September 6, 2022
by  Josh Sab

Making Tax Digital - Is QuickBooks right for you?

In this week’s blog, we’re talking about QuickBooks Online, the next cloud-based software in our series on tools to get ready for MTD. The software is targeted at small businesses and is ideal for the self-employed, freelancers and Limited Companies. QuickBooks has an error checker that reveals common mistakes before direct submission to HMRC. They also alert accountants regarding each client's VAT deadlines.

 

Advantages of QuickBooks Online

Track Mileage, Expenses – Using the QuickBooks(QB) mobile app you can track the travelled distance for easy and accurate records when calculating tax deductions.

Payroll – Automated tax calculations make this process faster for companies concerned with efficiency, the level of detail in reporting can also be manipulated including deductions and contributions, paid time off or even multiple site locations depending on what the business needs.

Invoice creation and emailing – Allows for custom invoice creation as well as payments through, credit, debit, or bank transfer. QB Online invoicing also alerts account holders when an invoice has been seen or received payment.

3rd Party App Integration – It is easier to automate the transfer of data from across a variety of online business platforms e.g Amazon Business, Paypal, and Shopify. This could massively streamline the gathering of sales data and so make it easier to see what is working best for profit generation.

Inbuilt system to record receipt documents – You can do this through multiple methods, the first is to upload expense receipts or images from your computer or cloud storage. Secondly using the QB mobile app, you can take a photo on your phone. Finally emailing the receipt or pictures to QB directly also gets your invoices onto the online system.

 

Disadvantages of QuickBooks online

Limited reporting compared to the desktop version – The desktop version of QuickBooks is the older but more comprehensively developed program. Though lacking some benefits such as ease of access no matter your location, it also has the plus of features such as the ability to generate sales orders. This is not a debilitating issue for QB Online because of the 3rd party apps mentioned above however extra steps to achieve a comparable result is not ideal.

Stock Control/Inventory Management – The QB system only allows for one warehouse site which inhibits a potentially growing business from easily tracking inventory levels across multiple locations.

Learning Curve – A common issue with QuickBooks is that the cost of its highly detailed and customisable systems is a lack of explanation or introduction. This means without a proficient user to guide and explain its use people can be slowed down by having to learn its processes.

Varied users per account – This may not be a negative for everyone however those planning on expanding in the future might need to purchase larger or smaller service packages depending on business needs.

 

Overall, we can see that QuickBooks Online is an ideal tool for those who find value in the nitty gritty of accounts or wish to be able to extract bespoke data. However, this causes it to lose out on user-friendliness and thus efficiency for those not trained in it. Either way, it is a strong competitor when best applied, if you have any further questions about QuickBooks Online or otherwise don’t hesitate to contact us at office@pfconsult.co.uk.

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