Even though the cloud-based accounting software is not yet in place on a widespread scale, we can already see that its popularity is increasing. Cloud-based accounting software offers countless advantages over traditional accounting software and offers businesses a clear path for future development.
Cloud-based accounting software is an important part of many small businesses. Instead of buying software to install on your local computer, you save money with cloud-based systems that engage in data storage and processing through the Internet. This makes them more flexible since most people already use the Internet for computing resources, but there are numerous advantages to cloud-based accounting software that aren’t readily apparent at first glance.
FreshBooks
Websitewww.freshbooks.comPrice from$4.50/moFree Trial30 days
Best cloud accounting software for small businesses.
Best for:
FreshBooks is designed for the self-employed, freelancers, small- to medium-sized businesses with employees, and businesses with 1099 contractors. FreshBooks claims that the software is “Ridiculously Easy to Use” and backs that up. It is not intended for use by accountants since its feature set is limited compared to what dedicated accountants need, but the vast majority of small- to medium-sized businesses will find FreshBooks’ features and ease of use attractive.
Key features:
Designed for the web and never available as a desktop product, FreshBooks was created with the small business owner or freelancer in mind. Mobile apps are available for both iOS and Android, and users give the apps high ratings in both the App Store and Google Play. Plus, Apple ecosystem users will appreciate the ability to use the app on iPad and iPod Touch, rather than just iPhone.
FreshBooks was originally engineered to facilitate getting paid faster, so it began as an invoice tracking and creation product. Since it launched, FreshBooks has expanded to include expense tracking (including billable expenses), multi-language and multi-currency capabilities, a comprehensive invoicing workflow and customizable invoices, and a retainer function.
FreshBooks notes that payments occur up to 11 days faster when customers pay with a credit card. FreshBooks’ integrations with Stripe, Plaid, PayPal, Apple Pay, and other processors, along with the ability for clients to pay by credit card or ACH directly from the invoice, simplifies the accounts receivable process. FreshBooks also offers an automatic deposit feature and automatically categorizes the income according to rules you set.
Each subscription tier comes with more available functions. For freelancers or brand new small businesses with five or fewer billable clients, the Lite plan is perfect and allows unlimited invoicing and account statements, stored credit card information, a self-service client portal, client credits, and automated recurring invoices and late payment reminders, along with time tracking, an automatic bank feed, and a payroll add-on through Gusto.
FreshBooks also offers a robust reporting system that is easy for business owners to understand while still providing accountant-ready information for quarterly or end-of-year tax prep. While there isn’t a budgeting feature built-in, reports can be exported to Excel, allowing users to create and manage budgets manually.
The Plus plan allows users to invoice up to 50 clients and adds the ability to charge client credit cards automatically, accept e-signatures, collect retainers from clients, produce double-entry accounting reports, and allow accountant access. The Premium plan includes the same feature set as the Plus plan but allows the business to invoice up to 500 clients. Both Plus and Premium also include Advanced Payments, which is available for an additional monthly fee and allows subscription-based billing and virtual terminal processing, which is helpful in a retail environment. Users with more than 500 clients should consider the Select plan, which adds a number of additional features, including a dedicated account manager.
Lite, Plus, and Premium subscribers will have one user per subscription by default, but additional users can be added for an additional monthly fee. Select subscribers start with two users and can add more as needed. User-level permissions are not available, however, meaning that each user will have access to all data in FreshBooks.
Comprehensive time-tracking is also available, ensuring that every hour is accounted for. For team focused businesses, users can seamlessly collaborate on projects through FreshBooks. FreshBooks also integrates directly with a number of CRM platforms, including Salesforce, HubSpot, HoneyBook, Insightly, and Capsule CRM, and provides project management support through integrations with Asana, Trello, Basecamp, and G Suite, along with many additional platforms.
Ease of use:
FreshBooks is simple and intuitive—it definitely embodies its “Ridiculously Easy to Use” slogan. The company is also well-known for its excellent customer service, and there are weekly webinars to help users get the most out of the product. Plus, there are tons of training materials on the Freshbooks website.
Cost:
Overall, FreshBooks is affordable for the vast majority of freelancers and micro-businesses; however, prospective users will want to consider the costs associated with required and nice-to-have integrations and adding additional users. In addition, FreshBooks offers a 30-day free trial that includes access to the entire feature set, and as with other products on this list, FreshBooks frequently offers discounts for new customers.
