What is QuickBooks? – A Complete Guide

 Are you aiming to grow your business to greater heights? Then, what it will need is proper tracking of your finances, strategic planning of your reports, assessing daily transactions, and organizing administrative services. A business accounting software can be beneficial for your firm, in this case. QuickBooks is the ideal financial tool for all your organizational needs. If you are wondering what is QuickBooks, then it is the perfect accounting software to do the following:

• Track income and expenses
• Generating reports for planning
• Keeping track of daily transactions
• Preparing billings and payroll, etc.

QuickBooks is accounting software that takes care of your business financial needs for small and mid-sized businesses. The software allows you to manage sales and expenses, generating reports, tax filing, and much more. It is developed by the leading financial software developer Intuit. The accountancy software offers a cluster of in-built reports that are easy to customize and makes taking control of your finances easy. Therefore, for flexible and mindful usage of the accountancy software, in-depth knowledge is essential about this software.

Important: QuickBooks users can avail a free 30-days trial of the software.

The History of QuickBooks

Scott Cook and Tom Proulx were the inventors of QuickBooks in the year 1983.

After that in the year 2003, it started flourishing into different industries. Since then various versions of the software have been released. The reports and workflow processes were made according to the specific industry needs so that the application was smoother.

Over the years, it has also penetrated into different international markets.

Features of QuickBooks

• Data Migration: The data in the accounting software gets smoothly transfer to the spreadsheet. This is suitable when you want to have financial data on the spreadsheet.
• User-friendly: The powerful software makes every task pretty easy for the user. Most importantly, the rich features in the software take care of small and medium-sized businesses’ needs.
• Plain sailing process: It’s easy to know where your business stands with the help of the software. Learning how it works is simple and easy to understand. Furthermore, it involves a very short learning curve.
• Bank Transactions: Every transaction of your business is kept transparent and the software will keep on recording the transactions linked to wages, commissions, salary, expenses, profits, etc.
• Invoices Generation: Easy generation of invoices from your smartphone, tablets, and computer system.
• Tax Calculations: The feature of tax calculations in QB gives you the feasibility to calculate tax for your firm in a prompt, accurate, and efficient way.
• Business Projections: The feature of business projections in QuickBooks helps a QB user in generating forthcoming projections. On the other hand, if anyone wants to generate reports – sales, profits, expenses, it becomes simple for them to figure out the things with business projections.

A Guide to Using QuickBooks Software

A systematic approach is obligatory to manage your business accounting needs and to accomplish it, users should be aware of how to use QuickBooks. Without an effective understanding of what is QuickBooks, productivity in business is impossible.

Let’s follow step by step instructions on how to use QuickBooks:

• To begin with, the installation of the software on your computer should be done properly. You need to indicate what type of installation you want by choosing either the Network or Custom Options. If the user will be using it on one PC and it doesn’t share files, select “I’ll be using QuickBooks on this computer.” In case other PC’s will access the files, select the option for your business for using network sharing. After that, you have to indicate the folder to the place you want the program to install.
• Your name with address, tax ID numbers, and financial statements are mandatory for setting up the files.
• After that, you have to create your company file. Then click on the QuickBooks desktop icon for launching the program. Initially, you will see the option to use the EasyStep Interview wizard on your computer system screen. With this, you will be going through the procedure of setting up your company file.

Note: In case you are not adept with QB, the wizard option would be beneficial.

• The next step is to set up and manage your vendor accounts properly. You have to hit “Vendor Center” in the top toolbar. Select the “New Vendor” button for creating a vendor account. Therefore, to add a transaction enter on “New Transaction.” It can be linked to Excel in case you wish to export your vendor information, or to Word in case you like to draft a letter to the vendors. And then click “Excel” or “Word“.
• Now, you have to set up and finally handle your employee accounts.
• Enter “Employee Center” for creating and managing employee accounts. Select “New Employee” for adding employee information.
• Then, enter on the “Transaction” tab for adding paycheck and other transactions. You need to use the “Enter Time” option so that timesheets can be managed.
• Now, create and manage customer accounts. Enter “Customer Center” and then “New Customer and Job” for adding a new source of income. You need to click “New Transaction” for adding transactions like estimates, invoices, and payments. Export of customer information can be done to Excel or generate letters via Word.
• Finally, reports can be generated by the “Report Center.” You can use this feature for getting a quick snapshot of the financial areas of your business.

How Does QuickBooks Work?

After knowing what is QuickBooks, your curious brain must be wanting to know the answer to how does QuickBooks work? So, let’s take a look at the points of working on QB.

Chart of Accounts: The chart will be containing a list of liability, asset, expense accounts & income, equity for assigning your daily transactions.

