How To Calculate And Analyze Business Cash Flow

How To Calculate And Analyze Business Cash Flow

Cash flow is one of the most important aspects of running a successful business. But how do you calculate cash flow? And once your cash flow is calculated, what does that tell you about your business?

We’re glad you asked!

Cash flow is the money that comes in and out of your business, so it would be easy to assume that you simply subtract the cash outflows from the cash inflows when calculating cash flow.

While this is the process, in theory, the application is much more complicated. There are several different ways of calculating cash flow, and it can be hard to know which way is best. In this post, we’ll teach you the most common way to calculate cash flow: running a cash flow statement.

We’ll also teach you what a healthy cash flow statement should look like and how to analyze your cash flow using the free cash flow ratio and a cash flow forecast. With these three cash flow calculations in tow, you’ll understand your business’s cash flow in no time.

Let’s get started.

What Is A Cash Flow Statement?

A cash flow statement, or statement of cash flows, is a report that measures the cash coming in and out of your business during a specific period of time. Along with the income statement and balance sheet, the statement of cash flows is one of the most important financial statements in accounting. The cash flow statement shows four different cash flow figures:

  • Operating cash flow
  • Cash flow of investment activities
  • Cash flow of financial activities
  • Net cash flow

You can create a cash flow statement by using Excel or Google Docs, but the easiest way to generate a statement of cash flows is by using accounting software. Most accounting software will do all of the hard work for you. Simply make sure your income and expenses are up-to-date, tell the software to run a cash flow statement, and voila! You have yourself a cash flow statement.

How To Calculate And Analyze Business Cash Flow

You’ll see that the cash flow statement is divided into three sections: cash flow of operation activities, cash flow of investment activities, and cash flow of financial activities. We’ll walk you through each section so you can understand exactly how the cash flow statement works and what it’s telling you about your business.

Still using Excel to run your accounting processes? It may be time to upgrade. Our comprehensive accounting software reviews cover QuickBooks products, Xero, Freshbooks, Sage, and more of the top cloud-based and locally-installed accounting solutions on the market today. If you want a quick peek at the top contenders, check out our accounting software comparison chart.

Using an old version of QuickBooks Pro? Save $100 when you upgrade to QuickBooks Desktop 2018.

Purchase QuickBooks Desktop Pro 2018 Now

Cash Flow Of Operation Activities

Cash flow of operations, or operating cash flow, shows the total cash gained or spent on business operations during a given period. Operating cash flow is used as a key indicator of how efficient and healthy your business is. It is one of the most common (and important) cash flow calculations.

Here are some examples of the operating cash inflows and outflows you can expect to see in the cash flow of operating activities on your statement of cash flows:

  • Inventory purchases
  • Wages
  • Cash received from sales or services
  • Interest earned
  • Rent payments
  • Other operating expenses

Your total operating cash flow is calculated by subtracting the cash outflows directly related to your business operations from the cash inflows directly gained from your business operations.

When you run a statement of cash flows, you’ll see your total operating cash flow expressed under “net cash flow for operating activities.” This amount shows what you made (or lost) on basic business operations. You can use the cash flow of operating activities to:

  • See how much cash you’ve gained from your business operations in a given period
  • Understand which business expenses you’re spending cash on
  • Analyze where to cut back on operating business expenses

Cash Flow of Investment Activities

The cash flow of investment activities shows how much cash you spent on long-term investments and made on long-term investments.

For most businesses, this section of the cash flow statement shows cash spent on purchasing new fixed assets and cash gained from selling fixed assets. (Fixed assets are valuable items owned by your business that have a long-term use.)

Examples of investments that you may see on the cash flow of investment activities section of the cash flow statement include:

  • Purchasing or selling property
  • Purchasing or selling buildings
  • Purchasing or selling equipment
  • Purchasing or selling company vehicles
  • Capital expenditures (CapEx)

Basically, cash flow of investment is affected by any change to your long-term assets — or property, plant, or equipment (PPE) — and any expenses paid to manage current assets (which is referred to as capital expenditures). You total cash flow of investment activities is calculated by subtracting your investment cash outflows from your investment cash inflows.

You can use the cash flow of investment activities to analyze the state of your company’s fixed assets. Lenders and potential investors also use this cash flow ratio to see if your company is growing and investing in your business’s future.

Cash Flow Of Financial Activities

The cash flow of financial activities shows the cash spent and received from financing — or raising capital. Cash flow of financial activities is used to see how much cash you’ve received from loans or investors and how much cash you’ve spent on paying back debts and shareholders.

Here are some examples of the financing cash inflows and outflows you can expect to see in the cash flow of financing activities on your statement of cash flows:

  • Cash received from loans
  • Loan payments
  • Cash received from investors
  • Dividends paid to shareholders
  • Purchasing company stock

Your total cash flow of financing activities is calculated by subtracting the financing cash outflows directly related to financing (like paying past debt and shareholders) from the cash inflows raised from financing (like new loans and cash from investors).

The cash flow of financial activities is important for analyzing whether your business has the cash to pay off its debt or to take on new debt. This is a key cash flow formula for potential lenders and investors as well. Lenders want to see that your business has the means to make payments on your a new loan, and potential investors want to see that your company has the cash to pay back shareholders.

What Does A Good Cash Flow Statement Look Like?

So now that you know what a cash flow statement is and how to run one, how do you know what your cash flow statement means? What does your cash flow statement say about your business’s financial health? What is a good cash flow and when should you be worried about your cash flow?

Don’t worry, your cash flow statement has answers to all of these questions. We already briefly mentioned how each type of cash flow can be used to analyze the health of your business. In this section, we’ll recap each section of the cash flow statement and give you a clearer idea of what a successful business’s cash flow looks like.

1. A Good Net Cash Flow

Your net cash flow appears at the bottom of your statement of cash flows and is a total of your cash flow of operating activities, your cash flow of investment activities, and your cash flow of financial activities. This total will either appear as a net increase in cash flow or a net decrease in cash flow. Ideally, you want a net increase in cash flow, which shows that your company brought in more money than it spent.

While you want a positive cash flow, you may not want your cash flow to be too positive. Seem counterintuitive? Here’s why.

If you have an incredibly high cash flow, that is extra money that you can be (and should be) investing back into your business. It’s important to strike the balance of maintaining a positive cash flow and using that positive cash flow to ensure that your business grows and makes even more money in the future.

2. A Good Operating Cash Flow

Your operating cash flow shows how much money your company is making or losing on everyday business operations. Business operations are the bread and butter of your business, so it makes sense that you want your operating cash flow to be a high, positive number. You always want to see this number increasing over time.

If your operations appear as a net loss instead of a net increase, you may want to reevaluate your business practices. Increase prices, don’t reorder unpopular inventory, streamline processes to save time and money on payroll, incentivize customers to pay their invoices in a timely manner — do whatever it takes to spend less and bring in more so that your business can flourish.

That being said, it’s important to not only know what your operating cash flow is but to analyze why your operating cash flow is negative or positive. There may be some months that you have a negative operating cash flow, and that may not be a bad thing.

Let’s say you’re a seasonal business and you spend a large sum on purchasing inventory to prepare for the holiday season. Because of this, your September cash flow statement shows a net loss on operating cash flow. However, during October, November, and December, you bring in tons of cash selling the inventory you purchased. You wouldn’t have been able to make strong sales or have such a positive cash flow during the holidays without that extra inventory.

In this case, one month of negative cash flow led to three months of incredibly positive cash flow, which was more than worth it. You only have to start worrying if your operating cash flow is negative again and again.

3. A Good Cash Flow Of Investing Activities

Your cash flow of investing activities shows how much money you’ve spent on purchasing and maintain fixed assets and made on selling assets.

Typically, most growing business will have a net loss on cash flow of investing activities. While that may sound ominous, it really means that you are actively investing in new fixed assets to expand your business and replacing old equipment to help your business run more efficiently. This is a good thing.

4. A Good Cash Flow Of Financing Activities

Your cash flow of financing activities shows the cash used to pay off your business’s existing debts and any new financing or loans received.

Generally, you want to see a negative net cash flow from financing activities. This means that you are paying off existing debt and paying dividends to shareholders.

That being said, it is okay to have a net gain in cash flow of financing activities at times. A positive net cash flow of financial activities means your business has gained cash from investors or secured a new business loan. While some business owners may assume that debt is always a bad thing, there are several good reasons for applying for a business loan:

  • To purchase new equipment that will benefit your business
  • To expand your business
  • Purchasing inventory
  • Hiring and training employees

If you can afford to take on a loan, the extra funds may be just what your business needs to succeed. Use the cash flow of financing activities to analyze your business’s financial state and determine what is healthiest for your future.

How To Use The Free Cash Flow Ratio

The free cash flow ratio is one of the most important ratios a business owner should know. While the cash flow statement shows your overall net cash flow, the free cash flow ratio shows the amount of cash that is actually available for your business to use. This ratio is incredibly important for analyzing your business’s financial health.

Free cash flow shows you the amount of the cash left over after paying for your business’s operating expenses (the expenses required to run your business) and capital expenditures (the expenses spent on purchasing and maintaining your fixed assets). You can calculate your free cash flow by using this formula:

Free Cash Flow = Operating Cash Flow – Capital Expenditures

Simply take the net operating cash flow from your cash flow statement and subtract the total capital expenditures for your business.

By using this formula, you can see exactly how much free cash flow your company has to work with. Free cash flow is particularly important when considering taking on a new working capital loan to expand your business. Knowing exactly how much money you have in free cash, on average, can help you determine the loan payments you can afford.

How To Create A Cash Flow Forecast

Another important step in analyzing your business’s cash flow — and, in turn, your business’s health — is to create a cash flow forecast.

