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The Pros and Cons Of Bookkeeping in QuickBooks Online For Small Businesses

The Pros and Cons Of Bookkeeping in QuickBooks Online For Small Businesses

Are you thinking of using QuickBooks Online to manage your business’s bookkeeping? If so, you’re not alone. In today’s fast-paced digital world, no business can afford to lag behind, making software an essential component of success. Small businesses, in particular, must be agile to succeed. Fortunately, technology makes it easier than ever for small businesses to connect with potential customers and streamline operations.

Many businesses use QuickBooks Online for their accounting and bookkeeping needs for good reason. It can be an excellent program for managing financial information, streamlining processes, and reporting on performance.

However, there are pros and cons to using QuickBooks Online as your business’s bookkeeping solution. Let’s discuss the advantages and disadvantages you should consider before deciding to use QuickBooks Online for your company’s bookkeeping needs.

 

The Pros of Bookkeeping in QuickBooks Online

There are many advantages to using QuickBooks Online as your financial platform. Here are just a few of the biggest pros to using QuickBooks Online:

  • Easy setup – QuickBooks Online has a simple setup process that can be completed in a matter of hours. You should spend plenty of time setting up the system so that it is optimized for your business. The process is straightforward, and plenty of resources are available to help you make the most of your setup.
  • Excellent user interface – One of the best parts of QuickBooks Online is its user interface. It makes using QuickBooks Online easier and more intuitive.
  • Powerful reporting tools – A good accounting solution should allow you to view your financial situation, as well as that of your customers. This can be especially important if you have a subscription-based business model. QuickBooks Online reporting tools allow you to view critical information quickly and easily, allowing you to make smart decisions quickly.
  • Data security – Unfortunately, data breaches are a real problem in today’s business world. QuickBooks Online provides plenty of security features to protect your data. This can help you sleep better, knowing your data is safe from malicious actors.
  • Affordability – QuickBooks Online is one of the more affordable options on the market. If you want to be able to use bookkeeping software that is not going to cause your finances to struggle, this is likely the best option for you.

Protea Financial Bookkeeper with QuickBooks Experience

The Cons of Bookkeeping in QuickBooks Online

Despite the advantages of QuickBooks Online, it isn’t the perfect solution for every business. There are drawbacks to using QuickBooks Online for bookkeeping. Here are a few of the cons to using QuickBooks Online:

  • It is not always the best for growing businesses – While QuickBooks Online is a great solution for small businesses, it may not be the best choice for growing ones. You may need to upgrade your accounting solution as your business grows and expands.
  • Data limitations – While QuickBooks Online has robust reporting, you cannot always use all of it. You cannot use certain features if you have customers governed by specific data laws.
  • Feature limitations – Some small businesses will find that QuickBooks Online lacks features. For example, if your business relies on eCommerce, some features that can help you track purchases may be missing.
  • It doesn’t integrate with everything – Not all software integrates with QuickBooks Online. Some services you may want to use won’t work well with QuickBooks Online, which can create issues for some small businesses.

 

Should You Use QuickBooks Online for Small Business Bookkeeping?

If you are still on the fence about whether QuickBooks Online is the right solution for your business, here are a few factors to consider. Accountants recommend that companies keep their books for at least seven years. If your business is new, it has no history to report, making a new software title a viable option.

If your business is growing, you may need a better solution than QuickBooks Online. If you are unsure if QuickBooks Online is right for your size business, consider reaching out to a bookkeeping specialist here at Protea Financial. Our experts can help you decide whether QuickBooks Online is the right solution for your business today and in the future.

Turning to an experienced bookkeeper can get guidance on reading the different reports and accessing the various financial reports QuickBooks Online offers. Should you decide to use the QuickBooks Online platform, you can either go through the process of setting it up yourself or turn to an outsourced bookkeeper with QuickBooks Online experience for help.

Protea Financial QuickBooks Online

Tips for Deciding if QuickBooks Online is Right for Your Small Business

Here are a few tips to help you decide if QuickBooks Online is the right solution for your business.

  1. Do your research – When you decide to use a new accounting solution, you put a lot of trust in that solution. You want to make sure you’re putting your trust in the right place. Make sure you do plenty of research before settling on QuickBooks Online.
  2. Ask questions – If you are in the process of deciding whether or not QuickBooks Online is the right solution for your business, don’t be afraid to ask questions. You can’t make an informed decision unless you have all the necessary information. Be sure to ask any question you may have to make sure you have all the information you need.
  3. Pick the best option – There are many variations in bookkeeping software, including QuickBooks Online. If you are unsure if the one you are looking at will fit, explore the possibilities. Look at each feature and add-on before deciding on any software title.

You can do a few things to ensure success if you choose to go with QuickBooks Online for your company’s bookkeeping needs.

