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Running a business might seem like a straightforward process where you simply have to manage your finances, but the reality is quite different. Business operations can be complex and require careful planning in every aspect. One of the most critical aspects of running a successful business is accounting. It involves the tracking and management of financial transactions, including expenses and income. Fortunately, with the availability of online accounting tools, managing financial operations for your business is now more streamlined than ever before.
Online accounting software has become a go-to tool for businesses of all sizes, from startups to Fortune 500 companies. These tools help businesses and accounting professionals manage their finances more efficiently and accurately. In this blog post, we will take a detailed look at the top 7 online accounting tools that can help you streamline your business operations, improve efficiencies, and save time.
Video Tutorial:
What Online Accounting Tools Can Do?
Online accounting tools are designed to simplify accounting tasks and make them more efficient. Here are some common features of online accounting tools:
-Automate repetitive tasks
Online accounting tools can automate repetitive tasks such as invoicing, expense tracking, and report generation. By automating these tasks, businesses and accounting professionals can focus on more critical financial tasks that require their expertise.
-Monitor cash flow
Online accounting tools provide real-time views of cash flows, enabling businesses and accounting professionals to monitor their finances and make informed business decisions.
-Reduce errors
Online accounting tools can minimize errors by automating tasks that are prone to human errors. This helps businesses operate more efficiently and effectively.
-Improve business compliance
Online accounting tools also help businesses comply with financial reporting and tax requirements.
What Factors Should Be Considered While Choosing Online Accounting Tools?
Choosing an online accounting tool can be a daunting task, especially if you are new to accounting. Here are some factors to consider when choosing an online accounting tool:
-Pricing and plans
Consider the pricing and plans of various accounting software options. Choose an option that fits your budget and offers the features you need.
-Scalability
Choose an online accounting tool that can grow with your business. Scalability is important because as your business grows, your accounting needs will change.
-Ease of use
Consider the user-friendliness of the accounting tool. It is vital to select an accounting tool that is easy-to-use, even if you’re new to accounting.
-Customer Support
Choose an online accounting tool that provides excellent customer support. If you have a question or run into an issue, it’s reassuring to know you have access to reliable support.
Top 7 Online Accounting Tools Recommendation
Top 1: QuickBooks Online
QuickBooks Online is one of the most popular accounting tools on the market, and for good reason. It is user-friendly, scalable and offers a wide range of features that cater to the needs of businesses of all sizes. QuickBooks Online offers advanced features such as automatic payment reminders, online bill pay functionality, and multi-currency support.
Pros:
- User-friendly interface makes it easy to use
- Wide range of features meets various business needs
- Comes with free trial for testing out
Cons:
- Prices are higher compared to other accounting software options
- Customer support is mediocre
Top 2: Xero
Xero is known for its robust accounting features that cater to businesses of all sizes. It is user-friendly and has excellent reporting and invoicing features that help businesses manage their finances more effectively. Xero also offers features such as bank reconciliation and inventory tracking.
Pros:
- Robust accounting features cater to businesses of all sizes
- Intuitive user interface makes it easy to use
- Excellent reporting and invoicing features.
Cons:
- Limited payroll support and limited customer support during weekends
- Pricing plans are more expensive compared to other accounting software options.
Top 3: Wave
Wave is a free accounting tool that offers essential accounting features such as invoicing, expense tracking, and reporting. It is ideal for freelancers, startups, and small businesses, who need to manage their finances with limited resources. Wave also offers multiple user accounts and support for multiple bank accounts.
Pros:
- Wave is free and offers essential features for businesses
- Multiple users and support for multiple bank accounts.
- User-friendly interface makes it easy to use.
Cons:
- Limited features compared to other accounting tools
- Payroll processing is not included with the free version
Top 4: FreshBooks
FreshBooks is a powerful tool designed for freelancers and small businesses. It offers essential features such as invoicing, expense tracking, and time tracking to help businesses manage their finances more efficiently. FreshBooks also offers project management tools to keep track of projects and collaborate with team members.
Pros:
- Powerful invoicing and expense tracking features
- Project management tools to manage projects and collaborate with team members.
- User-friendly interface makes it easy to use
Cons:
- Limited accounting features compared to other tools
- Pricing plans are more expensive compared to other accounting software options.
