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7 Key Practices for Maximizing QuickBooks

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Emerald Consulting is thrilled to share a comprehensive guide on the “7 Key Practices for Maximizing QuickBooks Online” with our valued clients and readers. As a leading accounting solution, QuickBooks Online brings a wealth of features to enhance your financial management. Our guide explores how to leverage QuickBooks Online for optimal efficiency and insight.

1. Customize for Clarity and Insight

QuickBooks Online offers advanced customization for invoices, reports, and sales receipts. By tailoring these to your business needs, you can improve clarity and gain valuable insights. Remember, integrating your logo and branding is key to professionalism and consistency.

2. Ensure Accuracy with Regular Reconciliation

Monthly reconciliation of bank and credit card accounts is crucial. This practice ensures your records are accurate, helping prevent fraud and discrepancies. Indeed, keeping your financials current is foundational for trustworthy management.

3. Embrace Cloud-Based Flexibility

With cloud storage, access your financial data anywhere, anytime. This flexibility is invaluable for remote work and staying informed about your financial status. It’s a core advantage for businesses aiming to maximize QuickBooks Online.

4. Streamline Through Automation

Automate recurring invoices and bill payments to save time and avoid missed payments. Automation supports steady cash flow and strong vendor relationships, essential for operational continuity.

5. Utilize Comprehensive Reporting

QuickBooks Online’s reporting tools allow for in-depth financial analysis. Regularly reviewing profit and loss statements and balance sheets is vital for data-driven decision-making. This practice is key to understanding your financial health.

6. Boost Efficiency with App Integration

Integrating with business apps can streamline operations. Identify apps that fit your business model, like CRM systems, to enhance financial and customer relationship management. This strategic approach can amplify QuickBooks Online’s benefits.

7. Commit to Comprehensive Training

Invest in training for you and your team. A deep understanding of QuickBooks Online’s features enables effective utilization. Tailored training meets your unique business needs, driving success.

Conclusion

Adopting these 7 practices can transform your financial management and operational efficiency. Emerald Consulting is committed to providing our clients with the tools and insights for financial mastery. With QuickBooks Online, you have a powerful ally in achieving your business goals.

Integrating QuickBooks with Other Business Tools: Boosting Productivity and Efficiency

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In today’s fast-paced business world, maximizing productivity and efficiency is essential for staying competitive and successful. One of the most effective ways to achieve this is by integrating QuickBooks, a leading accounting software, with other business tools. By seamlessly connecting different applications and streamlining workflows, businesses can streamline operations, reduce manual tasks, and enhance overall productivity.

  1. Streamlining Data Management

Integrating QuickBooks with other business tools, such as CRM (Customer Relationship Management) systems, project management software, and inventory management solutions, can significantly streamline data management processes. The automatic synchronization of data across different platforms eliminates the need for manual data entry, reducing the chances of errors and saving valuable time.

For instance, when a new customer is added to the CRM, the integration can automatically create a corresponding entry in QuickBooks, making it easier to manage customer records, invoices, and payments without duplicating efforts.

  1. Accelerating Invoicing and Payment Processing

Integrating QuickBooks with payment gateways and billing systems can expedite the invoicing and payment processes. Customers can make payments directly through online portals, and the integration will automatically update payment statuses in QuickBooks, leaving no room for discrepancies. This not only ensures faster payments but also improves cash flow management for businesses.

  1. Enhancing Payroll and HR Management

Integrating QuickBooks with HR management tools or dedicated payroll software streamlines payroll processing and reduces manual payroll-related tasks. The integration can handle employee data, attendance records, tax calculations, and direct deposit information, ensuring timely and accurate salary disbursements. Additionally, this integration minimizes the risk of compliance issues, as all payroll data is kept up-to-date.

  1. Optimizing Inventory and Order Management

For businesses dealing with inventory, integrating QuickBooks with inventory management software is crucial. This integration enables real-time tracking of stock levels, automatic generation of purchase orders, and seamless synchronization of sales data. As a result, businesses can avoid stockouts, overstocking, and maintain efficient supply chains.

