What Is QuickBooks And How Does It Work For Business
Published: October 25, 2022
Last Updated: October 25, 2022
Last Updated: October 25, 2022
Project Manager in Alpha Serve
Author: Nataliya Timoshina
Numbers are everything to a business. They tell you all you need to know about your business growth and bottom line at a glance and that is why companies invest heavily in accounting.
If you run a small business and can’t afford to hire various accountants, QuickBooks is a popular small business accounting software you can use to track your financial health. In this article, we will explain what QuickBooks is and how you can use it for your business.
If you run a small business and can’t afford to hire various accountants, QuickBooks is a popular small business accounting software you can use to track your financial health. In this article, we will explain what QuickBooks is and how you can use it for your business.
Table of Contents:
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What is QuickBooks Software?
Intuit QuickBooks is a full-featured financial and business management suite that offers complete accounting packages. The accounting software offers Desktop, Online, and Cloud-based solutions for tracking all financial information and creating reports of any aspect of the business.
QuickBooks was developed by Intuits and is popular among medium and small businesses because of its ease of use and reporting functionalities. The software has various features like electronic payment functions, remote access capabilities, online banking, reconciliation, etc. It is also available in different markets and versions to support the unique accounting needs of various regions.
QuickBooks was developed by Intuits and is popular among medium and small businesses because of its ease of use and reporting functionalities. The software has various features like electronic payment functions, remote access capabilities, online banking, reconciliation, etc. It is also available in different markets and versions to support the unique accounting needs of various regions.
Reasons to Use QuickBooks for Small Businesses
Save Time On Complex Bookkeeping
Save Time On Complex Bookkeeping
One of the biggest headaches small business owners face is doing paperwork to document their day-to-day operations. With Intuit QuickBooks, doing paperwork is as easy as ever. Everyday bookkeeping tasks are automated, which makes it easier to run your business. QuickBooks also makes it easy to generate comprehensive reports that detail all the information you need about your business.
Affordable
Affordable
With QuickBooks, you won’t have to spend money on hiring an accountant or outsourcing bookkeeping. That’s one of the reasons why this tool is the most popular for small businesses. You can handle all your bookkeeping needs with QuickBooks for just a few hundred dollars or less.
Scalable
Scalable
Although often described as an accounting tool for small businesses, QuickBooks can grow with your business. You can stick with this tool as your preferred accounting software regardless of the size of your business.
Standard Bookkeeping
Standard Bookkeeping
QuickBooks is designed to create accounting documents that are compliant with regulatory standards. You can produce balance sheets, profit and loss statements, cash flow statements, and other documents that are in line with the recommendations of the U.S. Small Business Administration.
Customizable
Customizable
QuickBooks is used by various businesses across various industries. The platform is designed to be as flexible and adaptable as possible so it works for a wide range of businesses. Whether you’re a contractor, retailer, or running a Nonprofit. The accounting packages offered by this platform can be customized to meet your specific needs.
Simplifies Data Sharing
Simplifies Data Sharing
It’s not enough to prepare accounting documents for internal use, you also need to be able to share data seamlessly across the different business applications you use. QuickBooks integrates with hundreds of business applications so you can share data seamlessly. Among the most popular ones are PayPal, Etsy, Amazon, Shopify, Ebay, Method:CRM, BigTime, Buildertrend and more.
QuickBooks Features
Invoice Creation and Tracking
Invoice Creation and Tracking
QuickBooks simplifies the process of creating invoices from an earlier estimate or scratch. You can share the invoices with clients through the mail, hard copy, or a printout, and you can track the numbers of outstanding invoices and details of account receivables and payables. Plus, you can customize the invoice to show your company logo and add desired effects.
Payroll Management
Payroll Management
QuickBooks payroll is available as a full-service and self-service solution. Small businesses can pay up to 50 employees through direct deposits or cheques, and the software automatically calculates and file your state and federal taxes.
Billing and Tracking Functions
Billing and Tracking Functions
Businesses can connect their bank and credit card accounts to QuickBooks. In this case, it will automatically track your bills and expenses. Not only this, but the system will generate reports you can use to analyze your spending pattern, and you can use QuickBooks to track upcoming payments. QuickBooks tracks billable expenses incurred by subcontractors and employees. Apart from this, bookkeepers can use the software to track and reconcile their timesheets.
Online Payments
Online Payments
QuickBooks has an online bill payment feature that allows small businesses to settle their bill or pay several of them at once, directly from the software, credit card, or via bank transfer in a few seconds. Businesses that operate in multiple international locations can also accept payment in local currencies with QuickBooks, and the system automatically records all transactions. This feature reduces data entry and helps to manage regular positive cash flow.
