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Best Accounting Software for Craft Business

If you are not already using bookkeeping software to track your business finances, doing so is one of the smartest steps you can take to save time, improve your cash flow and simplify your processes.

How to choose the best bookkeeping software for your handmade businessPhoto by Grovemade / Unsplash

Entrepreneurship is an interesting thing. It can either be a money-making machine, or a dream that slowly trickles down to nothing. If your business becomes more successful, you might find yourself thinking about the best accounting software for craft business.

A craft business is considered to be one of the most common types of business. Many people have heard of this term but some are still not aware of what it actually refers to. A craft business is basically a business that is based on selling services or products using resources that you can make with your hands (often referred to as crafts).

For a craft business, accounting software is a necessary part of the job. Whether you are a freelance designer, a crafter selling your wares online, or a small-scale manufacturer, accounting software can help your manage your business in the most effective way possible. Here are some popular accounting software for you to consider adding to your craft business toolbox!

Considerations:

When evaluating bookkeeping software, you’ll want to consider the following:

  1. What features do you need? You’ll want to make a list of your desired features and then split these into essential and “nice to have”.
  2. Do you manufacture your products from raw materials? If so, you’ll need to ensure that you have an inventory module included in your package to calculate your COGS.
  3. Will this product grow along with your business, or are you likely to require an upgrade to something else in the future?
  4. Does it offer the ability to import data to limit the amount of data entry you need to do? You’ll be wanting to look for the available integrations advertised and how they work.
  5. Do you want to pay a sum upfront to purchase software, or pay on a subscription basis? Purchasing software outright can lead to future costs of upgrades that should be factored in as part of your decision making.
  6. How secure is the software? What are the backup procedures available in case of disaster?
  7. How prompt and helpful is their support options? You’ll want to find out if there is an additional fee for support if not specified in the package options.
  8. Is a free trial available? This can be a good way to get a feel for the software to ensure that it is the right fit of your business. It can also give you a good opportunity to test out the support response time.

Zoho

Microbusinesses need simple accounting software, and that’s where Zoho Books comes in. Zoho Books offers all of the basic features that microbusinesses need, as well as advanced tools such as project billing and time tracking. It also has integrations, so you can continue using the software as your business grows. We selected Zoho Books as the best accounting application for microbusinesses because of its simplicity and value.

With its Apple, Android, and Windows mobile apps, Zoho Books makes it easy for business owners to send invoices and manage their books on the go. There are even dedicated apps for the Apple Watch and Android smartwatches. The ability to create and send invoices from the app means that, as soon as you finish a job, you can bill a client, instead of waiting to get back to the office.

When you use simple accounting software, you don’t want an outdated user interface or features that are so basic you can’t glean important business insights from the data. That’s what makes Zoho Books stand out: While the platform is easy to use, it doesn’t lack features, and the interface is modern and sleek. It can also speed up many business processes via automation, which is a nice time-saving feature.

You can set recurring invoices and send automatic payment reminders, and if you link your payment processor with Zoho Books, you can accept payments in invoices. You can automate reporting, too; Zoho Books lets you schedule when to run reports and then automatically emails them to you.

Another feature that sets Zoho Books apart from its rivals is the company’s client portal, a website your customers can visit to view invoices, make comments and pay online. This is a particularly helpful feature for businesses that work closely with their clients on projects. If you want feedback from your customers, you can set up the portal to allow them to review your services.

Zoho also has its own suite of integrated business apps, including customer relationship management (CRM) software, email marketing, and social media marketing solutions, spreadsheet editors, and other productivity tools. Like its competitors, Zoho Books integrates with third-party productivity apps and business solutions, including Google apps, the Square point-of-sale (POS) system, several credit card processors, and tax services Tax1099 and Avalara. It also has a Zapier integration, which allows you to connect to more than 1,000 third-party apps. With all those features and services, it’s easy to see why Zoho Books is our pick for the best accounting software for microbusinesses.

ZarMoney

With ZarMoney, there are no secrets about pricing. The company’s website states exactly how much you’ll pay monthly, which is why we chose it as our pick for the best accounting software for transparent pricing. Far too often, it’s hard to determine how much an accounting program will cost, making it difficult to comparison-shop. ZarMoney, by contrast, prides itself on being straightforward, and that’s reflected in the clearly laid-out pricing plans.

ZarMoney has simple pricing plans geared toward entrepreneurs, small business owners and enterprises. The entrepreneur plan is $15 a month for one user and supports unlimited transactions, and the small business plan covers unlimited transactions and two users for $20 a month. Each additional user on those plans costs $10 a month. For large businesses that want more than 30 users, ZarMoney charges $350 a month. All plans provide customer support in the U.S.

ZarMoney has a toolbar that shows you how much the software costs per month based on the number of users. We like that you can add and remove users based on your business’s current needs. If you add another user, the account is automatically updated, saving you time because you don’t have to contact customer service to make a change.

