What Is Quickbooks And How Useful For Accounting Works
When it comes to business management software, Quickbooks is one of the most preferred ones. It makes it easier for the users to handle all the expenses, incomes, financial status and health of the business. Other than this, you can also use the application to create invoices, generate reports, and pay bills. Keeping the requirements of all the users in mind, Intuit has launched different versions of Quickbooks which are appropriate for small and medium-sized businesses.
Despite all the versions of Quickbooks available, it is usually recommended to use Quickbooks online for more scalability and flexibility. If you wish you can also use the free trial version of Quickbooks online. So, if you are also new to Quickbooks, keep reading this post to know more about it.
A Brief of Quickbooks
Before knowing anything more about Quickbooks, you must first know “what is Quickbooks”. It is simply an accounting software that one can use to manage the expenditure, income and financial status or health of the company.
Other than these basic features, it also offers you other features like generating all the reports for the finances, preparing your taxes, and also create invoices. The best thing about the application is it comes in different versions suitable for different sized companies and even individuals.
Uses of Quickbooks Application
Quickbooks is generally used by small companies to keep track of all the invoices, cash flows, and pay when required. Moreover, they may also use it to automate the whole financial statements at the year-end and the month-end. Other several uses of Quickbooks application involve:
- Generating invoices: You can print and send all your invoices to your customer with some clicks only. This makes it easy for you to track which customer owes how much to you. Other than this, you can also use A/R reports to analyze the number of bills that needs to be paid.
- Financial Statements: Everyone needs to create a financial statement at the month and year-end to analyze how the firm is performing. However, a minor mistake in the report can be a disaster and hence, automating that process reduces the chance of these errors. Therefore, Quickbooks can be used to create financial reports.
- Employee Management: If you have a huge number of employees in your company, managing every employee’s data is going to be difficult. Quickbooks application offers you different features which enable you to keep track of the payroll and working hours of your employees.
- Inventory Management: With the help of the inventory management features, such as a spreadsheet template provided in the application, you can easily keep track of your inventory items and the cost of the inventory. Other than that, this computed inventory cost is then used to file taxes which if done manually, takes up a lot of time and can be error-prone.
How Does Quickbooks Work
Following are various features and services along with their working procedures of Quickbooks Proadvisor:
- Customer, Vendor, and Item list: The major accounting operations performed by an organization are creating and maintaining the lists. QuickBooks helps you to create and manage the customer, vendor and item list individually. The Customer and Vendor centres can be used to segregate various vendors and the customers as per the area. However, the inventory or the item centre allows you to create lists of products, services, etc. available with the centre. You can modify, recreate, add items, and perform various operations on these lists.
- COA by QuickBooks: QuickBooks provides the users with a very essential accounting feature i.e. the chart of accounts abbreviated ad COA. This chart allows you to manage the assets, expenses, loans, taxes and other accounts for your organization. This way, you can keep track and manage all your finances in a simpler and more organised manner. However, you can also create and maintain the balance sheets including all the expenses and incoming finances in your business or personal diary.
- Billing statements and Invoices: The users can create Billing statements for several activities happening in the company. You can also create a short term or a well-established billing statement for the expenses your company will face or is facing. Also, for small businesses and even for large ones, QuickBooks can be used to create salary invoices and other invoice statements for different purposes. You can also keep your billing statements and invoice statements in different locations to avoid any confusion.
- Creating Detailed Reports: For the users who are looking for accounting software that helps them to make reports for various activities and bills, QuickBooks is the rescue. You can make detailed reports for any purpose to submit to the client or simply keep them in your documents for further reference.
- Payrolls: QuickBooks can be used to create and keep a track of paychecks and payrolls for all the employees and the team members of your organization. You can also use this feature to keep a check on the expenses and contributions of employees in certain projects.
The different variants of QuickBooks suitable for different types of users are named as:
- QuickBooks Desktop– preferred by companies involved in selling/buying products
- QB Mac– a complete financial aid for the Mac users
- QuickBooks app– easy to use and highly accessible for all sorts of companies
- QuickBooks online– cloud-based server supported accounting application.
- QuickBooks self-employed– Favorable for freelancers and small businesses
The QuickBooks accounting software helps you throughout your account activities. It is easy to use and efficient, which makes it the first choice of professionals and beginners for accounting.