A trading company stands out from other businesses as its main source of income is the commercialization of goods instead of services. These goods are referred to as stock or inventory, and it’s important to keep accurate, up-to-date records of these and any related transactions. To ensure proper bookkeeping of trading stock, it’s crucial to use the best accounting software for trading businesses.
This guide covers the importance of using the right software, key features to keep in mind, and how to make the best decision for your company. To make your job easier, we’ve narrowed down the four best accounting services for trading businesses.
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.
At first glance, Canada-based online accounting solution Wave is nothing special: you can do invoicing, create estimates, bills, add your clients, vendors, products, upload receipts, and check some reports. Upon further examination you will see that the user interface is rather blank; you have to pay for certain additional features, even for live chat and phone support, no profit & loss reports are created, and you are mostly unable to access your account from a mobile device. These all should be warning signs to avoid the software. But Wave has a huge advantage over its competitors: it provides all the major features for every single user free of charge. Furthermore, you can cancel your account any time you want. Therefore, if you are not satisfied with Wave’s services, you lose nothing. If you are a sole proprietor or an owner of a small business and you want to get accounting software that knows the basics without spending a fortune, then Wave may be worth a try.
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.
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.
In addition to complicating inventory management, a poor accounting track record can be harmful to a trading brand’s reputation, which can make it harder to secure investors. Every transaction must be recorded as efficiently as possible to ensure a healthy workflow and transparency, both for internal and external stakeholders. This also allows for sound business decisions by making sure you’re fully informed of your company’s financial health.
Without proper accounting, trading businesses are likely to miss important deadlines, file incorrect financial reports, lose track of transactions, and more complications that can lead to bigger legal problems. All these factors can negatively affect business growth and impact financial decisions.
The right online accounting software for your trading company will help you simplify your financial data and improve your everyday workload. Your business is more likely to stick to deadlines, stay compliant, and receive all the benefits it’s entitled to. Through successful accounting practices, even managing your cash flow will prove to be an easier task.
The good news is that bookkeeping for trading businesses is easier than it looks. Many of the basic accounting concepts can be taken and applied to this specific type of company, which helps trading business owners better understand what to keep in mind when it comes to bookkeeping. It’s important to recognize the following terms:
When it comes to accounting for the trading industry, it’s important to consider the volume of inventory you’re dealing with, indispensable elements you need to account for, ensuring compliance with the relevant procedures and policies, daily and monthly reporting, internal and external audits, and clear reporting on margins.
By knowing the basics and considering the specific needs of your business, you’ll be able to make an informed decision on the best accounting software for your trading company and reach new financial heights.
Trading businesses can suffer significantly as a result of incorrect accounting practices. However, proper online accounting software can revolutionize a company’s financial management, setting it up for success in the bookkeeping side of business.
By storing your financial data online, you can access it in the cloud. Cloud-based solutions allow for real-time access and remote accessibility, providing insight into your company’s financial health even when you’re on the go.
Automation is another positive aspect of online software, minimizing the number of hoops you need to go through to keep track of all the important parts of your organization. Moreover, these solutions won’t make a huge dent in your wallet, with plenty of affordable options that allow for scaling once your business sets sail.
Online bookkeeping software streamlines accounting tasks, simplifying financial workflows and reducing the probability of making costly mistakes. Nonetheless, to make sure you enjoy the full benefits of the software, it’s important to ensure your chosen provider offers all the key features that matter to your business.
Now that you know which features to look for, consider the remaining criteria to evaluate and select the best accounting software for trading businesses. First and foremost, review your budget against the associated costs of online accounting, weighing up different providers and plans.
Scalability and integrations will inevitably affect pricing. We recommend starting small and scaling once needed in terms of users, but investing in as many relevant integrations as possible. Most companies have a Sales contact that you can discuss the details of the plans and your business needs with.
Look for trustworthy reviews from industry experts and other users, as third-party opinions will always have more weight than what a brand chooses to present to you. Expert review sites also tend to offer direct assistance in benchmarking multiple software options.
Once you’ve outlined all the pros and cons and have finished your initial research, you’ve hopefully narrowed down a long list of software to just a couple of viable services for your trading company. Consider the points outlined in this guide as well as our choices for the best online accounting software for trading businesses, and you’re guaranteed to make the right call.
Bookkeeping doesn’t have to be a headache. You can make the right choice for your business by switching to accounting software for trading businesses, ensuring you’re setting yourself up for success. Assess how accounting practices impact your business, general concepts to consider, and how you can benefit from software that’s more suited to trading companies.
With the basics laid out, be mindful of the key features for a smooth bookkeeping experience and how these can help in choosing the right provider. When necessary, use our reviews as a benchmark for important software decisions.
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