Cloud-based accounting is a method of delivering accounting services, and with the advent of accounting software, the accounting industry has undergone a significant transformation. QuickBooks, which is widely utilized across the globe, has emerged as one of the most popular accounting software options.
What is QuickBooks and How Does it Work?
QuickBooks, developed by Intuit, is accounting software designed for small businesses that facilitates the management of income and expenses, and provides insights into their financial position. It offers a range of features, including invoicing customers, bill payments, tax preparation, and financial reporting. QuickBooks is available in various specific solution products, such as QuickBooks Online, QuickBooks Desktop, QuickBooks Payroll, and QuickBooks Time. QuickBooks Online is the most popular and widely recommended option for businesses.
Users can try QuickBooks for free during a 30-day trial period and later opt for monthly or yearly subscriptions. QuickBooks Cloud Accounting provides numerous functionalities to simplify the accounting process, but it does not guarantee time-saving unless one is proficient in utilizing all its functions and staying organized. In case of difficulties, professional service providers can be consulted for assistance, such as our team.
FIVE Basic Functions of QuickBooks
- QuickBooks has several core functions, two of which are Vendors and Customers. The Vendors function, located in the top left corner, enables the user to enter bills and initiate online payments using the pay bill function. It also provides access to the Vendor center, which allows users to create purchase orders, record inventory, and schedule supplier payments. This function helps to automate Accounts Payable tasks and keep track of upcoming payments.
2. On the other hand, the Customers function manages the Accounts Receivables process for the business. It enables the user to create and print invoices and send them via email to customers. The number of outstanding invoices can be tracked, and an AR aging report can be generated to monitor the number of days an invoice is overdue. Users have the option to create a new invoice from scratch or customize an existing invoice template.
3. QuickBooks offers several other functions, such as Employees and Company. The Employees function allows users to maintain employee timesheets, which helps ensure timely payment to employees. It can automatically calculate and run payroll when needed, and the hours entered by employees flow to invoices and payroll modules.
4. The Company function enables users to create and update the Chart of Accounts, which is essential for keeping finances organized and staying on top of them during closing month. Items and Services are also important for customers, as they contain all the necessary information and facilitate pre-sets for creating bills.
5. Finally, QuickBooks also includes a Banking function that enables users to pay bills to customers. Users can print bills using the print check function and track banking activity by checking the register. With just a few clicks, bills can be paid online via bank transfer or check, and multiple bills can be paid simultaneously. Additionally, payments to suppliers can be made via credit card within QuickBooks. QuickBooks Software Online Bill Pay is integrated with QBs Essential, Plus, and Advanced for added convenience.
