How To Use QuickBooks: Smoothen Your Business in 2022

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    QuickBooks is among the most well-known accounting programs for small-sized businesses in 2022. It doesn’t matter if you’re trying to move off the manual bookkeeping approach, your spreadsheets have morphed into an unheaded hydra, or require a more efficient alternative to your current system, QuickBooks is an ideal choice; without burning an in your pocket.

    In this article, we’ll explain the basics of what QuickBooks can do and the way it operates to let you know the many ways it can save you time and keep track of your financial reports.

    what is QuickBooks ?

    Created through Intuit, QuickBooks is accounting software that offers both online and desktop-based accounting software along with cloud-based ones that process the payment of business bills and other expenses. QuickBooks is primarily targeted at small and medium-sized companies. Its ease of use and the ability to report make QuickBooks popular with those who use it.

    How Quickbooks Can Benefit Your Business

    quickbooks small businesses

    Being one of the most recognizable brands in the field of accounting software, it is a must to sign up for QuickBooks significantly increases the chances that any other software your company might use, like CRM software (CRM), will connect to it and improve processes. At the moment, QuickBooks is offering two specials. You can either test the program for free for 30 days or sign up and receive 50% off the first 3 months.

    Here are a few other ways QuickBooks can help your business.

    Financial Statements at Your Fingertips

    It is easy to access all of the financial statements that are commonly used, such as the balance sheet as well as the profits and losses (P&L) statement, cash flow statements, and tax returns submitted. You can print a copy of these financial statements to your accountant and then send it over when you file, as well as invite them to look over the financial statements without having an account login account or password.

    Inventory Management

    Inventory Management

    If you are selling inventory, tracking them, putting the information into the appropriate expense account, and then calculating the taxable income at the conclusion of the fiscal year can be extremely difficult to manage manually.

    QuickBooks helps by automatizing everything. For example, when you receive the payment for any item on your inventory, the proper expenses account will be updated and reported automatically in your taxable income.

    Easy Taxation

    For various reasons, tax time is a source of the most stressful and stressful times. QuickBooks simplifies your company by automatically calculating your expenses and income when they occur.

    Even for payroll, an enormous tax burden, the tax is calculated each cycle automatically.

    Print a copy of the entire details your accountant requires to prepare your tax returns. Then, you can mail it to them quickly.

    How to use QuickBooks

    Small business owners generally employ QuickBooks to manage their invoicing, pay their bills, and monitor their cash flow. It also creates monthly and year-end financial reports and prepares quarterly or annual taxes for businesses. Certain business owners handle QuickBooks themselves, while others opt to employ an outside bookkeeper or an in-house one.

    1. Create and Track Invoices

    It is possible to make invoices quickly and then print them or send them to your customers. QuickBooks will track the income and keep track of the amount each customer owes you. You can see the number of outstanding invoices, also known by the name of your accounts payable (A/R) and the number of days overdue when you run an A/R report on aging. Below is an example A/R aging report that you can download from QuickBooks Online:

    2. Keep Track of Bills & Expenses

    QuickBooks tracks your expenses and bills automatically with the help of joining your financial institution and a credit card account QuickBooks to ensure that all your expenses are recorded and categorized. If you have to keep track of the cash or check transaction by hand, you can track the transaction directly in QuickBooks in just a few minutes.

    It is also possible to add bills to QuickBooks as they arrive so that QuickBooks helps you monitor future payments or A/P. You can make sure you make your payments in time by generating An A/P account. The report will give you information about the bills that are due and those that are not. Here is an example of an A/P report from QuickBooks:

    3. Print Financial Statements for Your Business

    If you manage all your cash flow and outflows within QuickBooks, You can generate financial statements that offer valuable information on the performance of your business. In addition, lenders typically require financial statements when you seek an unsecured small business loan or line of credit.

    You can create the three main financial statements using QuickBooks just only a few clicks

    • Profit and loss report
    • Balance Sheet report
    • Statement of Cash Flows

    4. Track Employee Time & Expenses

    Track Employee Time & Expenses

    Employees and subcontractors can record their time as they go throughout the day, or an employee can input their weekly time when the employee fills out a manual timesheet. Any time entered and assigned to customers can be added to the next invoice for the customer. Each expense you enter could be designated for billing and assigned to the customer. Like time, invoiceable expenses will be accessible to be added to the customer’s next invoice. There is no need for the payroll add-on to keep track of employees’ time-to-bill reasons.

    5. Payroll

    Payroll is one area you should not be sloppy about by doing it manually. Making mistakes in the calculation of paychecks could result in severe penalties and unsatisfied employees. QuickBooks offers a payroll function, which can calculate and process payroll as frequently as you want. When you input employee time in the manner described above, it is not only the hours that are credited to your invoices, as well but they are also sent to payroll. So, you are assured that your employees will also be considered a bill to a customer each time you invoice.

    5. Track Inventory

    QuickBooks will track the amount and price that your items cost. When you sell the inventory, QuickBooks can allocate a part of your inventory to COGS. (COGS) instantly that is an expense account that decreases your earnings. This is an essential part of calculating taxable income, and it is a hassle to perform manually. QuickBooks also can remind you to buy stock automatically when inventory levels are lower.

    Below is an example Inventory Valuation Summary Report that comes from QuickBooks Online. This report lists the names of your inventory items as well as the quantity in stock as well as the average cost, and their total value

    6. Simplify Taxes

    quickbooks online accounting

    One of the things QuickBooks can offer your small-scale business is to reduce the tax burden. Preparing your tax return is the greatest difficulty of preparing your expenses and income. If you utilize QuickBooks during each year, then all you have to do when tax time comes around is make sure you print those financials. Even better, with QuickBooks Online, you can invite your tax accountant to log into your account so they can look over your financials and print any necessary information to prepare your tax return.

    7. Accept Online Payments

    One of the most effective methods to increase liquidity is to give customers the option of paying the invoice online. It is possible to add QuickBooks Payments (formerly called Intuit Merchant Services) so customers can pay directly from the invoice they receive via email. QuickBooks Payments is similar to other merchant services. But, since it’s fully integrated within QuickBooks, the transaction, charges for credit cards, and a cash deposit are all automatically recorded when they occur.

    8. Scan Receipts

    Another important factor in making tax preparation an easy task is to keep your receipts organized in QuickBooks. All QuickBooks Online subscribers can download the QuickBooks app on their smartphone for free, snap an image of the receipt and then upload it to QuickBooks Online in just a few minutes. There will be no further lost receipts or connecting receipts with transferred bank transactions. QuickBooks lets you connect a receipt with the bank transaction that it corresponds to. It is possible to upload an unlimitable amount of receipts into QuickBooks Online as the receipts are saved in the cloud alongside your personal data.

    9. Track Mileage

    Many employees and self-employed utilize their personal vehicles for business reasons. This allows for a tax break that is 58.5 cents for each mile until 2022. To be eligible for the deduction, you’ll need to keep a log that includes the dates, mileage, and the reason for your journey.

    QuickBooks Online makes this incredibly simple. Its mobile application will utilize the GPS on your phone to sense the moment you’re in a vehicle that is moving. After that, you can look over your journeys, mark them as business or personal and declare them invoiceable to a client. Billable mileage expenses will be automatically added to the next invoice you prepare for the customer.

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