Popular accounting software for small businesses
Many small businesses cannot afford to hire a bookkeeper or accountant in their early days. So, they start off with a spreadsheet system to keep a tally of what is coming into the business and what is going out. But as your business grows and the complexity of your transaction’s increase, keeping track of things in a spreadsheet will turn into an administrative nightmare! Your profit estimates will invariably be off, your cash flow data misleading and your tax return data incomplete. Having accurate timely financial data available is necessary to make the correct decisions on how to run your business. For this reason, using a comprehensive accounting software package, will not only save you time, money and effort but will also give you a trusted snapshot of the true health of your business.
Many of the top accounting software for small businesses offer similar features. For example; recording your accounts payable and accounts receivable, linking to your bank account for invoicing and payment processing, integration with other systems, top-notch security and cloud-based access. You may need project management tools if you have a service-based business. Or if your business sells products, you may need inventory management features.
The systems outlined below are popular accounting software solutions used by small businesses.
This is a comprehensive accounting software program. Quickbooks Online tracks income and expenses and it maximizes your tax deductions. You can create invoices and accept payments. There are zero charges for bank transfers. You can run profitability and balance sheet reports, or create customized reports. You can provide estimates and manage inventory and projects with Quickbooks Online. There are many organizational features such as tracking time or tracking overdue invoices. The Pay Now feature links to customers credit card accounts for easy payment.
The Simple Start Plan costs $20 per month however this has limited features, the Essential Plan is $35 per month and allows for up to 3 users. The Plus plan is $60 per month and the most advanced option. All plans include receipts capture and expert support to ensure you are getting the most out of the system. Quickbooks Online offers a 30-day free trial.
Freshbooks Cloud Accounting
FreshBooks Cloud Accounting makes running your small business easy, fast and secure. It has been built exclusively for small-business owners. FreshBooks is simple and intuitive with dashboards to give you a snapshot of your business. It helps address recurring invoices and subscription easily. With the FreshBooks mobile app, you can keep tabs on your business no matter where you are. You can send estimates to help you win jobs. The software includes powerful reports that provide insight into your business. It also has project management and team collaboration features.
The Lite Plan costs $15 per month for up to 5 billable clients. The most popular plan is the Plus Plan for $25 per month for up to 50 billable clients. The Premium Plan costs $50 per month for up to 500 billable clients. But if you want to give it a try first, you can take advantage of the 30-day free trial.
Zoho Books is a smart accounting solution designed to manage small business cash flow and finances. It is primarily aimed at small businesses or solopreneurs. The dashboard displays financial overviews and graphs. It covers all the basics you would expect from accounting software, such as cash flow statements and balance sheet creation. It syncs with your accounts, creates and sends invoices, tracks expenses and generates reports. It has automatic bank feeds importing all your credit card and bank transactions. Automatic payment notifications are also sent to your clients. You can send estimates to clients and share project-related details such as tasks and hours worked.
The Basic Plan costs $9 per month, this allows for 2 users with 5 automated workflows. The Standard Plan costs $19 per month, this allows for 3 users with 10 automated workflows. Professional costs $29 per month, this allows for 10 users with 10 automated workflows. Zoho books offer a 14-data free trial period.
Xero is a beautiful cloud-based accounting software system. It was developed to provide the best user experience possible. It is easy to use and makes tough accounting tasks like double bookkeeping simple even for first-time users. The dashboard has several detailed views with graphics. The system allows you to send invoices to your customers and be alerted when they open them. Xero imports and categorizes your latest bank transactions. You can use the mobile app to send invoices, or create expense claims from anywhere! Control your stock with the inventory management features. It integrates with many third-party applications and accounting tools and the software’s Express Setup feature makes set up a breeze. The Help Center offers assistance on all your queries.
Xero’s Early Plan is $9 per month. The Growing Plan is $30 per month. The Established Plan is $60 per month. But if you want to give it a try first, you can take advantage of its a 30-day free trial.
Wave is an easy to use, free accounting system. It offers free tracking of income and expenses, receipt scanning and invoicing to clients. Receipts can be scanned easily from your phone. Wave is ideal for small businesses who employ less than 10 workers. It is also ideal for entrepreneurs, freelancers, and other self-employed professionals.
Wave comes absolutely for free. However, they offer pay-as-you-go payment plans for credit card processing and payroll services. If you’re looking for a system that offers built-in time tracking, inventory tracking, or project management, you will likely need different software.
More small business owners are using accounting software to streamline their accounting processes. The above list of accounting software systems will aid you to correctly record your financial data and give you a reliable view of your business finances. Give the free trial period a test run to see which solution will work best for you.