A cash flow forecast, also known as a cash flow projection, is an estimation of your future cash inflows and cash outflows over a specific period of time (usually a year). This estimation should be based on past cash flow data or educated guesses on the cash sales and expenses you expect to face in the upcoming year. This helps your cash flow projection to be as accurate as possible.

While cash flow forecasts are beneficial for any business wanting to get a handle on their finances, they are particularly helpful for seasonal businesses. A cash flow forecast can help you pinpoint the months during which cash will be tight and the months during which cash will be plentiful. This way, you can plan to save enough cash to cover expenses during the slow months.

In this way, a cash flow forecast gives you valuable business insight. Additionally, comparing your cash flow projection with your cash flow actuals at the end of the year is an important business practice for seeing if you met your business goals, where your company is excelling, and where it could still improve.

Many accounting software programs have a cash flow forecast report built-in. However, if your accounting software doesn’t have a cash flow projection, you can create one manually by estimating your:

  • Cash sales for each month
  • Expenses for each month
  • Fixed asset investments
  • Debt payments
  • Additional capital

Be as realistic as you can and include any sales or expenses that directly affect your business’s cash. If you don’t want to calculate this all by hand, there are several free cash flow forecast templates available online as well.

What Now?

Cash flow is one of the most important aspects of business. Without a strong, positive cash flow, you won’t be able to stay in business long.

Now that you know how to run a cash flow statement, use the free cash flow ratio, and create a cash flow statement, you can confidently understand your company’s cash flow. You can use all three tools to analyze your business’s cash flow. These tools will let you determine where your business is excelling and where it could be improved, help you figure out if you can afford a loan, and prepare for the lean cash flow months.

After analyzing your business’s finances, you may determine that you need a working capital loan or a line of credit to help you maintain positive cash flow. Read through our detailed small business loan reviews or view our business loan comparison chart to find a lender that works for you. If your business depends on invoices, invoice financing might be more your speed. With invoice financing, it’s possible to get cash for your invoices right away. Learn more about invoice financing in our Merchant’s Guide To Invoice Financing guide and/or check out two of our favorites: BlueVine and Fundbox.

For more information on accounting concepts and strategies, our accounting and bookkeeping blog is a good place to start. We cover everything from double-entry accounting to small business taxes. We also guide you through how to choose small business accounting software. What’s more, our comprehensive accounting software reviews cover QuickBooks products, Xero, Freshbooks, Sage, and more of the top cloud-based and locally-installed accounting solutions on the market today. For a bird’s eye view of the top contenders, check out our accounting software comparison chart.

The post How To Calculate And Analyze Business Cash Flow appeared first on Merchant Maverick.

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What Is Cash Flow?

Have you ever sat by the ocean and watched the tide ebb and flow for hours? If so, you probably know a lot about water flow. As a business owner, though, you should be more focused on cash flow. What is cash flow? We’re glad you asked!

Aptly named, cash flow is the money that flows in and out of your business. Cash flow is the sustainer of life for your business. Without positive cash flow, your business is in serious trouble.

In this article, we’ll teach you everything you need to know about what cash flow is and how it works, the difference between positive and negative cash flow, and how cash flow affects your business.

Cash Flow Definition

Cash flow is the money that comes into and goes out of your business. It is also one of the key indicators of how financially healthy your business is. You may hear people use the terms cash inflow and cash outflow. That may sound complicated, but it’s actually pretty simple:

  • Cash Inflow: Cash that comes into your business (ex. sales, interest earned, etc.).
  • Cash Outflow: Cash that leaves your business (ex. employee paychecks, inventory purchases, etc.).

Cash Flow VS Profit

It’s incredibly important to know the difference between cash flow and profit. A business making a large profit can still go bankrupt if it doesn’t have a strong cash flow. Here’s why.

In accrual accounting, income is recorded when products or services are agreed upon, not when they are paid for. Say you send an invoice of $200 to a customer. Your income account will go up by $200, yes. But your cash accounts don’t go up just because your income or profit accounts have. You still have to wait for your customer to pay their invoice, which sometimes can take months. (Invoices that are not yet received are called “accounts receivable.”)

So if you really want to know how much money your business has on hand, you have to look at your cash flow, not your profit.

Positive VS Negative Cash Flow

Businesses can either have a positive or negative cash flow.

  • Positive Cash Flow: When your business earns more than it spends during a certain period.
  • Negative Cash Flow: When your business spends more than it earns during a certain period.

A positive cash flow indicates that your business is healthy and you have enough cash to pay your employees, cover your business operating expenses, and maybe even expand your business. A negative cash flow indicates that you may have trouble paying for your business expenses and turning a profit.

Generally, positive cash flow is best. However, shy away from automatically assuming that a positive cash flow is good and a negative cash flow is bad. It’s important to know why your cash flow is positive or negative.

In the same way that profit doesn’t always equal cash flow, a positive cash flow doesn’t always imply profit.

For example, say you run a craft store that earns half its income selling supplies and the other half teaching sewing classes. If interest in sewing dies down, you may decide to focus on retail and liquidate (or sell) all of the sewing machines you bought. When you sell your machines, you will see a positive cash flow, but you won’t be earning the other half of your income anymore.

This is just one example of why it’s important to analyze your cash flow so you can truly understand the financial state of your business.

What Is Operating Cash Flow?

Cash flow can be calculated in several different ways. Each way gives you a different insight into your business’s cash flow. One of the most common cash flow calculations you’ll see is operating cash flow.

On the cash flow statement (a report of your business’s cash flow status), there are three different sections:

  • Cash flow of operating activities
  • Cash flow of investment activities
  • Cash flow of financial activities

Cash flow of operating activities and operating cash flow are one and the same. Operating cash flow shows you how much cash you’ve made from your business operations. It’s calculated by subtracting business expenses like payroll and inventory from income generated through sales that have been paid in cash.

What Is Net Cash Flow?

Net cash flow, or total cash flow, is the difference between a business’s cash inflows and cash outflows. Net cash flow is calculated on the cash flow statement by adding the cash flow of operating activities, investment activities, and financial activities together.

What Is Free Cash Flow?

Free cash flow refers to the cash that is actually available to use. Free cash flow shows all of the cash left over after paying for a business’s capital expenditures (capital expenditures are the expenses spent on purchasing or maintaining a company’s assets like buildings or equipment).

When you hear people (especially lenders) talk about free cash flow, you may hear the terms unlevered free cash flow and levered free cash flow.

  • Unlevered Free Cash Flow: Unlevered free cash flow is the free cash flow available before a company pays its debts, interest, and other financial obligations.
  • Levered Free Cash Flow: Levered free cash flow is the free cash flow available after a company pays its debts, interest, and other financial obligations.

Direct VS Indirect Method Cash Flow

There are two different ways of calculating cash flow and presenting the cash flow statement.

Remember how earlier we said that the cash flow statement is divided into three sections: cash flow of operation activities, cash flow of investment activities, and cash flow of financial activities?

The difference between the indirect and direct method is how the operating cash flow appears on the cash flow statement.

  • Direct Method: The direct cash flow method breaks down specific cash inflows and outflows and shows you the cash receipts from customers, cash paid to vendors and suppliers, cash collected from customers, interest earnings, dividends received, paid income tax, and paid interest. Adding these totals together is how the operating cash flow is calculated.
  • Indirect Method: Instead of tracking each type of business operation cash flow, the indirect cash flow method is calculated by taking the net income from a company’s income statement and adjusting the earnings before interest tax (EBIT). It sounds confusing until you remember the difference between cash flow and profit. The net income shows your overall profit — we need to adjust it to show cash flow by subtracting accounts receivable (or invoices that haven’t been paid yet).

While the direct method of calculating cash flow is more detailed, the indirect method is far easier to calculate and more widely used by businesses. The good news? If you’re using accounting software, it does all of the behind the scenes work for you. You’ll just see the total operating cash flow on your cash flow statement.

Don’t have good accounting software yet? Our comprehensive accounting software reviews cover QuickBooks products, Xero, Freshbooks, Sage, and more of the top cloud-based and locally-installed accounting solutions on the market today. If you want a quick peek at the top contenders, check out our accounting software comparison chart.

Using an old version of QuickBooks Pro? Save $100 when you upgrade to QuickBooks Desktop 2018.

Purchase QuickBooks Desktop Pro 2018 Now

Why Cash Flow Is Important

As we mentioned earlier, cash flow is the sustainer of business. Positive cash flow allows you to:

  • Pay your employees
  • Pay rent
  • Purchase inventory
  • Purchase new equipment
  • Grow your business

Essentially, positive cash flow means you can run your business successfully. If you lack cash flow, you will have a hard time operating your business and paying your business expenses on time.

If you consistently have a negative cash flow, you may even be forced to declare bankruptcy. According to the SBA (Small Business Administration), lack of positive cash flow is one of the biggest reasons that businesses fail.

Additionally, both potential lenders and investors take your business’s cash flow into consideration.

Before approving you for a loan, lenders want to see that you have a consistent positive cash flow and that you have the money to make regular payments on a loan.

Potential investors also want to see positive cash flow, which indicates that your company is financially stable and that they are likely to receive shareholder payments if they support your company.

Final Thoughts

You may have come into this article assuming that focusing on profit is the best thing you can do for your business. In the end, however, it all comes down to cash flow.

Without an understanding of cash flow, you won’t be able to run a business successfully. Nor will you be able to apply for funding from potential lenders to grow your business in the future. Pay attention to the cash flow reports in your accounting software, and you’ll be well on your way to maintaining positive cash flow and increasing overall profitability.

