Fortunately, software has made this process much easier, helping you save time and stay organised. Business Accounting Basics can advise on the best accounting software for startups and offer exclusive discounts to get you started.

Let’s look at essential accounting principles and explore some of the best startup accounting software available:

Accounting Basics for Start-ups

Before diving into accounting software providers, let’s touch on the key accounting principles every start-up should grasp:

1. Tracking Income and Expenses. Monitoring every penny flowing in and out of your business is vital. This is crucial for budgeting and ensuring profitability.

2. Keeping Separate Business and Personal Finances. Maintain a dedicated business account to streamline record-keeping and avoid tax complications.

3. Understanding Tax Obligations. Whether it’s VAT, PAYE, Corporation Tax, income tax or National Insurance, understanding your liabilities ensures compliance with HMRC and avoids penalties. Startups can also benefit from professional accounting services to manage these obligations effectively.

4. Cash Flow Management. By tracking cash inflow and outflow, a start-up should always have sufficient funds to cover operational costs.

5. Financial Reporting. Generate regular reports to analyse performance and make data-driven decisions.

Best Self-employed

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From £15 per month

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What to Consider When Choosing Accounting Software

When selecting accounting software for small businesses, several factors must be considered. Here are some key considerations to help you make an informed decision:

1. Cost: Determine your budget for accounting software and consider the total cost of ownership, including any additional fees for support, training, or upgrades. Finding a solution that offers good value without compromising on necessary features and scalability is essential: Choose software that can grow with your business, offering features and functionality that can adapt to your changing needs. As your startup expands, your accounting software should be able to handle increased transactions and more complex financial requirements.
2. Ease of Use: Select software with an interface that is easy to navigate, even for those without extensive accounting experience. User-friendly software can save time and reduce the learning curve for you and your team.
3. Features: Consider the specific features you need, such as invoicing, expense tracking, and financial reporting. Make sure the software you choose can handle your current needs and any future requirements as your business evolves.
4. Integration: Ensure the software integrates with your existing systems, such as your business bank account, to streamline your financial management. Seamless integration can automate data entry and reconciliation processes, saving time and reducing the risk of errors.
5. Security: Look for software prioritising security and compliance, including data encryption and two-factor authentication features. Protecting your financial data is crucial, so choose a provider with robust security measures.
6. Support: Evaluate the level of support offered by the software provider, including online resources, phone support, and training options. Reliable support can be invaluable, especially when you encounter issues or need assistance with the software.

Key Features to Look for in Accounting Software

When evaluating accounting software, consider the following key features to ensure it meets your business needs:

1. Invoicing and Billing: Look for software that allows you to create professional invoices and track payments. Efficient invoicing can improve cash flow by ensuring timely client payments.
2. Expense Tracking: Choose software that efficiently tracks and categorises expenses. Accurate expense tracking helps in budgeting and identifying cost-saving opportunities.
3. Financial Reporting: Select software that provides comprehensive financial reporting, including balance sheets and income statements. Detailed reports offer insights into your business’s financial health and aid in decision-making.
4. Cash Flow Management: Consider software that offers cash flow forecasting and management tools. Effective cash flow management ensures your business can meet its financial obligations and plan for future growth.
5. Payroll Management: If you have employees, look for payroll management software with these features. Automated payroll processing can save time and reduce errors in salary calculations and tax withholdings.
6. Inventory Management: If you sell products, consider software that includes inventory management features. Tracking stock levels helps prevent overstocking or stockouts, optimising your inventory costs.
7. Advanced Accounting Features: If you have complex accounting needs, look for software that offers advanced features such as multi-currency support and project accounting. These features can handle more sophisticated financial scenarios and support international business operations.
8. App Integration: When choosing accounting software, it’s crucial to consider the range of apps it can integrate with. This includes essential tools like CRM systems, payment gateways such as PayPal, and other business applications that can enhance your operational efficiency.

 Exploring our Recommended Software for Start-Ups

All our recommendations for a new business offer cloud accounting software, which makes it easier to update, store, and share data with other employees and accountants. They are also making tax digital compliant, so you know they will meet the needs of HMRC.

 QuickBooks Accounting Software: Powerful and Easy to Use 

QuickBooks is one of the most popular accounting software options. It offers robust tools for businesses of all sizes. Due to its user-friendly interface and extensive features, it’s particularly well-suited for start-ups and the self-employed. 

 Key features include:

● Automated invoicing and expense tracking: Invoice templates are included to make your sales invoices look professional with branding.

● Real-time financial reporting: Many built-in financial reports are suitable for most businesses.

● Seamless integration with payroll systems: QuickBooks Online has its payroll for an additional fee or integrates with other providers.

● Mobile app for on-the-go access: An excellent app for invoicing, checking bank accounts and snapping receipts.

● Pay-enabled invoices for seamless online payments

 Why Choose QuickBooks Online Accounting Software?

QuickBooks’ accessibility and comprehensive tools make it ideal for start-ups needing detailed financial insights without the steep learning curve. It’s also well-suited for businesses scaling up, as it accommodates more advanced needs. 

QuickBooks Pricing

QuickBooks offers one of the cheapest platforms for a sole trader from £10 per month.

 Enjoy an Exclusive Discount with Basics Accounting Basics

Through our affiliate link, you can enjoy a 90% discount on QuickBooks for 7 months—an excellent opportunity for start-ups to access premium features at a fraction of the cost. 

Xero Accounting Software: Streamlined for Simplicity

Xero is another leading choice for the best accounting software for start-ups, particularly those looking for a clean and intuitive interface with powerful integrations. Known for its simplicity and scalability, Xero is a firm favourite for businesses all over the UK.

 Its key features include the fact you can add multiple users at no extra cost. Xero also offers:

• Bank reconciliation simplifies matching transactions, ensuring your bank accounts are accurately reflected in your financial records.
• Integration with over 800 business apps, allowing seamless connectivity with tools you already use, such as project management and CRM systems.
• Customisable financial reports that provide in-depth insights into your business finances. Tailor these reports to focus on key metrics that matter most to your startup.

Xero excels at facilitating collaboration. Its real-time data-sharing features are invaluable if you work with an accountant or bookkeeper. Supporting multiple currencies makes it ideal for businesses aiming for international growth.

Xero Pricing

Sign up via our link to receive, and you can get 90% off Xero for 6 months. This unbeatable deal is perfect for start-ups seeking professional-grade accounting software. 

Sage Accounting Software: Comprehensive and Customisable

Sage Accounting Software is a robust solution ideal for start-ups and small businesses seeking a comprehensive accounting system with customisable options. Known for its reliability and advanced accounting features, Sage offers a range of tools to manage your business finances efficiently.

Key Features of Sage Accounting Software:

• Comprehensive Financial Management: Sage provides tools for invoicing, expense tracking, and cash flow forecasting, helping businesses maintain a clear view of their financial health.
• Bank Reconciliation: Easily match bank transactions with your accounts, ensuring accuracy and reducing the risk of bookkeeping errors.
• Integration Capabilities: Seamlessly integrate with other systems and software for small businesses, including project management and payroll services, to streamline operations.
• Scalability: Sage’s advanced accounting features can accommodate larger businesses as your business grows, making it a cost-effective solution for the long term.

Sage Pricing

Sage offers flexible pricing plans for different business needs, with options for small and larger enterprises.

Sage Accounting Software is an excellent choice for start-ups looking for a reliable, customisable, and scalable accounting solution. Its comprehensive features and integration capabilities make it a top contender in the best accounting software for startups.

Free Alternatives: Budget-Friendly Options

Free accounting software options can provide basic yet effective solutions for start-ups operating on a tight budget. 

FreeAgent Accounting Software

FreeAgent online accounting software is beneficial for sole traders and freelancers. It is straightforward and easily handles key accounting tasks like invoicing, expense tracking, and tax estimates.

Key Features Include:

●     Automatic tax deadline reminders 

●     VAT submissions directly to HMRC 

●     Easy-to-use invoicing tools 

While FreeAgent is not entirely free for all, it’s included at no extra cost with certain business bank accounts, such as those offered by NatWest and RBS and one transaction per month with Mettle. 

FreeAgent Pricing

FreeAgent is an excellent choice for small business accounting software, especially if you are entitled to a free account with all the features.

Zoho Books Startup Accounting Software

Zoho Books is another excellent option for small start-ups. It offers businesses a limited free version for companies with less than 1000 sales invoices and 1000 expenses per year.

Key Features include basic inventory management, payment reminders, customer portals, and multi-currency support. Though Zoho Books is free for smaller businesses, it offers affordable premium plans if your needs grow over time. 

Zoho Books and Apps Integration

Zoho Books stands out for its robust accounting capabilities and seamless integration with other Zoho apps. It is ideal for startups looking to streamline their operations. By integrating Zoho Books with other Zoho applications, businesses can create a comprehensive system that enhances productivity and efficiency.

Key Integrations Include:

• Zoho CRM: Sync customer data to streamline customer relationship management and generate invoices directly from CRM data.
• Zoho Projects: Manage projects and track expenses with automatic billing based on project time tracking.
• Zoho Inventory: Keep stock levels up-to-date to avoid overstocking or stockouts.
• Zoho People: Integrate to ensure efficient payroll management and accurate financial statements.
• Zoho Analytics: Gain deeper insights into your finances with Zoho Analytics integration.

Zoho Pricing

Zoho Books offers competitive pricing, but adding additional applications can get expensive, so consider what you need.

Online Accounting Software Security and Compliance

Online accounting software security and compliance are critical considerations for small businesses. Here are some key factors to consider:

1. Data Encryption: Look for software that uses data encryption to protect your financial data. Encryption ensures that your data is secure and inaccessible to unauthorised users.
2. Two-Factor Authentication: Choose software that offers two-factor authentication to prevent unauthorised access. This additional layer of security helps protect your sensitive financial information.
3. Compliance: Ensure the software complies with relevant regulations, such as GDPR and Making Tax Digital. Compliance with these regulations is essential to avoid legal issues and ensure your business operates within the law.
4. Backup and Recovery: Select software that offers automatic backup and recovery options to prevent data loss. Regular backups ensure that your financial data is safe and can be restored in case of any issues.

How Do I Choose the Right Software? 

Selecting the right accounting software depends on your business needs and budget. Here is a comparison of some of the packages we’ve mentioned:

 – Opt for QuickBooks if you’re looking for robust features with scalability. 

– Choose Xero for streamlined collaboration and a clean user experience. 

• Sage for larger businesses looking to grow

– Consider FreeAgent or Zoho Books if affordability is a priority and your business has relatively straightforward accounting needs. 

Why Professional Advice Matters

Navigating the complexities of business accounting can be challenging, especially for new entrepreneurs. That’s why consulting with an accountant or bookkeeper can be helpful from the start. They can guide you on what you can claim, how to complete accounting and the best online accounting software for your small business.

Conclusion: Choosing the Best Accounting Software for Your Startup

Selecting the right small business accounting software is a critical decision for startups aiming to streamline their financial management and ensure long-term success. With numerous options available, it’s important to consider your specific business needs, budget, and growth plans. Whether you opt for robust solutions like QuickBooks and Xero or budget-friendly alternatives like FreeAgent and Zoho Books, each offers unique features to help manage your business accounting.

