Entrepreneurs are do-it-all-yourself kind of people at the beginning. This has led to the death of numerous amazing ideas as they run out of cash or eat away into their capital while thinking that it is profit. However, 2019 has ranked accounting as the most crucial area for automation in business, ahead of marketing, sales, and customer care. Business Bookkeeping Software, therefore, helps you to blend your do-it-all-yourself character with the need for automation to create efficiency.
Accounting software helps you to capture crucial data at different points of sale, analyze it, and generate reports that will aid in decision making. Even the youngest business that started operations today will require software to maintain accurate and comprehensive records of financial transactions. The records are crucial for regulatory purposes and to aid during taxation, among other instances.
Does Bookkeeping Really Headache?
Many entrepreneurs will claim not to be math-person. The requirement to sit for 30 minutes at the end of a tiring day to balance your accounts makes the situation worse. The scenario explains why a lot of businesses will operate for months without balance sheets or necessary statements.
The complexity of your operations will also make it difficult to monitor performance on different fronts. You may be dealing with multiple suppliers, selling different types of goods, offering a variety of services, and combining all the monies in a single business account. The mixture of business operations leaves your accounts in shambles. It becomes expensive to hire an in-house accountant to handle your books while your operations are still young.
The solution is to embrace automated accounting solutions. The solutions involve the installation of bookkeeping software to facilitate the capturing of information and generation of necessary accounting information. Some of the applications are available on the cloud, enabling you to enter and access data about your business operations anywhere and at any time.
Role of Bookkeeping in Business
Failure to record your financial transactions is the first step towards failure in a business. It is the reason why Virtual Bookkeeping Services is so important for your business to monitor financial performance as well as comply with regulatory requirements. Here are the reasons why you need proper and comprehensive bookkeeping for your business.
- Improve your financial management – proper bookkeeping helps you to keep track of your financial transactions. You can see the amounts coming into your accounts and how much you are giving away. Such information enables you to keep a healthy cash flow as well as monitor your equity position.
- Meet regulatory requirements – companies with shareholders are required to file financial reports each year. The reports must capture your liquidity position alongside shareholding. Taxation authorities will also rely on the records to ascertain whether you have met the requirements. Without records, you might pay less and be penalized or pay more to the point of hurting your liquidity.
- Ease Taxation – proper financial records will make taxation easier for a business. You can monitor your sales, profits, and losses so that your tax filing will be accurate. In case a dispute arises with taxation authorities, you have the records to justify your position.
- Prudent decision making for your business – the decision to invest, expand, scale-down, or make any spending should be based on your financial position. Records of accounts justify your decisions. They also help you to avoid decisions that would lead to losses.
- Provide a clear picture of your financial health – business owners, managers, and regulators want to monitor the health of business regularly. They rely on information provided in the books of accounts. In case you need to sell a business or invite investors, the value of a business will be determined by figures on your books.
Bookkeeping plays an irreplaceable role in the growth, health, and relationships of a business. It must achieve the highest level of accuracy. You also need comprehensive records to maintain the tract of performance from all angles. QuickBooks Bookkeeping Services helps you to automate accounting and record-keeping to enhance the operations of your business. Here is the best accounting software in 2020.
List of The Best Bookkeeping Software For 2020
It is one of the most comprehensive accounting software you will find in the market. It works on Windows, Mac, and other computerized devices. It is now available on the cloud to enhance virtual accounting. It allows you to choose features so that you can accommodate your start-up or complex business model. It comes with numerous tutorials and videos as support. It is a subscription service that allows you to scale up or down with a budget of as low as $5 per month. If you are looking for Quickbooks Bookkeeping Services near you, our Quickbooks expert can help you.
Wave is free yet offers some of the features that other applications will charge you for. You have a central place to track all your business and personal finances. Since it is free, it does not offer in-depth features. However, it will meet your basic accounting needs like bookkeeping and generation of financial statements.
The software is designed for small businesses that do not have to deal with too many employees, complex inventory, and heavy accounting. Zoho Books is designed for small businesses with its dash-board format, easy to understand mode and straightforward usability. You do not need an accounting course to use Zoho Books. The prices range from $9 to 29$ a month.
Xero is futuristic accounting software that will take you to the cloud before using it on desktop. It is preferred for its cloud availability which means that you can do your accounting anywhere. You are also provided with 24/7 support alongside excellent integration capability. You can tag your entries to track expenditure on specific projects. A starter version costs 9$ with the premium subscription going for $180 per month.
5. Sage 50
Sage 50 wins because of its ability to customize to meet your needs. It is exceptionally sophisticated and will help you to generate comprehensive financial statements. It also allows you to attach details of associates, businesses, and partners for easier management. You will buy a subscription that will help you meet your demands.
Reckon is designed for small businesses with its simplistic dashboard and excellent user support. To begin with, you can enjoy 30 days trial version to help you make a decision. It allows you to track time, prepare payrolls, reconcile with your bank accounts, and send invoices as well as bills, among other functions. It is affordable and scalable to allow you to grow your records as the business expands.
NetSuite pays special attention to the accounting needs of businesses. It helps you to achieve accuracy and confidence in your financial reporting through user-friendly features. You have templates for different accounts to make your work easier. It integrates with add-ons to provide a comprehensive accounting solution. It will also help you with tax management at the most affordable price.
8. SAP Business One
The software is designed to provide a one-stop-shop for accounting. It will streamline your accounting without requiring you to possess advanced skills. The software is scalable to accommodate your growing needs without requiring the transfer of information. It is quick to deploy and has integrated artificial intelligence to make your searches easier.
Everest automates your accounting processes to achieve the highest level of efficiency. It will also enable you to generate comprehensive and multiple reports that will aid in decision making. With integration capabilities, Everest makes your financial management easier. You enjoy round-the-clock support for your operations.
10. Zip Books
Zip Books is free and designed specifically for small businesses, contractors, and accountants. It will help you with time tracking, invoicing, and management of virtual payments like credit cards and PayPal. The reports generated are easy to use and meet the industry-best practice standards. It comes with smart recommendations and supports to make the decision easier and beneficial. Despite the software being free, it offers an incredibly rich set of features.
The appropriateness of software will depend on your nature of operations. Some are designed for complex business structures while others will serve small businesses. Bookkeeping Software 2020 and others in the market come at a price. While the price should be a consideration, you must choose features that will help you achieve the accounting needs of your business. Reviews of accounting software will help you make the best decision for your business or personal accounting needs.
If you are looking for a smart automated solution for your accounting, then above mentioned bookkeeping software can become useful. And/OR, if you are already using one and want your data to move to other then you can take expert help of business data migration.