After analyzing your business’s finances, you may determine that you need a working capital loan or a line of credit to help you maintain positive cash flow. Read through our detailed small business loan reviews or view our business loan comparison chart to find a lender that works for you. If your business depends on invoices, invoice factoring might be more your speed. With invoice factoring, it’s possible to get cash for your invoices right away. Learn more in the Basic Introduction to Invoice Factoring and/or check out two of our favorite invoice factors: BlueVine and Fundbox.

For more information on accounting concepts and strategies, our accounting and bookkeeping blog is a good place to start. We cover everything from double-entry accounting to small business taxes. We also guide you through how to choose small business accounting software. What’s more, our comprehensive accounting software reviews cover QuickBooks products, Xero, Freshbooks, Sage, and more of the top cloud-based and locally-installed accounting solutions on the market today. For a bird’s eye view of the top contenders, check out our accounting software comparison chart.

The post What Is Cash Flow? appeared first on Merchant Maverick.

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How To Order QuickBooks Checks And Supplies

Most people know that QuickBooks offers accounting software, but did you know that the company also sells checks, tax forms, stamps, and even pens?

Believe it or not, QuickBooks can be your one-stop shop for business checks and office supplies. And best of all, you can print the checks directly from your QuickBooks software. Keep reading to learn more about how to order checks from QuickBooks, how to buy tax forms from QuickBooks, and what other office supplies QuickBooks offers.

Order Checks, Tax Forms & Other Supplies From QuickBooks

Products Offered

QuickBooks offers a wide array of business supplies. You can purchase the following product online using the Intuit marketplace:

  • Checks
  • Tax forms
  • Envelopes
  • Deposit slips
  • Self-inking stamps
  • Point of sale supplies
  • Laser & inkjet labels
  • Check binders
  • Printable business forms
  • Security pens

We’ll cover the specific products and their prices in each of the following sections.

Checks

QuickBooks offers five different types of checks:

  • Voucher checks
  • Standard business checks
  • Wallet checks
  • Office and away checks
  • Personal checks

You can customize QuickBooks checks by adding your business name and phone number. Choose between three and five different colors, depending on the check type. Add an additional line for extra business information and up to two signature lines to meet your business’s needs.

You can order all checks from the Intuit Market. Once the checks are sent to you, you can print them directly from compatible QuickBooks programs. Here’s a breakdown of each type of check and how much they cost.

Voucher Checks

Getting Started With QuickBooks Checks And Supplies

A voucher check is a standard-sized check accompanied by two pay stubs, making it ideal for payroll and accounts payable. Intuit offers three types of vouchers checks that vary by level of security. Each check is compatible with laser and inkjet printers and all supported versions of QuickBooks.

  • Basic Voucher Checks: Start at $36.99 for 50 checks.
  • Secure Plus Voucher Checks: Start at $66.99 for 50 checks. Adds security features like ink tampering prevention.
  • Secure Premier Voucher Checks: Start at $72.99 for 50 checks. Adds hologram for max security.

Visit the Intuit marketplace to purchase voucher checks for QuickBooks.

Standard Business Checks

Getting Started With QuickBooks Checks And Supplies

Intuit’s standard business checks are your typical, everyday business checks. Intuit offers types of standard checks that vary by level of security. Each is compatible with laser and inkjet printers and all supported versions of QuickBooks. However, standard business checks are not compatible with Intuit Online Payroll (see voucher checks instead). Intuit also offers manual standard checks that you can fill out by hand.

  • Basic Standard Business Checks: Start at $102.99 for 250 checks.
  • Secure Plus Standard Business Checks: Start at $56.99 for 50 checks. Adds security features like ink tampering prevention.
  • Secure Premier Standard Business Checks: Start at $61.99 for 50 checks. Adds hologram for max security.
  • Manual Business Checks: Start at $58.99 for 300 checks. Detachable standard checks come with check stubs to record additional information.

Visit the Intuit marketplace to find the best deals on business checks.

Wallet ChecksGetting Started With QuickBooks Checks And Supplies

With these checks, it’s all in the name. Intuit’s wallet checks fit perfectly in a wallet and come with a check stub to record additional information. There are two types of wallet checks that vary by level of security. Each is compatible with QuickBooks Desktop or Quicken 2006 +. Wallet checks are not compatible with QuickBooks Online.

  • Basic Wallet Checks: Start at $87.99 for 250 checks.
  • Secure Plus Wallet Checks: Start at $43.99 for 50 checks. Adds security features like ink tampering prevention.

Visit the Intuit Marketplace to purchase QuickBooks wallet checks.

Office & Away ChecksGetting Started With QuickBooks Checks And Supplies

Intuit’s Office & Away checks are a hybrid between standard checks and manual checks. You can either print checks directly from QuickBooks when you’re in the office or handwrite checks when you’re out of the office. Office & Away checks are compatible with laser and inkjet printers and QuickBooks Desktop; they are not compatible with QuickBooks Online or Intuit Payroll (see voucher checks for payroll).

  • Office & Away Checks: Start at $90.99 for 250 checks.

Visit the Intuit Marketplace to purchase Office & Away checks for your business.

Personal ChecksGetting Started With QuickBooks Checks And Supplies

In addition to business checks, Intuit offers personal checks as well. There is only one type of personal check — the Secure Plus Personal Check — which comes with built-in security features like chemically reactive paper to prevent check alterations. QuickBooks personal checks are not compatible with software like QuickBooks or Quicken and are not compatible with printers.

  • Secure Plus Personal Checks: Starts at $39.99 for one box, which contains 120 duplicate checks.

Visit the Intuit Marketplace to find the best deal on personal checks.

Tax Forms

You can purchase four different types of tax forms directly from Intuit:

  • W-2s
  • W-3s
  • 1096s
  • 1099-MISCs

One of the biggest perks of using QuickBooks software is the tax support available with both QuickBooks Desktop and QuickBooks Online.  QuickBooks Desktop allows you to prepare and print w-2s, W-3s, 1099-MISCs, and 1096s, and with the QuickBooks Online Plus plan you can prepare and print 1099-MISCs and W-2s directly from the software.

Most users will need to purchase these forms from Intuit in order to print and file their taxes, although certain QuickBooks payroll plans include these forms with the cost of the monthly payroll subscription (read our QuickBooks Desktop Payroll Pricing And Features post to see if your tax forms are included or not). Here are the current tax form offerings (note: prices may vary depending on the tax year).

W-2sGetting Started With QuickBooks Checks And Supplies

A W-2 form is an IRS tax form that indicates an employee’s wages and withheld taxes for the tax year. Employers are required to fill out a W-2 form for every individual employee they have (or had) during the tax year. Intuit offers two different W-2 kits to help employer’s successfully complete their W-2s. The price for each option depends on the number of forms needed.

  • Pre-Printed W-2 Kit: Starts at $57.99 and includes four free W-3s and custom W-2 envelopes. Compatible with laser or inkjet printers and QuickBooks Desktop users with Basic or Enhanced Payroll. Not compatible with QuickBooks for Mac, QuickBooks Online, QuickBooks Desktop Payroll Full Service, or QuickBooks Online Payroll.
  • Laser W-2 Blank Perforated Paper & Envelope Kit: Starts at $23.99 and includes blank, perforated W-2 paper and custom W-2 envelopes. Compatible with QuickBooks Online, QuickBooks Payroll, QuickBooks Online Payroll Full Service, and supported version of QuickBooks Desktop.

Visit the Intuit MarketPlace to easily order W-2 tax forms for your business.

W-3sGetting Started With QuickBooks Checks And Supplies

A W-3 form is an IRS tax form that indicates the total wages and taxes withheld for all employees of a company during the tax year. If you purchase the Pre-Printed W-2 Kit, then you will already receive four free W-3 forms; otherwise, you can purchase them directly from Intuit.

  • W-3 Forms: Start at $17.99 for 10 preprinted W-3 forms. Not compatible with QuickBooks for Mac or QuickBooks Online.

Visit the Intuit MarketPlace to order W-3 tax forms.

1099-MISCsGetting Started With QuickBooks Checks And Supplies

A 1099-MISC form is an IRS form that reports wages paid to an individual who is not an employee at your company, such as an independent contractor.  As the employer, you’ll need to file a 1099-MISC for any contractors you’ve paid more than $600 during the tax year. You can purchase these forms directly from Intuit and prepare and print them directly from QuickBooks. Prices vary by state and depending on the number of forms you need.

  • 1099 Kit: Ranges from $58.99 – $83.99 for 10 pre-printed 1099-MISC forms and includes four free 1096 forms and custom 1099 envelopes (price varies by state). Compatible with QuickBooks Online, and supported version of QuickBooks Desktop and QuickBooks Mac.

Visit the Intuit MarketPlace to order 1099 tax forms.

1096sGetting Started With QuickBooks Checks And Supplies

A 1096 form is an IRS form that records all of the wages paid to all independent contractors and self-employed individuals a company hired during the tax year. If you purchase the 1099 Kit, then you will already receive four free 1096 forms; otherwise, you can purchase them directly from Intuit.

  • 1096 Forms: Start at $17.99 for 10 1096 forms. Compatible with QuickBooks Online Plus, QuickBooks Mac 2013 or later, and QuickBooks Desktop 2013 or later.

Visit the Intuit MarketPlace to order 1096 tax forms.

Envelopes

You can purchase envelopes for your checks, tax forms, and more directly from Intuit. While you could buy envelopes from anywhere, Intuit envelopes are specifically designed to fit your Intuit checks and tax forms, which adds an added layer of security to important mail. Here are the various business envelopes offered and how much they cost.

Standard & Voucher Check EnvelopesGetting Started With QuickBooks Checks And Supplies

According to QuickBooks:

Standard-sized business envelopes don’t fit standard sized checks. Envelopes can be too large, potentially allowing sliding inside the envelope that can compromise security or partially obstruct information.

