Choosing the right Accounting Software
Finding the right accounting software for your business can be challenging. There are quite a few options out there. This is a great guide where we outlined the 5 things to consider when making this decision.
We also invite you to watch Our founder as she analyses the different account software to choose from and the one she prefers. Listen, watch and learn!
In This Video
What to consider when choosing accounting software
Your skillset and abilities
- Do you have an accounting background? Most small business owners are good at what they are selling and don’t have a lot of interest or time to spend learning accounting. They want a program that will do the heavy lifting for them
- Are you good with technology? Running a business is a full-time job itself, so having an application that is easy to use. No use having it if you can’t use it
Cloud Applications
- Way of the future, might as well adapt now
- They are safe
- Can be used anywhere (no longer stuck at the shop doing your books)
- Easy to invite your tax preparer (no more sending them a copy or waiting for an appointment)
Budget
- There are applications for all budgets
- The more your business needs, the more expensive
- Find something that can grow with your business’s need
Integrations
- Look for a program that can bring add on features that your business needs such as POS, inventory, invoicing, accepting online payments
- You will eventually want or need to grow, and a program that allows integrations means you can grow with that program
Your Tax Preparer
- What and how does your tax preparer prefer getting the information (FYI, they do not love paper or excel and a box of receipts)
- Having a program they are familiar with and can get the information they need to do your taxes will actually save you money. They will charge for the extra time needed to put together the information if it is not provided in an easy-to-use platform.
Let’s review the top-rated programs, so you can decide for yourself what the right fit is for you and your business best.
5 Top-Rated Options Reviewed
Xero
- Cloud based
- Mobile
- Payroll integration with Gusto Payroll
- Lower starting price point,
- Options
- User-friendly
- Offers Hubdoc (a source doc capture solution)
- Basic plan is extremely limited in transactions and no multi currency
- Limited in bank integrations
- Not scalable
- Can’t set your own fiscal year
- Limited reporting
- Limited App Integrations
- Limited Customization of Templates
- ACH fees for receiving payments
FreshBooks
- Great beginning price point
- Cloud-based
- User-friendly
- Offers in-house payment integration.
- Doesn’t work for companies selling products
- Lackluster to non-existent reporting
- Price quickly adds up if you need more than one user
- Lack of flexibility or customization
- No inventory management
- No payroll service
- Not a great stand-alone option yet not app integrations
Wave
- Cloud Based
- Can run multiple business on one account
- Free bookkeeping, invoicing and reporting
- Payroll add-ons (but they do cost and isn’t available everywhere)
- Expensive payment processing
- Limited app integration
- No inventory management
Net Suite
- Highly recommended
- Known for streamlining accounting tasks
- Offers a wide-ranging financial solution.
- It is pricey
- not user-friendly
- no sales tax tracking
- invoicing is an add of for an additional fee
- poor customer support
- challenging implementation.
- Better for bigger businesses with an accounting department
QuickBooks Online (QBO)
- Industry leader
- Cloud-based
- Affordable with different price points for different needs
- User Friendly
- Scalable
- Lots of Integrations
- Wide range of features like income and expense tracking, essential reporting, bill pay, invoicing, sales tracking, inventory tracking, and sales reporting, multiple users, and user permissions
- Most commonly used by small businesses and tax professionals, so easy to find help
- Advanced subscription now offers Fathom (analysis tool for deeper dive reporting and forecasting)
- Occasionally syncing problems with banks
- Upgrade required for more users
What Is Our Preferred Bookkeeping Software, You Ask?
We hear from so many business owners that they are frustrated with QuickBooks Online, also known as QBO.
They start out with the understanding it is easy to use but are struggling with it, leaving them to wonder:
Is it worth it? Especially since they jacked up their fees.
If you are wondering the same thing, you aren’t alone. Our team wanted to jump ship and find another option too. After trying several other programs, We found ourselves elf back with QBO.
We have worked with hundreds of business owners and dozens of CPA firms, and I keep coming back to QBO because it works.
It is an industry leader for a reason. Combining all the best options for ease of use, scalability, functionality, app integration, being cost-effective and working with tax professionals. That being said, we do know there are functionality issues people experience.
However, with the right training, you too can become well versed or work hand-in-hand with your bookkeeper to better track the business financials.
The goal is to find software to lighten the load and organize, so you can have visibility into your finances at all times.
Have questions or need consulting expertise for starting a new business?
We can help!