The key to producing timely, reliable financial data is finding bookkeeping software that fits your business’s operations and reporting needs. Although there are many solutions to choose from, many small business owners turn to QuickBooks for its affordability and functionality. Here’s a closer look at how this popular software can help you make informed business decisions if it’s properly configured and maintained.
The basics
QuickBooks is designed to make many routine bookkeeping tasks accessible, even for users with limited software experience or accounting knowledge. It includes step-by-step instructions to help you get started with the software. Setup time varies based on your organization’s size, complexity and maturity. You may also need professional assistance to select appropriate settings, establish a chart of accounts, enter opening balances and migrate historical data.
Once setup is completed, QuickBooks can help streamline your accounting processes and support your business as its needs evolve. You can use QuickBooks for many critical accounting tasks, such as:
- Creating invoices,
- Recording revenue and expenses,
- Producing reports,
- Budgeting and forecasting future results, and
- Organizing data to help you identify tax deductions and credits.
QuickBooks offers several subscription plans and products for businesses with different accounting needs. The appropriate choice depends on factors such as the number of users, transaction volume, reporting requirements, inventory and payroll needs, and desired integrations. QuickBooks also provides dedicated solutions for certain industry niches, including construction, legal, nonprofits, restaurants and retail.
Additionally, there’s a mobile app for both iOS and Android devices. The app allows you to review financial information and perform other tasks while away from your computer.
Core features
In recent years, QuickBooks has expanded its automation, reporting and integration capabilities, making it even more useful for growing businesses. Available functionality varies by product and subscription level, and some features require additional services or third-party applications.
QuickBooks Online subscription plans generally include the following core features:
Bank and credit card feeds. You can import transactions from bank accounts and credit cards, then classify each transaction in your accounting records. The software’s auto-categorization tools may suggest matches based on prior activity, which can streamline transaction processing. However, suggested categories and matches still require review, and bank and credit card accounts should be reconciled regularly against account statements.
Customer and vendor management. QuickBooks can store customer and vendor information, including contact details, transaction and payment histories, and notes. It also offers tools for maintaining contractor information and assisting with Form W-9 collection and Form 1099 preparation. Maintaining complete records throughout the year can make year-end reporting more efficient.
Customized invoicing. You can also create invoices with your logo and offer customers several payment options. Payments can usually be accepted by credit card, through the Automated Clearing House network or through supported online platforms, such as PayPal or Venmo. Processing fees, deposit timing and available payment methods vary by provider and service.
Advanced functionality
Depending on your QuickBooks subscription level, you may be able to create recurring transaction templates and automate reminders, inventory alerts and approval workflows. These tools can reduce manual data entry and speed up routine processes.
More advanced versions of QuickBooks can track project-related time, expenses and revenue, making it easier to bill customers promptly based on the information recorded in the system. Custom fields and reporting tools may also allow you to evaluate performance by location, product line, customer type or other categories relevant to your business. These capabilities can help you identify profitable activities, monitor costs and compare actual results with expectations.
In addition, advanced subscriptions may provide purchase order, sales order and inventory tracking tools. These features can help businesses monitor quantities and costs. However, businesses with complex manufacturing, fulfillment or inventory requirements may need a specialized system or additional integration.
Businesses that purchase a compatible QuickBooks payroll service can manage payroll and bookkeeping information on a connected platform. The service may even calculate payroll taxes and handle certain tax payments and filings. Coverage varies by plan and jurisdiction.
QuickBooks also integrates with many third-party applications, including payment processors, payroll systems and e-commerce platforms, such as Amazon Business, PayPal and Shopify. These integrations allow you to connect systems for revenue, time tracking, inventory management and customer relationship management, reducing duplicate data entry.
Regardless of the features you select, QuickBooks requires human oversight. Appropriate user permissions, approval procedures, regular account reconciliations and a consistent month-end closing process can help protect financial information and produce more reliable reports. Your accountant can also review unusual transactions and make any necessary adjusting journal entries.
Let’s work together
Of course, bookkeeping software isn’t a substitute for your external accountant. Rather, it can enhance collaboration by providing secure, timely access to your books and shared documentation. Contact your accountant to learn more about implementing QuickBooks and other accounting solutions.
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