QuickBooks is a feature-rich accounting solution that allows businesses to save time and effort on repetitive accounting tasks.
Integrated resources assist in creating invoices, reconciling bank accounts, monitoring financial reports, and expense tracking.
Besides this, it supports data import from third-party applications, simplifying recording and categorizing incoming and outgoing transactions.
Before you begin setting up QuickBooks for your business, it’s essential to understand what QuickBooks is and your options for using it. Once you know your options, you’ll be in a better place to choose the QuickBooks edition that’s right for you.
What is QuickBooks?
QuickBooks is accounting software that enables you to keep track of your business’s income and expenses. With QuickBooks, you can access critical financial information at any time. Access to these reports significantly simplifies the process of filing your taxes.
Key features of the QuickBooks Accounting Software
Income and Expense Tracking: QuickBooks continuously learns from the user’s actions, and it enables users to build personalized guidelines for categorizing expenses.
Bill Management: This function enables users to easily record and monitor bills paid via direct deposit or check, create recurring bills, and automate purchase orders through personalized rules. Additionally, users can attach the program to third-party applications for seamless invoicing and payment.
Comprehensive Reporting: It allows users to monitor their businesses’ performance through their profit-and-loss ledger, balance sheet, and dashboard. Users can generate personalized reports based on current trends and provide financial information to potential investors to invest in their businesses.
Invoicing & Payments: This function allows users to match payments to invoices automatically, submit payment notifications, and monitor the status of invoices. Additionally, QuickBooks users can build customized invoices with their logo and can send them from any device.
Benefits of QuickBooks Accounting Software
QuickBooks provides a high degree of versatility when it comes to accounting tasks. As the name implies, it enables you to make seamless accounting entries for your business. The application is user-friendly and includes tutorials to assist you in quickly grasping its various functionalities.
There are several templates available to assist you in creating your records. You can generate invoices, manage payroll, maintain timesheets, and even create charts for your business strategies using QuickBooks.
Integration with other Applications
These QuickBooks can integrate with other applications, which is why they are so helpful for accounting purposes. QuickBooks integrates easily with data-creation applications such as Microsoft Excel.
This enables you to import data from such systems and arrange and maintain them in QuickBooks. You can export data from QuickBooks to other applications, such as your preferred tax preparation software, which simplifies the process of filing taxes.
Enhanced Financial Security
It is essential to understand that the data manipulated in business accounting is often associated with your hard-earned dimes. As a result, top-tier security should need to protect your finances from any unauthorized access that could endanger your business.
QuickBooks data centers constantly track 24/7 to guarantee the security of your assets. Additionally, they make use of security features such as multi-factor authentication and password-protected login.
QuickBooks has an abundance of features that can assist you in managing your finances. You will use the software to track all recurring bills’ due dates and other payment information.
QuickBooks tracks all transactions automatically, which is beneficial in the event of future audits. You can link your bank accounts to your system, removing the need for paper bank statements and letting you access all of your financial information on a single screen.
Effective Client Management
The key to success in your business is to treat your customers effectively and thereby earn their loyalty, even as they often refer new customers to you. QuickBooks enables you to take advantage of this in your business by providing streamlined access to all of your clients’ QuickBooks accounts through a single dashboard. As such, you can communicate with your clients through messages, alerts, and custom reports. This enables you to increase the value of your services and establish long-term relationships with your market.
QuickBooks is available in three versions:
- QuickBooks Desktop
- QuickBooks Online
- QuickBooks Hosting
1. QuickBooks Desktop
QuickBooks Desktop is a desktop software solution for small to midsize businesses that need the reliability of a desktop application. QuickBooks Desktop is also a good choice for niche businesses such as non-profit organizations, manufacturers, and general contractors seeking a solution tailored to their industry.
QuickBooks Desktop features are also somewhat plan-based, with the higher-priced plans providing the most robust range. QuickBooks Desktop includes automatic bank feeds, allowing you to access and download transactions regularly.
QuickBooks Desktop integrates effortlessly with QuickBooks Payments, enabling you to accept online payments from customers.
2. QuickBooks Online
QuickBooks Online is a web-based accounting solution designed for individuals and small businesses. The solution assists with bank reconciliation, expense tracking, invoice development, and financial report monitoring, among other functions.
Users can download and reconcile credit card purchases using QuickBooks Online. The solution enables businesses to manage weekly timesheets and bank deposits. Users may photograph bills and send them to the system as cost proofs or share them with the appropriate stakeholders.
QuickBooks provides personalized invoice, bill, and report templates customized with the business logo and desired fields. Additionally, the solution generates numerous financial reports, including profit and loss, balance sheets, and cash flow statements. Businesses may enforce permission levels for various employees to ensure safe access to financial data based on their job functions.
QuickBooks Online supports data import from integrated applications. You can also create hiring invoices, submit payment receipts online, configure payment reminder laws, and monitor receivables.
3. QuickBooks Hosting
QuickBooks Hosting is the term used to describe the installation of QuickBooks Desktop on a network that a third-party cloud provider hosts over the internet to provide remote access to data or files through a web browser.
Simply put, all information, data, and files stored in the cloud can be accessed remotely by authenticated users without the need to install them on a local computer.
If you want to take advantage of a traditional QuickBooks Desktop in a more open and robust environment, cloud-based QuickBooks hosting is the way to go.
Cloud-based QuickBooks enables you to access the software from any device running Linux, Mac, or Windows.
How do you pick a suitable version?
It is critical to choose the appropriate option to fulfill your client’s requirements. If every client were similar, you could go with a single choice.
But, this is seldom the case since most accounting firms serve clients of varying sizes. This implies that you’ll need a more adaptable alternative.
QuickBooks hosting enables you to select from various versions such as Pro, Premier, or Enterprise Solutions to meet the requirements of businesses of any size.
QuickBooks hosting enables you to take advantage of the cloud’s stability and mobility while retaining all of the desktop version’s functionality.
On the other hand, as you examine your practice, you might discover that some of your clients have relatively simple criteria that QuickBooks Online can meet.
QuickBooks Online could be a more affordable choice if you need remote access and have more than one user.
QuickBooks Hosting provides more appropriate options for small businesses, CPAs, and accountants looking to sort it out more quickly and efficiently. The significance of cloud accounting solutions continues to expand.
Meanwhile, QuickBooks Online continues to improve. Additionally, cloud-hosted QuickBooks seems to be a more straightforward option because it does not require any changes to the current desktop edition.
All of the cloud’s advantages are readily accessible.
Finally, the option between QuickBooks Hosting and QuickBooks Online comes down to your business and entrepreneur’s preferences and requirements. Select the best course of action for you and your client and assist them in better Invoicing & Expense Tracker