This article is a review of 7 best online accounting software for small businesses. The functions of accounting software are different from one product to another. It is also a valuable asset for current businesses which help accountants to keep record and report the status of the business.
Accounting software also helps to store various amounts of data without taking much office space. To complete audits is made easier through easy access to accounting information through accounting software, especially the ones that need to be evaluated the years before. It also helps external groups like the Internal Revenue Service (IRS) to investigate finances for tax purposes easily.
Benefits of Accounting Software for small businesses
Accounting software helps businesses run their daily business activities. It also keeps the business owners updated on their business financial status. The benefits include the following:
- It allows Chief Financial Officers to have an actual view of their financial data.
- It provides accurate cash situations by merging cash transactions to bank statements. This enables businesses to make proper investment, and other cash decisions.
- It also helps businesses to reduce excess records, send a good budgeting and forecasting record, and allow a well detailed expense management.
- It helps businesses manage their whole series of financial assets, which includes: acquisition, capitalization, depreciation, and retirement.
- It helps to enhance the process of using analytics to increase revenue and profitability.
The Best Online Accounting Software for Small Businesses
The following include the best online accounting software a small business can make use of:
1. Quickbooks Online
This accounting software is one of the best software for small business owners. The tools for accounting are effective with an outstanding user interface. The service is unique because it’s easily adjustable, it has different versions with hundreds of add-ons, and it gives better mobile access than other competitors.
Though it is expensive, but it’s relevant for small businesses that have a technology budget. For bookkeepers that don’t have much experience, the software is easily accessible for them and it has new features for more demands. Because it’s so flexible and user-friendly, it attracts a different type of business due to its flexibility and user interface.
Advantages Quickbooks online:
- The app is user-friendly
- It has an outstanding record management
- It has a great customer support
Disadvantages of Quickbooks online:
- The software is expensive
- It requires an upgrade for additional users
2. Xero
It is mostly used by startups and a growing business because it’s easily adjustable and it has a powerful reporting potential. The site made available tools for tracking projects and also up-to-date analytics.
Advantages of Xero:
- It has a complete accounting qualities
- It helps small businesses
- It has a great mobile apps
- It has a unique online help
- It has a delightsome combination of salary
Disadvantages of Xero:
- The customer support is restricted
- Reporting early is also restricted
- The transaction templates are not easily adjustable
3. Zoho Books
It provides a strong free and a reasonably paid plan. With Zoho books you can merge accounting data with various apps and functions that are connected, and these tools and functions include; customer relationship management (CRM), customer service, and email. This software is best for small businesses, businesses that are still growing and the ones that are established.
Advantages of Zoho Books:
- The pricing is moderate
- It also has an excellent mobile apps
- It has a reasonable language and foreign exchange options
- Its features is adjustable
- It has more reports than other competitors
Disadvantages of Zoho Books:
- It is too complicated for small businesses
- The merging is restricted compared to other competitors
4. Freshbooks
Freshbooks provides support and also helps small business owners to manage their finances easily. With freshbooks you can easily understand your data. It also provides solutions for businesses that need a unique pricing potential.
Advantages of Freshbooks:
- This software is easy to use
- It has a unique pricing
- It helps businesses to have a data of their finance record in a place
- Freshbooks enable businesses to make better decisions related to their finances.
Disadvantages of Freshbooks:
- It has additional cost for additional users
- It does not have a good stock tracking
5. Wave Accounting
It is a free accounting system which makes it the best options for small businesses to use. It helps to cover pricing and report of finances and it also provides salary services.
Advantages of Wave Accounting:
- It’s user-interface is friendly
- This software is also easy to use
- It helps to support foreign exchange
- It’s features are good for selection
- It has a great transactions management
Disadvantages Wave Accounting:
- It has few record templates
- It’s features are limited
- It does not have a project tracking
6. Patriot Software Accounting
This software allows small business owners to have their own payroll services and also provides affordable and convenient use of online accounting software. It also helps businesses to keep records of their income and expenses. This software also provides various reports on accounts which help business owners to know their business financial status.
Advantages Patriot Accounting Software:
- The payroll option has no restriction
- It is easily accessible on mobile
- The software has a merging accounts and payroll structure
- The price is highly competitive
Disadvantages of Patriot Accounting Software
- The supply cannot be traced
- The products record is in minimal
- The time cannot be tracked
7. Sage 50 Accounting
This software has more features than other software which makes it more expensive. It provides templates for more sales than other software and also creates and tracks jobs.
Advantages of Sage 50 Accounting:
- It has a unique dashboard
- It has a comprehensive record and transaction form
- The stock management tool is up-to-date
- It has a large report
Disadvantages of Sage 50 Accounting:
- This software has no mobile app
- It is only available on window
Conclusion
For small businesses to manage their finances efficiently they need to choose the right accounting software which will make a lot of differences for them. Some of the accounting software has free features while some come with a pricing. And with accounting software, managing business accounts, tracking expenses, bookkeeping, making records of stock and knowing the business financial status is made easy.
Frequently Asked Questions
How much does Accounting Software costs?
For small businesses the accounting software costs about $7 – $350 monthly but the pricing depends on the type of business you are doing and what you want to accomplish. Though there are some accounting software that are free but it has limited access to some of the features.
The best affordable accounting software for small businesses has a flexible price which includes some bookkeeping features like income record, expenses, sales, and purchases.
Can I create my own Accounting Software?
Yes, accounting software can be created by an individual but it requires a skill for it. You can work with a development team or hire one to make it easy. Some of the features an accounting software must have include: User-interface, Foreign exchange support, strong data protection, merge with other systems, invoicing and billing, tax managements and many more.
Can I use Excel as my accounting software?
Microsoft Excel is not a good accounting system because it does not have some of the qualities of an accounting software. Although spreadsheets can be used for basic accounting tasks like invoicing, budgeting, and also to create financial statements.
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