1. QuickBooks Chart of Accounts comprises the company’s financial information. Information like dividend, accounts receivable savings, Checking, and balance sheets are visible to you within the Chart of Accounts list.
2. Account balances and other info, together with account numbers and contact details, appear within each account’s window.
3. A list of accounts will be appearing just under the Lists menu in your Chart of Accounts.

Customer, Vendor, and Item Lists: Easy to maintain the vendor and customer Item list in one place.

This is the way it works for the user:

1. The accounting software gives you the perfect place to manage your contacts as well as inventory.
2. The vendor and customer comprehend lists of transactions associated with a vendor or customer in a solitary location. Along with this, the Inventory Center will be offering efficient and simple management of inventory and non-inventory items.
3. Every center will be giving a choice to search, edit, add, edit or delete vendors, customers, and items.

Reports: All the reports can be accessed via the help of reports and with this, taking a smart business decision becomes stress-free for an individual.

  How this performs

• In the beginning, complete reports need to fill accurately and for this, you have to enter your vendor, customer, and item details.
• Certainly, customization of reports can be done to filter info by a particular vendor, customer, transaction date, and items.
• After running a report, then you can add it to your memorized or favorite report list so that you can access it whenever you feel like it.

Payroll: The self-service app will streamline the administrative services for the company’s employees and with this Payroll processing becomes simple.

How Payroll Works

• It can manage tax-exempt employees, workers’ compensation, and also tax forms inside the Payroll Center.
• A QuickBooks facility can be availed, thus proffers online choices for sending direct email receipts and deposits.
• Payroll permissions can be assigned to definite users in case of using a multi-user QuickBooks account setup.

Note: Furthermore, you can edit information from the Employee Center for adding additional tips, deductions, and other employee-applicable details.

Types of QuickBooks Versions

• QuickBooks Self-Employed
• QuickBooks Online
• QuickBooks Desktop Products
  • QuickBooks for Mac
  • QuickBooks Pro
  • QuickBooks Premier
  • QuickBooks Enterprise

• QuickBooks Apps

Let us start by understanding all about them, one-by-one.

QuickBooks Self Employed

QuickBooks Self Employed is an excellent product for real estate agents, freelancers, and Uber/Lyft drivers.  Its user can access the work from anywhere, anytime and for this, a good internet connection is necessary. The latest version of the product line is specifically created for freelance individuals and the self-employed. Self- Employed solution comes under two packages i.e Self-Employed and Self-Employed Tax Bundle.

The Self-Employed version permits the users to:

• Categorize and later on track IRS Schedule C tax expenses and deductions
• Also, track expenses and income, keeping separate transactions for personal and business expenses.
• It calculates your quarterly taxes in an easy manner.
• The user can easily connect to their credit card accounts and bank accounts.

QuickBooks Online

The design of QuickBooks Online is to accommodate the needs of different business types. The time-saving feature reduces the precious time of manual entry and makes the users accounting tasks easily such as bank reconciliation. Hence, it reduces the time the user uses to spend in managing their business’ finances, as all is now in one place. This version is available at three subscription levels i.e. Simple Start, Essentials, Plus.

Imp: QB Online is ideal for any service-based business that does not have any sort of complications with invoicing requirements.

The software will assist you to perform the function below:

• At the time of generating invoices and calculating estimates.
• Handling suppliers and customers.
• To organize the preparation, planning, monitoring, and filing of the user’s taxes.
• Understanding your company’s work.
• Maintaining the company’s budget.
• As a result, keeps a track of your cash flow and sales

Common Errors Occurring in QuickBooks Online

QuickBooks online login problems

QuickBooks online login problems are seen at the time of logging in to your software. The particular issue can be a result of the glitches in your PC, an internet issue or due to the browser that you usually gets sign-in.

QuickBooks Online Error 9999

At the time of refreshing your bank details on your computer system, an error message occurs on your PC screen, that reads, “Apologies, we can’t refresh your record. It would be ideal if you have a go at refreshing again later. (9999).” A potential discrepancy in the Windows registry or corrupted installation could be the reason for QuickBooks Online Error 9999.

QuickBooks Online Slow

When the users attempt to access QuickBooks Online they may come across with QuickBooks Online Slow issue on their PC. Generally, the slow error occurs because of factors like browser issues, plugins, cookies, internet speed, slow computer performance, and much more.

QuickBooks Desktop Products

QuickBooks Desktop Products is compatible with users who have a product-based business that consists of complex inventory tracking requirements. Moreover, the Desktop products version comprises tailored-made Chart of Accounts lists, products and services lists for contractors, manufacturers, wholesalers, retailers, and much more. It has come up with a range of improved and interesting new features. Thus, It improves the trustworthiness and the experience of using the software for your business purposes.

