Are you starting a business? You’re going to find yourself facing a myriad of tasks, from product development to marketing, client acquisition, managing finances, and dealing with various personalities along the way. Among these crucial responsibilities, financial management and tax accounting are fundamental aspects that require careful attention. Setting up QuickBooks financial management software before your first client can prepare you so that you face fewer issues along the way. Here are the reasons why you should enroll with QuickBooks before your first client.
New businesses don’t often have the resources or personnel to manage finances from the beginning. Early on, I was terrible at managing my finances. As my own bookkeeper, I would keep several spreadsheets with different management commission statements and client payments organized in columns I couldn’t stand to look at. I kept all my business expenses in spreadsheets and then would do the taxes with my accountant while stressing over the looming deadlines. While it may seem logical to wait until your business starts generating income before investing in accounting software, using Intuit QuickBooks from the beginning can provide significant advantages you won’t want to miss.
Consider signing up for QuickBooks before acquiring your first client to ensure all your expenses are included from the start; this helps with profits and losses and gives you a sense of what your business earns. Knowing your spending needs and how payments are made will help you with your financial goals. How much you expect to be paid for completed work via accounts receivable versus what going out of accounts payable will help you figure out what you need to do to make more money or when you might experience a shortfall and need to make an injection of capital when you’re first starting out before your cash flow is consistent. With more financial data organization at both of your fingertips, your accountant can then more effectively help you along the way, making your taxes less stressful and time-consuming. The following reasons can help you decide to get set up early.
5 Benefits to Setting up QuickBooks Now
1. Establish Financial Foundations:
One of the foremost advantages of using QuickBooks from the outset is that it establishes solid financial and organizational foundations for your business. By setting up your accounts, expenses, and income categories early on, you’ll be better equipped to track your economic progress and make informed decisions as your business grows. This is the time you can learn the software and learn what your accountant will need from you. The more you know from the beginning, the fewer mistakes you will make in the future. Trust me, those mistakes cost money, so fewer mistakes means more profit you can keep in your business.
2. Streamlined Invoicing:
QuickBooks simplifies the invoicing process, enabling you to easily create customized professional invoices. Setting up your invoice templates beforehand ensures you’re prepared to bill clients promptly once you start landing deals or selling your products or services. This professionalism can leave a lasting impression on your clients, enhancing your business’ credibility.
3. Organization is Key to Efficiency:
Keeping your financial records organized is crucial for any business, regardless of your business size. QuickBooks allows you to maintain immaculate financial records, including invoices, receipts, and expenses. This organization is invaluable for tracking payments, filing taxes, and preparing financial reports. Choosing the best accountant and making sure that the accountant has all the data they need will reduce your overall costs and time spent on taxes in the long run.
4. Efficient Payment Follow-ups:
Prompt payment is essential for maintaining healthy cash flow in your business. With QuickBooks, you can keep track of outstanding invoices and gently remind clients when payments are due. This proactive approach ensures you never forget or lose a payment, helping you maintain a steady financial position. Setting up streamlined billing and payments now can ensure you are getting paid what you earned on time. You’re going to be wearing a lot of hats in the early days of running your business. Leave it to the software to collect past-due invoices and send follow-up notices.
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5. Future Growth Planning:
Using QuickBooks before your first client also gives you the advantage of financial foresight. Generate reports and gain insights into your business’ financial health. This lets you make informed decisions about investments, expansion, or resource allocation. Keeping you thinking strategically can set you on a path for sustainable growth from the very beginning.
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How to Set Up Invoices in QuickBooks
4 steps to setting up invoices in QuickBooks:
- Choose the Right Template: QuickBooks offers various invoice templates. Select one that best represents your brand and business.
- Customize Your Invoices: Personalize your invoice by adding your business name and logo, contact information, and specific terms or conditions.
- Create an Invoice: When it’s time to invoice a client, select the client’s name and choose the products or services provided, and QuickBooks will automatically calculate the total.
- Send an Invoice: You can either print the invoice or email it directly to your client through QuickBooks.
Embracing using QuickBooks accounting software to organize your financials and accounting needs before your first client can give you a significant advantage in managing your business finances. The software as a service helps you establish financial foundations, streamline invoicing, and maintain organization. Getting it all right from the beginning will make everything so much easier for you.
I’m such a fan of shortcuts, even if they cost a bit more than I’m ready to spend. The trade-off is valuable peace of mind and reduced stress that will help you keep your mind on what needs to be done to build your business and move forward. I wish you peace of mind in these early days of starting a business, which is why I share the tips I share. It’s a big step that can feel nerve-wracking, so anywhere the new business owner can take the stress off is a worthwhile investment.
Breathe easy knowing that QuickBooks has it handled, and congratulate yourself for starting off on the right foot as a business owner with your finances in order. Do your best, and remember, it will all work out.
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