Bookkeeping is the foundation of any successful business, and when using QuickBooks Desktop or Online, it’s important to use the systems correctly. Whether handled by a full-time bookkeeper or a dedicated business owner, financial records must be accurate, organized, and compliant to ensure smooth operations. To review bookkeeping best practices that help keep your records neat and error-free, refer to The ABCs of QuickBooks.
D is for “Double Downloads” – How to avoid duplicate entries in QuickBooks
Many businesses rely on QuickBooks’ online banking integration to download bank and credit card transactions directly into their books. While this feature can save time, improper setup can lead to serious bookkeeping errors, impacting your financial statements and potentially increasing your tax liability. One of the most common issues? Double entries—which can create incorrect balances, distort cash flow, and lead to unnecessary corrections.
In this article, we’ll explain how double entries happen, how to avoid them, and why regular reconciliations are crucial for maintaining accurate financial records.
Common Causes of Double Entries
1. Downloading Credit Card Payments Twice
One of the most frequent bookkeeping mistakes occurs when a credit card payment is downloaded both from the credit card module and the bank module. Since a single payment moves from your bank account to your credit card, it should only appear once in your records.
How to Avoid It:
- Always download the payment from the banking module and exclude it from the credit card module.
- Double-check that payments are only clearing once in your bank reconciliation to prevent duplicate expenses.
2. Re-Downloading Transactions from a Prior Period
Another common issue arises when bookkeepers re-download transactions that were already posted in the ledger. This can lead to duplicate income, expenses, loan payments, and fixed assets, making financial reports inaccurate.
Why This Is a Problem:
- Profit & Loss Statement Errors: Overstated or duplicated income and expenses can misrepresent your business’s actual net income.
- Balance Sheet Inaccuracies: Assets, liabilities, and equity may be misreported, leading to incorrect financial positioning.
- Tax Return Mistakes: Double entries can inflate or understate your taxable income, potentially leading to IRS scrutiny or overpayment.
How to Prevent It:
- Ensure that transactions are only downloaded once per reporting period.
- Keep a record of previously downloaded transactions to avoid re-importing old data.
How to catch Double entries in Quickbooks
A key way to catch double entries is by performing regular bank reconciliations. Reconciliation ensures that every transaction recorded in QuickBooks matches actual bank and credit card statements. If duplicates exist, they will appear as discrepancies that need to be resolved.
Bernstein Financial Services is a full-service accounting and tax firm that helps business owners meet their financial goals in their personal and professional lives. For personalized guidance, please schedule a consultation appointment with a Principal.