How to use Intuit QuickBooks in Canada
QuickBooks is an expense management and accounting solution offered by Intuit. QuickBooks services are used by millions of subscribers in North America each year. This tool is primarily designed for small and medium-sized businesses (SMBs). The main goal of the service is to simplify bookkeeping and daily management of your company’s accounting and finances.
To subscribe to QuickBooks, you’ll need to choose one of the four packages that suits you best. After that, you simply record your sales and expenses on the site as you go along. Even without accounting knowledge, users can easily track their sales and expenses as well as consult various financial reports.
Easy to set up
In the beginning, you’ll need to fill in the required information in the Settings section, including basic details such as the company’s contact information, type of business, legal structure, and tax information.
Then, you can connect your business bank accounts and create records of your customers and suppliers. These records are saved, so there is no need to re-enter the information each time.
Intuitive dashboard
QuickBooks displays information on an easy-to-understand dashboard. From here, you will find:
The left section of the screen includes the most popular links, for example: entering a new expense or invoice to be paid, taxes, vehicle mileage, etc.
The layout of the dashboard is user-friendly and allows for a quick overview of your company’s financial situation. The “Privacy” button, at the top right of your screen, allows you to quickly hide your company’s private information if you are in a public place.
Easy to connect your bank accounts
You can add as many bank accounts as you want, including your business credit cards. The information is saved securely so you can easily get an overview of your financial situation. Only the accounts used for business expenses should be linked.
Also, note that it is possible to upload your financial operations using an Excel file.
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Simplified expense management
QuickBooks allows you to easily enter your supplier invoices and saves their information as well as the payment terms associated with each of them. As soon as you tell QuickBooks that a payment has been made, the software matches it with your bank transactions. This simplifies the bank reconciliation process and allows you to have an accurate picture of your finances. If it is an invoice to be paid, QuickBooks will send you a reminder when the invoice is due.
Automatically tracks customer invoices
Tracking your customer’s invoices with QuickBooks is simple. Select the “Sales” tab and then “Customers,” and a list of your customers will automatically appear along with the balances for each of them. QuickBooks also indicates unpaid invoices and unbilled activities. You can ask QuickBooks to send a reminder email to late-paying customers.
Detailed Reports & summary reports
With the Plus version of QuickBooks, you can generate about sixty different reports, while the Easy Start Package includes more than twenty. There are summary and detailed reports according to your preference. Summary reports present the information to give you an overview with key indicators to monitor.
Sales & income tax
QuickBooks calculates the amounts due for you, such as employer withholdings and federal and provincial taxes. This information appears on the dashboard and is updated as you go.
It’s easy to set up your sales tax needs. Simply answer basic questions about your obligations and indicate your province of residence. QuickBooks then takes care of tracking and notifying you when it’s time to make your return.
Inventory management
If you opt for the “Plus” or “Advanced” packages, you will have access to the “Inventory” module. This is an essential service if you have to manage a significant physical inventory. The software will track your cost of goods sold and available stocks for you.
If a particular product drops in stock, the software can send you alerts according to the notification terms you have defined. It is also possible to synchronize QuickBooks with online sales platforms, such as Amazon, to make your inventory tracking even more efficient.
Invite your accountant!
From QuickBooks, you can give your accountant access to your books! They can view your transactions and use that information to advise you or answer your questions more easily. This option will make end-of-year work easier for your accountant, such as closing the books and preparing tax statements. Given the popularity of QuickBooks, most accountants are very familiar with the software, which reduces the risk of errors.
If you do not yet have an accountant, QuickBooks has a search tool to find a professional in your area.
This article is the shortened version of an article originally published on Hardbacon.ca by Rachid Fouadi under the title "The Ultimate Guide to Intuit QuickBooks Accounting Software for Canadians".