6 Ways You Should be Using QuickBooks for Your Business
The question these days is not why to use QuickBooks, but rather how to use it to grow your business and increase your profits. One of the most widely used accounting platforms in the world, Intuit QuickBooks is a powerful software that can make a big difference in your bookkeeping practices when used correctly. As Maryland QuickBooks trainers and consultants, at CFO Source we’ve helped many business owners get the most out of QuickBooks. Here are just a few ways you should be using this software to your business’s advantage.
To Monitor Cash Flow
Keep track of who owes you money in accounts receivable and check who you owe money to in accounts payable. Look at the history rather than a snapshot of the current activity. You may find that your cash flow is drying up due to consistent late payments from clients, so the next step would be to implement new billing practices to ensure you get the money on time.
Set a target budget for a project or for the entire year and then compare how you did in reality. Were you off the mark by a lot due to some factors you didn’t account for? Did you manage to keep your spending under budget? Write down what worked and what didn’t, so that next time your financial projections are more accurate.
QuickBooks allows you to assign classes and other attributes to your income, expenses and transactions. By doing this, you can track spending by department, branch or in any other way that makes sense for your business. Instead of looking at a lump sum of profits or spending, you will be able to see where exactly the money is coming from or going to.
To Dig for Trends
Once you have a few years of financial data in QuickBooks, you can start mining for trends to find opportunities to grow your business. Analyze your successful and less successful time periods to identify the contributing factors. QuickBooks offers a variety of pre-formatted customizable reports you can run to extract the needed data. You can even export certain data into Excel and other applications to sort it the way you like and create charts and graphs for visual representation.
To Save Time
One of the biggest selling points of QuickBooks is that it saves you time by automating certain accounting tasks you would otherwise spend hours completing. If you still invest too much time in QuickBooks, you are doing it wrong. Maybe you are just not familiar enough with the software to quickly find what you need? In this case, you could benefit from QuickBooks training courses. Or maybe as a CEO of a growing business, you simply don’t have time for this? If so, it might be a good idea to outsource your financial functions to a qualified CFO.
To Reduce Your Accounting Fees
When you have a well-organized QuickBooks company file managed by a knowledgeable accountant, you may expect to save on accounting expenses, especially when it comes to tax filing. You will also be protected in case of an audit. However, this is only possible if you or your in-house accountant know how to set up and use QuickBooks correctly. Otherwise, you risk creating a mess that may be costly for your Maryland CPA to clean up.
Contact CFO Source today if you are interested in learning more about using QuickBooks or to get help with bookkeeping or financial planning.