An overview of accounting software
Accounting software can be incredibly useful. It helps track finances coming into your business and gives information about the money going out. This software helps you determine the financial health of your company and lets you track expenses and accounts. Moreover, accounting software helps with inventory, payroll, and various other related tasks. While making a decision, you must think if the cost is worth it. You could get a cheap software with the bare minimum and no add-on features. Alternatively, you must consider the number of people accessing the software and if you want a desktop app or a cloud-based app, so that you can access accounts anywhere in the world. Try to think about ancillary features such as project management and time tracking as these could come in handy if you need it.
What is the cost of purchasing a reliable accounting software?
- Accounting software and its quality are dependent on the features and number of people accessing it. Most companies today offer monthly subscription plans to their cloud-based services as opposed to a software license.
- Moreover, costs can vary wildly between $10 to $40 per month, for the more basic accounting software. More advanced features like sales tracking, recurring invoices, and purchase orders increase the costs. You could save some money by opting for an annual plan and taking advantage of discounts.
- If your business is very small, you could try a free version. However, the paid plans often let you connect the software to other business programs at an additional cost.
What kind of factors should you look for when you decide to subscribe to a particular software?
- While purchasing software, you should look out for multi-person access. Many accounting software require you to pay extra for additional users but some allow you to have as many users as possible. Additionally, you should give yourself, your business partner, and the accountant more rights so they can view the employee accounts as well.
- If you have multiple businesses and don’t want to pay for multiple software, then the product should support multiple business concerns under one account.
- Finally, there should be a cloud and mobile access, so that you can access your data from anywhere in the world.
Which accounting software features would a small business need?
- Any business should have basic accounting features as well as financial report generation, invoicing, and expense tracking. If your business sells multiple products, you will also want vendor management, purchase orders, and inventory tracking.
- Some software can also send you invoices and notifications, so these timesaving automations are indispensable.
- There should also be tax preparation features like automatic tax calculations, tax reporting. You should be able to give your accountant access to all data that they may need.
What should you look for while testing accounting software?
- You should ask yourself if the accounting software provides customized solutions to meet your organization’s needs
- Ask if data can be backed up in the event of a power outage or emergency situation
- Ask how your software can help with tax laws, financial regulation, and generally accepted accounting principles (GAAP).
Which are some of the best accounting software?
- Intuit QuickBooks online is a good accounting software for small businesses and firms. The pricing starts at a modest $10, per month. It has basic as well as advanced features and is great for consultants, freelancers, and service providers.
- FreshBooks is great for invoicing and small business use. The plans start at $15 a month. It is incredibly easy-to-use and with a few clicks, you can customize the invoice, and set up automatic payment reminders along with adding billable time and expenses.
- Xero is a great accounting software for Mac OS users with plans starting at $9 a month.