Final answer:
To maintain accurate financial records, verify that QuickBooks has entered the appropriate reversing entries when making changes to transactions from a previous accounting period. These entries prevent duplication of revenue and expense recognition, ensuring accurate financial reporting.
Step-by-step explanation:
When you make changes to transactions from a previous accounting period, it is important to verify that quickbooks (QB) has entered the appropriate reversing entries. This practice is essential in maintaining an accurate and organized accounting record. Reversing entries are made at the beginning of a new accounting period, essentially reversing certain adjusting entries made at the end of the previous period. This ensures that revenues and expenses are recognized in the correct period, preventing duplication. For example, if an adjusting entry was made at the end of December to record accrued expenses, a reversing entry would be needed on January 1st to ensure these expenses aren't recorded twice when the actual expense is paid. Without verification of these reversing entries, financial statements can become inaccurate, potentially leading to poor business decisions and issues with tax filings.