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What is QuickBooks and How Does QB Work?

What is QuickBooks

Knowing “What is QuickBooks” is pivotal for anyone getting into business finance. QuickBooks, created by Intuit, is a well-known accounting software designed for small and medium-sized businesses. It facilitates financial tasks like invoicing and payroll, helping companies run more efficiently. With its user-friendly interface, even people without much accounting experience can handle their finances.

QuickBooks stands out as one of the leading accounting software options for small businesses in 2023. Whether you’re looking to transition from manual bookkeeping, dealing with a complicated spreadsheet situation, or looking for an upgrade from your existing software, QB offers a cost-effective solution.

In this article, we will explore the functionality and workings of QB, delivering insights into how it can assist you in saving time and maintaining control over your financial statements.

Understanding QuickBooks

QuickBooks stands out as a leading accounting software, transforming the process of financial management. It provides an extensive array of tools and features designed to optimize the accounting process and provide valuable insights into a company’s financial health.

Businesses using QB can monitor income and expenses, manage invoices, keep track of inventory, and generate comprehensive financial reports. QB is user-friendly, catering to freelancers, small business owners, and even large enterprises, addressing a variety of financial needs.

QuickBooks for Small Business

One of QuickBooks’ most significant advantages lies in its ability to streamline financial processes and save time. It manages tasks like invoicing, tracking expenses, and managing payroll automatically. This time efficiency results in increased productivity and a more targeted approach to accomplishing business objectives.

Different Versions of QuickBooks 

QB offers various versions tailored to diverse user needs. The different versions are mentioned below:

1. QuickBooks Online

QBO is accessible from anywhere with an internet connection, this cloud-based version enables users to access their financial data. It suits businesses with remote teams or those needing flexibility in financial management.

QuickBooks Online Versions:

  1. QuickBooks Simple Start
  2. QuickBooks Essentials
  3. QuickBooks Plus
  4. QuickBooks Advanced

Pricing and features of QuickBooks Online

QuickBooks Simple StartQuickBooks EssentialsQuickBooks PlusQuickBooks Advanced
$15/month$30/month$45/month$100/month
Income and expensesIncome and expensesIncome and expensesIncome and expenses
Invoice and paymentsInvoice and paymentsInvoice and paymentsInvoice and payments
Tax deductionsTax deductionsTax deductionsTax deductions
General reportsGeneral reportsGeneral reportsGeneral reports
Receipt captureReceipt captureReceipt captureReceipt capture
Mileage trackingMileage trackingMileage trackingMileage tracking
Cash flowCash flowCash flowCash flow
Sales and sales taxSales and sales taxSales and sales taxSales and sales tax
EstimatesEstimatesEstimatesEstimates
ContractorsContractorsContractorsContractors
Connect 1 sales channelsConnect 3 sales channelsConnect all sales channelsConnect all sales channels
xIncludes 3 usersIncludes 5 usersIncludes more than 5 users
xBill managementBill managementBill management
xEnter timeEnter timeEnter time
xxInventoryInventory
xxProject profitabilityProject profitability
xxxBusiness analytics with Excel
xxxEmployee expenses
xxxBatch invoices and expenses
xxxCustomized access
xxxExclusive Premium Apps
xxxDedicated account team
xxxData restoration
xxxWorkflow automation

2. QuickBooks Desktop

QuickBooks Desktop is installed locally and delivers robust features, enabling users to securely store financial data on their systems. Businesses valuing data control and extensive customization often prefer this option.

QuickBooks Desktop Versions:

  1. QuickBooks Pro
  2. QuickBooks Premier
  3. QuickBooks Enterprise

Pricing and features of QuickBooks Desktop

BasicProPremier
$499/Month$899/Month$1999/Month
Unlimited UsersUnlimited UsersUnlimited Users
Unlimited RecordsUnlimited RecordsUnlimited Records
Up to 10 companiesUp to 20 companiesUp to 50 companies
Importer, Exporter, DeleterImporter, Exporter, DeleterImporter, Exporter, Deleter

3. QuickBooks Self-Employed

QB Self-Employed designed for freelancers and independent contractors, this version optimizes the tracking of income and expenses, simplifying financial management for self-employed experts.

