It’s no surprise that after much research and analysis of accounting software, Business News Daily recommends Intuit’s QuickBooks™ Online as the best accounting software for small businesses in 2019.
Offering more than just a streamlined bookkeeping and accounting system, QuickBooks can also be used as a tool to help inform a business’s financial management strategy. In fact, CEO’s and Owners of the best run businesses use QuickBooks to improve their company’s cash flow. Here are four ways you can use QuickBooks to Improve cash flow in your business:
1. USE QUICKBOOKS FOR BILLING AND COLLECTIONS
In general, a good rule to follow that helps improve your cash flow is to make sure you are collecting your payments from clients and customers on time, and optimize your method for how you get paid.
Intuit Merchant Services allows QuickBooks users to accept credit cards for payments, including mobile payments so your service providers can get paid as soon as they deliver services. Intuit Merchant Services can email invoices to customers and automate the collection process. Once they open the email, they can click on a link, enter their credit card number, and pay the invoice right away.
When an invoice is paid, QuickBooks automatically posts the payment to the customer’s account receivable, saving you time of having to input the data manually. Worried about your customers claiming they never received the email? The system will automatically notify you if the invoice email never gets opened so you can follow up with the customer.
The faster you get paid for the services you provide, the better your cash flow will be. Reducing your company’s Days Sales Outstanding (DSO), the time between invoicing and receiving payment, will drastically improve cash flow. With more cash on hand, you avoid wasting valuable time on collections and you can focus that time and energy on generating more revenue for your business. The small percentage of the credit card fee is more than offset by the value of your time that is better spend on how to grow your business.
2. USE QUICKBOOKS FOR BILL PAYMENT
Just like many people have online bill pay from their bank for their personal expenses, QuickBooks allows users to select vendors they want to pay online. This eliminates the need to print a check, saving not only the time it takes to print and sign each check, but the cost of stamp, envelope and buying more paper checks as well.
With traditional check payments, you have to deduct the payment from the account when the check is sent off, but it could take a few days for the check to reach the vendor and then cash the check. Instead, with online bill payment, QuickBooks releases payment from the bank account when the check actually clears, which provides a more accurate snapshot of cash flow.
Another benefit of using QuickBooks is not only that it decreases the amount of time it takes for you to get paid, thus lowering your DSO, but also the amount of time it takes to pay your own invoices. This is referred to as Days Payable Outstanding (DPO), the average number of days it takes a company to pay its own invoices. Reducing your DPO helps you to better manage the flow of cash out of your business, so you can plan better budgets.
3. USE QUICKBOOKS TO DOWNLOAD BANK AND CREDIT CARD DATA
QuickBooks users should set up their system to download bank and credit card statements online. Once in the system, the balances can more easily be reconciled, providing businesses with a more realistic view of their current cash flow situation. You can quickly pull up these balances to gauge where your cash flow is in order to make more informed spending decisions right then and there. Plus, you are able to make a more accurate cash flow forecast when you have the most up-to-date accounts payable information available.
But the biggest benefit of automating bank and credit card downloads is the visibility you get into possible bank fraud. Corporate bank accounts only have 48 hours to contest or dispute a charge. It’s a lot easier to catch potential fraud if you are automatically downloading your banking transactions every day.
4. USE QUICKBOOKS TO FORECAST CASH FLOW
You can use your QuickBooks data and our GrowthForce cash flow template, to create a 13-week cash flow forecast report. This will help you summarize the company’s cash flow for the next 13 weeks so you can make better business decisions. QuickBooks users can download Accounts Receivable (AR) and Accounts Payable (AP) Aging Reports and easily import them into our Excel template. Then then can easily forecast when they expect to collect on each Receivable and pay each Payable over the next 13 weeks.
You can also add Uses of Cash that are not related to Accounts Payable and lay them next to Sources of Cash not included in AR to predict cash flow over the course of the next 13 weeks. This information alone can help businesses make better business decisions and even plan further ahead for the future.
