5 Tips for Small Business Owners to Assess and Improve Their Bookkeeping

It offers fully featured reports and full accountant and bookkeeper access. Along with unlimited users, it lets you add unlimited bank accounts and credit cards for easier (and more accurate) bank reconciliation. Its chart of accounts, journal entry generation, and multi-business management make it a good fit for small and midsize businesses alike. QuickBooks Online sets the standard for bookkeeping software with thorough, easy-to-understand financial reporting. Its cheapest plan includes all the financial reporting basics (profit and loss statements, balance sheets, and cash flow statements), plus sales tax and mileage tracking.

A separate bank account is the first step in distinguishing between business and personal finances. Bookkeeping becomes more difficult when business transactions are lumped together with personal activity. Whether you just want help tracking receipts or you’re looking to automate complex workflows and support a large team, we have options for you. If you don’t need accounting bookkeeping solutions just yet, our new money solution offers banking, payments, and 5.00% APY—all with no subscription or starting fees. In many cases, professional services may be a better option than DIY bookkeeping and accounting. A professional bookkeeper can save you even more time than software and ensure the level of accuracy you need to keep your small business running smoothly.

Virtual (In-House) Bookkeeper

Since good record keeping relies on accurate expense tracking, it’s important to monitor all transactions, keep receipts, and watch business credit card activity. Many bookkeeping software options automate the tracking process to eliminate errors. We prioritized software that was either low-cost or had an affordable plan in a series of pricing plans. We also gave credit to those apps that either provided users with a free version of the software or at least a free trial period.

This helps businesses use the software’s automated features to reorder a particular inventory to avoid stock-out issues. One of the most useful features of a bookkeeping software is its core modules that take care of every business activity. From invoice generation to inventory management, the software can keep a track of end-to-end business operations. An advanced bookkeeping software can track the entire manufacturing cycle, from purchase of raw material to finished product. If managing the financial aspects of your business is a headache, it may well be worth it to pay for a helping hand with bookkeeping and tax preparation.

How can I learn how to use accounting software?

Pricier plans include reports for accounts receivable and payable, budgeting, inventory, sales, profitability, and more. Xero is an affordable cloud-based accounting software system that is highly rated among small businesses. Its simple solution for tracking income and expenses makes it easy to use for those without accounting skills. Top features for every plan include the ability to create and send invoices, track time and project profitability, claim expenses, bulk reconcile transactions and accept multiple currencies. As an online cloud-based accounting software, QuickBooks Online was made specifically for non-accountants (unlike the clunkier QuickBooks Desktop, which was made for accountants).

• If you’re on a budget, you can reduce costs by opting for a less expensive plan, choosing à la carte options or only paying for the features you need.
• You can also share these reports with your teammates or other stakeholders.
• FreshBooks is a good choice for small business owners who want easy-to-use accounting software.
• The best part of a bookkeeping software is that it comes with seamless integration features.
• Chief among these concerns is whether, when, and by how much the Federal Reserve Bank of the United States will begin cutting interest rates.
• You don’t have to hire someone to come into your office to have an in-house bookkeeper — many are virtual.

Unlike data stored on a hard drive, data in the cloud is typically not susceptible to being lost due to hardware malfunctions. Cloud-based accounting software is just like traditional accounting software with the exception that all the data is hosted on remote servers instead of the user’s desktop computer. Kashoo is a great choice for small business owners who want straightforward accounting software that is easy to set up. Despite these challenges, accounting software can be a valuable tool for businesses of all sizes.