If you are a business owner, you know the importance of having accurate financial reports for your company. Even more important is developing an effective bookkeeping system that will ensure your records are organized and ready to be reviewed on a regular basis. Good quality bookkeeping software can help you achieve these goals, reduce the time it takes to complete your bookkeeping tasks, and leave you with more time to focus on other business operations.
Software has always been an important element of the bookkeeping business. It helps to keep things in order and you can easily record data, archive it for future reference, send documents by mail or upload them to a cloud-based storage.
QuickBooks Online
QuickBooks Online sets the standard for bookkeeping software with thorough, easy-to-understand financial reporting. Its cheapest plan includes all the financial reporting basics (profit and loss statements, balance sheets, and cash flow statements), plus sales tax and mileage tracking. Pricier plans include reports for accounts receivable and payable, budgeting, inventory, sales, profitability, and more.
If QuickBooks Online has too many features for your needs but you still want QuickBooks’s stellar reporting, QuickBooks Self-Employed might be a better fit. It starts at $15 a month and includes access to limited reports, plus freelance-specific features like mileage tracking and easy syncing with TurboTax (another Intuit product) come tax time.
As an online cloud-based accounting software, QuickBooks Online was made specifically for non-accountants (unlike the clunkier QuickBooks Desktop, which was made for accountants). Its ease of use is hard to match. Plus, if you spend more time traveling to on-site jobs and less time sitting in front of a computer, QuickBooks Online includes a fantastic mobile accounting app. You can use it to create invoices, capture receipts for easier expense tracking, and access the same financial reports displayed on the online interface.
Unfortunately, even though QuickBooks Online is our top pick, it’s also our priciest one. The cheapest QuickBooks plan starts at $25 a month—higher than any of our other recommended bookkeeping solutions. And if you want the best reporting QuickBooks can offer, you’ll need at least the $40 Essentials plan or, preferably, the $70 Plus plan.
FreshBooks
If you need a simpler way to create and keep up with what seems like a million and one invoices, Freshbooks may be the tool for you. It offers a greater level of customization than most other accounting software, and it requires little to no experience to use.
Freshbooks’s customizable features make it easy to:
- Send out estimates, customize unlimited invoices, send payment reminders and add late fees automatically, manage project budgets, and accept deposits and payments.
- Bill clients in multiple currencies, languages, and on a subscription or retainer basis.
- Integrate tax apps, filing tools, and other tools you use, such as Gusto, GSuite, and even Bench.
Xero
Bookkeeping and accounting can be frustrating enough if you’re not a pro. Learning how to use complicated accounting software on top of that is most likely not your ideal solution.
Thankfully, Xero is a simple, straightforward online accounting software with enough functionality to accommodate a small business at any stage of growth.
Xero’s features include:
- Invoice and quote sending, transaction reconciliation, bill and receipt capture, cash flow and business snapshots, project tracking, expense claims, and even analytics.
- An optional Gusto payroll add-on to calculate pay and deductions, pay employees, and simplify compliance.
- Integrations with apps and tools such as Stripe, PayPal, WooCommerce, Pipedrive, and more.
BookKeeper.com
- Uses QuickBooks
- CFO and business advisory service
- Accrual and cash
- Optional KPI report
Bookkeeper.com has been providing small businesses with bookkeeping and accounting services for 30 years.
Besides small business accounting services and bookkeeping, Bookkeeper.com can manage your payroll, prepare and plan your taxes, and manage your bills. If you have a fast-paced business, having someone else handle those tasks can be lifesaving.
With this service, you get the following bookkeeping services:
- Account reconciliation of bank and credit card accounts and electronic transactions into Quickbooks
- Monthly financials: balance sheet, profit and loss, general ledger, statement of cash flows
- Advice (business consulting, tax planning, necessary software training)
- Essential document storage
- Accounting software setup
- Expense management
Merritt Bookkeeping Services
- Uses QuickBooks
- 90 day money back
- Discount for previous months
- Affordable
Merritt Bookkeeping Services, Inc. was founded in 2010. The company offers virtual bookkeeping services. But only the most basic business bookkeeping services – tax planning or payroll services aren’t available, even at an extra cost.
However, we have some good news for QuickBooks addicts! Meritt is the top choice for online accounting software working with QuickBooks.
Here’s how it works:
Meritt categorizes your transaction using QuickBooks. It then emails you your monthly reports. As no tax services are available, you would need to email the reports to your CPA.
There is just one plan, at $190 per month.
What we like about Merritt is that it offers the most affordable bookkeeping services, along with a 90-day money-back guarantee. What we don’t like is that there is no option to purchase additional services (tax, CFO).
If you already have someone on your team that can prep your taxes, file them, etc. then you can use Merritt’s services to save some time. However, if you need extra help from a virtual accountant, you may want to hire a company that offers a full package of services.
Sage Business Cloud Accounting
Like Xero and QuickBooks, Sage Business Cloud Accounting’s reports are user-friendly and very easy to read. Its business trend reports are particularly useful—they compare your business’s current health with its past growth and future goals so you can keep your business on track for success. Sage also offers a lot of support to first-time business owners with minimal bookkeeping experience. Its live Q&A chat lets you ask an expert financial question during business hours, and you can always schedule an appointment with a Sage Accounting expert.
Sage Business Cloud Accounting starts at just $10, which is perfect for freelancers and self-employed business owners with no employees. But to get the most out of Sage Business Cloud Accounting, you really need the $25-a-month plan. The cheaper plan limits you to basic reports and one user only. In contrast, the pricier plan includes more thorough reporting, unlimited users, and cash flow forecasting.
Bill.com
Best for smart AP and AR automation and new bill payment capabilities.
Bill.com offers a cloud-based solution to automate Accounts Payable and Accounts Receivable. It contains new bill payment capabilities. It provides an integrated platform that will let you connect your payment accounts and accounting tools for automating payments from start to finish.
Features:
- Bill.com offers smart features like automatic data entry.
- It can detect duplicate invoices.
- It supports new payment options like ACH, virtual cards, international wire transfers.
- It logs the payment-related activity.
- It provides features to set up approval workflows and custom roles.
Cons:
- As per the reviews, the reports features need improvement.
This cloud-based software is the best fit for small to medium-sized businesses. It will simplify international payments. It can automate your payments from the start to finish. It will increase efficiency and give you more control.
Conclusion
A solid software package can help you manage your bookkeeping, but not all packages are created equally. It’s vital to choose a package that is easy to use and offers everything your small business needs to keep track of your finances.