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Imagine spending hours of your precious time counting beans the old-fashioned way, hard keying transactions one by one into a double-entry ledger. Or even worse… an archaic, make-shift accounting system you devised that “works for you”, but leaves you scrambling as tax season approaches. Or maybe it doesn’t work as well as you think, and you’re curious to know the true financial performance/position of your business.
Alas, there is an effective yet affordable solution – utilizing accounting software. With the help of accounting software, you can ditch the tedious data entry, reduce the risk of “fat fingering” the wrong number, free up time to focus on growing your business, and maintain books that are in conformity with standard accounting practices.
Not sure where to start? We’ll explore the key benefits of using accounting software, the advantages it has over old school methods and provide a list of the top five accounting software options.
Key Benefits of Using Accounting Software
Accounting software provides businesses with a practical approach to record keeping and greater visibility of their financial performance. This explains why about 64.4% of Small and Medium-sized Enterprises in the US have adopted the use of accounting software.
That being said, let’s look at some of the key benefits of using an accounting software:
● Streamlined Data Entry
Most accounting software solutions have the ability to sync to your business bank account/credit card and automatically download transactions as they occur. All you need to do is categorize the transactions to the right account.
● Invoicing/Accounts Receivable
Preparing invoices and tracking open accounts is tedious work. Accounting software allows you to rapidly generate and send out invoices while simultaneously tracking your receivables.
● Easily Accessible Financial Reports
As long as your books are kept up to date, accounting software can generate reports such as a balance sheet and profit & loss statement that allow you to monitor your financials throughout the year. These reports can be customized, for example if you want to see how profitable your business was last month compared to the month before.
● Saves You Time
We’re all familiar with the age-old adage “time is money”. From a cost/benefit perspective, paying for an accounting software is a no brainer when you consider how much time you save. It’s not as expensive as you might think, for instance QuickBooks has packages starting at $30 per month.
● Simplified Tax Preparation
Accountants, like other professional service providers, charge for their time. If you bring your accountant a stack of unorganized invoices and receipts, don’t be surprised when the bill is higher than your liking. A trial balance is the gold standard in accounting, and a software solution will generate one for you to give to your tax preparer.
When it comes to weighing the benefits and costs of accounting software, the benefits far outweigh the cost. Accounting software saves businesses time, money and a lot of headache.
Our Top Five Accounting Software
Based on our experience/knowledge in this space, here are the top five accounting software solutions to consider:
#1. QuickBooks
QuickBooks is by far the most popular accounting software on the market. Developed by Intuit, it’s designed for small to medium-sized businesses and offers a comprehensive platform that covers all the basics of accounting such as bookkeeping, invoicing, payroll management, etc.
According to Fit small business, “QuickBooks Online holds a 62% share of the global small business accounting software market, with the majority of its subscribers being in the US”.
#2. FreshBooks
One of its most convenient features is that it integrates with other apps to help you automate accounting tasks and sync your data, making it easier to get a real-time view of your finances.
This invoicing and accounting software also allows you to bill clients quickly and get paid faster with invoicing, recurring billing, auto-payments, and more.
#3. Zoho Books
This nifty software is an all-in-one online accounting system for businesses of all sizes. Zoho can integrate with other business tools such as CRMs, online stores, and multiple banks and payment gateways.
It also automates your accounting processes and provides real-time insights into your finances. From invoicing to expense tracking to collaboration and report generation, Zoho Books is a great tool for business owners.
#4. Xero
If you’re looking for accounting software with a modern look and robust features, then Xero is a perfect choice.
It’s designed for SME businesses and has an intuitive user interface that is easy to navigate.
With this cloud-based accounting system, you can sync your data with other apps and services to make it easier to manage your finances.
#5. Wave Accounting
For those who are “ballin’ on a budget” and need free accounting software,Wave Accounting is a solid choice.
It’s designed for small businesses and has everything you need to manage your financial activity, including invoicing, payroll, receipt tracking, etc.
Wave uses a double-entry accounting system to ensure your books balance,and offers unlimited users, accounts, and transactions.
How Gulla Can Help You
You might be thinking to yourself “alright, you’ve sold me on the benefits of accounting software… but I don’t want to and/or don’t have the fundamental accounting knowledge to feel confident keeping my own books”. That’s where we come in. When you work with us, you’ll get paired with a licensed CPA who will keep your books accurate and up to date. We have experience servicing legal practices, doctors’ offices, nursing homes, transportation/logistics companies, repair shops, hardwood flooring installation companies, vending machine retailers, real estate holdings, foundations, and trusts to name a few.
If you’re interested, book a consultation with us and we’ll give you a quote on our services.