3 Best Accounting Software for Your Business
Making the leap into small business ownership is an exciting process for any entrepreneur. However, it can be easy to get a bit overwhelmed at first, especially when it comes to the nitty gritty business stuff like taxes and accounting.
In our article on accounting for online shops, we gave a basic overview of bookkeeping practices for eCommerce businesses and in it, we mentioned the importance of good accounting software.
So in this article, we’ll follow up with a list of the best accounting software available to help you launch your CNC machining business!
Accounting Software Basics
Accounting software has wide-ranging benefits for small businesses, irrespective of the industry in which they operate. With the right software, entrepreneurs find it easier to track accounts payable and receivable. Likewise, they can streamline tax reporting to ensure error-free filing.
Many vendors offer out-of-the-box software that eliminates the need to hire an accountant. Instead, you can handle the accounting tasks even if you have no prior experience. Accounting solutions available on the market can handle various aspects of bookkeeping, including generating invoices, tracking payments, producing financial statements, and other accounting tasks.
Some programs allow you to integrate third-party applications to maximize convenience. In doing so, they help you handle bookkeeping processes more efficiently. The software programs are available at varying prices, depending on their capability, features, and complexity. You can select the ideal solution based on your business or operational needs.
By selecting the best accounting software for your business, you are sure to save time and maximize operational efficiency. Additionally, count on the software to minimize the number of mistakes in your entries. Accuracy plays an important role in day-to-day bookkeeping and tax filing. The best part is that these solutions automate many routine tasks, freeing up your time for other important operational tasks that help grow your business.
On the other hand, cloud-based accounting software provides access to critical financial information from any location using different types of devices.
Here are the top three accounting software solutions you need to consider.
1. QuickBooks Online
Intuit's QuickBooks Online comes with various intuitive features that you can access in the cloud via a browser or a mobile application. Depending on the plan you choose, you can take advantage of features like sales and expense tracking, invoice management, consolidated customer information, report customization, and inventory management.
With QuickBooks, you will find it easier to understand your cash flow. This aspect is critical to improving your decision-making processes. On the other hand, you can rely on the software to help you generate quality invoices and financial statements.
Pros and cons of QuickBooks Online
Seamless integration with an extensive selection of third-party apps
Cloud-based access ensures flexibility
Employs the latest security technologies
Upgrade necessary to enroll more users
Occasional bank syncing issues
Widely regarded as the best accounting software for micro-businesses, Xero comes with various extra features to enhance your accounting processes. You can integrate this web-based solution with third-party payroll services. Additionally, it enables you to collect payments from clients via online payment systems like Stripe.
You can handle a variety of bookkeeping tasks without any prior accounting experience, thanks to Xero's intuitive features. The software allows you to collaborate with multiple colleagues and other stakeholders.
Its key features include project tracking, bank integration, generating invoices, and payments tracking.
Pros and cons of Xero accounting software
Efficient inventory management capabilities
Payroll integration with Gusto
Gain access to a wider selection of premium features
It comes with a mobile app for added convenience
Limited customer service
Poor reporting functionality
Charges fees for direct bank deposits
This software comes with an easy-to-use interface and a variety of basic and advanced bookkeeping features. It is ideal for service-based businesses, thanks to its superior invoicing functionality. You can count on the solution to simplify the customization of invoices. With FreshBooks, you can collect retainers, track receipts, send proposals, and request deposits more efficiently.
This cloud-based software is accessible via multiple platforms, including Android and iPhone devices. Thus, you can handle accounting tasks while on the go.
FreshBooks' key features include multi-currency, automated tax deductions, customized recurring invoices, and time tracking,
Pros and cons of FreshBooks
Tax-friendly expense categories
Project tracking via a Chrome browser extension
Tax app integrations
Multi-language billing capability
Lacks inventory management functionality
No payroll service
Whatever your business aspirations are, a solid grasp of best practices, like bookkeeping, is critical for success. Keeping expenditures in check, revenue channels open, and an eye on cash flow will ensure your small business or side hustle will stay profitable and help you achieve your lifelong goals.