I’m going to go-out on a limb and saying that accounting is your least favorite task as a small business owner. Am I wrong? Accounting can be time-consuming and frustrating if you hate it, or you’re not good with numbers. Thankfully, there are plenty of cloud-based accounting tools that make this task less tedious, and, dare I say, fun? To get you started, here are the best accounting tools for 2020 that will make accounting less of a headache. Plus, these best accounting tools will also save you a ton of time and money.
When it comes to invoicing and time tracking, Due is one of the best options for freelancers and small business owners. You can create customized invoices in a matter of minutes and then get paid by credit credit, cryptocurrencies, and ACH transfers — providing a way to get paid instantly.
You can also schedule recurring payments, set-up automated payment reminders, and accurately track the hours you spend on a project. Due also allows you to monitor your cash flow, expenses, tasks, and projects.
Due also integrates with Basecamp, PayPal, and Stripe. You can’t beat the price; it’s free forever.
Integrity Invoice is a UK company but serves freelancers and entrepreneurs in many parts of the world, including the United States. It works in multiple currencies to provide a global solution for those small business owners that are seeking to work with clients in various corners of the globe.
Started by a freelancer, the invoicing and accounting company offers simple bookkeeping features. The tools can be accessed by Web or mobile device, including tools that track sales and expenses that are later presented as various financial statements that help with taxes and financial planning. The basic accounting software also provides a way to accept online payments like debit and credit cards as well as PayPal.
The Starter plan is free and includes the ability to send 10 invoices and quotes as well as include 10 expenses each month for a single user with two clients. The Premium plan offers unlimited invoices, quotes, and expenses for a single user with up to 100 clients. This plan level also provides access to a P&L report and the ability to accept online payments. The Super Premium plan includes multiple users and unlimited clients as well as all of the other features from the Premium plan. The prices are listed in pound sterling but can be offered in other currencies by contacting the company.
Intuit Quickbooks has been the go-to-accounting program for small businesses since the early 90s. However, for businesses looking for value there’s Quickbooks Online. Owners have three plans to select from; Simple Start at $10 a month, Essentials version for $21 a month, and QuickBooks Plus at $28 a month. Payroll is an add-on feature for $39 a month.
With Quickbooks Online you can handle tasks like payment processing, time tracking, payroll, payment processing, POS, and inventory management. It also integrates with a number of popular business apps like Zoho, Salesforce, Basecamp, and Shopify.
Wave was designed specifically for small businesses. It handles everything from invoicing, payroll, payment processing, expense tracking, and receipt scanning. Wave integrates seamlessly with platforms like Paypal, Stripe, Etsy, and Shoeboxed and it’s incredibly easy-to-use, even if you’re not familiar with accounting. If you do need to find an accountant, Wave can connect you with recommended accountants in your area.
Best of all? Wave is free, but there is also a premium plan for just $9 a month.
For smaller service-based businesses and freelancers, FreshBooks is one of the top cloud-based accounting platforms. FreshBooks claim to fame is it’s invoicing features. It let you generate professional invoices in just seconds. And, if you’re new to electronic invoicing, FreshBooks can instruct you in how to create an invoice in just a few minutes. Other invoicing features include automated reminders and ability to set-up recurring invoicing.
With FreshBooks you can accept credit cards, track your billable hours, and expenses. What makes FreshBooks really stand-out though is its award-winning customers support. FreshBooks has three plans, including Lite for $15/month, Plus for $25/month, and Premium for $50.
When founded in 2006, Xero dubbed itself as the online alternative to QuickBooks. It features an elegant, easy-to-use interface and comes equipped with invoicing, payroll, payment processing, expense tracking, time tracking, and inventory control. It also integrates with third-party apps like Salesforce, Base CRM, Shopify, and Rightsignature.
Xero’s basic plan starts at $9 per month followed by Standard ($30) and Premium ($70). However, the first six months would be $6.30, $21, and $49.
7. Zoho Books
Zoho Books is another cloud-based platform that has a clean layout and clutter-free dashboard. Here, you can create invoices, track expenses, capture customer feedback, track your time, and keep tabs of your inventory.
As one of the best accounting tools, it also provides accounting reports such P&L, Balance Sheet, and Cash Flow Statement. Since Zoho connects with popular online payment gateways, like PayPal, Stripe, 2Checkout, Authorize.net, Square, and Worldpay, you’ll get paid faster. Other integrations include Slack, Dropbox, Google Docs, and Tax1099.com.
The Basic plan starts at $9 per month as well as $19 and $29 monthly plans.
The Bottom Line
If you want to save money, and reduce the amount of papers occupying your desk and office, then these best accounting tools are the way-to-go. However, if you’re looking for accounting tools that are specific to your industry, you may have to look for traditional accounting software. If you’re stuck, consult an accountant to steer you in the right direction.
Even after meeting with a professional, consider the price, features, and ease-of-use of the tool. Don’t be afraid to test drive the tool since most of them offer free trials. So, it’s not going to hurt to try out a couple of options until you find the best accounting tools that fit your business needs.