Lack of cash flow management can be one of the biggest challenges for small business owners and even spell disaster if managed incorrectly.
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, without the proper knowledge of QuickBooks, it can be difficult to use.
This guide breaks down what QuickBooks is, its features, and how South Jersey small businesses can use QuickBooks effectively.
What Is QuickBooks?
QuickBooks is a financial management software for small businesses created by Intuit, America's leading financial software provider. QuickBooks allows you to manage income, track expenses, and keep tabs on your business health.
It gives you access to powerful features, including inventory management, invoicing, time tracking, banking, and finance tools, including advanced reporting options. You can even manage payroll functions for your employees through the system.
When used properly 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. By providing you with access to powerful, easy-to-use financial tools, QuickBooks can help you manage your accounts payable and receivable functions.
This enables you to access all the business information at any time and from anywhere. QuickBooks is available in four desktop versions and three online versions depending on your unique needs.
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 easily pay through the button by ACH bank transfers, credit, and Apple Pay. Electronic payments are fast, secure, and easy to set up.
One outstanding feature about QuickBooks is its remote access capabilities. Allowing you to access your QuickBooks data from anywhere, this feature makes it easy for you 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 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 a direct deposit or check, calculate payroll taxes automatically and fill all your payroll tax forms.
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 keep track of 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 history of your spending and links to your accounts payable records.
What Version of QuickBooks Is Best for My Business?
Before you begin using QuickBooks, it's essential to know what version of QuickBooks 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 further use QuickBooks to its full capacity.
If you are just starting, or need only basic accounting functions, or have a small business that only generates a few invoices per year, then QuickBooks Pro is the best choice for you.
QuickBooks Pro is also an excellent choice for small businesses with up to three employees for easy payroll recording. 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 who 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 it's crucial to have the best accounting software to integrate all your financial information.
An accountant will help you understand how to use QuickBooks to leverage its features more efficiently. Although QuickBooks is very intuitive and easy to navigate, it can be overwhelming if you lack 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.