Launching a startup is an exciting and at the same time extremely challenging undertaking.
There are a lot of obstacles and hurdles that you’ll have to overcome on your way to success, and money management and accounting are among the most complex ones.
If we bear in mind that 82% of small businesses fail due to poor cash flow it’s evident how important this aspect of running your business is.
Besides that, if you don’t do your accounting tasks properly you risk slipping into bad financial habits, not to mention that you can experience issues with taxation and miss out on beneficial tax returns.
Benefits of Accounting Software
There are numerous benefits of using a program for managing your business financial transactions and some of them are:
- Improved accuracy. Instead of performing complex calculations manually and risking human error, you should turn to account software which will make sure that no mistake is made and that your end balance is accurate.
- Greater efficiency. This software helps businesses automate their processes and increase efficiency and speed.
- Reduced costs. By using a powerful computer program for doing financial calculations, every member of an accounting team will be able to do more in less time. In the long run, this means that a smaller team will be needed, thus reducing the accounting department’s payroll expenses and other costs.
This software is a perfect fit if you run a subscription-based business and send a lot of recurring invoices.
A time-tracking functionality is another plus, as you’ll be sure that you can invoice your client correctly and accurately.
FreshBooks allows you to track your expenses and keep tabs on your spending.
There’s a super useful feature which notifies you that your invoice has been viewed and paid. In other words, you don’t have to worry about all the lame “I haven’t received it” excuses.
Regular security patches and upgrades are available and you can access your dashboard from different devices, as it has a mobile app, which is great if you’re frequently on the go.
Intuit QuickBooks Online
With several different plans that you can choose among, this software is suitable for startups of different sizes. Their tagline is quite catchy and according to it, you’ll be able to save approximately 40 hours per month, which can significantly boost your efficiency.
It integrates with PayPal, Shopify, and Square, and provides a Receipt Capture feature on all plans.
When you connect your bank account, it will be possible to import and categorize your transactions, track income and expenses, track sales and taxes, and many more.
If you opt for a more advanced plan, you can even run a full-service payroll, or track project profitability as well as inventory.
Xero might catch your eye because of its affordable Starter account which you can get for only $9 a month, but if you scratch the surface, you’ll find lots of additional features and functionalities that are worth considering.
For example, you can take advantage of smart expense tracking and management, which is also available for smartphones via Xero’s dedicated mobile app for Android and iOS.
An unlimited number of additional users and accountants can access your data, which is a big plus, while simple budgeting and configurable reports are also nice perks.
Payroll services are available through Xero’s partnership with Gusto.
Multi-currency accounting is an option which comes when you sign up for a significantly more expensive plan, but if you’re doing business internationally, then this investment is worthwhile given that you’ll be able to manage accounting in more than 160 currencies.
Sage Business Cloud Accounting
If you pick this option, you’ll get value for your money as its most advanced plan comes under $25 and offers quote and invoice management, handling and submitting VAT online, cash flow forecasting, project tracking, and multiple-currency support among many other things.
It’s worth mentioning that the software is intuitive as well as that there are free 24/7 telephone support and video tutorials to help you with the onboarding process.
However, if you don’t need a cash flow forecast, quote support, or estimates and vendor bills, you could do with the software’s basic plan, suitable for small businesses.
This easy-to-use software is a great solution for small businesses and startups that want to effortlessly manage their finances and automate their workflows.
Zoho Books is a comprehensive accounting tool and you can use it from negotiating deals all the way to invoicing to automate repetitive and time-consuming tasks. Besides that, it can assist you when it comes to creating your audit reports and staying tax compliant.
The fact that it integrates with more than 40 different applications means that you’ll have an all-around platform capable of handling and managing every aspect of your business at your fingertips.
Free Agent is an excellent solution for businesses that need to create estimates and invoices quickly and easily.
The invoices are customizable and professional-looking, and there’s multi-language and multi-currency support. What’s most important, there’s so-called Invoice Timeline which allows you to track the status of all your invoices and see who owes you and how much.
When it comes to your expenses, you can take a snap of your every receipt and upload it to your account so that you can have all of them in one place.
The taxation process has also been simplified, and you can conduct self-assessment, find out how much you should pay, and file your tax return online.
Time tracking is also available as well as payroll services, at a comparatively affordable price. All these accounting software solutions can be extremely helpful and save you a lot of time and money, so make sure to explore all their features and functionalities to find out which one suits your needs best. If your company is besed in Ireland, here is a list of accounting software for Irish companies. Bear in mind that the price shouldn’t be the most important factor when it comes to making a decision, as you can save even more if you find a perfect fit for your business early on.