Small business is the backbone of America's economy and accounts for 99.7% of all US firms and provides a respectable proportion of employment and to GDP. Financial management is an activity daunting to the majority of small business owners. It is based on the latest statistics:
- 64% of small business owners manage their own accounts.
- 36% of small business owners employ an accountant.
- 64.4% of small business owners use accounting software.
- QuickBooks dominates at 81% U.S. market share of accounting software, well ahead of rivals Sage 50 (10%) and Xero (9%).
- The Small Business & Self-Employed segment featuring QuickBooks as part of Intuit posted revenues of $8 billion, or 56% of revenue for Intuit, in 2023.
- Over 420,000 small businesses are on QuickBooks Online Payroll in the U.S.
Despite all of these improvements, 60% of small business owners indicate that they're not sufficiently trained in accounting, and 21% admit to being not skilled enough at bookkeeping. There's never been a better need for clear, effective, and smart accounting applications—making QuickBooks' claim to being an MVP of the kit of American entrepreneurs a reality. Let’s know more about the rising need of QuickBooks Accounting for small businesses in America.
Why QuickBooks is Important for Small Business Accounting
Let us understand the importance of QuickBooks Accounting for Small Businesses in America:
1. Ease Meets Power
QuickBooks is also accountant-friendly. It has a simple-to-use dashboard, installation guide, and auto-functions to make business owners able to follow finances easily, without having to learn. This is crucial because 72% of sole-proprietor contractors operate bookkeeping services in-house.
2. Cloud-Based Flexibility
Books are at hand wherever with QuickBooks Online—on the go, home office, or office. That matters today with mobile-first business days because 78% of small businesses will likely use cloud accounting by itself.
3. End-to-End Features for Every Business Need
QuickBooks provides all of the accounting features:
- Invoicing and payments: Send, create, and follow up on invoices; accept online payments.
- Expense tracking: Connect bank and credit card accounts to allow for simple import of expenses.
- Payroll: Manage employee pay, taxes, and payroll compliance functionality built-in.
- Inventory control: Track products, keep stock levels up-to-date, and reorder in a timely manner.
- Tax preparation: Complete forms and produce information for simple tax filing.
4. Scalability
QuickBooks offers solutions to all phases of business expansion—solopreneurs, companies with dozens of workers. Companies can grow plans or increase features as demands change without having to switch platforms.
5. Integration Ecosystem
QuickBooks integrates with hundreds of third-party tools, including payment processors, CRM, e-commerce stores, and much more. It automates processes and eliminates manual data entry.
The Impact of QuickBooks on Small Business Success
Let’s discuss the impact of QuickBooks accounting services on successful small businesses:
Streamlining Bookkeeping
Hand-accounting is too time-consuming and too error-prone. QuickBooks decreases drudgery, minimizes human error, and saves time, leaving the business owner to concentrate on development.
Increasing Financial Transparency
QuickBooks' on-demand dashboards and reports give the owner real-time insight into profitability, cash flow, and expenses. The honesty policy is good decision-making and avoiding cash flow crashes.
Making It Simpler to Grow
QuickBooks makes it simpler to be in compliance. Tax codes are changing and complicated. QuickBooks remains innovative by computing sales tax, making tax-ready reports, and interfacing with leading tax preparation software.
QuickBooks makes it possible for a small business to be stretched at a low cost, raise capital, and develop long-term goals easier with the assistance of financial visibility and making it simpler to accomplish.
Getting Started: How to Begin Your Small Business Accounting with QuickBooks
Here’s a step by step guide on how to start your small business in America with QuickBooks Accounting:
Step 1: Choose the Perfect QuickBooks Product
- QuickBooks Online: Perfect for the majority of small businesses; cloud access and ease of flexibility.
- QuickBooks Desktop: Perfect for more sophisticated accounting needs, though no longer obtainable to new customers past August 2024.
- QuickBooks Self-Employed: Perfect for solo owners and independent contractors.
Step 2: Set Up Your Company Profile
Input your critical business data, connect your bank accounts, and configure your chart of accounts to fit your industry and operations.
Step 3: Automate Transactions
Utilize automatic bank feeds and rules to automatically classify transactions, reducing manual input and mistakes.
Step 4: Customize Invoices and Payments
Automate branded-branded invoices, facilitate online payment options, and automate payment reminders in order to get paid ahead.
Step 5: Expense and Receipt Tracking
Take photos of receipts with the mobile app, sort bills, and monitor spending in real time.
Step 6: Payroll Processing (if applicable)
Add workers or independent contractors, define pay schedules, and let QuickBooks perform the math and pay taxes for you.
Step 7: Run Reports
Run pre-formatted reports—balance sheet, profit and loss, and cash flow statements—to follow the health of your business and tax time.
Avoiding Common Small Business Mistakes with QuickBooks
Below are some of the mistakes to keep in mind while using QuickBooks accounting for your small business:
- Not reconciling accounts on a regular basis: Disconnected bank statements and QuickBooks accounts will generate mismatches.
- Not installing software updates: Older software lacks security patches and updates.
- Poorly designed chart of accounts: Cluttered chart of accounts can lead to confusion and reporting mistakes.
- Mixing business and personal finances: Always maintain accounts separate in order to have records free of mixing business and personal and to prevent IRS audits.
- Backup failure: Back up regularly to avoid losing information due to technical problems or cyberattacks.
- Forgetting user permissions: Minimize risk exposure to sensitive financial information through proper user roles.
QuickBooks Tips for US Small Business Owners
Here are some tips to use QuickBooks accounting to your advantage:
- Turn automation into a friend: Leverage rules, recurring invoices, and scheduled reports to automate your time.
- Get integrations to work for you: Integrate QuickBooks with your e-commerce, payments, and CRM.
- Access mobile features: Work anywhere on the books with the QuickBooks mobile app.
- Stay compliant: Keep current with tax law and QuickBooks features.
- Invest in education: Get the most out of your software investment by taking advantage of QuickBooks tutorials, webinars, and community forums.
With evolving technology, the need of QuickBooks Accounting for small businesses is heading to newer horizons with AI-powered attributes, more automation, and broader integrations.
Related Resources
- QuickBooks Online Accountants Near Me: Choosing the Right One 2025
- QuickBooks Accounting: The Complete Guide to Simplifying Your Company's Finances
- How Offshore Teams Can Efficiently Work on Your QuickBooks Account
Cloud accountancy-based migration is gaining strength, and more and more businesses are seeking fast, scalable, and secure alternatives. QuickBooks' market dominance in the US market will continue to unfold as it reacts to the evolving needs of US business owners. Connect with our experts at The Fino Partners to learn more.
