QuickBooks Accounting Software: A Beginners Guide

July 5, 2023

As a small business owner, keeping track of finances can be a daunting task. This is where accounting software such as QuickBooks come in. In this beginner’s guide, we’ll provide an overall high-level understanding of QuickBooks software, its features, and how it can simplify your accounting processes. Whether you’re a business owner who’s just starting or an experienced entrepreneur looking for a more efficient way to manage your finances, this guide is for you. Let’s get started!

What is QuickBooks?

As a small business owner, it can be overwhelming to keep track of all your financial transactions. QuickBooks is a budget-friendly accounting software designed to simplify your financial management tasks. QuickBooks aids in organizing your finances, creating invoices and reports, tracking expenses, and managing cash flow. 

QuickBooks has become a popular choice for small business owners because it is user-friendly, and it can be customized to suit specific business needs. It offers a range of features that are beneficial to small businesses, including payroll processing, inventory management, and tax preparation. 

Another advantage of using QuickBooks is that it helps to reduce errors in record keeping. With its automation capabilities, you can avoid mistakes that can be costly to your business. QuickBooks also saves you time by automating repetitive tasks like invoicing and reconciling your bank accounts. 

In conclusion, QuickBooks is an accounting software that can help small business owners manage their finances more efficiently while reducing errors and saving time. With its many features and customizability, QuickBooks can help you streamline your financial record keeping and focus on growing your business.

What features does QuickBooks provide?

  1. Bookkeeping and Accounting

QuickBooks allows you to track your income and expenses and maintain accurate financial records. You can use the software to perform tasks such as invoicing, billing, and payroll management. QuickBooks also offers a range of accounting reports that can help you manage your finances more effectively.

  1. Inventory Management

Do you need to keep track of your inventory levels? QuickBooks offers a range of inventory management features that can help you do just that. You can track your inventory levels in real-time, set reorder points, and generate purchase orders when inventory levels are low.

  1. Time and Project Management

If you bill your customers based on the time spent on a project, QuickBooks offers time tracking tools that allow you to do so accurately. You can also manage your projects more effectively with features such as project timelines, task lists, and progress reports.

  1. Mobile Access

One of the most significant benefits of QuickBooks is that it allows you to access your financial information from anywhere. You can use the QuickBooks mobile app to track your finances on-the-go, manage your payroll, and even send invoices.

  1. Third-Party Integrations

QuickBooks integrates with a variety of third-party applications, such as CRM systems and payment gateways, to make your financial management even more streamlined. This integration can help you automate processes and reduce the risk of errors.

  1. Customizability

QuickBooks is highly customizable to your specific business needs. You can choose from a range of plans and add-on features to ensure that the software fits your business operations perfectly.

  1. Security

QuickBooks prioritizes security and offers features such as multi-factor authentication, data encryption, and automatic backups to ensure that your financial information is safe and secure.

In summary, QuickBooks offers a wide range of features that can help small business owners manage their finances more effectively. From bookkeeping and accounting to inventory management and mobile access, QuickBooks is designed to be user-friendly, cost-effective, and scalable. By using QuickBooks, you can streamline your financial operations and focus on growing your business.


How do I set up QuickBooks?

  1. Determine your business entity type:

Before setting up QuickBooks, it’s important to understand your business entity type. Is your business a sole proprietorship, a partnership, a limited liability company (LLC), or corporation? This information will help you select the appropriate version of QuickBooks.

  1. Choose the right version:

QuickBooks offers a variety of different versions. The most popular ones are QuickBooks Online, QuickBooks Desktop, and QuickBooks Self-Employed. Choose the version or plan that best fits your business needs.

  1. Set up your company profile:

Once you have selected the right version of QuickBooks, you need to set up your company profile. This includes adding your business name, contact information, logo, and any other relevant details.

  1. Add your bank and credit card accounts:

Adding your bank and credit card accounts to QuickBooks will allow you to track your expenses and payments efficiently.

  1. Add your products and services:

To generate invoices, you’ll need to add your products and services to QuickBooks. This will also help you keep track of your inventory and the cost of goods sold.

  1. Set up your chart of accounts:

The chart of accounts is a list of all the accounts that you will use to record your financial transactions. QuickBooks provides a default chart of accounts, but you can customize it to fit your business needs.

