Companies use accounting software like QuickBooks to record and analyze financial transactions, including payments, receipts, and deposits. However, did you know that individuals can use QuickBooks for their own purposes? In the same way that software helps businesses organize their accounts, you can also use QuickBooks online to keep track of your own personal finances as well. This article serves as a guide on how to use QuickBooks payroll as an entity or for personal use. Why not read further to follow this guideline?
What Is Quickbooks?
The accounting department can save time and effort with the use of QuickBooks Payroll, a service application used to conduct payroll. The process also includes deducting federal and state payroll taxes from employees’ paychecks. Herein, “payroll” refers to either an organization’s financial records pertaining to its employees or the issuance of paychecks to those employees. QuickBooks also allows you to organize your personal money by setting budgets, recording and organizing purchases, and paying bills, among other things.
Types of QuickBooks Payroll
You can use either of the two versions of QuickBooks Online Payroll:
#1. Standard Payroll
For companies with 30 to 50 workers, this payroll app was developed specifically. Human resources and benefits are not bundled together. This might not be a big deal if your company only has a handful of workers.
#2. Advanced Payroll
Those whose work involves “payroll” on behalf of different clients can benefit from using this program, which has been developed specifically for professional accountants and payroll experts within organizations.
How Does QuickBooks Payroll Work?
To begin, open QuickBooks and navigate to the Payroll menu. Then, you must have up-to-date information regarding your business and your employees, such as their full names, birth dates, and contact details.
You’ll need a copy of the employee’s pay stub to make the change from Standard to Advanced payroll, or vice versa. In addition, you’ll need your new hires’ tax and NI(National Insurance) information.
Features of QuickBooks Payroll
Here are some of QuickBooks Payroll’s features:
#1. Payroll Deposits Sent Directly to Workers
Free direct deposit is included in all three service tiers (Basic, Premium, and Elite Payrolls). Employers will have an easier time paying workers who are already logged into the system.
#2. Payroll Runs are Unlimited
Unlimited payroll cycles are available with QuickBooks Online. Even if users need to conduct payroll more than once, they will not incur any additional fees with QuickBooks Online Payroll.
#3. Calculation and Filing of Taxes Automatically
Using QuickBooks Online Payroll, you can quickly locate and handle both tax forms and tax deposits.
#4. Automated Payroll System
Employees may process payroll using this tool without having to manually enter any data. This can only be done prior to running payroll. The ability to include payroll bonuses and other forms of remuneration is another useful function.
#5. Workforce of QuickBooks
Employees may access their most up-to-date tax data, annual earnings, vacation time, pay stubs, W-2 forms, and more with QuickBooks Payroll.
How to Use Quickbooks Online
Have you been thinking about how to use Quickbooks online? You can use it by following the following steps:
#1. Get Familiar with Your Dashboard
The QuickBooks dashboard can be set to either a business view or an accountant view, depending on your needs. The business perspective is more appropriate for business owners and managers, while the accountant perspective will rely on accounting-specific terminology and procedures. You may switch between the two by selecting the gear icon in the upper right corner and selecting the appropriate option. As part of the setup process, you’ll also need to add users. The principal user should be the “primary admin,” but additional admins and normal users (with varying permissions) can be added.
#2. Enter Your Company’s Information
To access your company settings, click the gear icon in the upper right corner of your dashboard, then click “Account and Settings.” This will take you to a page where you may update your company’s name, logo, contact information, and physical address (for both legal purposes and to better serve your customers).
#3. Pick Your Preferred Method of Handling Finances
In this section of QuickBooks Online, you can modify your sales, spending, and advanced settings to better suit your business needs. For more accurate reporting, be sure to refresh data such as credit card transactions, automated invoicing, VAT information, and the company’s fiscal year-end.
