A brief history of Quickbooks
QuickBooks is an accountancy software package that has actually been around since 1983 however it did endure slow growth in its early years however by 2005 it had nearly three-quarters of the US market alone. Many subsequent updates to the package made it more user-friendly and provided more features for those who were using it. It’s ideal for SME’s due to the convenience of its invoicing and payroll features. Users can either install the software on their machines or use a cloud-based service called ‘QuickBooks Online’ which comes at an extra monthly fee.
Speeding up your Cashflow
How Quickbooks can help your business speed up its cash flow and make your life easier? Here are some of the ways in which it can do just that: –
- Improves your timing when it comes to invoicing customers – The software automates the process so that all your recurring invoices will go out at a certain time each day. Human error either through oversight or laziness can mean that invoices aren’t sent out as quickly as they should be straight after a sale, whereas with QuickBooks this needn’t any longer be a concern. You can also produce invoices on the fly on your mobile device, so there is no need to wait till your back in the office before sending your invoices.
- Make it easier for the customer to pay – you can link your PayPal account to your Quickbooks company so that customers can make payment via the email containing your invoice or alternatively you can link to GoCardless, who will manage your direct debit collections for you, which is especially useful if you have repeat customers.
- Communication is key – if you’re going to be invoicing one of your customers ensure they are absolutely crystal clear on the amount. If this is the case, then they will more than likely pay you straight away. You can breakdown your invoices by line item so that there is no misunderstanding on what the invoice comprises of.
QuickBooks also organises your data so that you can easily understand what position your business is in. It automatically will generate a cash flow statement for you to glance over to decide on what the next step should be, for example, you can see how much money the business will have left after all of the outgoing and overheads have been paid. After all, this statement is one of three areas that are investigated in order to determine how healthy a business is alongside both the balance sheet and income statement. After each quarter you should generate a cash flow statement in order to know what the next step should be.
Once you’ve looked at your cash flow statement this will then allow you to make more informed decisions going forward, and the generation of this report is made quick and easy through QuickBooks meaning you don’t have to collate all of the data collected over that quarter yourself and spend even more time presenting it in an understandable way. The software also allows you to track payments and you don’t even need to be at your computer, there is a mobile app that allows you to accept payments whilst you’re on the move should you be on your way to a meeting.
The whole reason why QuickBooks has been so heavily adopted by many small to medium-sized businesses globally is the convenience it provides. The time saved on preparing a cash flow statement on tracking payments and expenses can easily be spent on more important areas of the business, such as sales, marketing or even research and development into new products. Hopefully this article today has given you an insight into how QuickBooks as a software package can help your business when it comes to your cash flow and other areas of accountancy that may concern your business.
If you are interested in finding out how your business could benefit from using Quickbooks, get in contact with our office via the link below and we will be more than happy to explain. We are Quickbooks Platinum Advance Online ProAdvisors , this means we are currently working with more than 50 businesses using the system and have undertaken advanced training with Intuit on the Quickbooks system.