What is the best accounting software for small businesses?
Running and maintaining a business is not always the easiest thing in the world, especially when it comes to managing the financial side of things. That’s why we’ve put together a guide to help you choose the best accounting software for your company. Below are a number of different options and a brief explanation of each so that you can understand and pick the best one for you.
Firstly though, let's start with invoicing as this is a crucial part for any business. Simply put, an invoice is a bill. It is a statement that you send to a customer who owes you money for goods or for a service. An invoice can contain as much or as little information as you want it too, but the amount owed is usually a good place to start as well as a breakdown of the total fee. Invoices used to be hand written documents but nowadays, they are mainly generated online. Invoice Simple is a handy application to have when creating invoices for your business. It enables you to generate your invoice professionally and easily.
Now that we’ve covered invoices, we can take a look at some different varieties of accounting software.
Quickbooks is an accounting software designed mainly for small businesses and allows them to keep track of their financial health by managing their income and expenses. It’s beneficial for many aspects of the financial side to a small business as it helps with managing payroll (find out more about payroll costs), it allows you to gain key reporting insights to your business and keep track of what money is coming in and what's being spent. Quickbooks tend to be easier to set up than other accounting softwares which makes it attractive to smaller businesses. It’s very user friendly and already includes different features that make it more time efficient.
Find out more about small business accounting costs beyond the use of software like Quickbooks.
Similar to quickbooks, is Xero. This software is popular amongst smaller businesses as it offers everything you need to run the financial side of things within your company, depending on what plan you choose. Both softwares offer different plans for different prices, the more features you require the more expensive the plan. However, Quickbooks does offer a free trial, whereas Xero does not, this may be something to consider when looking to buy a plan with these companies. Being more recently created, Xero is thought to be more trendier and fun to use as opposed to Quickbooks but both are very user friendly and easy to start.
Wave is another accounting software designed for small businesses and sole proprietors. Its main appeal to the customer is that it is free to download and use and offers many of the same features as the other mentioned software. The only fee is that of ‘accepting online payments’ where you would have to pay the normal transaction fee you would with any other application. The difference with Wave is that it is a relatively simple app, therefore if you’re planning on expanding or growing your business, you’re better off selecting a product that can grow with you and keep up with the increases if you like.
This company is all about making your accounting life easier so that you can do your job that you love without worrying about finances. Freshbooks has been designed specifically for service based business such as a plumber, architect, web designer etc. They are good for turning complex payments and management into an easier experience. Unlike Wave, they are able to keep up with fast growing companies/businesses. Similar to Quickbooks and Xero, Freshbooks offer a number of different monthly plans so that you can pick one to suit your needs.
Zoho is a software designed not just to help a business with their finances but it also provides multiple features to help promote and build a business. It involves different software in order to help you whenever you need it. Zoho is also reasonably priced as it tends not spend much on advertising which makes it appealing to customers.
There you have it, all the best accounting software and a brief summary of each. Now all that’s left to do, is explore each and pick which one is the best for you!
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