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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!

The Benefits of Hiring a Bookkeeper with QuickBooks Experience

The Benefits of Hiring a Bookkeeper with QuickBooks Experience

Bookkeeping is not a new science. Historical records indicate bookkeeping existed as early as 6000 B.C. Ancient Babylonian kingdoms recorded inventory from crops. Bookkeepers in Greek and Roman societies counted and noted agricultural crops, as well as payments to farmers. While bookkeeping may have been around for thousands of years, they are just as important now as they were in the ancient past.

Not only do bookkeepers remain important, but they have branched into specializations.

In fact, there are many different types of bookkeepers with different specializations. While a general bookkeeper is great for a small business, you may reach a point when you need a bookkeeper with areas of specialization. One area of specialization that bookkeepers can have is with computer technology for bookkeeping, such as QuickBooks. Here is some information on why you want to hire a bookkeeper with QuickBooks experience for your business.

 

Protea Financial What Does a Bookkeeper do?

 

What Does a Bookkeeper Do?

The term bookkeeper is short for bookkeeping clerk. Bookkeepers keep the financial records of a business. In fact, bookkeepers are vital for the history of a business, because it is only when a business’ records are precisely kept can information help a business survive. For example, if you don’t have a bookkeeper, but you vaguely remember paying a vendor for your business, how can you prove it, if you don’t keep accurate records?

One of the most important tasks of a bookkeeper is to keep the accounting books of a business, which means they track the income that comes into the business, as well as outgoing expenses from the business. Usually, this means that a bookkeeper tracks the business’ inventory as well, because inventory can be related to outgoing expenses as well as income from the sale of inventory. Depending on the size of your business, bookkeeping may involve using accounting software, spreadsheets and databases.

Bookkeepers also track all of the money, usually through postings to accounting software, on a daily basis. It is through posting each transaction daily that bookkeepers can regulate the amount of money a business uses to operate. Without a bookkeeper, many business owners would have no idea what their monthly expenses and income is, which prevents any business from growing, developing a budget, forecasting future expenses and income, or even securing additional financing.

While bookkeepers do not deal with hiring, onboarding, or other aspects of Human Resources (or HR), they may process payroll, and they will keep records regarding pay, taxes, and other employee withdrawals on payroll, such as Social Security and Medicaid, insurance and retirement benefits. No matter what the payroll deduction is, a bookkeeper can keep track of it.

Because bookkeepers are record keepers, it is essential that they are versed in how to keep the most accurate records possible. Bookkeepers who are excellent at their chosen profession already know all of the best ways to keep records. In the past, record keeping happened in large ledgers, leather-bound, that bookkeepers stored on shelves behind them for authenticity. Now, the best bookkeepers use accounting software to keep the most accurate records possible. One example of accounting software that bookkeepers use is QuickBooks.

 

What QuickBooks Does

In the early 1980s, two computer software programmers decided to move from designing an individual expenses and accounting program (Quicken) to designing double entry ledger books for small businesses—which became QuickBooks. QuickBooks is the predominant bookkeeping software for businesses, with a 95% saturation in the market.

QuickBooks is an important financial tool. Through the QuickBooks program, bookkeepers can keep track of a ton of business financial information—all in one program. QuickBooks can help businesses manage:

  • Accounting. One of the most important functions of the QuickBooks program is to manage income and expenses daily. With QuickBooks, each line of income and expenses are tracked electronically. The importance of having a daily income and expense tally can’t be overestimated.
  • Payroll. QuickBooks can help businesses track the amount of money outgoing for payroll, taxes and employee benefits. This is extremely important for the state and federal business taxes you owe, either quarterly or yearly.
  • Inventory Management. If you have a business where inventory is important because you are selling a product, you need inventory management. Even if you sell a service instead of a product in your business, you still have to manage inventory such as printer paper, ink, pencils, and cleaning supplies. QuickBooks can help you keep track of your inventory.
  • Taxes. QuickBooks keeps track of the taxes (state, local, and federal) that you have paid in, as well as tracking payroll taxes.
  • Invoices. You can make invoices and send them to client, accept payments, and even pay your invoices via QuickBooks.
  • Bank account tracking and balancing (reconciliation). You no longer need to balance your books, because QuickBooks keeps track of all of your incoming and outgoing expenses and income via your bank accounts. Bank reconciliations are no longer an issue.
  • Budgets and expenses monitoring. Because QuickBooks can manage your incoming and outgoing money, you will find budgeting easy to do electronically, and monitoring your expenses will be less taxing as well.
  • Managing accounts payable and receivable. QuickBooks allows you more control over your accounts payable and receivable by setting reminders and due dates for you to keep your money flowing smoothly.

