QuickBooks: Setting up your right!

11/27/2021

QuickBooks: Setting up your books right!

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As an owner of a small business, you need financial information and you need a system to help you with it. While a manual system may work — with some jury-rigged Excel spreadsheets, for example — it's just not giving you the information you need to run your business. It can even be somewhat of a hassle. You need a professional solution.

QuickBooks is a great program for businesses. It simplifies the process and provides the necessary financial information.

The accountants and other financial professionals you work with will prefer QuickBooks files to help you manage your business. They make your business simpler to analyze and can greatly reduce accounting fees — another reason for business owners to consider using the program. There are various QuickBooks products, and all are good, but many experts recommend QuickBooks Premier, which has some extra bells and whistles. But in reality, any of the QuickBooks products will give business owners the information needed to run their companies more efficiently.

Setting up your QuickBooks company file

The first step you need to take is setting up the company file. It is very simple and involves step-by-step processes, with a series of questions. Those responses will form the basis of your business's financial future. Start by clicking "File" in the tool bar menu and then select "New Company." A questionnaire will get you started with the set-up. The first time user should use the "detailed start" option. It is a relatively simple process to answer questions such as the company name, tax id number, address, and so on.

Next, you need to select the business's industry. Almost every type of business is shown — pick the most appropriate. After that, you need to identify which type of entity describes your business: sole proprietor, corporation, partnership or other entity. The next question is in what month does your financial operations system start. While most businesses are set up on a calendar year, some are on a fiscal basis. This step is necessary to let QuickBooks know which one applies to your business. For security purposes, the next step asks you to set up passwords to open up your file. You need to keep your financial information private and this is one of the most important places to do so. After following these steps, your program is now ready to set up your database file.

You've taken the first step in modernizing your financial system, which can now grow as quickly as your business does