Register Now

10 Reasons Why You Should Use QuickBooks

QuickBooks is the ideal business accounting software for small to mid-sized business owners. Here's 10 reasons why you should be using QuickBooks.

    1.      QuickBooks solves the problem of where you can enter all income and expenses for your business in an orderly fashion so that financial statements can be created by your outside accountant or your inside accounting department.

    2.      QuickBooks is the most widely used accounting software for the small business.  This is due to its reasonable price and its ease of use.

    3.      Why do you need accounting software?  The best feature of using any accounting software is the ability to enter each of your vendors' names and addresses only once and, after that, you may write checks for your purchases with very little data entry.   QuickBooks makes using this feature easy.

    4.      You will want to work with your accountant to design a Chart of Accounts that sorts expenses in a form that best suits your type of business yet conforms to what IRS wants to see on the company income tax returns.  QuickBooks allows many variations.

    5.      One big advantage to using QuickBooks is you are creating what is called a General Ledger as you make payments and record deposits.   The General Ledger will show every bill you pay and, after your accountant?s review, each will be in the expense category where it belongs. 

    6.      When a month, or other period you choose, is completed, you can transfer the details of every entry you made in QuickBooks for that period to your accountant.

    7.      A Bank Reconciliation is necessary to see that all income and disbursements agree with what your bank reports.  QuickBooks has a built in Bank Reconciliation feature.   You or your accountant can do this task.

    8.      Once your accountant gets the QuickBooks data for the period, he/she will review it for errors and correct these.  Then, journal entries are made for such things as depreciation, notes payments, split checks and to allocate the pay check data that may have been done on a separate payroll system.   If you have transmitted the full QuickBooks files to your accountant, the file can be corrected and returned to you.

    9.      When you and your accountant have done your work for the period, you will have a full and accurate General Ledger, P&L and Balance Sheet saved for as long as you want in your QuickBooks files.

    10.  The QuickBooks financial statements, whether left saved on your PC or the accountant?s or, in some cases, printed out, become the basis for business planning, budgeting, tax planning and, ultimately, are the figures to be incorporated into your company income tax returns.