#4. Import Business Data
To import an existing spreadsheet of data into QuickBooks, click the gear icon for settings and then “Import Data.” Customers, vendors, products, services, invoices, receipts, bills, credits, and organizational structures can all be imported through the file. MS Excel and CSV files, among others, are supported.
#5. Make Your Own Personalized Chart of Accounts
When creating financial statements for your business, QuickBooks uses a system called a “Chart of Accounts” to classify financial transactions. Income, expenditures, assets, liabilities, and equity are the five default sections of QuickBooks Online. Although most users will be fine with the predefined categories, you may wish to change them to better fit your business. You may decide to rename the categories, or you may realize you need a new category that isn’t represented by the ones already provided.
Simply navigate to the ‘Accounting’ section of the dashboard and select the ‘Chart of Accounts’ button to get started. Then, under “Account Type,” choose either “Expense” or “Other Expense.” In the ‘Detail Type’ drop-down menu, select the one that best fits your new spending category’s name and details.
Do you want to know how to export your QuickBooks Online Chart of Accounts? The ‘Run Report’ option is accessible from the Chart of Accounts screen. You can also choose between printing, emailing, exporting, and adjusting the parameters. Select the one you need, and you can save the information as a PDF or Excel spreadsheet.
#6. Connect Your Bank Cards
Adding payment methods like credit cards, debit cards, and bank information is an integral part of any accounting software. The steps to adding your bank account are as follows: Go to “Settings,” “Account and Settings,” “Bill Pay,” and “Bank Accounts.”
#7. Link Your Accounting and Payroll Software
Even though it has its own payroll software, QuickBooks Accounting also allows for interfaces with other services.
#8. Get More People to Utilize It
Want to share the load on your account and let other people pitch in? You may provide everyone, from your sales manager to your bookkeeper, with access to QuickBooks for your small business. Each user’s permissions can also be tailored to their individual needs, but the total number of users is capped by your subscription; if you’re hitting that limit, it might be time to consider a paid plan upgrade.
The ‘Settings’ and ‘Manage Users’ tabs on your dashboard are where you’ll want to go to add new users. Select “Add user” and then the appropriate user category. You have the option of:
- Primary admin: The primary QuickBooks user who can access all features. This is the account’s creator by default.
- Company admin: This user has the same permissions as the principal administrator, with the exception of changing or adding administrators.
- Standard user: Standard users can have varying degrees of access, giving them the ability to work with things like expenses, sales, and suppliers. Note that the QuickBooks Online app does not yet allow this type of user, although they may still create users, enter timesheet data, manage subscriptions, and edit company information.
- User reports: The Audit log report detailing your paycheck is unavailable to this user type, but all other reports are available in QuickBooks Online Plus.
- Time tracking only user: Those who need to track their time but shouldn’t have access to reports can be added as “time tracking only” users.
#9. Add Integrations
Integrations with other services used in the business should be implemented as well. Sales, compliance, marketing, and cash flow forecasting are just some of the many areas that can be streamlined with QuickBooks’ many available connectors. Check out the QuickBooks App Store for useful add-ons.
#10. Determine Your Tax Requirements
Everyone has to face tax season at some point, and your company should be ready for it well in advance. Determine the federal, state, and local tax filing dates that are important for your business. To help you through this procedure, QuickBooks Payroll includes federal and state ID number-required tax reporting features.
#11. Reconcile Regularly
You can save time and effort by using QuickBooks Online, but only if you keep it up to date. QuickBooks suggests doing this once each month to ensure that your books are always in sync with your financial statements. Float’s integration with QuickBooks Online means that your cash flow forecast is always up-to-date, and regular reconciliation guarantees that this is the case.
Doing a quick account reconciliation once a day, week, or month can prevent a lot of trouble down the road. Here’s what you need to do:
- Choose ‘Reconcile’ from the main menu’s gear menu.
- Pick the account you wish to check the balance of.
- Input the statement’s final balance and closing date.
- When you select “Start Reconciling,” your transactions for the chosen time frame will be retrieved.
