If there is anything synonymous with ‘small business accounting software,’ it is QuickBooks. Since its initial release in 1983, this advanced software has continued to dominate the accounting software marketplace. Its current market share of 56.60% is a symbol of its utility and benefits for accounting professionals worldwide.
In this blog, we will cover everything about QuickBooks software.
What is QuickBooks?
QuickBooks is a full-featured financial management suite that caters to the needs of accounting, payroll, inventory, invoicing, and expense management related to businesses. The feature list is not a complete one of what all this software can do for your business. Highly regarded as the Swiss Army Knife of business financial tools, this software can do just anything related to your business.
QuickBooks is developed and marketed by Intuit. It is available in both desktop versions and an online version accessible via web browsers.
What does QuickBooks accounting software do for businesses?
It is user-friendly accounting software that can help you track and organize business-related financial information by eliminating manual data tasks. Instead, it is known to automate numerous tasks, such as time tracking, invoicing, bookkeeping, sales tax management, bank reconciliation, and inventory management.
History of QuickBooks
QuickBooks was initially released in a DOS version based on the Quicken codebase. The software became popular amongst small business owners who did not need formal accounting training to use it. Because of its features and benefits, it soon claimed to have around eighty-five percent share of the small business accounting software market (Wikipedia).
QuickBooks kept evolving with new features and versions because of a lack of certain accounting features, security control issues, and a mismatch with accounting standards.
Some other facts related to QuickBooks are:
- By 2000, Intuit developed the Basic and Pro versions of QuickBooks.
- Intuit launched QuickBooks Enterprise in 2002 for medium-sized businesses.
- By the end of the third quarter of 2005, QuickBooks had gained 74% of the US market share.
- Intuit announced the release of QuickBooks 2015 with improved features in September 2014.
- Intuit released QuickBooks 2016 in September 2015, and it went on like this every year until September 2020, when QuickBooks 2021 was launched.
- Various versions of QuickBooks are available in different markets.
Features of QuickBooks
Given below are some of the primary features that make QuickBooks the number one accounting software for small businesses:
- Business finance management
- Faster invoicing
- Easier bookkeeping
- Insights of cash flows, profits and losses, and balance sheets
- Easy to integrate add-ons for time-tracking, payment processing, etc.
- Business process automation
- Industry-recognized security safeguards
How Does QuickBooks Work?
Intuit developed QuickBooks with unique features for freelancers, small businesses, and mid-size businesses. Given below is a list of tasks you can do using this advanced software:
- Bill Management – to organize bills in one place, schedule, and make payments right in QuickBooks.
- Bill payments – to simplify bill payments when integrated with Bill Pay from Bill.com.
- Cash flow management – using QuickBooks cash account for business banking and cash flow forecasting for growth planning.
- Professional estimates – to customize estimates based on your brand needs and then convert them into invoices with ease
- Income and expense management – to keep a check on capital inflows and outflows and then to sort transactions into tax categories
- Inventory management – to track products in stock, cost, see what’s popular, manage vendors, and much else.
- Live bookkeeping – to match with a certified bookkeeper.
- Payroll – to automate payroll and tax calculations/filing (both federal and state payroll taxes)
- Time tracking – to clock employee time and billable hours
More About QuickBooks Online
QuickBooks Online is the cloud version of QuickBooks software for bookkeepers, small business owners, and similar target users. It provides easy access to your tax and accounting data from anywhere and anytime. Whether it is about integration with third-party apps, adding HSN/SAC codes, or getting customized accounting reports, QuickBooks Online does it all.
You should know that QuickBooks online is different from hosting your licensed QuickBooks software with the help of a QuickBooks hosting provider. So make sure you know the difference between the two before you select any of them.
What is the Difference Between QuickBooks and Quicken?
Many users feel confused about the differences between QuickBooks and Quicken software. While QuickBooks focused on the accounting side of businesses, Quicken is meant for managing the personal finance of individuals and families.
Another difference between Quicken and QuickBooks is that the former option is only available as local desktop software. At the same time, the latter also offers an online version with its desktop product.
What are QuickBooks Desktop Products?
The following table covers different products or versions of QuickBooks accounting software:
|QuickBooks Desktop for Mac
Which QuickBooks Version is Right For You?
The following table will help you select the right QuickBooks version for your business needs:
|Who You Are?
|Suggested QuickBooks Version
|Solo entrepreneur seeking cloud accounting software
|QuickBooks Self Employed
|Small businesses in need of cloud-accessible accounting
|Small or midsize businesses looking for desktop accounting software
|To enhance the current version of QuickBooks in use
|Small businesses using MacOS
|QuickBooks Desktop Mac
|Small business which has just started
|Businesses with industry-specific needs
|Businesses looking for a flexible financial management solution
Note: The suggestions for QuickBooks versions given above are generic in nature. You are advised to assess your business needs carefully before selecting any QuickBooks product.
Recommended Read: Cost Vs. Benefits of QuickBooks Cloud Hosting
What are QuickBooks Alternatives?
The accounting software industry has grown manifold over the years, resulting in multiple software available in the market for different use cases. Genuine QuickBooks alternatives will make it easier to manage business accounting books, create invoices, send payments, to name a few.
A few popular QuickBooks alternatives include FreshBooks, Sage, and Zoho.
Is QuickBooks difficult to use and learn?
Individuals who know about various accounting concepts find QuickBooks easy to use. However, those who are new to this software and accounting may need a bit of a learning curve to use it.
What percentage of businesses use QuickBooks?
As per a valid source, nearly 64.4% of small businesses use QuickBooks software.
How much does QuickBooks cost?
The cost of QuickBooks depends on the version you buy the license of. In addition, you may have to pay the price of QuickBooks hosting if you switch to its cloud-hosted version.
Is QuickBooks good for a small business?
QuickBooks is the preferred choice of millions of small businesses in the U.S. and caters to diverse needs with its range of products.
Do you need to be an accountant to use QuickBooks?
Other than CPAs and accounting firms, small business owners can also use the basic versions of QuickBooks software.