  1. Automating Expense Tracking

Integrating QuickBooks with expense tracking tools or mobile apps allows employees to easily capture and submit expenses on the go. By automating the expense management process, businesses can expedite reimbursement procedures, maintain better expense records, and gain insights into spending patterns.

  1. Centralizing Reporting and Analytics

Integrating QuickBooks with business intelligence tools consolidates financial data, allowing for more comprehensive and accurate reporting and analytics. Business owners and managers can access critical financial insights and performance metrics from a single dashboard, enabling data-driven decision-making.

Conclusion

Integrating QuickBooks with other business tools can significantly enhance productivity and efficiency within an organization. By automating processes, reducing manual tasks, and streamlining data management, businesses can focus on core operations and strategic growth. Embracing these integrations not only boosts efficiency but also helps maintain a competitive edge in the market, ultimately leading to sustainable success in the long run.

How to Set Up QuickBooks® for Your E-commerce Business

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Setting up QuickBooks for your e-commerce business is a great way to manage your finances, track sales, and stay on top of your financial health. Below is a step-by-step guide to help you set up QuickBooks for your e-commerce business:

  1. Choose the Right QuickBooks Version:
    QuickBooks offers different versions, including QuickBooks Online and QuickBooks Desktop. For most e-commerce businesses, QuickBooks Online is recommended because it provides easy access from anywhere with an internet connection and has a variety of integrations with e-commerce platforms.
  2. Sign Up for QuickBooks Online:
    Go to the QuickBooks website and sign up for an account. You’ll need to provide some basic information about your business during the registration process.
  3. Set Up Your Company Profile:
    After signing up, you’ll be prompted to set up your company profile. Fill in your business details, including the business name, address, industry, and tax information.
  4. Link Your Bank Accounts and Payment Processors:
    Connect your business bank accounts and any payment processors you use for your e-commerce transactions. This will enable QuickBooks to automatically import your financial data, saving you time on manual data entry.
  5. Configure Sales Tax Settings:
    If your e-commerce business is required to collect sales tax, set up your sales tax settings in QuickBooks Online. This will ensure that sales tax is accurately tracked and applied to transactions.
  6. Import Your Chart of Accounts:
    A chart of accounts is a list of all the categories where you record financial transactions. QuickBooks provides a default chart of accounts, but you can customize it to match your e-commerce business needs.
  7. Integrate E-commerce Platform:
    If your e-commerce platform supports integration with QuickBooks, set up the integration to automate the flow of data between the two systems. This integration will help streamline the process of importing sales, inventory, and customer information.
  8. Record Sales and Expenses:
    As you start making sales and incurring expenses, record them in QuickBooks. Categorize transactions correctly using the chart of accounts you set up earlier.
  9. Manage Inventory (if applicable):
    If your e-commerce business involves selling physical products, QuickBooks can help you manage your inventory. You can track the quantity and value of your products, making it easier to understand your stock levels and profitability.
  10. Reconcile Your Accounts:
    Regularly reconcile your bank accounts, credit cards, and payment processor accounts with your QuickBooks records. This process ensures that all transactions are accurately recorded and that your financial statements are up to date.
  11. Run Financial Reports:
    QuickBooks offers various financial reports, such as profit and loss (income statement), balance sheet, and cash flow statement. Use these reports to gain insights into your e-commerce business’s financial performance and make informed decisions.
  12. Set Up Budgets (optional):
    If you want to plan and monitor your e-commerce business’s financial goals, consider setting up budgets in QuickBooks. Budgets help you track your actual performance against your projected targets.

Remember that while setting up QuickBooks for your e-commerce business can be relatively straightforward, it’s essential to maintain good bookkeeping practices consistently. Regularly update your financial records, reconcile accounts, and review financial reports to keep your business financially healthy and compliant. If you’re uncertain about any aspect of the setup process, consider consulting with a QuickBooks expert for guidance.

We are happy to help!

The Benefits of Hiring a QuickBooks© ProAdvisor for Your Small Business

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Small business owners often have a lot on their plate, from managing employees to overseeing daily operations, and everything in between. With so many responsibilities, it can be difficult to keep track of financial records and ensure that all finances are in order. This is where a QuickBooks ProAdvisor can help.

