Accounting and organizational theorists and researchers use the term accounting tools to describe all of the accounting information outputs used in a business. Using accounting tools can help users determine what they need to know about the business and how that information should be collected; we refer to this as “decision-useful” accounting information.
The accounting cycle is the life of a business. Entry, recording, posting, closing are some of the business operations that need to be executed. The following accounting tools are used in recording transactions.
Sage Accounting
If you own a one-person business, then Sage Accounting Start should definitely be at the top of your accounting tools list. For starters, you can record income and expenses and perform bank reconciliation for only $10 per month. And if you need more functionality, then you can upgrade to Sage Accounting—at the still quite low price of $25 a month—to get an overview of your business’s financials, cash flow forecasting, and bill vendors.
Sage Accounting is especially helpful if you’re working with freelancers or contractors for your small business, since their project management capabilities are an added bonus.
AccountEdge Pro
AccountEdge Pro offers both on-premise and cloud access and is a great fit for small and growing businesses. AccountEdge Pro is probably one of the best applications on this list if you’re selling products since it offers a comprehensive inventory management module.
AccountEdge Pro offers solid inventory management capability. Source: AccountEdge Pro software.
The inventory module lets you track detailed information about each product, offers multiple pricing levels, and will alert you when stock drops below a certain level. It also includes builds and kitting capability for those that build their own inventory items from scratch.
AccountEdge Pro also offers a Shopify connector, syncing your inventory with online sales.
Along with inventory accounting, AccountEdge Pro offers solid accounting capability, sales and invoicing, time tracking, and a payroll module. A customer portal was recently added, making it easy for your customers to pay you online.
Reporting options are good in AccountEdge Pro, with reports available in a variety of categories and all reports fully customizable. AccountEdge Pro offers free email support, with telephone support available at an additional cost.
One of the best benefits of using AccountEdge Pro is its scalability, with four plans available to choose from, and if you need to pay employees, the application includes a payroll module.
Another benefit is the option to choose between the desktop application or online access, with a third option providing on-premise installation with cloud accessibility.
AccountEdge’s Basic plan has a one-time fee of $149, while AccountEdge Pro has a one-time fee of $399. For those interested in online access, Priority Zoom starts at $50/month, with ERP pricing available upon request.
QuickBooks 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.
FreshBooks
FreshBooks is one of the big names around town when it comes to accounting tools for small business owners….
And for good reason. Although it started out just as an invoice and expense tracking software solution, FreshBooks today can integrate with your bank accounts, generate financial reports, process your payroll and business payments, and keep track of timesheets. Not to mention, FreshBooks also offers integrations with a pretty long list of popular CRM and customer service apps, so you can expand its functionality whenever you need.
If you’re interested in simple, intuitive accounting tools, then FreshBooks could be for you. And if you ever get confused, FreshBooks emphasizes its person-to-person customer service—for free—in case you ever need a helping hand.
Sample its free 30-day trial, and if it fits your needs, you can purchase FreshBooks for as low as $15 per month, and even less if you opt for yearly pricing. What’s more, for a limited time, FreshBooks is offering 60% off for six months on Lite, Plus, and Premium plans when new users skip the 30-day free trial period and opt to buy now.
Conclusion
Every business needs accounting tools that are simple to use, accurate and reliable. QuickBooks Online gives you the tools to record, track and manage your company’s financial data with ease. Create invoices, track your inventory, see your profit margins with Trends reports, and more.