Tracking daily expenses and income and maintaining books of accounts as per applicable legislation turns exhausting sometimes. That’s why cloud accounting is considered the best option for Bookkeeping.
There are various options available in cloud accounting but QuickBooks Online is considered on top due to its simple user interface for fulfilling specific business needs. As there are various types and various sizes of the firm in different industries they have to follow different standards of accounting.
QuickBooks Online is a one-stop solution as it provides feature-wise rates for Payroll, Time Tracking, Budget, Multiple user access, etc. You can start the plan by paying as low as $12 per month only! Here is the link from intuit that how they help small businesses:
To set up the QuickBooks Online for a business let’s understand from the perspective of Aisha. She provides marketing services to Hotel Industries and generates revenue by charging them per month in Texas. She has a team of 6 people to process the payroll. She was maintaining an account manually in Google Sheets but as the business is growing, she needs to handle the invoice processing, payroll, expenses, and provide reports to the investor. So She wants to set up QuickBooks Online to adopt digitalization in accounting.
What are the primary needs for bookkeeping?
- Monthly Invoice processing for which QuickBooks online provide a recurring feature
- Management of Income and Expenditure
- Tracking of Profitability
- Financial Reporting
Here is what Aisha can do, QuickBooks Online provides mainly four plans to its customers i.e. Simple Start, Essentials, Plus, and Advanced. One needs to choose as per their accounting needs in business. For payroll, QuickBooks provides three different models Core, Premium, and Elite with additional costs as per features.
Let’s understand the difference between the various plans in Quickbook Online
Once we go through the plans we will be able to get it that a simple start has basic features and advanced is for large corporations with multiple divisions. Now for Aisha, all the features except payroll are available in the Simple Start model and as she has 6 employees she can choose a Core payroll plan as reporting requirements are less. Now, Let’s understand the difference between payroll plans.
Source: Intuit QuickBooks (2022)
After subscription, she will see the dashboard as shown below.
Maintaining Books of Accounts
Now she can connect her checking and saving bank account with QuickBooks in the banking center and import the transactions every month. She just needs to review it and add it to the account head by adding the vendor. She can use bank rules for repetitive payees to avoid manual categorization and she is all set to book expenses.
For creating the recurring invoices, she can import the customer list directly from the CSV file. QBO provides extensive guidance for importing vendors and customers. She has to create a recurring invoice one time for each customer and from next month QuickBooks Online will manage the invoices automatically. She can pause, delete or add new invoices in recurring transactions to manage her clients easily.
For setting up payroll she needs a W-4 form from her employees and she can start paying from QuickBooks Online directly. She will need the date of her upcoming payroll, her business information, and the W-4 form of her employees. Get started with payroll in the overview tab and enter the employee information. She can invite employees to fill up their information by sending them an invite via email id. She has to enter the payroll rate, wages per month, tax information, and deduction information of employees. After connecting her bank account with payroll she can directly process payroll from QuickBooks for each pay period.
QuickBooks Online Advisory Service at NimbleFinCorp
In Nimblefincorp we help to streamline the bookkeeping process for clients by choosing the best cost-effective option suitable for them.
We communicate with them to know their expectations and requirements from the accounting system. We try to negotiate with QuickBooks to avail of maximum services for the plan we are choosing for clients. QuickBooks provides business owners to have control over viewing and editing rights. So if one does not want access to the management report for an accountant he can restrict the rights
After choosing the plan we set up a Chart of Accounts as per the nature of business expenses and income. We try to maintain old codes if there are any from the old software. We set up the payroll, vendor, and customer for clients and give them assistance on how they can manage their accounts in QuickBooks effectively.
We also provide various advisory services in maintaining books of account, Merchant Account Management, Invoice processing, and payroll Services. We guide our clients thoroughly in shifting to QuickBooks online from previous software or starting accounting from scratch in QuickBooks Online.
In Short, business owners have the option to pay less and manage their books in QuickBooks Online instead of paying premium charges for other accounting software. QuickBooks Online provides various solutions to business owners as per their specific requirements. You can even take a free trial of QuickBooks online for 30 days. It can simplify your accounts and taxes in one shot.