 

Protea Financial Bookkeeper with QuickBooks Experience

Advantages of Hiring a Bookkeeper

With all of the advantages to a QuickBooks program, why would you need to hire a bookkeeper? The most important reason you need a bookkeeper is for financial record keeping. The larger your business grows, the harder it is to keep accurate, up-to-date records. When you hire a bookkeeper, you are able to turn over all of your financial recordkeeping headaches to them.

Another important reason to hire a bookkeeper is to give you an outside perspective on effectively managing the financial side of your business. You have tons of expertise when it comes to creating a business and making it successful, but the financial needs of your business may not be in your wheelhouse. Bookkeepers have tons of experience on financial record keeping and managing your incoming and outgoing expenses.

Although bookkeepers may cost you money up front, they will save you money in the long run, because they will be able to give you tips to save money on the expense side of your ledger. This may mean everything from trimming your office products budget to regulating the amount of inventory you keep on hand. Bookkeepers are invaluable for money-saving tips.

If you want to have time to really manage your business, concentrate on your clients, and focus on marketing and business growth, you need to hire a bookkeeper. While the bookkeeper focuses on the expenses and income side of your business, you can concentrate on making sure your business stays profitable.

 

Why Your Bookkeeper Needs QuickBooks Skills

Hiring a great bookkeeper is essential to growing your business. If you hire a bookkeeper, you need to make sure your newly-hired employee has QuickBooks skills. There are several reasons your bookkeeper needs to have QuickBooks experience.

First, one of the most important skills a bookkeeper can have is computer literacy. Although bookkeepers used to keep ledgers on income and expenses in ledger books, financial management has been working in the digital age for decades. Your bookkeeper needs to be literate in computers and computer programs, such as QuickBooks. If your new bookkeeper has knowledge of QuickBooks, and uses it regularly, you’ll know they can handle other skills on the computer as well, such as documents and presentations.

Bookkeepers must have numerical literacy as well as computer literacy. In fact, numerical literacy may be just as important as computer literacy for bookkeepers. Because bookkeepers need to have extensive attention to detail, numerical literacy is critical for budgeting and forecasting expenses and income. Your bookkeeper who has QuickBooks knowledge will have the skills to go into the program and problem solve when a mistake occurs with either income or expenses to quickly correct the error.

Bookkeepers sometimes use financial calculators for their business, in order to project future income, expenses by the month or by the year. These calculators will help you forecast when you could make changes to your business, such as adding new products or services, or adding new employees. Although QuickBooks has a ton of features to help business owners, bookkeepers with QuickBooks experience are vital for businesses. Along with financial tools, QuickBooks allows bookkeepers to utilize spreadsheets. Spreadsheets have been a part of a bookkeeper’s experience for decades, because they allow bookkeepers to lay out both past and present expenses. If your bookkeeper has QuickBooks experience, he or she will be able to keep your books accurately.

 

Protea Financial Has a Bookkeeper with QuickBooks Experience for Your Needs

Hiring a bookkeeper is one of the most important hires you will ever make. Be sure that the bookkeeper you hire has QuickBooks skills in addition to the requisite financial recordkeeping knowledge. Not sure how to hire a bookkeeper? You can begin by posting the job on job search websites. You can also ask friends or colleagues for recommendations as well. When you’re ready to hire a bookkeeper, be sure they have all the skills you’re looking for. That way, your business will continue to grow and thrive.

To find out more, reach out to us here at Protea Financial. We can help set up QuickBooks, or we can work with an existing account. Let us know how we can help!

