Hi all!
Is anyone else finding that Quickbooks and their advertising policy of the last year or so (ramped up more recently) is creating real problems for businesses and their financial admin.
I have used Quickbooks in its various guises for over 15 years, but I am really getting worried about the records QBO users are producing when they don’t have support and follow the adverts of 'Don’t worry! “Thanks teeny, tiny hardnosed QB people!”
The experiences I am having are showing that QBO users are at high risk if they are selected for investigation in a way I can only compare to the loan schemes cases that are costing taxpayers thousands in penalties and interest.
I’ll give a couple of examples:
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Quickbooks says not to worry about payroll.
The employer hadn’t submitted the EPSs because Standard payroll doesn’t do it automatically so hadn’t recovered SMP etc correctly so were being chased for debts. They hadn’t realised all the rules behind NLW so had been underpaying and hadn’t followed any Workplace pension rules because they had heard it wasn’t appropriate for them. -
Client had been producing sales invoices and then making the most of the Banking functionality. Quickbooks suggests ‘Sales’ so they click accept, it suggests rules for wages and salaries, but doesn’t match that off against the payroll journal meaning that the bank looks reconciled but debtors and creditors (including payroll related) are doubled!
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Latest one today. I just need a tax return produced, please. Ok, so you’re self employed, will you be providing your accounts and the breakdown of debtors/creditors/depreciation/disallowed expenses, expenses eligible for AIA and FYAs?
“What? I use Quickbooks so its all done isn’t it?” The business expense sections clearly include personal transactions, include fully some personal expenses that should at least be aportioned and there are again duplicates where they have been using the banking tab.
If I’m honest, HMRC have got an open goal! Pick all businesses with turnover under eg £50k and without an agent on file.
That’s not how its meant to be. Software should be supporting the business owner and not put them at risks like this.
I just wondered if anyone else has had the same experiences or if I have just been unlucky?
Thank you!
Replies (25)
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Ha yeah when unrepresented new clients come to me and tell me they are using QB I know exactly how it is going to end.
I had a classic a couple of days ago, on social media some smart [***] was telling other BTL'ers to register for VAT so they could reclaim everything and anything.
We were discussing similar in the office this aft. Would be fun if HMRC posted some of the rubbish they find on ITRs on social media. Might make a few others think?
Seriously considered reporting QBO to advertising standards some time ago but was advised that due to our professional relationship with them it couldn’t be done.
Reckon they take marketing advice from a guy in the pub though.
They definitely need reporting. They are actually lying about how simple their software makes things.
It's not just qbo it's all of them.
Had someone ask where they tag their universal credit payments to on their bookkeeping software yesterday
Hello david,
All my Clients are on QB but I would say none of them could operate it on their own without an accountant. HMRC have made things so complicated I think most non accountants will not be able to run the books themselves without help. QB actually makes most things very easy BUT one needs to understand how it works.
I would say if your clients have not got an accountant helping them each month with everything they will get into a total muddle. I'm sure this is the same for Sage and Xero.
I
This is nothing other than an attack on Intuit. Many of your comments (misinformed or otherwise) apply to any online or even desktop software
your points
1. entirely your clients fault, it's not magic they have to take some responsibility or should be receiving guidance from you.
2. this is fairly basic stuff but it is is easy to post a receipt direct to sales rather than match it to the original invoice. one of your jobs should surely be to check this, thats why you are engaged.
3. for goodness sake isn't that what we are meant to do. i have never seen a client who hasn't had some private stuff go thru their accounts. perhaps you should consider using accountants tools so that reposting becomes a doddle.
your comments re clients without agents is preposterous. i suspect that still a small proportion of unrepresented people use QBO or other software and to suggest that they have all got it wrong is a misstatement
I suggest that you engage fully with your clients, and point them in the direction of online video support if you don't want to do it yourself.
I agree wholeheartedly with Julian
Nick
Intuit is getting the flack because they’re the only one going full on advertising just take a pic and the software does it all for you.
You are perfectly correct that we who have clients on QB, or Xero, owe them a duty to clear up any missteps in entering data. But have a care for thousands of unrepresentative traders who think it’s easy, when that is far from the case
First accountantd need to check clients accounts on a regular basis, with online they should always ask for access, this way accountants can nip problems in the bud. I have one client when I failed to do this as they had a very successful quarter and it was too late so I am all to aware.
Second it is wrong to single out QBO just because you think they advertise more.
Third I have a client with a £6 mill turnover and they use it very successfully
Fourth the old rule holds good garbage in garbage out.
Fifth always tell your client that it doesn't do everything and care is needed
It is an attack on Intuit because they are blatantly telling lies to "Joe public" about how "easy" it is to use there software.
The other software providers are also culpable but (as yet) have not overemphasised the ease of use.
Although the Xero TV ad implies it is safe and possible to change a wheel on a moving car.
I saw something suggesting 50% of tax returns go in submitted by taxpayer unrepresented by a proper agent
I suspect that is the reason that agents see so few tax enquiries
I do not fix the brakes on my car
But there are a lot of videos that show me how
People make their own risk choices
I have no client who, if they chose to submit from software, would have submitted anything like a proper set of accounts.
Even simple VAT ends up wrong
Couldn't agree more. The reason we can be confident that a majority (not all) of people will be getting it wrong on their own is through experience not assumption