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June 19, 2018

Wave vs. QBO: Which is Right For You?

qbo vs waveThere’s so many options available for the business owner who wants to take care of their own books. For some users, it’s a matter of price while others look more toward functionality and integrations.

I think it’s important to look at it all, especially what you need within your own business. Because no two businesses are created equal.

Let’s take a look at the difference between Wave and QBO, and you can decide which is the best bet for you. (Can you guess which is my go-to pick?)

Pricing

I know a lot of business owners are price-shoppers. While I don’t blame you, it’s important to still do your research. I believe you get what you pay for, which means that “free” isn’t always the best bet if you’re looking to cut costs. It just might cost you more in the long run if it doesn’t offer all the features you ultimately need.

  • QBO: Three pricing plans, depending on the features you need, starting at $10 a month
  • Wave: Free, with additional paid services for payroll and online payments
I know a lot of business owners are price-shoppers. While I don’t blame you, it’s important to still do your research. Click To Tweet

Integrations

How well does your bookkeeping software “talk” to other systems? In today’s ultra-connected world, your systems need to speak to one another to be more efficient–saving you time and money and ensuring that human error isn’t part of the equation.

  • QBO: 1,000+ with both Zapier and stand-alone integrations
  • Wave: Three – Etsy, Shoeboxed and Paypal only

Security

You’re dealing with bank feeds and log-ins that needs to be secure. Having something you can depend on, without the risk of your sensitive information falling into the wrong hands, is important.

  • QBO: Data encryption, backups and physical security
  • Wave: Data encryption, backups and physical security

Setup

This is the most important step, besides making sure the accounting program has all the features that you need based on your business type. If the program isn’t set up right from the beginning it will affect the accuracy of the data on your reports.

  • QBO: Setup in QBO is intense but straightforward if you watch the training and setup videos or have a professional help you. Expect to spend anywhere from 1 to 3 hours setting up QBO the first time. Another option is to have a professional set up your file. Then, purchase a block of training hours for particulars in the beginning.
  • Wave: Easier setup than QBO but still a learning curve. It might be best for a professional to help you set it up and give you some training. It will take roughly 1 to 2 hours for setup depending on the level of detail in how want to categorize your income and expenses. Wave has a great help section of webinars, videos, and guides.

Accounting

I recently wrote about cash vs. accrual accounting, a distinction that’s important for small business owners. Because many small businesses start with cash accounting, it’s important to have that option in your bookkeeping and accounting software. Only one of these systems does.

  • QBO: Offers both cash- and accrual accounting options plus a slew of reports
  • Wave: Only allows for accrual accounting

Reports & Features

Every business is different and a bookkeeping system should be able to grow with it. While you may not use all the features of a robust system early on, having access to inventory control, budgeting and tax support options is helpful as your business grows and matures.

  • QBO: Offers the above features, plus up to 75 different reports
  • Wave: Has 12 available reports, which are basic reports in QBO
  • QBO: Has an inventory option, category tracking and budgeting
  • Wave: Does not offer inventory, category tracking or budgeting
  • QBO: Has a reconciliation feature
  • Wave: Does not have a reconciliation feature
  • QBO: Can exclude transaction(s) but, not delete them
  • Wave: Can exclude + delete transaction(s)
Every business is different and a bookkeeping system should be able to grow with it. Click To Tweet

If you are planning on hiring a bookkeeper anytime soon you’ll want to do some research and find someone that works with the accounting system you’ve chosen, for both bookkeeping and training needs you might have. Find one to three professionals and schedule a free introductory call with them to discuss your options, what you are considering and why. They’ll also give you valuable information to consider in your decision making process as well. Keep in mind, professionals are biased as we are typically used to using certain programs and have our favorites. Here at Number Nerd we use a variety of programs for clients for various reasons. Feel free to schedule an introductory call with a Number Nerd professional to discuss your software options based on your business type.

I’m sure it’s so secret that QBO has long been my go-to favorite bookkeeping system for any client. It just makes sense to have the most streamlined options, and at a reasonable cost. Here’s a Wave comparison chart to the various versions of QuickBooks Online. Other things to consider when choosing a system is the learning curve and trainings available. And as you grow, you’ll want to know the best way to transition from one system to another. Of course, I think QBO is powerful enough to use with nearly any size business.

