What is Quickbooks:Introduction
Do you want to expand your business? If so, QuickBooks can help you in every way possible. However, many people aren’t aware of “What is Quickbooks”
Thus, we decided to create a comprehensive guide to make you understand about QuickBooks. For such purpose, you must read this article all the way through the conclusion. Before that let’s have a quick overview of the QuickBooks first,
So, Let’s discover!
What is QuickBooks: A Brief Overview
If you’re not familiar with “What is Quickbooks” Then this overview will help you get an understanding of QuickBooks.
QuickBooks, created and marketed by Intuit, is the most popular small business accounting software used by small and mid-sized businesses to manage revenue and expenses and also help in keeping track of their company’s financial health.
It can also charge consumers, pay bills, produce reports, and prepare tax returns. Furthermore, QuickBooks provides a wide range of solutions that are appropriate for everybody, from a freelancer to medium-sized businesses and even large corporations.
Uses of QuickBooks Software
After going through the quick overview on “What is QuickBooks” let us now understand the uses of this robust software. QuickBooks software is mostly used by small businesses to process invoices, make payments, and track cash flows.
Moreover, it is used to prepare month-end and year-end financial statements, as well as assist in budgeting for quarterly or annual business taxes.
Furthermore, some small firms operate QuickBooks themselves, while others use an in-house or outsourced bookkeeper. Thus, to learn more about what Quickbooks is utilized for, consider the following key pointers:
- Create and track invoices
Invoices are simple to create in QuickBooks and may be printed or sent to customers easily. It will automatically track your earnings and how much each customer owes you. Even, you may examine the number of unpaid invoices, also known as accounts receivable (A/R), as well as how many days they’re past due by running an A/R aging report, using QB
- Maintain a Record of Bills and Expenses
QuickBooks records your invoices and expenditures automatically by integrating your bank and credit card accounts, which downloads and categorises all of your spending. If you need to manually track a check or cash transaction, QuickBooks allows you to do it in a couple of minutes.
You may also add bills into QuickBooks as soon as they come to help you manage future payments or A/P. You can ensure that you pay your bills on time by creating an A/P report. This report will provide you details on your current and past-due bills.
- Make Financial Statements for Your Business
If you handle all of your cash input and outflow processes in QuickBooks, you may generate financial statements that provide critical information about how your company is performing.
Lenders usually want financial statements when you apply for a small business loan or line of credit.
In QuickBooks, you may produce the three key financial statements shown below with just few clicks:
- The profit and loss statement report shows how profitable your business is. Also, it is computed by adding your income to your costs.
- The balance sheet report summarises a company’s assets, liabilities, and equity at a certain moment in time.
- The statement of cash flow highlights all of the business operations (cash inflows and cash outflows) associated with the firm’s operating, investing, and financing operations.
- Keep track of employee hours and payroll
You don’t want to jeopardise payroll by trying to handle it manually. Payroll errors like Quickbooks error 12002, may result in heavy penalties and unhappy employees. QuickBooks has its own payroll feature that can calculate and execute payroll automatically as often as you need it.
It also aids in keeping track of your employees’ working hours. The hours tracked are then applied to your customer billing (if applicable) as well as your payroll. This ensures that every hour your employees are compensated for is invoiced to a client.
The best benefit about using QuickBooks payroll is that it is completely integrated with QuickBooks, so your financial statements are always up to date as of the most recent payroll run.
- Keep an inventory
QuickBooks can track the quantity and cost of your inventory. It will automatically allocate a part of your inventory sales to the cost of goods sold, which is an expenditure account that impacts your revenue. This allocation is essential for calculating taxable income and takes an inordinate amount of time to complete by hand. When inventory levels are low, QuickBooks may send you an automated reminder to buy more.
QuickBooks’ creator, Intuit, has developed several QB variations. However, the major ones are as follows:
- QB Online
- QuickBooks Mac
- QB Desktop
Let’s go through each of these versions one by one.
- QB Online
If you’re curious about what quickbooks online is, then start reading till the conclusion.
Quickbooks Online is accounting software delivered as a cloud-based service. QuickBooks Online is intended to fulfil the needs of a variety of business types. This product has three extra classifications, which are as follows:
- Simple Start
QuickBooks’ basic edition includes a single-user licence. Data from Excel files may be easily transferred in QB online. Access is also restricted to two accounting specialists, the accountant and the bookkeeper.
- Essential Edition
This version of QB online is more feature-rich than the Simple Start edition. With Essential Version, you can have three user licences active at the same time. You may also be able to make invoices and payments on the backdate.
- Plus Version
This is the most recent version of QuickBooks. It offers much more advantages to its customers than the combined version. This edition supports a total of five user licences.
- QuickBooks Desktop
QuickBooks Desktop is suitable for people who run a product-based business with heavy inventory tracking needs. Furthermore, for builders, manufacturers, distributors, merchants, and others, the desktop edition provides custom COA lists, product and service listings, and much more.
QuickBooks Desktop includes the following products:
- Premiere and
- Enterprise and
- Pro Versions
- QB Mac
QuickBooks for Mac is Intuit’s financial software designed specifically for Mac users. You must use the QuickBooks Mac version if your PC is Mac-compatible. This edition is quite comparable to QuickBooks Pro and is suitable for the vast majority of small enterprises that do not manufacture items. It has several features, including:
- Invoices that have not been paid will be displayed on your Income Tracker dashboard.
- You may use it to generate fiscal year budgets and track your progress.
- Setting up and understanding accounting software might be challenging if you don’t have any accounting or bookkeeping background.
Although QuickBooks has several competitors in the market, this robust software has at least an 80% market share in the financial software world. As a result, the question of What is Quickbooks has become obsolete. In case you are having issues with QuickBooks, you may contact the technical support team for more assistance.