Small business owners discover over time that manual bookkeeping is less than ideal for their business as keeping an accurate set of books is essential for any business. Not only is it time-consuming, but it also leaves a lot of room for human error which eventually leads to mismanagement and complicates easy tasks like managing vendors and buyers, accounting, tracking, and reporting. Every business should be equipped with accounting software like QuickBooks to avoid these mishaps. QuickBooks is one of the most popular accounting tools; hundreds of companies around the globe use it for tracking and maintaining the finances of their businesses. Companies use QuickBooks to manage business operations, reduce time spent on repetitive tasks, keep more accurate records, manage vendors, produce professional-looking financial reports, and avoid any potential problems with their bookkeeping.
There are various other advantages of using QuickBooks, but this article will only discuss how QuickBooks helps manage your vendors.
Other businesses and subcontractors who receive money from your business in exchange for goods are your suppliers or vendors. QuickBooks supports both customers and vendors. You will need to add your vendors to your business account, and then you will easily manage your businesses’ vendors.
Gather your vendor’s information
Before you add new vendors to your QuickBooks business account, you will need to gather all necessary information regarding each vendor your business uses to conduct business. Having all the information in one location will make the process easier and less time-consuming.
The information you will need of each vendor is:
- Company name
- Contact name
- Billing Address
- Email address
- Contact numbers
- The rate you pay to service vendors
- The amount you owe the vendor before using QuickBooks
- Employer identification number (EIN)
How to add vendors in QuickBooks?
You can add new vendors to your business account manually in three easy steps;
Click the ‘expenses’ menu and then select ‘vendors’ from the left menu bar.
Choose the option ‘new vendor’ and fill in all the necessary details such as vendor’s name, title, billing address, etc.
Select ‘save and close.’ Completing the addition of the new vendor to your QuickBooks account.
Ensure that all the vendor’s information is correct before entering the data, and ensure that you don’t add the same vendor multiple times.
Transactions involving a vendor
By using QuickBooks, you can also locate all transactions involving each vendor in a single location. You can choose the vendor’s name from the ‘expenses’ menu and select the ‘transaction list’ option, bringing up all transactions that have taken place between your business and the vendor you’ve chosen. Not only this, but you will also be able to print all transactions involving the particular vendor if you wish to keep a paper trail of your cash flow.
Advantages of setting up vendors in QuickBooks
Using QuickBooks to manage vendors will save time and money. Setting up vendors in QuickBooks will save time when you enter an invoice. Instead of manually adding all the vendor and invoice details every time, you will be able to select the vendor’s name from a drop-down menu, automatically filling in all the information regarding the vendor.
Not only this, QuickBooks lets you automate invoicing and payments by expediting bill processing. This automation means costs can be processed on time using the vendor information already present in the system, and you can send reminders about your pending charges. Automated invoicing and payment can cut down on critical business time.
Track expenses
Setting up vendors in QuickBooks will also allow you to track your expenses and cash flow. It can generate reports showing the amount of money spent and the products purchased from each vendor, allowing the business owner to understand how they are doing and prevent any cash flow shortage.
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