A QuickBooks ProAdvisor is a certified professional who is trained in using QuickBooks accounting software. Hiring a ProAdvisor can bring numerous benefits to your small business, including:

  1. Expertise and Knowledge: A QuickBooks ProAdvisor is an expert in using QuickBooks software and can offer advice and support on everything from setting up the software to creating reports and managing your finances. They have the knowledge and experience to help you make informed decisions about your business.
  2. Time-Saving: As a small business owner, you likely have a lot of tasks to manage on a daily basis. By hiring a QuickBooks ProAdvisor, you can save time and focus on other areas of your business that require your attention. A ProAdvisor can take care of your bookkeeping, payroll, and tax-related tasks, leaving you with more time to grow your business.
  3. Accurate Financial Reporting: QuickBooks ProAdvisors can help ensure that your financial records are accurate and up-to-date. This can help you make better business decisions based on accurate financial data.
  4. Cost-Effective: Hiring a full-time bookkeeper or accountant can be expensive for a small business. By hiring a QuickBooks ProAdvisor, you can get the expertise you need at a fraction of the cost.
  5. Training and Support: QuickBooks ProAdvisors can provide training and support to you and your employees, ensuring that everyone is familiar with the software and can use it effectively.
  6. Peace of Mind: With a QuickBooks ProAdvisor handling your finances, you can have peace of mind knowing that your financial records are accurate and up-to-date.

In conclusion, hiring a QuickBooks ProAdvisor can be a valuable investment for small business owners. By providing expertise, saving time, ensuring accurate financial reporting, being cost-effective, offering training and support, and providing peace of mind, a ProAdvisor can help you take your business to the next level.

How QuickBooks© Online Tracks Products and Services, Part 1

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What products and services does your company sell? Do you have enough to fulfill existing and future orders? QuickBooks Online can tell you.

Most small businesses maintain a changing inventory of multiple products. Even if you sell one-of-a-kind goods, you need to know what you’ve sold and what’s available. And if your company sells services, you also have to keep track of what you’re able to offer customers.

QuickBooks Online can meet these needs. It allows you to create detailed records for both products and services. If you carry inventory, it can make sure that you always know what’s available to sell. When you enter sales and purchase transactions, the site draws on the records you’ve created to help you complete invoices, sales receipts, purchase orders, etc., without having to leave the form you’re working on.

Creating your records initially can take some time. And your products and services require regular monitoring and maintenance. But if you’re conscientious about these tasks, you’re not likely to run short on inventory or have too much money tied up in products that aren’t selling fast enough.

Preparing QuickBooks Online

Before you begin creating records and tracking inventory, you need to make sure that QuickBooks Online is set up correctly. Click the gear icon in the upper right. Under Your Company, click Account and settings. Click the Sales tab in the toolbar. You’ll see the Products and services section near the middle of the screen.

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Make sure you’ve turned on the Products and services features you’re going to need.

Toggle the slider buttons on and off by clicking on them, and be sure to save your changes when you’re done. One option allows you to turn on price rules. This is still classified as a beta feature, but it’s live on the site. It’s also quite complicated to set up and can create confusion for your customers and revenue loss for you if it’s not done correctly. Let us help if you want to use this tool.

Creating Your Product and Service Records

Your first task, of course, is to build your product and service records. Hover your mouse over Sales in the left vertical toolbar on the home page and select Products and Services. The screen that opens is your home base for dealing with inventory and services. Eventually, it will contain a detailed table containing information about both. Two large buttons at the top of the page warn you when you have Low Stock or you’re Out of Stock.

Click New in the upper right corner. A vertical panel slides out from the right displaying your four options for Product/Service information. They are:

  • Inventory. If you buy and/or sell products whose quantities you must track, these items are considered inventory.
  • Non-inventory. You may have products that you buy and/or sell, but you don’t need to track the amount you have in stock. These are considered non-inventory.
  • Service. These are, well, services that you provide to customers, like landscaping or web design. You might sell these by the hour or project, for example.
  • Bundle. You might call these assemblies. Bundles are multiple products and/or services that you sell as a package for one price.

Click on Inventory for this example. Here is a partial view of the pane you’ll see:

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You can track your inventory levels and reorder points when you create inventory product records in QuickBooks Online.

