QuickBooks is one the most popular accounting software widely used across USA, Canada, and Mexico and often used across the globe. It has unique features of managing accounting details like: payroll, invoices, bills etc. In spite of so many better abilities, managing and navigating has never been quite easy task due to its innumerable features. But to use its full features, we must have a sound concept of QuickBooks and the knowledge of how it works. Here, I would explain some key concepts of this software:
*Vendors: The vendor area on the workflow diagram and the vendor center accessible on the toolbar allow you to keep track of your purchases from various vendors and categorize your expenses. Here you can create and edit your vendor list, make purchase orders, and enter and pay bills.
*Customers: The Customer area and center allow you to manage your sales to customers. It allows you to create estimates and invoices, track accounts and create statements, receive payments and create sales receipts.
*Employees: If you indicated that you have employees in your Easy Step Interview, an employee center will also have been created to manage your employees.
*Company: The Company area of the workflow diagram allows you to manage lists including your chart of accounts and items and service lists.
*Banking: The Banking area allows you to record deposits and write and print checks associated with your various bank accounts.
QuickBooks uses lists to organize your assets, liabilities, income and expenses and to help you to do your daily business activities. These lists include a Chart of Accounts List, Vendors List, Customers List, and Items and Services List.
=>Chart of Accounts: QuickBooks automatically created a Chart of Accounts for your business. Your Chart of Accounts includes five types of accounts: income, expense, asset, liability and equity. Each time you enter a transaction into QuickBooks, you will categorize the transaction into one of these types of accounts. By categorizing all transactions this way, you are able to easily create balance sheets, income statements, and other important financial statements for your business.
=>Vendors List: The Vendors list is a list of people who you pay for goods and services they offer to you. By creating this list, you will be able to track bills and payments to specific vendors. You can add each vendor to your list at any time by using the vendor center, or you will be prompted to add vendor names as you record transactions.
=>Customers List: The Customers list is a list of people who pay you for the goods and services you produce. This list allows you to record estimates, invoices, and sales receipts specific to each customer. Similar to the Vendors List, you can add customers to your list at any time by using the customer center, or you will be prompted to add customer names as you record transactions.
=>Items and Services List: The Items and Services list is a list of specific items and services you purchase or sell as part of your business. This list allows you to add other detail to the transactions you record. Each item or service is associated with a specific account. For example, hydraulic fluid or oil could be items associated with your “Repairs and Maintenance” account. As with your Chart of Accounts, the more detail you put into your items and services list, the more useful information you will have to analyze your business activities.
Since, we have some understanding about the core concepts and terms of QuickBooks, I now emphasize about our day-to-day activities with it.
Record Business Activities As you record your day-to-day transactions, QuickBooks performs most of the corresponding accounting work behind the scenes. If you accurately and regularly record all your business activities in QuickBooks, you will be able to view your company status and create financial reports at any time necessary.
*Write and Print Checks:
You can print checks directly from QuickBooks (you can purchase checks from QuickBooks online or by phone) or just record information from your own written checks. Although, with
QuickBooks Hosting, printing checks are often tougher.
*Track your Bills:
When you receive bills, you can enter them into QuickBooks and QuickBooks will remind you when they are due.
Enter Bills, Pay Bills
*Track your Sales:
When you make sales to customers, you can enter them into QuickBooks and QuickBooks will keep track of customers who owe you money and when their bills are due.
Create Invoicesr
Receive Paymentsr
Create Sales Receipts
*Record Deposits:
When customers pay you for services or products you have provided by writing you a check, your bank account is not immediately affected. You have a check for a specific amount that is considered an asset, but cannot be used until the check has been deposited. For this reason, when you receive payments from customers or create sales receipts in QuickBooks the amount the customer pays you automatically goes into an account called “Undeposited Funds.” When you deposit those funds (take the check to the bank and make a deposit) you should also record that deposit in QuickBooks.
*Create Reportsr
By accurately recording all your business activities in QuickBooks, It is able to create financial reports for your company including: Income statements (called Profit & Loss in QuickBooks) Balance Sheets, Cash Flow Statements, and many other reports and summaries.
If we use QuickBooks regularly and understand the core concepts of it, it won’t be very difficult to use. Although, there are many versions and editions of it, but with all, the core concept remains same.