What are the five basic functions of QuickBooks?

Cloud accounting is a way of providing accounting services. Accounting software has revolutionized the accounting industry. QuickBooks is one of the most popular and most used accounting software worldwide.

Meru Accounting offers various specific solutions such as QuickBooks Online, QuickBooks Desktop, QuickBooks Payroll, and QuickBooks Time. The most recommended option for businesses is QuickBooks Online.

Let’s dig deep into the details.

What is QuickBooks and How Does it Work?

QuickBooks by Intuit is small business accounting software that helps to manage income and expenses and track the financial position. QuickBooks use for enables the user to invoice customers, pay bills, prepare taxes, and generate financial reports.

The QuickBooks Features range includes various specific solution products, such as QuickBooks Online, QuickBooks Desktop, QuickBooks Payroll, and QuickBooks Time. The most recommended option for businesses is QuickBooks Online.

You can avail of a QB for the 30-day trial period and switch to the monthly/yearly subscriptions.

QuickBooks Cloud Accounting offers a lot of functionality to streamline the quickbooks accounting process. However, it doesn’t imply that you save time. This is because you must be through to the multiple functions and stay organized to utilize its full potential. You can seek the help of professional service providers like us.

05 Basic Functions of QuickBooks

The five basic functions of QuickBooks Software can be categorized into Vendors, Customers, Employees, Company, and Banking. Basically, these heads are categorized as per the function and purpose it serves.

1. Vendors

In the top left corner, Vendor is the first function. It enables the user to enter bills and use the pay bill function to initiate online payment along with the Vendor center. It also allows one to make purchase orders, record inventory, and enter bills to schedule supplier payments. It helps track upcoming payments. Thus, it automates the function associated with Accounts payables.

2. Customers

It manages the Accounts Receivables process of the business. This function allows the user to create and print invoices and email them to the customers. You can track the AR by looking at the number of outstanding invoices. It runs an AR aging report to track the number of days the invoices are overdue. You can create an invoice from scratch or customize an existing invoice template.

3. Employees

QuickBooks helps to maintain the timesheet of the employees. When you have consolidated employee details, it enables you to ensure timely payment to employees. It automatically calculates and runs payroll automatically when you need it. When you enter employee time, these hours automatically flow to invoices and payroll modules.

It is better to integrate QuickBooks Payroll with QuickBooks, you can also calculate and file payroll taxes and e-pay them.

4. Company

It helps to create and update the Chart of Accounts. It allows users to keep simple and organized Charts of Accounts to stay on top of their finances in the closing month. Items and services are keys for Customers as it contains all the details of information and helps in pre-sets to create bills.

5. Banking

The banking function helps to pay bills to customers. You can use the print check function to print bills. You can check the register to track the banking activity. You can pay online through bank transfer or check directly with just a few clicks and pay multiple bills at one go. You can also make payments to the supplier via credit cards in QBs. QuickBooks Software Online Bill Pay comes integrated with QBs Essential, Plus, and Advanced.