QuickBooks is a comprehensive accounting software program that offers small business owners many tools to help them run their business more efficiently. Understanding the benefits of QuickBooks means considering it in the context of all small business operations. Before deciding to employ QuickBooks as an accounting tool, you should assess your overall business operation and determine what areas need the most support and then assess how QuickBooks should be deployed to help you reach your business goals.
While the benefits of QuickBooks can reach into almost every area of a business, let’s consider some of the areas where it can have the greatest impact.
Financial Management
QuickBooks provides small businesses with a streamlined and efficient way to manage their finances. With features like invoicing, bill payment, and expense tracking, QuickBooks can help small businesses manage their cash flow more effectively.
Reporting and Analytics
QuickBooks can provide small businesses with detailed financial reports that can help them analyze their performance and make informed decisions. QuickBooks provides a range of financial reports, including profit and loss statements, balance sheets, and cash flow statements.
Tax Compliance
QuickBooks can help small businesses stay compliant with tax regulations. QuickBooks has features that enable small businesses to generate tax reports, track tax liabilities, and calculate sales tax.
Time Savings
QuickBooks automates many accounting processes, which can save small businesses time and reduce the risk of human error. For example, QuickBooks can automate tasks like invoicing, bill payment, and bank reconciliation.
Improved Accuracy
QuickBooks can help small businesses maintain accurate financial records. QuickBooks can automate many accounting tasks, which reduces the likelihood of manual errors. Additionally, QuickBooks provides real-time updates, so small businesses can quickly identify any discrepancies.
Shortcomings of QuickBooks for Small Businesses
While there are many benefits of QuickBooks, it does have its limitations. QuickBooks is a tool, but like other tools, it is important to know how to use it. For many small business owners they encounter the following stumbling blocks when using QuickBooks.
- Steep Learning Curve: QuickBooks can be complex and difficult to learn, especially for business owners with limited accounting experience. The software may require significant time and effort to master.
- Limited Customization: While QuickBooks offers some customization options, the software has limitations that may not meet the specific needs of all small businesses. This can make it difficult for businesses to generate custom reports or invoices.
- Size Limitations: As a business grows and its financial reporting requirements become more complex, QuickBooks may not be able to handle the volume of data or offer more advanced features to meet the needs of larger businesses.
- Subscription-based Pricing: QuickBooks requires a monthly subscription, which can be a significant cost for small businesses with limited cash flow. The cost of the software may also increase if a business requires more advanced features or additional user licenses.
Working with Haworth & Company
The best way for small businesses to realize the benefits of QuickBooks is to use it in conjunction with a qualified small business CPA firm who can assist in initial set up and provide guidance along the way. Haworth & Company uses QuickBooks Online and Desktop with many of our clients, though it is not a requirement. We recognize that for some clients the online interface makes checking on details simple and convenient. But for others who still want to operate on paper, we meet them where they are. Contact us to see how we can help you get more out of QuickBooks, or develop an alternate plan that is better suited to your specific needs.
Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.
