When you review your financial statements, you want to know that they are reflective of what is really going on in your business. Here are 6 indicators that your QuickBooks numbers don’t reflect reality.
1) Large unexplained changes in your gross margin.
2) Accounts Payable doesn’t reflect what you really owe your vendors.
3) Loan accounts don’t show up on the balance sheet or don’t show the correct balance.
4) Loan payments that show entirely on the Income Statement or entirely on the Balance Sheet.
5) Profit number that doesn’t seem to make sense.
6) Large monthly changes in general, selling, and administrative expenses.