Remember, professional advice can be invaluable in navigating the complexities of accounting software, ensuring you maximise its potential and avoid common pitfalls. Start exploring your options and take control of your startup’s financial future today.

Explore our software recommendations today.

The post Seeking the Best Accounting Software for Startups? appeared first on Business Accounting Basics.

Key Takeaways

• Setting up a dedicated business bank account and a clear chart of accounts are essential first steps for keeping accurate financial records for your small business.
• Consistent bookkeeping practices and the use of accounting software boost financial tracking, reporting, and compliance. This approach reduces errors and saves time.
• Understanding and preparing financial statements, such as income statements and balance sheets, is essential for monitoring business performance and making informed decisions.

What is a Small Business?

In the UK, a “small business” is officially defined using a combination of factors, primarily the number of employees and annual turnover:

Official Definitions:

• Micro-business: Less than 10 employees and a turnover of less than £2 million.
• Small business: Less than 50 employees and a turnover of less than £10 million.

Small businesses are the lifeblood of the UK economy, driving innovation and providing essential goods and services.

Setting Up Your Small Business Accounting System

Setting up an accounting system is crucial for small business owners to keep accurate records and manage finances effectively. An accounting system is essential for small business owners to track income and expenses effectively. This system simplifies understanding of financial health and ensures compliance with legal requirements. Small businesses can make informed decisions and support their growth using the right tools and practices.

Opening a Business Bank Account

Opening a separate business bank account is often the initial step for most small business owners in organising their finances. Separating personal and business finances simplifies bookkeeping and tax preparation, making it easier to track income and expenses. A dedicated bank account enhances financial clarity and legal compliance, offering peace of mind to the owner.

Comparing fees, features, and benefits can help you find the best account to meet your needs. Linking your business accounts with accounting software can simplify posting transactions, boosting efficiency and accuracy.

A separate account is required for a limited company because it is a separate legal entity. This separation ensures that financial records remain organised and personal assets are protected by maintaining clear boundaries.

Choosing the Right Accounting Method

Choosing the right accounting method is crucial for accurate financial reporting and management. Small businesses usually choose between two main methods: cash basis and accrual basis.

The cash-basis method records income and expenses only when cash is exchanged, making it simpler but potentially less accurate. This method might be suitable for smaller businesses and self-employed with simpler transactions.

The accrual basis accounting method records income and expenses when they are earned or incurred, regardless of when cash is exchanged. This approach gives a clearer picture of your business’s financial status and is used by many companies, especially those with more complex transactions.

Example of Accrual Basis Accounting

A small business purchases a laptop in March for 1,000 and sells it in May. With accrual-basis accounting, the expense is recorded in May when the item is sold, not purchased. This method ensures that revenue and expenses are matched within the same accounting period, providing a more accurate financial picture.

The choice of method depends on your business size, transaction complexity, and need for precise reporting.

Creating a Chart of Accounts

Creating a chart of accounts is crucial in establishing your small business accounting system. It is a complete list of all accounts used to record transactions, compile financial statements, review financial progress, and locate specific transactions.

Organising accounts into categories, such as assets, liabilities, equity, revenue, and expenses, ensures that all financial transactions are accurately captured and easily tracked.

Bookkeeping Practices for Small Business Owners

Adopting bookkeeping practices is vital to maintaining accounting records and making informed business decisions. A well-organised accounting system is crucial for small business owners to track financial performance and comply with legal requirements. Regularly updating records, ideally daily, helps prevent paperwork from piling up and reduces the likelihood of errors.

Accounting software streamlines bookkeeping by automating tasks, reducing errors, and improving record accuracy. It simplifies complex processes, saves time, and offers automatic transaction categorisation and real-time financial reporting features. It ensures up-to-date data and easy access to the financial statements.

Tracking Income and Expenses

Monitoring income and expenses is a vital part of effective bookkeeping. Accurate records of all payments and expenses during each accounting period are essential. By meticulously recording transactions, businesses can understand their income and expenses, allowing them to make informed financial decisions.

Ensuring all income and expenses are accurately recorded is vital for a small business owner aiming to reduce their tax bills. By tracking transactions and reviewing financial records regularly, businesses can prevent errors and maximise deductions.

Routine audits or checks help identify and correct errors early, ensuring data accuracy. This practice not only aids in financial management but also simplifies the process of preparing tax returns and other financial statements.

How to Record Your Transactions

Accounting software significantly enhances small business bookkeeping efficiency. It stores documents in the cloud, preventing loss and saving office space. It keeps accurate records and creates financial statements, making it easier for businesses to manage their finances. We will look at this in more detail later.

Free Bookkeeping Templates Offered by Business Accounting Basics

Business Accounting Basics provides a range of free bookkeeping templates designed to assist companies in managing their small business bookkeeping efficiently. These templates are tailored to help track income, expenses, and other vital financial data, ensuring that small businesses maintain records without expensive software. The most popular template is the cash book.

Paper Records and Ledger Books

While digital accounting is popular, some businesses still prefer paper records and ledger books for managing finances. This method allows for tracking of income and expenses, with ledger books detailing transactions by date, description, amount, and category.

Reconciling Bank Statements

Regular bank statement reconciliation ensures all transactions are recorded. This practice helps identify discrepancies between your and the bank’s records, allowing correction of errors promptly. Reconciling bank statements ensures the accuracy of your data, giving you a clear picture of your finances.

Although open banking feeds are relatively accurate, errors can sometimes occur.

Understanding The Important Financial Statements

Understanding financial statements is crucial for making business decisions and spotting new opportunities. These statements give you a clear view of your business’s finances, enabling data-driven choices. Accounting ratios are tools used to assess a business’s financial health and performance by comparing various financial data points. They help understand profitability, liquidity, and efficiency, offering insights into how well a business does financially.

Profit and Loss (Income Statement)

A profit and Loss report summarises a company’s sales revenue and expenses to show its profitability over a specific period. It provides insights into both gross profit and net profit. Gross profit is calculated by subtracting the cost of goods sold from sales revenue, showing the efficiency of production and sales processes. Net profit is calculated by deducting operating expenses, taxes, and interest from the gross profit, showing the overall profitability of the business.

Preparing an income statement is essential for understanding your business’s financial performance. It helps you track revenue and expenses, spot trends, and make necessary adjustments to improve gross and net profitability.

Balance Sheet

A balance sheet reveals a company’s assets, liabilities, and equity, providing a snapshot of its financial position at a single point in time. This statement is essential for understanding your business’s financial stability and liquidity.

Creating a balance sheet with accounting software ensures greater accuracy and efficiency. Regularly producing your balance sheet allows you to monitor changes in your financial position and make informed decisions to manage your finances effectively.

Generating a Cash Flow Statement

A cash flow statement tracks cash inflows and outflows over a specific period. This statement helps make better financial decisions by revealing the actual movement of cash rather than just profit or loss.

The cash flow statement is divided into three sections: cash flow from operations, investing, and financing, each showing different sources and uses of cash. Positive cash flow indicates more cash is entering the business than leaving, while negative cash flow can signal financial instability if it persists.

Managing Business Taxes

Tax management is a critical aspect of running a small business. Small businesses must file and pay various taxes, including Corporation, NI and payroll taxes. The type of taxes a small business must pay is a determined business structure.

Failing to pay taxes or making late payments can result in penalties and interest charges from HMRC or Companies House. Tax planning is crucial for reducing tax liabilities and ensuring compliance with tax regulations.

Limited companies must submit a Company Tax Return to Companies House, including turnover, costs, tax allowances, and profits. Self-employed individuals must complete a self-assessment return to HMRC, which calculates the taxes they owe.

Filing Tax Returns

Making Tax Digital (MTD) is a government initiative to transform the tax system to make it more effective, efficient, and easier for businesses to file their tax returns correctly. Under MTD, companies are required to keep digital records and submit their taxes using compatible accounting software. This modern approach reduces errors and streamlines the entire process, ensuring businesses comply with tax regulations.

The transition to digital tax submissions is phased, with VAT-registered businesses being the first to comply. Eventually, all businesses must adhere to MTD requirements, making it crucial to familiarise themselves with the necessary software and processes.

By embracing Making Tax Digital, small businesses can ensure they are prepared for future tax requirements, benefit from improved efficiency, and reduce their risk of penalties.

Deducting Business Expenses

Deducting business expenses is crucial for reducing taxable income. A company can significantly lower their taxable income by claiming all legitimate expenses, including those for company cars, mileage or private healthcare, which must be reported using form P11D.

Tracking all business expenses is crucial to ensuring correct amounts for annual tax deductions. This practice reduces tax liabilities and clearly shows the business’s actual costs.

Using Accounting Software

Accounting software plays a crucial role in managing small business finances by automating and streamlining tasks. Establishing an accounting system can simplify processes, making them faster and more efficient. The software handles repetitive tasks like bookkeeping and invoicing, saving time and minimising errors. It also centralises all financial data in one digital location, offering easy access and better control over business finances.

Most cloud-based accounting applications offer invoicing, payments, payroll, and tax return preparation solutions. The ability to store documents in the cloud means that data, including tax returns, is always accessible on any device, ensuring you have up-to-date information at your fingertips.

Popular Bookkeeping Software Options

Here are some of the best bookkeeping software packages to help small businesses manage their finances effectively.

• QuickBooks is a widely used solution that offers features like invoicing, expense tracking, and financial reporting.
• Xero provides a comprehensive solution with robust app integration for businesses seeking flexibility.
• FreeAgent is a great option, particularly for freelancers and small businesses, as it offers some users a free version through certain banks.
• FreshBooks is another excellent choice, known for its user-friendly interface, time tracking, and detailed invoicing capabilities.

Choosing the best bookkeeping software can help small businesses record transactions, automate processes, and improve efficiency.

Integrating with Other Tools

Integrating the best bookkeeping software with other tools enhances efficiency, boosts accuracy, and streamlines business processes. Businesses can create a seamless and efficient system by connecting their software with tools like CRM systems, payroll services, project management, and e-commerce and inventory management platforms.

Outsourcing Accounting Services

Outsourcing accounting tasks to small business accountants can be a smart choice for small businesses. While not mandatory, using a professional accountant or tax expert can provide valuable insights and help you navigate complex tax obligations. Outsourcing can save time, allowing you to focus on core business operations.

However, outsourcing can also lead to potential risks, such as losing control over financial processes and data security issues. When considering outsourcing your accountancy services, it is essential to consider these factors carefully.

Benefits of Outsourcing

Hiring an accountant saves time and money by handling tasks that would otherwise take up essential time. Engaging a bookkeeper can lower fees than traditional accountants, providing a cost-effective solution.

Outsourcing accounting functions ensures greater accuracy and provides access to professional advice from experts in the field. Outsourcing allows businesses to focus on core activities, improving overall operational efficiency.

Finding the Right Accountant

Finding a suitable accountant is crucial for your business’s success. Reviews and recommendations from other companies can be vital in selecting an appropriate accountant. Establishing clear communication and expectations during the onboarding process with an outsourced accountant is essential for a successful partnership.

By choosing the right accountant, small businesses can ensure that their accounting is in capable hands, allowing them to focus on growth and development. Accountancy services can play a crucial role in developing and growing a business.

