Every growing business requires good software so that its finances are accurately recorded. No matter how big or small, every business needs accounting services. These include summarizing, analyzing, and reporting of all the financial transactions of the business. Having an efficient bookkeeping tool ensures the overall health of the business thus keeps track of profits, losses, and taxation.  There are numerous accounting software platforms in the market. Hence there is a high chance of choosing the wrong one because of their complex functionality and pricing. We have shortlisted 5 accounting software platforms for effective bookkeeping to pick from, the best suited for your business.

Did you know… Almost 500 years ago in 1494, the process of accounting was created by an Italian Renaissance mathematician named Luca Pacioli. It involved writing down all the financial data in the books hence the method was called Bookkeeping. Fast forward to the present day the business accounting is still essential as ever. But thankfully nowadays, we have plenty of accounting tools to rely on for keeping our books maintained.

The selection of the right accounting software from the dozens of tools for bookkeeping is a deceitfully challenging task. Because not every tool will suit your business. We have put together a list of the top 5 accounting software for effective bookkeeping to make it easy for you to choose the best for your business.

What Are the Pre-requisites of Accounting Software?

There are some basic characteristics that your bookkeeping tool must possess:

1. Synchronizes Well:

In the current modern era, businesses are run through various applications. So first of all, make sure that the software you are going to choose is synching well with the existing tools or not? Because only good synchronization ensures seamless functions and processes.

2. Accessible to Multiple Users:

The accounting procedures should be made easier for every key employee. One of the most important features of an ideal bookkeeping tool is its accessibility and availability. Because multiple user friendly tool ensures trouble-free business operations.

3. Mobile Friendly:

Most of the business owners are on the go, so they prefer a bookkeeping software that is compatible with mobile phones. It can be accessed from anywhere anytime.

4. Fulfilling your Business Needs:

You should first do your homework and make a list of your accounting demands. Before you choose a tool, prioritize your business needs from least to most important.

5. Stay Clear on Your Budget:

One should be honest about the budget. You should identify your buying power before you embark on the research phase of the process. This will eventually make your decision making easy and enable you to  choose the suitable accountant tool for your business.

Top 5 Accounting Software for Effective Bookkeeping

Master your finances and make meticulous financial policies. Pick up the most practical bookkeeping tool for your business. We have put together a list of Top 5 Accounting Software for Effective Bookkeeping down below:

1. XERO:

• It is the most reliable bookkeeping solution which can be accessed from multiple devices due to its simple navigation and interface. It’s available in both the iOS and Android app stores.
• Xero can limit the number of its users. It restricts the account that happens to greatly benefit the business owners.
• The basic package of Xero includes options for billing and generating expense reports and it offers a free trial version to give a try to its services and check if it fits your business.
• It’s the perfect choice for the SMB owners who are always on the go because it is designed with an emphasis on ease of use and mobility.
• Xero allows smooth synchronization across multiple applications and devices, providing the user with the most updated information wherever they are. It makes all the SMB procedures simplified and hence making the business operations seamless.
• This software supports all the basic accounting solutions such as sales, expense, inventory, payrolls, purchase orders, quotations, and invoices.
• Built-in the cloud for the cloud: It synchronizes with more than 800 other business applications like Wagepoint for payroll and A2X for e-commerce stores. Xero works best when supported by accounting partners such as Centrosome. 

Go to the official Xero website to learn more. Contact Us to set up a free Xero demo account.

2. QuickBooks:

• QuickBooks Online is one of the industry-leading accounting solutions. It offers a quick and easy bookkeeping solution that features a clean, simple interface and intuitive reporting.
• It includes expense tracking, sales, and tax reporting. In addition to this, it can support multiple simultaneous users and additional functionality such as directly integrated payroll support.
• This accounting software is pretty economical and will provide all the essential services in a reasonable amount of money. The Quickbooks Online mobile app is one of the best features. It allows users to manage pretty much everything from the road.
• The other benefit of QuickBooks is the full technical support they provide 24/7. The users can call, chat, or email them to resolve any runtime errors as soon as possible.
• QuickBooks offers a desktop solution as well, however, for small business owners, QuickBooks Online is the best option.
• New features are being added regularly, including a new feature that allows users to take real-time pictures of the expenses and track them directly in the platform – no more lost receipts. QuickBooks Online also supports the synchronization with the bank accounts from most major financial institutions, allowing the automation of data entry and not missing transactions. 

