Why this matters
Your company profile flows onto every invoice and report, and settings like tax year and the default reporting basis shape how you view your books all year. A wrong legal name or EIN means mismatches with the IRS and your bank. The wrong default reporting basis can quietly distort how you read reports.
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
- Default reporting basis (cash or accrual) is a deliberate choice, and your tax method is confirmed with an accountant
- Fiscal year, address, and logo are set so the first invoice looks right
How to do it
- Open Settings, then Account and settings, then Company and enter the legal name and EIN exactly as on your IRS EIN letter.
- Set the company type to match the tax form your business actually files.
- Choose the default reporting basis. Cash-basis reports show income when paid and expenses when paid. Accrual-basis reports show income when earned and expenses when incurred. Confirm the tax method your business uses with an accountant.
- Confirm the fiscal year, which is the 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 default reporting basis unchanged without knowing which basis you need for reports
- Using a personal SSN when the business has an EIN
Real-world examples
- The company-type setting should match the tax form the business actually files, so fixing it later means rechecking that selection.
- The default reporting basis in QuickBooks does not determine the tax method used by the business. Changing a tax accounting method may require filing Form 3115, so confirm the method with an accountant.
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 the name, EIN, and default reporting basis 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.