Best Practices for Maintaining Accurate Financial Records

Accurate financial records are essential for any thriving business. They provide a clear picture of your financial health, enabling informed decisions and driving profitability. For small businesses, accurate records can reduce accountant workload and billable hours.

To deduct expenses, you must keep track of them and maintain proper records. A universal system for claims and receipt attachments is essential for keeping records of employee expenses. Organising and storing receipts electronically is an effective option when using tax filing software.

Regularly Reviewing Financial Information

Regular financial reviews keep you informed about the business’s financial health. Keeping track of records while running a business improves knowledge of the money coming in and going out. These reviews help identify potential areas for cost savings and opportunities for financial growth.

Storing Vital Documents

It’s crucial to securely store important business documents using accounting software, cloud storage solutions, or even traditional paper records. All records should be stored safely and organised, ensuring they are easily accessible when needed.

Additionally, regularly backing up files in the cloud helps prevent the loss or damage of financial documents. Small businesses should keep accounting records for at least six years to comply with legal requirements.

Planning for Year-End Accounts

For a business owner, year-end account planning is critical. Knowing submission requirements and deadlines for annual accounts and returns is vital to bookkeeping.

Self-employed individuals must submit and pay their self-assessment tax return by the 31st of January following the end of the tax year. This process involves calculating your total income and expenses to determine the income tax owed.

Failure to submit end-of-year accounts on time can have consequences, including fines and interest from HMRC and Companies House.

Summary

Mastering small business accounting involves establishing a robust accounting system, implementing essential bookkeeping practices, understanding financial statements, and effectively managing business taxes. Using accounting software and considering outsourcing options can further enhance efficiency and accuracy. Maintaining accurate records and planning for year-end accounts are also crucial for financial stability and compliance.

By following these tips and strategies, businesses can achieve financial clarity and stability, allowing them to focus on growing their businesses. Remember, a well-managed accounting system is the backbone of a successful business. Start implementing these practices today to take control of your finances and drive your business towards success.

Frequently Asked Questions

Why is it important to have a separate business bank account?

A separate bank account is crucial as it simplifies bookkeeping and enhances financial clarity, ensuring compliance with legal requirements. This separation helps protect personal assets and maintain accurate records.

What is the Difference Between Cash-Basis and accrual-basis accounting?

The key difference between cash-basis and accrual-basis accounting is that cash-basis recognises transactions only when cash is exchanged. Accrual-basis records transactions when they are earned or incurred. Choosing the right method depends on your business needs and accounting objectives.

How can accounting software benefit my small business?

Accounting software benefits your small business by automating financial tasks, enhancing accuracy, and offering real-time insights. It ultimately streamlines operations and supports better decision-making.

What are the benefits of outsourcing accounting?

Outsourcing can help save time and reduce costs. It also provides access to expert advice from small business accountants, improving the accuracy of your business finances. By outsourcing, businesses can focus more on their core operations, knowing their finances are in capable hands.

How often should I review my financial information?

You should review your accounts regularly, ideally monthly, to stay informed about your business’s finances and make informed decisions. This consistent practice will help you identify trends and adjust your strategies effectively.

For further reading, check out our accounting basics section.

The post Mastering Small Business Accounting: Essential Tips and Strategies appeared first on Business Accounting Basics.

Tired of working with spreadsheets and manual bookkeeping? Discover the efficiency of QuickBooks Online. The user-friendly platform simplifies your business finances, giving you more time to focus on your business.

• Save 8 hours per week managing your business
• Be cash flow confident with real-time insights
• Free dedicated business support

Don’t miss out on QuickBooks Discount – 90% off for 7 months. Claim your discount now!

Introduction to QuickBooks

QuickBooks is the UK’s leading accounting software, trusted by 6.5 million small business subscribers to simplify their financial management. Its user-friendly tools and features make creating and sending invoices, tracking expenses, and managing taxes a breeze.

QuickBooks also provides valuable insights into your financial health, helping you make informed decisions to grow your business. Whether you are a small business owner or a freelancer, QuickBooks has the tools you need to succeed.

Advantages of QuickBooks Online Accounting Software

Why Intuit QuickBooks is a Game-Changer for Your Business:

• Save Money: With a 90% discount for the first 7 months, prices start from just £1 per month on the QuickBooks simple start plan
• Create and Send Professional Invoices: QuickBooks makes it easy to create and send professional branded invoices, helping you get paid faster.
• Simplified Accounting: QuickBooks makes accounting easy, even for non-financial experts. It handles everything from tracking income and expenses to generating financial reports, saving time and reducing errors.
• Time Savings: Automate tasks like invoicing, expense tracking, and bank reconciliation, freeing up your valuable time to focus on growing your business.
• Accurate Financial Insights: Get a clear, real-time view of your financial health with easy-to-understand reports and dashboards.
• Tax Preparation Made Easy: Simplify tax season with automatic expense categorisation, sales tax tracking, and tax-ready reports. Making Tax Digital (MTD) Ready.
• Improved Cash Flow Management: Get paid faster with professional invoices and payment tracking. Track expenses, identify cost savings, and make informed financial decisions.
• Free 1-on-1 onboarding: A free 45-minute onboarding session with a QuickBooks expert to help you get started.
• QuickBooks Support: There is a wide range of support options, including a resource library with articles, tutorials, and FAQs, phone and chat support, webinars, and a community forum.
• Invite Accountants: Easily invite accountants and bookkeepers to view accounts for assistance and year-end and bookkeeping.
• Connect to over 300 apps: Connect to apps including PayPal, Shopify, Square and many others.

Ready to simplify your finances? Get started with QuickBooks today!

QuickBooks Subscriptions Compared

QuickBooks Online offers a range of plans tailored to the needs of self-employed individuals and small and medium-sized businesses. The Self-Employed plan provides essential features, including income and expense tracking, invoice creation, and mileage tracking, making tax time easier.

Small businesses can choose from QuickBooks Simple Start, which includes VAT management and basic reporting; Essentials, which adds features like bill management and multiple currencies; and Plus, which offers additional tools for inventory tracking, budgeting, and project management.

Compare the different pricing plans below and get the best-discounted pricing QuickBooks deal.

Sign up today for your 90% discount for 7 months.

QuickBooks App

The QuickBooks app is a game-changer for small businesses, making it easy to manage finances on the go. With the app, you can track income and expenses, create and send professional invoices, scan receipts, and even track mileage for tax deductions – all from your smartphone or tablet.

This real-time access to your financial data and detailed reports to make smart choices anytime, anywhere.

QuickBooks App – QuickBooks Discount 90% off for 7 months

Switching to QuickBooks Online

If you are using an alternative software package like Sage, Xero, Kashflow, FreeAgent, or QuickBooks Desktop, you can use Data Switcher to Migrate the data across. The data will include customers and suppliers, nominal codes, opening balances, two years of transactions, sales, purchases, inventory, item lists, and more.

Once the data is transferred, you can still get the free 45-minute 1-1 onboarding session.

QuickBooks Online Discount FAQ

How Do I Get My 90% Discount QuickBooks Offer?

Follow any of the links, and you will be asked to complete a short form to sign up for our newsletter, which offers bookkeeping advice and tips. We will provide a link to the QuickBooks page for your special discount.

I’m an Existing QuickBooks Customer. Can I use the Discount?

Unfortunately, the discount is only valid for new customers.

Is there a QuickBooks Desktop Version?

As of June 1, 2024, support has been withdrawn for QuickBooks Desktop (2020 and older), prompting users to upgrade for continued functionality and security updates.

Which QuickBooks Online Plan do I need?

Every business is different, so choosing the right QuickBooks plan can be difficult. But don’t worry; you can upgrade to a different plan as your business grows. You can also arrange a call with the QuickBooks sales team for more advice.

Do I need a QuickBooks Discount Code?

No, a discount code is not required. Follow the links on this page to access the 90% discount rate. This rate might differ from any current QuickBooks offer on its website.

Can I Cancel the Subscription

While you can cancel your QuickBooks subscription anytime, it’s important to note that doing so will terminate your access to your QuickBooks account and all associated financial data at the end of the billing period.

Can I take out a free one-month trial?

QuickBooks offers a 30-day free trial, but the 90% discount is only available for new customers. With prices low, it is worth taking advantage of the offer.

QuickBooks Offer Conclusion

Don’t miss out on this incredible opportunity to transform your business finances! QuickBooks is offering 90% off for 7 months. It’s the perfect time to start using simplified accounting, saving you time and money.

No matter the size of your business, QuickBooks has the tools you need to succeed. Say goodbye to complex spreadsheets, paper records or alternative software and hello to streamlined financial management.

Take advantage of this exclusive offer and see how QuickBooks can revolutionise your business finances.

Please either sign up for our newsletter below or go directly to QuickBooks for your discount.

For more information on QuickBooks, please read our review.

The post QuickBooks Discount 90% Off for 7 Months: A Deal You Don’t Want to Miss appeared first on Business Accounting Basics.

Our Free QuickBooks vs Xero PDF comparison is available at the end of the page.

Key Takeaways

• QuickBooks Online offers more features at a lower price, including unlimited invoicing, mileage tracking and payroll.
• Xero is a strong competitor with unlimited user access, appealing to larger businesses prioritising collaboration.
• Xero introduced new business plans and pricing structures on 12 September 2024. Part of the pricing structure may require businesses to move to a higher plan for features already in use.

Overview of QuickBooks and Xero

QuickBooks is a significant player in accounting software. Created by Intuit, it quickly became a favourite among small to medium-sized businesses for its user-friendly design and comprehensive features at a low price.

QuickBooks aims to simplify financial management, making it accessible even for those new to accounting. Its interface, pricing and capabilities have made it a go-to solution for businesses looking to streamline their finances.

Xero, launched in 2006, is a cloud-based accounting solution primarily designed for small businesses. Its flexible access and collaboration features stand out, which enhance the user experience through smooth integration and easy accessibility.

Xero and QuickBooks Online target similar users but offer unique features and experiences that we’ll explore in detail.

Key Features Comparison

Knowing the key features of QuickBooks and Xero helps you make an informed decision. Both platforms offer robust tools to manage various aspects of business finance, but they also have advantages.

This section covers three critical areas: Invoicing and Billing, Expense Tracking, and Reporting and Analytics.

Sales Invoicing

Invoicing and billing are essential for any accounting software. QuickBooks stands out with its unlimited invoices, which are perfect for growing businesses with many transactions. To create invoices, QuickBooks offers a selection of built-in templates that allow you to easily customise the design, colour, and font and even add your business logo.

Xero’s Ignite plan limits users to 20 invoices per month, but it offers invoice templates and more customisation by downloading and using Microsoft Word to make changes.

Both Xero and QuickBooks have strong invoicing features. QuickBooks’ unlimited invoicing is better if you handle many invoices. However, if customisation and branding are more important, Xero’s flexible templates could be more appealing.

Managing Expenses and Mileage Tracking

Expense tracking is another feature that both QuickBooks and Xero perform well. QuickBooks includes expense and mileage tracking features across all its plans, making it easier for users to manage their expenses seamlessly. The QuickBooks app allows users to capture receipts, simplifying the expense tracking process.

Xero also offers expense tracking capabilities. However, this is only available from the Grow plan, which costs £33 for 1 person and £2.50 / month for additional users.

Both platforms enable users to manage expenses effectively, but QuickBooks plans offer a lower plan cost for starting to track expenses.