- Verify the accuracy of QuickBooks by comparing it to your bank statement.
- Check the appropriate boxes in QuickBooks.
- If there is no disparity between the two amounts, then the trades are in sync.
- Verify that the total number of exchanges is consistent between the two data sets if there is a discrepancy. You can manually enter missing transactions into QuickBooks.
- If the incorrect date was entered for a transaction, you may easily update it by clicking on the date and selecting the one that corresponds to your bank statement.
- If nothing of those works, double-check the totals in QuickBooks to see if they add up.
- Click the ‘Finish Now’ button.
How to Use Quickbooks for Personal Finance
Follow this guide on how to use Quickbooks for your personal finance:
#1. Get Your Hands on Quickbooks Online by Making a Purchase
If you want to buy and use QuickBooks Online, you can do so by going to the QuickBooks website, choosing a subscription plan, buying it, and then logging in.
#2. Establish a Link Between Your Financial Institutions
The moment you sign in. You can link your bank account by going to the Banking section of the dashboard and clicking the “Link Account” button. When you do, go ahead and input your username and password. QuickBooks may get transactions from your bank account by connecting to it in a safe way.
#3. Sort Your Transactions Into Categories
Many of your transactions will be categorized for you by QuickBooks, but you may need to do it manually for others. You need to properly label your financial dealings. Maintain accurate records by frequently reviewing and classifying your transactions.
#4. Prepare a Spending Plan
Creating a budget in QuickBooks improves your ability to monitor your spending, focus your financial efforts, plan for the future, and deal with debt more efficiently. Using QuickBooks’ real-time updates and individualized reports, you may receive a comprehensive picture of your financial situation that can help you make better decisions and identify areas where you can cut costs.
How to Create a Budget
- The ‘Gear’ icon in the top right corner of your dashboard will take you to the ‘Settings’ menu. Go to the “Tools” menu and pick “Budgeting.”
- Select the “Create a budget” link on the Budgeting page. To begin customizing your financial plan, please click here to go to the next page.
- Name your budget, choose the fiscal year, and set the budget period (monthly, quarterly, or annually). You have the option of using last year’s figures to jumpstart your budget planning.
- Following the completion of the budget setup process, you will be shown a comprehensive table outlining your budget across different types of income and expenses.
- Budgeted amounts for each period should be entered in the appropriate cells of this table. Seasonal fluctuations that may affect your income or expenses should be included as well as any other expected variations throughout the year.
- Put in your numbers, and then hit “Save and close” at the page’s end. Your financial plan is now safe with QuickBooks.
- Your budget is now easily accessible at any moment in the ‘Budgeting’ sub-section of ‘Settings.’ Your budget can be copied or modified here.
#5. Keep Tabs on Your Money
Although QuickBooks is most commonly associated with small business accounting, it is also a powerful tool for managing one’s own personal finances. It’s useful for keeping tabs on cash flow, organizing purchases into categories, making plans for the future, and analyzing past performance.
#6. Keep Tabs on Your Debt
Managing your debts with the help of QuickBooks can be a useful instrument. Get your loans and credit cards set up in QuickBooks and do a monthly balance reconciliation. Set up and record transactions for your obligations in QuickBooks Online for personal finance management of loans and credit cards. With this system in place, you’ll always know exactly where you stand financially and be able to plan accordingly.
#7. Generate and Run Reports
QuickBooks is capable of producing in-depth financial reports that can shed light on your financial situation. The sections labeled “Income by Customer Summary,” “Expenses by Vendor Summary,” and “Profit and Loss” let you keep tabs on your revenue, expenses, and profits, respectively.
This reporting is made possible by:
- Click the ‘Reports’ button on the main screen.
- Select the report you’re interested in, then adjust the parameters to your liking.
- Get a full grasp of your financial condition with the help of these reports. Finding out where you can and should spend money is the first step in increasing either your income or decreasing your spending.