Top 5: Zoho Books
Zoho Books is a cloud-based accounting tool designed for businesses of all sizes. It offers features such as invoicing, expense tracking, and time tracking to help businesses manage their finances more efficiently. Zoho Books also offers project management tools to manage projects and collaborate with team members.
Pros:
- Offers a wide range of features, catering to businesses of all sizes
- User-friendly interface makes it easy to use
- Excellent reporting and invoicing features to manage finances efficiently.
Cons:
- Zoho Books doesn’t offer a payroll service
- Customer support can be slow to respond at times
Top 6: KashFlow
KashFlow is a software designed to help small businesses manage their finances. KashFlow offers a wide range of features, such as invoicing, expense tracking, and reporting. It is user-friendly and has great customer support that will guide users through any support queries.
Pros:
- User-friendly interface makes it easy to use.
- Offers a wide range of features to meet business needs
- Affordable pricing plans
Cons:
- Limited integration options compared to other accounting software options.
- Limited customer support outside working hours.
Top 7: GoDaddy Bookkeeping
GoDaddy Bookkeeping is a cloud-based bookkeeping tool designed for small businesses and freelancers. It offers basic accounting features like invoicing, income and expense tracking along with tax preparation. GoDaddy Bookkeeping allows seamless integration with GoDaddy’s website hosting services.
Pros:
- Offers reliable business tax preparation for any given year
- Easy to set up, manage and use.
- Offers essential accounting features with affordable pricing.
Cons:
- Limited accounting features compared to other accounting software options.
- No integration with other website hosting services other than GoDaddy.
Comprehensive Comparison of Each Online Accounting Tool
| Features | QuickBooks Online | Xero | Wave | FreshBooks | Zoho Books | KashFlow | GoDaddy Bookkeeping |
|---|---|---|---|---|---|---|---|
| Free Trial | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Price | $25-150 per month | $11-53 per month | Free for basic plan | $20 monthly fee for advanced plan | $15-50 per month | $9-29 per month | £5-15 per month | $4.99-14.99 per month |
| Ease-of-use | Very user-friendly | Very user-friendly | Very user-friendly | Very user-friendly | Very user-friendly | Somewhat user-friendly | Very user-friendly |
| Value for Money | High | High | High | High | High | Moderate | High |
Our Thoughts on Online Accounting Tools
Online accounting tools have come a long way in recent years, transforming the way businesses manage their finances. QuickBooks Online, Xero, and Zoho Books are ideal for mid-sized businesses, while Freshbooks offers an ideal solution for freelancers and solo entrepreneurs. Wave Accounting is perfect for small business owners who are just getting started. KashFlow and GoDaddy Bookkeeping are affordable options for small business owners who need essential features.
In conclusion, choosing the right online accounting tool from this list requires careful consideration of your business needs and budget. Our final recommendation would be to choose a tool that offers features you need, is user-friendly, scalable, and offers excellent value for money.
FAQs about Online Accounting Tools
Q1: What’s the best accounting software for small businesses?
A: Freshbooks, Wave, and Kashflow are among the best accounting software choices for small businesses due to their affordable price points.
Q2: Is QuickBooks the best overall accounting software?
A: QuickBooks is one of the best overall accounting software options in terms of features, but it is also more expensive than other options.
Q3: Which accounting software offers the best invoice management feature?
A: Freshbooks is widely considered one of the best software when it comes to invoice management. It offers numerous templates, beautiful designs, and customization options.
Q4: Can I cancel my subscription to an accounting tool at any time?
A: Yes, most of the accounting software services offer users the ability to cancel their subscription at any time.
Q5: Which accounting software offers the best mobile application for managing finances?
A: Quickbooks is regarded as the best accounting software for a new and slick Mobile application, which offers full features and neat functionalities in terms of managing finances.
Final Words
Online accounting tools have become essential for businesses of all sizes. They help users manage finances more effectively while minimizing human errors. QuickBooks Online is an excellent choice due to its scalability, user-friendliness, and advanced features. Xero, Freshbooks, Wave, Zoho Books, KashFlow, and GoDaddy Bookkeeping are all fantastic options for businesses with lower budgets. Ultimately, to choose the best one, it would be wise to evaluate each option’s unique features, pricing, and scalability that cater to specific business needs.