This is a software developed for small and medium-sized business houses to cater to all their accounting needs including inventories, payroll and management of bills. This software is also used to update job status, create reports, manage vendors etc. there are a few add-on functions designed to enhance output.
Types of QuickBooks Accounts
Balance sheet and income/expenditure are the major two types of quickbooks accounts.
1. Balance sheet Account includes all bank related accounts, fixed and current assets whose value depreciate with the passage of time. Equities, credit cards, long-term and account payables/receivables also form a part of this group.
2. Income and Expenditure Accounts track the source income and its expenditure. It includes money coming into the organization from the main and other sources, expenses, taxes and costing of goods and other equipment.
Benefits of Using Quickbooks
· It removes the hassle of signing innumerable cheques for business requirements. The signatory can scan and upload their signatures to facilitate signing cheques.
· Quickbooks help customize the company’s inventory list as well as the company logo. This feature also gives a number of templates which help business owners to prepare spreadsheets, charts and business plans.
· Business houses integrate the data on this software to other tools like Microsoft Office to facilitate further usage. This also helps filing income tax easy.
· This software is user friendly. An inexperienced or a novice to accounts or financial knowledge can easily understand to use it.
Limitations of Using Quickbooks
· This is not a budget friendly option for small and medium scale companies. With the advancement of cloud computing technology, this feature costs more because cloud provides a consolidated and cost-effective platform for all computing needs.
· Users have to upgrade this feature to access and make use of Cloud. This means additional costs in up-gradation and tweaking the software, which results in slightly reduced performance.
· This feature is best for small companies with a limited number of users. With the increase in the number of employees, it become slightly difficult to find space and use this software. To create some space one must know how to make multiple vendors inactive in QuickBooks accounts.
· Everything on this software, from transaction history to vendor details has to be manually compiled, uploaded and integrated. This means a lot of time is wasted in configuring this data which could have been otherwise used for some other work.
One can easily archive an account in QuickBooks because there is no way to permanently delete them. Since, it is practically impossible to hide all the details from other employees who have an access to this feature. Additionally, it might be difficult to adhere to compliance norms in terms of data security. One needs to know how to inactive quickbooks accounts.