Irrespective of the size of business, accounting software is necessary to organize your finances, and remind you about your earnings and spending. It also helps to stay compliant with taxes and save your time and money. There are two main categories known as, cloud-based and locally-installed.There is a number of software available in the market which goes by the name accounting programs. Different software has different strength of accounting, number of features, and ease of use, customer service, pricing, customer reviews and security among other factors. You have to figure out the best option for you to support your business structure, requirements and, strategies.

How to choose accounting software?

It lets businesses to balance your books, run key accounting reports and do other important tasks like managing contacts and invoicing customers. Following are the points to take into account while choosing for it:

  • The number of users you have.
  • Level of control that you want for user access.
  • To manage multiple businesses.
  • For payroll.

You need to plan out the exact tasks that you want the software to do for you as there are many normal and advanced features. Moreover, it depends upon your personal knowledge of accounting. If you don’t know much about it, you will like to choose the one with many support resources. If you are not completely unfamiliar, you will like the one which would provide you with more control. Mobility is also an important point which would affect your decision. You will need a good app in such a case. Make sure that your software integrates with your existing business applications. It should have plenty of add-ons and payment gateways to cover your business’s needs. Prices may vary but the general range is given below:

  • Freelancers — $0 to $17 per month
  • Small Businesses — $0 to $30 per month
  • Medium-sized businesses — $30 to $50 per month
  • Larger businesses — $50+ per month
  • Enterprises – Up to thousands of dollars per year

Following is the table of comparison of Xero and MYOB:

Details                MYOB Essentials Xero
Setup and Access 100% online, on the computer, tablet or mobile 100% online, on the computer, tablet or mobile
Updates Automatic Automatic
Backups Constant online security Constant online security
Multiple user access Yes Yes
Ease of Use Good Excellent
Speed of Reporting Reports run one at a time (slow) Multiple reports can run simultaneously (fast)
Quotes Offers a quotation system Accepted quotes automatically convert into active jobs
Invoices Send from MYOB Send via Xero with nice templates and logo designs. (you can get to know when the client opens it)
Receive Payments Multiple methods using PayPal and can connect to an online store Multiple methods using PayPal and can connect to an online store
Receipting Payments A payment from a customer is quickly applied against a lot of invoices at once or applied to the oldest to the newest. With the bank reconciliation screen or do quick batch payments, use keyword research then apply the payment to different invoices
Payroll For one person only. (paid add-on for more staff) Xero Payroll included. Payslips, summaries, super etc.
Employee Logins Only by a paid add-on Staff can access private portal with Xero login. They can download summaries, slips and, lodge leave requests.
Client cards Purchases can’t be processed against a customer card, and sales can’t be processed against supplier cards A single contact represents suppliers and customers.
Fixed Assets Only as an add-on In-build fixed asset register with many options
Follow up Debts Yes Yes, with nice templates matching to your brand
International currency Not available on most versions without a paid add-on. Yes, it offers many currencies with rates calculated at the current date.
Expense claims Not available Handles them separately. Does a good job in accounting for the expense.
Cost Starts at $29 per month Starts at $25 per month
Learning about the software Online help Online help, online videos, Xero TV, good summaries

Features of Reckon

The main feature that makes it exclusive is reporting. If management reporting is among your prior concerns then it is the best. It is easy to use and has quite a number of features at a reasonable price. Its highlights are unlimited payroll, automatic bank reconciliation, unlimited project management, unlimited invoices and free customer support (phone and online). Its price starts at $17 per month.

Features of Sage

This software (sage one start) allows unlimited collaborators to record expenses and income and reconciles unlimited transactions and creates and sends unlimited invoices. It includes additional features (Sage one accounting) such as:

  • It has an instant backup (automatic)
  • It supports 24/7
  • It has an intelligent digital assistant
  • It can perform cash or accrual accounting
  • It forecasts your cash flow
  • It shows costs and estimates
  • It will present vendor bills

Price for Sage one start is $10 per month and for Sage one accounting is $25 per month.

Features of QuickBooks Online

It is popular accounting software used by many small business owners. It comes with advanced features, beautiful invoicing, 250+ integrations and a brand new lending feature. It has strong accounting features, uses double-entry, accrual and cash basis. It is compatible and cost-effective. It has a well-organized user interface. Its mobile applications are very helpful and to the point. It uses data encryption, redundancy and physical security measures at their respective data centers.

Conclusion

It is very difficult to choose from so many choices and all of them coming with advanced features. So, know your business first and then decide accordingly. Each of the software programs has been researched and tested well in order to present its best features. In case, you need any guidance for selecting the most suitable accounting software for your business, you can reach to us for consultation with our experienced team of professionals. You can contact us via chat or call.