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Accounting software can help make an otherwise onerous task a lot easier.
There are a few that stand out above the rest: Xero, Wave, and QuickBooks. Xero and Wave are relatively new compared to Quickbooks, but both have had a strong showing since their debut.
Before you get a headache trying to decide which would work best for your business, we’ve got you covered. In this article, we’ve outlined the features, pricing, and pros and cons of each contender so that you can make an informed decision about which accounting software to use for your business.
Xero is cloud-based online accounting software that caters to small businesses as well as accountants and bookkeepers.
When you sign up with Xero you’ll be able to manage your finances on their platform, which you can access via any device that can go online.
If you need general help with bookkeeping and accounting with Xero, that’s what we’re here for. We’d love to help you out.
Wave is an online bookkeeping and payment software for business owners who need help with their accounting.
Wave is mostly geared towards startups and small to medium-sized businesses, as well as solopreneurs and freelancers.
With Wave you’ll be able to track your invoices, track your expenses, and review financial reports.
The software also offers invoicing and payroll solutions, all of which are automated.
Payments by Wave is the latest addition to their products. You’ll receive payments in less than 2 days and their fee is as little as 1% per transaction.
If you’re looking for a software that will take care of your accounting as well as accept payments, Wave is a good place to start.
Wave’s accounting software is free. Their add-on services, like Payments by Wave and their payroll services have a range of prices:
QuickBooks is the veteran accounting software that your parents likely used. You can access this cloud-based software via your computer or their mobile app.
Like Xero and Wave, you’ll be able to create and send invoices, keep track of your expenses and payments, and you’ll also get financial reports. That includes balance sheets and P&L statements.
With QuickBooks, you can also share your credentials with your accountants so that they can collaborate with you on-the-go too.
If you currently use QuickBooks Desktop, you can easily migrate to the online version of the software. In a world where we work across multiple devices, desktop software simply isn’t sufficient anymore.
Not all businesses are created equal, and neither are accounting software. Remember: you’re going to want to know your specific needs and budget before you can seriously consider which option works best for you.
To summarize, solopreneurs, freelancers, and self-employed folks should consider Wave for an easy-to-use DIY approach to accounting software.
It’s free, so you don’t need to worry about making room for it in your budget. That said, if you’re running a business on your own that has an inventory, you may want to look into another software.
If you’re hoping to grow your business, you may opt for QuickBooks. It is the most expensive of these three options, but it makes scaling your operations easy. You can also do much with its affordable plan if you feel more comfortable starting out there.
For startups, small businesses, or e-commerce businesses: Xero is likely your best bet. And if you need to expand down the road, there’s always the option to upgrade to the Established plan—or migrate to QuickBooks.
BINERY can also help you set up your Xero account if you’re feeling overwhelmed. We’ve found that Xero works well for most of our customers!
Don’t underestimate the importance of proper accounting, as it could literally make or break your business down the line.
Click here to learn more about BINERY and to book a call so that we can help you get off to a clean start.