As a small business owner, keeping up with your company’s finances is crucial but can also feel overwhelming. That’s where using accounting software like QuickBooks can make all the difference in streamlining financial management.
At QBS Advisors, we want to provide you with a helpful beginner’s guide to QuickBooks. Read on to learn what QuickBooks is, its key capabilities, and how to start using it for your small business.
What is QuickBooks?
QuickBooks is a powerful accounting software platform developed by Intuit for small businesses to manage all their finances in one place. It provides tools to track income and expenses, create invoices, pay bills, run payroll, generate financial reports, and more.
With QuickBooks, business owners and finance staff can automate accounting processes, reduce errors, gain financial insights, and save significant time. It consolidates all your key accounting activities into an easy-to-use system accessible from your desktop or the cloud.
QuickBooks is the leading accounting solution for small businesses in the U.S. and has over 7 million users worldwide. It comes in several editions to meet different business needs:
1 – QuickBooks Online: Cloud-based version with anytime, anywhere access
2 – QuickBooks Desktop: Installable software for Windows and Mac
3 – QuickBooks Self-Employed: Streamlined version for freelancers and solopreneurs
4 – QuickBooks Enterprise: Advanced feature set optimized for larger businesses
Top Capabilities of QuickBooks
From invoicing to inventory management, QuickBooks provides robust accounting features for small businesses, including:
Invoicing & Billing
Easily create professional invoices, track payments, manage recurring invoices, and get paid online through QuickBooks.
Cash Flow Management
Keep cash flowing smoothly by connecting bank accounts to QuickBooks to reconcile transactions and track income and expenses.
Payroll
Run payroll including payroll taxes completely in QuickBooks. Integration reduces errors and saves time.
Inventory Management
Track product inventory across multiple locations. Monitor stock levels and sales to optimize supply chains.
Reporting & Analytics
Generate key financial reports on profit and loss, sales, expenses, cash flow, and more. Gain business insights.
Multi-User Access
Allow multiple users to access QuickBooks with customized permission levels for staff collaboration.
Mobile Apps
QuickBooks apps for iPhone, iPad, and Android allow accessing data and invoices on the go.
Getting Started with QuickBooks in 5 Steps
Ready to streamline your business accounting with QuickBooks? Here are the key steps to get started:
1. Choose Your QuickBooks Edition
Select the ideal edition for your business needs and number of users – Online, Desktop, Self-Employed, or Enterprise.
2. Sign Up for QuickBooks
Purchase a QuickBooks license and create your account online for cloud editions or install software for desktop.
3. Import Your Business Data
Import your lists of customers, vendors, accounts, items and existing data from Excel or other accounting software.
4. Complete Initial Setup
Walk through the start-up checklist to fully configure QuickBooks settings, preferences, and features.
5. Train Your Team
Have your accounting staff and anyone else using QuickBooks complete training tutorials or online courses.
Customizing QuickBooks for Your Business
While QuickBooks is preconfigured for ease of use, working with an advisor to customize it for your specific workflows and needs is key to maximize value.
Some examples of customization:
– Tailoring chart of accounts structure
– Setting up classes and locations
– Creating custom fields and transaction types
– Building custom reports and dashboards
– Advanced inventory setup
– Optimized workflows for your processes
Leveraging QuickBooks Reports and Analytics
QuickBooks contains powerful reporting capabilities to generate key financial statements and business insights. Reports that business owners and managers often rely on include:
Profit and Loss Statements – This report displays a summary of all your income and expenses for a specified period of time to show your net profit or loss. It helps you analyze the overall profitability and health of your business.
Balance Sheet – The balance sheet summarizes your business’s assets, liabilities, and equity at a single point in time. It provides insight into the liquidity, leverage, and capital structure of the business.
Cash Flow Statement – This shows the sources and uses of cash in your business over a period through operating, investing, and financing activities. It helps guide cash management decisions.
Sales Reports – Analyze sales by customer, item, region, salesperson, and other groupings. Identify your top-selling products, most profitable customers, and more.
Budget vs Actuals – Compare your actual financial results to budgets you’ve set up in QuickBooks to identify and analyze variances. Spot problems areas early.
Customer Profitability – Assess profitability for each individual customer to determine your most and least profitable client relationships and tailor sales strategies accordingly.
QuickBooks Add-On Apps and Integrations
To further tailor QuickBooks to your business needs, take advantage of add-on apps and integrations from the Intuit App Store:
Payment Processing – Accept credit card and ACH payments directly in QuickBooks to get paid faster and simplify reconciliation. Popular options include Stripe, Square, and PayPal.
Payroll Add-Ons – Enhance Intuit Payroll inside QuickBooks with add-ons like time tracking, employee onboarding, ACA compliance tracking, and workers comp administration.
Ecommerce Integration – Connect your online store to QuickBooks to sync orders, inventory, and financial data. Works with Shopify, WooCommerce, eBay, Amazon, and others.
CRM Integration – Eliminate double data entry by syncing your CRM tools like Salesforce, Zoho, and Insightly with QuickBooks.
Inventory Management – Use advanced add-ons like Fishbowl, TradeGecko, and Orderhive to take warehouse and inventory management to the next level.
Document Management – Automatically attach documents like invoices and bills to transactions in QuickBooks with add-ons from Google Drive, Dropbox, and OneDrive.
QBS Advisors – Your QuickBooks Experts
At QBS Advisors, we specialize in helping small businesses like yours implement and customize QuickBooks for streamlined financial management. Our certified QuickBooks advisors have the expertise to guide you through setup, tailor the software to your needs, provide training, and deliver ongoing support.
Contact us today to learn more about harnessing the power of QuickBooks for your company’s accounting. Our dedicated advisors are here to help you every step of the way.
Conclusion
QuickBooks provides a robust set of accounting, invoicing, payroll, reporting, and inventory management features to meet all the financial needs of a small business. Optimizing it for your specific workflows and needs through expert customization is key to maximizing value. Add-ons and integrations allow enhancing capabilities. With the right guidance and setup, QuickBooks can save you significant time on accounting while providing real-time financial insights to help manage and grow your business more strategically.
