Mastering QuickBooks: A Beginner's Guide to the Top 3 Things Every User Should Know

Most people feel overwhelmed when they first launch Quickbooks Online as a non-accountant. I get it, I've been there too. That's why I wanted to put together this short video on the things that you should focus on as a new user to ensure you have a good idea of how your business is doing.

QuickBooks can be a powerful tool, but like any new tool, it takes a bit of getting used to. Let's focus on the three key features that will give you the biggest bang for your buck when you're just starting out.

#1 - Connect Your Bank Accounts and Credit Cards

Remember the days of manually entering every transaction? One of the most time-saving steps in using QuickBooks is connecting your bank and credit card accounts. Here's what this nifty feature allows you to do:

• Track your income and expenses: Keep a detailed record of your business's financial activity without lifting a finger.

• Categorize transactions: With a few clicks, you can assign categories to transactions for accurate reporting. Pro tip: Set up rules for automatic categorization to save even more time.

• Reconcile accounts: Ensure that your account balances match your QuickBooks records.

#2 - Run the Balance Sheet Report

Think of the balance sheet as your business's financial health check-up. It provides a snapshot of your assets, liabilities, and equity at a specific point in time. But why should you care? Here's why:

• Assess your financial position: Are you solvent? Do you have enough assets to cover your debts? The balance sheet will tell you.

• Identify trends: By comparing balance sheet periods over time, you can spot changes in your financial position. Are your assets growing? Is your debt decreasing? These trends can help to guide your business decisions.

• Make informed decisions: Need to decide whether to invest in new equipment or take out a loan? Your balance sheet will be your best friend in these situations.

#3 - Run the Profit and Loss Statement Report

If the balance sheet is a health check-up, think of the profit and loss statement (P&L) as your business's report card. It shows your income and expenses over a specific period, giving you crucial insights into your profitability. Here's what you can do with this powerful report:

• Calculate your net income: Are you actually making money? The P&L will give you the bottom line.

• Identify areas for improvement: Maybe you'll discover that your office supplies costs are through the roof, or that one product line is significantly more profitable than others.

• Make informed decisions: Use the P&L to guide decisions about pricing, cost-cutting, or investing in growth.

Now that you're familiar with these key features, why not open up QuickBooks and give them a try? Start by connecting one of your accounts and see how easy it is to track your finances! You might be surprised at how quickly you can gain insights into your business's financial health.

Want to try before you buy? Here's a demo environment for you to play in and follow along with the video below:

As you become more comfortable with these basic features, you'll naturally start exploring more advanced tools. And before you know it, you'll be managing your finances like a pro!

Did you find this guide helpful? Have any questions about getting started with QuickBooks? Drop a comment below or check out our other QuickBooks tutorials to take your skills to the next level. Happy bookkeeping!