Pricing and features of QuickBooks Self-Employed

Self-EmployedSelf-Employed Tax BundleSelf-Employed Live Tax Bundle
$15/mo$20/mo
Separate business and personal expensesSeparate business and personal expensesSeparate business and personal expenses
Maximize your Schedule C deductionsMaximize your Schedule C deductionsMaximize your Schedule C deductions
Quarterly estimated taxes calculated automaticallyQuarterly estimated taxes calculated automaticallyQuarterly estimated taxes calculated automatically
Automatic mileage trackingAutomatic mileage trackingAutomatic mileage tracking
xPay quarterly estimated taxes online directly from QuickBooksPay quarterly estimated taxes online directly from QuickBooks
xEasily transfer info to TurboTaxEasily transfer info to TurboTax
xOne state and one federal tax return filing included in this bundleOne state and one federal tax return filing included in this bundle
xxTalk to a real CPA when you need
xxGet unlimited help and advice all year
xxHave a CPA do a final review of your return

4. QuickBooks Enterprise

Catering to large enterprises, QuickBooks Enterprise offers advanced functionalities like customized user permissions, industry-specific tools, and enhanced reporting. 

Pricing and features of QuickBooks Enterprise

GoldPlatinumDiamond
$1830/yr$2250/yr$4400/yr
Available in 1-10 or up to 30 users Available in 1-10 or up to 30 usersAvailable in 1-10 or up to 40 users
Payroll built-inPayroll built-inPayroll built-in
Cloud Access* (Additional fees apply)Cloud Access* (Additional fees apply)Cloud Access* (Additional fees apply)
Online backup data storage*Online backup data storage*Online backup data storage*
Advanced Reporting*Advanced Reporting*Advanced Reporting*
QuickBooks Priority Circle serviceQuickBooks Priority Circle serviceQuickBooks Priority Circle service
xMulti-company managementMulti-company management
xAdvanced InventoryAdvanced Inventory
xAdvanced PricingAdvanced Pricing
xBill and PO workflow approvalsBill and PO workflow approvals
xxQuickBooks Time Elite($5/employee per month)
xxSalesforce CRM Connector ($150/month per company file)

5. QuickBooks Payroll

Easily handle payroll tasks with QuickBooks Payroll. It simplifies salary processing, tax filing, and compliance features, making it the preferred choice for businesses of any size.

Pricing and features of QuickBooks Payroll Online

Payroll CorePayroll PremiumPayroll Elite
$22⁵º/month$40/month$62⁵º/month
Full-Service PayrollFull-Service PayrollFull-Service Payroll
Auto PayrollAuto PayrollAuto Payroll
1099 E-File & Pay1099 E-File & Pay1099 E-File & Pay
Expert product support24/7 expert product support24/7 expert product support
Next-day direct depositSame-day direct depositSame-day direct deposit
xTrack timeTrack time and projects
xExpert reviewExpert setup
xxTax penalty protection
For Employees For Employees For Employees 
Employee PortalEmployee PortalEmployee Portal
Health benefitsHealth benefitsHealth benefits
401(k) plans401(k) plans401(k) plans
Workers’ compWorkers’ compWorkers’ comp
xHR support centerHR support center
xxPersonal HR advisor

Pricing QuickBooks Desktop Payroll

Monthly billingAnnual Billing
$55/month$550/year

6. QuickBooks for Mac

Designed for Apple users, QuickBooks for Mac combines a user-friendly interface with robust accounting features, ensuring a coherent financial management experience for Mac enthusiasts.

Pricing and features of QuickBooks Mac

Simple StartEssentialsPlus
$15/month$30/month$45/month
Access expert tax help (with QuickBooks Live Tax)Access expert tax help (with QuickBooks Live Tax)Access expert tax help (with QuickBooks Live Tax)
Free guided setupFree guided setupFree guided setup
Income and expensesIncome and expensesIncome and expenses
Banking with 5.00% APYBanking with 5.00% APYBanking with 5.00% APY
Bookkeeping automationBookkeeping automationBookkeeping automation
Invoice and paymentsInvoice and paymentsInvoice and payments
Tax deductionsTax deductionsTax deductions
General reportsEnhanced reportsComprehensive reports
Receipt captureReceipt captureReceipt capture
Mileage trackingMileage trackingMileage tracking
Cash flowCash flowCash flow
Sales and sales taxSales and sales taxSales and sales tax
EstimatesEstimatesEstimates
ContractorsContractorsContractors
Connect 1 sales channelConnect 3 sales channelsConnect all sales channels
xMultiple currenciesMultiple currencies
xBill managementBill management
xIncludes 3 usersIncludes 5 users
xEnter timeEnter time
xxInventory
xxProject profitability
xxFinancial planning

7. QuickBooks Accountant

Designed for accountants, the QuickBooks Accountant edition is packed with special tools, improved reporting features, and functions that make the accounting process smoother, enabling accountants to work with greater efficiency.