If you don’t forecast your company’s cash flow, your company faces a very real risk of failing. Don’t let your business become a statistic; do your homework. Take the necessary steps to establish a solid cash flow forecast.
5 Ways QuickBooks Can Help You Grow Your Business
Any business owner is constantly on the prowl for new and innovative ways to increase the size of his business – and, as a small business owner, you’re probably even more zealous than most about your quest for expansion. Maybe you’ve thought of a few interesting ideas yourself, but, if you’re still a little stymied, it may be time to look at ways you can use an accounting system – something you probably already use or have thought of using – to give you easy ways to expand your reach and ultimately bring you more money.
For small business owners, QuickBooks is usually an ideal accounting system, well-developed enough to handle most tasks (like invoicing, inventory management, reporting, payment processing, etc.) but simple enough in its interface not to overwhelm users with extra features.
But, I don’t use QuickBooks at all! Is there hope for me?
Of course there is!
If you’re a small business owner and you don’t use an accounting system, you might consider QuickBooks; and, even if you already use another common system like Sage 50 or Sage 100, if you feel overwhelmed by the features of those programs, you might also consider going simpler and using QuickBooks. Despite its relative simplicity, you’re perfectly capable of growing your business just by using features already included inside QuickBooks.
Here’s how QuickBooks can help you expand your business:
#1. Sending invoices quickly gets you your money faster
If you send invoices to customers using standard mail, you know what a hassle that can be.
Rather than accepting it as the norm and receiving your funds weeks after you’d like them, you can use an automatic part of QuickBooks to email invoices directly to your customers. Invoices will even come with payment buttons, so, rather than email you sensitive information directly, your customers can pay you through a secure portal that connects directly to QuickBooks. Payment options aren’t even limited to direct debits; customers can choose to pay by credit card as well. This leads nicely to the next point…
#2. Integrated credit card processing makes you more efficient
Aside from letting your clients pay you by email, you can accept payments from them on the spot – as soon as you take your order, or whenever it’s appropriate during your sales cycle – with a QuickBooks credit card processing plugin.
Special virtual payment gateway software plugs directly into QuickBooks in this case and allows users to process real credit card transactions inside QuickBooks, which automatically posts those payments inside the program. This helps loads if you normally spend time manually reconciling payments with invoices at the end of the day, or if you don’t use software at all. You can use the time you save each day to do much more productive things, like inspire yourself with other, more trade-specific ways to expand your company (which, for obvious reasons, would be beyond the scope of this article to discuss).
#3. Bank syncing ability lets you project cash flow precisely
Managing cash flow is of huge import to businesses, and QuickBooks comes equipped with an option to sync your business’ bank account and other financial statistics with the program, so you know exactly how much cash you have on hand at a given moment. For cash flow management and projection, that’s easily half the battle. Having those numbers in front of you will, once again, give you heaps more time to do other things you need to do.
Having access to all of your business’ statistics also gives you a multitude of reporting options, available with just a click – not hours of data compilation.
#4. Mobile app capability allows you to do business without being at your desk
These days, it really pays to be mobile. Intuit, designers of QuickBooks, anticipated this, and added a great mobile app capability that allows a user (or users) to access a business’ vital statistics without even being at work, invaluable for anyone on the go – which these days seems to be the case for business owners more often than not.
And, rather than just save you time, using QuickBooks’ native mobile app allows for mobile payment processing as well, which means you can take payments at trade shows, from your food truck, walking down the street… Anywhere, really. This lets you expand your business to places you simply couldn’t have gone before.
#5. Multi-user capability eliminates bottlenecking
One thing that can really slow a business down is when the boss needs to approve everything. Try as you might, you simply can’t attend to all matters of your business at all times – and, knowledgeable as you may be, another perfectly capable employee may be able to work with your accounting system on your behalf.
With QuickBooks’ multiple user capability, you can allow multiple members of your company to manipulate QuickBooks – with varying permission levels, of course. This eliminates the need for you to constantly approve things because QuickBooks itself can act as your moderator with its varying levels of permission for each user on your system. This means you can spend more time away from the business, more time delegating, and more time thinking of ways to expand your business.