This is why Intuit sells envelopes that are created to fit their standard and voucher checks perfectly. There are two types of standard/voucher envelopes that vary by level of convenience.

  • Standard/Voucher & Payroll Check Envelopes: Start at $68.99 for 250 envelopes. Includes double address windows.
  • Self-Seal Voucher Check Envelopes: Start at $30.99 for 50 envelopes. Fits both standard and voucher checks. Includes self-adhesive flaps and double address windows. Compatible with most postage machines.

Visit the Intuit MarketPlace to order standard check and voucher check envelopes.

Wallet Check EnvelopesGetting Started With QuickBooks Checks And Supplies

Wallet check envelopes are designed specifically to fit Intuit’s wallet checks. There are two types of wallet checks that vary by size.

  • Wallet Check Envelopes: Start at $49.99 for 250 envelopes. Includes double address windows. Specifically designed to fit wallet checks.
  • Wallet Plus Check Envelopes: Start at $54.99 for 250 envelopes. This standard sized envelope includes a pocket designed specifically for wallet checks, so you can send both wallet checks and additional documents simultaneously.

Visit the Intuit MarketPlace to order wallet check envelopes.

Form EnvelopesGetting Started With QuickBooks Checks And Supplies

In addition to purchasing envelopes that fit Intuit’s checks, you can also purchase envelopes that perfect fit your Intuit tax forms, including W-2s, W-3s, 1096s, and 1099-MISCs. These envelopes are designed to align perfectly with the Intuit tax forms to ensure that your confidential tax information stays secure. There are three different type of form envelopes available. Each is compatible with Intuit’s pre-printed tax forms or any other forms printed on standard printer paper.

  • Forms Envelopes: Start at $68.99 for 250 envelopes. Includes double address windows.
  • Single Window Form Envelopes: Start at $73.99 for 250 envelopes. Includes a single address window. You can order them to be pre-printed with your company address. Adding a company logo or custom ink color costs extra.
  • Self-Seal Form Envelopes: Start at $75.99 for 250 envelopes. Includes self-adhesive flaps and double address windows. Compatible with most postage machines.

Visit the Intuit MarketPlace to order from envelopes for your small business.

Business Reply EnvelopesGetting Started With QuickBooks Checks And Supplies

You can purchase a custom, pre-printed return envelope from Intuit. Adding a return envelope to your invoices can help your company appear more professional and make it easier for your customers to send you their invoice payments (and anything you can do to increase the chances of your invoices getting paid is worth it). Intuit’s business reply envelopes also work with their Remittance Statements (which we’ll cover later). Here’s how much they cost.

  • Business Reply Envelopes: Start at $54.99 for 250 envelopes. You can order them to be pre-printed with your company address.

Visit the Intuit MarketPlace to start sending business reply envelopes with your invoices.

Large Mailing EnvelopesGetting Started With QuickBooks Checks And Supplies

Additionally, you can purchase large mailing envelopes for large stacks of paper or for forms and documents that you do not wish to bend. These envelopes come in white or golden brown (think classic manila envelope).

  • Large Mailing Envelopes: Start at $90.99 for 100 envelopes. You can order them to be pre-printed with your company address. Adding a company logo or custom ink color costs extra.

Visit the Intuit MarketPlace to order large mailing envelopes.

Deposit SlipsGetting Started With QuickBooks Checks And Supplies

Deposit slips are used by some businesses to track the funds deposited into a specific bank account. Deposit slips can be helpful when verifying your accounting records with your monthly bank statement. If your business is in the habit of using deposit slips (or if you’d like to start), you can purchase them directly from Intuit. Intuit offers two different types of deposit slips as well as a deposit slip bag. Here’s how much each item costs.

  • Printable Deposit Slips: Start at $68.99 for 250 deposit slips with up to 18 entries per slip. Prepare and print directly from QuickBooks. Compatible with QuickBooks Mac 2007 or higher and supported versions of QuickBooks Desktop.
  • Booked Manual Deposit Slips: Start at $43.99 for 200 deposit slips with up to 18 entries per slip. For manual entry. Available in 2- or 3-copy carbonless options. Can order your business name and account number to be pre-printed on the slips.
  • Bank Deposit Bag: Starts at $12.99 for 25 deposit bags. Disposable and recyclable bag with removable numbered receipts and built-in security features.

Visit the Intuit MarketPlace to order deposit slips for your business.

Stamps

Whether it’s addressing envelopes, marking invoices as past due, or indicating which documents need filing, Intuit offers 14 self-inking maps to make your business processes run smoother. These affordable business stamps are easy to use and can save your company valuable time. In addition to the stamps, Intuit also offers ink-pad refills for whenever you might need them.

Self-Inking Business Stamps

As we mentioned above, Intuit offers 14 stamps ranging from $13.99 to $35.99 each. Here are all of the business stamps available.

  • Endorsement Stamp: Costs $35.99 and is ideal for quickly getting checks ready to deposit.
  • Return Address Stamp: Costs $35.99 and comes with up to five lines of text.
  • Return Address Stamp With Monogram: Costs $35.99 and Getting Started With QuickBooks Checks And Suppliescomes with up to five lines of text and a monogram letter.
  • Fax Header Cover Stamp: Costs $35.99 and is ideal for quickly creating a fax header to record fax information.
  • Getting Started With QuickBooks Checks And SuppliesSecurity Stamp: Costs $21.99 and is created to “obscure sensitive information on checks, forms, legal documents, packages, and mail.”
  • Copy Stamp: Red ink stamp that says “copy” and costs $13.99.
  • Past Due Stamp: Red ink stamp that says “past due” and costs $13.99. Ideal for invoices.
  • Draft Stamp: Red ink stamp that says “draft” and costs $13.99.Getting Started With QuickBooks Checks And Supplies
  • File Stamp: Red ink stamp that says “file” and costs $13.99.
  • Void Stamp: Blue ink stamp that says “void” and costs $13.99. Ideal for voided checks.
  • Paid Stamp: Red ink stamp that says “paid” and costs $13.99. Ideal for invoices.
  • Confidential Stamp: Red ink stamp that says “confidential” and costs $13.99.Getting Started With QuickBooks Checks And Supplies
  • Faxed Stamp: Red ink stamp that says “faxed” and costs $13.99.
  • Urgent Stamp: Red ink stamp that says “urgent” and costs $13.99.

Visit the Intuit MarketPlace to order business stamps.

Point Of Sale Supplies

If you use QuickBooks Point of Sale (see our review) there are several items you can purchase to manage your business and sales. Intuit offers everything from pricing labels to receipt tape to jewelry tags and more. See what point of sale supplies Intuit has to offer and how much they cost below.

Pricing Labels

Getting Started With QuickBooks Checks And Supplies

If you need a quick and efficient way your items, you can print pricing labels directly from QuickBooks POS using a compatible printer. These labels are adhesive for easy tagging and come in two separate sizes.

  • Price Label 1.2″ x 0.85″: Costs $79.99 for one case of pricing labels, which comes with 12 rolls per case and 15,000 labels per roll. Compatible with the QuickBooks POS Tag Printer. Ideal for smaller items.
  • Price Label 2.25″ x 1.25″: Costs $79.99 for one case of pricing labels, which comes with 12 rolls and 1,135 labels per roll. Compatible with the QuickBooks POS Tag Printer. Ideal for larger items.

Visit the Intuit MarketPlace to order QuickBooks pricing labels.

Receipt Paper

Getting Started With QuickBooks Checks And Supplies

You can also purchase receipt paper directly from Intuit. QuickBooks receipt paper is compatible with QuickBooks POS printer, the Star TSP143, and the Star TSP613.

  • Point Of Sale Paper Rolls: Costs $29.99 for 10 rolls. Each roll is 220 feet long.

Visit the Intuit MarketPlace for a great deal on receipt paper.

Pricing TagsGetting Started With QuickBooks Checks And Supplies

In addition to pricing labels, Intuit also sells pricing tags for unique items like jewelry.

  • Printable Hang Tags: Costs $104.97 per case of thermal printed hang tags, with 12 rolls per case and 967 labels per roll. Ideal for “purses, clothing, and other fabric items.” Compatible with supported versions of QuickBooks POS and QuickBooks POS Tag Printer.
  • Jewelry Tags With Flap: Costs $104.99 for four rolls of waterproof jewelry tags, with 2,490 labels per roll. Includes adhesive flaps that allow you to price items without getting sticky adhesive on them. Compatible with supported versions of QuickBooks POS and QuickBooks POS Tag Printer.

Visit the Intuit MarketPlace to order pricing tags for your retail company.

Labels

You can also purchase printable labels directly from the Intuit MarketPlace. You can use these labels for a variety of purposes, whether it’s preprinting potential lead addresses for a new marketing campaign or printing file folder names to get your business organized. Here’s all that Intuit has to offer:

Printable Business LabelsGetting Started With QuickBooks Checks And Supplies

Intuit offers printable, adhesive labels in various sizes. Each set of labels starts at $40.99. These labels are compatible with laser and inkjet printers. You can design and print the labels straight from QuickBooks Desktop or by using Avery. Not compatible with QuickBooks Online.

  • 1″ x 4″ Labels: Cost $40.99 for 100 sheets with 20 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5161 and #8161.
  • 1 1/3″ x 4″ Labels: Cost $40.99 for 100 sheets with 14 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5162.
  • 2″ x 4″ Labels: Cost $40.99 for 100 sheets with 10 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5163.
  • 3 1/3″ x 4″ Labels: Cost $40.99 for 100 sheets with 6 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5164.
  • 1″ x 2 5/8″ Labels: Cost $40.99 for 100 sheets with 30 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5160 and #8160.
  • 1/2″ x 1 3/4″ Labels: Cost $40.99 for 100 sheets with 80 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5167.

