QuickBooks is the most popular small business accounting software companies use to manage earnings and expenses and to track the economic health of their business. You could use it for invoicing clients, paying payments, generating reports, and making ready taxes. The QuickBooks product line includes several answers that work best for anybody, from a freelancer to a midsized business.
QuickBooks offers several alternatives, however, we suggest QuickBooks online for most new organizations. You may try QuickBooks online without cost with a 30-day trial that doesn’t require a credit card.
Although QuickBooks is very simple to log in and use, even it can create login problems like errors during login and QuickBooks time login issues. If you’re also facing QuickBooks online login problems, visit the link given to learn how to resolve these issues.
9 Ways Small Businesses Use QuickBooks
Small business owners normally use QuickBooks to manage their invoices, pay their payments, and track their cash flows. They also use it to generate month- and year-end financial reports, in addition, to putting together quarterly or annual business taxes. A few business owners control QuickBooks themselves at the same time as others opt to use an in-house or outsourced bookkeeper.
1. Create and Track Invoices
You can create invoices easily and either print them or email them to clients. QuickBooks will record the income and track how much every client owes you automatically. You may view the number of your notable invoices—referred to as your money accounts receivable (A/R)—as well as how many days they’re overdue by running an A/R aging record.
2. Keep Track of Bills & Expenses
QuickBooks maintains track of your bills and charges automatically by way of connecting your bank and credit card bills to QuickBooks so that every one of your charges is downloaded and labeled. If you want to track a test or cash transaction manually, you could record it at once in QuickBooks in a few minutes.
You could additionally enter bills into QuickBooks while you receive them so that QuickBooks assist you to track upcoming bills—or A/P. You can make certain that you pay your payments on time by creating an A/P report. This file will provide you with the info on your current and past-due bills.
3. Print Financial Statements for Your Business
By managing all of your cash inflow and outflow activities in QuickBooks, you could print financial statements that offer beneficial information approximately how your business is appearing. Lenders regularly require financial statements when you apply for a small business loan or line of credit.
You can produce these three primary financial statements in QuickBooks with a few clicks:
- Profit and Loss report
- Balance Sheet report
- Statement of Cash Flows
Profit and Loss Report
The profit and loss report will show you how profitable your enterprise is by way of summarizing its profits minus its expenses. The report indicates the lowest line net earnings (loss) for a particular period, along with a week, a month, or a quarter.
Balance Sheet Report
The balance sheet report shows what your business owns (property), what it owes (liabilities), and its net worth (equity) at a particular point in time.
Statement of Cash Flows
The statement of cash flows in QuickBooks will display you all of the activities that affect working, making an investment, and financing cash inflows and cash outflows in your business.
4. Track Employee Time & Expenses
Employee or subcontractors can input their own time as they progress through the day, or a bookkeeper can enter their weekly time if the worker submits a manual timesheet. Time entered and assigned to a client can be available to add to the client’s next bill. Any expense entered may be marked as billable and assigned to a customer. Similar to time, these billable costs might be to be had to feature in the client’s next bill. You don’t need the payroll add-on to track worker time for billing purposes.
5. Payroll
Payroll is an area that you don’t want to skimp on by way of looking to do it manually. Errors made in calculating paychecks can bring about steep consequences and unhappy employees. QuickBooks has its personal payroll feature which can automatically calculate and run payroll as often as you want. While you enter employee time as mentioned above, the hours no longer simplest float to your invoices but also the payroll module. In this manner, you could be assured that every hour you pay your employee is also considered for billing to a client.
The best thing about using QuickBooks payroll is that it’s integrated with QuickBooks so that your financial statements are always up to date as of the latest payroll run. The acquisition of a QuickBooks payroll subscription is needed to run payroll, however, you have got several levels of service to pick from to fit your needs.
Running your payroll through QuickBooks will allow you to:
- Pay employees with a check or direct deposit
- Calculate federal and state payroll taxes automatically
- Have QuickBooks fill in the payroll tax forms for you
- E-pay your payroll taxes directly from QuickBooks
5. Track Inventory
QuickBooks can track the quantity and cost of your inventory. As you sell inventory, it will allocate a part of your stock to the cost of goods sold (COGS) automatically, which is an expense account that reduces your income. This allocation is a demand for calculating taxable income and is hard to do manually. It can also remind you to order inventory automatically while quantities are low.
6. Simplify Taxes
Perhaps the most important aspect it can do to your small business is to simplify tax time. By using ways, the most important headache in getting ready for a tax return is compiling your income and charges. If you use QuickBooks during the year, all you need to do at tax time is print your financial statements. Better but, with QuickBooks online, you can invite your tax preparer to get entry to your account immediately that will review your numbers and print something information they need to put together your return.
7. Accept Online Payments
One of the best ways to enhance your cash flow with the flow is to offer customers the choice to pay their invoices online. You can upload QuickBooks payments (formerly referred to as intuit service provider services) so that clients pay online immediately from their emailed invoice. QuickBooks payments are similar to different service provider services. However, because it’s integrated absolutely inside QuickBooks, the sale, credit card charge, and a cash deposit are all recorded automatically as they occur.
8. Scan Receipts
Another key to making tax time a breeze is being capable of arranging your receipts in QuickBooks. All its subscribers can download the QuickBooks app to their cellular device totally free, take a photograph of a receipt, and upload it to QuickBooks online in only some mins—no more misplaced receipts or manually matching up receipts with downloaded banking transactions. It permits you to connect a receipt to the corresponding banking transaction. You can add a vast number of receipts to QuickBooks online as the receipts are saved within the cloud along with your data.
9. Track Mileage
Many self-employed and employees/owners use their private vehicles for business purposes. This offers a generous tax deduction of 58.5 cents per mile for 2022. However, to receive the deduction, you’re required to preserve a record of the date, miles, and motive of your journey.
QuickBooks Online makes this extraordinarily easy. Its mobile app will use the GPS for your cellphone to automatically experience whenever you’re in a moving vehicle. Then, you can evaluate your trips, classify them as non-public or business, and mark them as billable to a customer. Billable mileage costs will then be available to automatically add to the next bill you create for that client.
