Best Accounting Software For Entrepreneurs and Financial Tips For Your Business

Best Accounting Software For Entrepreneurs

Best Accounting Software For Entrepreneurs

Entrepreneurs fail when they don’t understand the concept of money. If you want to run a successful business, make sure your first investment is the best accounting software for entrepreneurs.

Whether you are just starting up, expanding your business or have been in business for years, you must maintain well-organized financial records. If you aren’t mindful of your profits or losses, your business has a good chance of failing.

Why is Record Keeping & Accounting important for Entrepreneurs?

Record keeping can be an overwhelming task, especially if you wait until the end of the year. Like it or not, if you want to be a successful entrepreneur, you must set aside time to manage your business finances and keep track with your records.

Is your business making money or not?

Your sales may be skyrocketing, but are you making more than you spend? Efficient record keeping is the only way to know. You may be selling you products for more than their purchase price, but if you haven’t calculated your overhead expenses in to that total, you may be losing money and not even know it.

Be Organized For Your Accountant

Unorganized records will cost you.

If your accountant or tax preparer has to waste their time sorting through your records during tax time, they are going to charge you for it.

 

  • Tip : Set aside 30-40% of all your income for taxes. Don’t leave yourself stressed at the end of the year because you owe a lot of unexpected taxes.

 

Organize your receipts and use accounting software to learn more about possible deductions you may be entitled to.

 

  • Tip : Keep detailed notes with each receipt so you know why you are keeping it. (Circle expenses. Write “mileage” on the receipt if it qualifies).

 

Don’t be caught off guard with taxes owed.

Does Every Business Owner Need To Use Accounting Software?

No, you can hand write all your records on paper at first. Should you use an Accounting Software? Yes.

When your business begins to grow, as should be your goal, you will need to use some sort of accounting software to keep you organized.

For roughly $15 a month, most accounting software enables you to email professional invoices to your customers, file receipts with your phone’s camera and track mileage through your GPS. The technology is so helpful that it is crazy not to use it.

Start with a software capable enough to grow with your business as it grows.

Based on the accounting I have done for my own small businesses over years, I believe QuickBooks is the way to go.

No matter which accounting software you decide to purchase, take the time to learn it. Watch tutorial videos on YouTube and learn ALL the features it has to offer.

Best Accounting Software For Entrepreneurs

There are many types of accounting software. Some are free, some cost money, some are simple to use and some are very advanced.

Don’t be afraid to spend money on accounting software. This is going to be one of the most important investments you make in your business.

For the most part, today’s accounting software offers the same basic services, such as:

  • Syncs to your bank accounts to eliminate manual data entry. These programs all keep track of money coming in and going out in different categories.
  • Creates and sends professional looking invoices to your clients, allowing them to pay through many payment options.
  • Snaps a photo of receipts to record expenses right when they happen.
  • Tracks your bills and expenses in categories: Shows which bills have been paid or are due, set up recurring payments and organize them by category.
  • Set up custom user access for employees and accountants to log in and see only what you want them to see.

 

QuickBooks Online

Every software is going to have a learning curve, but I found QuickBooks to be the best accounting software for business owners and entrepreneurs because of its features, customers service and user-friendly interface.

 

QuickBooks Online

Pros:        

  • Pricing: QuickBooks is in the mid-range pricing for accounting software programs. They offer several different plans to accommodate the needs of your business and can be upgraded as your business grows.
  • Highest Rated and best performing mobile apps
  • Print checks and use ACH payment processing.
  • Taxes:
    • Syncs with TurboTax
    • Keeps track and updates all tax laws that may apply to your business.
    • Mileage Deductions are automatically calculated using your GPS (not yet available for employees)


Tip:
If you start with the self-employed plan, you will not be able to upgrade to a small business plan. So if you intend on hiring employees, you need to start with the small business plans.

Limitations:

  • Extra-large companies will run in to limits such as the amount of users who can access your records.
  • QuickBooks offers payroll services but they are VERY expensive.
  • No project management features.
  • Web-hosted: will only work online.
  • And a personal annoyance of mine, no automatic recurring billing where the customer inputs their credit card or ACH information to pay for the invoice. It does however, have a limited auto recurring billing where I, the owner, charges their card only after a written permission signature from them, where I have to initiate payment every recurring time frame which is available on an upper priced plan! On the upside, QuickBooks offers vast number of apps that can offer this limiting factor from QuickBooks.

Xero

Xero

Pros

  • Pricing: Higher priced than others. Several plans area available and can be upgraded as your business grows.
  • Small account limits: 5 invoices and 20 transactions
  • I found Xero’s interface fairly hard to learn and navigation of submenus was confusing, but their customer service did an excellent job walking me through the process.
  • Xero has an amazing ability to customize your invoices.

Limitations

  • Hard to use interface
  • Customer service has been reported as “non-existent” by many reviewers.
  • The company is still working out several software glitches

 

FreshBooks

Freshbooks

FreshBooks comes in second for the best accounting software for entrepreneurs. It is incredibly easy to setup and has more customization options than the rest.

Pros

  • Pricing: FreshBooks is priced in the mid-range compared to other accounting software.
  • Easiest of all to setup as it provides an easy to use setup wizard
  • Multiple options to customize and configure the software
  • Clean interface with great mobile apps
  • Professional invoice templates
  • Automatic Invoicing with auto recurring billing upon the customer’s end! Something QuickBooks does not offer.

Limitations

  • No bank reconciliation features
  • Web-hosted: will only work online.
  • Limited Features

 

Wave

Wave

Pros

  • Pricing: Free program, but you should set high expectations for yourself and accept the fact that you will quickly grow out of this program
  • Provides the absolute basics necessary for accounting.
  • The software is lightweight an easy to navigate.

 

Limitations

  • Unsuitable for large businesses: will need to update as your business expands
  • Many reviewers use the terms “unreliable” “freezes” and “crashes”
  • Very limited features

 

Tips: Keep business and personal expenses separate. Set up a separate bank account for your business account. NOTE: it does not have to be a “business account” as titled by the bank, it can be a personal account, as long as it is a completely separate account from your personal account.

Conclusion

Successful entrepreneurs are focused, organized and have a clear vision of the future of their endeavors. Properly managing your business’s finances with the best accounting software for entrepreneurs will provide you with a much needed road map to success. Make your plan and stick to it, as it will not be an easy path at first.

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