10 QuickBooks Tips for Small Business Owners

Whether you're a new business owner or looking to maximize your use of QuickBooks, these ten tips will help you simplify your finances and keep your books in order.

 1. Customize Your Chart of Accounts

Every business is unique, and so are its financial needs. QuickBooks allows you to create a customized chart of accounts that reflects your business operations accurately. Set up or modify your chart of accounts to ensure that income, expenses, assets, and liabilities are correctly categorized. This will make tracking specific areas of your business easier, provide more precise financial insights, and streamline tax preparation.

For example, a catering business might have separate income accounts for wedding and corporate events. At the same time, a retail store might break down expenses into categories like “Inventory Purchases,” “Shipping Costs,” and “Store Supplies.”

Pro Tip: If you're unsure where to start, use one of QuickBooks' templates as a base and modify it to fit your needs. Keep it simple but specific enough to provide clarity when you look back at your financials. A streamlined chart makes tax season less stressful and helps your accountant (or you) work more efficiently.

Best Practice Tip: Revisit and update your chart of accounts regularly to keep it aligned with your evolving business needs.

2. Automate Recurring Transactions

Think of automation as your silent assistant. Setting up recurring payments means you don’t have to remember when that monthly software subscription is due or when it’s time to pay your lease. QuickBooks takes care of it while reducing the risk of human error.

For example, you’re a freelance designer. You have a monthly software expense for the design tools you use. Instead of manually entering that transaction, set it to recur automatically so your books are always current without you lifting a finger.

Pro Tip: Schedule time once a month to review automated transactions to ensure they’re correct and up to date. That way, you stay in control while reaping the benefits of automation.

How-To: Navigate to the “Gear” icon, select “Recurring Transactions,” and set up a new schedule for any transaction you frequently make.

3. Leverage Bank Feeds for Up-to-Date Records

Connecting your bank accounts to QuickBooks is like having a live feed of your financial activity. It syncs your income and expenses, eliminating manual data entry and reducing human error.

For example, say you run a small home goods store. By connecting your business credit card, every purchase, from office supplies to new inventory, automatically shows up in QuickBooks. All you need to do is confirm the category. This means you’re only a click away from an updated, accurate view of your business finances.

Pro Tip: Spend 10-15 minutes at the end of each week, categorizing any uncategorized transactions. It’s a small task that saves you from a long, tedious process at month-end, plus it’s easier to catch any discrepancies early.

4. Use QuickBooks Online’s Mobile App for On-the-Go Management

You’re not always tied to your desk as a small business owner. Maybe you’re visiting a client, meeting a vendor, or even taking a well-deserved break at your favorite coffee shop. QuickBooks’ mobile app allows you to manage invoices, expenses, and client information on the go. You can even snap and upload receipts directly to QuickBooks, ensuring no expense goes unrecorded.

For example, if you’re at a client’s office and they hand you a check, you can immediately snap a picture of the check and record it as a deposit. Or, say you’ve picked up office supplies during a lunch break—snap the receipt and upload it to QuickBooks. These small steps help you stay organized without adding to your workload.

Pro Tip: Enable notifications to stay updated on invoice statuses and payment reminders to improve your cash flow.

5. Create Customized Invoices

Your invoices speak for your business, so make them reflect your brand’s personality. With QuickBooks, you can design professional invoices with your logo, brand colors, and custom fields that fit your business type.

If you’re a creative business, use the space to add a personalized thank-you note or a message that aligns with your brand voice. For example, a handmade crafts shop could add a line saying, “Thank you for supporting small businesses—your purchase made our day!”

Pro Tip: Prominently include payment methods and a due date. Adding a clear call to action, such as “Pay securely online with the link below,” helps clients make swift payments.

Best Practices: Add payment links to your invoices to make it easier for customers to pay you and speed up the payment process.

6. Run Key Financial Reports

Financial reports are crucial for understanding your business's financial health. QuickBooks offers a range of customizable reports, such as profit and loss statements, balance sheets, and cash flow statements. Regularly running these reports can help you identify trends, monitor your budget, and make informed financial decisions.

For example, run a Profit & Loss report every quarter to understand how much revenue you’re bringing in versus how much you’re spending. If you notice your profit margin shrinking, this could be a sign to reassess your expenses or increase prices.

Pro Tip: Schedule a monthly financial review. Set aside an hour to run reports like your

Balance Sheet and Cash Flow Statement. Use this time to identify any red flags or opportunities for cost-cutting or investment.

Best Practices: The Profit & Loss Report provides a snapshot of income versus expenses, giving you insight into your business's profitability over a set period. Therefore, regular review is essential to growth.

7. Set Up User Permissions

If you have a team helping you manage finances, controlling who can access what within QuickBooks is essential. User permissions allow you to grant different levels of access to employees so they only see what’s relevant to their role. This protects sensitive information and enhances overall security.

For example, if you have an assistant who helps with invoicing, grant them access only to the invoicing and payment sections. This reduces the risk of accidental data modification or unauthorized access to sensitive areas.

Pro Tip: Review user permissions every few months, especially if roles shift or team members change. It’s an easy task that adds an extra layer of security.

How-To: Go to “Manage Users” in the “Gear” menu and set specific permissions for each user.

8. Reconcile Accounts Monthly

Reconciling your bank accounts and credit cards is essential for spotting errors, unauthorized transactions, or overlooked expenses. You can identify discrepancies and maintain accurate financial records by comparing your QuickBooks records with your bank statements.

For example, if your business credit card statement shows an expense you don’t remember making, reconciling it against QuickBooks helps you quickly catch and investigate it. This proactive approach saves you headaches during tax season and helps maintain clean books.

Pro Tip: Block out a fixed time at the end of each month for reconciliation. Treat it like an appointment for your business’s financial health.

9. Track Time for Accurate Billing

If you bill clients by the hour, missing time entries can cost you money. QuickBooks’ time tracking tool accurately tracks billable hours and links them to invoices seamlessly.

For example, if you run a consulting business where projects span multiple clients. With the time tracking feature, you can log hours directly into QuickBooks and link them to specific clients and projects. This streamlines the invoicing process and ensures you’re billing accurately.

Pro Tip: Sync with a third-party time-tracking app to make it even easier for your team to log time.

10. Back Up Your Data

While QuickBooks Online automatically backs up your data, having an additional backup strategy can offer extra peace of mind. Consider exporting important reports or using third-party backup services to store your financial data securely.

Pro Tip: Schedule automated backups to a secure cloud storage service for added security and easy retrieval.

Best Practice: Export key reports such as your Profit & Loss and Balance Sheet monthly and save them securely. This practice is helpful if you need to access your financial data offline or switch software in the future.

QuickBooks is more than just a bookkeeping tool—it’s a comprehensive platform that can be a real asset for small business owners when used to its full potential. By customizing your workflow, automating tasks, and keeping your records up to date, you’ll simplify your finances and empower yourself to make smarter business decisions.

As always, reach out if you’d like support or additional information.