How Does QuickBooks Work for Small Business

If you are curious to know how does QuickBooks work then this will be the best platform for you. Here you can know how it works for small business, and make your boring accounting, interesting.

QuickBooks is available in different versions, and most of the users are using the QuickBooks Desktop, and the QuickBooks Online version to manage their finance. And each version has its own way to work. Let’s know, how QuickBooks works;  

How QuickBooks Desktop & Online Actually Works

Check the steps for both QuickBooks Desktop & QuickBooks Online

How to Start QuickBooks Desktop for the First Time

Follow the steps to set up the QuickBooks Desktop;

  • At first, you have to install QuickBooks Desktop on your system.
  • Next, you have to collect all the financial papers which are important to set up QuickBooks files.
  • For launching the program, you can click on the QuickBooks Desktop icon. then you have to create a company file via Easy step Interview Wizard.
  • After that, you can tap on “Employee center” to manage and create the employee accounts. To add employee details you have to select the “New Employee” option. And for adding the paychecks and other transactions tap on “Transaction”. Next, choose the “Enter Time” option.  
  • Later you can create and manage customer accounts. First, tap on the “customer center” and then to add a new source of income tap on “New customer and job”. Next, you have to add transactions like estimates, payments click on “New Transaction”.

 How to Start QuickBooks Online for the First Time

Follow the steps to set up the QuickBooks Online;

  • When you will login to QuickBooks Online, you can see a dashboard, where you will see an overview of your invoices, expenses, profit & loss, bank accounts, and sales.
  • In the dashboard, you can also find out the money in and money out transactions option where you can add your bank and credit card information.
  • Under expenses, you can get the information about how your money out and who you have to pay.
  • sales are all about getting paid. 
  • Then you can see Employees where you can manage the payroll of your employees.
  •  In reports, you can run many powerful reports that give you insights into your business.
  • you can also set up your GST invite your accountant to view your books and connect apps like receipt bank or t sheets to Quickbooks.
  • The settings menu provides you with help to set up your profile and preferences. 

How QuickBooks Works with the Features

There are some features below, that are needed to work the QuickBooks.

1. Charts of Accounts: 

  • Chart of accounts includes liability, assets, and tracking the details of every transaction that means it gives the whole financial information. It also shows the balance sheet reports that include liability assets and net worth at a particular point in time.
  • A list of accounts appears below the list menu.
  • In each accounts window, financial related information like account number, account balance, contact details is visible.

 2. Vendor, Custom, item lists:

  • There are three centers to manage your contacts and inventory in QuickBooks- the customer, vendor, and inventory center. The center of customer and vendor consists of a list of transactions.
  • The inventory center makes your inventory and non-inventory items modernize, efficient, and organize. Here inventory items are called those which are purchasing for reselling. And the non-inventory items are you can purchase but do not resell like Bill of material.
  • Every center gives an option to search, add, delete and edit the customer, vendors, and items.

3. Reports: 

  • To optimize your business smartly you have to create a report.
  • At first, you have to fill accurately your vendor, customer, and items details. 
  • Next, you have to customize the report and filter out the information by providing the specific customer, vendor, item, and transaction date.
  • For future access, you can add the report to your favorite report list.

4. Payroll:

  • The payroll service includes the processing and printing of the paychecks, pay liabilities, annual limits on particular payments.
  • QuickBooks provides an online payroll service for directly sending the deposit and you will get the payment slip in your email. 
  • From the employee center, you can edit information and add additional deductions and other specific details.
  • If you have a multi-user QuickBooks account setup, you have to assign payroll permission.

5. Billing and invoices:

  • There are two types of statements in QuickBooks is Billing and the other is invoices statements.
  • The billing statement is called when a customer was charged during a period of time. It is recorded in a special Register which is called customer Register. An invoice statement is called when a purchase happens with a single transaction.

Set Up QuickBooks to Work

 How to add customers to QuickBooks:
  • At first select sales then tap on Customer to see the customer list.
  • Select a customer name to see the transaction with them.
  • Select edit to update any contact information.
  • To add a customer select New customer, enter the customer name and what are other information you want to update. Tax info allows you to enter the tax registration number if the customer is exempt from sales tax. Underpayment and billing, you can assign custom terms for the customer. This tells your customer how many days they have to pay you when you send them an invoice. You can also select the language and attach an attachment. Then you can select save.
  • If you need to add several customers, you can import their info from a spreadsheet. Go to the customer list and select import customer. Next, attach the spreadsheet and select Next.
How to set up and manage new users on QuickBooks
  • At first, go to the gear button on your dashboard.
  • Below your company select the “manage user”
  • If you are Master Admin, you can access all areas of QuickBooks.
  • Use add a user to use persons to access the QuickBooks. Select Access rights to select particular persons who can access all areas and then enter the user details with their email address and then click save to confirm your choices.
How to set up products & services on QuickBooks
  • Select sale on your dashboard then click on product & services then click on new. Now choose the product and services.
  • Then you can see inventory, non-inventory, and services. Now go to the service and fill in the boxes which you want to provide.
  • You can see their income account which QuickBooks uses to categorize sales income for the services. select and once you are done you can save that.
How to use the project to track project income and cost in QuickBooks
  • Select project in the dashboard. then click on a new project. this page contain all of your current projects and provide a snapshot of their profitability income, cost, profit margin and even the number of hours worked are listed individual project.
  • Quickbooks note how much each employee’s time costs the company by the hourly rates set up here.
  • You can also enter the wages, tax, costs, associated with an employee. Quickbooks will calculate their total hourly costs. For more detail, you can just click the project.
  • If you want to know how much time each employee spends on a project just look at a time activity and if you want to know the number of project reports that comes from just select transactions.

Conclusion: 

In this article, we have seen how QuickBooks actually works and how we can automatically track and update the inventory. There are several versions of QuickBooks.The user can access this from anywhere, anytime with a good internet connection. We hope this article will help you to fulfill your doubt. Still, if you have my doubts then you can take help from our certified QuickBooks experts.

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