Introduction to How Does Quickbooks Work
QuickBooks is a popular accounting software widely used by mid and small-sized businesses for maintaining their financial records.
QuickBooks offers a gamut of services including managing income and expenses, generating reports, bill payments, tax preparations, and customer invoicing.
The platform works great to boost the efficiency of any organization. In this article, we will cover the working of the QuickBook platform along with some of the valuable tasks it can do.
How Does Small Business Can Use QuickBooks?
QuickBooks is commonly purchased as a cloud-based service. It is accessible as both a web-based and desktop solution.
The software is extremely easy to use. Even without professional training or accounting knowledge, business owners can benefit from the software.
In its most basic plan, Quickbooks enables you to view the flow of money in and out of your organization. It comes with an interactive interface to help you monitor the financial aspects of your business.
In a single glance, you can track your business’s income and expenses. This proves useful in managing the day-to-day operations of your business.
Additionally, it is also useful during tax season. Rather than juggling through your old receipts and invoices, you can simply have a look at your business’s financial status by navigating through QuickBooks.
What Does QuickBooks Do?
Create Invoices and Track Money
Invoice creation is one of the most basic functions of QuickBooks. It can generate professionally compliant invoices bearing your company logo and brand icon. The platform can produce multiple invoices for multiple clients.
The invoices created with QuickBooks contain the complete report of a particular account’s activity. Thus, tracking the money you owe to your customers (accounts receivable) and the money they owe to your business becomes very easy.
Analysis and Report Options to View Business Statistics
QuickBooks offers multiple business financial reports to make it easy for you to view your business’s health. The most important business reports provided by QuickBooks include:
- The Balance Sheet
- The Profit Loss Report
- The Cash Flow Statement
Using QuickBooks you can easily customize the time period for which you want to track the profit or loss of your business. It could be either weekly, quarterly, or annually.
Helps with tax Preparation
Quickbooks can help you organize your tax information in an easy and readable format. It is also compatible with other tax filing software.
By simply transferring data between programs, you can file tax. Moreover, the QuickBooks tax report attribute helps you save a lot of time and effort. And the most notable thing is that it prevents you from the risk of costly mistakes.
Track Employee Hours and Run Payroll
One of the best things about using QuickBooks is that you can track your employees working hours. This ensures that every hour you pay to your employee is considered for billing to the customer.
Additionally, running your payroll through QuickBooks lets you:
- Calculate payroll taxes automatically.
- Pay payroll taxes online directly from QuickBooks.
- Pay employees via a check or direct deposit.
- Fill payroll tax directly through QuickBooks.
QuickBooks can also help you track the cost and quantity of your inventory. As soon as you sell your inventory, the software will automatically allocate a portion of your inventory to cost of goods sold (COGS), an expense account.
This process proves useful in tax calculation which is otherwise difficult to be done using manual calculations. Furthermore, QuickBooks can also notify you to order inventory when quantities reduce.
What is QuickBooks Workforce?
The workforce is a pre-loaded feature of QuickBooks Desktop and QuickBooks Online Payroll. This feature can be activated without paying any installation or signup charge.
The QuickBooks Workforce feature allows employers to share paycheck information with their employees online. Using it employees can get complete control over their online payments. They can review their W-2 forms and pay stubs as per their convenience.
QuickBooks is the best accounting software for small businesses. It is accessible in several editions, including both online and desktop versions.
The QuickBooks software comes with a horde of features meant to simplify everyday business operations. It is an effective tool that can boost business efficiency and productivity seamlessly.