  • Make sure the data you input is accurate. This can help you make intelligent financial decisions faster.
  • Make sure everyone who needs access to the system has access. This can help reduce the time spent managing the system and allow you to focus on more important things.
  • Make sure QuickBooks Online is integrated with as many services as possible. This will help reduce headaches and keep things running smoothly.

There are many valuable tools within QuickBooks Online. Make sure you take the time to explore it properly to get the most value for your money.

 

Let Protea Financial Help Your Small Business Succeed

Deciding on one specific software for your business can be a daunting task. Thankfully, you do not have to make the decision alone. Turn to the financial experts here at Protea Financial today. We can help guide you toward the best possible bookkeeping software for your business.

You can also turn to us as virtual bookkeepers so you can focus on your business while we track your financial information for you. Put our years of experience to the test. Contact Protea Financial today so you can get your business on the right track.

Protea Financial Can Help You Learn QuickBooks Online for Small Businesses

Here at Protea Financial, we understand that finding the right software solutions is not always easy. If you are considering QuickBooks Online for small businesses, then reach out. We can help!

The Benefits of Using QuickBooks Online

The Benefits of Using QuickBooks Online

QuickBooks Online is the software-as-a-service (SaaS) or cloud version of QuickBooks, one of the most well-known accounting tools available to businesses. QuickBooks has been around since the early 80s, but the online version was launched in 2001. As one of the most widely-used accounting tools, many businesses use QuickBooks on a daily basis. There are a number of benefits this software tool provides, and those benefits can ensure that you always have updated account balances and fully understand your company’s financial status.

Let’s take a look at some of the most popular benefits QuickBooks Online offers and how this cloud version differs from the traditional QuickBooks Desktop offering.

 

Share Access Easily

Sharing your financial information with others in your company and with your bookkeeper or CPA is incredibly easy using QuickBooks Online. Since everything is stored in the cloud, there’s no need to email files back and forth or exchange flash drives with your information on them. You simply share access to the file with those who need it.

This not only makes access very simple and easy, but it also improves your security. Your sensitive financial information isn’t being sent via email, so you don’t have to worry about it being intercepted. There’s also no need to worry about someone losing the drive containing your information. With both of those methods of sharing information, once you’ve given someone the file, you don’t know what they will do with it or for how long they will keep it. With QuickBooks Online, you can simply remove access for a user once they no longer need to see your information. Once that’s done, they can no longer see your data.

In addition to the version of QuickBooks Online that runs on desktops and laptops, there’s also an app you can install on your smartphone or tablet. This app syncs with the data stored on the cloud, so you always have up-to-date information available with the tap of a few buttons. This means you can easily record transactions and create invoices at a trade show or other event where you may not necessarily have a computer in front of you.

 

Data is Backed Up to the Cloud

In addition to having more control over who has access to your information, QuickBooks Online also offers regular backups. You won’t have to worry about backing up data regularly or making certain your backups are up to date. Instead, all of your information is automatically backed up in the cloud. QuickBooks Online doesn’t just keep one backup, either—cloud servers create redundant backups to ensure that even if one server fails, your information can be retrieved.

Protea Financial Cloud Backup of Bookkeeping Data

 

You Can Take Advantage of Everything SaaS Offers

SaaS has a number of inherent benefits that a QuickBooks Online user can take advantage of. The first is that there is no software to install on your computer. SaaS programs work by accessing data on a server. You have access to your accounting software from any computer that has an internet connection because it’s stored in the cloud.

This also means you don’t have to worry about updating or applying patches to every computer that accesses QuickBooks Online. The update is applied to the cloud software, so it’s instantly available to anyone who logs in.  If you have a copy of the software installed locally on multiple computers, every copy has to be updated. If one user fails to do this, it can leave a hole in your security that can be easily breached.

Scalability is another great feature. If you install software on each computer, you have to purchase a license and then have your system administrator install it. With SaaS applications, all you have to do is add a new subscription to your QuickBooks Online account. The user you add instantly has access to the application and your data. When you need to remove users, you simply cancel their subscription.

This makes QuickBooks Online more affordable, too. Buying a one-time piece of software is often very expensive, and you only get a single license. With a subscription model, you can add or remove users as needed, and you only pay for the number of active subscriptions. You’re not left with multiple copies of expensive software you paid full price for but no longer need.

While the desktop version of QuickBooks certainly has its uses, many small business owners may find that QuickBooks Online has everything they need.

