Many business owners’ think that Square will take care of their business needs. This is true, but only to a point. Square does a great job recording money coming in and giving you summaries related to those sales.
It gives you reports like –
- Sales Summary
- Sales Trends
- Payment Methods
- Employee Sales
- Items Sales, Etc.
Beware! This can be misleading. Square cannot help you account for accounts receivable and accounts payable. But why should this matter?
Let’s say you have a client who wants to go on a payment plan and you only have Square. This means that you’ll have to track the payments using another system possibly by paper, excel, or some other software. This can cause problems for your business because you will not be able to run Accounts Receivable Reports and more specifically Aging Reports. Accounts Receivable (A.K.A. A/R) Reports such as the A/R Aging Report can tell you how long that bill is past due on your customers’ accounts- such as Current, 30 Days, 60 Days, etc.
Knowing this can help you keep your cash flow running smoothly. You’ll find out which customers you’ll take partial payments from and who you’ll want to have pay in full. Not to mention, this report can also help you determine who needs to go to collections.
As for your accounts payable, you will not be able to see who you owe at any given time, nor will you have a system in place to help you pay all your bills in a timely manner. This is where you’ll have to either record it on paper or use some other software. You could also just hope you didn’t misplace any bills on your cluttered desk. Accounts Payable is important, it helps you see when bills are due and can help streamline your check writing. Accounts Payable also has Aging Reports. This helps you know what your current and past due bills are at any given time.
As you can see, these two kinds of reporting are essential to grow your business. They can help you figure out what customers you want to serve and how you can best serve them. They also help you keep track of your bills even during those busy months.
But let’s face it, QuickBooks and other accounting software may seem expensive. This is where we come in. We have the software and can help you utilize those wonderful reports or if you’d like you can purchase QuickBooks Online and we can help you figure out which one is best fitted for your business.
We love it when our clients use QuickBooks Online because then you can see your books at any given time. If that doesn’t matter, then go ahead and use ours. Either way we will send you the reports so that you can make informed decisions and take your business to the next level.
QuickBooks is a great tool that we utilize in our business and to help our clients like you stay on top of their business. We specialize in bookkeeping, payroll and taxes. Contact us today to get your business on the right track.