You may also get a fuller picture of your financial situation by looking at supplementary documents such as a cash flow statement, tax summary, and balance sheet. Keep tabs on your progress, spot patterns, and make educated financial decisions with the help of these reports.
#8. Use Your Accountant as a Resource
QuickBooks makes it easy to share financial data with a CPA or financial advisor, streamlining your team’s workflow. Share your QuickBooks file with your accountant so they may evaluate your finances, offer advice, and pull reports.
Setting up QuickBooks for Personal Use
Create a new company file in QuickBooks to organize your business’s money. By taking this step, you may keep your corporate finances separate from your personal ones:
- Manually Enter an Income or Expense
- Launch QuickBooks Online and locate the ‘Create’ (+) button.
- Choose either “Sales Receipt” or “Deposit” as the source of funds.
- Choose “Expense” if you need to record some outlays.
- Indicate your income source and any other relevant information.
- Expense payee, account number, date paid, and total
- Click on the appropriate tab under “Category Details”
- Choose “Save and close.”
Pros of Using QuickBooks
The following are the advantages of using Quickbooks:
#1. Lessen Your Workload
Configuring QuickBooks Payroll software eliminates the need to keep track of when your paycheck is due. In the meantime, it will alert you when your next paycheck is due. All you have to do is follow the on-screen prompts. More than that, it’s a boon to job pricing.
#2. Payroll Tax Preparation
Planning for payroll taxes requires personal responsibility. Mistakes are common, and it’s simple to miss deadlines or make a mistake when paying taxes, doing the math, or entering data. However, if you use QuickBooks for your payroll processing, you won’t make that error.
Here are the three payroll tax assistance tiers offered by QuickBooks Payroll to help you deal with these issues:
- Basic Version: You must use Intuit’s instructions to complete your tax paperwork.
- Enhanced Version: Payroll State and Federal forms will be filled mechanically in the improved edition of QuickBooks.
- Full Service: Automatic returns, tax calculations, and payments are all part of the Full service.
#3. Keep Track of Employee’s Information
QuickBooks makes it simple to keep track of and report on employee data as required by law and the IRS. Therefore, fewer people are needed to carry out such administrative tasks.
#4. Assign Employee Payrolls to Jobs
Payrolls can be readily allocated to certain projects. The process of creating task cost reports is also simplified by the program. QB Payroll can keep track of all the information related to the job. The money will be deposited into the employees’ bank accounts electronically.
#5. Supervision of Employees
Managing your workforce is easier after establishing QuickBooks Payroll. In order for the software to simplify many tasks, however, accurate input is required.
Is QuickBooks Similar to Excel?
Excel is not a suitable substitute for QuickBooks because the two programs are designed to do different things. QuickBooks is accounting software used to keep track of monetary transactions, while Excel is a spreadsheet tool used for data analysis.
Is Quickbooks Easy to Use for Beginners?
Sure, even a complete newbie can use QuickBooks. QuickBooks’ learning curve is steeper than it initially appears.
How Do I Record My Personal Finances in Quickbooks?
You have the option of linking a bank account or entering your income and expenditures manually. The ‘Sales Receipt’ or ‘Deposit’ function should be used for income, and the ‘Expense’ function should be used for expenditures when entering data manually. When you connect QuickBooks to your bank account, it will immediately begin downloading and organizing your transactions.
Can I Use a Remote Connection to Get to My QuickBooks Financial Information?
Using QuickBooks Online, your financial information is always just a web browser away. Your financial information is accessible 24/7 via any device with an internet connection.
Can I Manage My Debt With QuickBooks?
You can keep tabs on your financial obligations by creating liability accounts in QuickBooks for your various bills. To better manage your debts, you can keep track of payments and interest charges by recording these activities.
Final Thoughts
Knowing how to use your QuickBooks is not a hard task, all you just need to do is to follow this guide. I do hope this article was helpful.
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