Businesses rely on accounting software like QuickBooks to keep track of expenses, revenue, reconciliations and all sorts of financial data.
But did you know that individuals could also use QuickBooks for personal use?
Yes, QuickBooks can help you keep track of your personal finances; just like it helps businesses organise their finances. Manage your personal finances with QuickBooks by creating budgets, tracking and categorising expenses, making payments and more.
This article dives into the merits of using QuickBooks for personal finances and some popular use cases.
What is QuickBooks?
QuickBooks is a popular cloud-based accounting software used by businesses of all sizes.
Businesses mainly use it for tracking money coming in vs money going out, generating insightful reports based on transactions, taking care of payroll, and tracking day-to-day business activities.
QuickBooks key features
Here are some of the finance/accounting activities that QuickBooks can facilitate for businesses:
- Money in
- track and record income
- invoice and accept payments from customers
- create and send estimates
- Money out
- manage bills and expenses
- pay vendors and contractors
- manage taxes
- track cashflows
- create P&L and balance sheet
- classify transactions
- automate payroll
- track billable hours
- manage product inventory
- fulfill orders
QuickBooks for personal use
Some of the QuickBooks features highlighted in the previous section can be used to manage personal finances as well.
Leveraging QuickBooks' features to manage household finances will help you get personal insights that are just impossible to get from simple notes or spreadsheets. Once set up, QuickBooks can track your income, categorise expenses, remind you to pay your bills, estimate taxes and create realistic budgets.
Let's look at some popular personal finance use cases that QuickBooks can help manage seamlessly:
QuickBooks can pull transactions from your bank or credit card statements and help you categorise them. You can also scan receipts directly into QuickBooks and match it with an existing transaction.
Essentially, QuickBooks can capture and organise all your expenses.
Track your mileage with QuickBooks via GPS. This allows you to go beyond tracking fuel expenses and monitor fuel efficiency!
This is mostly used to differentiate between personal and business travel. And comes in handy when requesting reimbursements or estimating potential tax deductions.
Automating bill payments
QuickBooks can help completely automate all your bill payments or alternatively set up scheduled reminders for recurring payments.
Create "memorized transactions" with QuickBooks to keep track of recurring payments easily. Quickbooks will automatically create an entry every week/month/year. You'll simply need to update the amount for the transaction and pay.
Quickbooks also allows you to do multiple payments in one go; even with different payment methods!
Generating financial reports
QuickBooks provides a lot of insights and trends on your personal finances through smart reports. Track cash flow and expenses, monitor profit & loss, or compare historical reports to track trends.
These reports will help you plan budgets more efficiently and also help you draw insights about your home finances.
Using QuickBooks to manage your personal finances essentially empowers you to take decisions backed by data and smart insights. Managing personal finances with a business tool, like QuickBooks, allows you to leverage powerful features.
Check out the "Simple Start" base plan to get started with QuickBooks for personal use and supercharge your personal accounting processes.
If you think you need some help/guidance on getting started with QuickBooks, don't worry. There are tons of online courses that train users to manage their finances on QuickBooks. Check one out today.