 

Filed Under: Bookkeeping Tagged With: Bookkeeping, QuickBooks, Small Biz

May 8, 2018

QuickBooks Online Features You Need to Use

When you start using a new tool in your business, it takes time to learn all the ways it saves you time and money. There are often little tricks hiding in the depths of the tool that you don’t find out about until months later–because you’re really just trying to get it up and running.

This is true for QuickBooks Online (QBO) and its features, especially when business owners start to use it without taking the time to set it up and learn what it’s all about.

There are so many features in QBO that it’s my go-to bookkeeping system of choice for any client. But you have to be willing to take the time to set it up right if you’re going to make the most of it.

If you’re investing in a tool for business, set it up right so you can make the most of it. Click To Tweet

Here are some of my favorite features that often get overlooked by business owners who choose to DIY their QBO set-up:

Connecting Bank Feeds

From time to time, I meet with potential clients or new clients that are not utilizing the bank feed feature at all. Either they are stuck in the old-school way of doing things or simply are not aware that QBO has this feature and the purpose of using it.

It’s the simple task of connecting your bank and credit cards accounts in QBO. And yes, that means entering your login credentials for that site into QBO and mapping that account accordingly. It is a bit scary for the non-tech savvy business owner but, once I explain it and the amount of time it will save them, they are sold.

By connecting the bank feeds you’ll see new transactions download every time you log in. You’ll see your QBO populate with each and every transaction, saving you time and limiting the chance of error.

Categorizing Transactions

QBO will automatically categorize, or code, your transactions for you–if you take the time to set up the bank rules. Doing this saves you the time of manually categorizing when you reconcile your accounts. Keep in mind you will need to invest time to do this when you first setup your QBO and each time you add a new bank or credit card account.

If you’re not setting up rules in QBO, you’re losing a lot of time categorizing manually. Click To Tweet

Without rules, QBO will try to categorize your transactions for you. And while it can often do this correctly, keep in mind that QBO is not a human and doesn’t always know what each transaction is for. It’s up to you to correct the categorizations and create rules to help QBO do a better job next time. Yep, this takes time. But it’s worth it in the end!

Account Reconciliation

You need to know where you stand financially at any given moment. When you connect your bank feeds and set up categories in QBO, reconciliation is a cinch. It’s a matter of verifying your month end statement bank balances from each bank and credit card at month end against what was recorded in QBO. This bookkeeping task is a must-do at the end of every month.

You are probably wondering, why–what’s the purpose?

Well, you want to ensure that the bank feed didn’t have a glitch and inadvertently download 2 of every transaction or skip a few. If that happens it means that your expenses are overstated and less profit in your business. Another common issue I see is overstated income, by recording customer payments twice. This happens when you use the receive payment feature and add the bank deposit in the bank feed. That means you’ve counted it twice and overstated your income. Whoops! Both overstated income or expenses are a problem and ultimately affect the business bottom line and the amount of tax you pay. So, it is a good idea to ensure the numbers are correct by using the reconciliation feature.

Time and time again I see plenty of clients that come to us for help and don’t understand why the numbers don’t make sense. Unfortunately, too many business owners skip this vital step–reconciliation–costing them loads of time later in the year. Hopefully, your CPA checks to ensure you have completed your bank reconciliations before they prepare your tax return. This step ensures the accuracy of the data they are using to prepare your return.

QuickBooks Online is truly my go-to bookkeeping tool of choice, and it’s simple enough for any business owner to use. But if it’s not set up correctly, you’re likely to get frustrated and turn to less intuitive and robust systems.

If you’re using QBO and want to get a better handle on how to fit it into your weekly bookkeeping tasks, grab my Weekly Workflow Template today! If you need help now check out our Support and Training packages and let’s chat.

Filed Under: Bookkeeping Tagged With: Bookkeeping, QuickBooks, Small Biz

March 16, 2017

Top QuickBooks Tips and Tricks

I’ve said many times that the difference between success and failure can often be tied to your ability to stay on top of your business finances. When you’re running a business, it’s essential that you keep tabs on your billing and expenses so you can make sure you’re being profitable.

My bookkeeping system of choice is QuickBooks. It’s easy to use, it’s online and many accountants also use it—making the transition from monthly bookkeeping to tax time a cinch.

