There are a lot of small business accounting software programs out there. The best one is the one you will actually use. In this post I’m going to break down several important factors to consider when choosing accounting software for your small business.
Below I explain why quickbook is termed the best for small businesses.
BEST OVERALLQuickBooks Online
QuickBooks Online is the best overall accounting software for small businesses of those reviewed. Not only do the majority of small business accounting professionals use QuickBooks Online, but there are also endless online training resources and forums to get support when needed. All accounting features can be conveniently accessed on one main dashboard, making bookkeeping more fluid and efficient.Pros
- Scalable
- Commonly used by accounting professionals
- Integration with third-party applications
- Cloud-based
- Mobile app
Cons
- Upgrade required for more users
- Occasional syncing problems with banks and credit cards
Intuit’s QuickBooks Online has been the most common accounting software used by small businesses and their bookkeeping and tax professionals. The software is cloud-based and can be accessed through a web browser or through the mobile app.
After the 30-day free trial, the four options for subscription plans include: Simple Start at $25 per month, Essentials at $40 per month, Plus at $70 per month, and Advanced at $150 per month. Typically there is a significant discount offered for the first few months, and some accountants are able to offer wholesale pricing to small businesses, as well.
The monthly subscription for this software can be upgraded as a business grows, and there are many customization options with the mobile app that can be used to receive payments, review reports, capture an image of a receipt, and track business mileage. For businesses looking for a payroll solution, QuickBooks Payroll fully integrates with QuickBooks Online.
Each plan offers more advanced features like inventory management, time tracking, additional users, and budgeting. Most service-based small businesses will find that Simple Start meets all of their needs. For product-based small businesses, Essentials or Plus will have more options for inventory and customizations. The Advanced subscription is a new offering and provides robust financial reporting that is powered by Fathom. Fathom is an elite online financial report analysis tool used by many large companies all over the world.
All plans allow integration with third-party apps such as Stripe or PayPal. QuickBooks Online’s app store breaks down all of their apps by function and provides helpful examples of the benefits of each app.
BEST FOR PART-TIME FREELANCERSQuickBooks Self-Employed
QuickBooks Self-Employed accounting software is our top choice for part-time freelancers and independent contractors who primarily want to track their income and expenses for their tax return. This software is designed for business owners who file a Schedule C on their individual tax return.
Without keeping up with business activity using a software like this, freelancers would need to dig through all of their bank and credit card statements to add up their income and expenses at the end of each year, which can be quite daunting. QuickBooks Self-Employed will total up all business transactions automatically.Pros
- Cloud-based
- Mobile app
- Track mileage
- Differentiate between business and personal expenses
- Syncs with TurboTax
Cons
- Data cannot be easily transferred to other accounting software
- Limited reporting
- Limited invoicing functionality and customization
QuickBooks Self-Employed is an Intuit product with a cloud-based online interface and a mobile app. This software was created to help freelancers stay organized each year for tax season. Features of QuickBooks Self-Employed include tracking mileage, sorting expenses, organizing receipts, sending invoices, and estimating and filing taxes seamlessly through TurboTax.
Users can choose between three plan options: Self-Employed at $15 per month, Self-Employed Tax Bundle at $25 per month, and Self-Employed Live Tax Bundle at $35 per month. There is a 50% discount for the first three months. The two tax bundles include a TurboTax subscription for income tax filing. The Self-Employed Live Tax Bundle also gives you access to a CPA to answer questions throughout the year and during tax season. The CPA will also perform a final review of your tax return in TurboTax prior to filing.
The mobile app makes it easy to track mileage while driving and capture photos of receipts for business expenses. Most accounting software is not designed to separate business transactions from personal transactions, but a special feature of QuickBooks Self-Employed provides an option to mark each transaction as business or personal. This is helpful for freelancers who don’t have a separate bank account for their business activity.
FLEXIBILITY
QuickBooks has been hailed as the number one accounting software in many QuickBooks online reviews because it offers users flexibility in terms of where small businesses can perform their accounting duties through its QuickBooks online version. Switching to the QuickBooks online plan enables small businesses to accomplish numerous administrative tasks such as creating invoices; users can also work from a smart phone, MAC, or PC at any time, and this feature allows up to five users access to the account.
QuickBooks also showcases flexibility through by streamlining teamwork by letting users:
- Securely sync multiple files in real time and work on them at the same time
- Sync their data from other commonly used apps including Square and TSheets
- Access Canada-based customer support from 9am-8pm EST time Monday-Friday
Since this feature works on any device, it also saves work across all devices meaning the user no longer needs to be anxious about saving work to an external device such as a USB. The syncing data from apps feature is significant as it saves countless hours that would otherwise be spent manually entering this data or converting it into different file formats to save it.
EASIER MONEY AND INVENTORY MANAGEMENT
QuickBooks accounting software increases the ease at which small business owners can keep track of their expenses, revenue, and payroll information for employees. With QuickBooks, users can also:
• Record bill due dates
• Enter payment information for repeated bills
• Print checks directly in QuickBooks
Small businesses owners can then conveniently link their bank accounts directly to QuickBooks, allowing them to view all financial records at once. During their day-to-day operations, small business owners inevitably accrue many expenses, that is precisely when the below features are handy:
• Ability to bill to clients for expenses such as mileage and meals
• Ability to track the buying and selling of inventory
QuickBooks is automatically updated whenever inventory changes happen, so small businesses know exactly what’s going where and how much.
Easily Generate Financial Reports and Invoice Templates
Some of the benefits of using QuickBooks to generate financial reports and invoices include:
- Access to a variety of report and invoice templates
- Reports and invoices can be downloaded and shared effortlessly
QuickBooks simplifies the process of creating financial reports by letting users create yearly income reports and financial forecast reports at the click of a button; these reports can easily be transferred to Excel for keeping records or sharing via email or print. These types of financial
reports are valuable for small businesses as they are constantly trying to grow and these reports can help them to identify gaps in customer service, document trends, boost sales, and tailor new marketing strategies to customers.
Eliminates the need for paper records and manual data entry
Small businesses interested in becoming more environmentally friendly and finding a way to manage receipts should make use of these QuickBooks features:
- Automatic online receipt and invoice production
- Accepting debit/credit charges
- Depositing checks into the software
The QuickBooks Pro version grants small businesses the ability to automatically produce receipts and invoices by clicking a button, these receipts can then be emailed to clients individually or in groups. This function is perfect for small businesses as they often find themselves billing several clients for the same type of service or product.
Additionally, users can receive credit or debit charges, and (depending on the type of subscription) scan and deposit checks directly into QuickBooks, in doing so they don’t require numerous paper receipts or need to manually enter large amounts of data.
User-friendly Design That’s Simple and Easy to Use
QuickBooks is an extremely user-friendly accounting software that features:
- Simple language
- An easy to navigate interface
- A variety of tutorial videos and a virtual orientation
The lack of jargon in the software ensures that small business owners with no or limited experience and knowledge in accounting, as well as accounting professionals, can reap the above-mentioned benefits of this software.
Conclusion
If you are a business who wants to keep track of your finances, ensuring that your business operates smoothly, then there is a considerable likelihood that Quickbooks accounting software will be of worth to you. However, it can be quite confusing to determine which accounting software package is best for you. This article will first consider some of the types of small business accounting software packages available on the market today and then consider the features of both Quickbooks and Sage Accounting.