Visit the Intuit MarketPlace to order printable labels for all of your business needs.

Shipping Manager LabelsGetting Started With QuickBooks Checks And Supplies

QuickBooks also offers adhesive labels specifically designed for overnight, express, or ground shipping. These labels are compatible with laser and inkjet printers and integrate with both QuickBooks Desktop and QuickBooks Shipping Manager. Not compatible with QuickBooks Online.

  • QuickBooks Shipping Manager Labels: Cost $40.99 for 100 sheets, with two labels per sheet.

Visit the Intuit MarketPlace to order shipping labels.

File Folder LabelsGetting Started With QuickBooks Checks And Supplies

In addition to the above labels, Intuit also offers labels that are specifically designed to fit your file cabinet folders to help you stay organized. These labels are compatible with laser and inkjet printers. You can design and print the labels straight from QuickBooks Desktop or by using Avery. Not compatible with QuickBooks Online.

  • 2/3″ x 3 7/16″ File Folder Labels: Cost $40.99 for 100 sheets, with 30 labels per sheet. Compatible with laser and inkjet printers as well as Avery #5366.

Visit the Intuit MarketPlace to order file folder labels and start getting organized today.

Business Forms

While both QuickBooks Desktop and QuickBooks Online offer an incredible number of reports, there are some important business forms that you may want to mail your customers. That’s why QuickBooks offers nine additional business forms. Check out all of the forms QuickBooks offers and how much they cost.

StatementsGetting Started With QuickBooks Checks And Supplies

QuickBooks statement forms allow you to keep your customers up to date on their financial obligations and history with your company. There are three business statement forms in total. You can print each directly from QuickBooks Desktop. Compatible with laser and inkjet printers.

  • Customer Billing Statements: Start at $64.99 for 250 statements. Ideal for updating customers on their account.
  • Remittance Statements: Start at $88.99 for 250 statements. Ideal for tracking accounts receivable.
  • Blank Remittance Statements: Start at $40.99 for 250 statements.

Visit the Intuit MarketPlace to check out a good deal on business forms.

InvoicesGetting Started With QuickBooks Checks And Supplies

For companies wishing to send invoices by mail in addition to or instead of sending invoices online, there’s the option to buy preprinted invoice templates directly from Intuit. There are three invoice styles that you can customize to fit your business’s needs. You can print the invoice’s details onto each invoice directly from QuickBooks Desktop. Compatible with laser and inkjet printers. Price varies depending on the number of invoices purchased and the number of sheets per invoice.

  • Product Invoices: Starts at $88.99 for 250 invoices. Available in single, duplicate, triplicate, or quadruplicate. Ideal for product-based businesses.
  • Service Invoices: Start at $88.99 for 250 invoices. Available in single, duplicate, or triplicate. Ideal for service-based businesses.
  • Professional Invoices: Start at $88.99 for 250 invoices. Available in single and triplicate.

Visit the Intuit MarketPlace to order QuickBooks 1096 tax forms.

Multi-Purpose FormsGetting Started With QuickBooks Checks And Supplies

The multi-purpose form, as you may have guessed, has multiple potential uses. Intuit says that you can use these forms to:

Send estimates, credit memos, or purchase orders on professional-looking correspondence.

There are two multi-purpose forms available. Each can be printed directly from QuickBooks and are compatible with laser and inkjet printers.

  • Multi-Purpose Forms: Start at $88.99 for 250 forms. Available in single, duplicate, or triplicate.
  • All Purpose Form With Peel-Off Label: Start at $46.99 for 250 forms. Includes adhesive label so you can prepare reports and packing slips simultaneously.

Visit the Intuit MarketPlace to order multi-purpose business forms now.

Form LeadersGetting Started With QuickBooks Checks And Supplies

The form leader helps you easily print “leftover” standard or wallet checks. You simply attach a remaining check to the form leader and print using compatible laser and inkjet printers. This saves you both time and money and ensures all leftover checks are used and printed properly.

  • Form Leaders: Costs $19.99 for 10 from leaders. Each form leader is good for up to 40 uses.

Visit the Intuit MarketPlace to order a form leader for your standard or wallet-sized checks.

Other

Finally, Intuit also offers a few miscellaneous business items to help your office stay organized and run smoothly. Here are the final three products you can find within the Intuit MarketPlace.

BindersGetting Started With QuickBooks Checks And Supplies

Intuit offers two type of binders to help you keep your business checks organized. In addition to keeping your checks in order, these binders can also help you appear more professional and put together. Here’s how much they cost.

  • Office & Away Checkbook Binder: Costs $69.99 and is designed to hold up to 75 office and away checks. Includes “a handy check register, a business card pocket, a place to store important documents, and a convenient pen holder.”
  • 7-Ring Manual Check Binder: Costs $30.99 and is designed to hold manual business checks. Available in burgundy or black.

Visit the Intuit MarketPlace to order a professional business binder.

PensGetting Started With QuickBooks Checks And Supplies

Intuit pens are specifically designed to ensure that your checks remain secure. They have unwashable ink and leave indent marks on paper to prevent check fraud.

  • QuickBooks Super Ink Security Pen: Costs $10.99 for five pens. Includes a comfortable textured grip and black ink.

Visit the Intuit MarketPlace to order a secure check pen.

Get Shopping

Now you officially know all of the business checks and office supplies available to you through the Intuit MarketPlace. The Intuit MarketPlace is a great way to find business checks, personal checks, tax forms, check envelopes, invoices, business labels, and more. You may even receive a discount for purchasing certain items like checks and envelopes together.

Once you place your order, Intuit says that most items will be shipped in 49 hours, though some custom items may take up to six days to ship.

You can always call Intuit Checks & Supplies support at (866) 570-3842 or start shopping now.

Shop For QuickBooks Checks & Supplies Now

Using an old version of QuickBooks Pro? Save $100 when you upgrade to QuickBooks Desktop 2018.

Purchase QuickBooks Desktop Pro 2018 

 

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How To Set Up QuickBooks Payroll

How To Set Up QuickBooks Payroll

QuickBooks offers incredibly in-depth payroll features. This ensures proper payroll procedures and IRS tax compliance, but it also makes for a long setup process. But don’t worry. We’ll walk you through how to set up your QuickBooks payroll in 20 simple steps.

How To Set Up Payroll

Before you begin setting up QuickBooks payroll, there are three things you must have:

  1. Enough Time
  2. The Proper Documents
  3. Your Payroll Service Key

First things first. Make sure you have adequate time to set up payroll properly. Here is a chart QuickBooks created to give you an estimate of how much time you need to set up your payroll:

How To Set Up QuickBooks Payroll

You’ll also want to download QuickBooks’ Payroll Setup Checklist and gather the proper documentation. Tracking down all of the information and gathering the documents may take some time, but having everything you need in one spot saves you tons of time in the long run. (There is also a helpful Payroll Getting Started Guide if you want additional assistance.)

After you purchase QuickBooks Payroll, you should be given a payroll service key via email. If not, call QuickBooks to receive your service key so you can begin setting up QuickBooks Desktop Payroll.

Now, sit down with a good chunk of time, all of the documents you need, your service key, and a big cup of Joe. We’re ready to go!

Step 1: Enter You EIN

To begin, go make sure you’ve entered your EIN into QuickBooks. You most likely did this already when setting up your QuickBooks Desktop software, but just in case, go to Company>My Company and then click on the Customer Information tab to make sure your EIN is correctly entered into QuickBooks. Click “OK” when done.

(If you don’t have an EIN, you may want to consider getting a business EIN, but you can also enter an SSN if that’s how the IRS identifies your tax filings. If you aren’t sure which is better for your business, consult your accountant or a business advisor.)

How To Set Up QuickBooks Payroll

Step 2: Add Payroll Service Key

Verify that your QB license number and EIN are popping up correctly. Then click “Add” in the bottom left-hand corner.

How To Set Up QuickBooks Payroll

Step 3: Enter Service Key

Remember that service key we mentioned earlier? Enter that number now and click “Next.” Call QuickBooks payroll support if you are unsure of your service key.

How To Set Up QuickBooks Payroll

Step 4: Confirm Your Payroll Subscription

Next, you’ll need to confirm that you are adding a payroll subscription to your computer. QuickBooks will ask: “Do you want to add your subscription to this machine?” Answer “Yes” to continue.

How To Set Up QuickBooks Payroll

Step 5: Download QuickBooks Payroll

On this page, select the “Open Payroll Setup – I want to start right away” option if you want to start setting up payroll after downloading the software. Click “Finish” to download QuickBooks Desktop Payroll.

How To Set Up QuickBooks Payroll

Step 6: Install QuickBooks Payroll

You should see a box like the one below pop up. This means that payroll has been successfully added and is now being installed. Wait while QuickBooks finishes installing payroll. This process usually only takes a few minutes.

How To Set Up QuickBooks Payroll

Step 7: Restart QuickBooks

Once QuickBooks Payroll has been installed on your computer, this warning box will pop up. Click “OK” and restart QuickBooks so that you can be sure that your software has been updated correctly.

How To Set Up QuickBooks Payroll

Step 8: Select Payroll Setup Method

Once you’ve restarted QuickBooks, go to Employee>Payroll Setup to properly configure your payroll. First, you’ll be asked if your employees have previously received paychecks from your business. If the answer is no, you’ll also have to determine whether employees need to be paid today.

For our sample company, we clicked “No.” A section popped up on the left with all the payroll setup sections we need to complete. If you’re an existing business who clicked “Yes,” your “First Paychecks” section will be replaced with a “Year-to-Date Payroll” section where you can add past paychecks and previous business history by following the payroll setup wizard.

