If you’re a small business owner, you understand the importance of keeping your finances in order. With the right accounting software, you can automate time-consuming tasks, track expenses, and even generate reports. But with so many options available, it can be overwhelming to choose the best small business accounting software. That’s why we’ve put together a guide to help you evaluate the options and choose the best one for your business.
Features to Look for in Small Business Accounting Software
1. User-Friendly Interface
The software should have an intuitive interface that’s easy to navigate. You don’t want to waste time trying to figure out how to use the software.
2. Accessibility
Choose a software that you can access anywhere, anytime. Cloud-based solutions offer the flexibility to work from any device, while desktop-based solutions offer more control over your data.
3. Invoicing and Payment Processing
The software should allow you to create and send invoices, and accept payments from customers. It should also be able to track unpaid invoices and send reminders.
4. Expense Tracking
The software should allow you to track expenses, including receipts, bills, and payments. This will help you stay organized and make tax time easier.
5. Reporting
The software should generate detailed reports, such as profit and loss statements, balance sheets, and cash flow statements. This will help you make informed financial decisions.
6. Integration
The software should integrate with other tools you use, such as your bank account, payment processors, and customer relationship management software.
Top Small Business Accounting Software in 2015
1. QuickBooks
QuickBooks is one of the most popular accounting software for small businesses. It’s user-friendly, packed with features, and offers a range of pricing plans to fit different needs.
2. Xero
Xero is a cloud-based accounting software that’s known for its simplicity and ease of use. It offers features such as invoicing, expense tracking, and inventory management.
3. FreshBooks
FreshBooks is a cloud-based accounting software that’s designed for small service-based businesses. It offers features such as time tracking, invoicing, and project management.
4. Zoho Books
Zoho Books is a cloud-based accounting software that’s affordable and easy to use. It offers features such as invoicing, expense tracking, and project management.
5. Sage 50c
Sage 50c is a desktop-based accounting software that’s designed for small businesses. It offers features such as invoicing, expense tracking, and cash flow management.
Frequently Asked Questions
1. What’s the difference between cloud-based and desktop-based accounting software?
Cloud-based software is accessed through the internet, while desktop-based software is installed on your computer. Cloud-based software offers more flexibility, while desktop-based software offers more control over your data.
2. Can I import data from my old accounting software?
Most accounting software allows you to import data from other software or spreadsheets. Check with the software provider for specific instructions.
3. Can I track inventory with accounting software?
Some accounting software offers inventory management features, while others don’t. Check with the software provider for specific features.
4. Can I use accounting software to file taxes?
Accounting software can help you prepare financial statements, but it’s not a substitute for a tax professional. Consult with a tax professional for specific tax advice.
5. What’s the cost of small business accounting software?
The cost varies depending on the software and features you choose. Cloud-based software typically charges a monthly fee, while desktop-based software charges a one-time fee.
6. Is there a free small business accounting software?
Some software offers a free plan, but it may have limited features or be limited to a certain number of users. Check with the software provider for specific details.
7. Can I access accounting software on my mobile device?
Most cloud-based software offers a mobile app, while desktop-based software may require remote access.
8. Is accounting software secure?
Most accounting software uses encryption and other security measures to protect your data. Check with the software provider for specific security features.
Pros of Using Small Business Accounting Software
1. Saves Time – Automate time-consuming tasks such as invoicing, expense tracking, and payment processing.
2. Increases Accuracy – Reduce the risk of errors by automating calculations and reconciliations.
3. Improves Organization – Keep all your financial information in one place, making it easier to find and analyze.
4. Facilitates Decision-Making – Generate reports that provide insights into your business, helping you make informed financial decisions.
Tips for Choosing Small Business Accounting Software
1. Evaluate Your Needs – Determine what features you need and what your budget is.
2. Research Options – Research different software options and read reviews from other users.
3. Take Advantage of Free Trials – Most software offers a free trial period, so take advantage of this to test the software.
4. Consider Scalability – Choose software that can grow with your business.
5. Get Support – Choose software that offers support, either through a help center or customer service.
Summary
Choosing the best small business accounting software is an important decision that can have a significant impact on your business. Consider your needs, budget, and growth potential when evaluating options. Look for software that’s user-friendly, accessible, and offers features such as invoicing, expense tracking, and reporting. With the right software, you can save time, increase accuracy, and make informed financial decisions.