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5 Best Bookkeeping Software Tools for Small Businesses

5 Best Bookkeeping Software Tools for Small Businesses

5 Best Bookkeeping Software Tools for Small Businesses

November 21, 2022

5 Best Bookkeeping Software Tools for Small Businesses

peakreliance

Accounting, Bookkeeping

The perfect accounting software assist small business owners to conveniently track their accounts and expenses, prepare for the upcoming tax season, and stay on top of their finances. For numerous small businesses, engaging a third party to handle taxes and payroll is a more cost-effective option. But with so many options on the market today, choosing can be difficult. That’s why we’ve rounded up our top 5 accounting software for small businesses so you can instantly find the right solution.

What is Accounting & Bookkeeping Software?

An accounting/ bookkeeping software can be used to keep track of a business’s’ finances. The best options to choose from are those that offer the following:

  • Set-up accounts and make journal entries.

  • Can get linked to your company’s bank account.

  • Pay bills automatically and meet all deadlines.

  • Generate invoices & send them when due.

  • Log all payments & expenses.

  • Run reports and provide accurate data for audit.

There may be other additional functions you need depending on the nature and size of your company. You want a software that makes the work of running a business easy and spontaneous, freeing you up, as the decision maker to do other more significant things.

Who Can Benefit from Using Accounting and Bookkeeping Software?

Any business can benefit a great deal from automating their finances and using accounting and bookkeeping software. Regardless of the nature and structure of your business, there are financial procedures that can be simplified with the right software. For example, in case you need recurring invoices for a client, having a software enables you to generate specific ones in no time. These can be configured to run automatically in your bookkeeping and bookkeeping software.
Businesses of every size can, benefit from using accounting software. It can be used to incorporate data entry, track payables and receivables, handle payroll, and modernize journal entries. It’s also excellent for running reports that help you meet your short-term and long-term business goals.

Are Automated Accounting & Bookkeeping Software Secure?

Some of the most common questions circulating around about online accounting software are related to the topic of security. It is fair enough for business owners to be worried about this aspect as financials is a sensitive and confidential matter for everyone. If you are going to store your accounting information in the cloud, you need to be confident that your data is safe.

Online accounting software and accounting software are safe. The companies analyzed here take all precautions to protect their customers’ information. In numerous ways, keeping data in the cloud is more secure than storing it on your device. If your device fails or you lose your laptop or tablet, you can wipe the device storage. With cloud storage, you can access your information from anywhere, on any device.

Free Accounting & Bookkeeping Software

If you run a small business, you may need to consider the price first when it comes to choosing an appropriate bookkeeping software. If your business is in its beginning phase you may be looking out for cost-effective options or considering if there are any free options.

Good news! Many auto accounting software have free versions!

However, the thing to keep in mind is whether you’re getting the features and functionality you need with free software version. If you need basic assistance until you can afford the premium software, it is recommended to use the free version.

How Much Does Accounting & Bookkeeping Software Cost?

Accounting and bookkeeping software costs vary by product. As mentioned, there are free options with limited functionality. Many of the options we reviewed have tiered pricing, from budget options for small businesses with only a few users to enterprise-level pricing for larger organizations. Many companies offer discounts on the monthly fee if you pay annually in bulk. This is something to keep in mind if you need to limit your spending.

Accounting Software:

  1. QuickBooks Online

QuickBooks Online is a solid accounting software with quite a lot of exceptional features. It was developed to be intuitive and easy to use. The process of setting up an account is simple because of the user-friendly interface. It is laid out in an organized manner, making it easy to find whatever you are looking for. Best part is that the software doesn’t entail you to have accounting experience.

Although QuickBooks Online isn’t quite as resourceful as QuickBooks Pro, it has everything a small business needs and is cloud-based. The software is updated by the company regularly, with new features being added constantly, it is easy to share information with your accountant.