ZarMoney includes many accounting features at an affordable rate. Through the software’s accounts receivable solutions, you can manage the status of estimates and sales, accept online credit card payments, and provide different payment terms and early-payment discounts. Soon, you will be able to send recurring invoices.

ZarMoney connects with more than 9,600 banks in the U.S. and Canada, which means there’s a good chance it supports your bank. With these connections, ZarMoney automatically imports bank transactions daily for you to approve and/or edit. You can also make batch deposits, calculate sales tax and easily transfer funds.

Plooto

Most small businesses are crunched for time, so anything they can automate is welcome. Plooto gives small businesses a whole lot of that for a low price, which is why we selected it as the best accounting software for automating accounts payable processes.

Plooto is a payment platform that enables small businesses to manage their payments in one central location, thus giving business owners a clear picture of their financials and more control over them. Payments, approvals, reconciliation, and reporting are unified under one dashboard.

The software includes smart approval workflows and secure electronic payments, which reduce errors and speed up the accounts payable process. In addition, Plooto offers business accounts payable and accounts receivable automation, which helps small businesses collect past-due bills.

While lots of payment platforms offer similar features, Plooto stands out for providing  an affordable way to automate all accounts payable tasks. You can use the same system to pay all vendors, even if they are located outside the U.S., as well as add payees in seconds, either by searching Plooto’s network of 120,000 suppliers and vendors or by adding them manually.

Plooto also speeds up payments by automating invoicing and allowing you to accept payments within invoices. Once a customer pays, the payment is automatically reconciled. Another plus is that Plooto integrates with QuickBooks and Xero, two popular accounting programs, giving you clearer records of payments, audit trails, and easier reconciliation. You can pay electronically or via check with the integrations, as well as make batch payments, search records, and set payment approvals.

When it comes to managing accounts receivable, you want a program that is easy to use, affordable and transparent. Plooto checks off all those boxes, which is another reason it made our list of best picks. Plooto charges $25 a month for 10 domestic payments and 50 cents for each additional domestic transaction. Each international transaction costs $9.99, and each check payment is $1.99. There are no limitations on the number of users, approvers, customers, vendors, or bank connections, and there is no charge for an accountant to collaborate. Plooto recently added the ability to accept credit card payments via its Credit Card Acceptance offering. This speeds up the time it takes to get paid. In many cases, this service can get money into your bank account in just two business days. Plooto charges 2.9% + $0.30 per transaction.

Plooto is a good choice for small businesses that need an affordable way to enhance their accounts payable and accounts receivable and save time. It also stands out for its automation and integrations with QuickBooks and Xero, making it great accounting software for business owners who work with those accounting plans.

Wave Accounting

Wave Accounting was founded in Toronto in 2009 and provides software and financial services for small businesses. It’s an invoicing and accounting software that also has credit card processing and payroll services. It’s cloud-based, easy to use, and can be used by business owners with no accounting or bookkeeping experience. All of your data is backed up for extra security, and you can connect your bank accounts to sync your expenses at any time from anywhere.

We chose Wave Accounting as our best value accounting software for small businesses because its accounting and invoicing services are free. Keep in mind that payroll services and credit card processing have charges associated with them, so not all of the features are free, and the free features aren’t as robust as some of the other software options. However, it’s great for new businesses, especially those working with an accountant or another software.

Wave Accounting’s features include:

  • Unlimited income and expense tracking
  • Track sales tax on income and expenses
  • Double-entry system
  • Multiple users
  • Dashboard with easy-to-read financials
  • Organize income and expenses into tax categories
  • Reports including profit and loss statements and cashflow

Sage Business Cloud Accounting

Sage Business Cloud Accounting, formerly known as Sage One, is a global brand that offers online accounting and business services for small businesses. It was founded in 1981 in Newcastle, England, as a way to develop estimating and accounting software specifically for small businesses. It’s now cloud-based and allows you to choose your industry, company size, and needs. It will match you with specific accounting solutions and is used by over three million businesses.

It’s our choice for the best accounting software for small businesses with multiple users because it’s a reputable company, provides software that doesn’t require any accounting knowledge, and is set up for use by multiple users. Your accountant can use the software and access your books for no additional fees.

Sage Business Cloud Accounting’s features include:

  • Manage business finances and cash flow
  • Accept and receive payments
  • Create and send invoices
  • Manage payroll
  • Available on all devices so you can check your financials on the go
  • Integrate with your financial institution and other apps including AutoEntry, Zync, and more
  • Tax compliance tools
  • Dashboard view with easy-to-read financial reports and analysis
  • Inventory control
  • Forecast cash flow
  • Share access with your accountant in real-time on any device
  • Add-ons such as human resources management and estimating

Conclusion

Craft businesses are very specific, so the best accounting software will be different for each individual craft business. There is no one size fits all accounting software that works perfectly for every craft business. This is why it’s important to choose accounting software that’s designed specifically for your type of craft business. These accounting software solutions were created with the main purpose of helping to improve functionalities within your craft business.

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