Maximizing Efficiency with QuickBooks Online
For professional service businesses, financial management involves more than tracking income and expenses. It involves efficiently billing clients, monitoring cash flow, tracking billable hours, and ensuring accurate financial reporting. QuickBooks Online (QBO) offers powerful tools that, when used correctly, can streamline bookkeeping, increase productivity, and improve profitability.
This guide highlights five essential QuickBooks Online features every professional service business should use to maximize efficiency and simplify accounting tasks.
1. Automated Invoicing and Payment Reminders using QuickBooks Online
One of the biggest challenges for service-based businesses is ensuring that clients pay invoices on time. Sending invoices manually and following up on payments can be time-consuming, but QuickBooks Online allows you to automate invoicing and set up payment reminders.
How to Automate Invoicing in QuickBooks Online:
- Navigate to Sales > Invoices and select Create Invoice.
- Customize invoice templates with your logo, payment terms, and branding.
- Enable recurring invoices for clients with ongoing services.
- Turn on payment reminders to notify clients before and after due dates.
- Allow online payments (ACH, credit card, PayPal, or QuickBooks Payments) to speed up collections.
Automating invoicing reduces late payments, improves cash flow, and saves time that would otherwise be spent on manual follow-ups. Businesses that use automated invoices and reminders experience faster payment turnaround times and fewer outstanding receivables.
2. QuickBooks Online Expense Tracking and Receipt Management
Managing expenses is crucial for financial planning and tax compliance. QuickBooks Online allows you to track, categorize, and document all business expenses efficiently.
Steps to Track Expenses in QuickBooks Online:
- Link your business bank and credit card accounts to import transactions automatically.
- Go to Transactions > Expenses and ensure all purchases are correctly categorized.
- Use receipt capture via the QBO mobile app to attach receipts to transactions.
- Set up bank rules to automate the categorization of frequent expenses (e.g., rent, utilities, software subscriptions).
Tracking expenses accurately helps maximize tax deductions, prevent overspending, and improve budgeting.
3. Project Tracking and Profitability Analysis
Many service-based businesses work on client projects, and tracking revenue and expenses for each project is essential for profitability analysis. QuickBooks Online provides built-in project tracking, allowing businesses to monitor project-based finances efficiently.
How to Use Project Tracking in QuickBooks Online:
- Enable Projects under Settings > Account and Settings > Advanced.
- Navigate to Projects and create a new project for each client or job.
- Assign invoices, expenses, and billable hours to each project.
- Run Project Profitability Reports to see which jobs are most profitable.
Understanding which projects generate the highest profits helps businesses adjust pricing, manage costs, and make data-driven financial decisions.
4. Time Tracking for Billable Hours
Accurate time tracking is critical for businesses that charge clients based on billable hours. QuickBooks Time (formerly TSheets) integrates with QuickBooks Online, allowing business owners to log hours, track employee time, and ensure accurate invoicing.
Steps to Track Time in QuickBooks Online:
- Enable QuickBooks Time in Settings > Time Tracking.
- Allow employees or contractors to log hours using the QBO time tracking tool.
- Convert time entries into invoices to ensure accurate billing.
Accurate time tracking lets businesses increase revenue by ensuring they account for every billable hour.
5. Financial Reports and Cash Flow Insights
Understanding financial health is crucial for long-term success. QuickBooks Online offers custom financial reports that allow businesses to analyze revenue, expenses, and cash flow.
Key Reports for Service-Based Businesses:
✔️ Profit & Loss Statement – Summarizes business earnings and expenses.
✔️ Balance Sheet – Displays business assets, liabilities, and equity.
✔️ Cash Flow Report – Helps monitor available funds and payment trends.
✔️ Accounts Receivable Aging Report – Tracks unpaid invoices.
These reports help business owners stay profitable, manage expenses, and plan for growth.
Leverage QuickBooks Online for Business Success
At Duncan Fly, we help service-based businesses optimize QuickBooks Online for efficient financial management.
Schedule a Consultation Today
📞 Call: 404.465.4250
📧 Email: s.dinkins@duncanfly.com
📍 Atlanta, GA
Ensure your business is using QuickBooks Online to its full potential. Contact us today.