Financial Reports and Analytics

Both QuickBooks Online and Xero provide powerful reporting and analytics tools. They both allow you to save customisable reports and have a vast selection of reports for all business needs. Reports can be exported in PDF and Excel.

While comparing the reporting section, I found that QuickBooks Online has more reports as standard, while most are available on Xero. You need to change the grouping within a report. For example, a list of sales invoices by customer is available as standard on QuickBooks, but on XERO, you choose the accounts receivable and then group by customer.

On the whole, QuickBooks and Xero have similar reporting features.

User Experience and Interface

User experience and interface design play crucial roles in the effectiveness of accounting software. While QuickBooks and Xero prioritise user-friendly designs, the user’s preference for the software will come down to personal preference.

To get a complete idea of user experience, take advantage of the free trial or discounts available.

Mobile App Functionality

Mobile app functionality is increasingly essential for businesses that require on-the-go financial management. QuickBooks Online and Xero offer mobile applications enabling users to manage their finances from anywhere.

QuickBooks and Xero mobile apps offer invoicing on the go, receipt capture, bank reconciliation, and an overview of business finances. The best choice will depend on the user interface and pricing plan.

Calculating Taxes

QuickBooks and Xero offer features that simplify compliance and make tax time less stressful for UK small businesses.

For self-employed people, QuickBooks Online offers tax calculations for self-assessment, VAT, and CIS in one convenient place, meaning you will always know how much you owe. It will provide the figures required for your self-employment.

Xero has VAT and CIS, but CIS is an additional £5 per month. If you use a Xero-certified bookkeeper or accountant, they will easily create your self-assessment figures with their software.

QuickBooks and Xero work hard to comply with Making Tax Digital and are among the first to update their software for new changes.

Payroll

Running a payroll system or outsourcing payroll is crucial if you need to pay employees. This is one area where QuickBooks Online plans are more cost-effective. Their payroll starts from just £1 per month, with the Simple Start plan priced at £16 per month. Payroll makes QuickBooks an attractive option for businesses looking to manage payroll efficiently without breaking the bank.

Xero offers payroll from their Grow plan at £33 per month for one person and Comprehensive at £47 for up to 5 people. For ten people or more, the Ultimate plan is available at £59, with an additional £1 per month per employee over 10, up to 200.

Additional Features

When choosing the best accounting package for your small business, evaluating all the essential features is crucial. These features might include inventory management, point-of-sale integration, bill payment within the software, time tracking, and project tracking.

These features will ensure you select a software package that meets your current needs and supports future growth.

Pricing Plans and Costs

Pricing is a critical factor; both QuickBooks and Xero offer multiple pricing plans, each with unique features.

This section examines the pricing structures of both platforms and discusses the total cost of ownership.

QuickBooks Pricing

QuickBooks Online offers several pricing plans, starting at £10 per month for the Sole Trader plan and £16 for the simple start. With our 90% discount for seven months, prices are from £1 and £1.60 for the first 7 months.

QuickBooks is more cost-effective for self-employed and small businesses with up to 3 users.

Xero Pricing

Xero offers various business plans, starting at £16 per month for its Ignite plan. However, the invoicing and billing are limited. With our 75% discount for 6 months, pricing starts from £4 per month for the first 6 months.

Xero’s most popular plan is the Grow, which costs £33. This plan is recommended for larger and growing businesses and allows more users per plan.

Total Cost of Ownership

The total cost of ownership is a factor when selecting accounting software. Due to different pricing structures and additional features, businesses’ total costs may vary significantly based on their choice between QuickBooks and Xero.

QuickBooks may provide better value in the long run due to the comprehensive feature set included in its plans. Xero might be a better option for larger or growing businesses that require unlimited users.

Businesses must consider their needs and usage to determine the most cost-effective option.

Integrations and Add-Ons

Integrations and add-ons can significantly enhance the functionality of accounting software. Both QuickBooks and Xero support numerous third-party applications, allowing users to extend the capabilities of their chosen platform.

App Integrations

QuickBooks Online supports integration with more than 750 different applications. These include platforms like QuickBooks Time, which streamline invoice management and time tracking. With such extensive integration options, businesses can customise their software to meet their needs.

Xero connects with over 1,000 applications, offering greater flexibility for integration. With such an extensive app system, Xero has become a powerful tool for businesses, allowing them to enhance their accounting capabilities with additional features.

Customer Support and Resources

Customer support and resources are vital aspects of any options. QuickBooks and Xero offer various support channels and educational materials to assist users.

User Onboarding

If you are a new user of QuickBooks Online, they offer a free 45-minute onboarding session that provides guidance and support during the initial setup process. They also offer resources, including guides, webinars, a support hub, and videos.

Xero Provides onboarding resources such as webinars, guides, and videos, empowering you to set up the software at your own pace.

Support Channels

QuickBooks Online provides phone support from Monday to Friday, 8 a.m. to 7 p.m. They also offer live chat Monday through Friday, 8 a.m. to 10 p.m., and weekends, 8 a.m. to 6 p.m. You can also ask the community for help.

In contrast, Xero does not offer dedicated phone support but provides 24/7 online support via its support articles and allows customers to raise cases through Xero Central. You can also request a call back from them.

Learning Resources

Both QuickBooks and Xero offer a variety of educational materials to help users get the most out of their accounting tools. QuickBooks provides a wealth of training resources designed to enhance user proficiency. These include:

• Webinars: Live sessions covering various features and best practices.
• Tutorials: Step-by-step guides to help you navigate the software.
• Community Forums: A space to ask questions and share experiences with other users.

These resources make it easier for users to understand and effectively use QuickBooks and Xero.

Can I Change My Accounting Software?

Yes, you can change. While it may seem daunting, it’s feasible with careful planning and the right tools. Tools are available to change from Xero to QuickBooks or another product.

Check out the software platform you wish to move to and the migration tools it offers. Some can even move two years’ worth of records for you. Remember that you will lose access to the data when you cancel a subscription.

Xero vs QuickBooks Summary

QuickBooks Online and Xero have strengths and weaknesses, offering advanced accounting features. Xero supports unlimited users, making it preferable for larger businesses. With its pricing plans and unlimited invoices, QuickBooks is ideal for small businesses and self-employed, with more features and cheaper plans.

When writing customer reviews on Trust Pilot, favour QuickBooks Online, which scores 4.6 and has over 14,000 reviews. Xero only scores 3.7 with over 7,000 reviews. Most negative Xero reviews are for the new invoicing layout, while others like it.

Consider using Xero for larger teams, while QuickBooks Online may suit smaller businesses with fewer users and Self-employed.

It is worth consulting your accountant for their recommendations. Ultimately, the choice between QuickBooks and Xero depends on your business needs and priorities.

By carefully considering the key features, pricing, user experience, integrations, and customer support, you can make an informed decision that best suits your business.

QuickBooks vs Xero PDF

Still unsure which accounting software is right for your UK small business? We’ve created a handy PDF guide to simplify your decision-making process.

Quickbooks vs Xero Comparison

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Frequently Asked Questions

When will Xero’s new business plans be available?

Xero’s new business plans will be available starting 12 September 2024. They will move existing users to the latest plans and notify them of the new plan in advance.

Are VAT charges included in the pricing?

The pricing for both QuickBooks and Xero’s plans does not include VAT charges. Therefore, you should factor in VAT when considering the total cost.

What are the Other Options?

While QuickBooks and Xero are popular in the UK, there are others worth considering, including:

• Sage – Ideal for complex accounting needs
• FreeAgent – Free for some bank account holders
• FreshBooks – Ideal for small businesses

The post QuickBooks vs Xero: Which is right for Your Small Business? appeared first on Business Accounting Basics.

This article covers QuickBooks pros and cons to help you make an informed decision. Learn about its strengths, weaknesses, and whether it fits your business requirements.

Overview of QuickBooks Online

QuickBooks Online, developed by Intuit, is a popular cloud-based accounting software designed primarily for small and medium-sized businesses. It simplifies various financial tasks, from invoicing and expense tracking to payroll and reporting.

Its user-friendly interface and robust features make it a versatile tool for businesses to manage their finances effectively.

QuickBooks is a popular accounting software solution with over 6.5 million global subscribers. With different pricing plans, businesses can choose the solution that best suits their specific needs and budget.

QuickBooks Pros

The numerous advantages offered by QuickBooks Online make it a preferred choice for many businesses. It helps businesses save time, reduce human error, and gain valuable insights into their business’s finances.

Below are our top 10 advantages of Quickbooks Online.

1. User-Friendly Interface

One of QuickBooks Online’s standout features is its user-friendly interface, designed with both beginners and experienced users in mind.

The dashboard and well-organised menus make locating the tools needed to create invoices, reconcile bank statements, or generate reports simple. With clear instructions and helpful prompts, even those without extensive accounting knowledge can quickly understand and use the software’s functionalities.

2. Invoicing customers and payments.

QuickBooks Online makes invoicing and payment collection easy. You can create and customise professional invoices that reflect your brand. Sending invoices to clients is simple, and you can track their status in real time.

The platform integrates with various online payment processors, allowing you to accept payments through the software.

3. Expense Tracking

QuickBooks Online simplifies expense management by connecting your bank and credit card accounts for automatic transaction categorisation.

The mobile app lets you snap photos of receipts, extracting data automatically. QBO offers mileage tracking for easy travel expense reimbursement for businesses with employees on the road.

You can also create and manage purchase orders, ensuring efficient supplier communication. Paying suppliers is easy with QBO’s online bill-pay functionality.

4. Accounting Reports

QuickBooks Online provides financial reporting that offers valuable insights into your business’s financial health. You can quickly generate various financial statements, including profit and loss, balance sheets, and cash flow statements.

QuickBooks Online makes handling taxes easier by automating tax calculations and generating tax reports, including VAT returns. This automation ensures accuracy and saves time, allowing you to focus on other business tasks while complying with tax regulations.

5. Automation of Tasks

QuickBooks Online automates various tasks to save businesses time and effort. These tasks include:

Bank Reconciliation: QuickBooks Online can automatically import bank and credit card transactions. It matches these transactions to existing entries in QuickBooks, reducing manual effort and minimising errors.

Chasing Customers: QuickBooks simplifies the process of sending payment reminders to customers. You can schedule automatic reminders for unpaid invoices.

Receipt Capture: The mobile app allows you to snap photos of receipts, automatically extracting and categorising relevant information, eliminating the need for manual data entry.

Recurring Transactions: Automate the creation and sending of recurring invoices for regular clients or subscriptions, ensuring timely billing and consistent cash flow.

6. Integration with 3rd Party Apps

QuickBooks Online enhances its capabilities by seamlessly integrating with over 450 third-party applications. This lets businesses connect QBO with popular platforms like PayPal, Shopify, Square, Dext, Salesforce, and project management tools. These integrations streamline workflows, automate tasks, and make it easier for businesses to manage their operations more efficiently.

7. Accessibility and Collaboration

QuickBooks Online offers the significant advantage of cloud-based accessibility, allowing users to:

• Manage business finances from anywhere with an Internet connection
• Access financial data via PC, Mac, tablet, or smartphone
• Ensure data is always up-to-date and backed up in real-time

It supports multi-user access, enabling team collaboration from different locations, and can restrict access to sensitive data.

