What is the difference between accounting software and bookkeeping software?
Accounting software is typically used to summarize financial data and determine the financial health of your business. Bookkeeping software has features that deal with measurement, identification, and recording of financial transactions. Both typically have overlapping features. Most of the best bookkeeping software comes with integration options with leading 3rd party accounting software. According to the US Bureau of Labor Statistics, about 20% of small businesses fail before they complete their 2nd year. Among the many potential reasons for failure, the lack of effectively managing money and bookkeeping is a leading cause. Small business bookkeeping software can offer you the tools and visibility you need to prevent your business from failing.
Factors to consider when choosing a software:
- Is it mobile friendly? Does it have well thought out features in app form?
- Where is my data stored? Cloud storage features ensure that your data is available from any device at any time
- How easy is the software to learn? What type of support is offered?
What should I choose?
Here are the best options on the market:
1. Best for Small to Midsized Business- Quickbooks: Excellent features for invoicing and expense management. Design is very well thought out and user friendly. With regard to price point, it is reasonable for home use or business use.
2. Best for Freelancers- FreshBooks: Freshbooks is designed for freelancers and businesses to manage finances. Seamless integrations with other third party applications are available.
3. Best for Enterprise-Netsuite: A more robust set of enterprise features. Great features for global business management compliance. Real-time metrics and role based dashboards available.