QuickBooks is one of the famous accounting software for small businesses, where these businesses use this software to track their income, expenses, and overall financial well-being. It allows us to prepare invoices/taxes for clients, generate reports, and pay bills. QuickBooks’ line of products carries multiple solutions to help various business needs like QuickBooks Desktop, QuickBooks Online, QuickBooks Time, and QuickBooks Payroll. With various QuickBooks accounting software options, we should choose the one that suits our business needs.
Now that we have an overview of what QuickBooks Accounting is, let us understand what it does.
Table of Contents
What Does QuickBooks Accounting Do?
Let’s have a look at what QuickBooks accounting can do for our business:
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Prepare, Send & Track Invoices
QuickBooks Accounting helps us easily prepare invoices by printing them or emailing them to customers. QuickBooks also records the income statement and automatically tracks how much each customer must pay. In addition, it let us view the number of our pending invoices termed accounts receivable (A/R) and the number of days the arrears are overdue by glancing through an A/R aging report.
We can also create the invoice from scratch or transform the current approximation into an invoice. Then, personalize the invoice by modifying the color and adding the company logo.
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Maintain a Regular Track of Expenditures & Bills
QuickBooks physically maintains track of our bills and expenses by connecting our bank and credit card accounts to QuickBooks so that all of our expenses are downloaded and bifurcated. If we need to physically route a cash or cheque transaction, we can document it directly in QuickBooks within minutes.
We can also type bills into QuickBooks as we receive them so that the software can help us track forthcoming payments. We can also make sure that we make our bills on a timely basis by preparing an A/P report. This report will provide details of our current and past-due accounts.
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Online Bill Payment
Bill payments can be made online in QuickBooks accounting with the help of the online bill payment factor. Online Bill Payments of QuickBooks accounting services help small businesses in various ways, for instance, it can pay bills through a fund transfer or viewing from QuickBooks directly within a few seconds and get the payment of multiple bills done at once. It even permits us to pay any dealer or distributor with the help of a credit card. QuickBooks Accounting online bill payment combines with QuickBooks Essentials, Plus, and Advanced.
To pay our first bill, we must mention information about our bank account, the method of payment we would like to use, and how our sellers would wish to receive their compensation. Post that, QuickBooks Online will make use of this information on its own to undertake future transactions, thereby reducing the data entry work. QuickBooks Accounting online will state that our bills are paid automatically and will delete them from the list of outstanding invoices.
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Printing Financial Statements for my Business
While managing all our cash inflow and outflow tasks in QuickBooks, it can also print financial statements that offer helpful information on the performance of the Business. For example, banks and other lenders usually need financial statements when we apply for a small business loan or line of credit. Nevertheless, we can create three primary financial statements in QuickBooks: Profit and Loss report, Report of Balance Sheet, and Cash Flow statement.
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Study Project Profitability
QuickBooks Accounting allows us to use QuickBooks Online Plus or Advanced to develop and lead projects, allocate income and wages to a particular project, and track expenditures connected with labor and materials. QuickBooks Accounting Online forecast accounting module also allows us to create project evaluations, including catalogues, sales taxes, and work.
When we can’t compare the actual and estimated costs, QuickBooks Online lets us check the profitability of every project we work on by preparing a project profitability summary report. Further, if we use QuickBooks Online, the QuickBooks clean up service gives us an accurate, healthy, and improved QuickBooks file.
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Simplification in Taxes
The most crucial thing QuickBooks can do for businesses is to streamline tax procedures. So far, the biggest task for a business in filing a tax return is calculating income and expenditure. If we use QuickBooks throughout the year, all we have to do at the last moment is to take a print of our financial statements.
However, with the help of QuickBooks, we can ask our tax developer to obtain our account as they can study our numbers and print the necessary information they require to make our tax return.
The Conclusion
QuickBooks is one of the fastest growing and most well-known accounting software for small businesses. It has various editions stored in it and has online-based and desktop programs. QuickBooks also carries features that let us track our income and expenditure, route our inventory, pay our employees and thus ease our taxes.
