How Choose the Best Accounting System
With 32.6 million small businesses operating in the U.S., it’s not a surprise that a large percentage of them struggle with cash flow and profitability. This is due to a lack of visibility on their business finances. The best way to maintain visibility on your business finances as a business owner is to maximize your accounting software.
The benefits of having accounting software are unmatched. Here are common uses for accounting software:
- Auto bank batching. Your accounting tool connects to your business bank account and automatically fetches all transactions.
- Quickly invoice clients and receive payments.
- Easily pay vendors and suppliers.
- Seamless inventory management.
- Receipts management.
- Team payroll processing.
- Easily manage taxes.
- Mobile app that gives you 24/7 access to your financial information.
Here are the important features you want to consider for your team.
- Intuitive user interface.
- The number of users.
- The security protection.
- Report packages.
- Mobile and tablet friendly.
- Cloud-based option.
- Invoicing options.
- Bill payments features & fees.
- Tax reporting and payments.
- Auto bank and credit card data fetching.
With so many accounting platforms on the market, here’s a list of platforms we set up and maintain for our small business clients.
1. Wave Apps
Wave works well for new small businesses. It focuses majorly on freelancing and consultancy services. Wave caters to the businesses’ accounting needs, invoice management, effective payroll management, managing the overall finance, the business transactions, billing, scanning of receipts, and much more. This is a free accounting software, but there is a fee for payroll processing.
2. Quickbooks Online
Quickbooks Online supports both new and existing businesses. This tool is more robust than Wave. QBO integrates well with your other operational platforms (e-commerce platforms such as Shopify, BigCartel, Samcart, etc.). QBO also has budget-to-actual reports that are great for financial analysis.
QBO is subscription-based accounting software. Plans start as low as $12 monthly. Here are the subscription levels:
- Simple Start — $12 per month: supports a single user
- Essentials — $20 per month: supports up to 3 users
- Plus — $35 per month: supports up to 5 users
- Advanced — $75 per month: supports up to 25 users
3. Xero Accounting
This accounting software is best for small scale accounting firms that need effective and efficient maintaining. The features include managing the business expenses, tracking the performance of multiple projects, and more. There is no limit to the number of users one may want to add. Along with this, it offers the double-entry system, making it more effective in its performance.
Xero is subscription-based accounting software. Plans start as low as $9 monthly. Here are the subscription levels:
- Early — $9 per month. Send up to 5 invoices and bills.
- Growing - $30 per month. Unlimited invoices, bills, and bank rec transactions.
- Established - $60 per month. It supports multi-currency, project management, and expense claims.
What's Next?
The goal is to find an accounting platform that fits well with your other operational platforms, easily tracks cash flow and profitability, and helps your tax professional easily access your financial records for tax filing.
We implement these tools and more for our clients. Let us help you gain visibility on your business finances using the right accounting tool. Schedule your consultation here at:
Remember, every dollar counts.