The COVID-19 pandemic has altered the makeup of the U.S. workforce. Many newly-unemployed individuals have taken on side gigs to supplement their existing financial resources. If you are one of these people, or if you have recently taken on a contracting job because you wanted to, you may be looking for the best way to make and manage invoices.

How QuickBooks Helps

The desktop version of QuickBooks is the best software solution for this critical chore. It is easy to use, even if you do not know much about accounting. It lets you customize your invoices so you present yourself in a professional, personalized way. It helps you accept payment for your work and keep track of who has paid you and who still owes you.

Build Customer Records

Although you can enter these details as you go along, it is smart to build records for your customers and the products and/or services you sell upfront. QuickBooks Desktop provides pre-built forms for your contacts and your sales items. You just fill in the blank fields provided by choosing from drop-down lists (item type, account, etc.) and entering your own data (like item description and price). If you sell services, you can fill out forms to track the hours you worked.

Templates for Invoices

QuickBooks Desktop comes equipped with pre-designed invoice templates. These work similarly to record forms. You select a customer from the list of records you built, then complete other fields for things like date and payment terms. Once you select the item you are selling, QuickBooks Desktop completes the rest of the fields in the row (description and price). You just enter the quantity sold, and the software calculates the price. If you have sold multiple items or services, you can complete additional rows until you are done. QuickBooks Desktop computes the final price, and you can print your invoice or send it through email.

Accept Payments

You have a lot of control over how your invoices look. You can add your logo, for example, and select colors and fonts. You can even change the content of the form’s layout by removing or renaming columns. QuickBooks Desktop offers the same tools for estimates. And if you sign up for the company’s add-on service, you can accept payments from customers by credit card or bank transfer. When you need to see the status of your invoices, you can open a special page that shows you just that (open, overdue, etc.) at a glance. And you can run a variety of reports.

QuickBooks Online vs. quickbooks desktop

If you would rather be able to access your invoice information online, or even from a mobile device, you can do so by subscribing to QuickBooks Online. The site has its own state-of-the-art look and tools, but you can create records and transactions much like you do in the desktop version. Both QuickBooks Desktop and QuickBooks Online go well beyond invoices. As your business grows, you can explore the other ways they help track small business income and expenses.

We have helped numerous independent contractors install and learn how to use QuickBooks Desktop and QuickBooks Online, and we would be happy to do the same for you. Contact us to schedule a consultation, and we will start you on the road to successful invoicing. If you’d like to learn more about QuickBooks and other accounting topics, view our client accounting services blog.

New software is intimidating. New software that you will use to track your company’s finances is especially intimidating. QuickBooks was designed for small businesses like yours, not for seasoned accountants, but there’s still a lot to discover. You can ease into this learning process by following these five QuickBooks Desktop training tips for beginners.

1. Use a sample file.

When you set up QuickBooks Desktop, you gave your company file a name. This is the file that will open when you launch QuickBooks and which will eventually contain all of your data. The software comes with two sample files that you can open and use as you are learning how QuickBooks works.

Click File in the upper left corner, then hover over Open Previous Company. Click on the one you want to use to open it. The name of the file that is open will be displayed at the very top center of the screen. You can use this file to “practice.”

2. Browse through the Preferences menu.

You might be able to use QuickBooks as is, but it’s likely you will want to eventually change some settings. Click on Edit in the upper left and select Preferences. This is where you will go when you want to, for example, have your Reminders appear every time you launch QuickBooks.

3. Recognize that there are three overlapping navigation systems.

There are three ways you can open working screens in QuickBooks. The standard Windows menu runs across the top of the screen. The middle of the screen displays a typical accounting workflow; this is your Home page. You can customize the vertical Icon Bar on the left to so that your most often-used items get priority placement. Right-click anywhere in the Icon Bar and click Customize Shortcuts.

4. Locate the Chart of Accounts

QuickBooks comes with a standard Chart of Accounts already set up. Click the icon in the upper right of the Home page to open it. You can set up new accounts like bank and credit card accounts, for example. Right-click anywhere on the screen and select either New or Edit Account.

5. Create an invoice or sales receipt.

You are working with sample data, so you cannot hurt anything. Click the icon on the Home page, in the middle customer section, to open the form. Click on down arrows in fields at the top to open their lists and click in blank fields in the actual forms (you will have to enter the quantity manually) to make their down arrows appear. This is how all forms in QuickBooks work.

Once you are done experimenting, be sure to open your company file again before you start entering your own data (File | Open Previous Company | [filename]).

Need Training?

There is a lot more to learn about using QuickBooks. We have helped numerous small businesses get up and running with the software, and we can do the same for you.  Contact us when you are ready, and we will schedule some training sessions. You can also visit QuickBooks Support to view articles and tutorials on getting started.

