A name rings into the ears when someone talks of managing the business and that name is QuickBooks. Since, QuickBooks has launched twenty years ago, like accounting software, the financial software is able to dominate the accounting market.
As a matter of fact, for our readers, QuickBooks holds the market place of above 80%. This 80% depicts the belief in the accounting software which QuickBooks provides to its users and businesses. Before diving into any accounting software for your business, have a tour of QuickBooks.
QuickBooks handles every business whether it is:
- Small size business
- Medium size business
- Large business
Even though, every business has its own challenges and intricacies. QuickBooks helps in relieving the “tension of numbers” for the business.
History of QuickBooks
Initially, two people developed QuickBooks under the leadership of Scott Cook and Tom Proulx, based in Mountain View, California, USA. QuickBooks has surely made its presence after Quicken got its successful presence in the financial management world.
In particular, the first version of QuickBooks was on DOS, majorly based on the Quicken software’s code. Surprisingly, many accounting pundits were not satisfied with early QuickBooks version, as they were happy with the Quicken software. Upon research by the company, the three reasons especially started to float up, which were:
- No proper security controls
- Not any audit trail
- Sidelined the old-school accounting standards
Present of QuickBooks
Although QuickBooks has gone through various transformations from its development day. From the year 2000 to 2017: in these 17 years, QuickBooks has surely come from DOS to a full-fledged operating system-oriented software application.
Inuit Inc has indeed researched well and polished QuickBooks for the operations. As a matter of fact, you can witness that QuickBooks’ journey initiated from a “double side entry” to “fully automated” accounting software – the journey has been successful for QuickBooks without any doubt.
Features of QuickBooks
QuickBooks is a small software, it is important to realize that the kind of finesse it holds to accurate record keeping of financials is tremendous. Comparatively, QuickBooks holds the best features any accounting software can offers.
- User-friendly: Inuit Inc, indeed, made QuickBooks an easy task to handle by the user. You can surely easily sail through QuickBooks surface. Generally speaking, QuickBooks comes under the hood of “user-friendly”.
- Plain sailing process: However, your QuickBooks is not bound to any rocket science to work. Yes, the software requires immense attention to learn it, but this is not the case with QuickBooks. You can surely easily work on it, without any hindrance.
- Data Migration: After all, the data you make in QuickBooks can be easily imported to your spreadsheet. This is relevant where one requires financial data on the spreadsheet.
- Business Projections: QuickBooks can generate future projections for a business for the purpose of business decisions. Moreover, the projection is made from the historical data stored by QuickBooks. Therefore, it solely depends on the user on which phenomena one wants to generate reports – sales, expenses, profits, etc.
- Invoices Generation: Although, the key feature of QuickBooks that it holds its title for best accounting software is for invoice generation. Additionally, you can easily generate invoices instantly using QuickBooks.
- Bank Transactions: Equally, a number of transactions take place in a business environment, which is cumbersome to remember or note it down. Most importantly, this cumbersome is deleted by QuickBooks, as all the transactions related to banks are done by QuickBooks. Every Bank Transactions is noted whether related to salary, wages, commissions, profits, expenses etc.
- Tax Calculations: For a business, it is very important to calculate accurate taxes and pay it on the time. If one remains to refrain from it, then, it will be called to a federal penalty. What does QuickBooks do? It submits the calculated taxes for business on time to the federal and law authorities.
Why business use QuickBooks software?
As gradually we are discussing “what is QuickBooks?”, now we can discuss the usage of the software in the below points:
Sales and Income Management
In general, you can easily manage sales and income in QuickBooks. Basically, this work is done by generating invoices to see and analyze sales by customer. You will able to manage both of your accounts – accounts receivable and accounts payable. As both of the aforementioned accounts require income in and out of the business.
Eye on Bills and Expenses
QuickBooks surely manage to keep an eye on business expenses and bills with you. It won’t let slip any transaction out of its eyes, due to its finesse. QuickBooks connects your bank with your credit card and starts keeping a check, as all the transactions are downloaded and categorized.
QuickBooks also lends its helping hand when your bill is due for a period. For an instance, you can pay bills by creating an Accounts Payable account in QuickBooks. This account will generate reports which will tell you about your paid bills and any past due bills.
Financial Reports Generation for Business
The number of transactions that takes place in a day in business. For that, a number of reports should be generated so that every data is recorded correctly. With QuickBooks, you can access a number of daily, monthly, quarterly or yearly reports; all these reports are generated on real-time basis.
Flow of cash whether it is – inflow or outflow – can be easily managed. This phenomenon provides an insight to the business where the business is going? Whether the business is in profit or loss? How are their sales? Etc.
These reports are beneficial for business stakeholders. QuickBooks mainly print 3 pertinent business reports:
- Profit and Loss Report: The profit and loss report depict you how profitable to you is your business. It is done by summarizing your income minus your expenses. It represents you your net income or loss for a specific time period.
- Balance Sheet Report: The purpose of balance sheet report is to highlight the Assets, Liabilities, and Equity for a business at a particular point in time.
- Statement of Cash Flows: This report highlights all of the business activities (cash inflow and outflow) which are related to the operating, investing, and financing of the business.
Suppose, one mistake in salary calculations, made manually, and it will leave all of your employees unhappy. QuickBooks Payroll sees that all of the employees are paid according to the set parameter. The advantages of Payroll are:
- You can directly pay to your employees by direct deposit
- All the taxes are calculated automatically as per precision of federal and state
- QuickBooks can fill payroll tax for business
- E-pay is made to pay directly from QuickBooks
With QuickBooks, the inventory management is done on the surface of real time basis. You will get to know how much inventory is stored in your godowns or business premises. All inventory will be managed at a click of a button.
Easy Tax Process
How life become easy when your taxes are paid automatically. Basically, QuickBooks does this for you. It relieves you from the tax burden, by paying the tax on dedicate date and according to the federal and state laws. You can put all the financial data on the excel sheets and analyze.
Make Online Payments
If you want to flourish cash into your business, then, QuickBooks allows you, to offer your customers to pay or deposit online their invoices. An option named as Inuit GoPayment is there for to collect online deposits from your customers. Make this available to your customers, and you see, gradually, uprising of cash into the business system. Allow your customers to make them payment by any debit or credit cards.
It is better to keep all of your receipt data at one place. They are required during tax season; during tax filing and submission. All of the business-related receipts are stored by QuickBooks. You can upload and download the receipts from the QuickBooks Mobile APP for free, anytime, anywhere.
Variants of QuickBooks
The blog is indeed progressing in a soft flow; till now you have got the answer to the question – what is QuickBooks?
Every business is bounded by different requirements. Basically, Inuit Inc has developed various variants of QuickBooks, as per the needs and wants of the business.