 

Accounting Software: Control Your Finances With Confidence and Ease

Accounting Software: Control Your Finances With Confidence and Ease

An accounting software system is a valuable tool for any business. It allows for more accurate record keeping, which in turn means less work and lower risk of mistakes. It enables you to automate labor-intensive accounting tasks and accelerates tax preparation. There are many benefits to using an accounting system, so it is important to explore them before making the decision on what type of software will best suit your needs. In this post we will review some popular features offered by accounting software systems and the costs associated with each one. We hope that after reading this you will have a better idea of how an accounting system can help you grow your business!

 

What is an accounting software system?

An accounting software system enables a company to keep track of all the various transactions that happen in a business. Transactions vary depending on the company and the industry, but most likely include sales, invoicing, accounts receivable, purchases, accounts payable, taxes, and payroll. All these transactions can be summarized, which provides valuable data for creating charts and predicting future performance.

There are three main types of accounting software systems. First, open-source accounting software is free and can be customized to the needs of the business. The downside is that open-source software may have hidden costs such as compatibility issues, support costs, training, and setup costs.

Second, canned accounting software (or desktop software) runs on your laptop or desktop. The data is also stored on the machine it is installed on. This is a great solution if you live in a rural community with a slow internet connection. It is also easy to use, costs less than other systems, and secure when you are not connected to the internet.

Last, cloud accounting software is stored online. With everyone being hacked these days you may wonder whether your data will truly be safe. The good news is you will not have to lie awake at night wondering if you many years of hard work will one day come crashing down. You are protected—many cloud-based solutions use bank-level encryption, so your finances are as secure as the money in your bank. In addition to security, no installation is required, no updates, backups are automatic, and you can access your data from multiple devices.

 

What are the benefits?

Using an accounting software system will save your company time and prevent avoidable human errors. Instead of tracking everything in a spreadsheet or a paper system, you have all your transactions in one place. It is easy to see what was spent or how much cash is coming into the business. You always know exactly where to find this information.

Accounting software automates some of the most boring accounting tasks, which dramatically increases the accuracy of your data. For example, you can set up so when a sale is made an invoice is sent to the customer set up on credit. The longer you wait, the harder it is to collect. By automating the process, you increase the likelihood of collecting. Furthermore, you can track your unpaid invoices and offer discounts for early payments.

Another benefit of an accounting system is the ability to track cash flow. Just like you can automate your accounts receivable, you can also automate other areas of accounting such as cash flow analysis. By connecting the accounting software to your bank accounts, you can easily reconcile your bank balance to your book balance in real time. No more waiting until the end of the month to find out where you stand financially.

One commonly overlooked area that is a huge win for businesses using accounting software is staying in compliance with taxes. Without good software, it can be difficult and keep track of taxes owed. A good software will calculate the sales tax and prepare the form for you.

If you opt for a cloud-based system (which I highly recommend), you have access to your accounting software system anytime you want. Literally, access to your business is at your fingertips. You can login anywhere you have a connection. So can your accountant, which makes it easy on everyone. Especially at tax time. Your accountant has everything he or she needs to file a complete and accurate return on your behalf.

 

Leveraging an Accounting System

New technologies continue to disrupt the role that accountants play in the marketplace. This is good news because accountants are well-positioned to provide the highest value to their clients. Because accountants are trained to see the big picture, they can further develop an accounting system to tailor to the needs of their clients. As a result, your accountant can be an invaluable source of analytics, insights, and best practices.

Gone are the days of the one-size-fits-all approach. Online accounting systems are compatible with hundreds of third-party applications that extend the usability of their platforms. Take QuickBooks Online, for example. There is a reason why QuickBooks has an 80 percent market share. Not only do they offer one of the most affordable accounting software packages, but they also have one of the most versatile accounting software systems. At the time this article was written, QuickBooks simple plan is $25, their Essentials plan is $40, their Plus plan is $70, and their Advanced plan is $150. All plans include QuickBooks mobile apps, support, and app integration.

What sets QuickBooks apart from their competitors is the software integrates well with third-party services, which make your financial management easier. As your business grows, you can add apps for spend management, billing and invoicing, eCommerce, time tracking, analytics, and inventory management. With over 650 apps to choose from, you are bound to find one that addresses any problems your business needs solved.

