QuickBooks has a lot of functionality, a ton. All of this functionality though doesn't necessarily mean it is a time saver for you or your business. The method we are going to organize this for you is by creating the skeleton of QuickBooks. The skeleton is made up of Vendors, consumers, Employees, Company & Banking. All have functions that are vital to the integrity of your company file. If they are not done accurately of course you run the danger of disaster. The challenge though when you attempt to utilize each aspect is that you will start to waste time and very fastly cause great disorganization for yourself risking the correctness of both your Balance Sheet, benefit & Loss, and Cash Flow Statement.
I plan to break this down in a series over the next couple of weeks touching upon every part of the skeleton.
The first function in the top left corner is Vendors. Vendor function with vendor center is mainly used for the sole dedication of the Enter bills and pay bills function.Other functions consist of Purchase Orders, Receive Inventory and the subsequent Enter Bills Against Inventory. The latter I will always suggest be done in another program all together better equipped to handle this. It can be done in QuickBooks but it needs too much work on the user end to keep updated and correct. In the end this function is connected with Accounts Payable because it is money owed to an existing party and is counted as a liability on your balance sheet.
After Vendors arrive Customers ,this is where AccountsCollectivable works or better known as A/R. Most of the functions in Customers are absolutely profitable. The most common mistake I see is that businesses will utilize Create Sales Receipt as a means of creating a Point of Sales. This is all fine and well, I have just never seen this practice done appropriately within any small business environment. The better choice is to buy a proper POS to handle this. Imagine buying the Canyonero that goes real slow with the hammer down, is the only truck endorsed by a clown and is of course 2 lanes wide and 65 tons of American pride? Sure, it will go down the highway but it leaves a wake of destruction in its path.
I have touched upon this function before and I will say it again, outsource your payroll. Once you have outsourced your payroll all that is left of this function is the Employees list where you can view a consolidated area just for employee pay. If you pay an employee as a paycheck make sure their name type is Employee. See what we are doing yet? We are clarify this program so we can work immediate and let other programs do their individual specialized services.
The major function of Company is the Chart of Accounts. Observance a clean and simple Chart of Accounts is well worth the time to stay on top of every month after you close your books. Items & Services are key for consumers as this houses all of the information and presets for creating bills. Again though, Inventory Activities and QuickBooks Easy Saver take control of inventory, stay away, outsource it to a various program.
The functions of banking are all generally utilized whenever I am in a company file. Alt-W is use to Write Checks, Check Register to view banking activity, and the Print Checks function to print bills. Most essentially though, be aware of Reconcile and Record Deposit. These functions, when used inappropriately , lead to the most headaches I see. They must be used and used properly.
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