Setting up QuickBooks Online can be daunting for small business owners without an accounting background.
This step-by-step guide promises to clearly walk through the entire QuickBooks Online setup process, from signing up for an account to customizing settings for your business.
You'll learn key things like choosing the right subscription plan, importing historical finances, managing users, connecting bank accounts, building your chart of accounts, and more. Whether you're just starting out or looking to switch from desktop QuickBooks, this article has you covered.
Introduction to Setting Up QuickBooks Online
QuickBooks Online is an accessible cloud-based accounting software designed specifically for small businesses. Going through the initial setup process allows you to customize QuickBooks for your company's unique needs and get the most out of its features. This guide will provide an overview of the key benefits of using QuickBooks Online, what you need to get started, and what to expect during setup.
Understanding QuickBooks Online for Small Businesses
QuickBooks Online is an accounting and financial management software application designed for small business owners without formal accounting training. It enables easy tracking of income, expenses, inventory, sales, and other transactions in real time through the cloud. Being optimized for mobile and remote use makes QuickBooks Online convenient for managing business finances anytime, anywhere.
Key Benefits of QuickBooks Online
Some of the main reasons small businesses choose QuickBooks Online include:
- Accessibility - Can be accessed on desktop and mobile devices with an internet connection from anywhere at any time. No need for extra accounting software.
- Automatic Backups - Data is securely stored and backed up automatically in the cloud. No need to worry about manual local backups.
- Integration - Seamlessly syncs with other business applications like payroll, POS systems, etc. through open API.
- Affordability - Available at a relatively low monthly subscription fee starting at $25/month. Scales up as your business grows.
Preparation Checklist: What You'll Need to Get Started
Before you begin setting up your QuickBooks Online account, make sure you have the following information handy:
- Valid business email address
- Credit/debit card for payment
- Basic company information such as legal name, EIN, business type
- Chart of accounts framework planned out
With these essentials covered, you'll be prepared to start customizing QuickBooks Online to match your business workflow. The initial setup lays the groundwork to fully leverage QuickBooks for simplified financial management.
How do I set up QuickBooks Online?
Setting up QuickBooks Online is straightforward. Simply log into your QuickBooks Online account and go to Settings ⚙ in the top right corner. Then select Account and Settings.
In Account and Settings, you will be walked through each section that needs to be completed to set up your QuickBooks Online account. QuickBooks asks you relevant questions about your business and needs in order to tailor the setup.
Some key things you will configure:
- Your business and industry type
- Chart of accounts
- Banking and credit card connections
- Invoicing and sales tax settings
- User permissions and access
As you proceed through each section, QuickBooks Online automatically saves your information and configures your account based on your responses.
The step-by-step interview process makes it simple to get your QuickBooks Online account ready to use in a short amount of time. And you can always return to Account and Settings later on to modify preferences or add new features as your business grows and evolves.
Where is QuickBooks Online settings?
The Settings panel in QuickBooks Online allows you to configure important company information, users, billing details, and more.
To access Settings:
- Log in to your QuickBooks Online company.
- Click the gear icon in the top right corner.
- Select Accounts and Settings.
This will open the Settings tab where you can:
- Update your company information like name, address, fiscal year, etc.
- Add users and permission levels.
- Manage billing and subscription details.
- Set preferences for reports, invoices, estimates, currency, etc.
Keeping your company details and settings updated ensures you get the most out of QuickBooks Online for your business. As you scale your operations, revisit Settings periodically to tweak configurations.
Let's start with updating basic details like your company name, address, fiscal year, and more in the Company Information section. Accurate information here cascades to reports, transactions, tax documents, and invoices.
How do I set up services in QuickBooks Online?
Setting up services in QuickBooks Online is a straightforward process. Here are the key steps:
- Go to the Products & Services section
- Click the "New" button
- Select "Service" as the type
- Give the service a name and SKU code if needed
When adding a new service item in QuickBooks Online, be sure to provide key details like:
- Name and description
- Billing rate or price
- Account it gets logged under in reports
- If you want the service to be taxable
Entering this information upfront ensures your services are properly set up for invoicing, reporting, and tax compliance needs.
Setting up services correctly the first time saves administrative work later as your business grows. Reach out to an accounting professional if you need help customizing service items for your specific business requirements.
Setting Up QuickBooks for Small Business: Account Creation
How to Sign Up for QuickBooks Online
To create your QuickBooks Online account, simply go to QuickBooks.intuit.com and click on "Try it Free". This will take you to the sign up page. Make sure to choose QuickBooks Online rather than the desktop version.
Choosing the Right QuickBooks Subscription Plan
When signing up, you'll need to select the right subscription plan for your small business. QuickBooks Online offers three main options:
- Simple Start - Best for solopreneurs and very small businesses
- Essentials - Provides features like multi-user access and time tracking that are useful for most small businesses
- Plus - Additional advanced features like custom fields and advanced reporting
For most small businesses, the Essentials plan provides the right balance of features and affordability.
