Every business owner wants to see their business succeed. With the right strategy, the business could grow and achieve the set targets. However, without proper planning, it could go bankrupt within the first year.
One of the reasons a business fails is not having their finances right. Monitoring how money is coming in and out is equally as important as hiring the right people for your company. The right accounting software helps in tracking expenses, invoicing, reconciliation and so much more.
Choosing the best accounting software can be challenging because each has a set of different features and pricing.
Here are some things to consider when sourcing for one:
- The usability- how many users can use the software? Does it have a mobile version? Is it cloud-based or desktop software?
- Costs- this should not be the primary determinant. Do you need one with has extra features or just simple accounting software?
- Features-What features are you looking for? One that has simple to basic functions or a comprehensive one? Do you need it also to track inventory? Do you need an all-in-one package? Project management, time tracking, invoicing and such?
Review of some of the top accounting software
1. QuickBooks Online
QuickBooks apps have been the number one choice of CPA`s and Bookkeepers when it comes to ease of use. Most of the Bookkeepers prefer using QuickBooks Enterprise Hosting on their cloud Citrix XenDesktop to work remotely from anywhere on any device in a multi-user environment.
This software is ideal for small businesses. Some of its features include:
Bookkeeping: It lets you connect your bank and credit accounts for your automatic downloads.
Tracking expenses: Once you’ve connected the accounts, QuickBooks helps you import and categorizes the expenses for you. You can as well save photos of receipts, and the software will help assign the costs to the right account.
Managing bills: The software comes with an in-built bill pay organizer. In most cases, there are bills you don’t pay as soon as you get them. QuickBooks helps you track them and their due dates all in one place which makes it easier to pay on time and avoid accruing penalty fees.
Receipt scanner: The QuickBooks app has an in-built receipt scanner which lets you take a photo of the receipt and the software saves the scanned receipt for documentation purposes as well as attaching it to the expenses section.
Pricing: The most basic plan is $10/month.
When installing QuickBooks, sometimes a compatibility error can occur, and it’s important to know how to deal with it. Sometimes, you try downloading it from your browser, and it brings a DNS error. It is important to know How to Fix the Google Chrome DNS as it could be what prevents you from downloading the software.
Invoicing: FreshBooks helps you create professional invoices by letting you add your logo.
Credit card payment: It allows your clients to pay you for work rendered and online and you receive the money up to 11 days faster.
You can automate your business in a way the software follows up on your behalf about payment.
It is easier to choose your currency and invoice from anywhere as there is a mobile app.
You can add invoice due dates and offer discounts easily.
There is no need to calculate your sales tax as FreshBooks will do it for you automatically.
There is also time tracking where you can bill for tracked hours.
FreshBooks is a great project management software as well. You can add team members for a particular project to keep communication active and make sure the project is completed.
Pricing: The most basic plan starts at $7.50/month
3. Sage Business Cloud Accounting
Sage Business Cloud Accounting is suitable for both small and medium-sized businesses. The software is specifically for qualified bookkeepers and accountants.
Bank integration and reconciliation: it links clients’ bank accounts to the business to save on time and reduce errors. The software makes bank reconciliation more error-free.
It is easy to use and is cloud: based hence no backups or updates needed.
Invoicing-Sage helps you customize invoices and lets you record when you get paid for them.
Generating statements: Generating statements such as balance sheets is possible with this software, and you can even create IRS 1099 forms for employees.
Sage can also issue clients’ credit notes for any returned items. There is also an unlimited user collaboration.
4. Zoho Books
Zoho Books is a cloud: based which makes it easy to use from anywhere.
Bill generation- Zoho Books allows you to create and send client bills online and it automatically adjusts the stock level when clients receive goods.
Expense management: Zoho allows you to track any expenses incurred to help you make financial decisions. There is an auto-scan feature that captures any critical information on the document scanned and uploads it directly for easy access and reporting.
Other features include: customizing invoices, keeping track of your taxes and scheduling reports.
Pricing: the basic plan starts at $9/month.
Investing in accounting software requires you to know your business needs. Do you want something that is scalable and can grow with your business or not? Purchase wisely as this has the potential of helping you realize your profits sooner than you thought you would.
- Article updated on October 2019 – Minor content updates and links fixed.