What Type of Business Can I Use QuickBooks For?

Posted by on Jan 7, 2011 in Getting Started in QuickBooks | 12 comments

Before you going running down to the store to purchase this user friendly accounting software that everyone is raving about, you need to stop and think about your requirements from the business side. Are you in the service, retail, medical, manufacturing, construction, education, non-profit or exploration industries, because the list is extremely long?

Does your business have a need to track accounts receivable, accounts payable, payroll, inventory, departments, multi-currency, fixed assets, multi-companies and so on? What version will I need? Can I get by with Basic, Pro, Premier, and Multicurrency or will I have to use the Enterprise Solutions Accountant Edition?

How much will this QuickBooks package cost me and where can I buy it? What a lot of questions to consider before making that important decision. But answering those questions are essential because you don’t want to later find out you purchased the wrong software.

So sit down, grab a cup of coffee and carefully think this out. Have a gathering of the minds and brainstorm this. Take notes, draw up a flow chart and listen to what everyone has to say because you will be surprised what ideas will come forth.

If you have inventory, is it used in the assembly of a product and if so, how sophisticated is it? You’re not going to use QuickBooks to build a car, I can tell you that right now. For more detailed types of assembly you will need a different software product, so don’t try to fit the round peg in the square hole. Think about the coding identification for the inventory so that you can expand it if necessary.

I remember a company that was building modular housing and shipping it to other parts of the world where it would be assembled. I was brought in to do some consulting on their accounts and when I reviewed them, I could see right away that QuickBooks was not going to be able to track board measurements required. This in turn was going to have a huge impact on costs and their profit margins.

So I suggested another product that I knew of and left knowing that they were now heading on the right track. QuickBooks is an excellent product for the right business but it’s not Accpac, Timberline, Great Plains or any number of other high-end lines.

Now QuickBooks is an extremely user friendly product and most people can manage the operation of it, but don’t expect it to spit out reports if the person using it has no idea about accounting, because that’s not going to happen. Your software has to be set up properly so that the end-user can help manage this important part of the business.

Many business people think that their business is just doing great until important accounting areas are factored in. I will write about that topic in later articles, but depreciation, amortization and cost allocation are a few that come quickly to mind.

The questions that were asked at the beginning are too complex for me to answer without knowing more about the type of business or industry at issue, but I can tell you that QuickBooks works very well with service, education, non-profits, certain types of construction, resource and exploration, and venture capital types.

In conclusion, this is the start of a series of articles that will explore not only QuickBooks but also accounting aspects.

Remember that you can follow me on Twitter http://twitter.com/QuikBooksTrainr for tips and updates also.

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12 Responses to “What Type of Business Can I Use QuickBooks For?”

  1. Can I use Quick Books to keep track of Rental Properties and
    expenses?

    • Larry Johnson says:

      Good Question Ninfa. There is Integrated Software that QB’s works with that is designed for Rental Properties. If you go to this site, you can learn about them.
      A word of warning. Make sure that the Integrated Software company has been in business for a number of years and has a Silver or Gold Award from Intuit as a developer product. Also, check to make sure that this Integrated Software company will help with the installation and give you a number of free consulting hours included in their software price.
      Hope this helps.

  2. Hi I am thinking about starting a 2 week HVAC and Refrigeration training course/technical school. Would Quickbooks compatible with my needs?

  3. I’m planing to open a “pet boarding facility”. Can I use quickbooks software? I’m very familiar with the program but I don’t know if I can use it for that purpose.
    Thank you
    Isabel Bakke

  4. Hi – I am buying a day sailing charter business. I currently have “Quickbooks 2015 for Mac.” Would you recommend QB for my purpose or could you recommend another accounting software?
    Thanks,
    Scott

    • Hi Scott, I take you will be using Desktop? Since their are various types of editions of QB, I would go with the Premier. That allows you room to grow in case your business diversifys. From the sounds of it, you will be providing a service, with the possibilities of adding meals, snacks, beverages, etc. As long as you do not intend on carrying any inventory, this should serve you well. Speak to a QB ProAdvisor about helping you with the customization of your invoice along with your logo, since this is what your Customer’s see.

  5. justin roop says:

    I am a llc filing as an s-corp. How should I choose my business type in qb

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