Latest Facts and News
- QuickBooks Online now has over 4.5 million subscribers worldwide.
- Intuit recently introduced AI-powered features to QuickBooks, including smart categorization and anomaly detection.
- QuickBooks has expanded its integration capabilities, now connecting with over 650 third-party apps.
The management of finances in any business takes so much time and effort, which could have been well used in growth and strategizing for the future. Small and medium-sized enterprises end up losing track of events like bookkeeping, payroll deduction, and tax compliance while struggling to keep their business afloat.
Instead of that approach, QuickBooks, also known as Intuit accounting software, has taught businesses new ways to get around a headache. With the structure in approach to the financial processes, it will be impossible to leave anything behind. Everything is available in one place to scrutinize the most critical area of the business and keep focus.
In this blog post, you will learn what is QuickBooks software used for, enabling you to stay competitive in the ever-increasing competition.
Read More → How Do You Master QuickBooks Online Tasks?
Core Functions of QuickBooks Software
The core functions of QuickBooks are the backbone of effective medium to small business financial management. Let’s get to know what is QuickBooks software used for in a very simple manner:
1. Invoicing and Sales Management
With QuickBooks, businesses can make their online invoicing system and sales operations easier. Businesses can create very unique invoices that include their logos and messages that can be tailored to the brand. Besides, the platform allows businesses to trace the statuses of such invoices, send reminders to customers, and collect payments online in clicks.
- Creating and Sending Invoices: Go to the “Sales” tab and select “Invoices” to start. Type customer details and products or services and payment terms. QuickBooks saves time and inconsistency with pre-made templates.
- Tracking Sales and Payments: QuickBooks shows timely status reporting from invoice payments to those that are pending or overdue. You can also add in your reminders with regard to customers’ payments, which will help reduce the incidence of late payments and manage the flow of cash.
2. Expense Tracking
Keeping automated expense tracking is important for any business, and QuickBooks makes it easy to record and organize them. This ensures you always have a clear picture of your business’s finances.
- Recording Expenses: With the help of QuickBooks, all your bank accounts and credit card data are transferred to your software straight from your bank. Time is saved, manual typing is avoided, and the possibility of making some typing errors is also eliminated. You can also add receipts to the expenses for better record keeping and to meet the set requirements.
- Categorizing and Analyzing Expenses: Expenses can be sorted into categories using your chart of accounts. This helps create detailed reports, showing where you’re spending the most and where you can save. QuickBooks also generates expense reports to give insights into spending patterns and budgets.
3. Payroll Management
QuickBooks simplifies paying employees and handling payroll taxes, ensuring everything is done correctly and on time.
- Setting Up Payroll: QuickBooks guides you step by step to set up payroll. Enter details like employee names, pay rates, and tax information. The system automatically calculates payroll taxes, keeping you compliant with federal, state, and local laws.
- Processing Payroll: Running payroll is quick and easy. QuickBooks calculates wages, deductions, and net pay, then sends payments through direct deposit or checks. Employees can access pay stubs and tax forms online, saving time on administrative tasks.
4. Financial Reporting
QuickBooks provides accurate financial reports that help businesses make better decisions.
- Generating Reports: You can create reports like profit and loss statements, balance sheets, and cash flow summaries. QuickBooks lets you customize these reports to show specific dates, accounts, or comparisons.
- Interpreting Reports: These reports help you understand your business’s financial health, spot trends, and plan for the future. QuickBooks also uses charts and graphs to make complex data easy to understand.
5. Inventory Management
QuickBooks helps businesses keep track of inventory, manage orders, and ensure they always have the right amount of stock.
- Tracking Inventory: QuickBooks updates inventory levels in real-time whenever you make a sale or purchase. This prevents running out of stock or overstocking products, keeping everything balanced.
- Managing Orders: You can create purchase orders, track their progress, and manage vendor information in QuickBooks. The system alerts you when inventory is low, so you can reorder on time.
- Analyzing Inventory Data: QuickBooks provides inventory reports showing stock movement, value, and profitability. These insights help you make better decisions about products and supply.
Now that you have a good idea of what is QuickBooks software used for, let’s move on to its key features.
Know More About → Why Don’t My QuickBooks Balance and Bank Balance Match?
Key Features of QuickBooks
Before you can fully appreciate the many features that lend this software its uniqueness, you must first understand what is QuickBooks software used for, as discussed in the above section already.
An understanding of this then creates the foundation for exploring how its very features simplify and address the necessary financial challenges that small and medium businesses face. Let’s get to know them:
1. Role-Based Access
QuickBooks Online Accountant lets you control who on your team can access specific client data. You can assign roles for tasks like managing payroll, invoices, and bills. This ensures that only authorized team members can view, edit, or delete sensitive information. You can also set permissions for financial reports, making it easier to keep everything secure.
2. Batch Import for Journal Entries
Adding journal entries one at a time is time-consuming. QuickBooks lets you upload multiple entries at once using a CSV file, saving time and reducing errors.
3. Chart of Accounts Templates
Save time when setting up new clients by using pre-made templates for different industries. You can customize and reuse these templates, making it faster to set up charts of accounts for your clients.
4. Revenue Sharing for Payments
When your clients use QuickBooks Payments, you can earn a share of the revenue from their transactions. You can set up clients directly in QuickBooks Online Accountant, without needing extra steps like sharing links. This program lets you earn up to 20% of the net revenue for five years.
5. Spreadsheet Sync
With Spreadsheet Sync, you can connect QuickBooks Online Advanced data to Excel or Google Sheets. You can create custom charts, manage large amounts of data, and sync changes back to QuickBooks. It also allows real-time collaboration using Google Sheets, making reporting more flexible.
6. Improved Payroll Features
QuickBooks Payroll now offers enhanced flexibility for managing employee payments and payroll processes. Businesses can fix payroll errors even after processing, calculate pay based on piecework rates instead of just hourly or salaried wages, and allocate payroll costs into multiple categories for better profit and loss insights. Additionally, employee onboarding is made easier with the option to digitize I-9 forms directly within QuickBooks Workforce.
7. Flexible Billing Options
QuickBooks Online Accountant lets you decide who pays for each client’s subscription. You can mix and match billing options for QuickBooks products. This makes it easier to recommend services like Online Payroll without worrying about managing costs.
8. Revenue Recognition Tools
QuickBooks Online Advanced enhances cloud-based bookkeeping by simplifying revenue tracking, eliminating the need for manual calculations or third-party apps. Businesses can edit revenue schedules after invoices are saved, adjust service dates and pricing for specific line items, and streamline revenue management for project-based operations.
9. Fixed Asset Accounting
Tracking depreciation for high-value assets can be tricky. QuickBooks Online Advanced lets you add assets and schedule their depreciation automatically, saving time and ensuring the best accounting accuracy.
10. Add a Second Admin in the Ledger
QuickBooks Ledger now allows for a second admin. This makes it easy to update the primary admin or give your clients access to manage bank feeds themselves without extra requests.
Also Read → How to Use QuickBooks Online for Small Business?
Final Thoughts!
Before we get off this blog post, let me remind you that selecting the right financial tools is not just about making the work easier; it’s about providing your business with the tools for growth efficiently and sustainably.
Apart from leveraging what is QuickBooks software used for, one must remain as equally energetic and purposeful in how you maintain all of your data when you frequently review your business’s finances and other tools that complement your overall goals and objectives.
As a company that is focused on leveraging what is QuickBooks software used for, the Focus CPA team knows about all the capabilities that can be used in managing businesses. From basic configurations to every sophisticated monetary plan, we make sure that the tool is not only operated but also leveraged to help your business perform better.
