QuickBooks is the most popular accounting program on the market, and it is the accounting software of choice for a significant number of entrepreneurs with minimal time to dedicate to trying to maintain their bookkeeping. QuickBooks offers a seamless solution for all the accounting needs of a small business with superb scalability and ease of use; unlike other financial software that have a steep learning curve.
Here are a few ways you should be using QuickBooks for managing your business:
1. Get the Most Out of Existing Reports:
- Use the accounts receivable aging to find information on who owes you money, and how much they owe you and since when.
- Similarly, use the accounts payable aging to find out whom you owe money to, while you monitor cash flow.
- Prepare reports with comparative balances to analyze the trends in your revenue and expense.
- Utilize the variety of pre-formatted and custom reports to analyze your business in ways that are of most value to you.
2. Use Budgets:
- Budgets present a target or a benchmark. You can compare your plans to your actual results to determine how things are going month to month and year over year. Are your expenses increases? What are the reasons behind these increases? Budgets are an important business tool.
3. Export Information to Microsoft Excel:
- Using QuickBooks, you can easily export all your data into Excel format. Doing this, will allow you to sort the data and prepare certain graphs and charts that may not be available to you in QuickBooks.
4. Use Classes:
- By using classes, you will be able to keep track of the income and expenses in a variety of categories, such as by a particular department, location, or any other breakdown that may be useful for your business.
5. Set It Up Correctly:
- You should take your time to learn and configure QuickBooks correctly or hire someone to do it for you. By configuring the software properly, you will create a solid foundation to work from.
6. Enter All Data Consistently:
- Consistency is important if you want accurate reports. For instance, if you enter ‘Albert Co’ at one place and ‘Albert Company on another for the same customer, you will end up with two different customers.
7. Close and Secure Periods with Passwords:
- When you close periods at the end of the month and secure them with a password, you prevent changes from being made to those specific periods that have been finalized after review.
8. Reconcile Cash at the End of the Month:
- You should always reconcile your bank accounts at the end of the month to ensure that the cash is accurate. If your reconciliations are accurate, chances are your other business activities will also be the same.
9. Use Adjusting Journal Entries:
- The journal entries are really useful for entering any transactions or for correcting prior periods. In QuickBooks, journal entries are used to record transactions that do not already have a designated form.
QuickBooks accounting software is very powerful that provides entrepreneurs a perfect platform for bookkeeping. With the proper know-how and practice, you will be able to flawlessly manage all of your incomes and expenses, or at the very least, you will be able to hire the right person to handle it for you.