QuickBooks Online is one of the best comprehensive bookkeeping and accounting software, making it easier for small business owners to store their financial information. The QuickBooks small business software is packed with fascinating features, like efficient bank integration and bookkeeping services. 

However, if you’re just starting with QuickBooks to organize your finances, it can be difficult to get up to speed on it. At first, you might find it challenging to manage your accounting independently. Consequently, you may wonder how to use QuickBooks for your small business.

This article will give a general overview of the product and top QuickBooks online tips for small businesses. That will make using the software easier, quicker, and more effective. 

QuickBooks for Small Businesses

Starting a small business and handling the necessary accounting operations are not simple tasks. Like several other small business owners, you could have considered handling the accounts manually on your own in the early days of your company. 

Your company’s financial administration can be made easier by utilizing QuickBooks Online. Small business owners typically use this all-in-one automated accounting software. You can use it to access this online platform from any location. You can even download the QuickBooks Small Business App to use all the features available on the website version.

Which Version of QuickBooks is Best for My Business?

A small business new to the world of business will undoubtedly be confused while selecting the ideal version of QuickBooks to suit their needs. 

There are four different versions of QuickBooks Online on the market. These versions are QuickBooks Essentials, QuickBooks Simple Start, QuickBooks Plus, and QuickBooks Advanced. As a small business owner, you can choose a plan based on the users you need. As for the price range, the software starts at $25 and goes up to $180 a month. Consequently, your choice of a better or more comprehensive plan will depend on how many features you require.

Here are the specifics of the various QuickBooks Online versions so you can choose the one that will work best for your company. 

• QuickBooks Online Simple Start: The QuickBooks Online Simple Start version is the most effective and popular. With this plan, you can file your tax return easily and issue invoices regularly.
• QuickBooks Online Essentials: The benefits of QuickBooks Online Essentials include giving access to up to three people simultaneously, assigning billable time and expenses to customers, and tracking bills on time.
• QuickBooks Online Plus: The most effective version of QuickBooks for small retail firms is QuickBooks Online Plus. With this version of QuickBooks, contractors, wholesalers, merchants, and other small businesses can track budgets, inventories, and other tasks. This plan can be used by up to five users simultaneously.
• QuickBooks Online Advanced: This package is primarily for small business owners who desire more in-depth reporting, customized accounting and bookkeeping features, and a personal support manager. This QuickBooks Online Advanced can be accessed by up to 25 users simultaneously. 

The Best QuickBooks Online Tips 

Accounting for small business owners is already simplified by QuickBooks Online. However, using these tips can expedite and simplify the process of balancing the book. Use these tips to make the most of QuickBooks Online’s proven and reliable features.

Use ProAdvisor

The first advice is to use ProAdvisor if you’re a business owner new to QuickBooks. ProAdvisor, a part of the QuickBooks Intuit Package, connects you (depending on where you live) with a local accountant who can assist you in setting up the software. Additionally, they can offer advice on tax obligations, bookkeeping management, business structure, and expense offsetting. 

Use a Strong Password

Although QuickBooks is a highly safe application, the likelihood of a security breach increases when you integrate it with other third-party applications and portals. Online banking and QuickBooks often integrate, and a hacked system could potentially unlock your financial vault. Hence, having a strong password is essential and will spare you a ton of hassles in the future. Click the Change Password option under the Your Account tab to update your password. 

Use Attachments

QuickBooks Online allows you to access the original document when viewing a transaction, which is useful for copies of transactions, bank statements, receipts, and other documents. You can add and store attachments to every transaction using QuickBooks Online, making citing sources easier and more effective. 

Use Keyboard Shortcut

At some point in your life, you’ve probably used a keyboard shortcut to copy, paste, or look up a text on your pc. Keyboard shortcuts specific to QuickBooks Online have been created to make it easy to access frequently used functions and operations. Some of the most popular shortcuts are listed below: 

• To open the accounts chart window, press Ctrl+A.

• To copy a selected part to the clipboard, press the keys Ctrl+C.

• To delete anything, such as an invoice, transaction, or check, press Ctrl+D.

• To edit a transaction in the register, press Ctrl+E.