With QuickBooks, you can customize your growth
As a business owner, it’s easy to get too involved with your business to really affect any notable change – and this isn’t good for you, your stress levels, or those of your employees. Though QuickBooks may not come equipped with a manual titled “How to grow your business,” the tools native to QuickBooks will help give you the ability to create your own manual and lead the proverbial horse to water. How much you drink is your choice, but at least you’ll have a source from which to drink at all.
QuickBooks Advice for Small Businesses: A Guide to Help You Manage Your Finances
Bookkeeping is a reality for all small businesses. Many small business owners cringe at the thought of taking care of this task of day-to-day operations. At Pursuit, we recommend QuickBooks to our borrowers to help manage their bookkeeping and finances. While QuickBooks does a great job at bringing the daunting task of running a business’s finances down to anyone’s level, there are still many opportunities for errors. Here are the top 10 most common mistakes we see business owners make in QuickBooks:
1. Confusing account names
The chart of accounts is an organizational tool that allows you to create a listing of every account in your business. You will typically list balance sheet accounts (assets, liabilities and owner’s equity) and the income statement accounts (revenue and expenses).
Perhaps the most widespread issue with business owners’ QuickBooks accounts is confusing account names. Think about your QuickBooks accounts like folders that you file your receipts in at your office. Your accounts become your expense categories when you print off a profit and loss statement, and the categories of your balance sheet. When the names of your accounts aren’t well thought-out, these resulting financial statements can be very confusing for outsiders to understand.
Also, when it comes time for you to enter information into your QuickBooks account, you might enter an expense into the wrong account if the names aren’t clear and understandable. Having an accountant or professional set up your chart of accounts before you begin using your QuickBooks platform helps to bypass this issue.
2. Not reviewing your financial statements
For people without a background in finance, balance sheets can be quite confusing. Entering numbers as negative values when they are supposed to be entered as positive values is a common mistake. This is because it is often counter-intuitive.
For instance, we see all types of debt as obligations for us to pay someone back. That’s why when entering our credit card balance into QuickBooks; it would make sense to enter it as a negative amount. In reality, all new debts entered into your QuickBooks account should be positive amounts. As a rule, most of the data you will enter into QuickBooks will be positive values. When in doubt, check the QuickBooks help resource or ask a professional.
3. Inconsistent information
As a business owner, you’re given a lot of leeway in terms of how you would like to classify certain types of costs for your business. For instance, you can choose to put certain expenses under fixed operating expenses or include them within cost of sales. Whatever you choose to do, the most important thing is to make it a rule and stay consistent.
Issues arise when business owners change their method of classifying expenses from one period to the next. When it comes time for the business to go and raise more money, their financial statements will show unusual fluctuations in expenses, and the ratios that investors and creditors use to decide whether to extend money will be affected.
4. Misusing the undeposited fund account
Many business owners are shocked to find a confusing figure in their balance sheets called “undeposited funds.” Unaware of how it got there or how it got to be such a large figure, business owners often must seek out professional advice to identify this balance.
“Undeposited funds” is an automatically generated figure in a business’s balance sheet to account for money that has been received, but has yet to be deposited into the business’ bank account. Seeing this amount in your financial statements doesn’t necessarily mean there’s an error, but if the figure starts to grow large, it may be a sign that money actually being deposited into the business bank account isn’t being recorded properly.
When your customers send their payments, open up the deposit module, and record all payments in the software.
5. Tracking sales taxes inconsistently
Businesses have different ways of treating sales taxes. Some businesses charge their customers a fixed price including sales taxes, and therefore record sales tax collected as a subcategory of revenue and sales taxes paid as a business expense. Other businesses charge their customers a base price and then add sales to their bill, excluding sales taxes from both their revenue and their expenses.
Either of these methods work, as in both cases sales tax is collected and then remitted one-for-one to the tax authorities. A problem arises when businesses include sales taxes within their revenues and don’t include it in their expenses, or vice versa. When this problem arises, the business’s profitability is either being reported falsely low or falsely high.