Go to the official Quickbooks Online website to learn more. Contact Us to set up a free 30-day trial of the software.

• There is an option of adjusting accessibility to control the usability. The permission to access the software is granted individually so it’s in your hand which employee gets the administrative privileges.
• This is the most simple software too to use even if you are inexperienced with small business accounting tools.
• FreshBooks is considered the best SMB bookkeeping tool for creating invoices, managing expenses, tracking time, managing projects, and generating reports.
• Most importantly, FreshBooks is compatible with G Suite, Stripe, Shopify, Gusto, and many other famous applications.
• In short, if you are an individual, self-employed SMB owner then this accounting software is designed to meet all your requirements, however, for large and demanding businesses, as well as enterprises should opt for a more powerful tool.

Go to the official Freshbooks website to learn more.

4. Zoho Books:

• One of the vital features of Zoho Books is that it’s fast and seamless due to a proficient interface.
• This is a small business accounting software that supports an end to end accounting solution which means that it can take care of daily transactions as well as manage bigger deals and invoicing.
• Zoho Books ensure tax compliance and helps in understanding tax liabilities and prepare audits according to the CRA and IRS guidelines.
• The dashboard is simple and pretty straight forward and it caters mostly to all accounting needs such as inventory, banking, reporting, receivables, and payables, etc.
• This bookkeeping tool integrates with almost 40 other essential applications. It is based on the number of contacts in its account which are defined as customers and vendors.
• Zoho Books is most popular among home workers, freelancers and sole traders as it is simple and user-friendly features.
• The basic functions of Zoho Books include editing financial documents on the go, generating reports, track daily expenses, creating and sending invoices, and integrating with the business bank accounts.

Go to the official Zoho Books website to learn more.

5. Sage 50cloud Accounting:

• It has advanced functionality that provides comprehensive and cloud-based software solutions.
• This accounting software has been in the market for almost 40 years serving with enterprise-grade companies across the globe.
• Sage 50cloud accounting tool synchronizes smoothly with Microsoft office and can seamlessly manage inventory, expense, and invoicing.
• This bookkeeping tool provides extensive customization options supporting role-based account management for more than one company.

Go to the official Sage 50 website to learn more.

How to make a decision:

Now that you have an idea about the top 5 accounting software for effective bookkeeping it is time to select the one which suits best your business. there are certain factors you should keep in mind before making a purchase.

1. Usability: The topmost reason to opt for an accounting tool is to make the processes easier so never go for anything complex.
2. Features: Make sure the choice you are making is addressing most of all your business needs.
3. Accessibility: No one wants to tie up to the one specific desktop computer rather choose a cloud-based bookkeeping tool that allows access to its users from anywhere.
4. Automation: It is the most crucial factor. Always choose the one with automatic report generation, invoicing, and reconciling bank statements.
5. Integration: This is the must-have factor if you are using other platforms for your business.
6. Price: The prime factor that needs to be considered. Remember! Paying a ton of money doesn’t equate for better software.

Conclusion:

The final step is to narrow down your choices based on the factors described above. Always opt for a free trial version first to test and ensure that every functionality is suitable for your business.

After you have made a decision, import all your financial data to the new software and allow the accounting software to provide the best service for your business.

Stay on top of your business and opt for proper bookkeeping. It can drive your business to improve core areas and achieve the most out of the business world.

Consider hiring an expert and free up your mind. Centrosome Inc. is a bookkeeping firm that offers a full suite of bookkeeping services for your business. We are based in Ottawa, Canada and help small businesses with bookkeeping in Canada and the United States.

To learn more about the services we offer at Centrosome Inc. Please click here to learn more or read what our clients are saying about us, here. If you have any questions about how we can help you, contact us.