How Quickbooks Works:
QuickBooks manages finances and bookkeeping. It helps users to add bank accounts and transactions, which QuickBooks automatically categorizes and allow easy tracking of cashflow. It streamlines accounting task with the features like invoice creation, inventory management, and payroll.
How to use Quickbooks:
– Set up Quickbooks by entering basic company information.
– Configure Chart of Accounts, which is a list of all accounts used by a company to classify transactions.
– Record day-to-day financial transactions such as sales, purchases, expenses, and payments.
– Connect QuickBooks to bank accounts for automatic downloading of transactions.
– Create professional invoices and send them to customers.
– Enter and categorize expenses and link them to specific accounts. This helps in monitoring and controlling costs.
– Generates a variety of reports, including profit and loss statements, balance sheets, and cash flow statements.
– Prepare for tax season by generating reports and exporting data to tax preparation software. QuickBooks helps in tracking deductible expenses and simplifying the tax filing process.
