Resources
QuickBooks Online cleanup checklist
A QuickBooks Online cleanup is a structured review and repair of a company file so the accounts, balances, and reports can be trusted again. Every file is different, but this checklist covers the essentials — whether you do the work yourself or hire a bookkeeper.
Before you change anything
- Back up or export the QBO company (reports and an accountant’s copy if you use one).
- Note the last month that was fully reconciled and closed.
- Gather bank and credit card statements, loan statements, payroll reports, and prior-year tax returns or workpapers.
The file itself
- Review the chart of accounts: merge obvious duplicates, and make sure account types (bank, income, expense, liability) are correct.
- Connect or repair bank and credit card feeds. Then reconcile each account to the statement ending balance, month by month, including beginning balances.
- Clear undeposited funds and unmatched payments. Residual balances here often mean invoices and deposits aren’t linked.
- Review accounts receivable and accounts payable aging. Write off or correct items that aren’t real open invoices or bills.
- Check payroll liabilities against payroll reports and filings if you run payroll in or alongside QBO.
- Inventory and fixed assets: on-hand counts and asset registers should match the books, with depreciation or cost of goods recorded consistently.
- Loan and credit accounts: opening balances and payments should tie to lender statements.
- Owner’s draws, contributions, and credit card personal charges should be classified so profit isn’t distorted.
When the cleanup is “done”
Run a balance sheet and profit and loss, and compare cash on the balance sheet to reconciled bank accounts. If inventory, payroll, or sales tax applies to you, scan those reports too. A cleanup is finished when reports are explainable — not when every historical typo has been hunted down at all costs.
If you’d rather not do this alone, DeArmon Bookkeeping can help with a complete overhaul of your books or with ongoing support afterward. Schedule a free consultation.