Why Use QuickBooks? 5 Ways QuickBooks Helps Small Businesses Succeed

In the world of accounting software, a few names stand out, but none more so than QuickBooks. This versatile and user-friendly tool is a go-to for countless businesses of all sizes and industries. In this article, we’ll delve into why QuickBooks has become such a popular choice and how it could benefit your business.

What is QuickBooks?

QuickBooks is a comprehensive accounting software suite designed to handle the financial management needs of businesses of all sizes. It comes in several versions, including QuickBooks Online and QuickBooks Desktop, each tailored to different business needs and scales.

From small businesses looking for a simple way to manage their accounts to large enterprises seeking comprehensive financial management solutions, QuickBooks has something for everyone.

With its advanced features, such as credit card accounts, financial reports, and payroll services, QuickBooks simplifies accounting processes and enables businesses to track income, expenses, and cash flow effectively.

Additionally, it offers a 30-day free trial, allowing users to explore its capabilities before committing to a subscription. QuickBooks is a trusted and widely used platform that allows for accurate financial statements, tracks expenses, and simplifies tax season. By utilizing QuickBooks, businesses can streamline their accounting processes, save time, and gain valuable insights into their financial health.

Benefits of Using QuickBooks

Ease of Use

QuickBooks boasts an intuitive, user-friendly interface. The software is designed for ease of navigation, and even newcomers to accounting software can quickly grasp its functionalities. A wealth of tutorials and resources are available to help users along the way.

Versatility

QuickBooks offers compatibility with a range of other software, making it a versatile addition to any business toolkit. Furthermore, it offers extensive customization possibilities, allowing it to be tailored to specific business needs.

Financial Management

With QuickBooks, businesses gain access to real-time insights and reporting capabilities that help in strategic decision-making. From efficient cash flow management to simplified invoicing and payment processing, QuickBooks offers comprehensive financial management tools.

Tax Preparation and Compliance

QuickBooks shines when it comes to tax preparation and compliance. It tracks income and expenses meticulously, making tax season a breeze. Regular updates ensure the software stays in line with the latest tax laws, and the software can even assist with the preparation of tax forms.

Integration and Automation

QuickBooks’ ability to integrate with banking and third-party applications, as well as its automation capabilities, sets it apart from many competitors. These features can help reduce manual data entry and potential errors, streamlining business operations. Wondering if the software you rely on to run your business will work with QuickBooks? It integrates with over 750 popular business apps, from the most popular payment processors and sales channels to timekeeping, inventory management, and even productivity apps.

A few of the popular business apps that integrate with QuickBooks
A few of the most popular business applications that integrate with QuickBooks to streamline business operations.

Why Businesses Choose QuickBooks Over Other Options

Income Tracking

QuickBooks simplifies the process of monitoring and categorizing income, allowing businesses to stay on top of their financials.

One of the key features QuickBooks offers for income tracking is the ability to connect bank accounts directly to the software. This enables the automatic syncing of transactions, making it easy to track and categorize income in real time. Businesses can also manually enter income details for cash transactions or payments received through alternative methods.

QuickBooks allows businesses to categorize their income into specific accounts or categories, providing a clear breakdown of how revenue is being generated. This categorization helps businesses analyze their income streams, identify areas of growth, and make informed decisions about their financial strategies.

Furthermore, QuickBooks generates comprehensive income reports that provide an overview of earnings, allowing businesses to gauge their financial performance accurately. By monitoring income trends over time, businesses can identify patterns, track the success of marketing campaigns, and make adjustments to optimize their revenue generation.

Accurate income tracking is crucial for businesses as it ensures financial stability and helps in budgeting and forecasting. It enables businesses to understand the profitability of different products or services, identify areas where costs can be reduced, and make strategic decisions to maximize profits.

Expense Tracking

QuickBooks helps businesses track their expenses and bills automatically. By connecting their bank and credit card accounts to QuickBooks, businesses can effortlessly categorize and download all their expenses.

The ability to connect bank and credit card accounts to QuickBooks allows for seamless integration of financial data. Transactions made through these accounts are automatically synced with the software, ensuring accurate and up-to-date expense tracking.

Businesses can take advantage of QuickBooks’ categorization features to assign expenses to specific accounts or categories. This feature provides a clear overview of how funds are being spent and allows for better financial analysis and decision-making.

Additionally, QuickBooks allows businesses to create custom rules for categorizing tax-deductible expenses. This ensures that all eligible expenses are accurately tracked and recorded, making tax season a breeze.

Using QuickBooks for expense tracking offers the convenience of keeping track of bills and spending in one centralized location. It eliminates the need for manual data entry and reduces the risk of errors.

