Everyone in this world is connected with financial aspects in some or the other way. Especially if a person is involved in any kind of business, then every parameter is measured in monetary means. To fulfill the purpose of business accounting needs, well-organized, powerful, and easy-to-use financial management software is required. For this, there is a need for reliable software so that the entire business can be managed. If the business owner is seeking the software in terms of reliability, flexibility, and security, then QuickBooks is an excellent choice for business accounting practices. This blog will elucidate what is QuickBooks? We will cover the functionality, uses, scope and what is beneficial about QuickBooks.
The software is flexible to manage all the accounting tasks of a business. It involves a shorter learning curve for beginners, and has an expansive scope of usability for experts. There are multiple things which can be performed via the tool like:
- Tracking business sales
- Creating and sending invoices
- Tax filing
- Charting business performance, etc.
The software manages sales, expenses and also keeps track of everyday transactions. After getting familiar with what is QuickBooks, users should also know how to use QuickBooks to meet the financial goals in their professional life.
How to Use QuickBooks?
Before using QB, it is a must for users to learn the way it functions and how to manage the software.
Steps to use QuickBooks
- Firstly, users need to install QuickBooks on their PC. It is then required to choose the type of installation required i.e. Custom or Network options. If it is used on just one computer and doesn’t share files with other PC, select “I’ll be using QuickBooks on this computer. “Additionally, if other PCs will access the files, select the option for the business to use network sharing.
Finally, users need to choose the folder where the program will be installed. - Afterwards, collect essential financial documents required to set up QuickBooks files.
- Next, create the company file and then hit on the QuickBooks desktop icon to launch the program.
- Initially, they will be given the choice to use the EasyStep Interview wizard to walk you through the procedure of setting up the company file.
Note: In case users have never used QuickBooks, they should take advantage of the wizard choice.
Vendor Account Set-Up
Then, users need to manage vendor accounts. Hit on “Vendor Center” which is on the top toolbar. Select “New Vendor” button for creating a vendor account. Apart from this, for adding a transaction, select “New Transaction.” Enter “Excel” or “Word” so that the action completes.
Employee Account Set-Up
Enter on “Employee Center” for creating and managing employee accounts. The users need to select “New Employee” for adding employee information. Then, they need to click on the “Transaction” tab for adding paycheck and other transactions. “Enter Time” option can be used to manage timesheets.
Customer Account Set-Up
The next step is to create and manage customer accounts. Select “Customer Center” and click “New Customer and Job” for adding a new source of income. Enter “New Transaction” for adding transactions. Likewise the vendor accounts, users have an opportunity to export customer information to Excel. Lastly, they need to generate reports via the “Report Center.” The feature can be used to get a snapshot of the financial areas of the business.
After knowing how to use QuickBooks for the business perspective the users can also know what is QuickBooks used for?
What is QuickBooks Used For?
Manage Sales and Income
Managing sales and income in QuickBooks is simple and it can be done by creating invoices. Users can track sales and income by reviewing the accounts receivable aging report. The report consists of both current and past due invoices.
Keep Track of Bills and Expenses
The software tends to keep track of the user’s bills and expenses via connecting bank and credit card accounts. In this manner, all of their expenses are downloaded and categorized in one place. In case there is a need to track a check or cash transaction, users can record it directly in QB.
Gain Key Reporting Insights to Your Business:
Multiple reports can be accessed by the users which gives valuable information about their business. The reports in QB are pre-built and can be seen in just a few clicks. Along with this, they are updated real-time as they enter and save transactions.
Run Payroll
Manually entering data can be troublesome and can lead to errors. Along with this, mistakes made in calculating paychecks will result in penalties and the disappointment of the employees. To assist in these tasks, the software contains the payroll function that calculates and runs payroll.
Scan Receipts
QuickBooks is capable of organizing receipts. QBO subscribers will be able to download the QB App on their mobile phone that too free of cost. The users will not stress on losing receipts or manually matching them up.
Accept Online Payments
User’s cash flow can be improved by providing the choice to pay their invoices online. They can add the Intuit Payments feature with QB at the single click of a button.
Simplify Taxes
QuickBooks helps its users to get rid of the trouble of coordinating, sorting and computing taxes. The remarkable tool allows its users to spend less time on their accounts and maximum time on the operations of their business.
Track Inventory
In case users want to keep a track of the inventory they sell, like in-hand units and their costs, the tool will track, update and enter the transactions instantly. Its users get comprehensive reports to establish ease in the management of inventory.
How Does QuickBooks Work?
An essential thing to learn is the knowledge of how does QuickBooks work?
Vendor, Customer and Item Lists
QuickBooks offers three centers to manage inventory and contacts-the customer, Inventory and Vendor Centre. It consists of the lists of transactions linked to a vendor or customer in a particular location. The Inventory Center gives streamlined management of both inventory and non-inventory items. Apart from this, every center gives a choice to search, add, edit or delete vendors, customers, and items.
Reports
Correct vendors and customer item details are required to be entered for creating a report. At the time of running a report, the users can customize the report for filtering information via a particular vendor, customer, item, transaction date or previous due payments and much more. After running a report, they can add it to a memorized or favorite report list.
Payroll
Payroll allows QB users for managing paychecks, pay liabilities and set annual limits on the particular payments. For a monthly fee, the tool offers online payroll choices for sending the direct deposit and email receipts of payments. Moreover, they can also edit information from the Employee Center for adding additional deductions, tips, and additional employee-specific details.
Billing and Invoices
The smart tool offers two types of statements i.e. Invoice statements and Billing. Billing statements are used to bill the customer charges. The statements get recorded in a special register i.e. Customer Register. The Invoice statement works fine for the items bought and paid for a particular transaction.
On a Final Note
As we have seen, QuickBooks is an essential financial tool to help you focus on the core operations of your business. It organizes and streamlines your financial and accounting tasks.
We hope that through this blog you understood what is QuickBooks, how to use QuickBooks, What is QuickBooks used for and how does QuickBooks work. It also illustrated how QB offers financial management solutions that can be helpful to support and run the business in a profitable way. Simply, get connected with our QuickBooks expert team to know the more benefits of the software. Make a quick call at QuickBooks Support Phone Number 1-877-263-2742 and take further assistance.
Reference Source: http://www.apsense.com/article/what-is-quickbooks-a-complete-guide.html
