Tracking your business expenses, and all the transactions related to it is very time-consuming and requires dedication and expertise to handle. Sooner or later, investing in hiring a bookkeeper or utilizing virtual bookkeeping services from a reputed company will become a necessity for the smooth functioning of your business. These days, outsourcing the work to virtual bookkeepers is a popular solution among many businesses because of the convenience and control these services allow.
We have compiled a list of the best software for bookkeepers along with their features.
Features to Look for in Quality Bookkeeping Software
Different virtual bookkeeping software from any reputed developer usually have similar features which are essential for maintaining the financial records. Depending on the version you choose or the package you are subscribing to, the features you get will vary. At the most basic level, the following are some of the criteria that you must look for while choosing a suitable software for your business:
- Ease of access through mobile application
- Option for multi-user access
- The different security technologies used in the software for protecting the business data you are sharing
- Prompt customer service
- User-friendly platform with in-app or software tutorials to guide even the novice users
- Basic functions like inventory management, real-time tracking of expenses, syncing with your bank account, options to view balance sheet, account payable and receivable, profit and loss statement etc.
You can also check out our previous blog that discusses this topic in detail.
5 Bookkeeping Software and Their Latest Features:
Running your business smoothly will be easier when you opt for a bookkeeping software and hire efficient bookkeepers who are proficient in operating it. The software minimizes the chances of human error which is always high in manually keeping track of every transaction. The following are some top software professionals opt for bookkeeping and accounting.
1. QuickBooks Online
Any post on bookkeeping software remains incomplete without the mention of QuickBooks online which is considered a standard choice for bookkeeping and accounting for small and medium-scale businesses.
Pros of this software are:
- The software is versatile, and easy enough to understand for business owners with minimum accounting knowledge.
- It is equipped with features like easy tracking for income, expenses, invoices, received payments, sales, taxes etc.- everything that is necessary for accurately keeping track of all the transactions throughout the year.
- The software integrates smoothly with third-party payment options like PayPal, Shopify, Square etc.
- Receipt capturing features and 24/7 chat support further enhance the ease of operating Quicken online.
- You can also run reports, check and send estimates, and organize receipts.
- Advanced plans of the software also have the option to manage and track inventory, contractors and run full-service payroll.
- QuickBooks can also be accessed by multiple users depending on the package you have subscribed for.
- This software also comes in the form of a bookkeeping app for iOS and Android smartphones.
Syncing the software to your bank account ensures the account activities get downloaded and categorized in your QuickBooks account, saving a significant time needed for reconciling and comparing the records.
FreshBooks is an online software that can integrate with several other business applications and provide a single dashboard for managing all your bookkeeping and accounting tasks.
Some top features of this software include:
- Built-in time tracking
- Bill pay and reporting features
The advantages of choosing FreshBooks include:
- Option to send out recurring invoices
- Ideal for running subscription-model business
- Integrates several business applications on a single dashboard for better organization of your financial information
- Backup security is strong
- The platform is user-friendly
Virtual bookkeeping service providers often recommend this online software especially for service-based companies as they need to send out recurring invoices, unlike product-based companies. The primary features of FreshBooks make this process smooth, and you can even view the location where the customer checked the invoice and avoid excuses for non-payment. It is also a great choice for freelancers because of its ability to automate payment reminders and manage the pricing and projects based on the number of active clients.
Xero is another bookkeeping software noted for its feature-packed interface. It is also one of the best software when it comes to flexibility of payment, making it easy to purchase its subscriptions from any country. Features of Xero that are worth mentioning are mentioned below.
- Automatic currency conversion option and exchange rate updates within the software that are done every hour, make it easier to subscribe. It can accept payment through more than 160 currencies.
- It has features like QuickBooks and FreshBooks and particularly suitable for a growing business with a need for multi-person access to the account.
Some advantages of this software include:
- User-flexibility to add as many users as needed after subscribing to the services without any additional charges is an important feature of this software. This is particularly helpful if your business is growing and in a transitioning stage.
- If you are already using QuickBooks, but considering to switch to Xero, the process is very easy and free of cost.
- It is comparatively an affordable option, and you can also enjoy a 30-day trial period before choosing a plan.
- It is easy to integrate Xero with other important software that bookkeepers will use for recording your finance thoroughly.
Businesses owned by one person and not based on a partnership will find Sage to be a perfect virtual bookkeeping software for its affordability. This software can be used for recording incomes and expenses as well as performing bank reconciliation- all for $10 per month. However, additional features like business’s financials, bill vendors and forecasting the cash flow are available when you upgrade to Sage accounting. In short, services related to accounting like payroll management have to be purchased as a separate product.
Small scale business owners who are working with freelancers and contractors will find the features of particularly favourable for their work process and project management.
Small scale businesses will benefit from the different functionalities available in Wave accounting software. The software uses cloud computing, and hence you can save a significant amount needed for data storage. The cloud computing is protected by string security features so you won’t have to worry about data security. The clients can always access and stay updated with the latest records through the bookkeeping app because of this feature.
Wave uses the method of double entry bookkeeping system which is considered more scientific and accurate since for every debit in the debit account, a corresponding credit amount is added. This makes it easier to reconcile the books since every transaction data is recorded. Moreover, it is easy to use, so small scale business owners with basic bookkeeping knowledge can understand the records that are reported by the bookkeepers using this software.
Choosing the right software for bookkeeping depends on various factors including the type of business, your budget, and the efficiency of the hired bookkeepers. The features and advantages discussed above will help you determine the right bookkeeping that will meet the needs of your business.