The right software will help you track critical financial data in your business, stay on top of your taxes, and pay your employees on time. Choosing the wrong software can set you back and limit your long-term growth. The accounting software you use matters more than you may think.
Enterprise resource planning
This software helps companies collect and organize information so they can operate more efficiently
- It provides a unified solution to managing different departments and processes in your business
- In addition, it helps larger companies break down silos between departments and increase transparency.
Inventory management
Monitor inventory levels and tell you when to reorder certain items.
- Track relevant information about each of your products including SKUs, product images, prices, and quantity.
- Use accounting software to create custom pricing lists and offer discounts to customers who order in bulk.
Scalability
Take a long-term view of your business and consider factors like size, industry, specific business needs, ease of use, and scalability when choosing accounting software
Ease of Use
Hiring a bookkeeper or accountant may not be your preference, but if you’re on your own, you’ll want accounting software that is intuitive and easy to use
Top accounting software to consider
There is no “best” accounting software, but certain types of accounting software are better for your business
Invoicing
A basic invoice should outline customer information, the amount owed, and the due date. Some software packages offer advanced invoicing features such as the ability to create branded invoices using your company logo, colors, and fonts, multiple payment options, and Automated payment reminders.
Payroll management
Companies’ needs depend on how many employees they have and the types of benefits they provide
- In general, the software you use should calculate what you owe your employees
- Most employees prefer to have their checks automatically deposited into their bank account, so any software you choose should handle direct deposits for your employees
What is accounting software?
Accounting software is a program that helps business owners, bookkeepers and accountants manage a company’s financial transactions
- The right software makes it easier to track, organize, and analyze financial data
- Freelancers and small businesses may be able to use generic one-size-fits-all solutions, while enterprise organizations will likely need a more complex system
Pros
Accuracy
- Automation
- Relatively low cost
- Streamlined invoicing (e.g. FreshBooks, Wave)
- Collaboration with outside access to your accountant
- Cons
- Most accounting programs let you grant outside access, which can cut down on time
How can accounting software help your business?
Automate business finances
- Access your data from anywhere
- Prevent data loss
- Integrate with third parties
- File your taxes
- Use the right accounting software to collaborate with your accountant and track how much your business owes
How much does accounting software cost?
Monthly or annual pricing will depend on the size of your business, the number of users who need access, and the customization level required.
- Small business owners, solopreneur, and/or small business owners can get by with free versions, while larger companies with more complex needs will pay more for implementation and licensing fees.
Your business needs
Consider your business needs first
- A freelancer with no employees will have different requirements than a multimillion-dollar business. Take your business’s size into consideration.
- Look for software that’s geared toward your specific industry as well
- FreshBooks is an excellent option for freelancers
Accounts payable
Keep track of your expenses and how much your business owes vendors and suppliers
Payment processing
Easy way for customers to pay online
Your budget
How much you can afford to pay for accounting software
Cloud-based software
Accessible from any location, can be used anywhere, and has built-in protections to prevent data loss.
Cons
Technical problems
- Potential for fraud
- If you’re not careful, hackers may get a chance to access your business’s financial data
- There are upsides and downsides to weighing when choosing accounting software
- Accounting software can improve your business’s financial accuracy and visibility, and it can free up your time for more creative and profitable pursuits
