Starting a small business from home is challenging, but with the right tools and support, you can succeed. QuickBooks Online is a popular cloud accounting software for small businesses and home-based entrepreneurs. It streamlines financial processes and helps you track sales, expenses, and inventory without an accountant.
With QuickBooks Online, you can set up company accounts to view your balance sheet and cash flow statement.You can also manage your invoices, expenses, inventory, sales tax expenses and cost of goods sold (COGS) directly in the software.
Once you understand how QuickBooks works as an accounting tool instead of an invo Accounting system, it’s easier to use on a daily basis. Read on to find out how you can use QuickBooks Online to start your own business at home.
Set up your company account
Before you do anything else, you need to set up your company account. You can do this at any time, but we recommend setting up your company account as soon as possible. Once you have your company account, you can import your data into QuickBooks Online.
This is useful because it gives you a clean, centralized place to view all your data. QuickBooks automatically categorizes the data based on your company name and industry. This makes it easier to track sales, expenses, and COGS.
Track your sales and expenses
As you track your sales and expenses, you can see how your business performs overall. You should track these two things regardless of your industry. After all, they make up the majority of your business’s income. Most small business owners use an accounting software like QuickBooks Online.
This is the easiest way to track sales, expenses, and the COGS of your products or services. QuickBooks Online has a built-in sales and expense tracker. You can use this to enter your daily sales and expenses. You can also add a note to each transaction for a quick explanation of the transaction. This helps you track trends in your business.
Manage your inventory
If you’re selling products, you need to track your inventory, too. This is critical for companies that sell products and need to know their inventory levels. The data from your inventory helps you forecast future sales and make pricing decisions. To do this, you need to track your inventory levels by item.
QuickBooks Online allows you to track inventory by item. You can also track your COGS. This is the amount of money you need to pay for the items in your inventory. QuickBooks allows you to track two different types of inventory:
– Item-based inventory
– Service-based inventory
Invoicing with QuickBooks Online
You can use QuickBooks Online to manage your invoices as well. This helps you create a paperless system that’s easy to track and manage. This is useful for managing your cash flow. You can do this through the QuickBooks Online invoicing system. You can also add customers to a list so you can see your outstanding invoices and send reminder emails.
This is helpful if you sell products or services on the side and don’t want to add it to your main QuickBooks account. QuickBooks Online allows you to create customized invoices based on your company name and logo. You can choose from a variety of invoice templates or create your own. You can also send these invoices to your customers from the software. This is helpful if you have multiple clients or have a large workload.
Small business taxes with QuickBooks Online
Finally, QuickBooks Online helps you track your income and expenses. This is useful for small businesses if you’re selling products or services. It’s also helpful if you’re selling online and want to take advantage of accounting deductions. Using QuickBooks Online to manage your books helps you track your tax deductions.
This is useful if you’re a sole proprietor or run a side business from your home. You can claim expenses such as advertising, utilities, travel, and more. When you use QuickBooks Online, you can see your key metrics at a glance. This helps you understand your business’s performance. You can also track your progress by comparing your metrics from one quarter to the next.
In summary,as a big or small business owner the benefits of using QuickBooks Online can’t be overstated as listed further below:
– Easy to use: A major benefit of QuickBooks Online is that it’s super easy to use. Whether you’re new to using accounting software or an accounting expert, you’ll love using QBO. There are tons of tutorials, guides, and videos to help walk you through the process.
– Goes beyond accounting: Another big benefit of QuickBooks Online is that it goes beyond just accounting. You can use this platform to manage your inventory, track sales, and create estimates. You can also use it to communicate with your employees.
– Comes in several packages: Finally, another key benefit of QuickBooks Online is that it comes in several different packages. You can find the perfect option for your business. Whether you need something for one employee or a few hundred employees, there’s a package for you!
– Establishes accountability: Finally, using QuickBooks Online gives your business an accountability factor. It allows you to keep track of your employees’ hours. You can also track the time spent on projects. This is a huge advantage because it enables you to make informed business decisions that positively impact your company!