Does Downloading Replace Data Entry
by Janet
(Vancouver)
People have said that I am wasting all my time entering data into Quickbooks and that I should just download my statements from the bank and that would erase the need for me to manually enter data. Is this correct?
Hi Janet,
Downloading personal financial information is a great time saver but doing it with business records could lead to not having audit proof records.
What do I mean by that?
Well every expense and purchase must be backed up with source documents. There is a danger in downloading business transaction that a person becomes lazy and does not ensure they have the source document to support the income tax deduction.
That is my concern but ... downloading transactions is a great way to do the bank reconciliation though. It's a real time saver.
If you've kept up with your data entry, the bank reconciliation should be a breeze as it matches up transactions for you. It is really easy to see unmatched transactions that have not been recorded ... but that is just my opinion.
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