If you’re still using a manual data entry system for your business accounting in 2022, then you need to read on.
While you’re wasting valuable company time and resources with such archaic accounting practices, your digital agency competitors are getting ahead by implementing basic accounting software solutions to streamline operations.
It’s actually a lot easier and more cost-effective than you think. Here’s what you need to know to get on the right track.
What is accounting software?
Accounting software for small businesses allows you to automate the mundane manual elements of accounting tasks. This means that all the data entry, number crunching and transaction tracking is done by the software, rather than you. This - in turn - leaves more time for you to focus on achieving the goals set out by your digital agency.
Why are accounting automation tools beneficial?
You’re already getting a feel for the many advantages of business accounting software, but to really seal the deal we’re going to lay them all out for you before taking a look at the leading options on the market.
- Save time: Time is your most precious commodity and if an accounting software tool can save you some, then it’s definitely worth considering. The data input and checks are all done for you, so you’re doing something in minutes that could often take weeks. Literally!
- Eradicate errors: Humans inputting data means humans having to do repetitive tasks that sap them of energy and the will to live. The result is, inevitably, mistakes. When it comes to accounting, even one mistake can be detrimental to a company! Rather automate processes and take away the risk.
- Secure storage: Remember those rooms filled with endless filing cabinets storing accounting records for legal purposes? All gone! With a software solution, your valuable accounting records, receipts and tax returns are all stored digitally. This saves you space and hassle and makes data retrieval much faster!
- Increase productivity: Because you’re saving on time, you’re able to focus on your digital agency goals and boost productivity in areas that need it most.
- Easily accessible: With all your accounting information securely stored in the cloud, you can take all your vital accounting software, information and processes with you wherever you go. This makes for easier access to useful information.
- Better integration: When you go with great accounting software for digital agencies, as we’ll get to below, you’ll be able to integrate other real-time operations into the process. So your payroll tool will integrate with the accounting and other management software.
What’s the best accounting software for business?
Now that you’re on board with the accounting software concept, we can look at which types will best suit your operations. There are many great software to consider such as Microsoft Dynamics, Sage and FreeAgent. In addition to these, there are four other software which we believe digital agencies would benefit from using:
- Xero
For small digital agency businesses that require a simple accounting software solution, then Xero is a great choice. It’s fully integrable with third-party payroll services and is cloud-based so has Android and iPhone apps. Using this accounting software, multiple users can get on board so employees engage directly with accountants. And, because of the two-step authentication, all information is kept secure. The plans included with Xero are monthly subscription options with a full-service payroll add-on and a 30-day free trial. The plans are:
- Early at $12 per month
- Growing at $34 per month
- Established at $65 per month
Features included with Xero:
- Third-party app integration
- Cloud-based, mobile app
- Create expense claims
- Send invoices
- Financial reports
- Cyber security
- Collaboration
2. QuickBooks Online
This is one of the top accounting software tools for business and is particularly beloved by small business owners looking for a hassle-free solution. All plans for QuickBooks Online allow for integration with third-party apps such as Stripe or PayPal. There’s often a discount after the first few months with the option of wholesale pricing for small businesses. The plans include:
- Simple Start: $25 per month
- Essentials: $50 per month
- Plus: $80 per month
- Advanced: $180 per month
Features included with QuickBooks:
- It’s scalable and adapts to changing business sizes
- Third-party integration
- It’s a cloud-based, mobile app
- Inventory management
- Time tracking
- Budgeting
- Additional users
- Customisation options
3. FreshBooks
For service-based organisations like digital agencies, invoicing is an important aspect of day-to-day operations. FreshBooks is the best solution to meet invoicing needs with the primary function to send, receive, print and pay invoices. It’s great if you’re new to such accounting tools as it’s easy to use. FreshBooks may also offer discounts or bundled pricing for pre-payment. The plans included in FreshBooks are:
- Lite: $15 per month for the self-employed business owners with five billable clients
- Plus: $25 per month for businesses with 50 billable clients
- Premium: $50 per month for businesses with unlimited billable clients
- Select: Custom features and pricing for businesses with unlimited billable clients
Features included with FreshBooks:
- Payment reminders
- Automatic tax calculations
- Multi-currency billing
- Online credit card payments
- Recurring payments, bank deposits and integration
- User-friendly interface
- Third-party app integration
4. Zoho Books
This particular option has robust accounting features with automation for certain options such as invoices, categorising and bank feeds. Zoho Books comes with around 40 app integrations so can be used with existing software, and even if you have limited accounting knowledge, this software is so easy to set up. There are four plans from which to choose, including:
- Basic: Free annual subscription for businesses with up to $50,000 in annual revenue with two users.
- Standard: $15 per month billed annually, including up to three users.
- Professional: $40 per month billed annually, including up to 5 users.
- Premium: $60 per month billed annually, including up to 10 users.
Features included with Zoho Books:
- Reports and scheduling
- Sales ordering
- End-to-end accounting
- Reconcile bank transactions
- Client portal
- Automatic tax calculations
- Customer relationship management
- Inventory control
- Human resource management
What do you need to consider when choosing accounting software?
Basically, here’s what you want to ask your software supplier about when you’re considering which is best suited to your needs:
- Cost (of course!)
- Product features
- Technical support offered
- The user interface
- Scalability
- Third-party integration
Regardless of which of the software mentioned in the article you choose, you'll see great results and time savings by implementing an accounting software, so get started today!