  1. Xero

Xero’s cloud-based program offers account management, billing, expense reporting, and payroll. It also integrates with thousands of other apps, so you can add more functionality as you need it. The interface is clean and user friendly. The company updates the product every 3-6 weeks based on user feedback through community forums. They also offer excellent customer service. Xero is headquartered in New Zealand but supports US customers. The software is cloud-based, so there is no need to download the program to your computer. The company targets small and medium enterprises. They facilitate importing data from other accounting systems.

  1. Zoho Books

Zoho Books is not only easy to set-up and use, but its focus on automation makes it easier to manage than most tools. Its robust features include a one-time and recurring billing, online and offline payments, banking reconciliation, automatic tax calculation, reporting, 1099 contractor management, and more.

Zoho also offers add-ons such as add users and advanced automatic scans.

With such a wide range of features, this tool has almost everything you need to manage your business finances now and in the future.

  1. FreshBooks

FreshBooks offers an easier way to generate and manage millions of bills and if this sounds at all relatable, this could be the tool for you. It offers a higher level of customization than most other accounting programs and software and requires little experience to use as well.

Freshbooks’ customizable features make it easy to send quotes, manage project budgets, automatically add late charges, customize unlimited invoices, send payment reminders, accept deposits and payments. It allows you to bill your customers in multiple currencies, languages, subscription or retainer bases. You can also integrate tax apps, filing tools, and other tools like Gusto, GSuite etc. with FreshBooks.

  1. Sage

Sage Business Cloud Accounting, like the others mentioned so far, is a cloud-based accounting software that does not require accounting knowledge to use. In fact, we recommend this as one of the best accounting solutions based on your industry, company size, and unique business needs.

Sage enables its users to:

    • Generate and track invoices, track and forecast cash flow, accept and make payments, automate admin, manage inventory, track expenses, and much more.

    • Scale with add-ons such as human resources management and estimating.

    • Augment multiple users such as employees to your account, as well as share real-time access with your accountant at no extra cost.

    • Sync information from your bank and apps such as Miro, and Gmail.

 

 

Post Tags :

Accounting, Bookkeeper, Bookkeeping Software, Outsource Bookkeeping

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Why Outsourcing Your Bookkeeping is a Great Idea

Why Outsourcing Your Bookkeeping is a Great Idea

Why Outsourcing Your Bookkeeping is a Great Idea

November 20, 2022

Why Outsourcing Your Bookkeeping is a Great Idea

peakreliance

Accounting, Bookkeeping, Taxes

Being the head of a small-scale business, you spend the majority of your time overseeing daily operations. Performing a number of activities is likely a source of great pride for you, including the task of bookkeeping.

Performing these tasks singlehandedly might be a personal achievement for you as a business owner, however the task can quickly start to feel like a mountain of work after a busy work-day. This becomes even more daunting when you factor in other financial responsibilities like the mandatory tax filing deadline that needs to be met or the monthly bank reconciliation. Sooner than later, it’s better to start thinking of alternative ways of bookkeeping. 

The Best Time to Hire a Bookkeeper

At the early stages of your business, it may make sense to manage bookkeeping by yourself, given that the client numbers and subsequent transactions would be at the tip of your fingers.

The key is to know at what point must you begin looking for a professional bookkeeper. The following conditions might help you as a guide in reaching that decision within a good time-frame.

  • Unlike before, book management takes up more and more of your time.
  • Profit margins, cash flow and expense calculations and records are pending and there is minimal clarity on finances. 
  • Like clockwork, this leads to a barrier against your ability to make important business decisions since you don’t know the clear financial standing of the company. 
  • Inevitably, without proper records, you struggle in doing your income taxes.

When this becomes a norm and your finances are all over the place, it is imperative to start looking for a professional bookkeeper or an accountant. 

Fortunately, there are a number of ways to get around this, otherwise messy, task of bookkeeping. The following are some of these ways:

DIY Accounting Software

If you feel that you must do the bookkeeping yourself, there’s good news. There are plenty of accounting software options which provide tools that help you lay out and manage incomes and expenses along with generating financial statements for you.  Of course, learning how to use accounting software can be a challenge in itself, and your first couple of entries may include errors, thus wasting your efforts without expert oversight. 

