If you are in the process of setting up your first small business, then it is important you know how to properly keep its books. Thankfully, Quickbooks software makes the process very simple. Even if you do not have any bookkeeping experience, you can successfully use Quickbooks for all of your company's bookkeeping needs.
To get the most out of your bookkeeping software, follow these tips:
Tip: Set Up Multiple User Accounts to Protect Confidential Information
If you have an office assistant who you want to be able to enter transactions in Quickbooks but you do not want them to have access to confidential information such as payroll, then you can accomplish this by setting up multiple user accounts. With multiple accounts, you can easily control the level of access to your company's financial records that each user has.
Tip: Take the Time to Enter Outsourced Payroll into Quickbooks
If your company outsources its payroll to a specialty company or certified public accountant's office, then it is vital for the integrity of your bookkeeping data that you enter all of the payroll information into Quickbooks. You should avoid the shortcut of only entering each employee's gross pay and should enter each deduction for every employee. While this may seem time-consuming, it will allow you to reconcile not only your payroll but also federal taxes, state taxes, and all of your other payroll deductions.
Tip: Skip the Inventory Tracking Function within Quickbooks
While Quickbooks contains an inventory tracking function, it is funky and doesn't work well for most small business applications. While you are advised to choose an inventory tracking system that can interface with Quickbooks, you should not rely on the one inside of Quickbooks alone. While Quickbooks is fantastic for small and mid-size business bookkeeping functions, it is not as great for inventory tracking.
Tip: Show Your Quickbooks Setup to Your CPA Before You Start Using It for Bookkeeping
Finally, before you start using Quickbooks for your small business, first you should set it up and then spend a bit of time reviewing your setup with the certified public accountant who will be filing your taxes. Your accountant is the perfect person to review your bookkeeping setup and will suggest changes that will help make your tax filings easier each year. Your CPA will also ensure your bookkeeping procedures are as accurate as possible and legal for your industry.
Contact a company like Carmines Robbins & Company PLC for more information and assistance.