How To Use QuickBooks
A practical analysis of how accountants, bookkeeping professionals, and business owners use QuickBooks.
QuickBooks is a powerful tool that can help businesses become more efficient and successful. In this practical analysis of how accountants, bookkeeping professionals, and business owners use QuickBooks, you can see how experienced users depend on QuickBooks and what a new user can expect when learning how to use QuickBooks effectively.
While many users seek out professional QuickBooks Training programs designed by professional instructors or attend QuickBooks Courses to save time, some users successfully learn how to use QuickBooks with free tutorials online.
To get started, a basic understanding of accounting and bookkeeping concepts is crucial to using QuickBooks effectively.
Some users who have not studied accounting have benefited from computer based accounting courses or study with accounting classes at a local university or community college. Other users sometimes find that free bookkeeping classes or online bookkeeping courses are adequate.
Moving forward to using the QuickBooks software specifically, the first step a professional user takes is to develop and create a company profile.
1. User creates a company profile in QuickBooks.
A company profile is the blank canvas starting point when using QuickBooks and it enables a user to manipulate the chart of accounts.
2. The user reviews how to set up and maintain a QuickBooks Chart of Accounts.
The chart of accounts is where you can make all of your changes and monitor your finances from an accounting point of view.
Next, the software user will need to know how to create and modify customer lists.
3. The professional user now focuses on how QuickBooks manages customer lists.
The customer list helps a business keep track, on an individual level, exactly how much is coming in and from whom. It can sometimes be important to management to recognize who their more loyal clients are and who may be worth a little extra attention.
When the user has clientele organized, it is often time to work with internal auditing.
4. The professional decides how they wish to manage employee information with QuickBooks.
It is essential that payroll costs are organized so unnecessary activity expenses are kept to a minimum.
5. The user experiments with maintaining vendor information in QuickBooks.
Since many businesses have vendor relationships, software users often use QuickBooks to manage any vendors they are associated with and their business activities. Vendors are the supply part of the formula and without purchasing their products to in turn sell to customers, a business cannot continue.
6. The user then researches applicable tax rates and chooses how to manage tax rates in the QuickBooks software.
Different states have different rated sales taxes. In areas of Ohio, it is six percent. In Pennsylvania, one county has seven percent. If a business operates on a large scale that crosses borders, it may be necessary to use QuickBooks to take various tax rates into consideration. As in all cases outlined here or otherwise, please consult your accounting and/or legal advisors if you have any questions.
7. User familiarizes themselves with QuickBooks tasks like invoicing, receiving payments, and paying bills.
Exploring in QuickBooks can be one's best asset in understanding just how vital it can be to their company. Setting up invoices, organizing the receipt of payments, and paying your bills can all be tracked using QuickBooks. These essential functions of your business are what keep the money flowing and if something gets crossed between transactions then you might find challenges that are limiting the success of your business.
8. Introduces themselves to how QuickBooks simplifies financial statements.
As easy as it can be to learn QuickBooks, one still needs to invest the time to introduce themselves to financial statements. These statements can be generated by QuickBooks, but if you don't take the time to sit, read, and understand the statements then you aren't doing everything you can to be successful.
9. The user invests time in setting up and reviewing their Chart of Accounts configuration in QuickBooks.
The same can be said for the aforementioned chart of accounts. This basic vital portion of using QuickBooks can become the very foundation of an entire business. You may soon realize that without an accurate and up to date chart of accounts that your company could become unstable or miss opportunities.
10. The user explores how they wish to use QuickBooks for billing customers.
Obviously, a business needs to get paid. That's the purpose of business. The billing option for QuickBooks is where you really start seeing dividends - both figuratively and literally. Explore the billing options you'll have available to see how each customer would benefit from how you bill them.
11. User reviews how to receive payments and record deposits in QuickBooks.
Once money comes in and it is accurately recorded, you will then need to deposit it to an account. QuickBooks can do more than just watch the money come and go; it can actually help you better understand and monitor what happens with the money once it goes through your hands and becomes actual profit while sitting in a bank account.
12. User quickly enters and pays bills in QuickBooks.
This extension of the program can then be used to pay bills. After all, running a business doesn't just happen. After your employees are paid, check need to be written to ensure the electricity stays on. Basically, now that you are tracking your profit, itís time to start funneling it back into the business to keep the doors open.
13. The user explores how QuickBooks helps them write and void business checks.
Letís imagine a scenario where you've now written one of those checks and sent it on its way. Oops! You just realize that you've made a mistake and you need to void that check before it gets cashed. QuickBooks can help you track these changes and help you ensure that more mistakes aren't made later.
14. The user verifies that they are safely backing up their QuickBooks data.
Once users have finished going over their accounts with a fine tooth comb, it is essential to back up QuickBooks data. The program can do a lot of the work for you, but if the entire system crashes for whatever reason, and it does happen, then all of that hard work will be lost forever. Find a way to safely and securely back up your QuickBooks files so that you have access to them when you need it the most.
15. User interprets and reviews QuickBooks reports.
QuickBooks can spit out reports based on virtually anything that you've inputted into the software. These reports can help you see where you need to improve your business by making the tough decisions. Perhaps too much of your budget is being eaten up by one particular vender, or maybe one employee is getting paid more than they are worth. Whatever the red flag, QuickBooks can help you find it.
16. User experiments with how they can analyze trends with QuickBooks.
If your business falls into a specific market, and it more than likely does given the way our economy thrives, then you'll want to use the information that QuickBooks gives you to analyze the trends of your market. See whatís selling and what isn't. See when the peak purchasing times are. You will instantly pick up tips and tricks just from looking over what you've already done.
17. The user consults with their accountant.
QuickBooks is a great tool, but for as powerful as a piece of software it can be, eventually you might want to take your QuickBooks reports and data to an accountant. At the very least, it wouldn't hurt to occasionally get some advice on how to read and interpret the data that QuickBooks supplies you with.
At first, a user may feel a little overwhelmed but after they get a firm grasp on the basics of how to use quickbooks, they are confident in short order.
If you are someone who would like to learn how to use QuickBooks, we recommend a self-paced QuickBooks Training course. As you study with your QuickBooks Classes or Courses, like countless other students you will enjoy software training and earn Continuing Professional Education (CPE) Credit.