QuickBooks Accounting Software: Everything you need to know to decide

By |2018-04-01T06:21:10+00:00April 1st, 2018|

Whether you are an accountant or a business owner, you must know the impact of time on the business and its finances. Time is required for your business to grow. However, the accounting part of your business management is what will drain more of your time than most. From recording receipts and bookkeeping to setting financial targets, are all task that is imperative to the success and stability of your business.

Getting an accounting software for your small business allows you to delegate most of these time-consuming tasks and focus on growing and having a good work-life balance.

Before you get frightened with the technology behind all these accounting software, let me tell you that they are all here to take away your worry by making accounting easy with the help of technology. That’s why they are programmed to feature a user-friendly interface with clear setup instructions to be understood by anyone.

There are quite a dozen of accounting software in the market. But in this article, I am going to tackle one of the best accounting software among them all: QuickBooks accounting software.

What is QuickBooks accounting software?

QuickBooks accounting software is a software package developed by Intuit to provide on-premise (Desktop) and cloud base (online) accounting solutions. In order to manage your customers, clients, vendors, finances, and inventory, QuickBooks accounting software feature tools that makes all these tasks very simple.

A Brief History of QuickBooks

If you are considering to use QuickBooks, you might like to know the history, like when it was founded and its improvements.

Well, QuickBooks was developed by a company known as Intuit which was founded in 1983.

After Quicken, a personal accounting package, QuickBooks was the next software developed by Intuit to offer small business owners the flexibility of an easy-to-use accounting software package with the needed structure and compliance to manage a profitable business. QuickBooks quickly become popular among business owners who had no accounting background as it was easy to work with without much experience in accounting.

Intuit ensured the improvement of QuickBooks.  In later releases, the software was packed with tools such as double entries, audit trails, and other accounting-industry compliant items.  Intuit evolved with time and developed packages that were focused on the needs of specific industries, including retail, manufacturing, contracting, and not-for-profit.

Why should you Choose QuickBooks for your business?

In my opinion, the following key factors should be the most significant grounds for choosing QuickBooks accounting solution as a small business owner.

  • First of all, let me assure you that QuickBooks is very flexible as far as small businesses are concern. To fit your business needs, you can customize the software to work exactly the way you want it to. QuickBooks accounting software is specifically designed to be flexible and adaptable to a wide range of small businesses, irrespective of user knowledge and experience in accounting. What makes it more appealing and widely preferred is due to the recently added accounting packages for specialized purposes like contractors, retailers, health care professionals, and non-profit organizations.
  • QuickBooks is very easy to use when properly customized and set up. The software will make things easy for you and your business by recording, organizing and reporting your financial information in accordance with established accounting standards and methods. The software can automatically handle simple bookkeeping to save you massive time on paperwork making it easier to run your business. Reports can be easily generated with all the information you need, so you know where your business stands, whether your business is healthy or not.
  • QuickBooks has been around long enough and had enough time and opportunity to be widely tested and reformed to make it stable and reliable. All the features and functionality of QuickBooks as compared to the cost makes it a very good software with better value for small businesses. I will say you’ll save a lot of money because this software is so affordable. You can use it to run a multimillion dollars business for a few hundred bucks.
  • QuickBooks is fully compatible with a lot of vertical market applications which enable industry-specific software to export and import directly from/into QuickBooks, and more of these applications are being integrated all the time. Examples include Point of Sale, Construction, Medical etc. Even you can also share data with some popular programs like Microsoft Excel, Outlook, word and ACT.
  • No more waiting for a check in the mail, payments are made easy with QuickBooks online payments. You can simply email invoices or statements to your customers with QuickBooks Online Billing, and your customers can easily sort you out using credit cards or bank account transfer.
  • Without delay, you pay bills and bank online when you set up your current bank account in QuickBooks. No more sticking stamps, licking envelopes or printing paper checks, just write checks using QuickBooks as you normally would, and your participating bank will do the rest. With online banking, you can also download your monthly statement from your participating bank directly into QuickBooks for easy reconciliation.
  • Finally, you can rest assured that QuickBooks accounting software is here to stay as it is reliable, stable and proven product for your business. Hundreds of thousands of successful small businesses worldwide have chosen QuickBooks as their accounting software solution. You can’t possibly go wrong with a software program with such a massive audience or customers.

Does this mean that QuickBooks is the solution for every business? Definitely not. Even with all these cool features in consideration, there are situations where QuickBooks is not the right fit for certain type of businesses and I am going to reveal to you this kind of businesses.

Why you should not choose QuickBooks for your business

Even though QuickBooks is recommended for small businesses, it may not be the answer for some. When you run a business (or a nonprofit), you keep track of company finances for two main reasons: reason one is to keep your business running flawlessly. And reason two is to generate the reports as required by the SEC, IRS, and anyone else you may have to answer to.

QuickBooks helps you perform basic financial tasks, track financial results, and manage your business with ease and convenience. However, before you read any further, here are a few things you shouldn’t try to do with QuickBooks:

  • QuickBooks is not for you if you work with more than 14,500 unique inventory items or 14,500 contact names. QuickBooks Premier and Pro company files can only hold up to 14,500 inventory items and a combined total of up to 14,500 contact names including employee, customer, vendor, and other Names List. However, in the QuickBooks Enterprise Solutions edition of the program, the number of contact names is virtually unlimited.
  • QuickBooks is not here for you to track your personal finances. Even if you’re a company of one, keeping your personal finances separate from your business finances is a good move, particularly when it comes to tax reporting. In addition to opening a separate checking account for your business, you should also track your personal finances somewhere else (like in Quicken). If you do decide to use QuickBooks, at least create a separate company file for your personal financial info.
  • QuickBooks is not the solution if you plan to track the performance of stocks and bonds. QuickBooks isn’t meant to keep track of the capital gains and dividends you earn from investments such as stocks and bonds. Of course, companies invest in things like equipment and office buildings, and you should track investments such as these in QuickBooks. However, in QuickBooks, they show up as assets of your company.
  • Finally, QuickBooks is not to manage specialized details about customer relationships. Lots of information goes into keeping customers happy. With QuickBooks, you can stay on top of customer activities with features like to-dos, notes, reminders, and memorized transactions. You can also keep track of leads before they turn into customers. But if you need to track details for thousands of members or customers, items sold on consignment, project progress, or tasks related to managing projects, a customer-management program or a program like Microsoft Excel or Access might be a better solution.

Now, what next? If you feel like asking anything about this software, please feel free to contact me.

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