Easy Financial Statement Creation
Easy Financial Statement Creation
Since QuickBooks manages all your outflow and inflow activities, you can print related financial statements easily. They include a statement of cash flows, profit and loss reports, and balance sheet reports.
Inventory tracking
Inventory tracking
QuickBooks tracks inventory when you sell them and calculate taxable income at the end of the year. The system calculates tax every cycle and prints out all the information you need to file your returns.
QuickBooks Versions
There are different versions of QuickBooks. These include QuickBooks Online, QuickBooks Self Employed, QuickBooks Pro, QuickBooks Enterprise, and QuickBooks for Mac. Each version targets a different business type and structure. Here are brief descriptions of four of the most popular QuickBooks versions used by business owners around the world.
QuickBooks Self Employed
QuickBooks Self Employed
This is one of the most cost-effective versions of QuickBooks. QuickBooks Self Employed targeted at self-employed folks like Uber drivers, realtors, independent contractors, and freelancers.
QuickBooks Online
QuickBooks Online
QuickBooks Online has in recent times become the go-to option for several businesses. It is the cloud-based version of this accounting software. QuickBooks Online is simple and dynamic, catering to a wide range of user requirements. Instead of an upfront payment and local installation of the software version, QuickBooks Online users pay a monthly subscription fee and can access the tool via any browser on their device.
QuickBooks Desktop
QuickBooks Desktop
QuickBooks Desktop Software is an on-premises business accounting system that serves businesses in a wide range of industries. The desktop version has been around for more than 25 years. This version is great for small businesses to medium-sized businesses that prefer using a locally-installed QuickBooks software.
QuickBooks Mac
QuickBooks Mac
QuickBooks for Mac is perfect for business owners who work with their Macbooks and make less than a million dollars in annual revenue. Although it hardly comes in industry-specific versions, its features are identical to QuickBooks Pro. Users get to choose between using QuickBooks online version or installing it locally on their Mac computers.
QuickBooks Pricing & Plans
Users of the QuickBooks software pay on an annual subscription basis. The desktop license (also for Mac) only applies to one user, and you’ll have to pay extra for every additional license you need. The exact price depends on whether you’re signing up for Desktop Pro, Premier, or Enterprise.
Desktop Pro
Desktop Pro
Desktop Pro pricing begins at $349.99 per year. They are ideal for small businesses that need strong locally installed software for 3-4 users. You'll get automated updates, backup, recovery, and customer support. There's also tax support, budgeting, reports, project management, time tracking, journal entries, invoices and estimates, and contact management.
If your business needs a payroll plan, it is about $849 per year. There are additional fees to be wary of, that Intuit the makers of QuickBooks do not always share. Tax forms cost about $17, hosting begins at $59 per user, and live bank feeds will also cost between $10-15 dollars a month. Any additional users can cost $200 a year per user.
If your business needs a payroll plan, it is about $849 per year. There are additional fees to be wary of, that Intuit the makers of QuickBooks do not always share. Tax forms cost about $17, hosting begins at $59 per user, and live bank feeds will also cost between $10-15 dollars a month. Any additional users can cost $200 a year per user.
Desktop Premier Plus
Desktop Premier Plus
Desktop Premier Plus costs $549 per year if you want accounting software specific to your industry for up to five users. If you want payroll in addition, you're looking at $1,049 per year. You get all the aforementioned features including sales orders and tax support.
QuickBooks Enterprise
QuickBooks Enterprise
QuickBooks Enterprise offers Silver, Gold, Platinum, and diamond access. With cloud access, they all cost extra.
Silver - $1,340 costs increase with additional add-ons.
Gold - $1,740. All aforesaid features plus enhanced payroll.
Platinum - $2,140. All other features including advanced inventory and bill workflow approvals.
Diamond - $4200. All features in all other plans including assisted payroll and QuickBooks Time Elite.
Silver - $1,340 costs increase with additional add-ons.
Gold - $1,740. All aforesaid features plus enhanced payroll.
Platinum - $2,140. All other features including advanced inventory and bill workflow approvals.
Diamond - $4200. All features in all other plans including assisted payroll and QuickBooks Time Elite.
Other QuickBooks Products
Other QuickBooks Products
QuickBooks offers a range of accounting products and features for businesses, freelancers, and accountants. Users that do not want to install a locally-hosted software on their device can opt for an online version of QuickBooks known as QuickBooks online. Separate products such as Payroll and Payments solutions are also available as add-ons. Users that need these additional services can sign up for them as add-ons to the main plan they purchase. The following are the other QuickBooks products to check out.
