Accounting software is a great idea for a small business if you want to save money and have more time for growth. But it’s also important that you understand what accounting software entails before you choose a product. In this article, we’ll explore how accounting software can help small businesses, why it’s an effective investment, and which type of accounting software might be right for your business.
In this guide, we review the aspects of Do I Need Accounting Software For Small Business, best bookkeeping software for small business, offline accounting software, and Can a small business do their own accounting?
Do I Need Accounting Software For Small Business
Accounting software has increased in popularity in recent years because it’s a one-time investment and can help save small businesses thousands of dollars in accounting costs. The best part is that you can start using it as soon as your trial period ends! In this article, we’ll explore whether or not accounting software is right for your business.
Do you have an accounting team ready to help you manage your business?
If you don’t have an accounting team ready to help you manage your business, then it may be worth considering hiring one.
You can get an accountant to help set up and manage the accounting software, but they’ll charge by the hour. This can add up quickly if you’re not sure how much time to allocate for this sort of task.
They may also be able to handle all of your tax work, but again at a steep hourly rate.
Finally, they might be able to offer additional services such as financial planning (again at a high hourly rate).
Are you looking to scale the size of your business quickly?
If you’re looking to scale the size of your business quickly, then accounting software can help. It can help you manage cash flow, as well as your business taxes and employees.
It may also be able to assist with customer management.
Do you only want a one-time solution?
If you’re looking for a one-time solution, then accounting software may be the way to go. The initial cost of these programs is often high, but once you’ve paid for it, that’s all you’ll have to do. There are no extra fees or subscriptions—you can use it for as many people as you want and it will work just fine for years!
That being said, if the software isn’t working well after a few months (or even years), then something else might be better suited to your needs. If this happens and you’re still not sure what kind of software would fit your needs better, give us a call at 1(800)-[NUMBER] and we’ll help guide you towards an option that works best for your business!
Accounting software can help your small business succeed.
Accounting software is a great way to manage and automate your small business. If you are not using accounting software, you are missing out on the opportunity to:
- Track expenses and revenue
- Plan for the future (with budgets and forecasts)
- Save money
best bookkeeping software for small business
The all-new Accounting Software from FreshBooks empowers small businesses to spend less time on bookkeeping, without the stress.
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With FreshBooks simple cloud-based accounting software small businesses can build their businesses smarter and faster. You can stay focused on delivering top-quality service to your clients while FreshBooks looks after the financial health of your business. Get started today to send invoices, track expenses and accept online payments, so you receive the money owed to you faster.
Bookkeeping Software Built for Your Small Business
FreshBooks empowers small businesses to attract new clients and grow their business. Learn how to work smarter not harder and identify opportunities to be more productive and efficient. With FreshBooks, you will be able to create professional looking invoices in just minutes and manage your expenses on the go.
Plus, track your time on the job and collaborate with team members and clients with ease. It is an all in one accounting tool that manages your bookkeeping needs. Take your business to the next level and get paid faster with FreshBooks. Oversee all your accounting tasks without ever leaving FreshBooks.
FreshBooks gives you back time. Automate tasks like organizing expenses, tracking time and following up with clients, FreshBooks accounting software works hard for bakers, so they can rest easy.
Wow clients with sleek estimates and invoices that show off your brand. Whether you’re an independent contractor or work with a team, it is easy to look like the professional you with FreshBooks.
Get Paid Faster
As a small-business, you’ll never have to chase down checks again. FreshBooks accounting software offers online payment options to make your client happy and get you paid 11 days faster. That’s a win-win.
FreshBooks Accounting Software Testimonial Videos
Invoicing Software and Time and Expense Tracking for Small Businesses
FreshBooks accounting software is built to make sure small businesses like you are getting paid every penny you have earned for your hard work. Creating a customized invoice is easy – just add your logo and personalize your “thank you” email. FreshBooks makes it easy for you to track your time and expense to add to invoices, so you’ll never leave money on the table again.
Late Payment Reminders
Automated late payment reminders save you from keeping track of who’s paid when. Activate the accounting software’s default settings or customize your own terms and message.
Late Payment Fees
Are late payments slowing you down? Build in late payment fees to make sure you’re paid what you’re owed. Make it easy and automatic.
Do you invoice some of the same clients every month? (Congrats!) Create a recurring profile and FreshBooks accounting software will automatically send out invoices for you.
FreshBooks accounting software allows you to set up a billing schedule to automatically (and securely) charge your client’s credit card in seconds.
Accounting App for Small Businesses That Offers Secure Online Payments
FreshBooks makes it easy for your clients to pay you quickly and easily with simple, secure online payments. Clients can pay you by credit card directly from the invoice you sent them with just a few quick clicks. With first-class security and encryption, your client can rest at ease knowing their payments are secure. The fee structuring is straightforward and transparent, so there will be no second guessing involved. Plus, accepting payments online will elevate your brand in the modern world. Billing is not the best part of running a small business, so let FreshBooks help.
