Why is it Important to Set Up the Advanced Settings?
Advanced settings is important because most of what’s here will be used as default settings for your financial reports, including your profit & loss statement, balance sheet, and cash flow statement.
There are also features here that determine how customer credits are applied and how you want QuickBooks to manage bill payments.
If you do not set up this area then your reports will be run using the default information for fiscal year, accounting method (i.e. cash or accrual), and chart of accounts. If these default settings do not match your actual business information, then it could result in incorrect financial reports. In turn, this could impact your tax returns, ability to get a business loan, and more.
This is definitely one of those areas that you do not want to skip.
In this lesson, we’re going to cover how to setup Advanced Settings in QuickBooks Online. These will be the default settings for your financial reports.
Source: How to Set Up Advanced Settings in QuickBooks Online