QuickBooks is a capable accounting software that helps businesses streamline their financial functions. The program generates valuable reports that aid in resource planning, like profit and loss and cash flow statements.
However, its functionality needs to extend further to replace professional accounting services. NerdWallet’s rankings are based on coverage options, customer experience, customizability, and cost.
Bookkeeping
QuickBooks is a software program that simplifies bookkeeping for small businesses by providing accounting features. It helps streamline the bookkeeping process and makes it easier for small businesses to keep track of their finances. It connects to bank and credit card accounts and automatically tracks bills and expenses for a complete financial picture at any time. It also allows for automatic reimbursement for business expense items and can generate reports for analyzing spending patterns.
It can help manage the accounts receivable process by automatically creating and sending invoices that include customer information and allowing customized invoice templates. It can also track employee timesheets and payments to contractors or freelancers.
The software has several versions, including one specifically designed for non-profit entities. Other versions cater to different industries and offer workflow processes and terminology unique to those businesses. For example, versions are available for manufacturers, wholesalers, service providers, contractors, and retailers. In addition, it offers a performance designed for professional accounting firms serving multiple small business clients. It has a client management portal and features video conferencing and messaging.
Financial Reporting
Business owners can better comprehend their company’s present performance by using quickbooks accounting to produce financial statements, including profit and loss reports, balance sheets, and words of cash flows. These reports help businesses predict future trends and make informed decisions that impact their profitability.
The software can even track employee time and expenses for a more accurate picture of your company’s costs. However, interpreting these reports and determining the most crucial information requires a human accountant’s expertise.
QuickBooks’s secure cloud-based storage and collaboration features allow accountants to share documents with clients, providing real-time access to the latest accounting data. It enables seamless communication and enhances the client-accountant relationship.
QuickBooks Online offers a more streamlined user interface than its desktop counterpart and includes more third-party integrations, automating and simplifying many accounting tasks. It includes multidimensional reporting, eliminating the need for a complicated chart of accounts by tracking detailed data at the transaction level rather than at the account level with tags.
Taxes
In addition to tracking income and expenses, QuickBooks simplifies sales tax management. It calculates taxes based on the rules and rates of the location of a sale, and it can generate reports on sales tax collected and owed to various authorities.
Another way that QuickBooks makes tax time more manageable is by allowing you to record your receipts directly in the program. You can then attach receipts to corresponding banking transactions, which makes it simple for your tax preparer to review at year-end.
QuickBooks Online offers four plans that accommodate businesses of all sizes, with the option to add QuickBooks payments (formerly Intuit Merchant Services) for additional payment processing. It is an excellent choice for ecommerce and on-the-go businesses as it is accessible from any device with an internet connection. It also provides an easy way to share files with your accountant, with the ability to send an invite via email from within the application.
Business Planning
QuickBooks online and the software’s desktop version are potent programs offering robust accounting features. But they differ in some ways that may influence your decision.
QuickBooks desktop offers more developed tools such as sales orders, lead management, and industry-specific editions. It also provides:
- More automation.
- More straightforward third-party integration procedures.
- A well-organized interface that gets easier to navigate with use.
However, it needs more mobility than QuickBooks online and has a steep learning curve.
While QuickBooks checks many boxes, the software becomes limited when handling mature business challenges. As a result, companies layer on separate systems or spreadsheets to handle revenue management, purchasing, inventory management, service delivery, and other tasks that require strong compliance management.
NetSuite eliminates these siloes with a complete financial management solution that streamlines processes, reduces the risk of errors and prevents costly missteps. It also helps enforce segregation of duties by restricting data and functionality to users with the appropriate permissions.