With QBO, you can collaborate with your bookkeeper or accountant by granting them real-time access to your financial data. This allows accountants to review transactions, reconcile accounts, and prepare financial statements remotely.

8. Regular Updates

QuickBooks Online regularly updates its software, ensuring users have the latest features, enhancements, and security patches. These updates often bring new tools and improved workflows.

Intuit’s commitment to regular updates demonstrates its dedication to providing a top-notch accounting solution.

9. Scalability

As your business grows, you can upgrade your QuickBooks Online plan to access more features and functionalities. Whether a small startup or a rapidly growing enterprise, QuickBooks Online offers plans tailored to your business size and industry needs.

10. Customer Support

QuickBooks Online prides itself on its robust customer support system, readily available to assist users whenever they encounter difficulties or have questions. The platform offers a comprehensive help centre with articles, tutorials, and FAQs.

Depending on their subscription level and preferences, users can contact QuickBooks Online support via phone, email, or live chat if the resources don’t suffice.

Cons of QuickBooks Accounting Software

While QuickBooks Online offers numerous benefits, it’s important to be aware of its potential drawbacks:

1. Cost: The monthly subscription fees can be a significant expense for small businesses with limited budgets, especially as they scale and require more advanced features.
2. Learning Curve: While generally user-friendly, mastering all of QuickBooks Online’s features and functionalities can take time and effort, particularly for those without accounting experience.
3. Internet Dependency: As a cloud-based solution, QuickBooks Online requires a stable internet connection to access and use. In areas with unreliable connectivity, this can disrupt workflow and hinder productivity.
4. Limited Offline Functionality: While QuickBooks Online does offer a mobile app with some offline capabilities, its full functionality is only available with an internet connection.
5. Potential for Errors: While automation is a significant advantage of QuickBooks Online, it also introduces the potential for errors. Incorrect data entry or misconfigured settings can lead to widespread issues that require time-consuming corrections.
6. Feature Limitations in Lower-Tier Plans: Some advanced features, such as inventory management and project tracking, might only be available in higher-tier plans.

QuickBooks Online Pricing

QuickBooks Online offers various pricing plans to fit different needs and budgets. Whether you’re a freelancer, sole proprietor, or a growing business with multiple users, there’s a plan for you. Options range from basic individual plans to more comprehensive packages for larger businesses.

We offer a 90% discount for 7 months, which means pricing starts from just £1 per month.

More Quickbooks Online Features

Inventory Management

QuickBooks Online helps businesses manage inventory by tracking stock levels, costs, and sales. Users can easily add and organise inventory items, set alerts to reorder stock and monitor quantities in real-time.

QBO also supports purchase orders, converting them into bills for easier supplier payments. Businesses can generate inventory reports to analyse sales trends and identify top-selling or slow-moving products.

While QBO’s inventory features suit many small businesses, those with complex needs might require dedicated inventory software for a more robust solution.

Time Tracking and Job Costing

QuickBooks accounting software, in conjunction with its integrated app, QuickBooks Time, offers comprehensive time tracking and job costing features. Employees can easily track their hours worked on specific projects or tasks through the web interface or mobile app. This data integrates with QuickBooks Online, allowing businesses to accurately track labour costs, bill clients for billable hours, and gain insights into project profitability.

QuickBooks Payroll

QuickBooks Payroll simplifies payroll management for small business owners and ensures compliance with HMRC regulations. It automates calculations for PAYE taxes, National Insurance contributions, student loan repayments, and pension contributions, reducing errors and penalties.

With QuickBooks Payroll, you can run payroll, generate payslips, submit Real Time Information (RTI) to HMRC, and manage employee benefits and deductions. The software updates automatically to reflect changes in tax laws, ensuring compliance and saving time. Note that the payroll feature has an additional monthly cost.

QuickBooks Pros and Cons Conclusion

QuickBooks Online is a powerful tool for small businesses to manage their finances. It offers a range of features and an easy-to-use interface designed to save time, reduce errors, and provide valuable financial insights.

While there are some drawbacks, such as cost and a learning curve, the benefits of efficiency, accessibility, and scalability often outweigh these downsides. By choosing QuickBooks Online, small businesses can invest in a platform that grows with them, ensuring financial success in the digital age.

Frequently Asked Questions

What are the main advantages of QuickBooks?

QuickBooks offers the advantage of automating time-consuming tasks, sending custom invoices and quotes, tracking income and expenses, and running your business in the cloud. It helps you save time, maintain professional communication, track finances, and access your data conveniently.

What is QuickBooks Best For?

QuickBooks Online excels as a comprehensive accounting solution for small—to medium-sized businesses. It simplifies tasks like invoicing and expense tracking. Its user-friendly interface and cloud accessibility make it a practical choice for those seeking to manage finances efficiently from anywhere.

Is there a QuickBooks Desktop Version?

As of 2024, Intuit has discontinued support for QuickBooks Desktop, meaning no further updates or security patches will be released. This change has led many businesses to transition to QuickBooks Online for continued support, automatic updates, and access to the latest features.

Alternatives to QuickBooks

QuickBooks is one of the leading accounting software providers in the UK. It is recommended that you look at alternatives to ensure that you choose the best option. Read our guide on QuickBooks vs. Xero for more information and our other reviews.

The post QuickBooks Pros and Cons for Small Businesses appeared first on Business Accounting Basics.

Staying on top of your finances is vital as a small business owner. One essential task is managing and reconciling your bank transactions with your accounting records. This is where the integration between a free business bank account or challenger account and Intuit QuickBooks comes in.

In this article, we will look into the advantages of a free business bank account, Intuit QuickBooks Online and how they work together.

What is a Free Business Bank Account?

A free business bank account is an account specifically designed for small businesses. Here are the advantages of free bank accounts:

• No monthly fees: This can save you significant money, especially if you’re not generating high income yet.
• Widely available: Most banks offer some type of free account.
• Often comes with mobile banking: This allows you to quickly check your balance, deposit checks, and transfer money on the go.

A dedicated business bank account clearly distinguishes between your personal and business finances, allowing for efficient tracking and management. By keeping these accounts separate, you can easily keep track of your business expenses, profits, and financial transactions without any mix-up with personal spending.

Where can I get a Free Business Bank or Challenger Account?

Before deciding if a free business bank account is right for you, it’s essential to research and compare different options. Sometimes, a free account is not suitable for your business; this may include loans, overdrafts and larger businesses.

Many banks offer free business bank accounts; you must research to find the best one for your needs. Some popular options include Starling, Tide and Mettle. Compare different offers and see which one works best for your business.

Advantages of Intuit QuickBooks Online

QuickBooks is one of the leading accounting software providers in the UK. Here are the top advantages:

• Easy to use: Even if you’re not a financial expert, QuickBooks can help you track your income and expenses, create invoices, and generate reports.
• Helps track income and expenses: This is essential for any business, but it can benefit freelancers with irregular income.
• Automates tasks: QuickBooks can automate tasks like sending invoices and paying bills, saving you time.
• Generates reports: QuickBooks can generate various reports, such as profit and loss statements and balance sheets. This information can help you understand your business’s financial health and make financial decisions.

With pricing from £10 for a sole trader and £14 for a Limited company, QuickBooks Online is a cost-effective solution for managing your business finances. Sign up with our referral link, and you will receive a 90% discount for 7 months.

Advantages of Integration with QuickBooks

Integrating your free business bank account with QuickBooks can offer numerous advantages for managing your finances. Here are the top advantages:

• Automatic Data Import: QuickBooks can automatically pull your transactions directly from your bank using Open Banking, saving you the time and hassle of manually entering them. This also reduces the risk of errors.
• Real-Time Updates: You’ll have access to up-to-date information on your finances. This allows for better cash flow management and more accurate financial reporting.
• Complete View: You can connect all your business bank accounts and credit cards in one place, giving you a view of your finances.
• Reconciliation Assistance: QuickBooks can help automate some aspects of bank reconciliation, making it less tedious.

How to Integrate Your Bank Account to QuickBooks

Integrating your free business bank account with QuickBooks is a simple process. Most banks connect to QuickBooks using Open Banking, making linking your accounts easier.

QuickBooks provides a complete list of all the banks supported through Open Banking; check to see if yours is listed.

Setting up a New Bank Account in QuickBooks Online

Setting up a new one is easy if you haven’t already linked your bank account to QuickBooks.

Go to the Banking tab and click on “Add Account”. You will then be prompted to search for your bank and be redirected to your bank’s secure login page.

You’ll be prompted to grant QuickBooks permission to access your financial data. This process is secure and follows Open Banking regulations, prioritising user control over their information.

Select the start date to pull the transactions; some banks only allow up to 90 days, while others may allow up to 2 years.

Once the connection is established, QuickBooks will securely import your bank transactions daily. The bank feed will need refreshing every 90 days.

Matching Bank Transactions in QuickBooks

After your bank transactions are imported, you can easily match them to the corresponding entries in QuickBooks. The entries might include sales invoices, bills or receipts.

Go to the Banking tab and click “Match or Assign to” next to each transaction. You can review the matching records and make necessary changes before confirming the match.

Banking Rules in QuickBooks

QuickBooks also allows you to set up banking rules for recurring transactions. This means the system will automatically categorise and assign them to the appropriate accounts once banking rules are set up, saving you time and effort.

Categorise the Bank Transactions

If a bank transaction can’t match a transaction or a bank rule does not apply, you can manually categorise the transaction to the correct chart of accounts code and add the transaction details, including supplier or customer, VAT and a memo for reference.

Bank Reconciliation

A crucial task in financial management is bank reconciliation, which is essential for ensuring the accuracy of your records. Any discrepancies can be identified and corrected by comparing your bank transactions with your bank statement.

The dashboard will show how many transactions require reconciling, as well as the bank balance and the balance in QuickBooks. Once you have checked and matched all transactions, the balances should match. If not, it is essential to go back and check for any errors, duplicates or missing entries.

Integrating a free business bank account and QuickBooks makes this process easier and more accurate.

The Power of Intuit QuickBooks

QuickBooks is a leading accounting software trusted by millions of small businesses worldwide. It offers comprehensive financial management features, including invoicing, expense tracking, and financial reporting.

Integrating your free business bank account with QuickBooks allows you to streamline your financial management process and have all your essential financial information in one place.

Ready to Get Started?

Using a free business bank account and Intuit QuickBooks together can significantly benefit your business finances. From easy integration to efficient bank reconciliation, this combination will make your life as a business owner much more manageable. So why wait? Sign up for a free business bank account and start using QuickBooks today!

The post Why Use a Free Business Bank Account and QuickBooks? appeared first on Business Accounting Basics.

Computerised accounting is an efficient and cost-effective way to keep track of your business transactions. By entering data into an automated system, you can quickly analyse and report on financial information, helping you make better decisions about managing your own business finances.

This guide will provide an overview of what computerised accounting is, its benefits and the different types of software available. With this knowledge, you can decide which system is best for your business needs.

What is Computerised Accounting?

Computerised accounting (or computerized accounting) is a form of bookkeeping that uses computers and specialised software or spreadsheets to record financial transactions. Instead of manually writing out each entry in a ledger, computerised systems allow you to enter accounting information into an automated system and generate reports quickly and accurately.

