When I first started using QuickBooks Online, I assumed the software would kind of….. guide me. As in, if I clicked the wrong thing, it would gently stop me.
It does not do that. Lol.
QBO is powerful, but it will absolutely let you categorize things incorrectly, duplicate income, ignore a reconciliation problem if you don’t know what you’re looking at, just to name a few.
So here are some QuickBooks mistakes I almost made (and a few I did make early on)…. and what I learned from them.
This is going to get pretty long, so maybe grab a cup of tea….
1. Trusting Bank Feed Suggestions Without Thinking
When transactions come into the bank feed, they’re in the “Pending” section, meaning you have to categorize each item for them to actually go anywhere and to be able to be reconciled. QuickBooks has category suggestions.
At first I assumed, “If QBO suggests it, it must be right.”
Not necessarily. QBO learns from past categorizations, including incorrect ones.
Now, before I accept any suggestions or make changes, I ask:
- Does this make sense for this business?
- Is this consistent with how we’ve categorized similar transactions?
- Would this look correct on the P&L?
The bank feed is helpul. It’s not your bookkeeper though.
2. Ignoring the "Uncategorized Asset" Account
If you’re new to QBO, you might notice something called Uncategorized Asset on your balance sheet or in the Chart of Accounts.
This is not where things should live long-term. I create a new account in the Chart of Accounts for “Uncategorized Expense” and “Uncategorized Income”. When I clear items from the bank feed, especially in a cleanup, I push most items to the appropriate uncategorized sections (money going out of account goes to Uncategorized Expenses, money coming into the account goes to Uncategorized Income).
Early on, I didn’t realize how important this was. When a transaction sits in an “Uncategorized” account, it doesn’t truly tell the story of your business. It hasn’t been properly assigned to rent, software, supplies, sales, etc. It’s basically floating… it’s been recorded, but not meaningful.
And here’s why that matters.
Your reports only work if your categories are accurate. Your Profit & Loss won’t reflect real expenses. Your income won’t be grouped correctly. And if you hand that file to an accountant at tax time? They now have to untangle it all before they can even start doing their job.
When you intentionally use temporary “Uncategorized” accounts during cleanup, you’re doing something strategic. You’re separating transactions that still need review from transactions that are truly finalized. It gives you control. It gives you visibility. And most importantly, it keeps you financial reports honest.
Think of it like a holding room…. not a final destination. If you see a balance there, investigate it.
3. Recording Income Twice
This is such an easy mistake, especially when you’re new to QBO and just trying to keep things moving.
Here’s what typically happens.
You create and receive a sales receipt. Great. That means the income is already recorded in your books. It’s sitting there properly categorized, doing exactly what it should.
A few days later, the deposit hits the bank feed. Instead of matching it to the sales receipt you already entered, you click “Add” and accidentally categorize it as income again. Now QBO thinks you make that money twice.
Your Profit & Loss looks amazing… but not in a real way. Your revenue is overstated. Your net income is inflated. And if you’re not watching closely, you might not catch it until much later…. sometimes not until reconciliation or tax time.
The tricky part is that nothing looks obviously wrong at first. The deposit matches your real bank activity. The numbers seem to “work”. But behind the scenes, you’ve created duplicate income.
Here’s the mindset shift that helps:
The bank feed is not where income begins. It’s where transactions are confirmed.
If you already created a sales receipt or invoice and marked it as paid, the income is already in your books. When the deposit hits the bank feed, your job isn’t to add it again… it’s to match it. Matching connects the real-world bank activity to the transaction you already recorded. It keeps your books clean and prevents duplication.
If you’re ever unsure, ask yourself: “Did I already create something in QBO for this money?”
If the answer is yes, you’re probably looking for a match, not adding new income.
4. Skipping Reconciliation (Because "It Looks Fine")
In the beginning, I didn’t realize the importance of reconciling, and frankly, I was intimidated. It felt so “final”. If the numbers were similar and nothing looked wildly off, I’d think, It’s probably fine.
Big mistake.
Reconciliation isn’t about whether it “looks” right. It’s about proving that it is right. When you reconcile, you’re lining up your books with your actual bank statement and confirming:
- No duplicates slipped in.
- No transactions are missing.
- No deposits were recorded twice.
- No expenses accidentally hit the wrong account.
- No random errors hiding in the background.
Without reconciliation, you’re essentially trusting that every click you make all month was perfect. And that’s a risky assumption… especially when you’re learning.