Inputting Basic Business Information
During signup, QuickBooks will prompt you to input key details about your small business, including:
- Legal business name
- Industry type
- Business type (LLC, Sole Proprietorship, etc)
- Contact information
Providing accurate business details will help QuickBooks customize the setup process and offer relevant features.
Establishing Secure Login Credentials
Finally, you'll create a user ID and password that you can use to securely login to your QuickBooks Online account going forward. Be sure to choose a strong password and keep it in a safe place for future reference.
That covers the key steps for signing up and establishing your QuickBooks Online account. With your subscription plan activated and login credentials set up, you'll be ready start using QuickBooks to manage your small business finances.
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Initial Configuration of QuickBooks Online
Cover the remaining essential settings needed to finish configuring QuickBooks Online for first-time use.
Linking Bank and Credit Accounts
Connect your business bank and credit card accounts to QuickBooks Online to automatically import transactions.
- In the left menu, click Banking
- Click Add account
- Select your bank and sign in to securely connect accounts
- Select your business accounts to link to QuickBooks
Linking accounts enables seamless downloads of bank and credit transactions, reducing manual data entry.
Importing Historical Financial Data
(Optional) Import historical transactions from accounting software or bank/credit account downloads to record financial history in QuickBooks Online.
- Click Banking > Import
- Select source of transactions (software, CSV file, etc)
- Map transaction fields from source to QuickBooks Online
- Designate date range of transactions to import
- Validate and post imported transactions
Importing provides accurate financial statements and reporting by reflecting historical business transactions and performance.
Managing Users and Access Permissions
Add staff user accounts and set appropriate access permissions based on roles.
- Click Gear Icon > Manage users > Invite users
- Enter user details and assign role-based permissions
- Users receive email invitations to access accounts
- Manage users and permissions anytime under Advanced > Users
Properly configuring staff accounts enables accurate tracking of changes made in QuickBooks for better accountability.
Tailoring Advanced Settings
Customize QuickBooks Online with advanced preferences for specific business needs around invoices, billing, inventory, multicurrency, and more.
- Click Gear Icon
- Navigate All settings options
- Enable relevant features for business
- Adjust configurations as needed
Tailoring settings streamlines business workflows directly within QuickBooks Online.
Customizing the Chart of Accounts in QuickBooks Online
Tailor QuickBooks Online to suit your specific accounting needs through chart of accounts, items lists, custom fields etc.
How to Set Up Chart of Accounts in QuickBooks Online
When setting up your QuickBooks Online account, one of the first things you'll want to do is customize the chart of accounts. The chart of accounts allows you to categorize income, expenses, assets, liabilities, and equity to track your business finances.
To get started, click the gear icon and select Chart of Accounts from the menu. Here you can add top level accounts like Assets, Liabilities, Equity, Revenue and Expenses. Then create sub-accounts under each category. For example, under Assets you may have accounts for Cash, Accounts Receivable, Inventory etc. Make sure to group similar accounts together.
Take the time upfront to think through your business needs, as this will simplify financial tracking and reporting later on. You can always come back to add or edit accounts as your business evolves.
Building Your Items and Services List
To effectively track sales and collect taxes in QuickBooks Online, you’ll need to set up an Items List. Here you’ll add products and services you sell along with details like description, price, tax code, income account etc.
Navigate to the gear icon > Products and Services to get started. Click New and select Item for products or Service for billable services. Complete all relevant fields for each item, assigning an income account like Sales or Services Revenue to track the money you collect.
As best practice, try to be as specific as possible when creating items. For example, instead of just Shirts, you may have line items for Blue T-shirt, Red T-shirt, Green T-shirt. This will allow you to track inventory quantities and sales by variant.
Integrating Custom Fields for Detailed Tracking
As your business grows in complexity, you may want to track additional details on transactions not included in the default QuickBooks Online setup. Fortunately, QuickBooks allows you to define custom fields to capture this extra data.
For example, you can create a custom field on invoices to store a Purchase Order number submitted by a client. Or add a field on customer records to track contract renewal dates. This helps keep critical information easily accessible in one place within QuickBooks Online.
To add custom fields, go to Settings > Advanced and select the Custom Fields option. Click where you want the field to appear e.g. Customers and fill out a name, type and other relevant options. The field will now be available on that transaction type.
Use custom fields judiciously when the default fields in QuickBooks Online don't fully address your tracking needs. Avoid going overboard as too many custom fields can overcomplicate your financial system.
Implementing Sales Tax Settings
If your business collects sales tax, the tax rates and agencies you charge will vary based on your company's physical location. In QuickBooks Online, you can specify location-specific sales tax details to accurately calculate tax on sales invoices.
Navigate to Settings > Sales Tax to configure rates. Click Add Sales Tax Rate and enter a detailed name e.g. NY State Tax. Choose the Tax Agency e.g. New York State Tax Department and input the appropriate rate percentage and effective tax dates based on your filing requirements. You can add multiple sales tax rates this way.