Computerised accounting systems are designed to be user-friendly, making the whole process more efficient and cost-effective. Having all your financial information in one place, you can easily monitor your income and expenses, analyse trends over time, and make informed decisions about managing your finances.

The Evolution of Accounting

Computerised accounting has revolutionised the way businesses manage their finances. Before computers, bookkeepers manually recorded every transaction in a ledger or journal. With the advances in using computers, data can be entered quickly and accurately into an automated system, eliminating hours of tedious manual work.

This technology has improved the accuracy of financial reports and made it easier for businesses to identify areas of improvement. Data can be interpreted faster, enabling businesses to make better decisions about how they run their operations.

Read our introduction to accounting history.

Understanding Computerised Accounting

Accounting systems are designed to help businesses manage their finances more efficiently and accurately. Some of the key features they offer include:

• Automated Data Entry: This feature allows you to quickly and easily enter financial information into an automated system, eliminating the need for manual data entry and reducing the number of errors.
• Customisable Reports: You can generate customisable reports and analyses with just a few clicks. This helps you identify trends and areas of improvement quickly and easily.
• Security: Most computerised accounting systems have built-in security features to protect your data from unauthorised access.
• Cloud Accounting: Cloud-based accounting systems enable you to access financial data from anywhere, anytime. This makes it easy to stay on top of your finances no matter where you are.

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Types of Computerised Accounting Software

Various software packages are available, each offering different features and benefits. The most popular types of software include:

Excel Bookkeeping

Some businesses prefer to use systems they know and use Excel. At Business Accounting Basics, we have created over 26 free Excel bookkeeping templates to assist with various accounting tasks.

General Ledger Software

Designed to help you track your financial transactions and generate financial statements quickly and accurately.

Payroll Software

Payroll software helps businesses manage their payroll process more efficiently. It can automate payroll calculations, generate paychecks and ensure compliance with tax regulations.

Budgeting Software:

This software helps you create and manage budgets for your business more effectively. You can track spending, analyse trends over time and identify areas where money is wasted.

Choosing the Right Computerised Accounting System

Choosing the right computerised accounting software for your business can be a challenge. When deciding, you should consider factors such as cost, features, security and ease of use. You may also want to consult an accountant or financial expert to get their advice on which system is best for you.

It’s also essential to make sure the software is compatible with other systems you may be using, such as payroll or budgeting software. This will ensure that all your financial data is stored in one place and can be easily accessed.

Benefits of Computerised Accounting

Computerised accounting offers a range of benefits for businesses, including:

• Reduced Costs: By automating the accounting process, you can save time and money by eliminating manual labour.
• Improved Accuracy: Automated systems help ensure accuracy in data entry and reporting.
• Enhanced Security: Computerised accounting systems have built-in security features to protect your data from unauthorized access.
• Increased Efficiency: With computerised accounting, you can generate reports quickly and accurately, enabling you to make better decisions about managing your finances.
• Scalability: Using a computerised accounting system, you can easily scale up or down as your business needs change. This ensures that you only pay for the features and services you need.

Key Features of Computerised Accounting

Key features of computerised accounting for a small business to look at include:

• Stock and inventory tracking – if a business holds stock, the stock must be accounted for.
• Invoice Management – This allows businesses to keep track of their invoices and payments.
• Tax Compliance – software can help with filing tax returns and ensure that businesses remain compliant with taxation rules.
• Multi-currency support – if you deal with foreign exchange.
• Automated data entry for accounting transactions – Includes importing bank transactions and purchase invoices.
• Automated invoice generation – invoice customers quickly and accurately.
• Customisable Financial Reports – Produce financial statements including balance sheet, profit and loss, cash flow statement, trial balance, sales and purchase ledger.
• Budgeting features – Create and manage budgets for your business more effectively.
• Data Security – Protect your financial records from unauthorised access. By setting different user access, you can restrict certain information.
• Easy access to financial information at any time – By using cloud accounting, data financial information is available at any time.
• Making Tax Digital (MTD) – Software can be used to ensure businesses remain compliant with Making Tax Digital legislation for VAT and Self-assessment.

Popular Computerised Accounting Systems

There are many different computerised accounting systems available. The choice of accounting software depends on the business needs. please read our QuickBooks vs. Xero comparison for more information. Some of the best accounting software includes:

Xero – Xero is a popular cloud-based accounting system that lets you manage your finances from any device. It features automated data entry, customisable reports and secure access. Xero has additional apps to integrate, enabling a business to incorporate other features.

QuickBooks – QuickBooks is an accounting software package designed for small business owners. It comes with a range of features such as invoice management, CIS, budgeting tools and tax compliance.

Sage Software – An all-in-one system that offers a range of features to help businesses manage their finances more efficiently and accurately. It includes invoicing, reporting and budgeting tools.

FreshBooks – This cloud accounting system is designed to be easy to use and offer businesses greater visibility into their finances. Features include invoicing, bill payment reminders and expense tracking.

Pandle – Offers small businesses the option to a free version with reduced features, but suits the needs of basic accounting by recording its financial transactions.

FreeAgent – This cloud accounting system is designed to make complex accounting tasks easy. It comes with features such as invoicing, time tracking and project management tools.

Transitioning to a Computerised Accounting System

Step-by-step guide

Transitioning to a computerised accounting system can be daunting. To help make the process smoother, here is our step-by-step guide:

1. Decide whether cloud or desktop software is right for your business. Consider factors such as cost, security and ease of use before deciding.
2. Research different software systems and read user reviews to understand which is best for you.
3. Consult with a financial expert or accounting services for advice on the most suitable for your business.
4. Create a list of must-have features and ensure that any software you choose has them.
5. Ensure the software you select is compatible with other systems, such as payroll or budgeting.
6. Once the system is selected, take a free trial and arrange for training and a smooth transition from your old system to the new one if needed.
7. Ensure that any critical financial records are backed up before making the switch.
8. Carefully review all settings and configurations in the new system to ensure everything is set up correctly.
9. Test the system with transactions and ensure it functions appropriately before going live.
10. Monitor the system’s performance regularly and make updates or adjustments as needed.

By following these steps, you can be confident that you are successfully transitioning to a computerised account for your business. Some companies, including Move My Books, can easily convert the data to the new system for you.

Potential challenges and tips for overcoming them

Transitioning to a new computerised accounting system can be challenging, and potential issues may arise. Here are some of the common challenges businesses face and tips for overcoming them:

Learning curve

Accounting software can be complex, so it is essential to have proper training and ensure all accounting staff members understand how to use the system.

Security

Data security should be a top priority when selecting accounting software, so make sure that you choose one which meets your security needs.

Compatibility

Make sure that any software you choose is compatible with other systems you may already have in place, such as payroll or budgeting software.

Integration of historical data

If transitioning from one system to another, you must ensure that any important historical data is transferred correctly.

By taking the time to research and select an appropriate accounting software system for your business and familiarising yourself with it before going live, you can ensure a successful transition and make the most of your computerised accounting system.

The Future of Accounting

The future of accounting is exciting, with ever-evolving technology providing new opportunities and challenges for businesses.

Artificial Intelligence (AI) will play a vital role in the future of accounting by automating manual tasks such as data entry and preparing reports. This will enable accountants to focus on more strategic activities rather than day-to-day operations.

Cloud computing will continue to revolutionise the way businesses manage their finances. It will provide greater visibility and control over financial data, allowing businesses to access insights and make informed decisions quickly.

Conclusion on Computerized Accounting Software

A Computerized accounting system is a powerful tool that can help businesses make sense of their financial data and streamline processes. By selecting the right system and taking the time to transition successfully, companies can ensure they are making the most of their accounting software and reaping the benefits it offers.

The future of accounting looks promising, thanks to the game-changing combination of AI and cloud computing. These technologies are revolutionising how businesses handle their financial data, making it easier to access, use, and manage. The right accounting software system can provide the tools to help businesses stay up-to-date with the latest technology and make the most of these opportunities.

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QuickBooks Desktop Support to End in 2023: What You Need to Know

QuickBooks is one of the most popular accounting software solutions for small businesses. However, Intuit, the company that owns QuickBooks, has announced that it will end support for the desktop version of QuickBooks in 2023. This means that users of QuickBooks desktop will no longer receive bug fixes, security updates, or technical support from Intuit.

This news has understandably caused some concern among QuickBooks users. After all, QuickBooks is a critical tool for many small businesses, and the loss of support could significantly impact their operations.

So, what does this mean for QuickBooks desktop users? Here are a few things to keep in mind:

• You will no longer receive bug fixes or security updates. This means that your QuickBooks software could become vulnerable to security threats. It is important to keep your software up to date with the latest security patches in order to protect your data.
• You will no longer receive technical support from Intuit. If you have any problems with your QuickBooks software, you will need to find a third-party vendor to provide support. This could be more expensive than receiving support from Intuit.
• You may need to upgrade to a newer version of QuickBooks or an alternative. Intuit has a cloud-based version called QuickBooks Online. If you want to continue using QuickBooks, you will need to upgrade to the new version.

If you are a QuickBooks desktop user, it is important to start planning for the end of support in 2023. Here are a few things you can do:

• Upgrade to a newer version of QuickBooks. This is the best way to ensure that you will continue to receive bug fixes, security updates, and technical support from Intuit. We will look into this in more detail below.
• Start using a cloud-based accounting solution. Cloud-based accounting solutions are constantly being updated with new features and security patches. This means that you will always have access to the latest version of the software and that your data will be protected. There are lots of products available, including free accounting software.
• Continue using the QuickBooks Desktop version. This is not advisable as it is outdated and doesn’t have the features or security of newer versions. If you use an outdated version you risk the possibility of the system crashing and losing data. The new QuickBooks Online version will give you the opportunity to manage your business finances more efficiently.

The end of support for QuickBooks desktop is a significant event for small businesses. However, by planning ahead, you can minimise the impact of this change.

Convert to QuickBooks Online

Move My Books is a powerful tool that makes it easy to convert QuickBooks Desktop 2009 onwards to QuickBooks Online. With Move My Books, users can transfer all of their important data including chart of accounts, customers, vendors, inventory items, invoices and more. It also supports the conversion of multiple currencies and transactions across different fiscal years.

The entire process is automated and only takes a few moments to complete. Additionally, the interface is intuitive and user-friendly so anyone can use this powerful tool without any technical experience. With Move My Books, you can quickly and easily migrate from QuickBooks Desktop to QuickBooks Online in minutes!

Change from QuickBooks Desktop to an Alternative Online Accounting Software

With QuickBooks Desktop ending support, it may now be time to look at alternatives. It’s important to choose the right one for your business needs. Before making a decision, consider what features you need, how easy it is to use, and the cost of the software. With the wide range of accounting solutions available, it can be difficult to make a choice, so take some time to do your research. For further information, please read our QuickBooks vs. Xero comparison.

A good accountant will be able to help you make an informed decision on the right package for your business needs. Remember, the right software can have a big impact on how efficient and successful your business is. So it’s important to get it right!

