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Finance and Accounting
Accounting Programs to Know
2024-11-11
Managing finances is crucial for every small business owner. Accounting serves the strategic purpose of recording, classifying, and analysing records of transactions and financial statements of an organisation including expenses, taxes, cash flow and compliance. However, accounting is always challenging and requires too much time for small business owners. This is where accounting programs come in handy as they make complicated work easier. Additionally, it does most of the work on its own and the business owner can get an overview of the business.
In this article, we will review some of the top accounting programs today for business owners who need functional solutions to manage their businesses.
1. QuickBooks Online
QuickBooks is an innovative popular accounting solution product, and it is widely used by entrepreneurs. Quickbooks is a cloud-based platform where entrepreneurs can access their financial information anytime, anywhere, and requires a great internet connection. The software is user-friendly and offers a variety of features, such as:
- Expense tracking: Convenient records and categorises expenses to understand entrepreneurs' spending.
- Invoicing: Create and send invoices that are professionally designed.
- Bank reconciliation: Link your bank account to import transactions into the application, as well as update records.
- Reports: Access financial reports and track your business’s performance.
QuickBooks Online has different pricing plans that you can choose from depending on your business needs. It is suitable for both new and experienced small business owners, with features that make it easier to manage without a formal background.
2. Xero
Another reputed cloud-based accounting tool is Xero which is also highly popular because of its clean interface, powerful capabilities, and features. It’s especially beneficial for small to medium-sized businesses and provides features like:
- Payroll: A built-in payroll system that integrates with your accounting, making it easier to pay your employees.
- Inventory management: Track and monitor the stock status of products in real-time and stock inventory data.
- Invoicing: Similar to what QuickBooks provides, Xero comes with features for custom invoicing.
- Third-party integrations: Xero integrates with more than 800 business apps to help it be suitable for various types of industries.
Xero also supports multiple currencies, making it a great choice for businesses with international transactions. It is also popular among companies in retail, e-commerce, and consulting.
3. FreshBooks
FreshBooks is often used by freelancers, service-based businesses, and small businesses because of its simple and intuitive interface. It has a strong focus on invoicing and time-tracking, which are important features for service providers. Key features of FreshBooks include:
- Invoicing and payments: Design and produce compelling invoices and enable the majority of your clients to make payments effortlessly.
- Time tracking: Record billable hours and add them to invoices automatically.
- Expense management: Track expenses by snapping photos of receipts and uploading them to your FreshBooks account.
- Client management: Organise and keep track of clients and the status of their payments.
FreshBooks is a good choice for those who need to manage projects, track hours, and be paid faster, FreshBooks has fewer features for inventory and payroll, but it is a great option for freelancers and consultants.
4. Wave
Wave is a free accounting software that provides important features for small business owners and freelancers. Even though it is free, Wave offers an impressive set of features, such as:
- Invoicing: Design and send professional invoices.
- Expense tracking: Take records and categorise expenses to manage your budget better.
- Financial reports: Get simple reports like profit and loss and balance sheets.
- Payroll (Paid add-on): Payroll processing is available as a paid feature in certain regions.
Wave is a great option for entrepreneurs or freelancers looking for a basic, budget-friendly option. It covers all the essentials without a monthly fee, making it popular among start-ups and small businesses with tight budgets.
5. Zoho Books
Zoho Books is part of the Zoho Suite, which includes Customer Relationship Management (CRM), Project management, and Email platforms. Zoho Books is beneficial if you are a small business, more specifically if you are already a user of other services by Zoho. Key features include:
- Automated workflows: Automate routine tasks, such as sending reminders for overdue invoices.
- Multi-currency support: It is ideal for businesses dealing with international clients.
- Inventory management: Keep track of stock levels and manage products easily.
- Project management: Track project expenses and link billable hours to invoices
Zoho Books is cheap and comes with an easy-to-navigate interface which makes it a perfect solution for business people who want to manage their business errands from one platform.
6. Sage Business Cloud Accounting
Sage has a variety of packages for their accounting needs and one of the best for the small business is Sage Business Cloud Accounting. It provides cloud-based accounting with features like:
- Bank feeds: Automatically import bank transactions to make reconciliation easier.
- Invoicing: Create and customise invoices to suit your brand.
- Inventory tracking: Recommended for use by small retailing businesses.
- Real-time reports: Access up-to-date reports to track business performance
Sage is a trusted name in accounting, and their software is known for reliability and customer support. It's a good choice for business owners who need flexibility and dependability in their accounting software.
7. Old Mutual SMEgo
Old Mutual SMEgo is a South African platform designed to support small businesses in managing finances and accessing funding. It integrates accounting and business tools, catering to the specific needs of South African SMEs. The key features include:
- Basic accounting tools: SMEgo includes tools for tracking income and expenses, offering business owners a clear overview of their finances.
- Funding application assistance: A standout feature is its built-in support for funding applications, helping SMEs access financing through their funding partners.
- Local compliance: Developed with the South African tax and financial legislation in mind, and therefore is effective in simplifying the process of calculating VAT and other compliance-related exercises.
- Business resources: SMEgo offers business owners initial solutions and resources needed in managing their businesses with the aim of expanding.
When choosing accounting software, consider factors such as budget, features, ease of use, and scalability. Lastly, the best accounting software is one that fits your business’s specific needs.