Choosing an Accounting Software for Your Small Business
As a small business, you need accounting software that allows you to focus on your work without worrying about finances. That way you can dedicate your time doing quality work for existing clients and finding new clients to help your business grow instead of stressing about calculations and spreadsheets. FreshBooks offers the best-in-class accounting tools designed for businesses like yours. Our software features work together to offer a streamlined accounting solution to keep your finances in order while you run your small business.
Advance Your Small Business with Double-Entry Accounting on FreshBooks
Having a small business doesn’t always mean you are working with small numbers. If you are managing multiple accounts, you need a bookkeeping solution that helps you keep things in order.
Benefits of FreshBooks Double-Entry Accounting for Your Small Business
At FreshBooks, we’re obsessed with giving small business owners exactly what they need in order to take control of their accounting and bookkeeping. That’s why our accounting software now includes double-entry accounting – an industry standard feature that helps you keep all of your debits and credits in check.
offline accounting software
Here are several different makes of bookkeeping software free for anyone to use.
These are genuinely free products, not those annoying ‘free trial period’ ones, but free for as long as your small business requires it, or if you are a student wanting to practice your bookkeeping skills.
These companies can provide their bookkeeping software free because they make their money with upgrade add-ons or personalized services and so on.
I have been using expensive and advanced bookkeeping software for many years and these free ones compare very well.
Bookkeeping software Free to Use – list
1. Wave Accounting
As of 30 November 2020 Wave is Only Available for Businesses inside the USA and Canada.
This one is an online program so will be compatible with any computer system with an internet browser.
Wave Accounting is a great accounting program for small businesses who offer services of some sort, or who sell products but don’t need to track inventory, or can track inventory in another program.
Manager has a desktop version and a cloud version. The desktop version is free, the cloud version is on subscription basis. Here is a comparison. If you only need one user and don’t need to access it when away from your computer, then the desktop version is a great choice – it has everything you need.
Manager is an open source software and is designed to allow users to be up and running within minutes of download.
It is compatible with Windows, Mac and Linux.
Unlike most traditional software brands, there is no need to spend hours configuring Manager and entering opening balances, setting up the chart of accounts and financial year dates before being able to use it. It’s simple, fast and easy to use.
What you get with Manager Desktop version
Who needs to spend a fortune on traditional accounting programs when you can get bookkeeping software for free in a fantastic program like Manager! Just click on the graphic below which will take you to Manager’s download page… all free!
3. Pandle – New
Pandle is fairly new software and is developed in the United Kingdom but can also be used internationally and has sales tax features which updates to your country of choice.
At the time of writing this blurb, Pandle comes with two plans:
As this article is about free software, I will focus on Pandle’s free version for one company.
You can check out Pandle for yourself. Any features that are only available in the paid version have a small blue box with the word “Pro”, so you know exactly what is available in the free version.
4. Express Accounts
The free bookkeeping software is Express Accounts. It is only available free now for non-commercial home use.
It is compatible with Windows 10, XP, Vista, 7, 8 and 8.1, on 64 bit Windows, Mac OS X 10.5 or above.
What you get with Express Accounts
Click on the graphic below which will take you to the NCH homepage containing the bookkeeping software free download link – as seen in the graphic.
Click on ‘download the free accounting software version here’ and it will download the set up assistant for placing this software onto your computer.
Once you are setup and ready to go, enter the program by clicking on the icon on your desktop which should like something like this:
If you cannot find the icon you may need to add it to your desktop by searching for it in your computer’s list of programs for NCH Software, right clicking on Express Accounts, selecting ‘Send to..’ and choosing ‘Desktop (shortcut).
When you are in Express Accounts a message might come up asking you to certify that you have less than five employees. Click on this.
If you have more than five employees, click on the box for the commercial license. This prompt might only show up after you have been using it the program a short while.
To learn how to use the software you can access the help guide by clicking on the question mark on the top right – see red circle on graphic below.
Can a small business do their own accounting?
This is a common question we get asked when talking to prospective clients. Whether you’re a sole proprietorship, LLC, or S-Corp – it doesn’t matter which entity setup you are – taxes and financials are complicated and constantly changing. If you’re asking that question, the answer is probably yes. But we might be a little biased.
So instead of answering that for you directly, we’re going to talk about the differences between what a bookkeeper does and what an accountant/tax preparer/CPA does for a small business. We’re going to discuss situations we see often with prospective clients, and success stories and benefits of having an accountant on your team. And then you can decide if you need a CPA for your small business.
A bookkeeper is a person (or team) who is in your books daily, weekly or monthly, depending on the needs of your business. They ensure that your transactions are recorded properly and accurately.
If you’re just starting out and you want to do the books yourself, you absolutely can, but eventually, your time will be better spent elsewhere. Whether that’s time off or generating sales, sometimes it’s nice to have an expert with experience overlooking your financial situation.
