Launched in 1998, QuickBooks has rapidly become the favorite software of accountants everywhere. It’s mainly due to an array of features and its intuitive interface. The program is particularly of use to small business owners. For them, hiring accounting professionals for bookkeeping tasks can turn out to be a costly affair. QuickBooks helps them immensely in easily carrying out key accounting activities that are prone to errors. If you’ve been wondering what is QuickBooks lately and want to familiarize yourself with it, this article is for you. It will give you a deep overview of the accounting solution. After reading it, you will be able to decide if it’s worth your investment.
What Is QuickBooks Used For
QuickBooks helps businesses of all sizes to manage their invoices, monitor cash flows, and pay bills. You can also produce monthly and annual financial reports. Here are some key ways to use this robust accounting solution.
Make and monitor invoices.
Different QuickBooks variants allow you to create invoices. Furthermore, you can also print or email them to your customers. It is also possible to access your outstanding invoices and the exact number of days they are overdue. You can do it by running an A/R aging report.
Produce financial statements
QuickBooks allows you to print your financial statements and gain an overview of your business performance. You can create profit and loss reports, balance sheet reports, and statements of cash flows. The PNL report shows how profitable your company is. The balance sheet report gives you a view of the assets and liabilities of your business as well as your equity. The statement of cash flows presents you the activities that influence cash inflows and outflows.
Monitor bills and expenditure
You can hook up your bank and credit card accounts to QuickBooks and view all your expenditures. You can also record cash or check transactions in the software easily. Enter your bills into the software, and it will allow you to monitor approaching payments.
Reduce your tax time
One of the chief issues business owners face is preparing a tax return when compiling income and expenditures. QuickBooks immensely helps in simplifying this task. All you need to do with it is print your financial reports during your tax return. QuickBooks Online goes a step further by giving you the feature to invite the one who prepares your tax to access your account directly.
Run your payroll.
Manually doing payroll is bound to create errors. The payroll feature in QuickBooks automatically computes and runs payroll. quickbooks payroll issues are integrated with the software. It, in turn, ensures that your financial statements are always updated. When you run your payroll via QuickBooks, you can pay your employees with a direct deposit or cash. It also automatically computes state and federal payroll taxes.
Monitor your inventory
The software can also monitor the quantity and worth of your stock. It also alerts you to order inventory when its levels are low. The Inventory Valuation Summary Report in QuickBooks Online displays a list of your products, their quantity, cost, and net worth.
Self-employed people use their vehicles for work purposes, which gives a tax reduction of 58.5 cents. But you must have a record of the day, distance, and why you drove your vehicle. All this is made seamless in QuickBooks Online. Its application leverages the phone’s GPS to detect when you are in a vehicle. Thus, you can go through your trips and categorize them as you want.
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Organize your receipts.
Organizing receipts becomes a breeze when you use QuickBooks. If you use QuickBooks Online, all you require is to download the QB app on your phone. Then snap a photo of your receipt. After that, upload it to QB Online. QuickBooks also gives you the ability to attach a receipt to the related banking transaction. There’s no limit to how many receipts you can upload to this accounting software.
What Are the Different Versions of QuickBooks
By now, you must have attained a better understanding of what is QuickBooks and how it is used. This software is available in several versions. These are explained in detail below.
QB Online is a cloud-based service. This solution is further categorized into three classes:
- Simple Start – In it, a single-user license is incorporated with the basic QuickBooks addition. Only two accounting professionals, the bookkeeper, and the accountant can access Simple Start.
- Essential version – It has a few more functionalities as compared to the Simple Start edition. Three user licenses can be activated simultaneously in this version.
- Plus version – It’s a more recent version, which gives a lot of features to the user. It allows as many as five user licenses. The software monitors inventory in real time and makes it seamless for you to produce your purchase orders.
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If you own a product-based firm, QuickBooks Desktop will be ideal for you. It has many features for producers, retailers, and distributors. This version has three variants, namely QuickBooks Pro, Premier, and Enterprise.
QuickBooks Self Employed
QuickBooks Self Employed comes in a subscription plan. It is particularly for freelancers. You can secure your bank accounts and credit cards with it and easily monitor the earnings and expenditures of your business. It also keeps a record of quarterly taxes.
QuickBooks for Mac
There’s also a QuickBooks version that is compatible with Mac. If you are a small business that isn’t into product manufacturing, QuickBooks For Mac Download will prove to be ideal. You can make fiscal year budgets and view unpaid invoices.
How QuickBooks Is Advantageous for Your Business
You can streamline your accounting processes quickly using a specific version of Quickbooks 2022 download. There are many ways it can enhance your business operations.
Get access to all financial information.
Through the software, it’s easy to view financial statements and taxes filed. Simply print them out and send them to your accountant. They can view your statements without needing any credentials.
Manage inventory in a hassle-free way
It’s quite complicated for business owners to track inventory, enter the right details and compute taxable income when a financial year ends. automatically updates the correct expense account, and it reflects in your taxable income.
Manage client data easily.
Accountants often need to deal with enormous amounts of their client’s accounting data. It often demotivates them to begin working on it. If kept physically in documents, such data has a higher chance of getting lost. With QuickBooks, you can store all your data files in well-designed formats in local systems. You can then share these files through emails with your clients. Thus, it dramatically reduces paperwork.
Easily access data related to work.
Accountants usually need to work during holidays or after work hours. There are many situations in which their clients cannot wait until the next working day. Such urgent tasks need to be done immediately. If it wasn’t for the cloud-based QuickBooks hosting solution, they would have to first go to their office, find the needed files, and then start work. However, cloud technology allows them to access the data they want anytime, anywhere.
Hopefully, you’re now fully aware of what is QuickBooks. Through this software, business owners can perform various crucial accounting activities with a button click. You can invest in a version as per your business needs. If you need help with it, contact a trusted QB technical support service.