In the world of finance, an accountant keeps track of every single penny used in the respective business field. As a result, sometimes huge amounts of transactions take place and other times less than important. However, for efficient and effective tracking of investments and day-to-day expenses, the best accounting software is required that eases out work procedures. The best accounting software helps to maintain books, invoices, payrolls, taxes, revenue management, assets, liabilities, etc., accurately and in an organised manner. All the data is automatically fed into an online database in order to have a clear overview of business operations. It allows control over cash flow and quick access to all the details regarding business inventories.
In the given article, we have compared and brought down the list of the most widely used accounting software, including cloud accounting software and online accounting software as well. Based on features, software interface, processing speed, and pros & cons will help to make an informed decision.
The Best Business Accounting Software
FreshBooks – It is the best optimised software for all business work. It has project management features and built-in time tracking, which is simple and easy to use. It's an online accounting software.
Zoho Accounting – From a retailer's point of view, this accounting software is perfect for their business as it provides automatic payment reminders, inventory management, advance payments and collecting deposits.
Oracle NetSuite – This accounting software is ideal for companies that have multiple outlets in different parts of the country and requires highly efficient and smooth functioning. It has been featured with a great fixed asset management system which can handle large sums of transactions at a time.
Xero – It is good for solo entrepreneurs and the ones that run small businesses. It is easy to learn and allows smooth maintenance of the books.
QuickBooks – QuickBooks is considered the popular Cloud- Accounting Software with tons of features, from inventory management to project profitability tracking and from built-in time tracking to project management tools for special projects. It is an ideal accounting software for small to medium-sized businesses.
Sage – For entrepreneurs who want to open their own businesses and are ready to settle their books all by themselves, Sage is the absolute option for them to learn the basics of accounting management.
Bonsai - With hundreds of template options, a special client portal, and built-in time tracking and project management tools, Bonsai accounting software helps individual owners or professionals maintain records safely and accurately.
How Do Accounting Programs Work?
The basic programming of highly efficient or free/any regular accounting software facilitates handling business financial operations, Such as recording and maintaining business transactions, payment to employees on time, creating and sending invoices in just one click, generating invaluable financial reports and filing taxes.
Accounting software generally allows users to connect their business bank account to software to get informed about every payment sent or received. It automatically tracks every movement and also helps to track time spent on certain projects.
As we all know, accounting software is superior to any spreadsheets or Excel sheets because they differ in their functions and optimisation. Cloud- Accounting Software or online accounting software are made to provide accurate insight into transactions and facilitate smooth data entry. Mobile phone notification systems are great for security purposes.
Most Widely Utilised Accounting Software
There are several accounting software available in the market, But are they to be trusted? No! That's why we've come up with the most widely utilised accounting software available in the market. Based on usage experience and what features they offer. Here are a few of them that we've listed:
When it comes to affordable, easy-to-use accounting software with built-in time-tracking functionality, this feature helps maintain minutes of billable work or time spent while reviewing sheets or checking invoices. This software is super easy to use and affordable at the same time.
This software allows users to customise their Chart of Accounts, helps track business assets and expenses, and creates expense categories. The advantage of using FreshBooks is that users can provide permission-based access to an accountant in order to access reports, review and manage invoices and add journal entries.
- Permission-based access for an entire team
- User friendly interface and easy to navigate
- Fully customisable estimates, project proposals
- Insightful reports
- Payment requirement upon integrating other software
Zoho Accounting is another online accounting software tool that helps streamline every detail about your business, be it invoicing, payroll, taxes, revenue management, etc. Basically, it was made while considering retailers as it gives retailers several leverages like more payment options and faster access to transactions.
Other features include the generation of invoices from quotes in seconds. Users can enhance its layout with logos, brand colours, and fonts. It also has automated payment reminders, which can be turned on and off according to user needs.
Zoho Accounting also lets their user set up recurring invoices, which the user can secure with their digital signatures so that they remain in line with every development in their profile. What's more, it offers to collect deposits and advance payments as well as easily handle returns and refunds.