There are many products that come under Desktop. These are

1. QuickBooks for Mac
2. QuickBooks Pro
3. QuickBooks Premier
4. QuickBooks Enterprise

Additionally, there is

1. QuickBooks Apps

Common Errors in QuickBooks Desktop Products

QuickBooks Error 6000 77

QuickBooks Error 6000 77 is the error that creates trouble when the user tries to access a company file. One of the reasons for this error is that the folder permission is incorrect which comprises a company file.

QuickBooks Error 15227

QuickBooks Error 15227 pops up on the QB user screen when the desktop gets crashed and stuck during the process of the installation. The specific error is connected with the installation of the software version or the Payroll update that is done.

QuickBooks Error 6123 0

When the user makes an attempt to restore the company files from a backup or hard disk or tries to open a company file from the multi-network server, an error message “QuickBooks Error 6123 0”  will appear on the PC screen.

QuickBooks for Mac

QB for Mac will manage the financial tasks like expense tracking, generating invoices, paying bills, creating standard reports, payments & contributions. Also, the product is said to be the same as QB Pro and optimal for small businesses that are not into manufacturing products.

QuickBooks for Mac includes

• Your “Income Tracker” dashboard will show you unpaid invoices.
• Gives you the freedom of creating fiscal year budgets and track progress.
• It is an untroublesome task to set up and navigate the accounting software in case you don’t have an accounting or bookkeeping background.

Mac features

• Customized charts for accounts
• Batch invoicing
• Track multiple locations & departments
• Customer service & product list
• Multi-user access
• Forecasting and budgeting
• Email tracking for vendors and customers
• Square transactions import
• Past due stamp on invoices
• iCloud Document Sharing
• Reconciliation Discrepancy Report

Common Errors in QuickBooks Mac Multi-user

QuickBooks Mac Multi-user Error

The robust software is made to be used in the multi-user mode. Sometimes QB for Mac can cause some issues concerning working in QuickBooks Mac multi-user mode. There might be several reasons for Multi-User issues. Some of them are network connections, the number of credentials that are in the shared files, Mac’s firewall settings, and much more.

QuickBooks installation error

QuickBooks installation error is the general problem that users might confront anytime during its installation on Mac and Windows. Some interruption during the process of downloading or an issue with the network linking may create the error issue.

QuickBooks Pro

With QB Pro, sharing data and files with the accountant is a trouble-free task for beginners running a small business. The version is for your business so that one gets quick reports and support.

The Pro package has ultimate things to offer, like:

• You will be able to see purchase orders, unpaid bills, and many more things on the “Bill Tracker” dashboard.
• The users will be able to track expenses and sales in multiple currencies.
• Importing of data from Quicken software, Excel and older software versions is possible.

Common Errors in QB Pro

QuickBooks unrecoverable error

The reasons for QuickBooks unrecoverable error code could be network issues, data integrity issues with the company file or corrupt software components. Furthermore, the origin of the QB unrecoverable error is led via a blend of local troubles.

QuickBooks running slow

The productivity of your work may hamper in case your QB is incapable to begin or QuickBooks running slow on your PC. The issue arises if the number of users signing in to the company file at once increases.

QuickBooks Premier

QB Premier is exclusively built for small business users that have industry-specific requirements. It is beneficial for those who are in industries like professional services, retail, non-profit, contractors, and manufacturing.

 Premier features consist of

• Industry-specific reports
• Encompasses job costing and estimating
• Budgeting and Forecasting details

Common Errors in QB Premier

QuickBooks Error 1603

If you are getting QuickBooks error 1603, then, of course, you will not be able to access the financial software and this can lead to a potential financial loss.  There could be multiple reasons for the error 1603 like damaged or incomplete installation files, missing Windows installer components, etc.

QuickBooks Error 1321

QuickBooks error 1321 will be a hindrance in your work when you try to update/install any company file of yours. The error 1321 on your system screen occurs because of the following reasons:

• Current use or damage in the file.
• Security software or antivirus installed on your PC is blocking your QB.

QuickBooks Enterprise

QuickBooks Enterprise is an accounting solution that perfectly suits small and midsize businesses in industries like construction, distribution, manufacturing, and retail. Moreover, With the assistance of QB Enterprise, numerous locations, users, inventory workflows, and big amount of transactions can be handled. This version supports up to 30 user licenses. 

This version assists in organizing these tasks

• There are 14 predefined roles for the admin and the users.
• Multiple users can access the files.
• With the help of the “Expanded list” option, you can track over 100,000 vendors, employees, customers, and inventory items.

Common Errors in QuickBooks Enterprise

QuickBooks Error 3371

If your QuickBooks system file entitlementDataStore.ECML gets damaged, you will be receiving QuickBooks Error 3371 message on your PC screen. The problem of file damage causes because of improper shut down of your PC.

QuickBooks Error H202

QuickBooks Error H202 occurs when the user’s workstation fails to connect with the company file. And this does not permit its users to have a glance at the company file.

