What Is the Best Online Accounting Software for Bookkeepers?

Bookkeeping is essential for any startup or small business, but it can quickly become complex and time-consuming as your operations expand.

That’s why choosing the right online accounting software is crucial for keeping your finances accurate and up to date. But with so many options available, finding the best fit for your needs can feel overwhelming.

Let’s take a look at some of the key features to consider in online accounting software, as well as how to choose the best option for your business’s needs.

Key Features of Online Accounting Software

When selecting the right online accounting software for your business, prioritize features that will simplify, streamline and automate your bookkeeping processes, especially if you don’t have an accounting background. 

Here are some of the most important features to consider:

Easy to Use

As a startup or small business, the last thing you want is to add another complicated task to your daily life. That’s why it’s important to avoid overly complex software, which can lead to errors, inefficiencies and frustration. 

Accounting software should be intuitive to use, with an easy-to-navigate interface. Reports and invoices should be simple to create and understand.

Automation

If you’re busy running a growing business, you don’t always have time to focus on your finances. Fortunately, many accounting software solutions come with built-in automation.

Features such as recurring invoicing, automatic bank reconciliation and expense categorization can help save you significant time on repetitive tasks and reduce the risk of user error.

Scalability

If you’re running a startup or small business, chances are you’re hoping to expand your company in the future. Your accounting solution should be able to grow with you as you gain new customers, expand your services, develop new revenue streams and open new locations. 

Look for software that offers tier-based payment options, allowing you to access more features as your business grows without having to switch platforms.

Cloud-Based

Cloud-based software allows you to access your finances anytime, anywhere, from any device with an internet connection. It also offers strong data protection, with security measures that are just as robust as other solutions.

Cloud-based software is typically offered as a monthly or yearly subscription. This eliminates the need to purchase expensive software upfront, making it a more cost-effective solution for many businesses.

Security

When it comes to financial data, security is a top priority. Choose a platform that uses advanced encryption methods to protect your company’s information. Look for features like two-factor authentication, regular software updates, good customer support and secure data backup options.

Reporting and Analytics

Detailed financial reporting is vital for making future business decisions. Accounting software should allow you to easily create a range of reports, such as profit and loss statements, balance sheets and cash flow reports. 

Your software solution should also offer capabilities to customize reports to meet your specific needs and preferences.

Integration with Other Tools

Many businesses use other tools and platforms in their daily operations, such as payroll systems, project management software and payment processors. Look for accounting software that can seamlessly integrate with other platforms your business uses.

Customer Support

Even the best platform can experience issues, so reliable customer support is essential. Look for software providers that offer 24/7 support over multiple channels. 

Round-the-clock customer support ensures that problems are resolved quickly, allowing you to get on with your bookkeeping.

What Online Accounting Software Do We Recommend?

While there are many software solutions to choose from, two of our favorite software options for online accounting are QuickBooks Online and Xero. We use them daily and recommend them for their easy-to-use interfaces, comprehensive reports and overall functionality.

QuickBooks Online

QuickBooks Online (QBO) is one of the most popular accounting software options for bookkeepers and small businesses, and for good reason. QBO is intuitive, even for beginners, and offers a wide range of features and automation options to simplify bookkeeping.

QBO provides comprehensive reports, and its cloud-based multi-user access abilities allow business owners to collaborate with bookkeepers and accountants from any device.

This platform currently offers several monthly pricing plans ranging from $35 to $235 per month, depending on desired features and number of users.

Xero

Xero is another top choice for accounting software designed for small businesses. 

While it has a slightly steeper learning curve compared to QBO, it’s still highly user-friendly with plenty of features. Some of Xero’s top features include customizable invoicing, expense tracking, bank reconciliation, payroll and integration with third-party apps.

Xero offers three monthly pricing plans based on the size of your business: Early, Growing and Established.

Other Software Solutions

Other popular accounting software solutions for small businesses include Wave, FreshBooks, Zoho Books and Sage Business Cloud Accounting.

Outsourcing Bookkeeping to a Financial Team

Doing your own bookkeeping with online accounting software has many benefits. However, managing your own finances can be time-consuming, especially without prior experience. As your business grows, bookkeeping can also become a highly complex task.

For this reason, many businesses choose to outsource their bookkeeping to a professional service like Finvisor.

We streamline your accounting with cloud-based platforms so you can access your financial data anytime, anywhere. We also ensure your financial statements are delivered accurately and on time.

With over a decade of experience supporting startups and growing businesses, we understand how to meet the bookkeeping needs of small businesses like yours.

Get in touch today and schedule a free introductory call to learn more about our services.