QuickBooks. What is it used for?

QuickBooks is a digital accounting accounting tool (software) that helps entrepreneurs and companies record, track and manage their transactions. It helps in a lot of ways when it comes to quick decision making and analytical reporting. This is software is developed and managed by a company in the USA called Intuit.

QuickBooks is used by over 75% of small business owners in the US. This shows you how popular the software is. It is rated one of the top accounting software globally. Now, QuickBooks has different editions and versions. Let us briefly look at each and what is unique about them.

Generally, we have QuickBooks online and QuickBooks desktop. By this, we mean that the online version is cloud based while the desktop version is locally installed in a computer. In a lay man’s terms, this means that one needs internet to subscribe to the online version but does not necessarily need internet for the desktop version.

QuickBooks Online

QuickBooks online has five different editions. This is built generally for small businesses and those businesses having multiple locations. In the online version, we have:

QuickBooks Self Employed.

This is that edition of QuickBooks that is built for self employed business owners. This means those who work with their businesses alone. By its nature, it can not produce a balance sheet. Its primary function is tracking income and expenses.

At PEOTEF

QuickBooks Simple Start

This is for those businesses that are small business but have a few employees. It has a little more functions compared to the self employed edition. It is also a little more costly compared to the self employed edition. It is generally for one user and an accountant.

QuickBooks essentials

This is generally for a stable small business. It helps to organize expenses and income, track VAT, manage multiple employees and currencies. It can have up to three users plus the accountant. It is important to note that it is more expensive compared to the previously seen editions.

QuickBooks Plus

This is generally advised for businesses having to deal with inventory, run budgets and track projects and locations. It can have up to five users and the accountant. This edition too can deal with recurring reoccurring transactions

QuickBooks Advanced edition

This is by the far the more expensive, advanced edition of QuickBooks online. It has a lot more functions than all other editions including advanced inventory management, pricing and so on. Those who subscribe to this edition can perform some tasks that only accountant have access to.

QuickBooks Online Accountant

This is simply like advanced edition of QuickBooks. The difference is that it has more accounting functions than any other edition.

In our subsequent write ups, we shall look at the desktop version of QuickBooks and what it offers.

Ngong George Fonyuy (Certified QBO Advisor)