Accounting software

Accounting software comparison chart for 2024

Accounting software explained

Unless you’re running an accounting business, chances are you’re not going to be too excited by the financial and accounting tasks you need to complete on a regular basis. Invoicing, bill payments, tax calculations and financial reporting are necessary tasks but they probably take up more time and attention than you’d like. Doing your accounts stops you focusing on the essential aspects of your business. But while it’s important to keep a track of your business income and expenses, traditional accounting methods can be complex and time consuming. Keeping shoe boxes of receipts with your expenditure in an excel spreadsheet is also not ideal.

Accounting software is for start-ups, freelancers, small- and medium-sized businesses. Online accounting is designed to help you make smarter financial decisions based on real financial data. You keep your finances in check and always know exactly where you are with unpaid invoices, expenditure, and expenses. Using accounting software with automated processes and quick task management saves time, and it makes your life easier. Plus, the online software you use gives your business a more professional look. And it has been proven that businesses using accounting software for their invoicing get paid faster.

Benefits

There are many benefits of accounting software packages. From the basic invoice creation and distribution to the more complex financial goal setting, accounts software for small businesses helps you understand and manage all the financial aspects of your business. You can create customized and professional-looking invoices, track your invoices, and chase automatically for late payment. You can monitor your cash flow and keep track of your expenses for billing to clients. And you can put together financial forecasts based on reports that show you the true health of your company. Once you’ve done all this you can focus more easily on the day-to-day running of your company.

What to look for in accounting software

Accounting software helps you to keep accurate financial records, which is necessary for working out tax as well as calculating the financial health of your business. Online accounting differs from traditional accounting packages and procedures as it cuts the amount of time you spend on your accounts – and it cuts the jargon associated with the task. Your ideal accounting software is simple to use, time-saving, and jargon-free. It makes you more efficient and organized. Many people use Excel or paper-based filing to handle their accounts but online accounting cuts the risk of mistakes and is easier and less stressful to manage.

Good quality accounting software lets you track your income and expenses, control estimates and invoices, and provide year-end financial information. Excellent online accounting packages also add the following features:

Invoicing

Create professional-looking invoices with your own logo and branding. Personalize invoices with a message to clients, and manage your invoices in an organized fashion. Accounting software categorizes invoices into sent, paid, unpaid, and overdue, and you can set rules to chase invoices that are unpaid after a period of time. You can also, with many accounts packages, set recurring invoices to be sent automatically. Also look for the facility to immediately turn estimates into invoices once they have been approved.

Billing

Billing can be difficult to handle. Accounting software puts all the information in the same place and gives you streamlined billing solutions to handle all the money coming into your business.

Bank reconciliation

It is a good idea to choose online accounts that integrates your bank account with your accounts package. Transactions are automatically synched between the two places so you don’t have to manually input data every day. This saves time and cuts the risk of making mistakes.

Payroll

Many accounting software packages also have a payroll system integrated within the program, or available as an add-on. Payroll features allow you to pay members of staff in an efficient manner, on time, while managing the logistics of tax contributions.

Mobile

As you probably work a lot of the time on the road or in different locations, an accounting software package with integrated mobile apps is a good choice. Log onto the system from wherever you are and check your invoices, claim expenses, and keep accurate financial records.

Quotes

Send professional quotes to clients and customers. With online accounting these people can approve or make changes to the quote, which are automatically included in the system. When the quote is approved it can be converted into an invoice for payment when the job is completed.

Expenses

Monitoring expenses can be tough – accounts software helps you manage expense claims and ensures you don’t lose items that you could make a claim on. Good accounting software allows you to take snapshots of your paper receipts and attach them to bills, as well as helps you categorize expenses for easy financial management.

Reporting

Accounting software gives you different financial report options for an overview of your business as well as detail into the specifics of your financial information. Choose an accounts package with a good number of reports that you can customize and run when you like. You can also send copies of reports to your accountant. PAYMENTS Record payments and keep accurate records of where your money is going.

Timesheets

Some accounts packages also have integrated time tracking features where you can record the time you spend on different projects, tasks, and clients. This helps you see where you could be more efficient, and makes it easier to accurately bill clients.

Security

Above all, accounts software should be secure so you can work in the cloud without worrying about the loss of financial and sensitive data. Choose software that uses bank-level security to protect your accounts.