f you run a small business, then chances are good that you’re juggling several different tasks at the same time. After all, being an entrepreneur isn’t easy. It takes a lot of hard work and dedication, especially if you want your business to flourish. In reality, many small businesses don’t succeed because they fail to manage their finances correctly from the start. Luckily, there are plenty of affordable accounting software solutions designed specifically for small businesses like yours. Read on to learn more about these solutions and how they can help your business grow and thrive.
What is Accounting Software?
Accounting software or bookkeeping software is computer software used to record financial transactions within an organization such as a company or a non-profit organization. These are programs that help small business owners track their financial transactions by automating the bookkeeping process. They also help users create financial reports and do other things that are essential for running a successful business. If you want to run a successful business, you need to keep track of your finances. This is where accounting software comes in. There are many types of accounting software out there, but the ones listed in this article are the best ones for small businesses.
Why should you use accounting software for your small business?
Accounting software is an essential part of any small business owner’s toolkit. These programs help you keep track of your cash flow, identify trends in your business, and provide a clear breakdown of your expenses and your income. If you run your accounting manually, it’s nearly impossible to keep track of everything that’s going on. Bookkeeping software, on the other hand, makes it easy for you to stay on top of things. With the help of these programs, you can easily manage your payroll, keep track of your financial transactions, and create financial reports. You can also use them to manage your inventory and to create invoices for your customers.
What to consider when choosing accounting software
1. Features based on your needs (and size)
Would you like to sell products? Look for an application with a good inventory module if this is the case. Paying employees? Make sure the application you choose includes payroll features. If you determine the features that are most important to you and your business, you can more easily find an application that fits your needs. Also, if you plan to scale your business in the future, look for a tool that can grow along with your business.
2. Ease of use
The last thing you want is a complicated application that is painful to navigate through. See if the platform is easy to use. It will save you a lot of time and money. Spending hours learning how to use software is simply a waste of your time. All the accounting tools in this article have either a free trial or a free plan. This will allow you to experience and test their services yourself before you pay for a subscription.
3. Pricing
If you're a startup or a solopreneur with limited cash flow, pricing is a deciding factor when it comes to purchasing accounting software. Keep in mind that the most expensive software isn't the best software if it doesn't fulfill your needs. Finding software that fits your needs and your budget is far more important than choosing the most expensive product.
1. QuickBooks Online
QuickBooks Online is one of the most popular cloud-based accounting software for small businesses. It offers a range of features, including invoicing, expense tracking, and tax preparation. QuickBooks Online also integrates with many other business software, making it easy to manage all your finances in one place. It allows users to manage their finances from anywhere with internet access. It is developed and marketed by Intuit, a leading provider of financial management software.
Features:
✦ Invoicing and Billing: Create and send invoices to clients, track unpaid invoices, and set up recurring invoices.
✦ Expense Tracking: Easily track expenses, attach receipts and categorize them for tax purposes.
✦ Bank Reconciliation: Automatically download bank and credit card transactions and reconcile them with your books.
✦ Reporting: Generate financial reports such as profit and loss, balance sheet, and cash flow statements.
✦ Payroll: Run payroll and calculate taxes automatically with QuickBooks Online Payroll (additional fee required).
✦ Inventory Management: Track inventory levels and get alerts when items are running low.
✦ Time Tracking: Track billable hours and expenses by project or employee.
Pricing Plans:
QuickBooks Online offers 3 pricing plans, each with different features and pricing. They offer a 30-day free trial for all their plans.
- Simple Start: $8.50/month.
- Essentials: $13/month.
- Plus: $18/month.
Pros:
✔︎ Wide feature set: thorough record-keeping, robust reporting, excellent invoicing and inventory management, plus a capable mobile app.
✔︎ Cloud-Based: As a cloud-based software, QuickBooks Online can be accessed from any device with internet access.
✔︎ Integration: QuickBooks Online integrates with a wide range of third-party applications, including PayPal, Shopify, and TSheets.
✔︎ Collaboration: Multiple users can access QuickBooks Online simultaneously, allowing for better collaboration between team members.
✔︎ Customer Support: QuickBooks Online offers excellent customer support via phone, email, and live chat Monday to Sunday.
Cons:
✘ Cost: The cost of QuickBooks Online can be expensive for small businesses, particularly if they require additional features such as payroll.
✘ Limited account users with each plan.
✘ It's not as easy to use as some of its competitors, therefore you may need to spend some time learning how to properly use this solution.
