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.
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:
You can also check out our previous blog that discusses this topic in detail.
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:
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:
The advantages of choosing FreshBooks include:
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.
Some advantages of this software include:
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.
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