Things we liked:
- Friendly, effective customer service
- Simple and easy to use
- Automated bank feed
- Affordable
- Built-in time tracking
Things we didn’t like:
- Must pay for additional users
- Integration required for payroll
- Not robust enough for accountants
Zoho Books
If you’re a sole proprietor, freelancer, or starting a brand new business, Zoho Books is for you.
Affordable for even the tightest budget, Zoho Books includes a solid inventory management feature and provides new users with step-by-step directions for everything from general setup to writing an invoice, making it easy to get your new business set up and running quickly.
Zoho Books offers a long list of features, though most are in the Professional plan. These features include automated workflows, good expense tracking, recurring transactions, project management, and the ability to create custom invoices.
The Zoho Overview takes new users through the entire setup process step by step.
A client portal is available that allows you to share invoices with your customers, and an accountant version lets you share your business details with your CPA or accountant.
Zoho Books also offers easy online payment options for your customers, with a mobile app available for both iOS and Android devices.
Perhaps the biggest drawback to Zoho Books is its limited integration with third-party apps, along with the lack of a payroll option.
Pricing for Zoho Books starts at a reasonable $9/month for the Basic plan, though most users will probably need the Standard plan, which is $19/month, or the Professional plan, at $29/month.
One of the biggest benefits of Zoho Books is the amount of resources devoted to non-accountant users. Zoho Books takes the time to explain everything, providing a greater comfort level for new users.
Synder
» Why You Should Buy This:
At a time when organizations are moving their operations online, Synder makes accounting simpler for businesses that have one or more online payment systems in place. From automating sales reconciliations with accounting from e-commerce systems to making you ready for tax-filing and reporting, it is not wrong to term Synder as your all-in-one ecommerce business accounting software.
It makes payments and receipts super smooth with its intuitive, flexible interface. At the same time, it monitors your inventory, shipping, locations, multi-currency transactions and discounts, bringing everything together in one place. With its robust security mechanisms in place, you no longer need to worry about the protection of your sensitive information.
» Who Is It For:
Synder is ideal for those businesses that categorize themselves as an e-commerce business. For business owners with multiple online payment systems, who need a detailed record of their transactions and reports and sync those with accounting systems.
Even if you are a professional who relies on online transactions for your services, this accounting software can simplify things for you to a great extent.
» Why We Picked It:
We included Synder in our best accounting software list because of its effortless functions to handle books for e-commerce businesses. It provides seamless synchronization with several payment processors, making your life a bit easier. Once you start using it, you won’t have to go back to manual entries again.
The software also facilitates hassle-free receipts of online credit card payments as well as sending invoices. You can import all your previous data and real-time transactions automatically, without any limitations. Plus, you can leverage its actionable sales and tax reports to always make informed business decisions.
» Pricing Details:
Synder has three primary plans to offer its users:
› Medium costs $39 per month
› Scale costs $89 per month
› Large costs $199 per month
However, you can opt for a free trial before making a purchase.
» Pros and Cons:
Pros:
› Brings automation, saving your time and money
› Streamlines your business accounting operations
› Accurate reporting helps make beneficial decisions
› Offers smooth tax-filing
› Integrates with multiple payment processors
› Supports transactions in multiple currencies
› Instant live support
› Easy onboarding
› Intuitive interface
Cons:
› Designed only for businesses operating online
» Reviews & Ratings:
It has garnered a lot of amazing reviews from its varying set of users for the powerful features it offers. Reading only a few of them will paint the right picture for you. So, here it is:
» Capterra: 4.8/5 » G2crowd: 4.7/5 » GetApp: 4.8/5
» Conclusion:
Synder is perfect for you if you are an online business or even a sole online seller on e-commerce platforms. It automates your regular accounting tasks while maintaining accuracy and all the necessary compliance.
“I was struggling to get all my Stripe payments in QB without errors. I tried different solutions, but payments were never transferred correctly, so I had to redo it every time manually anyway. Imagine the money and the time spent in vain! I was so happy when I connected Synder and just found out that the sync works perfectly. Just the way it should. And the support is amazing! By far the best software I used. Highly recommend!”
– Diana
Conclusion
Whether you’re looking for cloud-based desktop, web-based or even iphone/android app for your business, i’ve tried our best to narrow down this very big list of accounting software into a top 10 list to help you get started. Every application in this top 10 list can be used on both iphone and android devices. From invoicing, time tracking and bookkeeping, i’ve tried to guide you in choosing the best option for small businesses.