As businesses move towards cloud-based solutions, accounting software is no exception. Cloud accounting software provides businesses with numerous advantages such as accessibility, real-time data, and automation. However, with so many options to choose from, it can be difficult to determine which cloud accounting software is the best fit for your business. In this article, we will explore the top cloud accounting software options and their key features.
Overview
QuickBooks Online is one of the most popular cloud accounting software options for small businesses. It offers a range of features such as invoicing, expense tracking, and inventory management. QuickBooks Online also integrates with numerous third-party applications.
Pros
QuickBooks Online offers a user-friendly interface, making it easy for business owners with little to no accounting experience to use. It also has an extensive support system, including a community forum and live chat support. Additionally, QuickBooks Online offers a mobile application, allowing business owners to access their financial data on-the-go.
Cons
QuickBooks Online may not be the best fit for larger businesses as it has limitations with regards to the number of users and transactions. Its pricing plans can also be expensive for some small businesses.
Overview
Xero is another popular cloud accounting software option that offers features such as invoicing, expense tracking, and bank reconciliation. It also has an extensive selection of third-party integrations.
Pros
Xero offers a more affordable pricing plan compared to QuickBooks Online, making it a great option for small businesses on a budget. It also has a user-friendly interface and offers mobile applications for both iOS and Android devices. Additionally, Xero offers unlimited users, making it a good fit for larger businesses.
Cons
Xero’s customer support options are limited, with no live chat support and support only available during business hours. It also lacks some of the more advanced features offered by QuickBooks Online.
Overview
FreshBooks is a cloud accounting software option that is focused on invoicing and time-tracking. It offers features such as project management and expense tracking as well.
Pros
FreshBooks offers a simple and intuitive interface, making it easy for business owners to use. It also offers a mobile application and integrates with numerous third-party applications. Additionally, FreshBooks offers a unique feature called “double-entry accounting” which allows business owners to keep a better track of their finances.
Cons
FreshBooks may not be the best fit for larger businesses as it does not offer some of the more advanced features offered by other cloud accounting software options. It also has limited customer support options and can be expensive for some small businesses.
Overview
Wave is a free cloud accounting software option that offers features such as invoicing, expense tracking, and bank reconciliation. It also offers a mobile application and integrates with numerous third-party applications.
Pros
Wave is a great option for small businesses on a budget as it is completely free. It offers a user-friendly interface and has no limitations with regards to the number of users or transactions. Additionally, Wave offers a unique feature called “receipt scanning” which allows business owners to easily upload and track their receipts.
Cons
Wave may not be the best fit for larger businesses as it does not offer some of the more advanced features offered by other cloud accounting software options. It also has limited customer support options, with no live chat support and support only available during business hours.
Overview
Zoho Books is a cloud accounting software option that offers features such as invoicing, expense tracking, and inventory management. It also offers a mobile application and integrates with numerous third-party applications.
Pros
Zoho Books offers a more affordable pricing plan compared to QuickBooks Online and Xero, making it a great option for small businesses on a budget. It also offers a user-friendly interface and has no limitations with regards to the number of users or transactions. Additionally, Zoho Books offers a unique feature called “client portal” which allows business owners to communicate with their clients directly through the software.
Cons
Zoho Books may not be the best fit for larger businesses as it does not offer some of the more advanced features offered by other cloud accounting software options. It also lacks some of the more advanced integrations offered by QuickBooks Online and Xero.
FAQ
1. What is cloud accounting software?
Cloud accounting software is a type of accounting software that is hosted on remote servers and accessed through the internet. It allows business owners to access their financial data from anywhere and at any time.
2. Can I access my cloud accounting software on my mobile device?
Yes, most cloud accounting software options offer mobile applications that can be downloaded on iOS and Android devices.
3. How much does cloud accounting software cost?
The cost of cloud accounting software varies depending on the provider and the features offered. Some providers offer free options while others charge a monthly fee.
4. Can I integrate my cloud accounting software with other applications?
Yes, most cloud accounting software options offer integrations with numerous third-party applications.
5. Is my financial data secure on cloud accounting software?
Yes, most cloud accounting software options use encryption and other security measures to ensure that your financial data is secure.
6. Can multiple users access my cloud accounting software?
Yes, most cloud accounting software options offer multiple user access, although some limit the number of users depending on the pricing plan.
7. Can I import my financial data from another accounting software?
Yes, most cloud accounting software options offer the ability to import data from other accounting software.
8. How often is my financial data backed up on cloud accounting software?
Most cloud accounting software options offer automatic backups of financial data, some as frequently as every hour.
Pros
Cloud accounting software offers numerous advantages such as accessibility, real-time data, and automation. It also allows business owners to save time and money by eliminating the need for manual data entry and paper-based record-keeping. Additionally, cloud accounting software offers better collaboration between team members and eliminates the need for physical storage space for financial records.
Tips
When choosing a cloud accounting software option, consider your business needs, budget, and the level of support offered by the provider. It can also be helpful to test out a few different options with free trials before committing to a pricing plan.
Summary
Choosing the best cloud accounting software for your business depends on numerous factors such as your budget, the features you require, and the level of support you need. QuickBooks Online, Xero, FreshBooks, Wave, and Zoho Books are all popular cloud accounting software options that offer a range of features and integrations. Consider your business needs and test out a few different options before committing to a pricing plan.