The Best Business Accounting Software for 2024
Choosing the Right Accounting Service
If you run a small business or are a freelancer, then keeping a tight grip on finances is critical for success. Our reviews cover the best small business accounting tools to help keep your company in the black.
Before we explore what your accounting program should do, it is important to define what we mean when we are discussing accounting software programs. An accounting program allows businesses to automate, streamline, and create more efficient financial management processes. You can use accounting software to make sure your books are accurate. You can reduce the time it takes to collect information, reduce the number of mistakes you make, and make it easier for you to make decisions regarding the future of your company. You can handle invoicing processes, reconciliation, accounts payable, and accounts receivable.
It is important for you to understand what an accounting program does so you can figure out how to find the best program to meet your needs. What should you expect all accounting software programs to do?
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- Overview
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- Price
- Customer Service Ranking
- Accounting Standard Features
- Reporting
- Integrations
- Platforms
What is accounting software?
What Are the Basic Features?
There are several features that every accounting software program should be able to do. A few examples include:
Basic Math
Of course, you should expect every accounting program to be able to do basic math. This means you should be able to create a ledger, chart various accounts, create invoices, and reconcile your accounts payable and accounts receivable. You should also expect your accounting program to be able to generate basic financial reports.
Furthermore, a basic accounting program should help you track a financial loss. If your business operates in multiple states, there are different regulations you have to follow. An accounting program should help you handle that. Your accounting program should also be able to handle sales tax differences from state to state and industry to industry.
Payroll and Time
Your basic accounting software program should also be able to handle payroll and time tracking. If you have employees who need to be paid, and you need to make sure you can pay them on time. You also need to differentiate between employees and contractors, as these have different tax and withholding obligations.
The vast majority of accounting programs should also include time tracking software. If you have employees who are paid by the hour, you need to be able to track how many hours they work. That way, you can pay them accordingly. Your accounting program should be able to handle overtime, shift differential, and bonuses. If you charge clients by the hour, you should have an accounting program that can track your hours as well.
Expense Tracking
A basic accounting software program should be able to handle expense tracking. For example, your employees may turn in expense reports that need to be reimbursed. This could include business equipment, gas, airplane tickets, and hotel rooms. An accounting software program should be able to keep track of employee expenditures.
You need to make sure your accounting program has all of these features. Otherwise, there are going to be significant areas that are lacking. At the same time, there are advanced features you might be looking for in your accounting program as well.
What Else Should You Look For?
As your business grows, you may be looking for other features as well. These include:
Integrations
You should find an accounting software program that can integrate with your existing solutions. You probably have important information scattered across multiple programs. You need an accounting program that can take that information, compile it in one place, and allow you to make decisions quickly. This can help you save a significant amount of time.
Tax Codes
Your accounting program should also keep up with various tax codes. This is particularly important if you are doing business in multiple states or countries. You need to comply with all regulations to reduce your regulatory risk. Your accounting software program should help you stay in compliance.
Automation
You may want to find an accounting program that has access to automation technology. Automation technology refers to processes that can expedite a lot of the tasks that your employees do by hand. If you do not need your employees to do clerical work, they can be freed up to focus on more important areas of the business. You might even find a program that has customizable automation features.
Cloud Technology
You may want to use an accounting program that gives you access to Cloud technology. This is particularly important if you have employees who work remotely. That way, they can still access the documents they need to do their jobs by using the cloud. You should make sure a cloud accounting program has the right security features to protect confidential information from harm.
These are just a few of the advanced features you might be looking for in your accounting program.
Why should You Use Accounting Programs?
There are several benefits that come with using an accounting program. A few examples include:
- Save Time: An accounting program can help you save a significant amount of time. Instead of having to generate reports by hand, you can ask the computer program to do this for you. That way, you can make decisions faster.
- Reduce Mistakes: Even though you may have been doing things by hand for many years, there is always a chance you can make mistakes. A computer program can help you avoid making silly mistakes that would otherwise carry through other areas of the business.
- Reduce Regulatory Risk: An accounting program can also help you reduce regulatory risk. Your software program will keep up with the latest rules and regulations in your industry. Your program might even be able to point out a few red flags that could make it more likely for you to get audited by the IRS.
- Save Money: Furthermore, an accounting program can save a significant amount of money. You may not have to pay people to do a lot of these tasks because the computer program will do them for you. In addition, if you can present an organized table to your accountant, it may not cost you as much money to do your taxes at the end of the year.
Make sure you find the right accounting program that will help you maximize these benefits.
Maximize Your Accounting Software Programs
Ultimately, this is a brief overview of accounting software. This is an area that has grown significantly during the past few years. As a result, there are plenty of options available. It can be difficult to sort through the various options and find the one that works best for you. That is why you should reach out to a professional if you have any questions or concerns about your accounting program. This is not something you have to go through on your own, so take the time to evaluate all your options and find the right program to meet your needs.
