Tier 3 Starter Plan: Monthly transaction entry at a basic level.

Accurate and complete transaction entry is the foundation of your accounting platform, and while it may seem tedious, it is essential for reliable financial reporting.

If you have any questions about our transaction entry services or how they can benefit your business, please don’t hesitate to reach out or schedule a meet and greet with me directly. Thank you!

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