Pricing and features of QuickBooks Accountant

EssentialsPlusAdvanced
$48/month$36/month$70/month
Track income & expensesTrack income & expensesTrack income & expenses
Track sales & sales taxTrack sales & sales taxTrack sales & sales tax
Capture & organize receiptsCapture & organize receiptsCapture & organize receipts
Automatically track mileage Automatically track mileage Automatically track mileage 
Run reportsRun reportsRun reports
Invoice & accept paymentsInvoice & accept paymentsInvoice & accept payments
Progress invoicingProgress invoicingProgress invoicing
Maximize tax deductionsMaximize tax deductionsMaximize tax deductions
Send estimatesSend estimatesSend estimates
Includes up to 3 usersIncludes up to 5 usersIncludes up to 25 users
Manage bills & paymentsManage bills & paymentsManage bills & payments
Multi-currency supportMulti-currency supportMulti-currency support
Enter timeEnter timeEnter time
Track project profitabilityTrack project profitabilityTrack project profitability
Track inventoryTrack inventoryTrack inventory
Create and manage budgetsCreate and manage budgetsCreate and manage budgets
Track classes and locationsTrack classes and locationsUnlimited classes & locations
xxCustomize access by role
xxRestore & backup data
xxCustom reporting fields
xxIncludes 3 accountant seats
xxPremium support
xxManage employee expenses
xxWorkflow automation
xxBatch invoicing
xxSpreadsheet sync
xxRevenue recognition

8. QuickBooks POS

Improve your retail operations with QuickBooks POS, providing advanced tools, inventory tracking, and sales management for a consistent and efficient customer experience.

Note: QuickBooks has merged with Shopify POS, a contemporary, fully integrated retail solution equipped with tools for selling across all channels.
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Benefits of using QuickBooks

QB is more than just accounting software; it’s a powerful tool with many benefits. Whether you are a small startup, an expanding organization, or a self-employed professional, incorporating QB into your operations can profoundly influence your financial management.

 Let’s dig into some of the primary advantages of utilizing QB:

  • Financial Accuracy: Manual bookkeeping is error-prone, risking a business’s financial future. QB minimizes errors with automated calculations and ensures accurate, real-time updates for reliable financial information.
  • Remote Access and Collaboration: QuickBooks Online provides the benefit of remote access. Business owners and authorized team members can conveniently access financial data from any location with an internet connection. This feature is advantageous for remote work situations and collaborations with accountants or financial advisors.
  • Integration with third-party apps: QuickBooks integrates with a variety of third-party applications, including payment processors, time-tracking tools, and e-commerce platforms. This enhances the software’s functionality and allows businesses to tailor it to their specific needs.
  • Ease of Use: QB is known for its user-friendly interface. It’s designed to be accessible for individuals with varying levels of accounting knowledge, making it easier for small business owners and non-accounting professionals to manage their finances.
  • Payroll Management: QB offers payroll services that enable businesses to manage employee payroll, including calculating and filing payroll taxes. This can save significant time and reduce the risk of errors in payroll processing.

Features of QuickBooks 

We’ll delve into the key features that make QB effective for businesses of all sizes. From seamless bookkeeping and invoicing to advanced reporting and tax preparation, QuickBooks provides a comprehensive suite of tools to enhance your financial management experience. Let’s examine the functionalities that can transform the way you handle your finances, saving you time and ensuring accuracy in every financial transaction. 

Tax Preparation Services in New York
Expense Tracking: Track and record business expenses, allowing for better financial control and reporting.
Tracking: Monitor and categorize income streams, making it easier to analyze revenue sources.
Invoicing: Create custom, professional invoices, sales receipts, and estimates that you can send in minutes.
Bank Reconciliation: Connect bank accounts to reconcile transactions, verifying that your financial records match your bank statements.
Financial Reporting: Create multiple financial reports, including profit and loss statements, balance sheets, and cash flow statements.
Inventory Management: Track and manage inventory levels, including product sales and reordering.
Payroll Processing: Manage payroll tasks, including salary calculations, tax withholdings, and direct deposit.
Multi-User Access: Permit multiple users to access and collaborate on the same QuickBooks file, with different permission levels. Integration with Third-Party Apps: QuickBooks can integrate with various third-party applications to extend its functionality, including payment processors, CRM software, and more.
Customization: Customize forms, reports, and templates to suit the specific requirements and branding of your business.
Cloud-Based Access: QuickBooks Online provides cloud-based access, allowing users to manage their finances from anywhere with an internet connection.
Sales Tax Tracking: Automatically calculate and track sales tax, assisting businesses in complying with tax regulations.
Customer and Vendor Management: Maintain detailed records of customers and vendors, enabling communication and transactions.
Budgeting: Create budgets to plan and monitor spending, comparing actual performance against budgeted figures.
Cash Flow Management: Enter bills from vendors, and pay them only when they are due. Set up recurring payments to save time.
Time Tracking: Keep track of employee time and billable hours. Track billable hours by client or employee and automatically add them to invoices.
Free unlimited support: If you need help, support is available with answers to your questions and information on running your business.