Now when creating sales transactions in QuickBooks for your company's location, the appropriate sales taxes will calculate automatically. This saves you time while ensuring tax compliance. You can generate sales tax reports as needed for filing periods.
With some careful upfront planning to customize QuickBooks Online to your business needs through the chart of accounts, items list, custom fields and tax rates - you will have a solid accounting foundation in place for financial tracking and scalable growth.
Maximizing Value with QuickBooks Online
QuickBooks Online (QBO) offers a wide range of features beyond basic accounting that businesses should leverage to maximize value. Taking full advantage of QBO's capabilities requires connecting it to other systems and using its built-in tools for planning, analysis and reporting.
Connecting QuickBooks to Third-Party Applications
Integrating QBO with third-party systems streamlines workflows and access to data. Popular connections include:
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POS systems: Send sales data to QBO automatically to efficiently track income and inventory. Top POS integrations include Square, Shopify POS, Vend.
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Ecommerce platforms: Sync orders data with QBO to manage fulfillment and fincances in one place. Shopify, WooCommerce and Etsy integrate with QBO.
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Payroll services: Connect QBO to leading payroll platforms like Gusto, OnPay or ADP to eliminate manual calculation and payments.
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Banking: Download transactions from banks into QBO automatically with direct bank feeds instead of manual import.
With robust API and hundreds of apps on Apps.com, QBO integrates seamlessly with many business systems.
Creating Budgets and Setting Financial Goals
The budgeting tools in QBO help companies plan for growth. Users can:
- Set income and expense targets by month/year.
- Establish key balance sheet account targets.
- Use previous years' data to forecast future budget.
- Track performance vs. budget in custom reports.
With real-time visibility into variances, businesses can course-correct quickly.
Leveraging Reporting and Analytics for Business Insights
QBO offers custom reports and visualizations for data-driven decisions:
- Monitor standard financial statements with cash flow, profit/loss, balance sheet reports.
- Analyze sales by customer, product, region - spot opportunities.
- Compare income and expenses to previous periods.
- Visualize data through charts and graphs.
- Build custom reports with few clicks.
The reporting functionality transforms QBO data into actionable business intelligence for performance improvement.
Exploring QuickBooks Setup Services and Support
Understanding QuickBooks Setup Services
QuickBooks Online offers automated setup options to help you get started quickly. However, businesses with more complex needs may benefit from professional setup assistance.
Dedicated QuickBooks setup services provide customized configuration based on your chart of accounts, inventory, payroll, reporting requirements and more. They can handle the initial heavy lifting to ensure your QuickBooks company file is structured optimally for your operations.
Benefits of professional setup services include:
- Customized chart of accounts based on your business needs
- Advanced feature configuration like class tracking, locations, etc.
- Assistance with data migration from other systems
- Training tailored to your workflow
This upfront investment can save considerable time and avoid roadblocks down the line.
Finding and Choosing a QuickBooks ProAdvisor
QuickBooks recommends utilizing their network of ProAdvisors - certified consultants that undergo training and testing by Intuit.
Here are tips for finding and selecting a ProAdvisor:
- Search the QuickBooks Find-a-ProAdvisor directory and read reviews
- Check credentials like years of experience with QuickBooks product suite
- Understand services offered - setup, cleanup, support, training etc.
- Compare pricing and project timelines
When reaching out, clearly explain your business needs and integration goals so the ProAdvisor can provide an accurate assessment and quote.
Utilizing Online Resources and Communities
For DIY-ers, QuickBooks offers a variety of free learning options:
- QuickBooks Online tutorial and guides on Intuit's website
- Live and recorded webinars
- Online community forums to ask specific questions
Pair these resources with the in-product setup checklist and helpful hints. This allows you to configure Key aspects of QuickBooks Online independently. Consider seeking expert help later on higher complexity setup.
Conclusion: Key Takeaways for Successful QuickBooks Online Implementation
Recap of QuickBooks Online Setup Steps
Setting up QuickBooks Online involves several key steps:
- Sign up for a QuickBooks Online account and choose the right subscription plan for your business needs
- Customize user settings like your business name, industry, time zone, etc.
- Set up your chart of accounts including income, expense, bank, credit card, and asset accounts
- Categorize accounts using classes and locations
- Import historical data or set up opening balances
- Establish workflows for invoicing, bills, payments, reporting and more
Following this process methodically will ensure you implement QuickBooks Online smoothly and efficiently.
Best Practices for Ongoing QuickBooks Management
To keep your QuickBooks file organized as your business grows:
- Regularly reconcile accounts and review reports
- Set up templates for recurring transactions
- Automate syncing with bank/credit accounts
- Control user access levels
- Clean up unused accounts/items/classes
- Backup data securely
Investing a little time each month into QuickBooks Online maintenance goes a long way in supporting accurate financials and insightful reporting.
With the right setup and ongoing care, QuickBooks Online can scale to meet all your small business accounting needs.
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