Overall, QuickBooks simplifies the expense tracking process for businesses, offering automation, customization, and convenience.

Invoicing

In addition, QuickBooks simplifies the process of invoicing for businesses of all sizes. With QuickBooks Online, businesses can easily generate and send invoices to their customers in just a few clicks.

One of the key features that streamline the invoicing process is the automatic population of customer information on invoices. Once customer information is saved in QuickBooks, it is automatically populated onto invoices, saving businesses time and reducing the risk of errors. This ensures that invoicing is accurate and consistent.

Moreover, QuickBooks provides businesses with the ability to customize their invoices with company branding. This allows businesses to showcase their logo, colors, and personalized messaging, creating a professional and cohesive brand image.

QuickBooks also offers the option to schedule recurring invoices, making it easier for businesses to bill customers on a recurring basis. This automation saves time and ensures that invoices are sent out promptly and consistently.

Another fantastic feature is the capability to accept payments directly through the invoicing tool. QuickBooks enables businesses to incorporate online payments into their invoices, providing customers with convenient payment options. This feature streamlines the payment process, improves cash flow, and reduces the need for manual payment tracking.

With its user-friendly interface, customizable options, and time-saving features, QuickBooks Online offers businesses a comprehensive invoicing solution that simplifies the billing process from start to finish.

Payments

Accepting online payments is a crucial aspect of running a successful business in today’s digital age. QuickBooks understands this need and provides a range of features to streamline the payment process for businesses.

With QuickBooks Online (QBO), users can send invoices directly through email, allowing clients to conveniently view and pay their bills online. This eliminates the need for paper invoices and speeds up the payment cycle.

One of the standout features of QuickBooks is its ability to integrate with popular payment processors such as PayPal, Stripe, and Square. This gives businesses the flexibility to accept debit and credit card payments directly within the QuickBooks platform.

For an even more seamless experience, businesses can also opt to link their QuickBooks accounts with QuickBooks Payments (formerly known as Intuit Merchant Services). QuickBooks Payments provides a comprehensive suite of payment processing services, including the ability to securely accept credit card payments, process e-checks, and set up recurring payments.

By partnering with these trusted payment processors and offering its own payment solution, QuickBooks has created an integrated ecosystem that simplifies payment collection for businesses of all sizes. Whether it’s online billing or the convenience of accepting various payment methods, QuickBooks provides the tools to streamline and manage payments efficiently.

Tax Deductions

Tax deductions can significantly reduce a small business’s tax liability, so it’s essential for entrepreneurs to capitalize on every deductible available to them. QuickBooks, a leading business accounting software, offers several features that simplify the process and help ensure no deduction is overlooked.

With QuickBooks, expenses are automatically categorized, making it easy to identify deductible expenses come tax season. The software also includes a mileage tracking feature, which is crucial for business-trip expense deductions. By keeping track of mileage driven for business purposes, entrepreneurs can accurately calculate mileage deductions and maximize their savings.

Organizing and accessing all tax-related documents can be time-consuming, but QuickBooks streamlines this process. The software allows users to store and categorize receipts, invoices, and other relevant documents in one centralized location. Additionally, QuickBooks offers the option to invite a tax preparer to access the account, simplifying the tax return preparation process.

By utilizing QuickBooks’ comprehensive tax features, small business owners can effectively maximize their tax deductions. From automatically categorizing expenses to tracking mileage and organizing tax-related documents, QuickBooks helps entrepreneurs stay compliant and take advantage of all available deductions.

Time Tracking

Another key feature of QuickBooks is its ability to track employee time and expenses, helping businesses streamline their payroll and billing processes. With QuickBooks, employees or subcontractors can easily enter their own time, eliminating the need for manual time tracking and reducing the chances of errors.

The software allows for accurate tracking of employee time for specific projects or tasks, making it easy to generate detailed reports. This not only simplifies the payroll process but also provides valuable insights into how time is being spent within the organization.

In addition to time tracking, QuickBooks also enables users to record and categorize expenses. This feature is particularly useful for businesses that frequently incur expenses on behalf of clients or customers. With QuickBooks, billable expenses can be easily marked and assigned to a specific customer, ensuring that they are accurately reflected on customer invoices.

By integrating time tracking and expense management into its functionality, QuickBooks offers a comprehensive solution for businesses to track and manage their employee time and expenses effectively.

Financial Reports & Statements

QuickBooks also provides comprehensive features that enable users to generate accurate and informative financial reports, aiding in tracking payments and expenses, and forecasting cash flow.