Once you’ve chosen the right accounting software for your business, there are a few things you will need to do to transfer the information including:

• Choose a suitable date to transfer to the new accounting software. A year-end is a good choice.
• Choose an alternative accounting software that fits your business needs and budget.
• Sign up for a plan suitable for your business
• Make sure you keep a backup of the desktop data, as all records are required to keep for at least 6 years.
• Either use Move My Books or see if there is an alternative for the software chosen.
• Print a trial balance report – this shows all the figures for the date of transfer
• Set up the business data, including business name, address, email, chart of accounts, year-end date, VAT details and invoice templates.
• Enter the opening balances from the trial balance.
• Review, validate, and test that everything has transferred correctly to make sure all data is present and accurate.

If you are unsure of any of the processes an accountant or bookkeeper can help, they should have the experience and knowledge to transfer the data.

Alternatives to QuickBooks Desktop

QuickBooks Online

QuickBooks Online is a cloud-based accounting software designed for small to medium-sized businesses, offering a range of features to help manage finances more efficiently. As a cloud-based solution, it provides the added convenience of accessing your financial data from anywhere with an internet connection.

Main Features and Benefits:

• Invoicing and billing
• Expense tracking
• Bank reconciliation
• Payroll
• Inventory management
• Multi-currency support
• VAT and tax compliance
• Reporting
• CIS

Pricing (UK): QuickBooks Online offers five pricing plans to cater to different business needs:

1. Self-employed: £10/month for sole traders not registered for VAT
2. Simple Start Plan: £14/month for director only or small businesses
3. Essentials Plan: £20/month for small businesses with 3 users and suppliers
4. Plus Plan: £34/month for business with stock and projects
5. Advanced: £70/month for bespoke reporting and permissions

In summary, QuickBooks Online is a powerful and user-friendly accounting solution that caters to a wide range of business needs. Its cloud-based nature allows for easier collaboration, real-time data access, and seamless integration with numerous third-party applications.

Zoho Books

Zoho Books is a cloud-based accounting software that offers a range of features for small to medium-sized businesses. It’s an excellent alternative to the QuickBooks desktop version.

Main Features and Benefits:

• Invoicing and billing
• Expense tracking
• Inventory management
• Banking integration
• Multi-currency support
• VAT and tax compliance
• Financial reports

Comparison to QuickBooks Desktop:
Zoho Books provides a more affordable solution with a user-friendly interface than some alternatives. It also offers better integration with other Zoho applications, which can be beneficial for businesses using multiple Zoho products.

Suitability:
Ideal for small to medium-sized businesses that require a comprehensive yet cost-effective accounting solution.

Pricing (UK):
Free Plan: Up to 3 users, limited features
Standard Plan: £6/user/month
Professional Plan: £12/user/month
Premium Plan: £18/user/month

Xero

Xero is a popular cloud-based accounting software designed for small to medium-sized businesses.

• Main Features and Benefits:
• Invoicing and quotes
• Bank reconciliation
• Inventory management
• Payroll
• Expense claims
• VAT returns
• Multiple currency support

Comparison to QuickBooks Desktop:
Xero offers a more modern and user-friendly interface compared to QuickBooks Desktop. It also provides better collaboration tools and access to real-time data.

Suitability:
Suitable for small to medium-sized businesses looking for a user-friendly and feature-rich accounting solution.

Pricing (UK):
Starter Plan: £10/month
Standard Plan: £24/month
Premium Plan: £30/month

Sage Business Cloud Accounting

Sage Business Cloud Accounting is a comprehensive accounting solution designed for small to medium-sized businesses.

Main Features and Benefits:

• Invoicing and quotes
• Cash flow management
• VAT and tax compliance
• Bank reconciliation
• Payroll integration
• Reporting and analytics

Comparison to QuickBooks Desktop:
Sage Business Cloud Accounting provides a more streamlined user experience and offers additional features such as cash flow management and payroll integration.

Suitability:
Ideal for small to medium-sized businesses looking for a robust accounting solution with advanced features.

Pricing (UK):
Accounting Start: £12/month
Accounting: £24/month

Bokio

Announcement – From 30th September 2023, Bokio will remove the free version and create a single paid plan at £19.95 per month. This new plan will include all the existing features, plus unlimited invoices and contacts.

We want to ensure our customers get the best value for their money, so we’re also offering a 30-day free trial on the paid plan. You can start using Bokio today without any risk – if you don’t love it then just cancel before your trial ends

Bokio is a free cloud-based accounting software designed for small businesses and freelancers.

Main Features and Benefits:

Invoicing
Expense management
VAT returns
Bookkeeping
Reporting

Comparison to QuickBooks Desktop:
Bokio is a simpler and more affordable option compared to QuickBooks Desktop, making it an attractive choice for small businesses and freelancers on a tight budget.

Suitability:
Best suited for small businesses, freelancers, and startups that require basic accounting functionality without the added cost.

Pricing (UK):
Free Plan: Basic features
Additional paid add-ons available for extra features

FreeAgent

FreeAgent is a cloud-based accounting software designed specifically for freelancers, small business owners, and their accountants. It is free for business current account holders with Natwest, Royal Bank of Scotland or Ulster Bank NI.

Main Features and Benefits:

• Invoicing and expenses
• Bank reconciliation
• Time tracking
• Project management
• Payroll
• VAT and tax compliance

Comparison to QuickBooks Desktop:
FreeAgent offers a more tailored solution for freelancers and small business owners with a simpler interface and specialised features.

Suitability:
Perfect for freelancers, sole traders, and small businesses looking for an easy-to-use accounting solution with features specifically designed for their needs.

Pricing (UK):

Free for business current account holders at Natwest, Royal Bank of Scotland, Ulster Bank NI or 1 monthly transaction with Mettle.
Sole Trader Plan: £9.50/month for the first 6 months, then £19/month
Partnership/LLP Plan: £12/month for the first 6 months, then £24/month
Limited Company Plan: £14.50/month for the first 6 months, then £29/month

QuickBooks Desktop Support Conclusion

In conclusion, the discontinuation of support for Quickbooks Desktop is a major change that small business owners should take into consideration. While it may have been a reliable and efficient accounting software for many years, it will no longer be supported or updated. Therefore, small business owners should look into alternative accounting software that offers better support and features so they can continue to effectively manage their finances.

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In this article, we will explore the top five mobile apps that cater to the unique requirements of small businesses, focusing on their features, ease of use, and pricing. We will also provide insightful analysis to help you choose the best app for your specific business requirements and offer tips and tricks for optimising the desired app.

Why is Accounting Important for Small Businesses?

Accounting is essential for small businesses as it helps them:

1. Monitor their financial health and make informed decisions, including cash flow.
2. Comply with tax regulations and avoid penalties.
3. Track expenses and revenues, enabling them to identify areas for improvement.
4. Enhance credibility with lenders, investors, and customers.

However, the small business owner faces challenges like limited time, lack of accounting knowledge, and budget constraints while managing their accounts. This is where mobile apps can be a game-changer.

Advantages of using Mobile Accounting Apps

Mobile accounting apps offer several advantages for small business owners and entrepreneurs, simplifying their financial management tasks. Some of the key benefits include:

Accessibility

Mobile accounting apps allow users to access their financial data anytime, anywhere, as long as they have an internet connection. This enables business owners to make informed decisions even when away from their office or computer.

Create Invoices on the Go

Creating and sending professional invoices quickly is a key requirement for small businesses. Mobile accounting apps allow users to create, modify, and send invoices with just a few taps on their smartphone or tablet. It will also show any overdue invoices to remind customers about payments.

Integration with Business Bank Accounts

Many modern accounting apps allow users to connect their bank accounts directly and sync the transactions in real time. This makes it easier to monitor and track the income and expenses of the business, eliminating the need for manual entry.

Time-saving:

Automated features like invoicing, expense tracking, and importing bank transactions and bank feeds save time by reducing manual data entry and streamlining accounting processes.

Ease of use

Most mobile accounting apps have intuitive interfaces and user-friendly designs, making it easy for non-accountants to manage their finances without any prior accounting knowledge.

Integration

Many mobile accounting apps integrate with other business tools like CRM, inventory management, and payment processing systems, allowing seamless data sharing and streamlined workflows.

Data security

Cloud-based mobile accounting apps store data in secure servers with regular backups and strong encryption, ensuring that sensitive financial information remains safe and protected.

Scalability

As your business grows, mobile accounting apps can accommodate additional users, transactions, and features, allowing you to scale up your financial management capabilities without complex software upgrades.

Cost-effective

Mobile accounting apps generally offer subscription-based pricing models, making them affordable for small businesses with limited budgets. Additionally, these apps reduce the need for hiring additional accounting staff, as many tasks can be handled in-house.

By leveraging these advantages, small business owners can streamline their financial management processes, improve decision-making, and focus more on their core business operations.

How to Choose the Best Accounting App

With so many accounting apps available in the market, choosing the best one for your business can be difficult. Here are some tips to help you find the right app:

Research and compare different accounting apps. Before deciding, look for features like automated invoicing, expense tracking, bank integration, data sharing, scalability, and affordability.

• Read user reviews and ratings to get an idea of the app’s performance and user experience.
• Check if the app integrates with other business tools.
• Check if the app offers good customer support in case you have any issues or queries.
• Test out the free trial version to see how the app works and how easy it is to use.
• Choose an accounting app that meets your business needs without breaking the bank.
• Speak to small business accounting professionals. If you have a bookkeeper or accountant ask them which application is the best for your business, they might even offer a discount.

Top 5 Mobile Accounting Apps for Small Business

1. QuickBooks Online Accounting Software – Best Accounting app for self-employed

QuickBooks Online Accounting Software is the ideal accounting app for self-employed professionals and small business owners. With QuickBooks’ intuitive interface and user-friendly design, even non-accountants can easily navigate through its powerful tools without any prior accounting knowledge.

The app also integrates with other business applications like CRM systems and payment processing services for seamless data sharing between different platforms. With its time-saving automation capabilities and cost-effective subscription pricing model, QuickBooks allows you to take control of your financial management processes while freeing up more resources to focus on growing your core business operations.

Some of its key features include:

• Invoicing, expense tracking, and sales tax management.
• Integration with third-party apps like PayPal and Shopify.
• Real-time financial reports and insights.
• Automatic backups and data security.
• Making Tax Digital Ready
• Tracking Mileage
• Manage Cash Flow
• Link bank account

Pricing: Starts at £14/month for the Simple Start plan and £10/month for the self-employed plan.

2. FreshBooks – Small Business Accounting Software

FreshBooks UK is a cloud-based software designed specifically for small businesses. With its intuitive user interface and powerful features, FreshBooks makes it easy to keep track of finances, manage cash flow, and generate invoices with just a few taps on their smartphone or tablet. It also offers integration with bank accounts for real-time transaction tracking and synchronization.

Some of its key features include:

• Customizable invoicing and online payment processing.
• Time tracking and project management.
• Manage expenses.
• Reconcile bank accounts
• Capture receipts

FreshBooks accounting software pricing starts at £12/month for the Lite plan for five billable clients. The most popular package is the Plus £22/month for 50 billable clients, which includes double entry bookkeeping, mileage tracking and inviting your accountant.

Sage Mobile App

Sage Mobile App is a cloud-based accounting application for small and medium-sized businesses. It is an extension of Sage Business Cloud Accounting, which allows users to manage their financials on the go. The app provides various features that cater to various accounting needs, making it easier for business owners to keep track of their finances.