  1. Customize your invoices and forms:

You can customize your invoices and other forms in QuickBooks to match your business branding. This will give your business a more professional look and feel.

  1. Start using QuickBooks:

Once you have completed all the above steps, you’re ready to start using QuickBooks to manage your finances. You can enter transactions, generate reports, and track your income and expenses easily.

How do I use QuickBooks for payroll?

QuickBooks is a powerful accounting software that offers a payroll management feature to help small business owners streamline their payroll process. With QuickBooks Payroll, you can manage your employees’ paychecks, taxes, and other payroll-related tasks in one place. Here is a step-by-step guide on how to use QuickBooks for payroll:

Step 1: Set up payroll in QuickBooks

The first thing you need to do is set up payroll in QuickBooks. To do this, go to the “Employees” tab and select “Payroll Setup.” Follow the prompts to enter your company and employee information, such as payment frequencies, pay schedules, and tax information.

Step 2: Enter employee information

Once you have set up payroll in QuickBooks, you can enter your employees’ information, such as their name, social security number, and salary or hourly rate. You can also set up different deductions and benefits for each employee, such as health insurance or 401(k) contributions.

Step 3: Process payroll

When it’s time to process payroll, simply select the “Employees” tab and choose “Run Payroll.” QuickBooks will automatically calculate your employees’ gross pay, taxes, and deductions based on the information you entered. You can review and adjust the payroll information before submitting it.

Step 4: File and pay taxes

QuickBooks will also help you file and pay your payroll taxes. It will calculate the amount of federal and state taxes owed, and generate the necessary forms and reports for you to submit to the appropriate agencies. You can either file and pay the taxes manually or sign up for QuickBooks Full Service Payroll, which will handle the entire process for you.

Using QuickBooks for payroll can be a great way to save time and reduce errors in your payroll process. However, it’s important to note that payroll management is only available in certain QuickBooks plans, such as QuickBooks Online Payroll, QuickBooks Desktop Payroll, and QuickBooks Full Service Payroll. Before choosing a plan, make sure to review the features and pricing to ensure that it meets your business’s needs and budget.

In addition to payroll management, QuickBooks offers a wide range of accounting features, such as invoicing, expense tracking, and financial reporting. It’s a versatile software that can help small business owners manage their finances more efficiently. If you’re looking for a budget-friendly accounting solution, QuickBooks may be a great option for you. With its user-friendly interface, powerful features, and affordable pricing, it’s no wonder why so many small business owners choose QuickBooks for their accounting needs.

What is the cost of QuickBooks?

When it comes to pricing, QuickBooks offers several plans to choose from, depending on the needs of your business. The plans include:

  1. QuickBooks Self-Employed – This plan is designed for freelancers and self-employed individuals and starts at $15 per month.
  2. QuickBooks Simple Start – This plan is suitable for small businesses and starts at $25 per month.
  3. QuickBooks Essentials – This plan offers more features than Simple Start and starts at $40 per month.
  4. QuickBooks Plus – This plan includes all the features of Essentials and more, such as inventory tracking, and starts at $70 per month.
  5. QuickBooks Advanced – This plan is designed for larger businesses and starts at $150 per month.

QuickBooks also offers a free trial period for all its plans, allowing users to try out the software before committing to a subscription.

It is important to note that the pricing may vary depending on the country and region you are in. Additionally, there may be additional costs for add-ons and integrations, so it is recommended to carefully review the pricing details before making a decision.


QuickBooks is a versatile software that offers a wide range of accounting features, including payroll management. With its user-friendly interface, powerful features, and affordable pricing, it’s no wonder why so many small business owners choose QuickBooks for their accounting needs. By following the simple steps outlined in this blog post, you can easily set up and manage your payroll in QuickBooks, saving you time and reducing errors in your payroll process. Make sure to review the features and pricing of each plan to ensure that it meets your business’s needs and budget. With QuickBooks, you can streamline your accounting processes and focus on growing your business.

About Capital CFO+

Capital CFO+ LLC is based in Saratoga Springs, New York, providing bookkeeping, accounting, and CFO services. Capital CFO+ helps small firms access the economies of scale, efficiency, and expertise that large companies enjoy. Visit Pearl, our branch manager, at capitalcfollc.com or LinkedIn for more information.