From a retailer's point of view, Zoho Accounting allows users to keep track of all inventory levels at all times. The user or accountant is free to set recorder points that will lead software to create and send purchase orders to vendors automatically.
- Helps to generate more than 50+ in-depth business reports
- Built-in time tracking that facilitates payroll
- Customisable payment reminders
- Variety of payment options
- Automated purchase orders
- Advanced inventory management
- Impossible to integrate with non-Zoho apps
Oracle NetSuite offers loads of features that provide absolute robust functioning of the business. It helps companies keep a tab on every single business operation, like automating administrative tasks, enhancing productivity, etc.
One of the distressing features of this software is that users will counter with the outdated user interface. Even after this fact, the user will have real time access to all the data stored. It is a Cloud- Accounting Software, so it has its own benefits over other sorts of cloud software. It will allow users to automate repetitive tasks such as creating new journal entries and coordinating account statements.
One thing that will really catch users' attention is that it supports a variety of payment processing solutions. Hence, it will make it easier to invoice clients about completed work while reducing waiting time for outstanding voices.
- Highly advanced systems that eliminate the need for manual input
- Fully customisable
- Robust Cash flow management
- Suitable for real estate agents
- Variety of payment options
- No free trial
- The extra customisation option proves to be confusing
Xero accounting software is best suited for small businesses or entrepreneurs. To its credit, it is both easy to use and to learn its operations. Xero helps in expense tracking, can take photos of receipts with a phone to quickly upload expenses to user accounts, instantly expense claims, monitor employee spending and manage expenses on the go.
Also, users can connect business bank accounts to software on the go. It will automatically inform users about the bank transactions of the business while securing every penny with highly advanced and latest encryption standards.
With the help of Xero accounting software, one can set up payment options for the collection of business-related payments. This way, users can have different payment modes for payment collection from customers and clients by adding a "Pay Now" button to the checkout page for easy payments.
- Suitable accounting software for small business needs
- Wide variety of payment options
- Simple payroll runs
- Once click bank reconciliation
- No money back guarantee
QuickBooks is famous in the financial world for its excellent cloud based accounting services with inventory management and project profitability tracking. The main job of QuickBooks is to store users' data on cloud platforms so that users can operate it anywhere and can provide access to anyone.
QuickBooks' best feature is allowing users to connect and sync all business accounts for easy tracking in one place. In fact, one takes snaps of the receipts instantly with the QuickBooks mobile app. Then, the software will automatically match receipts with existing bank transactions.
Additionally, all sorts of expenses are categorised automatically following easier tracking, ensuring no miss on tax deductions. Regarding taxes, QuickBooks saves users' taxes by performing tax calculations each quarter so that the user knows exactly how much he can save. Also, the software will develop tax filing documents on its own.
- Inventory tracking with real-time insights
- Encrypted cloud storage
- Automatic late payment reminders.
- Customisable invoice templates
- No direct professional support
- Limited number of users
There is a high possibility for businesses to make high profits with effective use of accounting software, as it's no surprise to watch different enablers providing different features in their software. However, the result of every highly efficient accounting software system is to maintain data records and preserve them with security. However, there are many options to choose from based on personal use or professional or industry, company, size and specific needs. Our list recommends FreshBooks if one hasn't used any accounting software before. It is easy to set up for maintaining and handling all business-related invoices, payrolls, taxes, revenues and transactions.
What makes QuickBooks and Xero popular choices for accounting software?
QuickBooks and Xero offer user-friendly interfaces and robust bookkeeping, invoicing, expense tracking, and financial reporting features. They also provide integrations with other business tools, facilitating streamlined financial management for businesses of various sizes.
Are QuickBooks and Xero suitable for small businesses only?
Neither QuickBooks nor Xero caters to businesses of different sizes, from freelancers and small enterprises to larger corporations. They offer various plans tailored to suit the needs of different business scales.
Can these accounting software solutions be accessed online?
Yes, both QuickBooks and Xero offer cloud-based versions accessible through web browsers, allowing users to access their financial data from anywhere with internet access.