Running a small business means being a jack-of-all-trades. From sales to marketing and even finances, there are limitless responsibilities and tasks to tackle. The importance of managing your small business finances cannot be overstated. According to a study commissioned by Intuit QuickBooks™ in 2022, only 48% of small business owners are confident they’re paying taxes correctly. Learning how to handle your small business accounting and tax needs is crucial for success. Accounting software can help give you the necessary tools and confidence to keep your business on track.
At Infinity Insurance Agency, Inc. (IIA) we appreciate there are many aspects to consider when running your small business. Just as commercial car insurance can help provide necessary coverage for you and your employees, small business accounting software can offer easy-to-use tools for tracking income, generating invoices, reports, and more.
Why small business owners may want to consider accounting software
Unless you are naturally skilled or trained in accounting, managing your business finances can be a daunting task. Utilizing accounting software could help increase the efficiency and accuracy of tracking your money. Today’s software options streamline the accounting process which could save you valuable time through automation. While the sophistication of accounting programs can vary from brand to brand many companies offer the ability to:
- Invoice your customers
- Track expenses
- Follow up on past-due receivables
- Automate daily transfers or recurring invoicing
- Streamline tax filing with generated reports
- Simplify payroll through automated payments
- Instantly generate key financial reports
- Seamlessly sync financial data
- Protect sensitive financial data
- Reduce basic accounting errors
- And more!
Using a software solution could help keep you organized, up to date, and prepared for tax season. Some software programs can even automatically calculate sales tax and prepare tax forms for you.
Key features to consider when choosing an accounting software
Which accounting software to choose for your small business could depend on your unique needs. For some business owners, a simple accounting software solution may be sufficient. However, a variety of products on the market offer more complex features including inventory management, time tracking, and payroll tools. When selecting an accounting software, think about your business ‘must haves’ and program offerings such as:
- Simplicity
- Customization abilities
- Integration capabilities
- The ability to scale
- Ample security for sensitive data and information
Accounting software tools for small business owners
Here are some of the more popular accounting software tools for small business owners:
QuickBooks Online ™
QuickBooks online features a robust array of features and strong scalability. They boast strong customer support in addition to 750 app integrations, including record-keeping, comprehensive reporting, excellent invoicing, and inventory management. Take your accounting on the go with their mobile app or use their granular transaction tracking tools to measure your business’s performance in certain sectors. Plans start at $35 per month for the Simple Start and go to $235 a month for the Advanced.
Xero
Xero is known for its ease of use and affordable pricing system. Users are fond of its excellent reporting abilities, customizable dashboard, and capable mobile app. Xero also allows unlimited users for all plans and features automated bill and receipt capture through Hubdoc. Users can also be assigned different permission levels within the program. Plans start at $15 per month for the Early plan and go to $78 per month for the Established.
FreshBooks
FreshBooks’ invoicing features and client management resources make it an attractive choice for freelancers. Geared toward small businesses that handle 50 or fewer clients, FreshBooks allows clients to create their accounts and save payment information. Furthermore, all FreshBooks plans include unlimited time tracking, mobile app readiness, and customizable invoicing capabilities. Plans start at $19 per month for the Lite plan and go to $60 per month for the Premium.
Zoho Books
Some business owners may already be familiar with Zoho’s business software. Zoho Books’ accounting software can be easily integrated and includes useful apps and features, such as CRM, customer service, and inventory management. In addition to standard bookkeeping, Zoho Books offers document management, multi-currency options, and live customer support. With its depth of service and features, larger and growing businesses that need extensive customizability may want to consider this option. Plans range from free to $60 a month for the Premium.
Wave
Wave offers a simple, efficient bookkeeping program that may appeal to smaller businesses who want to consolidate records but only have a handful of transactions. Wave’s program lets you track income and expenses as well as send unlimited invoices. You also have access to over a dozen pre-built financial reports, including a profit and loss statement and balance sheet. It’s a budget friendly option as plans range from free to $16 per month for the Pro plan.
Sage Business Cloud Accounting
On the more expensive end is Sage Business Cloud Accounting which boasts an array of inventory management and job costing features. Coupled with cybersecurity offerings and the ability to monitor for data breaches, Sage is a great option for any business owner. Another benefit of Sage is their cloud-connected capabilities which allow for the software to aid in the reconciliation process, data backups, and even remote data access. Plans range from $58.92 per month, for 1 user, for the Pro Accounting plan to $172 per month, for the Quantum Accounting plan.
Kashoo
This software allows an unlimited number of users which is useful for growing businesses. At its most basic (and free) level, it allows businesses to send invoices and track and receive payments. Their more advanced plans incorporate detailed reporting, project cost tracking, customization options, and the opportunity to collaborate with an accountant or bookkeeper. Kashoo is also fully encrypted and allows you to connect with more than 5,000 banks and credit unions to carry out several transactions using multiple currencies. Plans range from free for the truly small invoices to $27 a month for Kashoo, paid annually.
NetSuite
If your business is growing and you want the flexibility to scale without the stress of new infrastructure and personnel, NetSuite could be a good option. This software offers several modules and customization tools, allowing you to manage inventory, taxes, and accounting. In addition, you can take advantage of built-in reporting tools and modules such as payroll, HR, performance management SuiteCommerce, demand planning, and contract renewals. NetSuite does not post plan prices and asks that you schedule a consultation for pricing.
OneUp
OneUp could be a good option for businesses with international scope. This software is a SaaS solution that features an array of price plans for everyone from a solo entrepreneur to businesses in growth mode. Users will appreciate its mobile app and tools for bookkeeping, reporting, forecasting, and invoicing. OneUp is also capable of offering pre-integrated banking connections in 50 countries. A notable feature is its AI-driven ability to categorize transactions automatically for accurate bookkeeping. Plans range from $9/month for the Self plan to $169/month for the Unlimited.
Choosing the right accounting software for your business
Before you select accounting software for your fledgling startup or solo business venture, take a moment to assess your business’s needs, budget, and expected growth. If your business handles sensitive data, you may want to opt for a tool that features encryption. Or, if you are unfamiliar with accounting, you may want to prioritize software plans that include customer service. Don’t be afraid to take advantage of free software trials and read as many reviews and testimonials as possible.
Ready to trade in your pen and paper for AI-driven bookkeeping, or are you interested in exploring the latest additions to accounting software? Remember, there’s never an inopportune time to consider all your business options and plan for a more efficient and streamlined future.
At IIA, we want your business to succeed and help you protect it. That’s why we are offering you some helpful tools and information that you can leverage and recommend that you continuously evaluate your commercial auto or other commercial insurance options.
Discover our commercial coverage options or receive a free estimate today when you contact our qualified team at 1-855-478-3705.