What I’ve learned (sometimes the hard way) is that reconciliation is where problems reveal themselves. It’s where you catch that duplicated income from the bank feed. It’s where you realize a transfer was categorized as an expense. It’s where you see that one transaction didn’t import at all and is on your bank statement but not in your books.
Reconciliation is the confirmation. It’s the element that turns bookkeeping from guesswork into clarity. And once you build the habit of reconciling every month, it stops feeling intimidating and starts feeling empowering.
5. Editing Old Transactions Without Thinking Through The Impact
One thing QBO makes very easy is editing past transactions. You can click into something from three months ago, change the category, adjust the amount, swap the account…. and hit save.
It feels harmless. Sometimes it is. But other times? It creates a ripple effect you didn’t see coming.
Changing an old transaction can:
- Affect financial statements that were already reviewed.
- Throw off a reconciliation that was previously balanced.
- Change reports you already sent to a client, CPA, or business partner.
- Shift net income in a closed period.
And the tricky part is that QBO doesn’t stop you. It assumes you know what you’re doing.
When I was newer, I’d see something categorized incorrectly from a few months back and immediately fix it. That seems logical, right? We want accuracy.
But what I’ve learned, especially working at a firm, is that bookkeeping isn’t just about fixing errors. It’s about understanding context.
Was that month already reconciled? Were financials already sent out? Is that period closed? Will this change impact tax reporting?
Now, before I edit older transactions (outside of a cleanup period, of course), I pause and ask:
“Is this the right fix? Or should this be a current-period adjustment instead?”
Sometimes the better move isn’t rewriting history. It’s documenting the correction in the current month so your prior reports stay intact and your audit trail stays clean.
This is one of the “next level” bookkeeping elements that doesn’t always get talked about in beginner courses, but it matters. Because once you start treating the books like an official record instead of a flexible spreadsheet, your decision making changes.
And that’s a big growth moment.
6. Not Reviewing the Chart of Accounts
When I first opened a QBO file, I didn’t think much about the Chart of Accounts (heck, I hardly even knew what that was!)
It was just…. there.
I assumed as long as transactions were categorized somewhere, everything would work itself out. But here’s what I’ve learned ~ messy charts creates messy reports.
If you have duplicate accounts ~ like “Office Supplies” and “Office Expense” and “Supplies” ~ your data gets split across categories. Suddenly your Profit & Loss doesn’t clearly show what you’re actually spending.
If you have too many similar expense categories, it becomes harder to see trends. If you have accounts that aren’t used anymore, they clutter the system and make it harder to categorize confidently.
And if income accounts aren’t structured clearly? Your revenue reporting gets confusing fast.
The Chart of Accounts is like looking at the skeleton of the books. If the structure is solid, everything else runs smoother. It’s one of those foundational elements that doesn’t feel exciting, but makes everything feel more organized and professional. And when your Chart of Accounts makes sense for your business, your reports finally start telling a clear story.
I plan to go into more detail about setting up the Chart of Accounts in a future blog post, so stay tuned.
7. Thinking QBO is "Just Data Entry"
This might be the biggest mindset shift of all.
At first, I thought QuickBooks was mostly about entering transactions correctly. As long as things were categorized and the bank balance looked right, I felt like I was doing bookkeeping.
But real bookkeeping inside of QBO is so much more than typing in numbers. It’s about:
- Reviewing reports regularly.
- Spotting inconsistencies before they become problems.
- Recognizing patterns in spending or revenue.
- Asking, “Does this actually make sense?”
Two files can have the same transactions entered. One can be clean, reviewed, and reliable. The other can technically “balance” but still be full of issues.
The difference isn’t the software. It’s the thinking.
The software is just the interface. The judgement, review, and analysis? That’s the real skill.
This is something I noticed immediately once I started my job. Watching experienced bookkeepers review a file isn’t about speed… it’s about awareness and not making assumptions. They notice patterns. They question things. They think before they click.
And that’s when I realized bookkeeping isn’t just data entry. It’s financial problem solving.
If you're Learning QBO Right Now......
You’re not behind if it feels confusing.
QBO has a lot of buttons. A lot of menus. A lot of places to click. And the interface always seems to change.
That can totally feel overwhelming at first. What if I click the wrong thing?
But once you start to understand what each transaction is actually doing, where it shows up on reports, and how reconciliation confirms accuracy…. it starts to feel structured instead of chaotic. You stop clicking randomly and start moving intentionally.
I’m still learning new things inside of QBO every week, especially little efficiency tricks, review strategies, and cleanup techniques… and I’ll be sharing those elements here with you.
Because if something saves me time, prevents a mistake, or makes the books cleaner….. It’s worth passing on.
