As a business owner, Quickbooks is hands down one of the most valuable pieces of software you’ll come across. It’s designed to make business accounting, no matter how big or small, a breeze thanks to its clean, easy-to-use interface. As a newcomer, though, you might overlook some of the essential features offered by Quickbooks. To ensure you get the most out of your Quickbooks experience, keep reading for some essential tips and tricks.
Before we start, it’s important to note that there are several different types of Quickbooks software available. The most basic is the online version, which runs for $39.95/month, while the most advanced type is Quickbooks Enterprise Solution, which is available starting at $999.95. Of course, there are also different versions that somewhere in between. Contrary to what some people may believe, the most expensive type of Quickbooks isn’t always necessary. Do some research first to determine which type has the features you need for your business accounting.
Arguably, the single most important feature offered by Quickbooks is reconciliations. I guess you compare this to balancing your checkbook, as you are going over all of your transactions to ensure the end result is correct. If you entered in a wrong number for a transaction or deposit, the end result for your reconciliation will be different. The good news is that it’s designed to catch these errors and show you exactly where the problem occurred. You can then go back through and fix it once you’ve identified the erroneous entry.
When you perform reconciliations on your Quickbooks account, it’s best to start with the smaller bank accounts first and then work your way up to the larger ones. Getting the smaller ones out of the way will clear up some of the interface, making it easier for you to see what you are working with.
Use Journal Entries
A commonly overlooked feature offered by Quickbooks are journal entries. Although they aren’t necessary for basic business accounting, creating journal entries is a quick and easy way to note where a specific payment came from if there’s already an option for it. In the past, most accountants used journal entries to perform nearly all of their accounting tasks. Now, though, they are sparingly used. The truth is that you should really only use them when there’s source available for a check or payment. In this case, create a journal entry and enter the information of the client.