What is Business Accounting?
Business accounting is the method of keeping a record, examining, and interpreting information and financial transactions. It makes the job of a bookkeeper easy. In terms of a small business or a startup, one can actually invest in accounting software instead of hiring a bookkeeper. Keeping track of all the business records can prove to be quite a task but with software that does all from tracking accounts receivable to accounts payable and also creates a clear report of the profitability, it is a boon for small business owners. An Enterprise Resource Planning (ERP) is of the utmost importance as soon as a business starts growing due to the growing complex accounting needs.
Perks of using Business Accounting apps:
- Automating tasks: Manually performing the tasks of updating the data can be tedious and time taking and there is always the possibility of error when doing manually. With a Business accounting system, you only enter the data once and the system keeps the data ready for you to use and extract when you need them.
- Abridging taxes: Keeping track of all the incoming and outgoing payments with the other loopholes is impossible to be performed with zero error when done manually. Accounting software makes it easy for you by sorting and accumulating all the data that you need at that time of the year. With this software, a return report is already prepared automatically so that one can file returns without any hassle.
- Accessibility: With accounting software, you can fetch any given data at any given time. There is simply no need for you to dig deep into your files to fin the data, it is just a click away with this software.
- Preventing Data Loss: A piece of data can definitely disappear into the black hole never to be found again, but with accounting software, anything of that sort happening to you is of lesser possibility.
Key Features:
- Invoicing process: The basic prerequisite of all business is the ability to produce an invoice to keep a record of which client owes the business how much and what amount is pending to be collected. However, some basic add-on like a reminder for payments to be collected automated invoices, etc., are day a win-win.
- Reporting: Accounting software is able to provide you with a ready-to-view report at any given point with the data that it gathers from you on a daily basis.
- Online Payments: With the world completely shifting online we are required to move our businesses online as well. Accounting software that accommodates online payments will make your job quite easier as it will keep track of all the incoming payments automatically.
- Accounts payable: This software can benefit you sort the unsettled side of your business by offering additional features like bills, purchase orders, and other such features.
- Banking: Each accounting software comes with a basic linking method of the software to your bank so that you can import your banking statements. Some software is smarter than the rest and offers additional features like bank feeds, banking reconciliation, and much more.
Top 3 Accounting Software for Small Business of 2021
1. QuickBooks Online: Developed and marketed by Intuit, QuickBooks Online is accounting software that is considered the best overall. A bulk number of small businesses and accounting professionals use this software for their day-to-day accounting needs. One central dashboard covers all the features making the task of bookkeeping a piece of cake. And is very efficient.
You also get a 30-day free trial with this application and once you subscribe to be its paid member you can always upgrade as and when your business grows and so does your business needs. You can also get payroll services integrated with this app. This is the one-stop solution for all your accounting needs.
2. Xero: A New Zealand-founded company, Xero is a public technology establishment that provides a cloud-based accounting software platform for small and medium businesses with a very easy-to-operate interface. It is said to be the best alternative to Sage for macro-businesses whose accounting needs are very minimal. It was actually founded in 2006 in New Zealand but now has users of more than 2.5 million worldwide. It also has a very huge workforce engaging in making the company very successful and creating a use-worthy experience for the users. It has integration with Stripe and GoCardless which allows the users of Xero to collect payment online.
3. QuickBooks Self Employed: A package of accounting software that is developed and marketed by Intuit, QuickBook Self Employed is the best option around for freelancers and part-time job workers. When it comes to individual contract workers, they would mostly use an accounting app to record their expenses and income to file their taxes and QuickBooks exactly does that for them. It was originally founded to help freelancers stay organized with their taxes as QuickBooks simply will fetch all the transactions they performed the whole year after they have linked their bank account and credit card with the app.
The app also tracks your driving expenses and captures mileage while driving in order to keep a track of your driving expenses.