2. FreshBooks
FreshBooks is an easy-to-use cloud-based accounting software solution designed for small businesses of all kinds. It’s made for people who want to be able to track their finances from anywhere and at any time. It offers a range of features that help small business owners manage their finances more efficiently. Some of these features include invoicing, time tracking, expense tracking, project management, and reporting. Users can also integrate FreshBooks with other tools such as PayPal, Stripe, and Gusto. Additionally, FreshBooks has a mobile app that allows users to access their account on the go.
Features
✦ Invoicing: Create and send professional invoices with your branding and payment options.
✦ Time Tracking: Track time on projects, assign tasks, and bill clients accurately.
✦ Expense Tracking: Keep track of business expenses and easily import them from bank accounts or credit cards.
✦ Project Management: Manage projects, collaborate with team members, and track project progress.
✦ Reporting: Generate financial reports, including profit and loss statements, balance sheets, and cash flow statements.
✦ Mobile App: Access your account on-the-go with FreshBooks mobile app.
✦ Integrations: FreshBooks integrates with popular payment processors, such as PayPal and Stripe, as well as other business tools, such as Gusto and Trello.
Pricing Plans:
FreshBooks offers 4 pricing plans: Lite, Plus, Premium, and Select (custom pricing). FreshBooks offers a free 30-day trial and it comes with a risk-free money-back guarantee. If you don’t like it, you can get a full refund.
- Lite plan costs $6.80 per month and is limited to invoicing for up to 5 clients.
- Plus plan costs $12.00 per month and allows up to 50 clients.
- Premium plan costs $2.00 per month and allows unlimited clients.
- Select plan is a custom pricing plan for businesses who require custom features.
Pros:
✔︎ Easy-to-use interface for freelancers and small businesses.
✔︎ Time tracking feature helps bill clients accurately.
✔︎ Invoicing customization with branding options.
✔︎ Excellent customer support, including live chat and email support.
✔︎ Mobile app for on-the-go access.
✔︎ FreshBooks is slightly less expensive than several other popular cloud-based accounting software programs.
Cons:
✘ The lowest-tier Lite plan doesn’t include basics like bank reconciliation tools or double-entry accounting fundamentals.
✘ Highest-tier Select plan only comes with two users and lower-tier plans put limits on billable clients which might not be convenient if you want to bill more clients.
✘ The mobile app is limited and doesn’t allow you to access reports on the go.
3. Wave Accounting
Wave is a cloud-based accounting software designed specifically for small businesses. It provides tools for managing accounting, invoicing, payments, and payroll all in one platform. With its intuitive interface and affordable pricing plans, Wave has become a popular choice for entrepreneurs and small business owners.
Features:
✦ Invoicing: Wave offers customizable invoice templates, automatic payment reminders, and the ability to accept online payments.
✦ Expense Tracking: Wave allows users to upload receipts and track expenses by category.
✦ Bank Connections: Users can connect their bank accounts to Wave to automatically import transactions.
✦ Accounting Reports: Wave generates a variety of accounting reports such as profit and loss statements, balance sheets, and cash flow statements.
✦ Payroll: Wave offers payroll services for small businesses, including tax calculations and direct deposit.
✦ Integration: Wave integrates with a variety of third-party tools such as PayPal, Etsy, and Shopify.
Pricing Plans:
Wave offers 3 totally free plans if you only need basics. If you need more advances features, you pay extra for these particular features.
- Wave Invoicing - free.
- Wave Accounting - free.
- Wave Banking - free.
- Payments - pay-per-use.
- Payroll - monthly price.
- Advisors - monthly pricing once you choose one of their main plans.
Pros
✔︎ Free plan: Wave's free plan provides a basic set of accounting features for small businesses on a tight budget who don't need payments or payroll.
✔︎ User-friendly interface: Wave's interface is designed to be intuitive and easy to navigate, making it accessible to users with minimal accounting experience.
✔︎ All-in-one platform: Wave's platform provides a smart collection of tools for managing accounting, invoicing, payments, and payroll, eliminating the need for multiple software solutions.
✔︎ Multicurrency support.
✔︎ Payroll services: Wave's payroll services are affordable and easy to use for small businesses with a few employees.
Cons
✘ Integrations only through Zapier.
✘ Higher fees for credit cards and ACH payments.
✘ Not all US states supported for full-service payroll.
Conclusion
Choosing an accounting software solution for your small business doesn’t have to be a difficult process. All you have to do is find the software that best meets your needs. Of course, you will need to invest some time in looking at different accounting solutions but it's a worthwhile investment for your business. And once you do find the most suitable accounting tool, you can rest assured knowing that your finances will be in good hands. With the help of accounting software, you can efficiently keep track of your financial transactions and manage your cash flow.
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