Accounting can be defined as the language of the business. Entrepreneurs must know exactly how good or bad their financials are. Therefore, the accuracy of their bookkeeping and final accounts plays an important role in making critical decisions, which ensures the long-term success of their business.
Moreover, maintaining accounting data is essential for businesses as it provides insights into financial performance, facilitates compliance with legal requirements and tax planning, enables financial monitoring and control, builds investor and creditor confidence, supports business performance evaluation, and aids in business planning and forecasting.
Accurate and up-to-date accounting data allows for informed decision-making helps track income and expenses, and provides a benchmark for evaluating business performance. It also plays a crucial role in securing funding and loans, identifying financial issues, and setting realistic budgets and forecasts.
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Let's explore the top five widely used accounting software in the USA.
1. ZOHO BOOKS
If you're a fan of Zoho apps, you'll love Zoho Books. It's a comprehensive accounting software that meets all your basic needs. With Zoho Books, you can easily send invoices, reconcile accounts, track expenses, and generate reports. It is Zoho Books' integration capabilities that set it apart from others. You can connect your bank account, payment processor, e-commerce platform, and more, giving you real-time visibility into your finances.
The software also offers advanced features like project accounting and time tracking. If your annual revenue is under $50,000, you can sign up for the free plan, which gives one user access to manage clients, create invoices, import bank statements, and track expenses. The standard plan, priced at $15 per month (billed annually), offers additional support options, custom fields, reporting tags, and bulk updates. The professional plan is priced at $40 per month (billed annually) and the premium plan is at $60 per month (billed annually).
FreshBooks is a user-friendly accounting software designed for small business owners without an accounting background. It simplifies tasks like creating and sending invoices, tracking expenses, managing projects and clients, and viewing reports. In addition to its standard plans, FreshBooks also offers a custom plan with personalized pricing for businesses with more complex needs.
If you have five or fewer clients, you can subscribe to FreshBooks' Lite plan for $17 per month. This plan includes unlimited expense tracking, estimates, credit card and bank transfer acceptance, sales tracking, reports, and unlimited invoicing for up to five clients.
Well, for up to 50 clients, the Plus plan is available at $30 per month. It offers everything in the Lite plan, along with features like recurring billing, client retainers, business health reports, double-entry accounting reports, accountant invitations, and mobile mileage tracking. The Premium plan, priced at $55 per month, provides unlimited billable clients and invoices.
Xero is a highly popular accounting software specifically designed for small businesses. Their Early plan, priced at $13 per month, offers basic features like reconciling bank accounts, capturing bills and receipts, and providing short-term cash flow and business overview. As your small business expands, you can upgrade to larger plans. By paying an additional $40 per month, you can include Payroll with Gusto in any plan.
For $37 per month, you can access the Growing plan. This plan allows you to send unlimited invoices and quotes, and enter unlimited bills. It also provides the convenience of bulk transaction settlement. If you choose the Established plan, priced at $70 per month, you'll receive all the features of the Growing plan, as well as additional capabilities such as project tracking, multi-currency support, expense claims, and detailed data analytics.
QuickBooks is a popular accounting software that freelancers love for its simplicity. It starts at $30 per month and offers features like tracking income and expenses, invoicing, accepting payments, maximizing tax deductions, generating reports, organizing receipts, tracking mileage, managing cash flow, monitoring sales and sales tax, sending estimates, and managing 1099 contractors.
Moreover, for $55 per month, you can upgrade to the Essentials plan, which allows up to three users. This plan includes additional capabilities such as bill management and time tracking. If you choose the Plus plan for $85 per month, you can have up to five users and gain access to inventory tracking and project profitability analysis.
5. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a great option for microbusinesses as it offers a range of useful features and integrations at an affordable price. The software starts at $10 per month with the Sage Accounting Start plan, which includes basic features like creating invoices, automatic bank reconciliation, and tracking what you're owed.
Their Sage Accounting plan is typically priced at $25 per month and it provides unlimited users, quotes, estimates, cash flow forecasts, purchase invoice management, and the ability to automatically capture and organize receipts for free during the first three months.
Accounting software is a helpful tool that your businesses can use to make financial management easier. It automates important tasks like creating invoices and reconciling accounts, ensuring accurate records, and saving time. When choosing accounting software, you should consider your specific needs and prioritize them. While there may not be a perfect software for every business, it's important to find the one that meets most of your requirements.