QuickBooks Online vs QuickBooks for Desktop

(as of March, 2022)

 

  QuickBooks Online Desktop
Plans

Four:

Simple Start, Essentials, Plus, Advanced

 

Two:

Pro Plus and Premier Plus

 

Lowest Cost Plan $25/month (Simple Start)

 

$349.99/year for a single user (Pro Plus)

 

 

Most Expensive Plan

 

$180/month (Advanced) $549.99 /year for a single user (Premiere Plus)

 

Maximum Number of Users

 

25 users (Advanced plan)

plus three accountant accounts

5 users (Premiere Plus)

 

Software

 

Cloud-based, so no local software installation needed

 

Software is installed on your PC.

 

Scalability Easily scale upward or downward by adding/canceling subscriptions at any time

Each user needs their own copy of QuickBooks

 

 

Shareability Easily share your data with your bookkeeper by adding them as an accountant user

Save your data as an accountant file and email it to them for use.

 

Learning Curve/Usability Easy to learn and use

Pro Plus and Premier Plus are both easy to use

 

 

Note that there is a third version of QuickBooks, the Enterprise edition, that is aimed at large corporations.

It’s Easy to Learn

QuickBooks Online was designed to be a very accessible tool. This means there’s a low learning curve for new users. For those who have used a previous version of QuickBooks, it’s easy to jump right in and start using the cloud version. Small business owners with little to no accounting experience will find that they can set up a new QuickBooks file and start entering transactions within a few minutes.

While the intuitive design makes it easy to get started, some users may need a little more help. QuickBooks Online includes a full support system. You’ll find various articles and how-to documents in the help section. If you need more assistance, they have an online help desk where you can chat with a live representative.

 

It Makes Automation Easy

One tedious task your bookkeeper (or you as the business owner, if you don’t have a bookkeeper yet) has to do every month is put together account statements and send out invoices. This can take several days if you have a lot of clients. With QuickBooks Online, you can automate this process and take back that time. It’s easy to configure QuickBooks to automatically generate and even email invoices and other regular statements to your clients. Once you’ve set up a client in the system, you don’t have to do anything. QuickBooks can automatically insert their name and other information, then send them the invoice. If you do print invoices, QuickBooks can send these invoices to your printer as well.

If you have signed agreements, receipts, or other paper documents you need to attach to an account, QuickBooks Online makes that easy, too. You can scan the documents and attach them to the account. QuickBooks can then email these documents along with the invoice. If the client pays online, the transaction is automatically entered into QuickBooks, further reducing the amount of work you have to do and ensuring that the transaction isn’t missed. This automation also reduces errors made on invoices or in entering a transaction.

 

Inventory Tracking is Included

In addition to tracking your fiscal transaction, QuickBooks Online also offers inventory tracking. You can keep a list of your products and how many you have in stock in the system. When you invoice a client through QuickBooks, the system will automatically adjust the inventory counts accordingly. This means if you sell three of one item, your inventory for that item will automatically be reduced by three when you enter the transaction. There’s no need for a separate inventory system. By using QuickBooks for both, you again reduce the risk of errors or of transactions being missed.

Protea Financial Inventory Tracking QuickBooks Online

 

Multiple Report Options

Reports are vital to seeing a full picture of your finances. QuickBooks Online gives you a wide range of different reporting options. Each report highlights different information you may need to make decisions regarding the future of your business. With these reports, you’ll always have the data you need. In fact, because everything is cloud-based, you can generate a report from anywhere. You can even access these reports via the QuickBooks Online mobile app, so you don’t even need to have a computer in front of you.

 

Pair QuickBooks Online with a Professional Bookkeeper for the Ultimate Accounting Setup

While QuickBooks Online is an amazing tool that anyone can use, it’s still just a tool. To draw true insights from its reports and fully understand your data, you need a professional bookkeeper on your side. These experts can suggest accounting best practices and implement processes that will always ensure your accounts are accurate and follow all relevant accounting standards. By combining QuickBooks Online and a knowledgeable bookkeeper, you’ll be able to grow your business and improve your bottom line. This is also the best way to ensure that your bookkeeper has access to all the information they need in order to file your taxes.

 

Need a Virtual Bookkeeper? Contact Protea Financial Today

Are you in need of a bookkeeper? Protea Financial offers virtual bookkeepers for businesses just like yours. Because all of our bookkeepers are virtual, you aren’t limited to professionals in your area. Our team is made up of some of the best bookkeepers in the country, and we’re ready to provide whatever financial assistance you need, whether it’s basic bookkeeping or a virtual CFO.

Our team is very familiar with QuickBooks Online and uses it to assist many of our clients. We can track your transactions, set up automated invoicing, create custom reports, and much more. We’ll also be there to help analyze your financial data and provide recommendations to help your business. If you’re ready to bring on a virtual bookkeeper or would like to learn more about how we can help you, contact Protea Financial today.

Want Help Using QuickBooks Online?

Letting the experts take over your bookkeeping tasks allows you to focus on your business. Contact us here at Protea Financial today, and let us help organize your books!