QuickBooks is an accounting software product from Intuit, the company that made one of the first personal computer accounting programs, Quicken, in 1983.
Quicken focused on personal finance, but QuickBooks is for small businesses, freelancers, and entrepreneurs. It offers various business-centered features, such as payroll, bill pay, report creation, tax tracking, and expense balancing.
In addition to the long-running desktop version, Intuit now offers a cloud-based QuickBooks option called QuickBooks Online. This product uses a monthly subscription pricing model. The company also has specialized versions of QuickBooks for self-employed people and medium-sized businesses.
QuickBooks is extremely popular. Why does it have such a large share of the accounting software market? Here is a closer look at what QuickBooks offers to small business people, entrepreneurs, and self-employed professionals.
Table of Contents
- 1 Benefits of Using QuickBooks
- 2 Who Should Use QuickBooks?
- 3 How to Use QuickBooks in Your Business
Benefits of Using QuickBooks
QuickBooks has various advantages that appeal to small businesses, entrepreneurs, freelancers, and other self-employed individuals. These business-related accounting benefits help it stand out from other computerized accounting products.
Easy to Use
QuickBooks is easy to use because you can tailor the features to meet your needs, so you do not have to wade through enterprise-level accounting features if you only need simple accounting functions for your small business.
If you do run into issues, QuickBooks has specialized support for each of its products. It also has a knowledge base with nearly half-a-million articles that users can access to find solutions to specific issues.
The QuickBooks website makes it straightforward to find specific information, such as the financial statements you would need to apply for a small business loan.
QuickBooks has a user-friendly interface. Some accounting programs have a steep learning curve. This issue can be especially problematic for people using accounting software for the first time after relying on the traditional pen-and-ledger accounting method.
Intuit has improved QuickBooks over time and made the user interface more intuitive. Business people who have experience with other accounting software solutions will likely learn to use Quickbooks very easily. Meanwhile, those without accounting software experience do not have to learn a lot before they can track income and expenses and generate reports.
With QuickBooks, you can automate accounting tasks that would otherwise be very time-consuming. Compiling financial reports, balancing books, sending invoices, and paying employees or contractors can take hours out of a small business owner’s already-busy workweek.
Quickbooks can help automate these tasks by sending recurring invoices or generating weekly finance reports. This automation saves entrepreneurs from business busy-work and frees them up for more critical entrepreneurial tasks, such as business development and management.
QuickBooks has specialized versions specifically for small businesses, medium-sized businesses, and self-employed people. In addition to these specific features, users also get a variety of ready-to-use templates for spreadsheets, invoices, and reports. More importantly, QuickBooks lets you customize these templates to make them look unique without building them from scratch.
QuickBooks Online offers four different subscription levels: Simple Start, Essentials, Plus, and Advanced. The higher levels have more features, allowing owners to increase their subscription level as their small business grows rather than getting a more-expensive level at the start.
Quickbooks is always generating promotions to better accommodate their customers’ needs. Currently offering 50% Off Quickbooks Online.
Who Should Use QuickBooks?
QuickBooks is an accounting software solution for various types of small businesses. Those who can benefit from QuickBooks include:
- Men and women who own a small business and want to do their own accounting.
- Freelancers and contractors who work with more than one client.
- Sole proprietors who manage all aspects of their business by themselves.
- Retail business owners who need payment processing and sales tax compliance services.
- Individuals with a side business who have no extra time to spend on bookkeeping tasks.
- Accountants or bookkeeping professionals who work for a small or medium-sized business.
- Freelance accountants who work for various clients.
How to Use QuickBooks in Your Business
QuickBooks has some obvious uses, such as tracking sales and income. You can also use it to perform other functions, such as invoicing, tax preparation, and inventory.
Here is a closer look at the things that QuickBooks can do for small businesses.
Sales and Income
QuickBooks allows you to import transactions from different sources, including PayPal, credit card processing systems, and your bank account. This feature allows you to track sales and income automatically.
QuickBooks also has a payment processing feature, and it lets users organize transactions by category for accounting or tax purposes.
Bills and Expenses
QuickBooks offers expense tracking features. Users can connect bank accounts or business credit card accounts to the accounting software and automatically track and categorize expenses. You can also track bills, set payment reminders, and create automatic payments for monthly bills.
With QuickBooks, business owners can create customized reports and change their settings so that important metrics such as cash flow and debt get displayed on the QuickBooks dashboard.
Users are also able to make customized reports that include figures related to their company’s credit score or projections that can help create a budget.
Profits and Loss
With Intuit’s accounting software, business owners can track profits and losses with automatically created reports. Thanks to real-time data, they’re also able to see profitability data for their business operations or an individual project on a QuickBooks dashboard.
Because you can include inventory and labor costs in the profit and loss calculations, you can get a very accurate picture of your business’s overall profitability.
Cash Flow Statements
After connecting your bank accounts to the software, you can get real-time cash flow information, create cash flow statements, and make one and three-month projections based on cash flow data and variables.
Cash flow statements help you understand your current situation, but they can also help you make plans and projections and prepare for future changes and challenges.
Cash flow statements are also vital for attracting investors and obtaining financing.
Businesses can use QuickBooks to automatically populate their balance sheets with numbers for debt, income, assets, and other important figures. Balance sheets are vital as companies grow and look to attract investors, get loans, and forge partnerships with other businesses.
Quickbooks’ Auto Payroll feature calculates payments for employees and contractors based on hours worked or other variables. Furthermore, the software deducts taxes from paychecks and files them automatically.
Though you have to set up the software so that it uses the proper rates and percentages when paying employees and calculating taxes, the process is completely automated after the initial settings are in place.
QuickBooks tracks inventory in real-time, and it offers tools that project how long stock will last based on current sales and demand.
The software can also convert received inventory into a bill using the purchase order. This feature allows businesses to keep track of inventory-related expenses in real-time.
QuickBooks helps with both business taxes and sales taxes. Business owners are able to create snapshots of receipts and connect business accounts to QuickBooks to track expenses for tax deduction purposes. They can easily share this data with tax accountants to ensure maximum deductions and accuracy when filing taxes.
QuickBooks also tracks sales and calculates sales tax. You can also figure out sales tax rates based on location and product or service type.
Quickbooks has professional-looking invoice templates that users may customize with their company’s logo and billing details.
You can also automate the invoicing process by sending invoices in batches, accepting payments online, and populating invoices with expense, time, or project data.
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