Want to learn more about QuickBooks and other Accounting topics? Check out our outsourced accounting blog.

You need a business plan for three primary reasons:

• To show to bankers and potential investors
• To better understand your existing business structure
• To do short- and long-term strategic planning

Effective business plans contain multiple text documents, but it’s the financials—those charts and graphs and tables—that will jump out at potential loan approvers and investors. They’re also useful to you as you continuously assess your company’s financial growth.

Three reports are always included: Income Statement (Profit & Loss), Cash Flow Statement, and Balance Sheet. Some business plans offer additional ones, like a sales forecast and expense budget. These grow out of your assumptions, a lengthy list of questions you must answer, like:

• How many units will you sell each month?
• How much will you spend on marketing in the first 12 months?
• What do you have currently in assets? Liabilities?

How can you make your projections realistic while displaying your company’s strength in the best possible light? Here are some suggestions.

1. Start with historical data

Unless you’re just launching your business, you have existing data you can use for reference as you’re creating your projections. If you’re already using QuickBooks, this will be a lot easier.

2. Look at examples

If you’re a new company and don’t have historical data, this will be difficult, as privately-held small and midsized companies generally don’t disclose their financials. You can still do market and industry research online for information that’s available to the public.

3. Broaden your knowledge

Think beyond the confines of your own company and even your surrounding geographical area. Pay close attention to what’s happening on the national level. What’s happening with the economy that might affect your industry? As economists make predictions, consider what impact they might have on you.

4. Include multiple years

You might make your first-year projections monthly and include a lot of detail. For the next 2-4 years, you could use annual figures.

5. Consider creating two sets of financial projections

You could build projections for both worst- and best-case scenarios.

6. Be realistic but optimistic

Don’t inflate your numbers. The trained eyes of investors and bankers will know when the outlook is too rosy. And it won’t help you do your own internal planning if you’re overestimating your company’s potential. On the other hand, don’t low-ball yourself. You want to look like an attractive prospect to outsiders, and you want you and your staff to be challenged. It’s a delicate balance.

7. Get company-wide input

If your business is big enough to have multiple employees or even departments, get them involved in the process, just as you do when you’re preparing a budget. Your staff may have knowledge and insight in areas that you don’t.

8. Keep it simple

Financial projections are very complex. Make sure, though, that they’re clear and easily understood. Simplicity is key!

The mechanics of creating financial projections can be daunting, especially if you haven’t worked with spreadsheets or accounting software. We have extensive experience here, and we can help you take on this difficult but necessary process. Contact us, and we’ll help you get started.

Do your employees know what’s expected of them in terms of the company money they can spend when they travel? If they don’t, you might:

• End up with unnecessarily costly expense reports.
• Risk exceeding projections in your current budget.
• Alienate employees if you don’t reimburse them for everything.
• Have more trouble with future budgeting and forecasting.

Finally, an expense policy can save time and keep things fair. It will allow you to approve reports faster, instead of guessing whether you approved a certain expense before or not.

For all those reasons, your company needs an expense policy. This should be a written document that lays out the expenses that employees can legitimately claim when they travel on behalf of your company. This is the best way to keep travel expenses down. If employees know ahead of time what the rules are, they’re less likely to spend freely.

What’s In An Expense Policy?

Your expense policy should define what constitutes business travel and who is eligible to claim expenses. You can describe your expectations here, too. For example, you may ask employees to economize as much as possible. What happens if they submit claims for expenses that don’t follow the policy? How long do they have to submit their reports and how quickly will they be reimbursed? What kind of documentation is required and how should this and the report itself be submitted?

You’ll want to put a dollar maximum on some of the items you list in the policy or limit expenses in other ways. For example, are employees ever allowed to fly business or first class? How much can they spend on dinner or for a hotel room? Consider also spelling out the rules on things like cash advances, vehicle mileage, cabs or rideshare services, and “add-on” flights. You might also list expenses that aren’t covered, like the mini-bar, hotel gym, and movie rentals.

Many unanticipated situations can come up during business trips. What do employees do if they encounter one? You’ll probably have to amend your document periodically to include new expense types.

Keep your expense policy as simple and accessible as you can. If it runs too long, employees are less likely to absorb it. You’ll need to build flexibility into it, since things cost more in some parts of the country than others.

Finding the Right Solution

How do you handle completed expense reports? Getting that data into your accounting system can require a lot of duplicate data entry if you’re doing your bookkeeping manually, and errors are likely. It’s easier if you’re using QuickBooks, and easier still if you add an integrated expense-reporting app. Some even help you manage approvals, check reports against policies, and handle reimbursement.

Contact us if you’re struggling with this financial issue. We can help you find the best way for your business to manage your expense policies and reports.