Why this matters
Your company profile flows onto every invoice and report, and settings like tax year and accounting method shape how your books are kept all year. A wrong legal name or EIN means mismatches with the IRS and your bank; the wrong accounting method quietly distorts every report you read.
What "done" looks like
- Legal name and EIN in QuickBooks match your IRS paperwork exactly
- Business type (sole prop, S corp, etc.) matches the tax form you actually file
- Accounting method (cash or accrual) is a deliberate choice
- Fiscal year, address, and logo are set so the first invoice looks right
How to do it
- Open Settings → Account and settings → Company and enter the legal name and EIN exactly as on your IRS EIN letter.
- Set the company type to your actual tax form — QuickBooks uses it to shape your accounts and tax mapping.
- Choose the accounting method. Most small businesses start on cash basis (income when paid, expenses when spent); accrual suits inventory-heavy or larger businesses.
- Confirm the fiscal year — calendar year for most US small businesses.
- Add contact info and logo so customer-facing forms are correct from day one.
Common mistakes
- Entering your DBA or brand name where QuickBooks asks for the legal name
- Leaving the accounting method at the default without knowing which basis your tax return uses
- Using a personal SSN when the business has an EIN
Real-world examples
- QuickBooks uses the company-type setting to tailor the default chart of accounts and tax lines — why fixing it later means re-checking accounts.
- The IRS expects consistency between books and return: changing accounting methods generally requires filing Form 3115, so the first choice matters.
From a founder's point of view
Ten minutes of profile setup is the cheapest accounting decision available. Every mismatch here resurfaces months later as a confusing report or an accountant's question at tax time — settle name, EIN, and method once, correctly.
Rule of thumb
If your QuickBooks profile, IRS letter, and bank account do not show the identical legal name and EIN, you are not done.