An Introduction To Quickbooks For Small Business Owners
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Thinking about using quickbooks for your business accounting needs? Here is a simple introduction to read first.
Transcript of An Introduction To Quickbooks For Small Business Owners
- Introduction To Quickbooks A Simple For Small Business
- Thats why most business owners use some form of accounting software. Recently we reviewed the top 4 providers of small business accounting software and chose Quickbooks as our top choice. Keeping track of your businesss finances by hand can get overwhelming fast.
- Quickbooks is accounting software for business owners who want to keep their finances organized and accurate, but dont necessarily have a lot of accounting knowledge. What is Quickbooks?
- Quickbooks also offers add on services that allow you to handle things such as payroll, inventory tracking, and credit card processing. In addition to basic accounting, invoicing, and reporting capabilities.
- At its most basic level, quickbooks allows you to keep track of the money coming in and out of your business, how much you owe others, and how much others owe you. What Are Small Business Owners Using Quickbooks For?
- At its most basic level, quickbooks allows you to keep track of the money coming in and out of your business, how much you owe others, and how much others owe you. What Are Small Business Owners Using Quickbooks For? Click Here to Get a Free Trial of Quickbooks
- If you are currently keeping your books by hand, then you can imagine how nice it would be to have everything organized into simple reports like this:
- Create Invoices and Keep Track of the Money You Are Owed You can easily create and send customized invoices to your customers using Quickbooks. This makes keeping track of the money owed by your customers (also known as your accounts receivable) a breeze.
- When you use Quickbooks invoicing program, you get a report that lists everything you need to know about your outstanding invoices. All of your unpaid charges are arranged neatly by customer and job. By double clicking any given invoice, you get a more detailed summary of the accounts activity.
- In addition to tracking the money they are owed (accounts receivable), many larger businesses also use Quickbooks to keep track of the money they owe others (accounts payable).
- Make Tax Season a Breeze with Quickbooks Tax Reports If you use an accountant, all the information they need to complete your tax return is already organized for them in Quickbooks. Come tax time, all you have to do is provide them with a read only login to your Quickbooks account, and they can take it from there.
- If you do your own taxes, Quickbooks allows you to easily transfer all the needed information into a tax preparation program like TurboTax.
- If you do your own taxes, Quickbooks allows you to easily transfer all the needed information into a tax preparation program like TurboTax. Click Here to Get a Free Trial of Quickbooks
- Chart Your Success with Quickbooks Report Options Quickbooks also makes reporting on your businesss financials a breeze. While there are many reports available to you, the 3 most important are: ! The Profit and Loss Report (Income Statement) The Cashflow Statement The Balance Sheet ! Lets have a look at what each tells you about your business:
- The Profit and Loss Report (Income Statement)
- At the end of the day most people are in business to make money. One of the primary functions of Quickbooks is to tell you just that: How much money your business has earned or lost over a specific period of time.
- Lists all the money you have paid out over a specific time (your expenses), and all the money you have earned (your income) over that same period. Your expenses are then subtracted from your income to give your net income. The profit and loss report Is basically the profit or loss of your business over the time period you have run the report for. You can run profit and loss reports for short periods of time like week over week, or longer periods of time like quarterly or annually. Net income
- Is basically the profit or loss of your business over the time period you have run the report for. You can run profit and loss reports for short periods of time like week over week, or longer periods of time like quarterly or annually. Net income
- statement of Cashflows Keep on top of your cash with your
- You also want to keep track of the amount and timing of the money coming into and out of your business. In addition to keeping track of how profitable your business is,
- The cash flow statement is similar to the profit and loss report, but it does not factor in anything that does not involve actual money coming into and out of the business. The Cash Flow Statement in Quickbooks allows you to do just that.
- Your Balance Sheet See a full summary of your businesss Financial Picture with
- The final piece of the puzzle is the overall financial picture of your business. This is where the balance sheet comes into play. It gives you the broadest overview of everything that is happening with your companys financial picture. ! Your balance sheet is made up of three primary categories:
- Assets: An asset is anything you own that is worth something. This includes both things you can touch (your inventory, real estate, office supplies, cash etc) and intangible things like a patent or trademark your business holds.
- Liabilities: A liability is a legally-binding obligation to settle a debt. It refers mostly to things like taxes, money you owe to vendors for goods and services, and the bank for loans.
- Equity: Is what is left over after you subtract your assets and your liabilities. This includes any money you have invested in your business plus any earnings you have not withdrawn from the business. If your business has lost money over that period you would subtract any losses your business has taken.
- Your businesss equity is meant to show what would be left over if you closed up business today, sold off everything you owned, and paid all your debts.
- Now its time to get setup with your own Quickbooks account. The first step in that process is to choose the right version of Quickbooks for your business. We show you how to do that in the next presentation in this series. You hopefully now have a good understanding of what Quickbooks is and why businesses use it.
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