Affordable technology helps small businesses streamline their workflows and accounting software such as QuickBooks is a perfect example.
Last year, we shared an A-Z of accounting, and our posts about QuickBooks is one of the most viewed. So we thought we’d look at how it can benefit your business.
Accounting software has been around for some time but some of the earlier versions tended to be geared up for large companies. As a result, the price was out of the reach of many small companies.
QuickBooks and various other accounting software packages were then designed for small business owners. In fact, we explain what accounting software is in a blog earlier this year.
We became a QuickBooks partner after assessing what they offer. It’s a well-known brand now in the UK thanks to the television ads. So, here is why we like QuickBooks so much:
1. Quickbooks manages income and sales
Running a small business means you often have to keep tabs on a lot of things. When it comes to creating invoices and keeping track of who owes you money, it can be difficult to stay on top.
But it’s simple with QuickBooks. You can review your Accounts Receivable Aging Report to see both current and past due invoices with a simple summary.
2. Keep track of expenses and bills
By automatically keeping track of your bills and expenses you can track transactions in just a few minutes. The software connects to your bank and credit card accounts so all your expenses can be downloaded and categorised.
It will also help you pay your bills when they are due. You can pay your bills on time by creating an Accounts Payable Report meaning you address any issues before they become problems.
3. Understand your business
As QuickBooks manages the inflow and outflow of cash, you are able to access several reports that can help you provide valuable insights into your business and its health financially.
In just a few clicks you can download the key financial report of your company:
- Profit and loss
- Balance sheet
Having such up to date reports can be a real benefit if you are looking for investments or loans and credit.
The profit and loss reports runs in a couple of minutes and shows you how profitable your business is.
Creating a balance sheet is quick and easy, which means you can show the assets, liability and equity in your business whenever you need to.
Cash flow is crucial to a business, especially in emergencies, such as the coronavirus pandemic. Having this information to hand is important, especially when the data is up-to-the-minute. Quickbooks links with other apps such as Float and Fluidly to create a cash flow forecast so you can see exactly what is happening in your business and can help you make important decisions.
Of course, these reports may need some interpretation, which is where you may need to talk to an accountant. But having them to hand so easily will help speed up processes, such as applying for loans.
4. Run your payroll
Making mistakes in payroll can lead to more than just financial problems. Employees may say they understand but it can cause unnecessary issues if their wages are wrong.
Quickbooks has its own payroll function that automatically calculates and runs payroll as often as you need it.
With payroll integrated with financial statements, you are always up to date for the latest payroll run.
5. Receipts and taxes simplified
If you have a carrier bag full of receipts then it will take you longer for us to work out your tax liability. And it is easy to lose important details!
QuickBooks works brilliantly in two ways when it comes to simplifying taxes and your life in general.
Firstly, you can use the app or use a 3rd party app such as Autoentry to take a picture of a receipt. It is then uploaded to your accounts in minutes. No more lost receipts!
And because it allows you to attach a receipt to the corresponding banking transaction, you won’t need to find time to manually pick your way through bits of paper.
Secondly, you can give us a user ID and password so we can access your QuickBooks data. That means it’s a lot easier for us to pull all the data we need together to prepare your tax returns.
Using the software means improved data, making your tax estimates accurate.
We not only help you when you first move to QuickBooks, but we often run workshops to help you get to grips with the software. Why not contact us and ask to be placed on the next workshop?