• To create a new expense, press Ctrl+Alt+X.

• To receive a payment, press Ctrl+Alt+R.

• Ctrl+F will open the find window.

• To create an invoice, press Ctrl+I.

• To open the customer center, press Ctrl+J.

• To bookmark a transaction, press Ctrl+M.

Automate Reports

Most small business owners run at least one report regularly in their business. You can automate creating a report with just a few simple steps rather than going through the tedious process of doing it manually. You can set the frequency of the report’s delivery, its expiration date, an email message to go along with it, and the email addresses of its recipients from the Custom Reports page. The report will be emailed as planned when you’ve saved the modifications.

Create a Payment Link

Both you and your clients will find accepting payments online convenient. Customers will find it simple to pay invoices online, and you won’t need to stress about checks getting misplaced in the mail or wasting time depositing checks and cash at the bank. 

You can easily create a payment link with QuickBooks Online. You must set up payments, generate a unique link, and send it to your clients. Following that, customers can use the link to make a payment by bank transfer or credit card. To create a payment link, go to Sales>Payment Links and follow the instructions. 

Use Transaction Matching

You may occasionally need to enter a transaction into QuickBooks manually. When you submit a check to a vendor, the transaction won’t show up on your bank feeds until the check has been processed and money has been taken out of your account. However, the check payment can be entered in QuickBooks as soon as the check is provided to the vendor, rather than waiting for the transactions to update. The transaction will be added to QuickBooks as soon as it has been approved by your bank and is visible in your live feeds. 

The good news is that matching transactions are flagged by QuickBooks Online, saving you from having duplicate transactions. When a transaction has a potential match, that transaction is noted so that you can click on it, confirm the match, and stop duplicate transactions from posting to your records.

Add Your Business Bank Account

Your financial statements and transactions will update immediately in QuickBooks Online after you add your business bank account; no manual uploading or data entry is needed. Setting up should be simple because QuickBooks supports over 20,000 domestic and foreign banks. 

Don’t end your QuickBooks Online account setup after adding your main bank account. To receive the most accurate picture of your finances, add all your company accounts and gather all your account information in one place. You can add any kind of account, including PayPal and credit cards. Each account can be easily added by using the Banking tab. 

Create Recurring Invoices

By creating recurring invoices in QuickBooks Online, you may save time by not having to manually send invoices to your clients monthly, which works well for subscriptions that have a fixed monthly payment and are the same amount. You can choose to create a recurring invoice by clicking the button under the invoice date. By selecting Sales>Invoices>Create Invoice, a new invoice may be created that will automatically be sent regularly. 

Create Bank Rules

Bank rules can automatically classify transactions in the bank. The rule’s parameters include name, conditions, transaction type assignment, payee, category, and tag additions.

Open Multiple Windows

When using QuickBooks Online, you have the option to arrange your QuickBooks window using the features or settings that are most important to you. The best course of action is to drag and drop each of those features onto the UI, so everything is ready.

Clicking Refresh on your browser may be necessary to update the window so that changes take effect. Furthermore, having the option to open multiple windows makes switching between screens much quicker. It is also a simple approach to comparing different reports or QuickBooks features.

You can open multiple browser windows inside the same business file by duplicating the tab you’re working on and following these two steps.

Create a New Product or Service Item

The two main sales items in QuickBooks Online are products and services. Both symbolize something you offer to customers. To make invoice issuing and purchase processing considerably faster, you should create items for every product or service you offer. Tracking financial data with your product or service will also provide more detailed reports.

You can create a product or service item using one of four types: Non-inventory, Service, Bundle, or Inventory. While inventory enables you to track the exact amount and prices of products on hand, a bundle enables you to package and sell numerous items as a single product or service. QuickBooks Online Plus and Advanced are the only versions that offer bundles and inventory tracking.

Reconcile Your Bank Account Monthly

There are very high chances that a mistake will be made whenever a human enters data into a computer. Thus, you must reconcile your bank accounts regularly to ensure accurate financial data. Ideally, it’s best to do it as soon as you know your bank statement is available.

