When it comes to accounting systems the vast majority of bookkeepers, accountants, and clients utilize the QuickBooks desktop version to manage their financial records. It is an Intuit developed accounting software that has been on the market since 1994. It is established, trusted and does everything that most small businesses need it to: print invoices, pay bills, track accounts receivable and payables and provides adequate reports to track financial activity. It also has integrated payroll options which make it a one-stop-shop for all your accounting needs. In addition to satisfying the basic accounting needs there is a large amount of support not only through training and help functions, but there are countless blogs dedicated to answering any and all questions you may have about operating QuickBooks.
QuickBooks is compatible with both Microsoft Windows as well as Apple operating systems. Clients feel the use of QuickBooks is secure having it on their desktop computer away from the internet and possible security risks. QuickBooks can also accept credit card payments which is important for many business owners. Overall, QuickBooks is the standard, affordable option that business owners are still turning to for their bookkeeping needs. When it comes time to prepare taxes our clients simply make a back up copy of their file and upload it to our online portal. We have all of their accounting records in a workable format helping them reduce tax preparation fees as well as providing transparency for all information we need for the tax return. Once we make adjustments to the file we can send the client adjusting journal entries which are entered and the year is closed. This is how the process is designed to function.
The reality and limitation of QuickBooks is that to operate it properly the user must possess basic to advanced accounting knowledge. As we mentioned in the previous post “Business owners start their businesses to pursue their passion,” setting up and maintaining an accurate QuickBooks file can be overwhelming without an accounting and bookkeeping background. In addition adjustments that tax professionals make to copies of QuickBooks files are not automatically updated in the client’s file causing changes to be lost or entered incorrectly. The margin for error increases when the process is not in real time. Combining the accounting knowledge needed as well as timing limitations of desktop software there is still one more factor to consider. In the mobile environment we live in who wants to be tied down to their desktop to process all their business activity? Small business owners need intuitive, accessible and responsive software that adapts to their business and tax needs. In next week’s blog we will discuss the future for small business owners: cloud accounting.