Before cloud-based accounting solutions, accounting and bookkeeping was anything but fun. You had to keep everything in Excel spreadsheets, send recurring invoices manually, keep receipts in a shoebox and cram all of your bookkeeping records in a cabinet. And we haven’t even mentioned the monotone data processing and the total madness tax season brings.
All of these nightmares vanished with the arrival of online accounting software, which can be managed by people who have no or minimal expertise in the accounting field. You will see that they are designed to make the accounting process as hassle-free as possible, giving you the option to partially or even fully automate the most boring part of running a business. And if that’s not convincing enough, with cloud accounting software you can: integrate your existing solutions into the new one, learn basic accounting with ease and reduce costs by paying cost-friendly prices for this true powerhouse.
One of the many pros of online accounting is real-time data recording: you enter data into the cloud and it automatically becomes available for later use. In fact, you only have to input data once, and the software takes care of it without any human interference.
Multi-currency, recurring/one-time invoices can be created in mere seconds from scratch, or from quotes/estimates you created earlier, and can be paid instantly by the client through an online payment system. All necessary data can be stored in their respective places (contact lists, inventory etc.), and by connecting your bank to the visual dashboard you can immediately see your cashflow and you can simply reconcile your bank transactions. With the aid of payroll you can manage the timesheet of your employees and pay them accordingly.
Most features can be accessed from iOS/Android apps, but if you need something else or you just don’t want to leave your old software, you can opt for the countless integration options and merge your legacy accounting solution with the new one to create a true powerhouse.
Most online accounting solutions are easy to use, but when it comes to user-friendliness and versatility of features, Xero or FreshBooks might be your best choice.
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.
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.
Online accounting solutions are indeed intended for making the accounting process completely hassle-free, but to use them in an effective manner, you need to take into consideration various factors and learn a bit of accounting yourself. It’s a good start to think about what features you will need and choose a solution accordingly. Then you have to set up schedules: you have to decide which tasks should be done on a daily basis and which one can be done at the beginning/end of the month.
Once the above factors are settled, accounting will become much easier for you. However, if you still think you need some help with your books, you have plenty of ways to learn the basics. Almost all accounting solution providers have detailed knowledge bases explaining the software’s features and their related accounting practices, but you can also watch tutorial videos or attend webinars. Furthermore, you can always contact the customer support of the chosen accounting solution or turn to certified bookkeepers who can help you with everything, including the use of software.
Although cloud accounting programs sport lots of useful features, sometimes you will need something that is either lacking from the software or you have a separate solution with the more advanced version of the desired feature. This is where integrating other solutions enters into the picture: since accounting solutions offer and support an API, you can integrate various third-party apps into your system, creating the ultimate powerhouse for almost full-on automation.
A feature that is usually missing from accounting software is payroll, but thanks to the seamless cooperation between companies like Gusto and accounting solution providers, you can easily calculate the salary of your employees, pay them instantly and have these records stored in your online bookkeeping. You can also integrate various time tracking programs to be able to bill by the hour, and expense management tools to turn receipts into invoices and record them in your system. And we haven’t even mentioned that payment processors like PayPal, ecommerce systems like Shopify, and CRMs like Capsule CRM can also join forces with your accounting software.
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