QuickBooks Online
QuickBooks Online
QuickBooks Online is a cloud-based accounting solution for small and medium businesses. Unlike the software version that is installed on a computer, QuickBooks Online is accessible from the web browser of any internet-connected device.
It has the following core features:
● Track your income and expenses
● Down bank and credit card accounts transactions
● Send invoices and estimates on the go
● Create budgets and detailed reports
● Pay multiple bills at a time.
● Down bank and credit card accounts transactions
● Send invoices and estimates on the go
● Create budgets and detailed reports
● Pay multiple bills at a time.
Pricing:
● $15/month for the starter plan
● $27.50/month for essentials
● $42.5/month for the elite plan.
● $27.50/month for essentials
● $42.5/month for the elite plan.
QuickBooks Payroll
QuickBooks Payroll
This automated payroll service provider helps you pay bills, employees’ salaries, and taxes with a one-time activation. You can use QuickBooks Payroll as a separate product or an integration with QuickBooks Online.
QuickBooks Payroll features include:
● Scheduled and automated payment
● Payroll taxes payments
● Time tracking; timesheet approval with invoices creation
● Tax-penalty protection (Up to $25,000 compensation if you get a tax penalty
● Direct deposit.
● Payroll taxes payments
● Time tracking; timesheet approval with invoices creation
● Tax-penalty protection (Up to $25,000 compensation if you get a tax penalty
● Direct deposit.
Pricing:
● $37.50/ month Payroll Core +QuickBooks Simple Start
● $50/ month Payroll Core +QuickBooks Essentials
● $80/month Payroll premium + QuickBooks Plus.
● $50/ month Payroll Core +QuickBooks Essentials
● $80/month Payroll premium + QuickBooks Plus.
QuickBooks Live
QuickBooks Live
If you are not able to do the bookkeeping all by yourself, QuickBooks Live is the product for you. It helps businesses connect with virtual bookkeepers so they focus on other aspects of their business. You can be assured that the virtual bookkeeper is an expert with an average of 10 years of experience.
Some of the core features of this product include:
● Clean up of previous book records and start-up
● Regular reports
● Tax-ready books.
● Regular reports
● Tax-ready books.
Pricing:
$200/month for full-service bookkeeping.
QuickBooks Payments
QuickBooks Payments
This allows you to activate payments for your customers online and give them different payment options, fast deposits, and lower rates. As soon as payment is made, it automatically updates the book. It is not a separate product; you will need to get QuickBooks online to access the features of QuickBooks Payments.
Key features of QuickBooks Payment are:
● Pay-enabled invoices
● Contactless, in-person payments from anywhere in the world
● Digital payment
● Automatic invoice sending
● Quick deposits
● Automatic bookkeeping.
● Contactless, in-person payments from anywhere in the world
● Digital payment
● Automatic invoice sending
● Quick deposits
● Automatic bookkeeping.
Pricing:
Comes with QuickBooks online payment.
QuickBooks Time
QuickBooks Time
QuickBooks Time is for timing employees. It automates data entry of employees' sign-in time. It also shows who is working at a particular time. It is excellent for tracking employees' time data for precise payments.
Key features of QuickBooks Payment are:
● Pay-enabled invoices
● Contactless, in-person payments from anywhere in the world
● Digital payment
● Automatic invoice sending
● Quick deposits
● Automatic bookkeeping.
● Contactless, in-person payments from anywhere in the world
● Digital payment
● Automatic invoice sending
● Quick deposits
● Automatic bookkeeping.
Key features of QuickBooks Payment are:
Comes with QuickBooks online payment.
QuickBooks Capital
QuickBooks Capital
QuickBooks Capital is a business opportunity service by Intuit Financial Inc to small business owners to give eligible QuickBooks customers loans as capital for their business. The company critically looks at the company and offers different funding options. The interest rate ranges from 2.61% to 29.04%.
Features of this product include:
● Funding from $5000 to $150,000 for 6-18 months
● Timely funding
● Flexible loan options.
● Timely funding
● Flexible loan options.
Criteria:
● Personal and business credit history. Must have a personal FICO f at least 620
● A clear image of their business in QuickBooks
● QuickBooks account should be connected to the primary business bank
● Have revenue of at least $50,000 in a year.
● A clear image of their business in QuickBooks
● QuickBooks account should be connected to the primary business bank
● Have revenue of at least $50,000 in a year.
Conclusion
Conclusion
QuickBooks is one of the most popular and functional accounting software for small businesses. It has various product lines and versions you can use to track your income and expenses and fulfill tax obligations without stress. Try it today.
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