Most business owners aren’t the math type, but managing the business finances still needs to be done. This is a crash course in Accounting 101, designed with small business owners in mind.

Here’s our advice: Manage your small business finances with ease using Quickbooks.

Business owners know tracking finances takes an enormous amount of time. They lose an incredible amount of work hours to finance tasks like writing receipts, bookkeeping, driving to the bank and processing payroll.

It’s complicated, time-consuming and sometimes frustrating. There’s no doubt that basic accounting for a small business is a vital task, but it can take owners away from what they do best… business! Simplify the process and take back that valuable time.

Accounting 101: Simplify with Quickbooks

Welcome to our quick and easy, guide to improving your business finance system! Here you will learn how to use Quickbooks in your small business.

So, what is Quickbooks? Well, simply put, it is software that replaces paper or spreadsheet accounting processes. Instead of entering transactions into a ledger or a spreadsheet, they are entered into a database.

Quickbooks has all the essential accounting forms a business will ever need. Plus, there are many tools and reports that will make the job easier. But first, any old data from paper documents and spreadsheets will need to be integrated into the Quickbooks software.

Integrating Old Data Into Quickbooks

The first thing to do is set up Quickbooks. There are several things that must be done before using the new system. Tasks like building accounts, entering customer and product information and importing old data.

Integrating the old data into the system is likely the most stressful part of the process, but it doesn’t need to be. Spend some time planning ahead to make this task easier. Consider what the business needs to do to make it a smooth transition.

Prepare Before You Dive In

Plan ahead for a smooth transition into Quickbooks. Consider these questions.

  1. What setup needs to occur? Before any data can be entered, accounts need to be built to hold the information. Get familiar with the new software by building these accounts and working in them. Enter a few test transactions to see how the system works.
  2. When is the target go-Live date? Consider the time of year and what business practices will be impacted when the business transitions into Quickbooks. Choose a less busy time of year, if possible. The end of a fiscal year makes the most sense, but each owner should consider their individual business needs.
  3. How will data be entered into the system? Most Excel spreadsheets are imported directly into new accounts but will likely require reformatting to match Quickbooks. Columns will be reordered and some special formatting will be removed. Hard copy data must be entered by hand.
  4. What duties or processes will change? Look at how any new duties or responsibilities involved with receiving and recording data into Quickbooks will be done. Write procedures and plans, develop training for changes and discuss them with relevant employees.

More About Processes and Workflow: Consider Change

Each business has a process for how bookkeeping and accounting work is handled. These processes may change when the business finances are transitioned to Quickbooks. Good processes and workflows help the business run efficiently, so now is the time to perfect them.

Each accounting task will need to be analyzed and ordered in the most efficient way possible. Then, they need to be documented. The best way to document a process or workflow is with a flowchart.

Flowcharting how data is handled or how a task is completed provides a structured, visual image of the process. Done correctly, it can be used as a training tool. A flowchart helps maintain consistency and builds confidence in working with a new system.

Workflows can also give employees an idea of how to prioritize new tasks. Create charts and graphics to remind employees of new workflows. Consider what normal workday tasks may look like. Then, think about weekly, monthly and even annual tasks when assessing workflow.

The more planning that goes into processes and workflow, the better.

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Integrate Old Data

Accounts have been built and old data is properly formatted. It can now be entered into the new Quickbooks accounting system. Check and double check figures to be sure all data was accurately integrated.

Do not stop using old forms of accounting until the data is completely accurate. Some business owners even do test run data integration phases to be sure nothing is missed. One thing is certain, the new accounting system cannot Go Live until old data is integrated accurately.

Go Live

The Go Live date means the new accounting system has reached a point where data is in and ready for real-time work. All new workflows begin now. Perform tasks and work in the new system exclusively.

Input any other data that was received between the initial integration and the Go Live date. Your system should now be fully integrated. It may be beneficial to run reports and check for discrepancies.

Be Patient During Transition

It’s not going to go without a hitch or two. Just expect to see a few issues and have a plan in place to resolve them. Owners and employees will need time to acclimate to the new process of recording and working with data.

Remember, Quickbooks has a support option that business owners can always rely on.

Navigating the Home Screen

Navigating Quickbooks can take some getting used to, but most business owners will be up to speed in no time. From the Home Screen, you have several options to manage accounts, reports, and banking.

Features and Tools

Understand these Quickbooks basics to fully use the new business accounting system. Quickbooks offers a variety of features that help streamline the accounting role and create accurate, useful data storage and reporting.

1. Lists

  • Sales, customers, products, and services lists are used for invoicing and sales transactions. Enter detailed customer information into each customer account. Do the same for any services and products that the business offers.
  • Vendors and Expenses lists are directly related to where the business spends money. Create accounts for vendors and enter expense transactions here.
  • Accounting lists are where all transactions can be found. The chart of accounts will allow owners and employees to view individual transactions by the account they are assigned to.

2. Reporting Tools

Print invoices, expense reports and product information for specific clients, vendors or accounts. Prepare reports for business meetings and the end of year reporting. Custom reports are available, too.

3. Banking Features

Manage your banking transactions through Quickbooks by adding and using online accounts for deposits, check printing and other tools. Business owners can even pay bills with this feature!

4. Taxes

Prepare for quarterly or end-of-year taxes with specific tax related reports. These reports go directly to tax accountants for tax preparation.

The Benefits of Using Quickbooks

The biggest benefit of using Quickbooks is this: All financial data lives in one place and is easily accessible. No more looking through various spreadsheets or files to find information. It’s all right here.

Another benefit is the quick and easy access to reports. They are already designed and ready to go! Print them for meetings, tax reporting and customer relations.

In Quickbooks, data is also secure and backed up, a very important requirement for financial information.

Not Quite Ready to Get Started?

Here’s a link to a sample company. It comes complete with existing data and fully functioning features and tools. You can use this to get a feel for how Quickbooks functions work before you commit.

It can also be used as a training tool for employees who will work with Quickbooks in your company. All you need to do is open the link, validate to prove you are not a robot and the dashboard will open.

Where Can I Get Help?

Did this Accounting 101 crash course simply scratch the surface? Of course, it did! There is a lot to know about Quickbooks, and fortunately, there are other resources available.

Quickbooks has a great set of tutorials for small businesses. Simply click the link and watch one of several videos that walk through different Quickbooks screens.

Need more hands-on help? It’s easy to get started with our small business bookkeeping, accounting and finance services, today.

Contact Us!

ScaleFactor empowers companies by providing Accounting 101 support with small business finances. Please feel free to contact us with any questions! We are here to help.

Sean Haughey, CPA &Sean Haughey, CPA
Account Manager