In-House Bookkeeping

When your bookkeeping becomes a job itself, your best bet might be to just hire an in-house bookkeeper; an employee who will take care of all that financial workload without you having to worry. 

The costs of that do come along, however, as not all small businesses can afford personal bookkeepers. You would need to provide office space for your new employee, along with a computer to work on. We haven’t even mentioned the mandatory holidays and medical insurance that will have to be ensured for the bookkeeper, along with retirement perks. A cost-benefit analysis will have to be done before you, as a small business, make this decision. 

Accounting Services

Large businesses often hire accountants or CPAs that help them in navigating with taxes, business planning, strategic financial decisions and forecasting. 

However, if all you require is bookkeeping assistance, an accounting firm might not be the best choice. In general, bookkeepers are more involved in administrative tasks, whereas accountants provide knowledgeable strategic help. They can manage your books, of course, but that knowledge frequently comes at a price that a small business might not be able to afford.

Outsourced bookkeeping

You may get professional support without having to hire a full-time staff by using outsourced accounting services, which are frequently the ideal middle ground between DIY and in-house bookkeeping.

All of your bookkeeping needs can be met by the knowledgeable professionals at outsourced bookkeeping services. They’ll manage all of your accounts payable, receivable, and credit card transaction entries as well as the preparation of your financial reports, including balance sheets.

  • Save staffing and payroll costs

You would wind up spending more on insurance, perks, and training if you hire a bookkeeper. Even if your internal bookkeeper is working on part-time basis, it wouldn’t save you from high payroll expenses given that employment taxes will have to be paid. 

When you outsource your bookkeeping, whether on a weekly or monthly basis, you only pay for the job that is accomplished. By doing this, you might avoid paying a staff bookkeeper who might work longer hours between busy seasons.

  • Access a pool of experts and resources 

An internal bookkeeper frequently works alone, which may see them running into unexpected delays, leaving them helpless without the help of necessary resources to seek help from. Additionally, they can lack the expertise needed to modify bookkeeping systems to accommodate additions and modifications you make to your company.

When you outsource your bookkeeping to a trustworthy company, you get access to a larger knowledge base of seasoned financial professionals. An outsourced bookkeeper is more likely to keep up with state and federal regulatory changes that could affect your company now or in the future because they frequently manage the books for a range of clients.

  • More time to focus on your business 

Often, small business owners learn the hard way how time-consuming and difficult bookkeeping is. In fact, the average small business owner puts in a full day’s worth of labor keeping their books each month. You can focus on expanding your company once you have outsourced this duty.

  • Enjoy a stress-free tax season

It is a blessing to be on top of the game long before the tax filing deadlines approach. Having an accurate record maintained and having the satisfaction of a stress-free audit in case IRS decides to carry it out is completely worth the cost you will be paying to an outsourced accountant. 

  • Take advantage of the latest technology

Since an outsourced bookkeeper’s career depends on maintaining effective procedures, they are more likely to make technology investments to speed up their job and ensure the accuracy of your data. The majority of outsourced bookkeepers utilize systems that automatically import transactions, necessitating less input on your part as the business owner. Without needing statements or receipts from you, your bookkeeper can organize and reconcile your books. Many also use cloud-based platforms like FreshBooks, Xero etc., which make it safe and simple to access your information from any device, at any given time and place.

  • Scale your books with your business

Your organization will require additional bookkeeping assistance as it expands. Recruiting and educating a second bookkeeper increases payroll expenses significantly and reduces your profit margins.

 

What happens if your business experiences stagnation? The bookkeeper on your staff continues to get paid while working less and still obtaining the same benefits. Even with less money flowing in, your obligation to pay employee taxes stays the same. Outsourced bookkeeping services are adaptable and simple to scale to changes in your company’s requirements. This is especially practical if your business is seasonal because the service is flexible enough to meet your demands.

Post Tags :

Accounting, Bookkeeper, Bookkeping, Online CPA, Outsource Bookkeeping

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