Bookkeeping is one of the most important challenges of running a small business. Consulting services may find that the generic accounting tools are inadequate at meeting their specific needs. These businesses require accurate time tracking, correct categorization of billable hours, and expense management.
Opting for accounting software tailored to professional services can help tackle this issue, leaving more time for you to focus on running your business. Accounting software for consultants offers relevant features such as project management, automation, expense tracking, and time tracking.
Finding the best accounting software for consultancy firms may seem like a daunting task, but we’ve narrowed down the best products to streamline your operations.
FreshBooks was founded in 2003 in Canada as an invoicing, billing and time tracking software, but over the past years it became a full-fledged online accounting solution ideal for sole proprietors and smaller businesses. With this neat cloud-based software, which underwent a thorough overhaul in 2016, you can easily and quickly create and customize invoices (whether using the desktop account or the Android/iPhone apps), record expenses, plan and realize projects, and track your time. You can integrate a decent amount of third party applications and services, and check reports FreshBooks automatically creates for you. You also have the option to enable fast online payments, set up recurring invoices, and even customize your account. Regardless of your chosen plan, almost all features remain available during and after the 30-day trial period. Furthermore, you also get unlimited customer support with your subscription, which can be as low as $15 per month. So if you need an accounting solution that includes all major functions and you work with a small number of clients and employees/contractors, then FreshBooks is your choice.
It is quite unbelievable that U.S.-based online accounting company Intuit Inc. has already been on the market since 1983. But the success of its main product, QuickBooks Online shows that they aren’t just simply lucky. The software exists as downloadable software for desktops, and a cloud-based accounting solution dubbed QuickBooks Online, which the company quite aggressively promotes. This latter version, of which we will be talking about, is ideal for everybody from simple sole-proprietors to bigger companies. Regardless of the chosen subscription, you can create invoices, expenses, and estimates with a few clicks, quickly manage sales receipts, create and print checks, payrolls, have multiple tax rates, real-time banking and reports. You can integrate the software with over 300 third-party solutions, and be entitled to full customer support. You also have the option to try out the software completely free of charge for 30 days. Skipping this trial period you get a discount from the monthly subscription fee for six months or a whole year. But if you don’t like the software, you still have a 60-day money back guarantee.
No company reaches the value of $1 billion by developing bad software. Zoho is the shining star of the digital business tools industry, offering over 50 business apps. Zoho Books is an excellent example of how online accounting software should operate.
Brimming with features and intuitively designed, Zoho Books is a great option for any business wanting to take its accounting processes to the next level. Even though it takes a while to get your head around the software due to the high number of features, tools, and reports, the platform is well worth the time investment.
Small businesses can take advantage of Zoho Books' free version to access all the basics. Meanwhile, companies that are ready to invest financially can get Zoho Books for as little as $15 per month and use the company’s 14-day free trial to try everything out before committing.
Xero is a progressive and innovative online accounting solution that enables you to manage your accounts more effectively and make your accounting hassle-free. Some of its features include invoicing and quotes, bank reconciliation, inventory, mobile capability, third-party apps, purchase orders and payroll. The mobile version of the software, Xero Touch, makes it possible to access all your accounting data instantly from wherever you may be. Xero integrates and works well with many other third-party applications (such as advanced solutions for CRM, point-of-sale, e-commerce and more). You have a choice of three pricing plans – Starter, Standard and Premium – all of which have slightly different features and a reduced price for the first six months. Xero also provides a 30-day free trial. Customers enjoy efficient and reliable support from Xero online teams. Xero’s US headquarters is in San Francisco, but this publicly listed company’s products are used in over 180 countries. The company has garnered impressive experience in the area of cloud computing and accounting and has continued to innovate and create new products for the market.
When it comes to online accounting solutions there is one company that is considered to be the alpha and omega of all things accounting: Sage, a company founded in 1981 in the UK. Despite its origins, the company’s best-known solution, Sage Business Cloud Accounting, is ideal for businesses based in the U.S. thanks to the fact that it is a powerhouse when it comes to accounting features. With this software on board, accounting becomes a much simpler experience – and not just because it covers all the needs of a striving business, like the easy creation of invoices, quotes and estimates, well-detailed summaries of the business’s performance and automatically created reports.
Sage Business Cloud Accounting also boasts an extremely intelligent inventory with real-time tracking, plus it saves newly created items to Google Drive without the need for any third party add-ons – which can still be applied if you want to further automate tasks. And if that’s not enough, Sage Business Cloud Accounting can be purchased for affordable prices or trialed for free for the first 30 days of use.
It’s important to make sure all your software is working for you instead of against you. Choosing accounting software aimed at professional services can simplify bookkeeping for consultants, so look out for the following specialized features:
As a business that handles multiple clients, it’s crucial that you can accurately track time for various projects. Some accounting software will offer integrations with time tracking software, while others will already include native time tracking.
In turn, this ensures accurate billing and streamlines the invoicing process. Swift expense tracking also contributes to a smooth billing experience for both consultants and clients.
It’s ideal to have advanced reporting to optimize project management. A bookkeeping service that allows access to project reporting will enable you to analyze the most profitable projects and make informed decisions regarding future clients. You can benchmark the resources invested as well as expenses and profit.
The best accounting software for consultants will simplify your quarterly and annual filings to ensure your business operations stay compliant. Automated tax calculations, tax reports, and detailed audit trails streamline compliance, either through built-in tools or relevant integrations with trustworthy tax software.
This is especially important for smaller consultancy companies, as small businesses often don’t have an in-house team that focuses solely on these matters.
Real-time monitoring and keeping up with industry-specific regulations and standards are also essential to stay on top of compliance.
If your consulting business is on the right track to success, it’s only natural to consider scalability. The best software will cater to ever-growing teams without jeopardizing feature accessibility and quality. When choosing the most suitable accounting software, consider future plans and the benefits or compromises that will come with upgrading.
To optimize your accounting workflow, there are a few key points to keep in mind, especially for small businesses. First and foremost, setting up a chart of accounts (COA) ensures you get a clear overview of your financial data by keeping track of all transactions. One of the many perks of using professional services accounting software is that you can categorize to better suit your specific needs.
Next, it’s imperative that billing is as hassle-free as possible. Be sure to track all reimbursable expenses to the relevant projects and automate recurring invoices whenever possible. These are crucial to guarantee on-time client billing.
Moreover, when it comes to billing, transparency builds trust. Provide your clients with full disclosure of your project expenses by leveraging client portals, allowing them to verify you’re employing your resources in the most productive manner.
Following these and other best-suited actionable strategies will give you the peace of mind that only tailored bookkeeping tools for consultants can provide.
The wrong accounting software can overcomplicate your workflow and hinder your financial practices. It’s important to know which features to look for in bookkeeping services for consultants, such as time tracking, reporting, compliance, accurate billing, and more essential tools that simplify accounting processes. With these in mind, you can make an informed decision when it’s time to choose the best online accounting provider.
By making the most of the right software, you can spend more time growing your small business instead of mulling over accounting hiccups. Professional services accounting software ensures you can do just that. There’s sure to be a perfect fit for your firm among the best accounting software for consultants we’ve selected.
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