Small businesses can benefit from using accounting software, and this is especially true if the company is looking to become more profitable. Accountants tend to recommend software programs that give you all the tools you’ll need to manage your finances efficiently. While I’ve already discussed cloud-based accounting solutions for smaller businesses, I wanted to look into what’s available for medium-sized businesses as well.
The best cloud-based accounting software to help small or mid-sized businesses simplify their accounting process. Accounting can be the most stressful part of starting your small business. Accountants aren’t cheap, and keeping your books can be costly, time consuming, and tricky.
Though there are tons of cloud-based accounting software out there, it is best not to pick one blindly. The best software should come with the following features to help manage your business better than the rest.
QuickBooks Online
QuickBooks Online is a cloud-based accounting solution created for small businesses, independent firms, and freelancers. By combining all essential accounting tools in a single platform, this application helps small businesses simplify tedious and time-consuming accounting and financial management routines, thus saving more time to prioritize more urgent tasks. Its features include automated data collection, tax calculations, invoice management, expense tracking, balance sheet reporting, sales monitoring, bill management, and more. Quickbooks Online is also available in multiple devices, which allows for more mobility.
Try out QuickBooks Online with their free trialVISIT WEBSITEFREE TRIAL
Why is QuickBooks Online suitable for medium-sized businesses?
All-in-one platform. QuickBooks Online is designed to offer all essential accounting tools in a single platform, including profit and loss reporting, invoice customization, bill payments, and more.
Automated data collection. This accounting solution allows you to automate your data collection process, which ensures that your financial information is always up to date.
Auto-sync with your devices. QuickBooks Online supports multiple devices and is equipped with automatic data synchronization capabilities, which allows you to access your accounting and finance related data, tasks, reports, and more from your preferred device.
Customized reporting. This application allows you to generate reports based on your preferred data visualizations in order to make it easier for you to get insights into your financial data.
Enhanced data protection. With QuickBooks Online, all confidential data that enters your accounting system on a daily basis will be protected by your choice of intuitive data security feature.
How much does QuickBooks Online cost?
Built for small businesses, QuickBooks Online offers affordable pricing plans, which starts at $10.00/month.
Detailed QuickBooks Online ReviewREAD MORE
Tipalti
Tipalti is a unified, cloud-based payment automation and management software that challenges the way how money flows for businesses, from onboarding to tax and regulatory compliance requirements. Tipalti helps businesses stay ahead of their game in strategy by streamlining back-office operations. It offers tools for forecasting, cash flow analysis, business productivity, and growing its ventures down the line.
By streamlining the entire AP process, earlier payments are secured and you hit revenue targets more efficiently. Tipalti also has built-in global compliance and regulatory requirements. With integrated audit logs and workflow approvals, you lessen the risk of financial decline, putting your business in a favorable position. The solution gives nuanced reports of payouts and transactions through its integrated ERP system, synchronizing payment procedures, currencies, locations, and other variables. Other than its powerful integrations, the product also offers a comprehensive suite of tools for accounts payable, process enhancement, automation, and risk management.
Try out Tipalti with their free trialVISIT WEBSITEFREE TRIAL
Why is Tipalti suitable for medium-sized businesses?
Streamlined workflows. Tipalti features a comprehensive suite of tools for streamlining the entire AP process. As such, it helps streamline more than 50% of all manual, global, and mass payment transactions in more than 190 countries. With such powerful AP tools at your disposal, you can cut 80% of the manual grunt work.
Maximum scalability. Regardless of your business size, you can effortlessly scale your AP operations with Tipalti. You no longer waste more resources rebuilding another wheel as Tipalti adapts to your requirements as your business thrives – in the number of customers, your human resources, the bulk of payment procedures, expansion, and other factors.
Maximum revenue generation. By streamlining the entire AP process, you are able to increase revenue margins by facilitating earlier payment transactions. Tipalti has a vast, reliable partner base that can help your business facilitate earlier payments to your suppliers. Your supplier gains better cash flow, and so do you. Everyone leverages this opportunity to generate more growth.
Mitigated risks. Tipalti has built-in audit logs and regulatory and financial compliance requirements embedded in its operations. You get access to a wide array of tools for mitigating financial risks, including digitized tax form collections, updated database of global financial and regulatory requirements, TIN matching, workflow approvals, audit logs, and more. Tipalti has your best interest in mind to ensure that your business does not suffer from heavy losses from risks.
How much does Tipalti cost?
Tipalti services its tools on a quote-based plan. Contact the vendor directly for custom pricing.
2. Best Accounting Software For Large Businesses: Xero
Xero is the best accounting software for medium- to large-sized businesses searching for the full accounting package. Unlike, QBO offers unlimited users making it a great fit for large businesses.
Xero is cloud-based accounting software that has been giving QuickBooks a run for its money since 2006. The software offers strong accounting, advanced features, unlimited users, and is the software of choice for over 1,000,000 users and 16,000 accounting firms.
While Xero has a semi-steep learning curve, that’s the price you pay for advanced features like detailed contact management, inventory, project management, time tracking, budgeting, and more. The company’s customer service and mobile apps leave something to be desired, but Xero still receives a large number of positive customer reviews. Xero also has some of the best security on the market when it comes to cloud-based accounting and offers 800+ integrations.
The software is ideal for medium to large businesses in need of multiple users and advanced features at an affordable monthly cost.
Pros
- Unlimited usersAdvanced featuresStrong accountingNumerous integrations
Cons
- Poor customer supportSteep learning curve
Xero Pricing
Xero offers three pricing plans ranging from $11 – $62/month. Each plan comes with unlimited users. The larger the plan, the more features you have access to. Xero does not offer payroll; however, it does integrate directly with Gusto, starting at $39/month + $6/month per person.
Xero Features
Xero offers a large number of features. In terms of accounting, the software supports expense tracking, bank reconciliation, fixed asset management and depreciation schedules, a chart of accounts, accounts payable, journal entries, and over 55 customizable reports. Some of our other favorite features include:
- InvoicingEstimatesContact managementExpense claimsInventoryProject managementTime trackingPacking slipsPurchase ordersBudgetingMultiple currenciesClass tracking
Xero also has several automations to save you valuable time. You can set recurring invoices, automatic invoice reminders, and default email messages to name a few.
Xero is easy to use once you get to know the software. Although the interface is well-organized, initially setting up the software and learning how Xero works can be difficult. If you can get past the semi-steep learning curve, Xero’s advanced features and other offerings are more than worth it.
This is where Xero drops the ball. Xero offers poor customer support. There’s no phone support and email response times are long (and often the responses are unhelpful). To Xero’s credit, there is a help center with many how-to articles. If you need extra help, download our complete How To Set Up Your Xero Account ebook for free.
When To Use Xero
Xero is a great choice for medium- to large-sized businesses. It offers unlimited users, tons of features, and strong accounting to meet almost any business need — and what Xero doesn’t have, one of its 800+ integrations will.
Conclusions
Would you prefer a cloud-based accounting software, or would you rather have a local version? Cloud based accounting software is growing in popularity. There are certainly benefits to going cloud. There are also important factors to consider when deciding which software is best.