More companies, whether they’re small or large, are taking advantage of accounting software. However, not all accounting softwares for small business needs are the same.
With so many options on the market, it can be difficult to find the right choice for your company’s specific needs.
What is accounting software?
Accounting software is a way for accountants and bookkeepers to record and report the financial transactions of a company. It’s helpful for many reasons including automating tasks such as invoicing and transaction categorization, managing customer and vendor contracts, creating custom reports, staying organized, and more. There are various types of software such as cloud accounting software that’s accessible in real time, billing and invoicing systems, or enterprise resource planning (ERP) systems that are designed for large corporations with complicated requirements.
How can accounting software help your company?
There are countless benefits of accounting software. If you’re a small business owner who is contemplating making the switch, here are some benefits to consider. First, it can highly improve accuracy and reduce errors that are linked to manually entering data. This improves how businesses track income, expenses, assets and liabilities.
Other benefits include an increase in organization, automating processes such as payroll management, generating custom reports, facilitating collaboration, and keeping data secure. Although software can be a bit of an investment, it is typically worth it to gravely improve your small business’ financial operations.
Three options to consider
There are countless options to consider, and the specific one that works best for you will largely depend on your budget and the use case of the software. Other factors to keep in mind are the ease of use, who will be using the software, and how scalable it is. Our team at Founder’s CPA has outlined some of the top choices of accounting software for small business for you to consider.
QuickBooks Online
QuickBooks Online is one of the most popular software options for both small and large businesses. It’s ideal to use for inventory management, in-depth contact records and transaction forms, and customizable reports. It can be used to benefit projects and payroll and it has a useful mobile app.
Zoho Books
Zoho Books is an affordable option for larger small businesses and growing businesses. It has a range of features that are useful but could potentially be overwhelming to small business owners who are just getting started. Every module has depth and flexibility and its reporting features are particularly flexible. When it comes to cons, Zoho Projects charges for turning uploaded documents into transactions and it doesn’t have inventory assemblies.
Wave
Wave is another option that has powerful invoicing and transaction management. Users report it having a strong dashboard and the majority of the features are free to use. This software can be beneficial for companies who use multiple currencies, but its overall feature set is limited and will likely only be suitable for very small businesses.
FreshBooks
FreshBooks has an appealing and simplistic user interface while still having the in-depth functionality that appeals to savvy business owners. It has a full-featured, double-entry accounting system with context-sensitive settings. Users enjoy using the FreshBooks mobile app and it can help with time tracking. On the downside, it has weak inventory tracking and can get expensive if additional team members are added.
Work with the Founder’s CPA team
While one-off software can be helpful for your team, it’s best to work with a company who can do more than software can. At Founder’s CPA, we offer industry leading accounting, tax, and CFO services for businesses in cryptocurrency, fintech and SaaS. Schedule a free 15-minute consultation to get started.
