Find out more about Online Accounting Software
What is Online Accounting Software?
Online accounting software solutions can be used by organizations to keep track of their financial transactions. Key features include reporting and payroll modules, accounts payable/receivable, and general ledger. In addition, specialty platforms have extra features designed for particular markets. Online accounting software tools can be accessed via the internet and you don’t need to install them on your company computers. This minimizes IT requirements such as hardware, maintenance, and backups. Plus, you don’t need to shell out large upfront costs but only need to pay a monthly or annual subscription fee to access and use the online software. Start by checking our leader FreshBooks, and other recommended solutions in this category.
Top 10 Most Popular Online Accounting Software
Best Online Accounting Software
How To Choose The Best Online Accounting Software
Online accounting software programs provide anytime, anywhere access to users and are affordable too. Hence, they are preferable to on-premise systems especially if your company has multiple office locations and remote employees. However, how do you select the best online accounting software platform for your company needs given the surfeit of tools out there? To assist you, we have prepared this buyer’s guide which gives you valuable tips on the main features and factors you should focus on while evaluating the different software platforms and vendors.
Get to know each product with free trial
An ideal way to start your search for the best online accounting software application is to register for the free trial or demo offered by leading online accounting software providers. This will enable you to check out each system’s main features and gauge if they are what you are looking for. Visit the websites of the following recommended platforms to check the possibility of a free trial: Xero, Freshbooks, QuickBooks, Sage Intacct, and KashFlow. These products have been give high rankings in our online accounting software reviews that you can browse to get a good comparison.
- Freelancers, single accountants, and sole proprietors can check out the possibility of using a free online accounting software system for their basic needs.
- Small, medium-sized, and large businesses can invest in a quality paid platform to access advanced features.
- Companies in specialty sectors such as medical practice, banking, real estate, nonprofits, and others can try out tools that provide specific features for their particular needs.
Examples of Online Accounting Software
- Xero: Use Xero to manage your company’s bookkeeping, bank reconciliation, invoicing, and more. This platform is designed to meet the needs of small businesses in any industry. Xero is based in New Zealand and has become a popular accounting software product in the US, UK, European, and Australian markets. The product offers robust financial reporting tools that summarize the impact of all your accounting activities.
- Freshbooks: Ideal cloud-based accounting software for small businesses. You can accept credit cards, manage expenses and receipts, track time, and send invoices easily. Freelancers will find it easy to use this product to manage their clients, time, and income effortlessly. The vendor offers a handy 30-day free trial to help you check out the features before you decide to invest your money.
- QuickBooks: QuickBooks Online is designed to work on your PC, Mac, smartphone, and tablet. You don’t have to pay extra for mobile access to your subscription. Use the tool to organize all your accounting tasks in one place. Record your sales and get paid faster by sending invoices that accept debit and credit cards.
- Sage Intacct: Provides online accounting software to small and medium-sized companies. The platform offers real-time operational and financial insights and enables you to automate key processes. Plus, you get to use core accounting modules such as order management, cash management, accounts payable, accounts receivable, and general ledger. The software also includes multi-entity consolidations, revenue management, project accounting, and time and expense management tools, as well as built-in dashboards and reporting functionality.
- KashFlow: One of the leading bookkeeping and accounting software solutions in the UK. The product is easy to use and makes its simple to manage your small business accounts. It is cloud-based which means you get 24/7 access from anywhere. The best part is the platform is jargon-free which means it can be easily used even by non-accountants to track expenses and balance books.
Types of Online Accounting Software
The following are the main types of online accounting software:
- Small business
Key Features of Online Accounting Software
- Invoicing. Get faster payments by sending online invoices that have online payment options.
- Payroll. Pay your employees, send them paystubs, and run reports easily.
- Bank connections. Link to your bank so that transactions flow automatically into the accounting software each day.
- Bank reconciliation. Keep track of money flow with simple bank reconciliation and daily updates.
- Data security. Top online accounting software vendors use industry standard security measures to protect your sensitive business data.