To create a product or service record, just fill in the blanks on the form and save it. Some fields are optional. In fact, only three are required: Name, Initial quantity on hand, and As of date. Of course, your inventory tracking and the use of product and service records in transactions and reports will be much more effective if you complete as many of the fields as possible. We recommend that you at least provide answers in some additional fields (some of which aren’t shown here), including:

  • Category (will be useful in reports, for example)
  • Reorder point (will keep you from running out of items)
  • Inventory asset account (you can leave the default, Inventory Asset)
  • Description (for sales forms)
  • Sales price/rate (what the customer will be charged)
  • Description (for purchase forms)
  • Cost (what you pay to buy it)
  • Expense account (often Cost of Good Sold, but you can ask us to be sure)

Next month, we’ll discuss how QuickBooks Online makes these records available as you complete other tasks, like transactions. In the meantime, please let us know if you have other questions we can answer that would help you use QuickBooks more effectively. We hope you’re enjoying your summer!

How to Create and Use Vendor Records in QuickBooks® Online

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Keeping your supplies coming in may be difficult right now. Be sure you know your vendors and track their records carefully.

Your company counts on its supply chains to keep operations running smoothly. When it falters, you can have trouble creating and shipping products. Problems may even crop up that have a negative effect on your internal business needs.

We don’t have to tell you that COVID-19 has interrupted supply chains. The pandemic has been catastrophic for many small businesses because of this, and because income has been suddenly and sharply reduced. Some financial help is available, and we hope you’re able to take advantage of it during these extraordinarily difficult times.

It’s perhaps more important than ever to carefully track your income and expenses, and we hope you’re using QuickBooks to do so. Among the software’s financial management tools is the ability to maintain thorough records of those vendors that make up your supply chain. Let’s take a look at how this works.

Creating Vendor Records

We’ll go through the steps for creating vendor records, though you may have at least started on these already. Hover your mouse over Expenses in the toolbar and select Vendors. If you’ve already added some, you’ll see them in a list. To create a new one, click New Vendor in the upper right. Most of the form is easy to complete; it’s primarily contact information.

There are a few fields, though, that need special attention. These are:

  • Cost rate/hr and Billing rate/hr. These help you track time costs for your projects. Don’t enter anything here if you pay vendors via bills or expenses.
  • Terms. Due on receipt? 15 days? 30 days? 
  • Account no. and Business ID No. You should have these on file.
  • Track payments for 1099. Put a check in this box for any 1099 contractors.

When you’re done, click Save. This vendor will now appear in your list.

Taking Action

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You can take a number of actions from QuickBooks’ Vendors screen.

You can do a lot of your work directly from QuickBooks’ Vendors page. This screen displays a list of all of your vendors, along with columns for their Phone, Email, and Open Balance. At the end of each row is an Action column. The link there reads either Create bill or Make payment, depending on whether there is an outstanding balance. 

Click on the down arrow in that column to open a list of additional options. If there is a zero balance, you can Create expense, Write check, Create purchase order, or Make inactive. If money is due, your options are to Create bill or Create expense. Icons in the upper right allow you to print the list, export it to Excel, or change the column settings.

Collecting Your Billables

Before we look at vendor records in QuickBooks, we’d like you to check a couple of settings to make sure you’re billing your customers for every expense they incur with you. Click the gear icon in the upper right corner and select Your Company | Account and Settings, then click on Expense. Among others, you’ll see these options:

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If you incur expenses on behalf of customers, be sure you will be reimbursed for them by adding a Billable column on expense and purchase forms.

To add a Customer column to expense and purchase forms, click in the first box pictured in the image above. To Make expenses and items billable, click in the second box and add a default markup rate if you want. Do you want to Track billable expenses and items as income? If you’re not sure, ask us. And if you’ve set up sales tax in QuickBooks and want to add that to billable items, check that box, too. When you’ve finished with these and the other questions under Bills and expenses, click Save.

Now is the time to focus on the importance of cash flow and vendor relationships by maintaining good vendor payable records. You want to keep your relationships with your suppliers in good status. If you’re having trouble tracking cash flow or dealing with any other element of your accounting (or QuickBooks itself), please do contact us. We want to support you through this difficult period as much as we can.