What Is QuickBooks & What Does It Do?

1. What Is QuickBooks & What Does It Do?

2. QuickBooks is the most popular small business accounting software companies use to manage income and expenses and keep track of the financial health of their business. You can use it to bill customers, pay bills, generate reports, and prepare taxes. The QuickBooks product line includes several solutions that work great for anyone from a freelancer to a midsize business. • QuickBooks offers several alternatives, but I recommend QuickBooks Online for most new businesses. You can try QuickBooks Online for free with a 30-day trial that does not require a credit card.

3. 9 Ways Small Businesses Use QuickBooks • Small business owners often use QuickBooks to manage their invoices, pay their bills, and keep track of their cash flows. They also use it to generate month-end and year-end financial reports, as well as to prepare for quarterly or annual business taxes. Some business owners manage QuickBooks themselves, while others prefer to use an internal or external accountant.

4. 1. Create and track invoices •  You can easily create invoices and print or email them to customers. QuickBooks will automatically record revenue and keep track of how much each customer owes you. You can view the amount of your outstanding invoices, known as your Accounts Receivable (A / R), as well as how many days they are past due by running an Accounts Receivable Aging Report.

5. 2. Keep track of bills and expenses • QuickBooks automatically tracks your bills and expenses by connecting your bank and credit card accounts to QuickBooks so all of your expenses are downloaded and categorized. If you need to manually track a check or cash transaction, you can post it directly to QuickBooks in just a few minutes. • You can also enter invoices into free QuickBooks alternativeswhen you receive them so QuickBooks can help you keep track of upcoming payments or accounts payable. You can make sure you pay your bills on time by creating an Accounts Payable (A / P) report. This report will provide you with the details of your current and past due invoices.

6. 3. Print financial statements for your company • By managing all of your cash inflow and outflow activities in QuickBooks, you can print financial statements that can provide useful information on how your business is performing. • Lenders often require financial statements when applying for a small business loan or line of credit  • You can produce these top three financial statements in QuickBooks in just a few clicks: • Profit and Loss Report • Balance report • Statement of cash flows  • Profit and Loss Report • The profit and loss report will show you how profitable your business is by summarizing your income minus your expenses. • Balance report • The Balance Sheet Report shows what your company owns (assets), owes (liabilities), and its net worth (equity) at any given time: • Statement of cash flows • The cash flow statement in QuickBooks will show you all the activities that affect the operating, investing and financing cash inflows and outflows of your business.

7. 4. Track employee hours and run payroll • Payroll is one area you don't want to skimp on by trying to do it manually. Mistakes made when calculating paychecks can result in heavy penalties and disgruntled employees. QuickBooks has its own payroll feature that can automatically calculate and run payroll as often as you need. • Xero Alternatives can keep track of your employees' hours. The hours logged then flow to both your clients' invoices (if billable) and your payroll. This ensures that every hour you pay your employees is accounted for when billing a customer. • The best part about using QuickBooks Payroll is that it is integrated with QuickBooks so your financial statements are always up to date as of the last payroll run. The purchase of a QuickBooks payroll subscription is required to run payroll, but you have multiple levels of service to choose from to meet your needs. • Running your payroll through QuickBooks will allow you to: • Pay employees by check or direct deposit • Calculate federal and state payroll taxes automatically • Have QuickBooks fill out payroll tax forms for you • Pay your payroll taxes electronically directly from QuickBooks

8. 5. Inventory tracking • QuickBooks can track the quantity and cost of your inventory. As you sell inventory, QuickBooks will automatically allocate a portion of your inventory to cost of goods sold (COGS), which is an expense account that reduces your income. This allocation is a requirement for calculating taxable income and very cumbersome to carry out by hand. QuickBooks can also automatically remind you to order inventory when quantities are low.

9. 6. Simplify taxes • Perhaps the most important thing QuickBooks can do for your small business is simplify tax time. By far the biggest headache when preparing a tax return is collecting your income and expenses. If you use QuickBooks throughout the year, all you need to do at tax time is print your financial statements. Better yet, with QuickBooks Online you can invite your tax preparer to access your account directly so they can review your numbers and print whatever information they need to prepare your return.

10. 7. Accept payments online • One of the best ways to improve your cash flow is to offer customers the option to pay their bills online. You can add QuickBooks Payments (formerly known as Intuit Merchant Services) so that customers can pay online directly from their emailed invoice. QuickBooks Payments is similar to other business services. However, because it is fully integrated into QuickBooks, the sale, credit card fee, and cash deposit are automatically recorded as they occur.

11. 8. Scan receipts • Another key to simplifying tax season is being able to organize your receipts in QuickBooks. All QuickBooks Online subscribers can download the QuickBooks app on their mobile device for free, snap a photo of a receipt, and upload it to QuickBooks Online in just a few minutes. • No more lost receipts or manual comparison of receipts with downloaded bank transactions. QuickBooks allows you to attach a receipt to the corresponding bank transaction. You can upload an unlimited number of receipts to QuickBooks Online, which are stored in the cloud along with your data.

12. 9. Mileage tracking • Many freelancers and employee / owners use their personal vehicles for business purposes. This provides a generous tax deduction of 57.5 cents per mile for 2020. However, to receive the deduction, you must keep track of the date, miles, and purpose of your trip. • QuickBooks Online makes this incredibly easy. Your mobile app will use your phone's GPS to automatically detect whenever you are in a moving vehicle. Then you can review your trips and add a note with the purpose of each business trip.

13. Bottom line • QuickBooks is the most popular small business accounting software. It comes in a variety of editions, both online and installed on your desktop. Free Xero Alternatives includes features that allow you to keep track of your income and expenses, pay your employees, keep track of your inventory, and simplify your taxes.

14. About Us • QNE Software Philippines, Inc. is a passionate organization that provides Accounting System and Payroll System. QNE business software is highly-adaptable to the requirements and future elevation of the businesses in the Philippines. • Website - https://www.qne.com.ph/