As we’ve mentioned in some of our previous blogs, having the right accounting software for your business will not only save you time, but it will save you money.
If you are just starting out, you may think that this isn’t in your budget. We want you to know that there are software programs on the market that have minimal fees. It really is best if you can start off your business with your accounting software in place.
By using accounting software, not only do you have the systems in place working for you, you don’t have the headache down the road trying to switch over.
If you have been working off of spreadsheets up until now, that’s ok too. Now is still a great time to switch over to an accounting software program that best suits your business needs.
Not only do these programs offer you a variety of options that are suited to your business, many are scalable, and can grow with your business.
Different accounting software programs can help you not only keep track of your purchases and reconcile these purchases with your bank account, they can also provide you with information on your income as well as your expenses.
Even better, with most programs now being cloud-based, your professional bookkeeper can access your books remotely, and provide you with the information that you will want, and that you will need. They can also keep you informed when it comes to your cash flow, and they can assist you with your business planning and decisions.
You may be wondering which program is best for you and your business. A few questions you may want to ask yourself include, what is your budget? Many of the programs offer varying prices, depending on the features that you are looking for. Some plans may be free and offer basic service, or you may be looking at hundreds of dollars a month if you are looking for a lot of features.
Are you looking for scalability with your software program? If you are planning on keeping your business small, with only a few people involved, this may not matter to you. If you are looking to grow your business and potentially hire others to work for you, you want to make sure that your accounting software can grow with your business.
What features are important to you? This may be another question that you want to discuss with your bookkeeper. You may be looking for a program that is focused on inventory or invoicing only. If payroll is something that your business needs, or will need in the future, this may be something else you need to look for. You may not need to get payroll functions right away, but you need to know that you have that option in the future.
How are you with technology? Some accounting programs are very user friendly, while other programs can be quite complex. Even if you have your bookkeeper doing all of your entries, you will still need to understand how to access your information.
Following that, how important is accessing customer service when you need help? Of course you will be able to access your bookkeeper, but sometimes you need to contact the software company directly.
We have picked 5 of the top-rated software programs and are going to point out why they are top-rated (their pros). We will let you know some of the cons as well.
QuickBooks Online
This is likely one of the best known and commonly used accounting software programs on the market, and it is also one of the most comprehensive programs available.
QuickBooks features work for not only small businesses, but for larger ones as well.
On the pro side of things, it has a central dashboard where you can access different tools, while still being user-friendly and easy to use. You will not only be able to track job expenses, but you can also accept payments online.
It also has mobile app features, and it can easily integrate with third-party software. Some of these include Bill.com, HubSpot and QuickBooks Payroll.
One of the cons of this program would include the fact that it is considered pricey compared to other programs.
They do have different levels of subscription though, so the monthly payment will vary with what your business is looking for.
As well, even though they have great payroll features if you select that subscription, some other features such as automated tax filing and direct deposit, will charge you extra fee.
Xero
Xero is another great software program for the ‘micro’ business that is simple and easy to use.
Their primary target demographic is the small business owner. Xero has flexible pricing plans, so it is accessible to a small business, or one that is starting out. They also have more expensive plans, for when your business is more established.
One of the cons is that it doesn’t offer phone support, though it does offer online support. As well, in some of the less expensive plans, there are limitations on their invoicing and bill payments per month.
FreshBooks
FreshBooks is a great software program for basic bookkeeping, and it is user-friendly. It is great for billing, managing invoicing, as well as time and expense tracking. It is known for its more customized, quick and easy invoicing system. It will allow you to customize your invoices so that they align with your branding.
It will also integrate with third party software such as Shopify and Strips if your business has an online presence.
FreshBooks downside it that it does have some limited accounting features, so it won’t be able to do any payroll for you, but it can be integrated with Gusto. As well, it cannot directly pay your taxes through this program, this would also need to be integrated through another program. Finally, if you don’t use all of its available features, it may end up being expensive for you.
Wave
Wave is a popular software program because it is a free and easy-to-use accounting software.
In addition to being free, it does have invoice templates for the user as well as billing, payment tracking, credit card processing and receipt scanning.
Wave was designed to help the small business owner streamline their processes. They also have a reconciliation tool, that can manage your bank and credit card information.
Where the basic accounting and invoicing portions of this program are free, if you want it to take care of your payroll this is for an added fee. Other add-ons include payment processing as well as finance management. Payments are also charged out on a pay-per-use basis and payroll is monthly.
Where it lacks is in the fact it has limited mobile apps. This also isn’t a software that will grow with you.
It does not have any project management features and has limited time tracking and limited inventory capacity.
Zoho
Zoho is an accounting software program that will appeal to small and growing businesses. It is not only affordable; it is easy to set up and has a user-friendly interface.
It does allow for other Zoho applications to be integrated and managed from the same account. This could include Mail, Marketing and business tools as well as CRM.
It offers its user some automated processes, such as report scheduling, payment reminders as well as notifications for certain transactions.
Its con is that it isn’t a Canadian company, so you would need to customize it for setting up the correct taxes. Before choosing this software, you will want to make sure that the options that are important to your company are available to be integrated.
As we mentioned at the beginning of this blog, there are a lot of software programs that offer numerous features and different price-point options. Again, you will want to make sure that your software will work for your business not only today, but in the future.
It is always best to speak with your bookkeeper as to which accounting software program they recommend for your business. Since they will be involved with your accounting, including when it comes to PST, GST and taxes, they will be able to offer their advice.
Need help from an expert?
If you need further clarification on which accounting software is best for your business, let one of our experts at Valley Business Centre help. For over 30 years, Valley Business Centre has been providing comprehensive bookkeeping, payroll and tax services to our clients in Whistler, Squamish, the Sea to Sky Corridor and metro Vancouver B.C. areas. Valley Business Centre provides reliable and effective services to all clients.
Disclaimer
This article is written for informational purposes only. It is current at the date of posting and changes to laws and regulation may result in the information becoming outdated. It is not intended to provide legal, tax, or financial advice. It is recommended that readers get advice from a tax professional before making any final decisions.