Some key features of the Sage Mobile App include:

• Create quotes and estimates
• Invoicing
• Receive payments
• Enter bills and receipt capture
• Manage contacts

Sage Business Cloud Accounting offers three pricing plans for its UK customers:

1. Accounting Start: This plan is designed for small businesses and sole traders who need essential accounting tools. It includes features like invoicing, expense tracking, and cash flow management. The price for the Accounting Start plan is £12 per month.
2. Accounting: This plan is suitable for growing businesses that require more advanced accounting features, such as VAT management, multi-currency support, and project tracking. The price for the Accounting plan is £26 per month.
3. Accounting Plus: This plan offers a full range of features and is suitable for businesses that need integrated payroll, tax management, multi-currency, budgeting, and forecasting tools. The price for the Accounting Plus plan is £33 per month.

3 Months FREE on Sage Business Cloud Accounting Standard

4. Xero – Best Accounting Software for Small Businesses

Xero is a cloud-based accounting software that helps small businesses easily manage their accounting records. It offers various features designed to automate the tedious tasks associated with accounting and bookkeeping while giving users real-time visibility into all aspects of their financial operations.

Some key features of Xero include:

• Invoicing, quotes, and purchase orders.
• Inventory management and expense tracking.
• Bank reconciliation and real-time cash flow updates.
• Integration with over 800 third-party apps.
• Multiple Currencies
• Unlimited numbers of users
• Automate Recurring Invoices

Xero offers three pricing plans for its UK customers:

5. Zoho Books

Zoho Books is an accounting software solution designed for small and medium-sized businesses. It provides users with comprehensive tools to manage their financial operations, from invoicing to bookkeeping and more.

One significant advantage of Zoho Books is that it will grow with your business, from its free plan to its additional 40 apps for various business tasks.

Some key features include:

• Invoicing, billing, and online payment processing.
• Time tracking and project management.
• Inventory tracking and order management.
• Automated workflows and custom functions.
• Mileage tracking
• Multi-Currency
• Unlimited users

Zoho Books pricing in the UK is:

A completely FREE plan for a single user for up to 1,000 invoices per year.

The standard plan is £10/month, designed for freelancers and sole traders, and has up to 5,000 invoices, bank feeds, and three users.

The professional plan is £20/month, with features such as sales and purchase orders, exchange rates and stock tracking.

Do you want even more? Zoho has produced an app for the Apple watch.

Android or iOS Accounting App?

The good news is that all the leading accounting software providers provide Android and iOS apps so you can access and manage your accounts on the go. However, the features available in each app may vary depending on the platform, so it’s worth researching to find out which app offers the best features for your needs.

Choosing the Right App for Your Business

To select the best app for your small business, consider factors such as your business size, industry-specific requirements, and budget. For instance, QuickBooks Online and Xero offer advanced features and integrations, making them suitable for growing businesses. On the other hand, FreshBooks and Zoho Books are ideal for service-based businesses that require time tracking and project management.

Tips and Tricks for Optimizing Your Chosen Accounting App

To get the most out of your chosen accounting app, follow these tips:

1. Regularly update your financial data to ensure accurate reporting.
2. Utilise built-in reporting features to track your business’s performance.
3. Automate repetitive tasks, such as invoicing and expense tracking, to save time.
4. Leverage integrations with other apps to streamline your workflow.

Alternatives to Mobile Accounting Apps

Although accounting apps are good when you are out on the road or just away from the office, there are some alternatives when you’re in the office. The top mobile apps have an online version of their accounting software making it easier to view your financial records. There are also some alternatives, including free bookkeeping software and Excel bookkeeping templates.

Small Business Accounting Software

While mobile accounting apps offer convenience and accessibility, there are several reasons why a business might choose to use the online version of accounting software instead:

Full functionality

Online versions of accounting software typically provide more comprehensive features and tools than their mobile app counterparts. This allows businesses to perform complex accounting tasks and generate detailed financial reports that may not be available on the mobile app.

Larger screen

Working on a computer or laptop provides a larger screen and better visibility, making navigating through multiple windows, viewing detailed financial data, and creating detailed reports easier.

Keyboard and mouse

Inputting data, selecting options, and navigating through menus can be faster and more precise using a keyboard and mouse instead of touchscreen controls on a mobile device.

Multi-user access

Online versions of accounting software often allow multiple users to access the system simultaneously, enabling team collaboration and efficient task delegation. While some mobile apps offer multi-user access, the experience might be limited compared to the online version.

Some of the best accounting software with online versions include QuickBooks Online, Xero, Sage Business Cloud Accounting, FreshBooks, and Zoho Books. These platforms offer a range of features and integrations to cater to the diverse needs of businesses.

Ultimately, the choice between using an online version of accounting software or a mobile app depends on the business’s specific requirements, preferences, and work environment. Many businesses choose to use both, taking advantage of each platform’s unique benefits. For example, they might use the online version for in-depth financial analysis and reporting and the mobile app for on-the-go tasks like invoicing and expense tracking.

Free Accounting Software

Free accounting software can be an attractive alternative for small businesses, startups, and freelancers with limited budgets or simple accounting needs.

One of the main advantages of using free accounting software is the cost savings. It allows businesses to manage their finances without incurring additional expenses, which is particularly beneficial for those with tight budgets.

Excel Bookkeeping Templates

Free accounting templates might be an option for a small business requiring basic bookkeeping. We have created over 25 bookkeeping templates available with free downloads and instructions.

Businesses mainly use our templates because they are easy to use, and prefer using Excel rather than accounting software.

Mobile Accounting App FAQ

Which is the easiest Accounting Software?

The answer to this question depends on your accounting needs and preferences. Some of the easiest accounting software programs to use include QuickBooks Online, Xero, Sage Business Cloud Accounting, FreshBooks, and Zoho Books. One of the best ideas is to look at the user interface and see how easy it is to find the functions required.

Do mobile accounting apps have multiple-user access?

Yes, most mobile accounting apps offer multi-user access, allowing multiple users to access the system simultaneously. However, the experience might be limited compared to what is available on the online version of a platform.

Can I use mobile accounting apps for detailed financial analysis?

It depends on the features offered by the app you are using. Most mobile accounting apps provide only essential functions unsuitable for complex financial analysis. However, some apps offer more advanced features that can be used for detailed financial analysis. For tasks like VAT returns, I would suggest using the online platform.

Mobile Accounting App Conclusion

Mobile accounting apps have come a long way in recent years, offering a range of convenient features for businesses. They provide the flexibility to manage finances on the go and access data from anywhere with an internet connection.

While mobile apps can be great for basic tasks such as invoicing and expense tracking, their capabilities are limited for more advanced functions like detailed financial analysis. An online version of accounting software or Excel bookkeeping templates may be preferable for these activities, depending on your unique needs and preferences.

Ultimately, choosing between a mobile app or an online platform is up to you – so take some time to consider which would best suit your business’s needs before making any decisions.

In conclusion, mobile apps can significantly simplify accounting for small businesses, enabling them to focus on their core operations. By selecting the right app and using it effectively, you can ensure your business stays financially healthy and well-positioned for growth.

Mobile accounting apps have come a long way in recent years, offering a range of convenient features for businesses. They provide the flexibility to manage finances on the go and access data from anywhere with an internet connection.

The post Top 5 Mobile Accounting Apps for Small Business: Streamline Your Finances appeared first on Business Accounting Basics.

One tool that can help you manage projects and costs is Xero project management software. Xero is a cloud-based accounting and bookkeeping software that offers a range of features to help small businesses track their finances.

In this article, we will look at an example of a small business using Xero projects, its features, costs and alternatives.

Xero Online Accounting Software

Xero is an online accounting software that provides small businesses with a range of features to manage their finances. The software includes tools for invoicing, bookkeeping, uploading bank statements, cash flow, bank reconciliation, and tax return preparation. Xero also offers a mobile app, which allows business owners to track their finances on the go.

In addition, the software integrates with a number of third-party applications, such as payroll, project management and inventory management systems. Overall, Xero provides a comprehensive solution for small business accounting needs.

Xero Project Management Features

Xero project management tool is part of the Xero account; to use it, you need to add it to the Xero subscription. The first month is free.

To show you the features, we are going to set up a project within Xero and show a working example. The example will include adding time, materials and sales invoices.

Xero Project Management Example

Our example is for a project to set up a computer system, and consultancy for a customer called A Jones. The total project is for 10,000, with a deposit of 2,000. Below is the opening project details before work has started.

Once a project is set up users of Xero can be assigned to the project, allowing them to add time, estimates and invoicing. Within Xero settings users you can allocate roles and permissions to ensure an employee is not viewing other information.

Adding Transactions to the Project

After creating a project, you can easily add transactions, including sales invoices, to your project by using the drop-down within the project or allocating it from a created transaction. The first invoice raised in this project is for a £2,000 deposit.

Task Management

Part of project management is to allocate tasks to each project. Tasks are simple to set up; give your task a name and estimated number, either hour, fixed-rate or non-chargeable. Once a task has been added, it appears on the project and shows the remaining amount to invoice.

Time Tracking

Time tracking is a great feature to Xero projects and is available within the Xero app or desktop version.

There are several ways to track time, either using the built-in clock to track actual time or recording the time when finished.

Within the project, you can see hour much time is completed and how much is left.

Purchase Invoice

One of the most important parts of project management is to ensure that all expenses are allocated to a project and invoice at the correct amount.

Once approved purchase invoices are received from a supplier, there is an option to allocate the expense to the project. The expenses then show ready for invoicing.

Sales Invoice Information

When setting up a project with a client, a schedule of invoices might be agreed upon or invoice the whole project at the end.

Within the project, there is an option to raise an invoice. It allows you to decide which items will be invoiced to the customer and shows the rates. After allocating the correct costs, the invoice is created.

Total Project Visibility

Having total project visibility is essential to the business. The project details reports show the amount invoiced, expenses and profits.

Within each project, it is easy to see the percentage of work completed, the deadline, how much is invoiced and expenses.

Run multiple projects simultaneously

Many small businesses find themselves juggling multiple projects at the same time. This can be a challenge, but with the right tools in place, it can be manageable.

Xero is one such tool that can help small businesses manage their finances and projects simultaneously.

Xero Projects Cost

Xero Projects is an additional cost for businesses based on the number of users that need access. All project managers will need access to a user account. The first month is free for Xero projects, but after that, there is a monthly subscription cost of £5 per user, but you only pay for users that use the feature each month.

Below is the pricing for Xero accounting software.

Other project Management Tools

If you find that Xero projects are not suitable for your company, there is a selection of other Xero integration apps available within the AppStore. One such tool is WorkflowMax.

WorkflowMax

There is a 14-day free trial, and pricing starts at £20 per month and integrates fully with Xero. The software includes quotations, time tracking, scheduling, invoicing and reporting. Workflow can help reduce time spent on project management and spend more time on the business.

Monday.com

Monday.com have a free version that includes project management as well as lots of other tools. Monday offers a complete solution for workflow and is adapted for business needs.

Xero Projects Conclusion

Project management can be a daunting task, but with the right tools in place, it can be manageable. In this post, we’ve outlined how Xero Projects can help small businesses manage their finances and projects simultaneously. We’ve also looked at the cost of Xero Projects and how to run multiple projects simultaneously.

We feel that Xero Projects is a great all-in-one solution for client management and projects as it integrates with the popular accounting software of Xero.

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