When it comes to day-to-day use, not all accounting software packages are made equally. Many accounting programs are designed to handle thousands of complex transactions simultaneously. Furthermore, as the complexity of the accounting system increases, so does the amount of manpower required to maintain them. Small businesses, however, may not need as much functionality. For companies such as these, QuickBooks may just be the perfect compromise.
What is QuickBooks Used For?
QuickBooks is an accounting software package that is designed to help small businesses track and manage their monthly income and expenses. It is an all-inclusive productivity tool that can streamline and simplify a company’s financial statements. Depending upon the size of the company, and the functionality required, QuickBooks comes in four basic formats; QuickBooks Simple Start, QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise.
Accounts Receivable and Accounts Payable Management
Even companies that have no need, or desire, to produce monthly financial statements can benefit from the accounts receivable and accounts payable modules. These vendor and customer control tools allow companies to invoice customers more quickly while holding onto cash a bit longer.
Processing Payroll
Perhaps the most popular function within QuickBooks is the payroll module. Once a company has entered an employee’s payroll information, creating payroll checks is as simple as pressing a button. Quarterly 941s, and annual 940s, can also be created instantly. Additionally, tax withholding and unemployment calculations are done automatically, freeing up employees to work on more important revenue generating tasks.
Writing Checks
Checking writing is, by far, the most commonly used aspect of QuickBooks. It is extremely easy to set up a vendor and print checks to pay those vendors. Even if you do not reconcile your bank accounts through QuickBooks, you can instantly print a check detail which lists every check you have written in numerical order. Additionally, you can alter the date range so that you only see a list of check written for the period in question.
Financial Statement Reporting
Many businesses are under the erroneous belief that they must have an expensive accounting program in order to produce accurate financial statements. This, quite simply, could not be any further from the truth. With QuickBooks, you can create statements, such as the Balance Sheet and Profit & Loss statement, at any time. Furthermore, you can run financial reports on the cash basis; which is crucial for small businesses that are trying to effectively manage their cash flow.
