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Managing your accounts and cash flow efficiently and effectively is key to the success of any small business, so why are so many companies still using manual accounting methods?
According to research, almost one-third of small businesses are relying on manual processes such as pen and paper or Microsoft Excel to manage their expenses.
It’s time-consuming and expensive to manage your accounting manually. In the UK, it takes around 110 hours per year to complete the necessary tax obligations.
That’s why you need to automate your processes by using accounting software so you can better run your small business.
We know choosing new software is a headache, which is why we’ve put together our picks of the best accounting software for small businesses.
Xero is a cloud-based accounting software specifically aimed at small businesses. What makes Xero one of the best accounting software for small business is that it both provides tools for companies to monitor financial performance in real time, as well as features for accountants to help ensure their clients have healthy balance sheets.
Xero’s key features include:
You can also expand Xero’s capabilities through native integrations, for example, you can manage your payroll with the Gusto payroll integration.
Quickbooks accounting software is geared towards small businesses and is available both on-premise and in the cloud, as well as through a mobile app.
Quickbooks’ main features include:
You can also give your accountant access to your Quickbooks cloud account so they can manage your finances from anywhere. Quickbooks enables simultaneous logins from multiple people, such as your accountant, and your co-workers, employees, or managers.
With automatic data backup and sync, you always have an up-to-date picture of your business’ finances and your cashflow.
Small business accounting software Freshbooks has six main sets of features:
Other features in Freshbooks that make it a suitable solution for small businesses include automated and customisable payment reminders for clients who haven’t paid yet, automatic late fees, multi-currency billing, multi-language invoicing and the ability to apply discounts to payments.
Freshbooks also comes with a mobile app for Android and iOS so you can keep track of your accounts on the go.
Freeagent accounting software is aimed at small businesses, as well as freelancers and micro businesses and their accountants. It aims to streamline the bookkeeping process for businesses that are looking to automate their account processes. It’s been recognised by the industry for the innovation in its software, being named Small Business Accounting Software of the Year at the Accounting Excellence Software Awards.
Freeagent’s most important features include:
Freeagent also includes a time tracking feature which you can use through its mobile app and on desktop.
Wave is a free accounting software aimed at solopreneurs and small businesses. Accounting, invoicing, and receipt scanning functionality is free, but businesses have to pay for payment processing on a pay-per-use basis.
Wave’s key features include:
Wave also has an active online community on its website, which can help you get answers to questions and find resolutions to your problems.
There is no one, overall best small business accounting software; it all depends on the needs of your company. Each business is different, which is why it’s important to thoroughly research and try any software before you decide to buy. Make sure you also get the input of anyone who will be using the accounting so you can ensure you get the features that they need.
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