QuickBooks Online for Small Businesses: 5 Tips to Get Started

If you're a small business owner, managing your own books might feel a little overwhelming at first. But with the right tools, it’s completely doable—and even empowering. One of the best options out there? QuickBooks Online. It’s one of the most popular accounting platforms for small businesses, and for good reason: cloud-based access, real-time reporting, user-friendly tools, and automation that saves time.

To make your journey even smoother, we've put together a few quick tips to help you get started.

Step 1: Choose the Right QuickBooks Online Subscription

You can explore all the QuickBooks Online plans on QuickBooks' website. While it might be tempting to go for every feature, most small businesses thrive with just a few essential tools. We typically recommend starting with QuickBooks Online Essentials. It provides access to vital reporting features, multiple user support, and essential functions such as invoicing and billing.

Expert Tip: Don't forget to have your important legal documents handy, as you'll need to enter your business name, address, and phone number during sign-up.

Step 2: Get Familiar with the Dashboard and Tools

To excel with QuickBooks Online, you'll want to familiarize yourself with its features. Thankfully, QuickBooks offers free tutorials and training, including beginner-level courses. Start with the left-hand navigation panel—it's your best friend in accessing all the areas you need for efficient day-to-day recordkeeping.

Expert Tip: Don’t try to master everything at once. Focus on the basics, such as creating invoices, viewing profit and loss reports, and setting up vendors for bill entry. You can always expand later.

Step 3: Complete Your Company Profile

Click the gear icon in the top right and go to Your Company → Account and Settings. Here, you’ll confirm or enter:

• Your legal business name

• Business address and phone number

• Tax form type (Form 1040, 1065, or 1120S)

• EIN or SSN

• Industry

This information is used in important documents, such as 1099s for contractors, and appears on your invoices, so it’s worth getting right.

Expert Tip: Not sure which tax form applies? Check with your tax professional for more information.

• Sole proprietor: Form 1040 (Schedule C)

• Partnership: Form 1065

• S-Corp: Form 1120S

Step 4: Connect Your Business Bank and Credit Card Accounts

Connecting your accounts helps automate bookkeeping and provides QuickBooks with the necessary data to perform its functions effectively. The steps differ slightly depending on your interface:

• Classic interface: Go to Transactions → Bank Transactions → Connect/Link Account

• New interface: Click Accounting → Transactions → Bank Transactions

After connecting your account, you’ll be prompted to:

• Choose the account type (checking, savings, or credit card)

• Name the account

• Select a start date for importing transactions (ideally, the account open date)

Expert Tip: Only connect business accounts. Mixing personal and business finances can create headaches later, especially if you have an LLC. This not only helps you stay compliant but also ensures accurate cash flow reporting. If you did use a personal card for a business expense, you can enter that manually, rather than using the bank feed feature. Keeping everything organized will set you up for success!

Step 5: Start Categorizing Transactions

Now the fun begins. Once QuickBooks imports your transactions, review and categorize them individually. For each transaction:

• Choose the right vendor or customer

• Select or create an expense category (like advertising & marketing, software, meals & entertainment, or legal & professional services)

• Click Add (or Match if it’s a known transaction)

This is the backbone of small business accounting—it’s what turns raw data into useful financial reports.

Expert Tip: Transactions aren’t recorded in your books until you manually Add or Match them. This step is what keeps your records accurate.

You’ve Got This (And We're Here if You Need Help)

Getting started with QuickBooks Online is a big win for any small business owner. And while you can absolutely handle your own books, we know it’s a lot to take in, especially when your time is better spent growing your business.

If you ever feel stuck or want expert guidance on setting things up right from the start, our team at Third Mesa is here to help. From setup to monthly bookkeeping, we’re your friendly financial co-pilot.

Contact our team to get started.