How to Use QuickBooks?

The following points outline the steps for utilizing QB effectively:

1. Set Up Your QuickBooks Account: Begin by signing up for a QB account and choosing the version that best suits your business needs.

Login using the links mentioned below:

2. Configure Company Settings: Input your company details, such as business name, address, industry, and fiscal year.

3. Connect Bank and Credit Card Accounts: Link your bank and credit card accounts to QB to enable automatic transaction downloads.

4. Create a Chart of Accounts: Customize your Chart of Accounts to match your business structure. This includes categories for income, expenses, assets, liabilities, and equity.

5. Add Customers and Vendors: Input information about your customers and vendors into QB for easy tracking of transactions and interactions.

6. Record Sales and Income: Create invoices for your customers to track sales and income. Ensure that you record payments accurately when they are received.

7. Enter Expenses: Log your business expenses by entering bills and receipts. Categorize expenses properly to maintain clear financial records.

8. Reconcile Accounts: Regularly reconcile your bank and credit card accounts to ensure that your records match your actual financial transactions.

9. Create Financial Reports: Utilize QB to create essential financial reports such as Profit and Loss statements, Balance Sheets, and Cash Flow statements.

10. Manage Payroll (If Applicable): If you have employees, use QuickBooks Payroll to process payroll, calculate taxes, and generate paychecks.

11. Stay Informed with Dashboards: Take advantage of QB dashboards to get a quick overview of your business’s financial health.

12. Backup Your Data: Regularly backup your QuickBooks data to prevent the loss of important financial information.

13. Utilize Additional Features: Explore other features based on your business needs, including inventory management, budgeting, and time tracking.

14. Seek Professional Advice: If needed, consult with a QuickBooks expert or an accountant at +1-855-875-1223, to ensure that you are using the software effectively and to get guidance on optimizing your financial processes.

Conclusion

In conclusion, QB stands as a versatile and user-friendly financial management tool that simplifies the complexities of accounting for individuals, small businesses, and large enterprises alike. Tasks like payroll, expense tracking, invoicing, and reporting are made easier by its advanced functions, user-friendly interface, and automation capabilities. QB enables users to make informed decisions regarding their business’s financial health by offering a centralized platform for financial data, which helps with accurate record-keeping. If you need any further QuickBooks assistance feel free to contact us at our toll-free number: +1-855-875-1223.

Frequently Asked Questions

What types of reports can QuickBooks generate?

QB can generate various reports, such as profit and loss statements, cash flow statements, balance sheets, and customized reports, offering insights into the financial health of a business.

How does QuickBooks ensure data security?

QB employs robust security measures, including encryption and secure connections, to protect financial data. Users can also set up user permissions to manage access to sensitive information.

Can QuickBooks be used on multiple devices?

Yes, QB provides cloud-based versions that allow users to access their financial data from multiple devices with an internet connection, offering flexibility in usage.

Is QuickBooks suitable for individuals with no accounting background?

Yes, QB is designed with user-friendly interfaces and guided workflows, making it accessible to individuals without an extensive accounting background. The software provides features and tools to simplify financial management tasks for all users.

About The Author

Picture of Editorial Team

Editorial Team

At QAsolved, we are a team of skilled professionals dedicated to delivering unparalleled accounting and bookkeeping services. With backgrounds in finance and technology, our collaborative efforts focus on providing practical solutions and guidance. Our services are tailored for a range of businesses, covering advisory, CFO services, bookkeeping, and financial systems consulting. QAsolved is an award-winning consulting firm and Intuit’s #1 QuickBooks Reseller Partner. We offer comprehensive QuickBooks services, including consulting, integration, migration, maintenance, data conversion, training, and support, among other services. Over the years, we have assisted over 30K customers across various industries with their Intuit products.

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