Some examples of tasks that a bookkeeper can take off of your plate include:
There are some extremely tedious but necessary tasks that need to be done as a business owner. And many of them can be handled by someone who has experience with such tasks like invoicing, payments, sales tax filings and reconciliations.
Most important, though, is having accurate books and records. This is really important for tax return preparation, budgeting, data analysis, growth, and cash flow.
If you do it right, the bookkeeper that you hire should save you more money than they cost.
While the bookkeeper is dealing with the nitty-gritty and the day-to-day transactions, the role of your accountant is much more high level.
The accountant that you have on your team is an essential role in the overall growth and direction of your business. In addition to assisting in improving the bookkeeper’s processes and procedures, and verifying that the financials produced by your bookkeeper are accurate, the accountant will help interpret the financials and help you discuss strategy based on trends and the expected future income.
The accountant should also meet with you throughout the year to discuss tax planning and strategy. There are definite advantages to knowing what your tax bill will be in July of the current year, instead of April of the following year, where you have no option but to pay what is owed. There are tax planning strategies to employ, concepts to explore, and programs to take advantage of with enough time left in a tax year. But most importantly, the additional time allows you to plan for that tax bill and either stash money during the year, or pay some tax estimates in to lessen the burden come tax time.
As long as your accountant files your individual and corporate taxes, if needed, and provides both consulting/tax planning services, the bookkeeper and accountant should be more than enough of a financial team for most businesses at the start.
Situations We See Often with Prospective Clients
Usually, our prospect calls for our small business clients fit into one of two profiles of business owners.
They’re just starting out in business. They just realized that their passion or hobby is something that people will pay money for. They don’t know if they’re actually “in business” because their business activity is fairly minimal at the get-go. And they’re not even sure that their level of activity even justifies the cost of an accountant.
They have been in business for 3-5 years and they’re confident in their knowledge of business finances and taxes and figure that they can get by filing their return on TurboTax. Which usually works for a while, maybe even for years. The problem arises when they get a notice for years of taxes owed that wasn’t even on their radar. These can be sales tax, payroll tax, local municipal tax, state tax. And once a few years goes by, not only might you have to make up for those amounts you would have owed, but you also have to change how you operate going forward. And this can be a challenge for entrepreneurs that have already set up processes and procedures in their business and now have to restructure or rethink how they do things.
Success Stories and Benefits of Having an Accountant on Your Team
We love when newbie business owners call us. It’s so much easier to start your business off on the right foot. From a tax perspective, understanding how your business is taxed (depending on the type of entity that you have), and from a financial reporting perspective, understanding how your financials should be setup, and most importantly, what they’re telling you. From a growth and direction perspective, setting goals for the future, and depending on the landscape of the current economic environment, how to best achieve those goals as the years go on, costs go up and there seem to be fewer hours in the day.
While newbie business owners can get by for a while, making enough money to live, what is often a shock is the amount of taxes owed on the income they generate. When a newbie comes on board with us early in their business life, they’re confident that they’re going to know what their tax burden is months ahead of when the tax return is due so they can either pay in some estimates to lessen the burden, or at least stash some money away so that they don’t spend their tax money. And they’re also going to know exactly what other taxes (payroll, sales, etc) their business is subject to so that they can operate without any concern of non-compliance.
It’s so much harder to unravel the issues that confident business owners can have. Those who made just a few critical mistakes along the way and are just now reaching out for help. There is nothing wrong with this mindset, but there are definite advantages to having an expert on your team early on that is knowledgeable about compliance requirements, especially in tax areas, because the penalties, interest, and most importantly, time to correct these errors can be costly.
It’s not too late to right wrongs and work towards operating your business worry-free. We’ve faced plenty of situations where taxes weren’t filed for years, and sales tax was never collected, or the business was operating in a municipality without proper licensing, or payroll taxes weren’t remitted on time, etc. And all of those instances have been solved without anyone getting in trouble, losing their house, or going to jail. Accountants, especially us, have seen just about everything, so don’t think you’re alone.
After going through the chaos of the pandemic with a few hundred business owners, we also were reminded of how important it is for business owners to have access to accurate and complete financials when applying for loans and grants. Not only was it important to prove eligibility for certain programs and to determine the amounts they would qualify for, it was also important for business owners to really study their overhead costs, the costs that they have regardless of whether they make a sale or not, and figure out which expenses they could cut and do without, or defer and pay when the business could afford it.
Business owners need someone on their team who can review the numbers with them, interpret them, and provide advice. And since we’re not living and breathing the business 24/7 we can do so without emotions being involved. And that’s what we love to do! Just in the past few days, we’ve gotten some really solid reviews from clients who are having their mid-year meetings that prove these points exactly.
So if you’re still asking yourself if you need an accountant or CPA for your small business, you might want to ask yourself if you can afford not to have one.