The COVID-19 outbreak has induced a large-scale increase in expenditure on software across industries holistically since 2020; the second biggest increase in spending occurring in financial and accounting services. Almost all small businesses benefit from the use of such software, and many in fact rely on it to perform a host of everyday tasks, such as inventory tracking, reconciling bank activity and utilising double-entry accounting standards.
Not any business accounting software tools will do, however, so any small business looking at purchasing such a product needs to do their research and carefully decide which will provide a better service for them. Thankfully, The Really Useful Information Company (TRUiC) has refined the search down to the two most useful products.
Although not all business accounting software is suitable for smaller businesses, Freshbooks has been recommended by top accounting firms as it allows smaller businesses to maximise the value they receive from the investment in this software. It is the leading accounting software for such businesses because it offers a range of invoicing and bookkeeping tools for a relatively paltry $7.50-$25 a month.
The well-organised and comprehensive dashboard easily allows its users to keep track of all its money in real time, all the time. Plus, it provides all the tools necessary to manage and control the business’s time, finances and transactions optimally.
This software enables easier management of your business’s cash flow than the majority of its counterparts, regardless of their cost, primarily because it offers a dedicated support team that tailors Freshbooks to your business. They also offer a free 30-day trial to test out the software and decide whether it is the right thing for your business.
With all that being said, this software is more aligned with the needs of smaller businesses, so bear that in mind when making a decision. Most small businesses are easily overwhelmed by the quantity of information they are required to follow. Freshbooks’s software instantly eliminates all problems associated with receipt duplication, manually entering payments, and other frustrations small businesses commonly face.
Freshbooks’s clean UI allows for the easy following of many expense streams with its professional and convenient tracking features. Its advanced expense tracking functionality can also be used to set up recurring and retainer payments and track them year-round.
Put simply, it’s a pocket accountant that ensures a small business gets the fewest deductions from its income and pays the least amount in taxes.
Quickbooks is slightly more expensive than Freshbooks, at $15-$50 per month, however its main draw is that it handles very well and almost all accountants are more literate in it. This means that if your business is planning on hiring an accountant, this should be your choice out of the two as they will work better in conjunction with one another than Freshbooks.
It is excellent for businesses who need premium business accounting software that has a long-standing history in the industry and accountant-friendly features. Additionally, if a business has used it in the past, upgrading to the online version will give them access from anywhere and faster loading from Android and iOS apps.
With that being said, this is probably not the best recommendation for smaller businesses because its customer service is arguably quite poor, with long waiting queues. Furthermore, a small business is likely to have more questions about how to use the software as they will be new, which doesn’t pair well with a poor support service.
When deciding which accounting software is right for your business, the decision should only involve two choices: Freshbooks and Quickbooks. Both programs are remarkable for smaller businesses, providing excellent and easy to understand tracking of the many expense streams a business could have.
Ultimately, Freshbooks would be our recommendation for smaller businesses, since it is unlikely they will be profitable enough to justify employing an accountant – which would be the only reason to choose Quickbooks (for the higher literacy rate of accountants with this software).
Add onto this that Freshbooks has impeccable customer service, which is vital for a smaller business still trying to find its proverbial, financial feet, and Quickbooks was rated at 1.4 stars out of 5 on Trustpilot and it makes for an easy recommendation. Freshbooks for small businesses and Quickbooks for larger ones if their accountants prefer it.