Accounting software aims to assist bookkeepers and accountants in their daily tasks. It does so through automation of tasks, allowing them to work more efficiently. This article will outline:
- What an accounting software is
- Why you should use one
- The benefits of using one
- Different examples of paid and free accounting software to consider for your business
What is Accounting Software?
The functionalities of some software will differ significantly depending on the one you choose to use. What you wish to gain out of it may also vary depending on the size of your firm. Larger companies often need more complex features than smaller businesses. Conversely, smaller businesses and start-ups may only need the basic features that come with free accounting software.
Accounting software aims to make calculations easier and data analysis quicker, and it allows the user to store data digitally so that less paperwork is required. It also makes locating data extremely easy.
Why get Accounting Software?
Accounting software is a great tool for modern businesses. Accounting software allows the user to spend fewer hours sorting through data than if done manually. Making use of software speeds up administrative processes by automating them and storing information digitally.
Accounting software has a range of benefits for businesses. Here are some of them:
Admin tasks often take time and accounting software can help speed up the process. Many types of accounting software will require only basic information to be inputted manually, and will do the entirety of the calculations for the user.
Accounting software also keeps all your data in one place, making it simple to go back to past transactions whenever you need the reference. It saves you time from having to search around for paperwork and saves you the trouble of losing valuable information stored in physical form.
Automating your Accounting
Automation makes accounting duties simple. Through this functionality of automation, accounting software adds totals, compiles statements, and generates invoices. Automated figures save you the hassle of calculating totals yourself. It also and most importantly decreases the chances of human error in hand-calculated figures.
Makes Tax Filing Easier
Accounting software organises your files, which allows you to digitally send your tax records to your accountant. This greatly lessens the chances of you or your company getting fined as the process is made easier and more efficient.
In case of an audit, you need to have accurate and complete accounting records for your organisation. Auditors will check your books and expect the correct information to be laid out in a complete record. Using accounting software would allow you to avoid getting fined by having all your records in one place within the software and thus decrease the chances of missteps.
Creates a record
Creating a comprehensive record of your company’s finances helps you plan for future goals and builds a reliable reference database for you to look back at. It's also easy to make calculations, spot patterns you may need to change or work on, and project the appropriate alterations that would allow you to achieve your goals.
Popular 2021 Accounting Software
Having good accounting software that’s adapted to your business practices makes it easier to keep comprehensive account records of profit and loss. It also helps you avoid potential tax liabilities.
According to The 10 Best Accounting Software of 2021 | The Blueprint (fool.com) And Best accounting software in 2021 TechRadar, here are the best accounting software for your company.
Sage 50cloud Accounting
Sage 50cloud provides businesses with tools for sales tracking, reporting, invoicing, payment processing, and vendor/customer/employee management. The Sage plan offers a 30-day free trial so you can try out the software before committing to a purchase. It is good value for your money and is relatively easy to use. If you do struggle with it, there are various online tutorials that will help guide you through the process of setting it up and show you how to use it.
If you are a start-up, Sage also offers an accounting starter package that doesn't have as many features as the full package, as these features wouldn't be necessary for your small business. Additionally, there are a few online and college courses offered to teach students Sage, as it is one of the most popular accounting software.
FreshBooks is also a great choice for small businesses. It offers the functions of invoicing, time and expense tracking, simple project management, and a wide range of general accounting applications all in one easy-to-use desktop and mobile interface. It is ideal for anyone who isn't familiar with accounting software. If necessary, you can make your billing operations in any currency: this is ideal for companies that are based in multiple countries.
Wave accounting aims at helping small businesses and freelancers manage double-entry accounting. It assists them with payroll and online payments, which is extremely beneficial for freelancers who have multiple payments coming in. Additionally, upon signup, this software offers 2 months of free chat support if needed.
Kashoo is also targeted at small businesses. It combines invoices, banking, and credit accounts all into one inbox for simple, one-click invoicing and bill payments. It has multi-currency options and support and is easy to use. Kashoo supports credit card transactions for all the major carriers such as Amex, Visa, and Mastercard – at a competitive fee. Kashoo offers a 14-day trial for those looking to test the service out. Additionally, if you have any issues, you can make use of the live chat or get in touch with their customer service by phone or email. The main disadvantage of Kashoo is that it is an iOS app that’s not available on Android as of yet.
QuickBooks is a Cloud-based accounting software for all small businesses and it also comes with a free trial. It has a diverse portfolio that includes Turbotax, Mint and Proconnect: if you're looking for a suite of advanced features, QuickBooks is ideal. There are also a lot of extra features available and it is possible to create a custom package that’s specific to your business if you find it is helpful.
Free Accounting Software
If you want free accounting software, then you may want to try ZipBooks and Quickfile.
ZipBooks offers unlimited invoices and makes the task of accounting easier for smaller businesses. It also allows the user to keep records of unlimited customers with unlimited bookkeeping. However, the payments are only accepted via PayPal and credit cards. After a free starter trial, you can upgrade to the paid tier that offers more services and more advanced reporting and tagging.
QuickFile is also free and is great for small businesses. This software is aimed at people who aren't accountants and just need some support with their daily bookkeeping. It offers multiple free tiers for small businesses while still delivering automatic invoicing, purchase/receipt management, quotations, and multi-currency support. This software is cloud-based.
Overall, accounting software can be extremely useful. Which software you choose depends on what sort of features you require. If you are a start-up, consider starting with a free accounting software such as ZipBooks or Quickfile. Once you feel you need more advanced features and understand the basics of how to navigate through the software functionalities, you can upgrade to more complex packages.