The best accounting software at a glance

When it comes to business, keeping your finances in order is of utmost importance. This ensures that your invoices are sent out on time as well as being paid on time. You can also predict cash flow and have a record of your finances in case you ever go through a tax audit.

Luckily, accounting in this day and age is a lot easier than it used to be. Nowadays there is a huge array of accounting software and the great thing is that it caters to business owners rather than accountants so it’s a lot easier to understand and barely needs any familiarisation time. There are now cloud-based services, which allow you to monitor your business from anywhere on any device you’re connected to. Luckily most offer a free trial so you can try before you buy.

Accounting used to be done automatically, but now there have been so many technological advances that processes have now been automated and improved. Many can be integrated with other IT systems such as CRM software or e-commerce platforms to make tasks even easier.

Once you have an overview of the different types of accounting software available, it’s easier to decide which one is more suited to your business. Choosing the best financial management software depends on the size of your business and what it needs. The various types of software include:

Enterprise Accounting Software

This kind of software is designed for large businesses, financial companies, and banks. It can be thought of as an all-in-one system that is able to streamline time-consuming tasks. Its advanced features make light work of POS operations, customer relationship management, and comprehensive reporting. Since it comprises so many processes, it may require quite a bit of familiarisation time for employees. Examples include Odoo and QuickBooks Enterprise.

Many programs are available online and are accessible through the cloud. They are most popular among startups and small companies thanks to their flexibility and low price. Cloud solutions are easier to implement, but are less secure than other options since your data is processed in the cloud. This type of software enables you to access data on the go and easily share it with others. Examples include Xero, FreshBooks, and QuickBooks.

This kind of software appeals to small companies since it can be used to calculate bonuses, automate year-end reporting, and create pay slips. These programs can store your company’s financial data and provide forecasts. Some are so advanced that there’s no need for you to understand how taxes work. This option is often targeted by cyber criminals and has an increased risk of data loss and theft due to the simplicity.

These are ideal for startups and small companies since they come in a CD or DVD format, meaning it doesn’t matter if you have unreliable internet or no connection at all. They might be easy to install, but can’t be used remotely or even customised. You also cannot share data since it is saved on physical devices.

Also known as “COTS”, these programs are built and delivered via a third-party provider. They are mostly designed for specific industries and cannot be customised. Some programs are available online and can be accessed on the provider’s website. Although this software is mainly aimed at large businesses, freelancers and small companies can also make use of the basic accounting plans.

Every business is different and that is why there isn’t one type of accounting software to suit everyone. When considering which software to choose, keep these points in mind:

• Can the system calculate all payroll requirements (PAYE, annual leave, etc.)?
• Can the system track stock, orders, jobs, and anything else you might need?
• Can the system handle multiple bank accounts?
• Can the system work with other computer systems e.g. online payments?
• Can the system handle foreign currency if you need it to?
• Can the system keep records on customers including what they buy, how often, and when?

With so many different offers on the market, it can be quite daunting trying to choose the right bookkeeping software for your company. We’ve narrowed it down to the ten best options to make it a little easier for you to make your decision.

FreshBooks was founded in 2003 and has its headquarters in Ontario, Canada. It’s featured in Forbes, Bloomberg, The New York Times, and CNN. The great thing about FreshBooks is that it’s suitable for the self-employed as well as agencies and larger companies. Its features include invoices, expenses, time tracking, projects, payments, estimates, and reporting. You can try the software free for 30 days or jump right in and purchase one of the plans: Lite (around £12/month for 5 clients), Plus (around £20/month for 50 clients), or Premium (around £40/month for 500 clients).

The US company, Intuit, released QuickBooks Online, which offers four different packages: three for small businesses, and one for freelancers. Simple Start is £12/month, Essentials is £18/month, Plus is £27/month, and Self-Employed is £$8/month. The company regularly has a 50% off sale so their packages are often half price. There’s also a 30-day free trial option. With QuickBooks, you can track income and expenses, capture and organise receipts, invoice and accept payments, run basic reports, and lots more. So far, the software has over 5.6 million customers globally.