How To Set Up QuickBooks Payroll

Step 9: Select Company Setup Method

QuickBooks will now ask you if you want to use the “Typical new employer setup” or “Customer setup” method. For the typical new setup, “QuickBooks automatically provides all the pay types and benefits commonly needed by new employers,” while the custom setup adds the ability to customize your benefits. QuickBooks advises:

Choose Custom setup if you need to set up sick time, vacation time, or insurance benefits.

We are going to choose the “Typical new employer setup” method, but you can choose “Custom setup” and follow the setup wizard, or you can go back and add custom benefits at a later time. Select your setup method, and click “Continue.”

How To Set Up QuickBooks Payroll

Step 10: Update Employee Information

If you haven’t added employees into QuickBooks, now is the time. Click “Add New…” in the bottom left-hand corner to get started.

If you have already added employees into QuickBooks, you’ll want to verify that all of their contact information and tax information is correct. On the screen below, you’ll see that QuickBooks puts a warning symbol next to employees with missing information and a red X next to employees that have an error in their information. To update or edit employee information, select the employee and click “Edit” at the bottom of the screen.

How To Set Up QuickBooks Payroll

Step 11: Enter Employee’s Contact Information

Begin by entering their contact information, including their legal name, employee status, and address. Then click “Next.”

How To Set Up QuickBooks Payroll

Step 12: Enter Employee’s Hiring Information

Add your employee’s hiring information, including their employee type, SSN, hire date, release date (if applicable), birth date, and gender. Then click “Next.”

How To Set Up QuickBooks Payroll

Step 13: Enter Employee’s Wages

Enter information regarding your employee’s wages. Information will vary depending on whether your employee is salaried or paid hourly.

If you chose the “typical new user setup” process, QuickBooks will already have auto-populated wage types like “double-time,” “bonus,” and “commission.” Click on the items that apply to your employee and enter the wage amount. If you are using the “custom setup” option, here is where you can add benefits like “vacation” and “sick pay.” Click “Next” when everything looks correct.

How To Set Up QuickBooks Payroll

Step 14: Sign Employee Up For Direct Deposit

If you want to pay your employee via direct deposit, you can set direct deposit up here or you can come back and do so at a later time. We’ll cover how to set up direct deposit in more detail later on in this post, so for now, we’re going to click “Next.”

How To Set Up QuickBooks Payroll

Step 15: Enter Employee Tax Information

Select the state in which your employee is subject to taxes. If you are unsure of the proper tax settings at any time, click the blue “Explain” hyperlink for more information. Also, answer whether or not your employee has lived or worked in another state while employed by you. Then click “Next.”

How To Set Up QuickBooks Payroll

Step 16: Enter Employee’s Federal Tax Information

Use your employee’s W-4 form to find and enter the following information: filing status, allowances, extra withholding, nonresident alien withholding, and HIRE Act Exemption. Also select whether or not your employee is subject to Medicare, social security, federal unemployment, and/or advance earned income credit.

Again, click the blue “Explain” hyperlink at any time for more information, or contact your tax advisor or a QuickBooks support representative for extra support. Click “Next” when done.

How To Set Up QuickBooks Payroll

Step 17: Enter Employee’s State Tax Information

Next, enter similar information regarding your employee’s state tax information. If your employee is subject to any special local taxes (other than those listed above), you will be prompted to add additional information. Click “Next” when this page is completed.

How To Set Up QuickBooks Payroll

When you click next, you’ll be taken to a page where you can enter any additional state tax information. Click “Next” when ready. Then click “Finish.”

How To Set Up QuickBooks Payroll

Step 18: Review Employee List

Repeat steps 10-18 until all of your employees are successfully added into QuickBooks. Once you’re done, review your employee list and click “Continue.”

How To Set Up QuickBooks Payroll

Step 19: Create Paychecks

Next, you have two choices: “create paychecks and finish tax setup later” or “continue to tax setup.”

The tax setup process varies depending on your business’s tax obligations and pay schedule. You can print and follow step by step tax instructions to complete this section. Or, you can come back later and add in your tax information. For now, we are going to move on and create paychecks.

How To Set Up QuickBooks Payroll

Step 20: View Payroll Center

You have now officially set up payroll! (Mostly.) You may need to finish adding your tax information in the future, but for now, you can take pride knowing your payroll is up and running.

At this point, I highly recommend taking a look at the Payroll Center to see everything that QuickBooks Payroll is capable of.

How To Set Up QuickBooks Payroll

For example, in addition to letting you run payroll, QuickBooks also helps with payroll taxes. If you go to your Payroll Center and click on the “Pay Liabilities” and “File Forms” tabs, you can see all of the tax features QuickBooks helps with.

How To Set Up QuickBooks Payroll

As you can see in the pictures, the QuickBooks Payroll Liabilities center shows you how much you owe in payroll liabilities, how to manage liabilities, adjust liabilities, and make payments on payroll liabilities. The File Forms center shows you which forms to file and if they’re due quarterly or annually, how to order tax forms, e-file, and more.

If you have any questions about the payroll setup process or your payroll liabilities, contact QuickBooks payroll support or download the QuickBooks Payroll Getting Started Guide. If you have any other questions, leave a comment below and we’ll do our best to address it.

How To Run Payroll

How To Write And Print Payroll Checks

How To Use Direct Deposit

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How To Run Payroll Reports In QuickBooks

How To Run Payroll Reports In QuickBooks

One of the best parts about QuickBooks Desktop is the number of reports the software offers. The payroll and employee reports are particularly helpful for reviewing your business’s payroll and analyzing your financial state. Luckily, running the reports is also a piece of cake. Here’s how it’s done.

Payroll Reports In QuickBooks

There are 13 payroll and employee reports total in QuickBooks Pro. You can use the software to run the following reports:

  • Payroll Summary
  • Payroll Item Detail
  • Payroll Detail Review
  • Payroll Transactions by Payee
  • Payroll Transaction Detail
  • Payroll Liability Balances
  • Payroll Item Listing
  • Employee Earnings Summary
  • Employee State Taxes Detail
  • Employee Pay Adjustments History
  • Employee Contact List
  • Employee Withholding
  • Paid Time Off List

How To Run Payroll Reports In QuickBooks

To run a report, go to Employee>Payroll Center>Reports. Then click the “Report Center” option.

You’ll then be taken to screen like the one below where you will see every report that QuickBooks offers.

Step 1: Click On “Employees & Payroll”

Go to the “Employees & Payroll” tab and search for the desired report.

Step 2: Select The Report

Once you find the report you wish to view, click the green “Run” button to view the report.

How To Run Payroll Reports In QuickBooks

Step 3: View Your Report

Once you run your report, you can view, customize, print, email, or download the report into Excel.

How To Run Payroll Reports In QuickBooks

Repeat the process to view another report. The process is the same for each report in QuickBooks.

Now that you know how to run payroll reports, you can analyze your payroll history and employee’s working patterns to better run your business.

If you have any troubleshooting issues, check out the QuickBooks Payroll Help Centers or call QuickBooks payroll support directly. If you have any further questions, leave a comment below and we’ll do our best to help you.

How To Export Files

How To Run Payroll

How To Write And Print Payroll Checks

How To Use Direct Deposit

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How To Write And Print Payroll Checks In QuickBooks

How To Write And Print Checks In QuickBooks

If you still write payroll checks by hand and dread how long paying your employees takes, you’re going to love how easy it is to print payroll checks with QuickBooks. QuickBooks makes it easy to print checks straight from the software and you can even order checks straight form QuickBooks as well.

Follow these steps to start paying your employees.

How To Print Payroll Checks

You can either write checks within QuickBooks right after running payroll by clicking the “Print Paychecks” button, or you can go Employee>Payroll Center and it will show you how many checks are ready to be printed.

Either way, you’ll be taken to a screen that looks like this:

How To Write And Print Checks In QuickBooks

Step 1: Select Your Printer

Use the drop-down menu to select the printer you wish to send the checks to.

How To Write And Print Payroll Checks In QuickBooks

If you don’t have a wireless printer, now may be a good time to attach your computer to your printer.

Step 2: Select The Printer Type

Select the printer type using the drop-down menu. You can choose between continuous (perforated edge), page-oriented (single sheets), or laser (single label).

How To Write And Print Payroll Checks In QuickBooks

Step 3: Choose Your Check Style

Next, choose your check style. You can select voucher, standard, or wallet.

How To Write And Print Payroll Checks In QuickBooks

Step 4: Enter Number Of Copies

Enter the number of copies you wish to print.

How To Write And Print Payroll Checks In QuickBooks

Step 5: Check Additional Features

Check the box next to any additional criteria you wish to select. You can choose to print collated sheets, print your company name and address, add a company logo, and/or print a signature image on your checks.

How To Write And Print Payroll Checks In QuickBooks

Step 6: Adjust Font (Optional)

If you want, you can change both the check font and address font.

How To Write And Print Payroll Checks In QuickBooks

Step 7: Check Page Orientation

You can change the page orientation from the default “portrait” to “side” or “center.”

How To Write And Print Payroll Checks In QuickBooks

Step 8: Print Checks

Once everything appears correct, select “Continue.”

You’ll receive a notification like the one below asking you to verify if your checks printed correctly. If so, click “OK” and you’re all set!

How To Write And Print Payroll Checks In QuickBooks

Now you’ve officially printed and recorded your checks in QuickBooks.

If you have any troubleshooting issues, check out the QuickBooks Payroll Help Centers or call QuickBooks payroll support directly. If you have any further questions, leave a comment below and we’ll do our best to help you.

How To Use Direct Deposit

How To Add A Bank Account

How To Run Payroll Reports

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How To Use Direct Deposit In QuickBooks

How To Use Direct Deposit In QuickBooks

Direct deposit is an easy way to save time on payroll, but how does direct deposit work with QuickBooks?

