If you’re a business owner, you’ve no doubt heard about Quickbooks. As a bookkeeping company, we know Quickbooks like the backs of our hands. But not everyone knows what Quickbooks is or how it can be useful.
Something new businesses owners learn as they start is all these little things that seem like common knowledge to everyone, but might not be to you. Quickbooks is one of those things. Someone who is fine with a physical book or an excel sheet might not see much value in Quickbooks. If this is you, that’s ok, but we’re just going to share some information for you that is worth considering.
First, I want to say that there are alternatives to Quickbooks, and if you find another app that does all of these things, then go ahead and use it! We’re just using Quickbooks as a reference because it is the standard.
So here are 3 features of Quickbooks that can help your business. Our quick guide to Quickbooks.
Keep Track of Daily Expenses
We have written before about how bookkeeping works, so we’re not going to go into too much detail there. But we are going to explain how Quickbooks can help.
The biggest alternative to using Quickbooks or another application like it is having an excel sheet or a physical book with your accounts payable and accounts receivable. Quickbooks helps you do that. But Quickbooks can help you be much more meticulous.
One great advantage to having quickbooks is that you can connect it to your bank account and it will track all of your expenses. You still have to categorize the expenses, but having all the bank expenses in front of you allows you to double check your books and make sure you have every transaction accounted for.
Another very common application for Quickbooks is the ability to invoice customers or clients. This is a major selling point for many business owners. It’s very convenient to have your invoice in the same place where you track your expenses.
By invoicing all of your customers, you already have a way to manage and track your income.
Finally, you can generate reports so that you can see the financial health of your business. Quickbooks automatically generates these reports. Here are three reports you get access to with Quickbooks:
- Profit and Loss Report
- Balance Sheet Report
- Statement of Cash Flows
Your Profit and Loss Report is very important for understanding the financial health of your company. It takes your income minus your expenses. Your Balance Sheet Report show your assets, liability, and equity. And your Statement of Cash Flows gives you an overview of the cash flowing into your business.
Quickbooks can be very helpful for any business. No matter what you need all of these services. We use Quickbooks here, but there might be other applications that might offer the same services for less. Regardless, Quickbooks is the standard for small businesses, and what they do is crucial for businesses to succeed.