Having the perfect accounting software for your business can play a vital role in its success, freeing up time and ensuring that your finances are organized and accurate. But finding that perfect software is often easier said than done with so many choices now available.
Whether you’ve started your own business, or you’re leading an established one, having an efficient accounting protocol will make running the company easier and the accounting more efficient. The digital era has seen the invention of a vast portfolio of apps for businesses that seek to make operations easier for both old and new businesses.
Cloud accounting softwares make keeping track of your finances faster, cheaper and more reliable by offering tools that can be operated by owners who don’t necessarily need to have any previous accounting background (although, having a word of advice from a specialized accountant is something recommended if you choose to learn how to use any cloud accounting app with the highest level of efficiency).
All of the top cloud accounting software come with the basics; that is, tracking of invoices, payments, and payroll. The difference lies in the advanced aspects of each software, which tailor the software to different types of businesses. Here, we’ll explore some of the differences of these programs to see which one may be the perfect fit for your business.
Xero is one of the most complete cloud accounting apps on the market today. Thanks to its scalable and adaptable platform, it allows customers to work on any almost any device, perfect for operating your business on the go. Xero intuitively lets you integrate and sync bank and credit card accounts, send and receive invoices, track payable and receivable accounts, create and receive estimates, perform reconciliation between accounts, and much more.
One advantage Xero has over its competitors is its application program interface (API) that enables users to integrate external applications with it, making Xero customizable and easy to use. The dashboard allows users to create or move tabs for invoices, accounts, payrolls, or anything that will need to be accessed frequently, as well as being a one-stop-shop for your bank accounts’ transactions and latest invoices.
Xero also allows you to delegate tasks to other users, ensuring that they only have access to the features necessary for that task. Xero is exclusive in its ability to work with multiple currencies and its support of different tax rates, making it perfect for any business that transacts with international customers.
Last but not least, Xero hosts an online blog where users can get information on software updates, post questions, and get help with Xero’s different features. The blog’s open dialogue ensures that your question will never go unanswered.
QuickBooks Online might be the most aesthetic cloud accounting app on the market. The layout of its interactive software is fun to work with and easy to learn. Users get all the basic accounting capabilities, such as bank account integration, invoices, payroll, estimates, as well as several more advanced features all in a beautiful interface.
QuickBooks Online is a more hands-on software, in which the transactions are performed individually. With this user-active approach, account reconciliation can get a little tricky, so you may want to reach out to a professional accountant. QuickBooks Online is a good fit for business owners who like to be involved every step of the way.
If you do international business, Quickbooks Online may not be right for you, since it only works with American currency. And although you can host a ton of users on QuickBooks Online, be prepared to pay for every few you add on.
Kashoo is the perfect cloud accounting software for start-ups. It comes with all the basic tools needed for any new business at a low cost. For a small business, Kashoo will offer an easy way to keep track of invoices, payroll, and more. Since it’s not as scalable as Xero or Quickbooks Online, it’s more ideal for businesses with under 100 transactions per month.
Also a more hands-on software, Kashoo lacks any type of automation, making it strictly manual. However, it does boast an API system that allows users to integrate external applications. This isn’t quite as advanced as that of other softwares, but it’s nevertheless useful for integration.
FreshBooks started as an invoicing software, but it has recently expanded into a full accounting software. FreshBooks comes with all the basic functions that you’d expect from an accounting program, but its strength lies in its invoicing program. Since its history is in invoicing, it’s at the top of the game in regards to ease, precision, and user experience.
FreshBooks, unlike other accounting softwares, makes integrating external applications a little more difficult, which isn’t ideal if your business needs an application that isn’t included in the software already. It does, however, have options for most major running platforms.
Wave is perfect for micro-businesses with under 10 employees. The company itself is small, and the software is free to use. It’s a more basic accounting software, which makes Wave perfect for start-ups, but this also means that users may experience growing pains with business expansion. Wave also lacks the automation that the bigger players come with; every transaction has to be done manually since the program won’t allow users to schedule future payments. Overall, Wave is a cloud accounting software fit for a small business who are more involved with the ins and outs of their accounting.
Each of these cloud accounting softwares offers distinct advantages in running your business. Finding the unique program that fits perfectly with your unique business will be the key to keeping your accounts in check.