With QuickBooks, users can easily produce three primary financial statements: the Profit and Loss report, the Balance Sheet report, and the Statement of Cash Flows. The Profit and Loss report, also known as the income statement, showcases the company’s revenues, expenses, and net income or loss over a specific period. This report allows businesses to assess their overall financial performance for a specific time period.

The Balance Sheet report presents a snapshot of a company’s financial position at a specific point in time. It shows the assets, liabilities, and shareholders’ equity, providing a clear understanding of the company’s financial health and its ability to meet short-term and long-term obligations.

The Statement of Cash Flows tracks the inflow and outflow of cash within the business. It categorizes cash movements into three main sections: operating activities, investing activities, and financing activities. This report helps businesses understand the sources and uses of cash, aiding in making informed decisions about cash management and liquidity.

By utilizing QuickBooks to generate these financial reports and statements, businesses are better able to manage, analyze, and forecast their cash flow, ideally leading to better financial stability and success.

Desktop Versions vs. Online Versions

Things to consider when choosing between desktop and online versions of QuickBooks
Things to consider when choosing between Desktop vs Online accounting software.

Choosing between QuickBooks’ desktop versions and online versions depends on the specific needs of your business. The desktop versions offer the advantage of offline access and greater flexibility in terms of customizations. They are often preferred by businesses that require extensive inventory tracking or have complex accounting processes.

On the other hand, the online versions provide the convenience of accessing your financial data from anywhere with an internet connection. They offer real-time collaboration with team members and automatic backups of your data. Additionally, the online versions offer seamless integration with other apps and software, allowing for smoother workflow management.

Ultimately, the decision between desktop and online versions depends on your business requirements and preferences for accessibility and features.

Advantages of the Desktop Version of QuickBooks

The Desktop version of QuickBooks offers several advantages for small to medium-sized businesses that prefer using locally-installed software. One of the main benefits is the ability to have complete control over all financial data and processes. With QuickBooks Desktop, businesses can keep their sensitive financial information on their local servers, providing an added layer of security.

Accurate business records are essential for the success of any business. QuickBooks Desktop helps businesses maintain accurate records by providing robust features for recording and tracking financial transactions. This helps businesses avoid potential problems with funding, taxes, and compliance.

By using QuickBooks Desktop, businesses can easily generate reports such as balance sheets, income statements, and cash flow statements, allowing them to gain valuable insights into their financial health. This information is vital for making informed business decisions and strategizing for growth.

QuickBooks Desktop also provides comprehensive payroll services, enabling businesses to manage payroll taxes and process payments seamlessly. Additionally, it allows businesses to integrate their credit card accounts for efficient expense management.

So, QuickBooks Desktop is an excellent choice for small to medium-sized businesses that prefer locally-installed software. Its ability to maintain accurate business records, generate essential financial reports, and provide payroll services can help businesses avoid potential problems and ensure their success.

Advantages of the Online Version of QuickBooks

The online version of QuickBooks, QuickBooks Online, offers numerous advantages for businesses of all sizes. One major advantage is the automation of various accounting tasks, saving businesses valuable time and effort. QuickBooks Online automatically categorizes expenses and transactions, reducing the need for manual data entry and allowing for more accurate record-keeping.

Expense tracking is made simple with QuickBooks Online, as it allows businesses to easily record and monitor their expenses. This feature helps businesses stay organized and ensures that they are aware of their financial outflow activities.

QuickBooks Online also provides prebuilt reports that offer valuable insights into a business’s financial health. These reports, such as profit and loss statements and balance sheets, are essential for monitoring performance and making informed business decisions.

For businesses looking to maximize tax deductions, QuickBooks Online offers tax deduction tools such as default expense categories that help you track deductible expenses, automatic mileage tracking, automatic quarterly tax calculations, the Sales Tax Liability report, and payroll tax calculations handled within QuickBooks online. These tools help businesses identify eligible deductions and ensure compliance with tax regulations, saving them both time and money during tax season.

In addition to these features, QuickBooks Online also offers invoicing capabilities, allowing businesses to create professional invoices and streamline their billing processes. The mobile accessibility of QuickBooks Online further enhances its convenience, as businesses can access their financial information on the go.

Overall, QuickBooks Online provides a comprehensive and user-friendly accounting solution, simplifying accounting processes and empowering businesses to better manage their finances in real time.

Differences between the Desktop and Online Versions

When it comes to choosing the right accounting software, businesses have the option of selecting either QuickBooks Desktop or QuickBooks Online. These two versions of QuickBooks differ in terms of accessibility, installation, and pricing.