Choose to either include sales taxes in both your revenues and expenses, or choose to leave it out of your revenue and expenses entirely.
6. Forgetting to balance accounts receivable and accounts payable
When a business is owed money by its clients or owes money to a vendor, those balances are recorded in QuickBooks under accounts receivable and accounts payable respectively. This helps to keep track of money that has been earned, but yet to be paid, and money that is owed and (ideally) will be paid shortly.
A problem that arises is when money is collected from a client who is paying off your receivable, but that receivable balance isn’t reduced in QuickBooks. This problem results in financial statements falsely indicating that the business isn’t getting paid on time, or isn’t paying its bills on time.
As a rule, when you collect a payment that was previously billed for, or pay off a vendor who gave you some time to make that payment, always check to make sure corresponding receivables and payables are adjusted.
7. Bank account connectivity
Most businesses link their bank accounts to their QuickBooks accounts. This allows transaction information to be automatically downloaded from the bank account into QuickBooks. QuickBooks uses rules, set by the business, to classify transactions into appropriate accounts in the platform.
It’s important to carefully set up these rules when first establishing a business QuickBooks account, and to periodically review. Since the process is automated, any erroneous classification will happen continuously, and can quickly amount to a lot of work for the business owner or bookkeeper to correct.
8. Incorrectly handling loan payments
When businesses receive a loan, it needs to effectively record the payments it makes to keep the loan balance up to date. Every payment on a term loan has a component that is paid towards interest and a component that is paid toward principal.
Businesses sometimes neglect this and either record the entire payment as principal or as interest. Doing so creates an illusion that the business is either paying back its loan faster than anticipated or slower than anticipated. Whenever recording a loan payment in QuickBooks, remember to “split” the amount between principal and interest. This keeps the loan balance in QuickBooks as accurate as possible and can help when it comes time to raise more funding.
9. Product and cost mismatch
When used effectively, QuickBooks provides helpful insights into products’ and product-category performance. By matching product names and product category names within the business’s “Items” list in QuickBooks with its inventory, these comparisons can help businesses determine which items to keep, which to sell more of, and which to stop selling.
When businesses don’t line up these inventory and items definitions, the quality of information that they can get out of their software is reduced down to the overall profitability of all products.
10. Hiring an unknowledgeable bookkeeper
If you decide to delegate the task of managing your QuickBooks account, make sure that you hire the right person for the job. Professional bookkeepers are skilled at managing a business’s chart of accounts and entering the right information in the right place.
On the other hand, many people could have experience using QuickBooks in different capacities. For instance, your recruit might have experience as an office manager and exclusively dealt with entering expenses into QuickBooks.
While this experience is helpful, it only represents a portion of the total knowledge base needed to run a business QuickBooks account. Hiring the wrong person can cost your business more than you can imagine. For example, inaccurate financial information and reporting can prevent you from obtaining the right financing your business needs to operate.
Having a good financial management system is key to the success of your business. Do not underestimate this very important part of your business. Most importantly, do not fall behind in your QuickBooks entries and reconciliation. Regardless of the size and complexity of your business, as a small business owner you will need to track a significant amount of information.
QuickBooks keeps track of your sales, expenses, inventory, assets, and liabilities. By using your accounting software correctly and avoiding these common mistakes, you will have accurate financial information on hand at any given time to inform you of your daily operations and help you in decision making.
QuickBooks helps you to grow your business (10 Ways)
Here are 10 ways by which QuickBooks can power growth in your business
QuickBooks is unarguably one of the best accounting software available in the market today and preferred by entrepreneurs all across the globe. This application has changed the way accounting and bookkeeping is done and thereby helping in the growth of small and medium businesses. QuickBooks assists the businesses with their day to day financing and bookkeeping activities, which makes managing finances much easier and error free for the users. In fact, this software is being considered a boon for the organizations for its amazing features. If you want to know the most compelling ways QuickBooks assists the businesses to grow the business
In this article we will discuss about the best ways for QuickBooks Desktop to run your business fluently. Thus, stick to the article till the end and explore the ways this software will help your business to grow. Or you can also get in touch with our QuickBooks desktop support team via our toll-free number i.e.+1-888-300-3913.
