QuickBooks (QBO): Data Analytics Positive Impact on Small Businesses

By: Casey Wendling

As a business owner, you are likely no stranger to the ongoing challenges that come with understanding your data. You often hear ‘data analytics’ as a solution to the problem, but how do you begin to get your data to a place where you can understand it?  

Technology is an extremely helpful tool. It can help summarize, visualize, and create roadmaps based on the results you hope to see. While understanding your data can be daunting, so can the decision of what software is best to achieve accurate results and combine your data in one place.  

QuickBooks Online (QBO) is very user-friendly, provides automation and integration capabilities, has lots of educational resources and will scale with your business. 

A familiar name to most small and midsize businesses, QuickBooks has a market share of 85% of the small business accounting category, with many leveraging the software for their bookkeeping solutions. 

With QBO, you gain a crystal-clear view of your finances at any moment, allowing you to make smarter decisions quickly. Its intuitive interface and seamless integration with other tools means you can effortlessly track performance, uncover trends, and stay ahead of the competition. 

Below are best practices for businesses that use QBO: 

1. Utilize QBO Bank Feeds 

QBO technology will connect with most banking institutions and the software will even import monthly bank statements. Establishing bank rules creates automation as QBO reviews transactions that are downloaded by the bank, assigns the proper account code, vendors and customers, locations, and adds a description.  

The bank feed tool automatically records daily transactions and reconciles every bank account connected within seconds. This significantly reduces manual work and human error, giving internal staff time back to do other daily tasks. 

 2. QBO Pairs with Third Party Applications  

QBO creates an opportunity for a seamless flow of data that makes systems more efficient and effective with integrations. For example, third-party payroll providers other than QBO payroll, can link with QBO and produce lasting results after the initial setup phase. As payroll is processed in the third-party site, the data is transferred to the accounting system and creates a “gross up” to net payroll journal entry with employee and employer taxes that would otherwise need to be completed manually.

Other third-party applications exist to import journal entries, bills, checks, invoices, and receipts directly to QBO using templates. The importable spreadsheets significantly reduce the manual processing time and are a large cost-saving opportunity. 

 3. Creating Routine and Recurring Journal Entries  

Creating recurring journal entries will save you time, and using customized reports to review data will help meet business needs. Routine journal entries like recording depreciation and amortization expenses are specific examples most useful to create as reoccurring. 

To setup recurring journal entries, follow these steps: 

• First, navigate within QBO to create a journal entry under the “+ new” bubble on the top left.
• Click on “Make Recurring” at the bottom of the screen and then enter the desired information that is populated at the top.
• Required fields will ask you to enter the template name, how many days in advance, and how often you want the journal entry to be entered.
• Once you save the recurring journal entry, you can edit or delete by going to the gear option at the top right, click “All Lists” and then “Recurring Transactions.” 

Real-Time Reporting 

QBO has real-time financial reporting capabilities that organize your businesses numbers in meaningful ways, making them simple to interpret and understand. You’ll gain access to up-to-date profit and loss statements, and balance sheets, giving you a clear and current picture of your business’s financial health.  

• • Profit and Loss Statements: View your income from different revenue streams and see where your net profit stands, these will help you identify the most profitable parts of your business and where you possibly want to enhance focus or switch gears. 

• • Balance Sheets: Keep track of all your assets, monitor your liabilities, and understand where your business stands. You’ll be able to gain a clear picture of where your debt and current obligations stand, as well as what is crucial for your investors and stakeholders to know.  

• • Real-time Data Access: Get immediate access to financial data as it is updated in real-time, ensuring you always have the latest information at your fingertips. This data is used to make informed, timely decisions that can positively impact your business’s financial outcomes.

QBO data analytics provides valuable insights into numerous aspects of your business aimed at helping your business grow. The deliverables are endless with reliable data and business owners can tailor their products and services to better meet customer needs, drive competitive advantage, growth, and success. 

How Can Maner Help? 

At Maner Costerisan, our Outsourced Accounting team is here to make your transition to QBO seamless and stress-free. We can integrate QBO with your existing systems, ensuring your financial data flows smoothly and accurately. Our experts handle the technical aspects of the transition, from setting up custom reports to configuring third-party integrations, so you can focus on running your business. 

If you have additional questions or want to know more, you can reach out to Casey Wendling, Manager, or call us directly at 517-323-7500.