I recently had a Dentist ask me, why is QuickBooks or any other accounting programs important to them to successfully operate their business. I always tell my clients the accounting programs are just a tool available to business owners, just like Microsoft Excel or a pen & notebook are also tools used by business owners. How you use the tool, determines how well it will benefit you. I believe QuickBooks Online (QBO), is a great tool for running any small business. Here are a few advantages of using a cloud based app like QBO.
1. Cash flow management – QBO can help you better understand your businesses' cash needs & uses. QBO keeps track of all the checks & expenses that have not cleared your bank account, so that you know how much cash you actually have on hand. You can also connect your credit card & bank accounts to QBO, so that all your expense transactions get downloaded for you. Many business owners delegate entering bills into QBO to their office staff, who have limited access to QBO. You can also scan in or take photos of your invoices/receipts and attach them to the transaction or upload them to the QBO storage.
2. Daily revenue & deposit reporting – QBO can help you better track your businesses' financial performance by allowing you to enter your daily revenue, credit card & cash deposit activity. This task can also be delegated to a staff member, who would have limited access to your QBO account.
3. Payroll management – You can process your own payroll directly in QBO. The payroll services that are included in QBO allow you to pay all your employees through direct deposit, so that you don’t have to spend time printing and signing checks. QBO also takes care of your federal & state payroll tax deposits. It can also take care of your quarterly 941s and state payroll tax forms. If you have QBO then you don’t have to worry about making deposits on time or sending in payroll tax forms on time, they take care of all the headaches for you. If you use an outsourced payroll provider, such as ADP or Paychex, they can also transfer their payroll data into QBO at the end of each payroll.
4. Apps that work with QBO – There are hundreds of apps that connect to QBO, which can help automate a lot of your accounting & tax tasks. For example, there are timesheet apps that employees use to clock in/out on, and at the end of the pay period, the hours transfer into QBO. Also, if you don’t want the headache of filing & paying your monthly sales tax, you can subscribe to an app that takes care of that for you or an app that automates paying your bills.
5. Reports & Data – QBO is a cloud based program, which means you can access it from anywhere and run various reports from your computer or smartphone (QBO app or internet). You don’t have to keep waiting for your CPA to finish up the month end work to get an idea of how your month went; as long as your revenue data & expenses are entered correctly, your QBO PNLs and reports will be close to accurate.
6. Better tax planning – QBO allows you to invite up-to two accounting firms to your online account. Your CPA(s) can access your data online, so that you don’t have to send them any backups or printed reports. By having your data in QBO and reconciled on a timely basis, your CPA can help you better plan your income taxes.
These were just a few benefits of using a cloud based accounting system like QBO. There are many other features that can benefit business owners if it is setup & used correctly.
One thing that deters many business owners from QBO, is the related monthly subscription costs for QBO and select apps. I believe at the end of the day, the benefits of QBO far outweigh the related monthly subscription costs. We have helped many business owners setup a successful accounting system using QBO, which has helped them free up time to focus on their business operations and grow their business/practice.
I'm a CPA and a Certified QuickBooks Online ProAdvisor. If I can help you create a cloud based accounting system that lets you automate & delegate many of your time consuming tasks or if you'd like to discuss in detail how QBO can help you, please feel free to contact me.
Vic Bava, CPA
vbCPA - Accounting & Tax