QuickBooks allows you to use direct deposit for both employees and vendors (this service may cost extra depending on which QuickBooks payroll plan you choose). Believe it or not, it’s fairly simple to set up direct deposit. Just follow these nine steps and start paying your employees right away.

How To Use Direct Deposit In QuickBooks

First, we’ll explain how to set up direct deposit in QuickBooks. Then we’ll go over how to pay users using direct deposit.

You can either set up your direct deposit while setting up payroll or by going to Employee>Payroll Info>Direct Deposit.

Step 1: Enter Company Information

To set up your company for direct deposit in QuickBooks, verify your company’s information including the legal name, address, EIN, and industry. Update any owner information if needed.

How To Use Direct Deposit In QuickBooks

Step 2: Enter Bank Information

Next, enter your business’s bank information. Select the bank account you want to pay employees from. Indicate whether it is a checking or savings account and enter the legal name, routing number, and account number associated with that bank account. Finally, agree to the terms and conditions at the bottom of the screen.

How To Use Direct Deposit In QuickBooks

Step 3: Set Security Limits

As an added security measure, QuickBooks will now make you enter three security checks. Use the drop-down menus and select the most accurate options for your business.

How To Use Direct Deposit In QuickBooks

Step 4: Activate Direct Deposit

To verify your bank account, QuickBooks will charge you two small verification amounts. Once you see these charges on your banking records, you can officially activate your direct deposit.

If you need extra help with the following steps, you can download the Direct Deposit Getting Started Guide for some extra support and guidance.How To Use Direct Deposit In QuickBooks

Step 5: Verify Direct Deposit

Once you see the two verification charges in your bank records, go to Employee>My Payroll Service>Activate Direct Deposit. Input the two amounts and click “Next” to finish verifying your bank account.

Step 6: Enter Employees’ Direct Deposit Information

Now that your company is set up for direct deposit, make sure you’ve added the information of the employees that have authorized direct deposit. To do this go to Employee>Employee Center and select the employee whom you wish to set up with direct deposit. Once you can see that employee’s information, go to “Payroll Info” and select “Direct Deposit.”

Click the “Use Direct Deposit for: this employee” box and enter the following information: bank name, account number, account type, and routing number. You can also choose whether to direct deposit the whole amount or split the amount. Click “OK” when done, and then click “OK” on the employee screen to make sure the information has been saved correctly.

How To Use Direct Deposit In QuickBooks

Step 7: Run Payroll

Now you’re ready to run payroll using direct deposit! Follow the instructions from earlier to run payroll. When you get to the final screen, click “Send Payroll To Intuit” to pay your employees via direct deposit.

Step 8: Enter Direct Deposit Pin

You will be provided a direct deposit pin that you will need to input to verify the transactions.

Step 9: Print Pay Stubs

Once you’ve successfully paid your employees using direct deposit, don’t forget to print pay stubs. Go to File>Print Forms>Pay Stubs to print pay stubs in QuickBooks.

Now you’ve officially paid your employees using direct deposit and can hand them their pay stubs as proof. If you have any questions about QuickBooks direct deposit, search for the Direct Deposit Getting Started Guide within QuickBooks or call QuickBooks payroll support directly. If you have any further questions, leave a comment below and we’ll do our best to help you.

How To Write And Print Payroll Checks

How To Add A Bank Account

How To Run Payroll Reports

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How To Run Payroll In QuickBooks

How To Run Payroll In QuickBooks

Now that you’ve finally set up your QuickBooks Payroll, you’re probably wondering: how do I actually pay my employees? Well, that’s exactly what we’re here to tell you.

After following these four simple steps, you’ll be paying your customers in no time.

How To Run Payroll In QuickBooks

There are two things you’ll need to do before running payroll for the first time:

  1. Enter Employee’s Hours
  2. Create A Bank Account

To run your payroll, first make sure that all of your employees have recorded their time within QuickBooks. If you need help with this, read How To Track Time In QuickBooks.

You’ll also want to make sure that you’ve added the business bank account you pay employees from into QuickBooks. To learn how to do this, read How To Add A Bank Account To QuickBooks.

Once these two steps are complete, you’re ready to get started!

Step 1: Run Payroll

To begin, go to Employee>Payroll Center. Then click the “Pay Employees” button. You should be taken to a screen that looks like this:

The Complete Guide To QuickBooks Desktop Payroll

Click “OK, I’m ready!” to get started.

Step 2: Enter Payroll Information

Enter all of your payroll information, beginning with the pay period end date and a check date. Select the bank account you want to pay employees from (QB will show you the existing account balance). Select whether you will print checks using QuickBooks or if you are going to handwrite your checks.

The most important part is to select which employees you want to pay and review their hours to make sure everything looks right before proceeding. Click “Continue” when ready.

The Complete Guide To QuickBooks Desktop Payroll

Step 3: Review Payroll

Next, review the information to make sure everything looks correct. QuickBooks will tell you how many paychecks will be issued and will total up the gross pay, taxes, deductions, net pay, employer tax contributions, total hours, and direct deposit amounts for the pay period. After you review all of the information, click “Create Paychecks.”

The Complete Guide To QuickBooks Desktop Payroll

Step 4: Confirm Payroll

Congrats! You’ve officially run payroll in QuickBooks. However, there are a few final steps. This screen will tell you how many paychecks have successfully been created, how many are ready for printing, and how many are ready to be directly deposited.

The Complete Guide To QuickBooks Desktop Payroll

From here, you can print your employees’ checks or send your payroll in for direct deposit processing and print the pay stubs for your direct deposit employees. We’ll cover how to do both of these things in the next two posts in our QuickBooks Desktop Pro 101 Series.

If you have any troubleshooting issues, check out the QuickBooks Payroll Help Centers or call QuickBooks payroll support directly. If you have any further questions, leave a comment below and we’ll do our best to help you.

How To Write And Print Payroll Checks

How To Use Direct Deposit

How To Run Payroll Reports

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QuickBooks Desktop Payroll Pricing And Features

As an employee, the payroll process seems like a piece of cake. You wait until every second Friday, grab your paycheck deposit, and that’s it! But from the employer’s perspective, payroll is much more complicated.

More goes into payroll than meets the eye, like making sure your company is set up for payroll taxes, properly recording all of your employee’s tax information, and staying on top of paydays. Luckily, accounting software programs like QuickBooks offer payroll features and provide plenty of resources to help you learn how payroll works and what your payroll obligations are.

This post will cover the cost and features of each QuickBooks payroll plan and guide you through how to choose which plan is right for your business.

QuickBooks Payroll Plans & Pricing

Looking into purchasing QuickBooks Payroll? QuickBooks Desktop offer three payroll plans: Basic, Enhanced, and Assisted. Each option varies by features, automations, and price.

Every QuickBooks Desktop payroll option is compatible with QuickBooks Desktop Pro, QuickBooks Desktop Premier, and QuickBooks Desktop Enterprise. (If you use the Gold or Platinum version of QuickBooks Enterprise, payroll is already included in your subscription).

Let’s break it down.

Basic

QuickBooks Basic Payroll costs $29/mo + $2/per employee (though Intuit usually offers a discount for QuickBooks payroll). This is the smallest payroll plan. With QuickBooks Basic Payroll, you can process your payroll and pay employees by check or direct deposit.

Basic Payroll also includes:

  • Instant paychecks
  • Pay W-2 employees
  • Pay 1099 employees
  • Free direct deposit
  • Payroll support

The one drawback of Basic payroll is that it does not include any of your payroll tax forms. You’d have to buy tax forms separately and file them on your own.

Enhanced

QuickBooks Enhanced Payroll costs $45/mo +$2/mo per employee (though Intuit usually offers a discount for QuickBooks payroll). Enhanced payroll is QuickBooks Desktop’s do-it-yourself payroll option. You can process your payroll and file your taxes directly through QuickBooks.

Enhanced Payroll includes:

  • Instant paychecks
  • Pay W-2 employees
  • Pay 1099 employees
  • Free direct deposit
  • E-filing for W-2’s
  • Free tax forms
  • Payroll support

Assisted

QuickBooks Assisted Payroll costs $109/mo + $2/per employee (though Intuit usually offers a discount for QuickBooks payroll). This plan is aptly named as QuickBooks processes your payroll for you and automatically files your payroll taxes. QuickBooks Desktop Assisted handles the payroll set up for you as well.

Full-Service Payroll includes:

  • Instant paychecks
  • Pay W-2 employees
  • Pay 1099 employees
  • Free direct deposit
  • Automatic tax filing
  • Free tax forms
  • No tax penalties
  • Free year-end forms
  • Automatic payroll setup
  • Payroll support

With this plan, all you have to do is make sure your employee’s hours are entered into QuickBooks and the rest is taken care of for you.

Which QuickBooks Payroll Plan Is Right For Me?

When it comes to choosing the best QuickBooks Desktop Payroll plan, it ultimately comes down to how much you can afford and how much work you want to do personally.

To help you determine which QuickBooks payroll plan is best, here’s a side-by-side comparison of all three QuickBooks payroll plans:

Basic Enhanced Full-Service
Pricing $29/mo $45/mo $109/mo
Payroll Support ✓ ✓ ✓
Payroll Processing ✓ ✓ ✓
Payroll Checks ✓ ✓ ✓
Direct Deposit ✓ ✓ ✓
W-2 Employees ✓ ✓ ✓
1099 Employees ✓ ✓ ✓
Tax Forms ✘ ✓ ✓
E-filing ✘ ✓ ✓
Automatic Payroll Processing ✘ ✘ ✓
Automatic E-Filing ✘ ✘ ✓
Payroll Setup ✘ ✘ ✓
Year-End Forms ✘ ✘ ✓

If you are comfortable running payroll and handling taxes yourself, the Basic or Enhanced plan might be best. If you don’t feel good about running payroll yourself or don’t have enough time to do so, the Assisted plan might be a better choice.

