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The digital era has introduced new and disruptive technologies that are reshaping how businesses function today. Online accounting is one of those emerging technologies and has become one of the greatest innovations in modern business. Businesses both large and small, sole traders, partnerships, and limited companies have all adopted the use of online accounting software.
There are several accounting software options in the market today that can help you in invoicing, creating payroll, bookkeeping, and managing your finances.
Here we’ve listed some of the best options you can use in your small business.
FreshBooks is a popular online accounting software specifically for small businesses and freelancers. It helps you save time with billing, organizing expenses, tracking time, and accounting for your profit or loss. It features a highly intuitive and user-friendly interface, which makes it a great choice for non-tech savvy users. It also has different subscription levels for various countries and integrates seamlessly with other apps like Zendesk.
FreshBooks has been hailed by most of its users as an efficient expense tracking tool and an easy report creator. It also offers a detailed work and payment time tracking feature, which is a great advantage to its clients.
Though FreshBooks is one of the finest cloud-based accounting softwares, its reporting and metrics still need to be improved as it’s lacking behind some.
QuickBooks is one of the earliest accounting software made available in the market. It offers both cloud-based and on-premise services and is developed by Intuit. It features billing, payroll, payments, and cash flow accounts management for small- and medium-sized businesses.
One of the major pros of using QuickBooks is the availability of a large support network. In the event of a bug, you can easily reach out to other users on the apps forum. Plus, if you have a registered bookkeeper you can get a big discount for the platform.
Because the basic version is designed for individuals and small businesses in mind some of the features are limited if you’re using a professional accountant.
Based in New Zealand, Xero has proven to be a world leader in online accounting. It has extended its services to over 180 countries and different app versions for both Apple and Android platforms. It also offers different subscription levels for various business types so it can easily scale with you as you grow!
The greatest pro for Xero is the availability of standardized reports. It also offers a very fast and easy bank reconciliation and cash book coding.
One of the main cons of Xero is that you can only make one payment per invoice and no partial payments by clients which can be limiting if you’re used to working on projects as it means more admin for you!
Zoho Books is the ideal software if you need customized invoices, inventories, and sorting out expenses. The software can easily integrate with other apps, such as PayPal, Zapier, Dropbox, and Evernote. It also offers other Zoho-based apps that can be used together with the accounting software for a more seamless business management workflow.
One of the main advantages of Zoho books is that it can be used as a management system as well if you want to combine other core business functions.
While Zoho Books offers many accounting and business management features, Payroll is not integrated in the software which is a pretty big gap for business owners looking to expand.
There are plenty of online accounting options you can pick from thanks to technology. You just need to figure out the functionality that you want! Not everything is perfect for everyone but hopefully this gives you a brief comparison of each!