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How To Manage Your Finances With QuickBooks?

The way you handle your business finances can greatly affect your entrepreneurial success. That is why, in today's business world, using competent accounting software becomes the need of the hour!

By Abhay SharmaPublished 3 years ago Updated 2 years ago 3 min read
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QuickBooks is without a doubt one of the most effective accounting software for managing your company's finances. For its simplicity, ease of use, and affordability, it is currently used by businesses of all sizes. However, a number of business owners might not have yet considered utilising QuickBooks due to their conventional approach, poor financing strategies, and lack of financial guidance.

This on-demand software can help you manage your cash flow by providing both on-premises and cloud-based accounting applications that accept business payments, manage and pay invoices, and handle payroll. In short, you may get a better handle on your income and expenses by adapting to this new way of managing your money.

Quickbooks is the be-all and end-all accounting software programme for small and medium-sized business owners. It's all about organizing the finances, as this accounting software package lets you manage your taxes, bills, invoices, and reports.

Below are certain ways you can use QuickBooks to manage your company’s finances. Have a look!

Bills and Income Automation

By using this tool, you can automate as much of your expenses, income, and savings as possible. All of the bills are set up for automatic payment to either a credit card or a bank account.

You can opt to select a credit card when it is an option as it not only control cash flow in an effective way but also provide options for credit card rewards.

For your personal finances, the combination of automating your bills and income, as well as daily reconciliations, is extremely effective. You'll become more connected with your finances, which means you'll pay more attention and involvement to it.

Cash Flow Management

The ability to monitor cash flow is the biggest benefit of using QuickBooks for personal bookkeeping. You can truly drill down on your cash flow problem by checking the financial data for all of your accounts on a regular basis.

You can do this by tracking not only transactions that have been made to your account but also those transactions that are going to occur. Because certain payments such as “Mortgage and auto loan payments” are typically made once a month, and the amounts rarely oscillate.

Reconciling your accounts manually on a weekly or daily basis is the next step in efficiently controlling your cash flow. In QuickBooks, this process is termed "daily reconciliations."

You can successfully balance your books on a regular basis by clearing transactions through the bank register to the last online daily balance.

Changing the display options in your bank register is the final step. When you double-click on your QuickBooks bank account and open the register, you'll notice a box labelled 'sort by' in the lower-left corner.

If you select 'cleared status' from the drop-down menu, QuickBooks will sort your items by cleared or not cleared.

This will enable you to make daily reconciliations and see not only your current balance but also your future cash balance based on transactions that will post to your account in the future.

QuickBooks for Personal Financial Reporting

QuickBooks help you manage your personal finances by enabling you to have access to its reporting tools. It is another significant benefit of using QuickBooks.

However, you must first reconcile your QuickBooks account to make sure you are using QuickBooks in the most efficient way.

And, this does not only apply to your bank account; it also applies to any loans or credit card accounts you may have.

Basically, any account that contains a statement with a beginning and ending balance, as well as a start and end date, must be reconciled.

A regular profit and loss report is a good way to start with, and you can evaluate this report in many ways, for instance, comparing it with past reports, predicting future reports, etc.

The Bottomline

Using QuickBooks for the above three purposes can get you closer to managing your company's finances more effectively. And, when a company have timely financial statements with quality accounting practices – management can use the data to make much-informed decisions.

Happy Reading!

personal finance
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About the Creator

Abhay Sharma

A soul on a journey...

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