By balancing your bank accounts, you can ensure that your tax records and financial reports are accurate. When you reconcile your bank statements, you may easily spot errors like inaccurate amounts, duplicate entries, and miscategorized transactions since you’re comparing the transactions you recorded in QuickBooks Online to those that appear on your bank statements. If you integrate your online bank accounts to QuickBooks Online and carry out consistent maintenance throughout the month, you can complete the procedure quickly. 

Set Up Late Invoice Reminders

Don’t go after clients who haven’t paid their bills. Send reminders for late invoices by using QBO’s automation instead. By avoiding sending out reminders manually, you will save time, and these automated reminders may also hasten the payment process. 

Set Up Recurring Transactions

Recurring transactions can save you time and function as a reminder for upcoming transactions. By creating recurring transactions, you can automate the process so that you don’t have to enter every transaction that takes place repeatedly and manually. Rent payments, bill payments, and purchase orders from suppliers are a few examples of these transactions. 

With QuickBooks Online Essentials or QuickBooks Online Plus, you can create recurring transactions by following these steps: 

1. On the screen’s upper right, click the Gear icon.
2. Select Recurring Transactions under Lists. Then click on New.
3. Choose the desired transaction type, then click OK.
4. Choose a template name.
5. Pick one of the following: scheduled, unscheduled, or reminder.
6. Enter the required information.
7. Save the template.

By selecting Make Recurring from the invoice window’s bottom menu, you can create recurring invoices. 

1. Click Create Invoice next to a customer’s name to start creating an invoice for them. The window for the invoice will display.
2. Fill out the invoice form.
3. Click the Make Recurring option. You also have the choice to send emails automatically or print the invoice at a later time. 
4. Then select Save Template. The invoice will be generated and sent automatically on the designated date.

Use Gmail to Send Invoices

To conduct online service sales or transactions that don’t require physical invoicing, you must keep track of transactions by integrating your email account into your QuickBooks account and sending your invoices directly to your customer. When applicable, you can choose to email clients your reports. 

Install the Gmail add-on, then launch Gmail by clicking the QuickBooks icon. Next, you can create, send, and track invoices by logging into your QuickBooks account. 

Customize the Layout

The user interface of QuickBooks’ most recent versions has improved and is now more customizable. But all you have to do is go to Edit>Preferences>Desktop View if you’re used to using an older version and want to replicate that layout or just want to make some modifications. 

Enable Class and Location Tracking

Classes represent many areas of your company, such as departments or product lines. You can use classes to understand better the revenue, profitability, and expenses involved with each area of your business. You can assign classes to transactions once the feature is activated. Here’s how to activate location and class tracking: 

1. Go to Settings on your Dashboard and choose Account and Settings.
2. Select Advanced, and then you click on the Categories section to edit.
3. Verify the Track classes.
4. Select Warn me if a transaction doesn’t have a class. Although this is optional, it is a good idea to enable it so that you can verify that everything has been categorized when you review reports.
5. Depending on your preference, choose One for the entire transaction or One for each row in the transaction under Assign classes.
6. Verify Track locations.
7. Click Save, then click Done. 

By doing this, you can add class and location fields or columns to your forms and assign them to different transactions. After transactions have been assigned, several reports can be printed separately for each class or location. 

Make Online Payment

You can accept payments directly from clients using QuickBooks Online while minimizing costs. All you have to do is set up your account information so that clients may use QuickBooks to make direct deposits into your bank account. A transaction fee of about 50 cents is imposed on you, which is considerably less than what is charged by several alternative platforms.

You can also use QuickBooks Online to make payments to vendors. And you can also set up recurring bill payments. Setting up recurring bill payments will help you save even more time. Go to New>Vendors>Pay Bills to access this feature. 

Wrapping Up

QuickBooks Online is one of the most effective and user-friendly automated accounting software. However, getting the most out of this software entirely hinges on how well you can efficiently understand the tips and tricks of using QuickBooks Online.

You can try your hand at QuickBooks Online and become an expert with just a little practice and patience. If you’re using the desktop version of QuickBooks Online, you can open a sample file and get acquainted with it. Using the QuickBooks Online demo to learn and practice is a fantastic way to become an expert without tampering with your company’s data.