QuickBooks should give you clarity. But if your file has even one of these mistakes, you could be:
- overpaying taxes
- making decisions on bad data
- or one IRS letter away from a financial mess
Most CPAs don’t review your books. They file taxes based on the reports they’re given. If those reports are wrong, so is your entire strategy.
Here are the 9 most common errors hiding in QBO and how to spot them before they cost you.
Error #1: Income Not Being Tracked Properly
Payments not matched to invoices = double-counting or missing revenue. That means bad tax bills and phantom profit.
Error #2: Personal Expenses Mixed With Business
Swiping your business card for groceries or gas can pierce your corporate veil and trigger an audit.
Error #3: Duplicate Transactions
Bills entered twice or duplicated by bank feeds inflate expenses and distort your bottom line.
Error #4: Misclassified Transfers or Payments
Loan payments coded as expenses or transfers showing up as income skew your profitability.
Error #5: Missing Sales Tax or Payroll Liabilities
Unrecorded payroll taxes or sales tax create IRS penalties and ugly surprises.
Error #6: Undeposited Funds Balance
Payments received but never deposited in QBO = underreported or duplicated income.
Error #7: Opening Balance Equity
This account should always be zero. If it’s not, your setup needs fixing.
Error #8: Unreconciled Transactions
Unreconciled accounts = missing or duplicate entries and unreliable reports.
Error #9: Negative Asset or Liability Accounts
Negative balances in bank accounts, loans, or credit cards = red flags for auditors and lenders.
Let’s Talk About The Cost of Ignoring These Errors
I once worked with an agency that thought their books were “fine.” But inside, we found duplicate income, unreconciled accounts, and liabilities missing. They weren’t profitable. They were paying clients to work with them.
After we cleaned up their QuickBooks, they saw which services were profitable, fixed their setup, and finally had the clarity to pay themselves consistently.
So What Do You Do Next?
Don’t wait until tax season to find out your numbers are wrong.
👉 Download our free guide: The 9 Costly QBO Errors That Keep You Broke for a quick DIY spot-check.
And when you’re ready for expert eyes? Book your QuickBooks Health Check. You’ll get a written report, a personalized video walkthrough, and a fix-it game plan, all delivered in just 48 hours.
Because more clients should mean more profit, not hidden mistakes.
