Good accounting is one of the foundations of a successful business. Unfortunately, it needs a special set of skills to get done properly, which is why a lot of entrepreneurs are struggling to keep up with their accounting requirements and it’s affecting how they run their companies efficiently.
Good thing, there are now different tools that can be used together with excellent accounting and bookkeeping services to create an efficient system that will allow businesses to keep up with their finances. Two of the most popular tools that you can find today are QuickBooks and FreshBooks, and here are their pros and cons:
QuickBooks
QuickBooks is regarded by a lot of entrepreneurs as a powerful software that helps to streamline the accounting process, so you can easily manage your company’s finances even if you don’t have a good knowledge about accounting.
The pros
- It’s a customer-oriented software. QuickBooks was designed to be understood and navigated even by beginners. It doesn’t matter if you have a small or big accounting department, your accounting team can use it with ease.
- It’s constantly improving. One of the biggest benefits about using QuickBooks is the constant improvements that will also allow you to make your accounting department more efficient without paying more.
- It’s flexible. QuickBooks is not only known for its ease of use but it’s also flexible enough to be integrated with your existing financial systems and other 3rd party applications. Aside from the computer, this software can also be installed on your tablet or mobile phone, so that you can keep track of your finances even when you’re on the go.
- It’s budget-friendly. If you’re just starting a business and don’t have a huge budget to work with, you can invest in a QuickBooks software package for just $199.95 or the online version for $9.95 per month. This way, you get to manage your finances properly while keeping your expenses to a minimum.
The cons
- No direct support. Although using QuickBooks is pretty straightforward, you might need support at some point, especially with the technicalities of using this software.
- System crashes. Some software users report instability in the software’s system and crashes can also happen anytime. If you don’t have a backup for your data, you could end up losing vital financial information about your business.
- Limited number of users. Depending on your package, QuickBooks only allows a certain number of users for every account. This could be a problem once your business grows and you need more people to access your financial information.
- Designed for small businesses. QuickBooks was primarily designed with startups and small businesses in mind, which is why it has limited features for bigger companies.
FreshBooks
Many businesses and accountants have good things to say about FreshBooks. In fact, it’s considered one of the best accounting cloud software tools on the market today. Designed to be an all-in-one tool for small and medium-sized businesses, FreshBooks helps you keep track of your expenses, manage your invoices, collect payments and just stay on top of your business finances easily.
The pros
- Flexible pricing plans. This is one of the biggest benefits of using FreshBooks because you have four different plans to choose from depending on your needs and budget. This way, you can go with the basic plan when you’re starting out and upgrade as you grow your business.
- Multi-platform support. FreshBooks is compatible with almost all types of operating systems, and it can also be downloaded on your mobile phone or tablet, so you can continue to use it on the go.
- International coverage. Perhaps the biggest benefit of using FreshBooks is its ability to be adapted to the taxation systems of over 120 countries. This is why it’s very popular in Canada, Australia, the United Kingdom and the United States.
- Free trial. If you’re not sure if FreshBooks will work for you or not, you can take advantage of the free 30-day trial to get a feel of what it’s like to use this tool.
The cons
- Missing features. Although it’s already packed with a lot of features, FreshBooks still has some missing elements that will make accounting easy for business. This includes budgeting, project management integration and double-entry accounting.
- Pricing. With its flexible pricing plans, you also need to deal with higher fees. On top of that, there are limitations in the number of users for every plan and if you opt for a monthly subscription and you want your team members to gain access to your account, you’ll need to pay an additional $39.95 per month for that service plus taxes.
At the end of the day, the choice for the right accounting software will depend on your needs, your system and of course, your budget. This is where it counts to do your research and ask for recommendations. And the best option still is to hire outsourced bookkeeping services that will give you more confidence knowing that a professional is handling your books. Profit solutions offers remote bookkeeping services as well as tax and accounting services. Contact us at (877) 875 0910 or email us at info@profitsolutions.com!