Some of the reasons for the occurrence of error H202 are:

• Firstly, the .nd document is incorrect or harmed.
• Secondly, a potential block in your QB communication.
• Damaged services components or Inoperative services.

QuickBooks Error H505

The error will create a problem for the user when you will try to open a company file that is not located on your computer system. QuickBooks Error H505 takes place when an individual tries to access his/her company file.

QuickBooks Error 404

The user will get QuickBooks Error 404 on the screen when it breaks down to sync with Intuit Servers. The reasons for error 404 could be if a server or page is not sync-able or incomplete update results, etc.

QuickBooks Apps

In QB apps, all the user’s information links automatically. Sharing will be done between the software and the app and this will help the user in saving their precious time.

The below-mentioned add-ons can be purchased for an additional fee:

• QuickBooks Payroll: It permits the businesses for paying up to 50 employees via. Direct deposit or check.
• QuickBooks Point Of Sale: It will be allowing your businesses to get good sales, accept your credit cards and also keep a track of the inventory.

Common Errors in QuickBooks POS

QuickBooks POS Error 1328

During the process of installing, updating, or repairing the software, QuickBooks POS Error 1328 pops up on the user’s laptop/ system screen.  The license number that differs from the 2009 version could be the reason for the error.

QuickBooks POS Error 1330

QuickBooks POS Error 1330 shows that an unlawful data signature is positioned at the time of installing POS. The error occurs when the QB user is trying to update the software with the most recent update patch.

QuickBooks POS Financial Exchange Error

Syncing issue between two software gives an invitation to QuickBooks POS Financial Exchange Error. The mapping account and the activity log error is the reason behind the error.

What is New in QuickBooks Desktop 2020?

Well, what QuickBooks 2020 comprehends are some really exciting developments and updates!

Here are some of the top developments that will appear in all Desktop editions in 2020.

QB Premier, Desktop Pro, and Accountant:

The Pay Faster facility to QB user

Get the “paid faster feature” for your small business will help the user to get paid promptly for their small business.

Generating Automatic Payment Reminders

The ultimate feature will help the user to get quickly paid. It will be reducing the time of all the users at the time of tracking the payments. There is no scope of forgetting payment reminders as you would be automatically notified.

Merging Multiple Emails:

The excellent feature of merging multiple emails will be helping both the customers and the vendors. Meanwhile, you can easily combine/merge all the invoices for a single vendor or customer in a solitary email.

Feasibility of Company File Search:

This will help you in searching and also allows you to open all the company files via the extension of a file search option.

Employee self-setup feature

It gives an option to invite employees for upgrading their bank, personal, and tax details through a safe link. You need to add an employee into this and then an email will be sent to invite them for completing their payroll details.

Smart Help

To improve content press F1, as well as to enhance the search experience, or access care agents. Additionally, this can be done through call back options or messaging.

In Conclusion

We have seen how QuickBooks is an all-rounder when it comes to selecting a financial tool for your business. No matter the size of your operations, it offers organization, streamlining and proper management of your finances, so that your business can run smoothly. Also, with the exciting updates furnishing in 2020, it is yet again, ready to surprise its users with extending its functionality.

We hope that the article helps to acquaint you with the software’s parts, working, applications and benefits.

Frequently Asked Questions

Ques- What is the work of QuickBooks accounting software?

Ans- QuickBooks accomplishes the accounting needs of small and mid-sized It is used to manage expenses and sales, keep track of business transactions, generate an invoice of the customers, create reports for planning, prepare reports for planning, and track project details.

Ques- How to set up QB software for small business?

Ans- The steps will help you in guiding to start with QuickBooks:

1. To begin with, you need to make the registration for QuickBooks software.
2. After that, it is mandatory to customize your company preferences and account settings.
3. Then, you have to import business data to QuickBooks properly.
4. Now, you need to sync your bank accounts with the software.
5. Finally, make sure to sync your business credit cards.

Ques- How should I learn QuickBooks software?

Ans- The different sources will help you to learn the software in an effective manner:

1. QuickBooks Tutorials
2. QuickBooks Learning Center
3. QuickBooks-Training.net
4. QuickBooks Training
5. GCF Learn Free
6. Udemy
7. Fit Small Business
8. LinkedIn Learning
9. Better Bottom Line
10. Dummies
11. QuickBooks Explained

Ques- Is it difficult to learn QuickBooks software?

Ans- No, it is not at all difficult to learn the software. If you are finding difficulty in handling business accounting, then you need to dial a toll-free QuickBooks Support Number 1-888-660-0582. Also, with the help of different QuickBooks sources, you will be able to learn the software in a better manner.

 

Ques- Do I need an accountant if I am using QuickBooks accounting software?

Ans- No, you don’t need an accountant to use QuickBooks software. You can think for an accountant to understand the laws related to taxes and Bookkeeping. If you have your rental properties, then you may think of taking the assistance of an accountant.