Lack of cash flow management can be one of the biggest challenges for small business owners and, if managed incorrectly, can even spell disaster.
How QuickBooks Can Help Manage Cash Flow for Small Businesses
With 20% of small businesses failing within the first year and roughly 50% by the end of the fifth year, every small business owner needs to find a cash flow management solution to help them succeed.
QuickBooks is a helpful accounting software that can assist your small business with managing cash flow, monitoring expenses, and keeping track of its financial health for a better bottom line. However, it can be challenging to use without the proper knowledge of QuickBooks.
This guide explains QuickBooks, its features, and how South Jersey small businesses can use it effectively.
What Is QuickBooks?
QuickBooks is financial management software for small businesses created by Intuit, America's leading financial software provider. It allows you to manage income, track expenses, and monitor your business health.
It provides powerful features, including inventory management, invoicing, time tracking, banking and finance tools, and advanced reporting options. The system can even manage payroll functions for your employees.
When used correctly and paired with a CPA, QuickBooks can help you save both time and money by streamlining how to run your small business so you can focus on your strengths and ensure business continuity. QuickBooks can help you manage your accounts payable and receivable functions by providing access to powerful, easy-to-use financial tools.
This enables you to access all the business information at any time and from anywhere. QuickBooks is available on four desktops and three online versions, depending on your unique needs.
QuickBooks Features
QuickBooks offers powerful features to help you manage your small business better, including:
Electronic Payment Functions
QuickBooks' electronic payment functions allow you to pay and receive money electronically. You can send and accept electronic payments, including checks, debit cards, and credit card transactions.
It also lets you attach a “Pay Now” button for online invoices so customers can quickly pay through the button by ACH bank transfers, credit, and Apple Pay. Electronic payments are fast, secure, and easy to set up.
Remote Access
One outstanding feature of QuickBooks is its remote access capabilities. This feature allows you to access your QuickBooks data from anywhere, making it easy to work on the go.
You can easily sync with QuickBooks to update your data on any device with an internet connection, even on your mobile device. You can also use this feature to access your accounting information outside the office without worrying about data security.
Payroll Assistance
Payroll is a critical task for all small businesses. You don't want to make any mistakes calculating paychecks for your employees, which can result in penalties and unhappy employees.
QuickBooks has an integrated payroll system that tracks employee hours, calculates and runs payroll, including overtime pay, and helps you manage your business's financial statements. It enables you to pay employees with direct deposit or check, calculate payroll taxes automatically, and fill out all your payroll tax forms.
Tracking
QuickBooks offers a full-featured inventory management system to help you track and manage your business's products. You can easily track how much is in stock, how many items have been sold, how much money a product has sold for, and how many of each item you have remaining.
You can also easily track how far your business vehicles have been driven, how much you have spent on supplies, and which bills are paid or unpaid. You can even attach photos of receipts or other files in your accounting reports. Keeping track of expenses and invoices is also easy because QuickBooks provides a spending history and links to your accounts payable records.
What Version of QuickBooks Is Best for My Business?
Before you begin using QuickBooks, it is essential to know which version is best suited for your business. It is also important to note that QuickBooks only covers basic services. Small businesses also need a knowledgeable CPA to help maintain proper accounting records and use QuickBooks to its full capacity.
QuickBooks Pro
If you are just starting out, need only basic accounting functions, or have a small business that generates only a few invoices per year, QuickBooks Pro is the best choice for you.
QuickBooks Pro is also an excellent choice for small businesses with up to three employees who need to record payroll easily. This version of QuickBooks lets you download bank transactions, create professional-looking invoices, track expenses, and prepare sales tax reports.
Online vs. Desktop
Between online and desktop QuickBooks, which one is better suited for your needs?
If you plan to access your accounting information outside of the office through internet connectivity on mobile devices, then QuickBooks Online is for you. This version is perfect for businesses that need:
- Up to 25 users
- Access to data anytime and anywhere
- Access to data through any device with an internet connection
On the other hand, the Desktop version of QuickBooks is more suitable for businesses who need:
- Up to 40 users
- Customization of how to track your data
- More than standard transaction tracking
Master Your QuickBooks Usage
Managing your accounting functions can become stressful, especially when you don't have the right tools. Accounting is a necessary component of a small business, so having the best accounting software to integrate all your financial information is crucial.
An accountant will help you understand how to use QuickBooks to leverage its features more efficiently. Although QuickBooks is intuitive and easy to navigate, it can be overwhelming without basic accounting knowledge and experience.
Schwartz & Associates are your go-to CPAs and business coaches for your small business in South Jersey. Our professionals will help set up your QuickBooks, review your data regularly, and help with clean-up as needed. Contact us today for more information about how our services can help you.