If you are looking for a way to save time and money, you may want to take advantage of small business accounting software. Bookkeeping software can make it easier for you to keep track of your numbers, allowing you to make accurate financial projections regarding your company. Even though you may be used to doing all of this information by hand, bookkeeper software can help you save time while reducing mistakes. What are a few of the top benefits of using accounting programs? Take a look at the list below, and consider using accounting software to help you run your company and streamline your operations.
Bookkeeper Software Saves Time
One of the first benefits of using bookkeeper software is that it can help you save time. It is true that it may take you a little while to learn how to maximize the features of the program; however, after you go through the training process, you can save several hours every week. Instead of asking your employees to keep track of their books by hand, the accounting program will do this automatically.
If you are tired of downloading CSV files from your bank accounts and credit cards, an accounting program can do this for you. You don’t have to manually enter the data, as you can use an accounting software program that will pull all of this data from the program into a convenient spreadsheet for you. That way, you can spend more time focusing on what the numbers mean instead of manually entering the numbers into the program.
Accounting Programs Can Generate Financial Reports Instantly
Speaking of generating spreadsheets, most accounting programs can instantly generate a wide variety of financial reports. For example, if you are looking for a P&L statement, an accounting program can do this for you. If you want to generate your balance sheet faster, your accounting program should be able to do this for you as well. If you are interested in compiling key insights from your cash flow statement, such as your expenses for the year, an accounting software program should be able to do this automatically.
There are even some programs that can help you generate custom reports. You can compile the data, include extra details, and save time because the program can do all of this for you. This will make it easier for you to decide what to do next with your company.
You Can Sync Your Financial Data
A lot of businesses have trouble keeping up with their financial information because it is scattered across multiple programs. A strong accounting program should be able to put all of this information in the same place for you. That way, you don’t have to worry about switching between programs to find the information you need. Look for an accounting software program that provides you with access to numerous integrations. There is a good chance that your accounting software program will integrate with some of the other programs you use. This makes it easier for you to create an accurate picture of the financial health of your business.
Your Employees Can Work from Anywhere with a Cloud Program
Now, there are a lot of software programs that take advantage of the cloud. You may have a lot of talented employees who work from home. If that is the case, they still need to be able to access the accounting program even if they are not physically in the building.
With access to the cloud, all anyone has to do is log into the cloud to access confidential information. Of course, you need to find a cloud-based accounting software program with the right security protocols. At the same time, a cloud-based program makes it easier for you to keep up with your work. In addition, cloud programs do not require as much maintenance. If you need to change the features you used, all you have to do is alter your subscription. This makes it easier for you to control your overhead expenses while giving your employees access to the tools they need to do their jobs.
Bookkeeping Software Reduces Your Mistakes
Accurate data is important. If you don’t have access to the right information, you will have trouble making the right decision for your company. If you use an accounting software program, you don’t have to worry about typing countless values into multiple cells on a spreadsheet. The more numbers you type, the more likely it is you will make a mistake.
An accounting program can do all of this for you automatically, helping you generate financial statements that are accurate every time. If you make changes in one area, all the other values will be updated to reflect new information. You need to keep your data accurate because this is the only way you can make the right move for your business.
You Make a Professional Impression
If you want to grow your business, you are probably busy trying to construct a business deal. If you want the deal to go through, you need to make a professional impression. If you show someone a 3-ring binder with a lot of information that has been written down with a pen, this is not going to make a good impression.
There is never a second chance to make a first impression, so you need to make that impression count. If you can generate professional financial statements with clean lines, printed text, and branded company logos, you will have an easier time convincing someone that you are the right person for that business deal. If you want to make a professional impression on potential business partners, use an accounting software program.
Accounting Software Reduces Your Regulatory Risk
Finally, using an accounting software program also reduces your regulatory risk. You need to keep up with all payroll compliance measures, and an accounting software program can help you do that. You can automatically collect the information you need, submit it online, and protect your company for tomorrow.
Furthermore, a lot of accounting programs can help you avoid red flags that could get your company audited. In the event your business does get audited, an accounting program makes it easier for you to produce the records you need to back up your information. This can further reduce your chances of getting hit with fines and sanctions from the IRS. Ultimately, the right accounting software program can provide a critical level of protection for your business.
Maximize the Benefits of Accounting Software
Clearly, there are numerous benefits you will enjoy if you decide to use accounting software. At the same time, there are lots of programs from which to choose, so you need to find the best one to help your company grow. Software packages come in all shapes and forms, and you can find one that is under your budget while still providing the features you need. If you are having a difficult time evaluating your software program option, consider reaching out to a professional who can help you sort through the features. That way, you end up with an accounting software program that will help your company not only today but in the future as well.