Our team members will ensure to provide you with the best possible support services in a single call.
List of Ways QuickBooks helps the businesses to grow
Checkout the following ways that can help your business to grow:
1. Invoice Customers
The first in the list is Invoice customers. Invoices are basically used to ask for money owned. In fact, the invoice entails a list of products and items that were given to customers and for which the person owes money. All these facts makes it important to make these invoices properly, and ensure to receive the right amount of money and thereby it increases the cash flow. This is where QuickBooks helps the businesses, with its invoice feature. With the help of this feature in QuickBooks, the users can send invoices to their customers with much ease and that too without any error.
2. Control Cash Flow
QuickBooks is a great application to manage your cash flow. Controlling one’s cash flow is now possible with QuickBooks accounting software. Instead of using online banking one can use QuickBooks Desktop 2020, but the users have to keep the file updated regularly. Moreover, the user can manage the cash flow by analyzing the break-even point as well as by using cash flow worksheet. Thus, controlling cash flow becomes easy with QuickBooks features.
3. Manage Bills and Account Payables
Paying bills to vendors and suppliers on time is one of the most important tasks that is to be performed by every business owner. Many times people miss out the due dates and fail to pay bills on time, but this can be now rectified by using QuickBooks. Entrepreneurs can make use of QuickBooks online bill pay feature to make the payments on time. Moreover printing of checks will reduce the hassle of data entry and enhance the productivity.
4. Memorized Transaction
The Memorized transaction are basically templates that speeds up the data entry process.This feature is used for the automatic transactions that happen regularly and this consists of journal entries, payments, invoice bills and more. As most of the items are entered automatically this increases the efficiency. Thus, memorized transaction also helps the users in growing their business.
5. Journal Entries
The journal entries basically help in keeping the accounting transactions in proper sequence. This feature is important to resolve QB issues or make year end entries as per your CPA to match your tax returns. The QuickBooks users can make the best out of this feature and get rid of various issues.
6. Online Banking
To use online banking the users have to set-up a QuickBooks account. This will lessen the data entry hassles, and at the same time enhance the growth of the business.
7. Printing Checks
Printing of Checks is a great way to keep the cash flow updated while increasing the efficiency and also reduces the data entry hassles. The check will not be clear the bank statement until and unless cash is deposited and it also ensures that it includes cash flow analysis.
8. Payroll Management
Payroll is basically the money paid to an organization’s employees and Payroll Management plays an important role. Even though many companies outsource payroll, it can also be easily processed through QuickBooks. However, it is very important to keep a proper record of your outsourced payroll. Thus, payroll management becomes easy and less time consuming with this amazing feature of QuickBooks.
9. Financial Reporting
Another feature that successfully made to this list is financial reporting. Without any doubt, financial reporting is an integral part of bookkeeping process. So, without running or analyzing the financial reports your bookkeeping process will not perform to its full capability. With the help of QuickBooks, the users can successfully report the financial activities with much ease.
10. Custom Reporting
Import capabilities is an essential feature in QuickBooks. You can make use of ‘CSV’ converter to QuickBooks so as to make your data importable. For this you might require to seek developer data to create the IIF files.
This brings us to the end of this article. The list of features of QuickBooks that help the users to grow their business doesn’t end over here, rather there are a lot more aspects associated with it. QuickBooks has many benefits for businesses. For being packed with powerful features today most small and medium businesses are taking the help of QuickBooks. Seeing the increasing demand for QuickBooks, Intuit launches a new version of the applications every year. What is best that 24/7 QuickBooks support services are readily available that helps you with issues as well as answers all queries regarding the software.
If you want more discussion on this topic or you have any queries regarding it, you are free to contact one of our Intuit Certified ProAdvisor by dialing +1-888-300-3913 to get all your answered in the best possible way.