Xero is a New Zealand-based company, which offers cloud-based accounting software for freelancers, and small to medium-sized businesses. If you already use QuickBooks, it’s possible to convert these files to Xero if you prefer to use this software instead. The packages are Starter (£10/month), Standard (£22/month), and Premium (£27.50/month). These packages enable you to send invoices and quotes, enter bills, reconcile bank transactions, organise payroll (from Standard onwards), and work with multiple currencies (only available in the Premium version). You can also make use of the 30-day free trial.

The Sage Group is currently the UK’s second largest technology company and has an accounting software on the market: Sage Business Cloud Accounting. This accounting software for small businesses can help you improve your cash flow with invoices, payments, and expense tracking. By facilitating many processes such as admin and automating routine tasks, this means you have more time to concentrate on other aspects of your business. You can try out the software for 30 days free, or buy one of the packages: Accounting Start for £10/month or Accounting for £22/month.

Zoho Books with its US headquarters in California, provides accounting software for small businesses as well as medium-sized ones to help them grow and stay on top of their cash flow. After the 14-day free trial, you can choose from the Basic (around £7/month), Standard (around £15/month), or Professional (around £22/month) package, and if you buy the yearly plan, you get two months free! Even the cheapest plan includes bank reconciliation, custom invoices, projects and timesheets, expense tracking, sales approval, as well as recurring transactions.

Wave is a little bit different from the other options in that it doesn’t cost a penny. It’s been named the “Best free accounting software for businesses” by several different companies. This free accounting software has no hidden charges and has just as many features as the fee-based alternatives. Users can expect features such as bill and invoice reminders, instant updates for invoicing, payroll, and payments data, income and expense tracking, and many more. It’s also possible to run multiple businesses in one account and accept payments in foreign currency.

Kashoo was released in 2008 and claims to be “designed for business owners, not accountants” and uses easy-to-understand language to help you navigate the software more easily. The accounting software can handle your invoicing, expense tracking, and double-entry bookkeeping on your computer, iPhone, or iPad. The most popular package is around £13 per month, with the first 14 days being free. A money-back guarantee can encourage even the most skeptical of people to take the plunge. There’s also a “pay as you go” option, costing around £23 per month.

WorkingPoint’s mission is to “help small business owners establish, manage, and grow their companies by providing the best online business management systems, content and community”. The two plans, Lightning (around £7/month) and Thunderstorm (around £15/month) include double-entry bookkeeping, standard financial reports, payroll service, cash management, bills and expense tracking, and many more. The 30-day free trial can help you decide if this accounting software is for you. WorkingPoint has also formed strategic alliances with world famous companies such as PayPal, Dropbox, and Etsy in order to offer the best solutions and services.

Oregon-based company, Expensify, offers plans that are suitable for any type of company. There are the Track (£3.99/month) and Submit (£3.99/month) plan for individuals, and the Collect (£4/month) and the Control plan (£7/month) for groups. Both plans come with a 7-day free trial. They all offer unlimited expense reports and receipt uploads, personal reporting, the option to delegate tasks to others, as well as the ability to integrate the software with other accounting software. The popular solution boasts a “SmartScan” feature where the user simply takes a photo of a receipt and it can read information from it such as dates and prices.

Odoo is an all-in-one management software, founded in 2015 and suitable for freelancers and small, medium, and large-sized companies. You can pick and choose which apps you require for your business and the price will increase accordingly. The accounting app is around £19/month for one user, but you can first get to grips with it thanks to the 14-day free trial. With Odoo, you can schedule a demo so that your business processes can be audited and the needs of your company can be analysed. The timesaving tools include bank synchronisation, easy reconciliation, invoicing, and managing bills and expenses. You can integrate with other applications, saving you a lot of time doing it manually.