There are many advantages to using accounting software for your business. With QuickBooks Online you can use an online solution that is tailored specifically to you and your company’s needs. The benefits of a system like this will outweigh any potential risks associated with not having one in place. There are some great opportunities when choosing between different types of systems as well. We know how difficult it can be to choose which type of software works best for you, so please feel free to contact us if you have any questions.

 

 

QuickBooks Beginner Mistakes You Must Avoid

QuickBooks Beginner Mistakes You Must Avoid

If you’re familiar with QuickBooks Online, you know how spectacular it is in maintaining financial records for small and medium businesses. Whether you’re a business owner or an individual looking for reliable bookmaking software, QuickBooks is a great option.

However, there are some common mistakes beginners tend to make in QuickBooks Online. In this post, we are going to look at the most common mistakes in QuickBooks and how to avoid them.

If you’ve already made these mistakes, it’s your time to correct them. And if it’s your first time using QuickBooks, you’re in luck because you rectify can your mistakes without even making them!

 

Forgetting to Update the Records

This is by far the most common mistake QuickBooks users make. If you’re guilty of the same crime, it’s a good thing you’re not alone. With the fast-paced nature of today’s business world and the stress of managing everything, it’s fairly normal to miss a few transactions here and there.

However, these mistakes might become costly if not fixed immediately. When your QuickBooks records don’t match up with your bank statements, it means you are not on top of your organization’s finances.

To avoid such a rookie mistake, build up the habit of recording transactions when they happen. If it’s too much to ask, at least update the records at the end of the day.

 

Double Charge

Believe it or not, double entries are also very common among beginners. If you’re the conscious kind, you are more prone to making this mistake. Let’s look at an example.

Suppose, you went on a business trip at the beginning of the month and you spent from

quickbooks transaction

 your credit cards only due to a short in company accounts. Being a good businessman, you logged everything in your expenses tab as a business trip.

However, at the end of the month, when you are paying the credit card bills, you are also considering the ‘business trip’ from before. So, there are effectively two entries for the same expense.

It can cause you a lot of headaches. So, it’s always better to be careful when making entries. Label them clearly so they don’t create confusion for yourself.

 

Write Checks for Payrolls

If you’ve been using QuickBooks as a business owner, there is a good chance you use it for employee payroll as well. So, how do you pay the payroll taxes? If you’ve been using the Write Checks window, you’ve been doing it wrong!

When you use the Payroll function in QuickBooks, the payroll taxes are automatically filed in the Payroll Liabilities window. When you pay them through the Write Checks, the tracking gets all messed up.

So, only use the Payroll Liabilities to pay off those taxes!

 

Deleting Transactions

It’s another huge mistake made by rookie QuickBooks users. As QuickBooks does the job of central bookkeeping for your business, all of the transactions are interconnected across different accounts.

So, when you delete a transaction from one account, it affects the whole ledger. And at the end of the month when you finally sit down to make sense of things, the deleted transaction will cause you a lot of headaches!

So, if you absolutely have to delete any transactions, look for other entries that it might affect. For example, if you delete a transaction in one account, it will effect another account. So keep this in mind before deleting transactions.

 

Making Too Many Accounts

The sub-accounts feature is quite handy in QuickBooks to further organize the books. However, some users take the concept too far and open up accounts and sub-accounts for each of their expenses. If you can keep track, it’s all good.

The problem arises when you can’t. Introducing too many variables is a surefire way to confuse things. For example, do you really need sub-accounts like electricity, gas, etc. under the bills account?

It brings extra stress on your organizing skills. So, what you can do is chalk out a plan for your accounts before you make them. Make a list of the information that you actually need to know and start accounts from there.

So, delete any unnecessary accounts you may have now to tidy up your QuickBooks account.

Tax Preparation Enablement

We provide your organization a true end to end solution to all of your tax needs. Tax season is year round to Protea – if you aren’t preparing daily, it’s too easy to get behind. We are always working with your organization to streamline your businesses tax management.