QuickBooks: The Best Accounting Software for New Businesses
Why QuickBooks Is the Ultimate Choice for Entrepreneurs
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Every business needs to track its income and expenses, and choosing the right accounting software is critical. While there are many options available, QuickBooks consistently stands out as the best choice for new businesses.
This post, adapted from The Playbook to Managing Your Business by the Numbers, explains why QuickBooks is the go-to accounting software for small businesses and how to get started with it.
Why QuickBooks Is the Top Recommendation
Unless you have a specific reason to choose otherwise, QuickBooks should be your default choice. Both QuickBooks Desktop and QuickBooks Online offer features that meet the needs of small businesses, with QuickBooks Online being particularly user-friendly and versatile.
Key Benefits of QuickBooks:
Widely Known and Used:
QuickBooks is a household name in the business world.
Outsourced bookkeepers, controllers, and tax preparers are often highly experienced with QuickBooks, making it easier to hire staff or consultants as your company grows.
Ease of Troubleshooting:
Most QuickBooks challenges can be resolved quickly with a Google search or a call to their support team.
Reliability:
When used correctly, QuickBooks delivers consistent results, helping you maintain accurate financial records.
Scalability:
It’s perfect for startups but can also handle businesses with $20+ million in annual revenue.
Choosing the Right Version of QuickBooks
If you decide on QuickBooks Online, selecting the right version is crucial. To manage bookkeeping effectively, you need a version that includes bill management (vendor invoice tracking). As of this writing, the version offering this functionality is called Essentials.
Features of QuickBooks Essentials:
Tracks vendor invoices and payment deadlines.
Helps manage cash flow by showing upcoming payment obligations.
Integrates with bank and credit card accounts to automatically download transactions, reducing manual data entry.
The Importance of Segregating Business and Personal Transactions
QuickBooks emphasizes the importance of separating business and personal finances. Connecting your bank and credit card accounts directly to QuickBooks allows transactions to download automatically, saving time and ensuring accuracy.
Why this matters:
If your business accounts are used exclusively for business transactions, you’ll avoid the hassle of splitting expenses between personal and business categories.
For example, purchases on a business credit card from Amazon are always for business purposes—no more manual sorting!
Pro Tip:
Use dedicated bank and credit card accounts for your business to keep records clean and minimize confusion.
QuickBooks Desktop vs. QuickBooks Online
Both versions of QuickBooks are excellent, but they cater to slightly different needs:
QuickBooks Desktop:
Preferred by power users who value speed and efficiency.
Can be hosted in the cloud for remote access.
QuickBooks Online:
Ideal for small businesses looking for user-friendly navigation.
Offers integrations with other software, making it versatile for growing companies.
Final Thoughts
QuickBooks remains the gold standard for new businesses looking for reliable and scalable accounting software. Its widespread use, ease of troubleshooting, and robust features make it the ultimate choice for tracking income and expenses.
What’s next?
Choose a version of QuickBooks that fits your business needs.
Connect your bank and credit card accounts for seamless transaction management.
Segregate business and personal transactions for cleaner, more efficient bookkeeping.
QuickBooks helps businesses start strong and scale effectively—don’t wait to set your business up for success!