QuickBooks is so easy to use, in fact, that many business owners use the self-employed version. And because you might be taking care of your own books, I want to share my top tips and tricks when using QuickBooks (so you can make sure you’re making the most out of this valuable resource).

Take Time to Set it Up

It’s really easy to jump in and just start using QuickBooks, but if you don’t take the time to set it up right you’ll regret it in the long run. Be sure to go through all the settings and add all the required information. Find the gear icon in the upper right corner of the window, then click on Account and Settings.

Connect Bank Feeds

One of the best benefits of most accounting software these days is that you can connect your bank to them. This automatically pulls all your transactions into the system so you don’t have to add anything manually. Even better, if you’ve set it up correctly it will even tag your transactions for you.

If you don’t connect manually, you can also download your transactions from your bank into a csv file and upload them into QuickBooks.

Convert Your Files

If you’re just now starting to get your books in order, I recommend using a conversion program to convert a pdf of your bank statements into a QuickBooks file. I recommend one by MoneyThumb, which runs $124.95. There’s some free conversion software out there, but I’ll be candid: You get what you pay for. This is one place where you don’t want to skimp.

Hire Someone

Of course I recommend you hire someone, because this is an area where I can help you! But in all honesty, I see so many small business owners in trouble because they don’t know how to track their expenses correctly. They’re missing out on tax deductions, have no idea what their expenses really are and don’t have a workable budget in place. The right bookkeeper can help you well beyond just taking care of your books. I also do set-up, training and consulting with my clients—as much or as little as they need—to make sure they’re on the right track.

Most importantly, listen to your gut and if you feel like you need help with your bookkeeping, you probably do.

Whether you get help from me or from someone else, be sure to reach out. There’s nothing wrong with needing support in your business—it’s how we grow!

Filed Under: Bookkeeping Tagged With: Bookkeeping, money management, QuickBooks, Small Biz

January 26, 2017

Why QBO is My Accounting System of Choice

Why QuickBooks Online is My Accounting System of ChoiceLet me start here by saying that every business owner has different needs, depending on how long you’ve been in business to your particular industry to who’s handling your taxes. But even then, I tend to come back to the same accounting system for most of my clients: QuickBooks Online.

I know that different bookkeepers and accountants have their own personal preferences when it comes to tracking income and expenses. But for me, QBO makes the most sense for business owners who are ready to take ownership of their money and make it start working for them.

QBO makes the most sense for business owners who are ready to take ownership of their money. Click To Tweet

When onboarding new clients, I often hear that the thought of bookkeeping was so overwhelming to them that they avoided doing anything. That’s like your clothes fitting tighter after the holidays but refusing to step on the scale for fear you’ve gained weight (you have). Continuing to indulge in junk is only going to make the problem worse, just like continuing to ignore your finances is just going to dig your hole deeper.

Instead, take the initiative and take care of your books. Here are just some of the options available with QuickBooks.

QuickBooks for Small Business

For business owners who want to manage their books themselves, QuickBooks is a great choice. Pricing starts as low as $10 a month, and you’re likely to save well over that in accountant bills.

There are different levels, depending on where you are in business: Simple Start, Essentials and Plus (there’s also a less expensive Self-Employed model if you are only working as an independent contractor). Higher-tiered plans allow you to pay employees and send quotes to customers while the lower-tier, individual plan will let you track personal expenses and calculate your quarterly taxes (which you should be doing anyway to stay on the IRS’s good side). If you’re ready to get your cash flow under control and want a starter option, check out QuickBooks. As a pro advisor, I can offer a QuickBooks discount for the life of your account, whether I’m doing your bookkeeping or not.

For More Robust Bookkeeping

QuickBooks has both a desktop and online version (QBO), and can help you organize and automate your expenses and bills. It will also back up your accounting files automatically so you don’t have to worry about losing any data. Taxes are much simpler too, because many CPAs use QuickBooks to organize client financials. You or your bookkeeper have already done this for them!

Whatever you decide you need, the key is to get started. To get the most out of your bookkeeping software, you have to use it—and use it consistently. So even if you don’t go with QuickBooks, go with something.

I’m happy to chat about other bookkeeping options. Get in touch with me and let’s talk!

Filed Under: Bookkeeping Tagged With: Bookkeeping, money management, QuickBooks

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