QuickBooks Desktop is a locally installed software that offers robust features and functionality. It provides a wide range of options for businesses, including advanced reporting, inventory management, and job costing. However, QuickBooks Desktop can only be accessed on the computer where it is installed. This may limit accessibility for businesses that require remote access or have multiple users who perform accounting and bookkeeping tasks. QuickBooks Desktop can be installed on a server for remote access, but this adds to the cost and complexity of the software and setup.

On the other hand, QuickBooks Online is a cloud-based solution that provides anytime, anywhere access. It allows users to access their financial data from any device with an Internet connection. This accessibility makes QuickBooks Online ideal for businesses with multiple locations, bookkeeping teams, or those that need remote access.

In terms of installation, QuickBooks Desktop requires software installation on each computer where it will be used. On the other hand, QuickBooks Online does not require any installation as it runs in the cloud.

When it comes to pricing, QuickBooks Desktop is an annual subscription with optional upgrades for additional features. QuickBooks Online also offers subscription-based pricing with different tiers and plans to choose from.

Another key difference is in terms of integration. QuickBooks Online offers seamless integration with a wide range of software platforms, allowing businesses to customize their accounting processes and streamline their operations. In contrast, after May 31, 2023, Intuit will no longer support add-on services for QuickBooks Desktop, limiting its integration options.

Overall, the choice between QuickBooks Desktop and QuickBooks Online depends on a business’s specific needs and requirements. It is important for businesses to carefully evaluate their accounting processes and consider factors such as accessibility, installation, pricing, and integration capabilities before making a decision.

Case Studies – Success Stories of Businesses Using QuickBooks

QuickBooks has driven success for businesses across the spectrum. Small businesses benefit from its simplicity and ease of use, medium-sized businesses appreciate its scalability and integrations, and large enterprises value its robust features and extensive reporting capabilities. These real-world examples illuminate the transformative impact QuickBooks can have.

A lot of clients struggle to get the accounting sorted when first starting their company as there are so many items they need to address. QuickBooks helps with the accounting side of the business, including payroll, collections from customers, sales tax, and more. QuickBooks makes it easy for a start-up to get going quickly.

Another client uses the Projects function in QuickBooks Online. The Projects feature lets them see their profitability per project, which helps them contain project costs and provide accurate bids on future projects.

Comparisons with Other Accounting Software

While other software like Xero, FreshBooks, and Sage each have their strengths, QuickBooks stands out for its comprehensive feature set, ease of use, and scalability. Its unique selling propositions make it a compelling choice for many businesses.

How to Get Started with QuickBooks

Choosing the right version of QuickBooks for your needs is the first step. Once you’ve selected the version that best suits your business, setting up your QuickBooks account is straightforward.

1. Input Company Information: After signing up for QuickBooks Online, you’ll need to enter your company’s information. This includes details like your company name, address, and contact information. This ensures that your company’s information is accurately presented on all reports and invoices.

2. Choose Accounting Methods and Currencies: QuickBooks Online allows you to choose your preferred accounting method, such as cash or accrual. You can also select your currency if your business operates in multiple countries.

3. Set Up Sales Tax: If your business collects sales tax, the next step is to set up sales tax in QuickBooks Online. Simply enter the sales tax rates applicable to your business, and QuickBooks Online will automatically calculate and track your sales tax liabilities.

4. Manage Inventory: If your business sells products, you can set up inventory management in QuickBooks Online. This enables you to track your inventory levels, receive notifications for low stock, and generate reports on your inventory turnover.

5. Create a Test Invoice: To familiarize yourself with the invoicing features, create a test invoice in QuickBooks Online. Enter dummy customer information, select an item or service from your inventory, and generate an invoice. This helps you understand how invoices are created and how they will appear to your customers.

A wealth of resources is available for learning and support, ensuring you get the most out of the software.

Conclusion

In conclusion, QuickBooks offers a comprehensive, user-friendly, and versatile accounting solution for businesses of all sizes. Its robust features, extensive support, and customization capabilities make it a leading choice in the accounting software market.

If you’re looking to streamline your business finances, it might be time to explore QuickBooks.

How Accounting Meister Can Help

We have over 20 years of QuickBooks experience and multiple QuickBooks ProAdvisor certifications, which means we’re experts in every version of QuickBooks. We specialize in helping small businesses and startups with choosing the right version of QuickBooks, getting QuickBooks set up and customized for their company’s specific needs, QuickBooks training to get up and running efficiently and accurately, and streamlining their accounting and bookkeeping processes. Getting started is easy! Schedule an initial consultation at a time that’s convenient for you.

Avatar for Scott Meister, CPA

Scott Meister, CPA

I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on scottmeister.teachable.com. Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale