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Keeping track of financial activities is one of the most crucial aspects of a business. You need to record your income and expenditures carefully so that you can understand how much profit you are making. In the 21st century, most business owners use accounting software rather than relying on old methods of manual bookkeeping and calculations.
Good accounting software doesn’t come cheap. Therefore, you may need to consider a few factors before choosing an accounting software that fits your business needs. Some of the factors to think about are:
- Ease of use
- Functionalities
- User interface
- Scalability
- Bank compatibility
- Security
While these are the primary factors to consider, you may need to think about some of the tertiary aspects as well before you make your decision. For example, if you order business checks online, you may want to choose a solution that can print them. Accounting software can provide the functionality where you input the details and print the checks directly from your inkjet or laser printer.
That can save you from the hassle of writing individual checks and save valuable time. You would need to provide the details of the software to your check printing company, and they will make the checks compatible with it. Several reputed printing companies make checks compatible with QuickBooks and several other accounting software.
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In this article, we talk about the five most popular accounting software, so you can understand the aspects to consider and make an informed decision.
QuickBooks
QuickBooks by Intuit is probably the most widely used accounting software. In fact, it is preferred by businesses of all sizes. It is not cheap, but it is quite robust and meets most of the requirements for any type of organization. The software is compatible with both Windows and Mac platforms. However, the functionalities might vary a little.
QuickBooks is not one of the easiest to use software because it has so many functions. But you can find video guides and tutorials easily on the internet because the software is so popular. Depending on your needs, a QuickBook license can cost you between $15 to $70 a month. It costs extra if you want to add payroll or payment services.
Xero
While QuickBooks is downloadable software, Xero is a cloud-based solution. Since Mac users could not find some of the solutions the needed, they chose Xero instead, which resulted in its popularity. Xero provides more than 600 integrations that allow businesses to manage most of their financial activities. These include printing invoices, maintaining inventory, payroll, and several others.
You can use Xero to track the time and money you spend on a specific project so you can control the costs involved in it. The monthly license can vary between $9 to $60.
Zoho Books
Zoho Books is one of the best accounting solutions for small businesses that do not have as many complex requirements as larger ones. So if your organization has limited inventory or number of employees, you can use Zoho Books to manage your accounts. It is one of the most user-friendly accounting software offerings available on the market, and includes the following features:
- Easy-to-understand dashboard
- Convenient graphs
- Automated payment reminders
- Project management
- Financial statements
- Collaboration tools
Zoho Books is quite economical compared to other software. Plus, you can get all the professional features for as low as $29. You can also get additional discounts if you pay the annual amount upfront.
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FreshBooks
FreshBooks is another solution preferred by sole proprietors and professionals who do not need advanced features. The software does not provide double-entry accounting features. However, you can use it to keep track of time invoices, payments, and financial reports associated with a specific project. Monthly prices range from $4.50 for the Lite plan to $25 for the Premium one.
Wave
Wave is a free accounting solution that provides most of the accounting features needed by some organizations. It is especially useful for business owners because it helps them separate their personal and business finances.
You can also use the solution to create invoices for free. However, even though the number of features available is plenty, the depth of those features is quite limited. Moreover, you would have to pay for functions like payroll and payment processing.
Choose Your Business Accounting Software Wisely
While you choose accounting software, make sure that you weigh the features, pros, and cons carefully. There are so many solutions available in the market that you can easily feel confused. We hope that this list helps you to choose accounting software that is best suited for your requirements.