The only reason you’re here, at least by the odds anyways, is because you intend on using leveraging reasons to use accounting software to convince yourself it’s time to kick your financial game up a few notches. Good for you! These days startups “live and die” by their accounting software. That said, let’s dive right in, then at the end we’ll give you three options to consider.
Does every single startup that uses accounting software see massive improvements? No. The effectiveness of the software depends on who is using it. But, odds are dramatically in your favor that the tools will help you manage your resources in a much more efficient way.
Traditional accounting puts all the responsibility on the business owner – you have to take note of all your bills, transactions and other financial obligations. However, if you use accounting software, there’s nothing that you need to do than to wait for notifications (email/text) reminding you of your incoming bills and payments.
Automatically track, record, present, chart, graph, forecast, and on and on. Once you set up and customize your software, tons of automation kicks in and it’s a beautiful thing unless you love crunching numbers.
You can log your hours through the accounting software, send branded invoices tailored to the specific clients, and completely track outbound cash flow so a complete picture is always at your fingertips.
These days it’s a cake walk to sync your business bank accounts and debit/credit cards (compliments automation) along with many other helpful and functional third-party applications.
Meaning you can access your data anywhere, anytime, and on any device or gadget with an internet connection.
We’re huge fans and cheerleaders of professional business planning, and the many types of financial statements or components that go along with it. Accounting software really comes in handy here. We ourselves use Xero and LivePlan which together are a powerful mix.
So let’s say you’re either interested in discovering modern accounting software or you’re ready to update the software you already use. Great! Below are our top three recommendations.
As mentioned, we use Xero ourselves. User-friendly, intuitive, well-made, and downright affordable we adore it.
Practical features include bank reconciliation, inventory management, payroll and built-in times sheets. Also has basic tools like the invoicing and time-tracking tools. But that’s only the beginning.
QuickBooks is the most experienced (15 years and counting), longstanding and popular accounting software in the market. The one big drawback is the level of complexity which can be rough for some newcomers.
Some popular features include their style of automated financial reports, collaboration features, multiple-user interface and free upgrades of your accounting plan.
FreshBooks is another best in the industry – modern, affrordable and comprehensive, trusted by over 5 million entrepreneurs.
FreshBooks has all the right tools for you including a payment history tool, fast billing, daily dashboard and a mobile application. It also has invoicing, time tracking and expense tracking features just to get you started.