Make sure to check your budget and see which payroll plan you can afford as well. If you are a small startup with a tight budget, you might have to stick with the Basic plan and spend some time learning how to run payroll. If this is the case, don’t worry. We’ll teach you everything you need to know about processing payroll in the rest of this post.

Where To Buy QuickBooks Payroll

There are a few ways to purchase QuickBooks Desktop Payroll: on Intuit’s site or through one of QuickBooks’ resellers.

Office supply stores, like Staples or Office Max, often sell the software. Retail stores like Walmart and Best Buy — and even online giants like Amazon — also carry QuickBooks Payroll software. Often, the software is bundled with the purchase of QuickBooks Desktop Pro, QuickBooks Desktop Premier, or QuickBooks Desktop Enterprise.

If you are a QuickBooks Enterprise Gold or Platinum user, then your QuickBooks subscription already comes with payroll support.

QuickBooks Desktop Payroll Troubleshooting & Support

Every QuickBooks Desktop payroll plan comes with tech support at no additional cost. When you sign up for payroll, QuickBooks sends you an email containing several of the main support options. However, there are a few additional support options.

Here are all of the ways you can contact QuickBooks Payroll Support:

  • Phone: Call the QuickBooks Payroll phone support number at (800) 450-8459.
  • Payroll Checklist: QuickBooks created a payroll setup checklist to help you gather all of the information you need to set up payroll before you begin the process.
  • Payroll Guide: There is also a QuickBooks Payroll Getting Started Guide that covers everything you need to know about setting up payroll, running payroll, understanding your payroll tax obligations, and provides additional employer resources.
  • Payroll New Customer Center: I highly recommend taking a look at this resource before setting up your QuickBooks Payroll, even if you aren’t new to payroll. First-time payroll software users and users mitigating from other software can both benefit from the guides, videos, and other resources in the Payroll New Customer Center. You’ll also find FAQs and help articles.
  • Contact Form: Within the Payroll New Customer Center there’s a contact option where you can search existing resources for answers to your question or problem. If the answers are inadequate, you’ll can then contact support directly.
  • Help Centers: There is a Basic and Enhanced payroll help center and an Assisted payroll help center. Both features dozens of how-to articles with detailed instructions. The help centers also help troubleshoot issues with QuickBooks Payroll.  Here’s are some common QuickBooks payroll problems and how to resolve them.
  • QuickBooks Community: There is also a QuickBooks Community where users can ask questions and receive answers from other users and QuickBooks’ own team. This is a good spot to look if you’re having issues with QuickBooks Payroll, as someone may have had the same issue before.

Final Thoughts

Now that you know what each payroll plan is capable of and exactly how much each plan costs, you can make an informed decision on which QuickBooks payroll plan is right for you. If you still aren’t sure, take advantage of the free 30-day payroll trial to see if QB payroll is right for your business.

If you do decide to use QuickBooks, be sure to check out our QuickBooks Desktop Pro 101 series to learn how to set up QuickBooks payroll, run payroll, use direct deposit, and more.

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A Guide To QuickBooks Online Pricing

Purchasing accounting software would be a whole lot easier if you just had a magic lamp. One rub, and voila! You’ve got the perfect software for you at the best price.

We don’t have a magic lamp for you, but if you’re wondering “how much does Quickbooks Online cost?” this post is the next best thing.

Read on for a breakdown of the three different QuickBooks Online (QBO) plans. We’ll discuss how to know which plan is right for you and what additional costs to expect so you can know exactly what you’re getting into before deciding to purchase QuickBooks Online.

Read on for more details about QB Online pricing!

QuickBooks Online Pricing

How much is QuickBooks Online? It’s a more complicated question than you might think. QBO offers three subscription plans, so there is no one QuickBooks Online price. Each tier gives you access to more features and users. Payments are made monthly, and no annual contracts are required.

QuickBooks is almost always offering a discount on their website, so be sure to check for any promotions before buying.

Note: Discounts are invalid if a customer uses the free 30-day trial before purchasing. Also, if you are switching over from QuickBooks Desktop to QuickBooks Online, you may be eligible for even better discounts. Contact the QuickBooks Online sales team for more details.

Simple Start Plan

Simple Start is the smallest QuickBooks Plan. The QuickBooks Online Simple Plan costs $15/mo and supports one user plus two accountants.

Here are the features that come with QuickBooks Simple Start:

  • Unlimited invoices and estimates
  • Contact management
  • Expense tracking
  • Live bank feeds
  • 27 reports
  • 200+ integrations

Essentials Plan

The QuickBooks Essentials Plan costs $35/mo and is a step up from the Simple Start plan. QuickBooks Online Essentials comes with three users plus two accountants and more features.

Here are the features you get with QuickBooks Online Essentials:

  • Unlimited invoices and estimates
  • Contact management
  • Expense tracking
  • Live bank feeds
  • 53 reports
  • 200+ integrations
  • Accounts payable
  • Time tracking

Plus Plan

QuickBooks Online’s largest plan, QuickBooks Plus, costs $50/mo. QuickBooks Online Plus (not to be confused with QuickBooks Desktop Pro Plus) offers five users plus two accountants and the most advanced features.

Here are the features that come with QuickBooks Plus:

  • Unlimited invoices
  • Unlimited estimates
  • Expense tracking
  • Live bank feeds
  • 75 reports
  • 200+ integrations
  • Accounts payable
  • Time tracking
  • Project management
  • Inventory
  • Class tracking
  • Tax support

Which QBO Version Is Right For Me?

When deciding which version of QuickBooks Online is best for your small business, it should come down to your business’s need and budget. Here’s a breakdown of how the Simple Start, Essentials, and Plus plans compare:

Simple Start Essentials Plus
Pricing $15/mo $35/mo $50/mo
Tech Support Included Included Included
Invoicing ✓ ✓ ✓
Contact Management ✓ ✓ ✓
Expense Tracking ✓ ✓ ✓
Number Of Reports 27 53 75
Time Tracking ✘ ✓ ✓
Accounts Payable ✘ ✓ ✓
Project Management ✘ ✘ ✓
Inventory ✘ ✘ ✓
Tax Support ✘ ✘ ✓

Now that you can clearly see the difference between each QuickBooks Online plan, ask yourself these questions:

  • Which features do I need to run my business?
  • How many users do I need?
  • How much can I afford to spend each month?

These questions should help you narrow down which QuickBooks Online plan is right for you.

Additional Fees

In addition to the monthly subscription price, there are a few other QuickBooks Online charges to be aware of. Intuit is not always the most forthcoming about these extra fees, which is why we want to highlight them now. You should know exactly how much QuickBooks Online is going to cost before you commit to a plan.

Additional Users

As we mentioned earlier, QuickBooks Simple Start supports one user, QuickBooks Essentials supports three users, and QuickBooks Plus supports five users.

However, if you have the QuickBooks Plus plan, you can add up to 25 users for an additional cost. Here’s how additional users will affect your overall monthly price.

  • 0-5 Users: $50/mo
  • 6-10 Users: $65/mo
  • 11-25 Users: $95/mo

There is a slight discount on additional users if you pay annually instead of monthly. Contact QuickBooks for more details.

Payroll

QuickBooks Online offers two types of payroll: do it yourself payroll and full-service payroll. The self-service payroll option requires you to run payroll and file your payroll taxes on your own. With the full-service payroll option, QuickBooks does everything for you.

QuickBooks Online payroll costs between $39 – $99/mo plus $3/per employee. Intuit often runs payroll promotions for both existing QuickBooks Online users and brand new QuickBooks users. Be sure to visit their website to find a QuickBooks payroll discount.

Tax Forms

QuickBooks Online supports W-2s and 1099-MISCs. You can order tax forms directly from Intuit. The cost begins at $17.95 and varies depending on which form you need and how many. If you purchase QuickBooks Online payroll these forms may be included, depending on the payroll plan you choose.

Checks

You can purchase checks, voucher checks, business wallet checks, and more from QuickBooks. Standard checks begin at $56.99/per 50 checks. Prices vary by check type and amount.

QBO Add-Ons & Payment Gateways

In addition to the fees above, there are a few other extra costs you should consider before purchasing QuickBooks Online:

Add-Ons

Integrations are third-party add-ons that give you additional features and capabilities. For example, common software programs like Shopify, TSheets, and MailChimp are all integrations. QuickBooks Online offers 200+ integrations to choose from.

Most integrations come with their own monthly subscription fees, so be sure to account for these extra costs when calculating how big of a dent QuickBooks Online is going to leave in your wallet.

Payment Gateways

Payment gateways allow you to accept payments from your customers. Common payment processing options include PayPal, Stripe, Square, and Authorize.Net. QuickBooks Online offers around 10 payment processors or you can use QuickBooks Payments.

You can read our review of Intuit Merchant Services (QuickBooks Payments) for more information, but the basic charges are as follows:

  • $1.00 for ACH fees
  • 2.4% + $0.30 for swiped cards
  • 3.5% + $0.3o for invoices
  • 3.5% + $0.30 for keyed in cards

Whether you use QuickBooks Payments or another payment gateway, be sure to take potential credit card fees into account when calculating how much you’ll be spending on software each month.

Final Thoughts

Now that you know exactly how much each QuickBooks Online plan costs you can make an informed business decision about which version is right for you. Make sure to factor in the hidden costs!

If you want to learn more, read our complete QuickBooks Online review or get started with a free trial. If you still aren’t convinced that QuickBooks Online is the best choice for your business, check out our Complete QuickBooks Products Comparison Guide or take a look at the Best QuickBooks Online Alternatives.

Get Started With QuickBooks Online

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