- Manage expenses. Effortlessly manage, claim, and record receipts and expenses online.
- Reporting. Generate smart financial reports to track the financial health of your organization.
- Accept payments. Get paid faster by accepting payments from online services like Stripe and PayPal.
Benefits of Online Accounting Software
- Info security. Leading online accounting software vendors utilize the latest security measures to protect your confidential business data. You don’t have to worry about on-premise crash or losing your data to theft or emergencies. Many online systems allow you to download your data locally if you wish to.
- Lower costs. You don’t have to shell out a large upfront fee, but only need to pay a small monthly or annual fee to access online accounting software.
- Less dependence on IT department. You don’t have to worry about whether the software you download works properly on your company’s systems and devices. On top of that, the cloud vendor handles all the routine maintenance, upgrades, and backups. This means small businesses can save money and time spent on IT infrastructure.
- Facilitates better interaction. Top online accounting software products offer enhanced capabilities such as employee portals and online payments. Your company’s staff can utilize the online employee portal for better collaboration and communication. In addition, online payments help to save time by integrating with the general ledger and accounts payable and receivable to automatically update your enterprise’s books.
- Electronic payments. Your company can save time and money by electronically paying invoices and collecting receipts. Therefore, top vendors are focusing on including electronic payment features in their online accounting software applications to make things easier for users.
- Customization. One of the best features of SaaS solutions is you only need to pay for what you use. Therefore, if you wish to use only core accounting features and not bells and whistles like forecasting or grant management, the software will not include them or bill you for them.
- Costs add up. Though you don’t need to pay a large upfront amount, the costs can add up over the years when you continue to pay the subscription fee for your online accounting service. Therefore, in the long run you may end up paying more for online software compared to an on-premise system that needs updates only after a few years.
- Data confidentiality. You are not sure where the cloud vendor will store your sensitive data. Their servers could be in the US, UK, Asia or anywhere. This means other entities and governments could well browse and review your business data. Therefore, find out all details about the data security measures adopted by the cloud vendor before entrusting your precious business information with them.
List of Online Accounting Software Companies
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Our Score Read More
Our website uses our special SmartScore™ system to gather information about all the services in the Online Accounting Software category so that we can help you get the best possible software. It compares and contrasts the following aspects: core modules, collaboration possibilities, customization, integration, simplicity, help & support, how secure a software is, support for smartphones and tablets, media rating. As of now, FreshBooks is the leader in this category and our experts are really satisfied with it. After detailed evaluation it got the best results among its competitors and our experts strongly suggest that you include it as one of the choices for your company.
User Satisfaction Read More
An overview of overall user satisfaction with the products in our Online Accounting Software category calculated using our unique algorythm that finds user reviews, comments and opinions across a broad set of social media platforms to help you make an informed buying choice.
Pricing Read More
Each vendor in the Online Accounting Software category will provide a different group of pricing packages for its service and every package will include a varied set of features. Below we list the overal pricing for the cheapest plan provided for each app. Please note that advanced features may have an extra cost.
Devices Supported Read More
A summary of what kind of devices and operating systems are supported by the listed B2B solutions in the Online Accounting Software category, including mobile platforms and web-based solutions.
Laguages Supported Read More
Find out what languages and countries are served by the top B2B apps in the Online Accounting Software category, including apps intended for international markets and prepared for multi-cultural groups of employees.
Pricing Model Read More
Learn what pricing packages are supported by the vendors in the Online Accounting Software category to check which one suits your business preferences and budget best. Keep in mind that some solutions can provide free or freemium accounts for you to test first.
Customer Types Read More
A brief look at what kinds of customers a given B2B platform in the Online Accounting Software category is designed for, from small businesses and non-profits to large enterprises.
Deployment Read More
An overview of what types of service deployement are provided by every B2B vendor in the Online Accounting Software category. Although most of modern SaaS solutions are cloud-hosted some services might offer an on-site deployment model as well.