Welcome! If we haven’t met before, I’m Sara, the founder of True North Bookkeeping, and I’m thrilled to guide you through this comprehensive comparison of the most popular bookkeeping software. Whether you need to send invoices, run payroll, track inventory, or if you’re wondering if a simple spreadsheet could do the trick, you’re in the right place. Today, I’m breaking down the pros and cons of each software to help you determine which is the best fit for your business. Let’s dive in!
Pros: QuickBooks Online is a cloud-based accounting software known for its robust financial reporting capabilities. Each subscription includes expense tracking, and the platform integrates with over 750 apps, enabling you to customize it to your business needs. You can also generate and accept payments directly through QuickBooks, and it seamlessly connects to bank accounts for easy monitoring of financial transactions.
Cons: On the downside, adding extra features like time tracking can incur additional costs. The number of extra users is capped at 25, which might be a limitation for larger teams. Its rich feature set might be overwhelming for beginners, resulting in a steeper learning curve. QuickBooks Self-employed capabilities are somewhat limited, and its entry-level pricing is comparatively higher.
Pros: Xero offers lower entry-level pricing and integrates with over 1,000 apps, providing flexibility and scalability. It allows unlimited users for all plans, which is a significant advantage for growing businesses. Its modern user interface might be more user-friendly for non-accountants. Like QuickBooks, Xero lets you accept payments and includes inventory tracking in all plans. It also connects to bank accounts for accurate financial tracking.
Cons: However, to avoid limitations on bills and invoices, you’ll need to upgrade your subscription. Xero doesn’t offer live customer support chat, and claiming expenses is only included in the highest-paid subscription. The increased analytics plan is also solely available with the highest paid subscription.
Pros: Wave Accounting stands out with its free base plans. It offers unlimited and customizable invoices, and unlimited income and expense tracking. It connects to your bank accounts and can accept payments with the paid plan. Plus, it offers automatic overdue payment reminders even on the free plan.
Cons: Wave is best suited for small, service-based businesses. It doesn’t integrate with third-party applications, which might limit its functionality. It also lacks some reporting capabilities compared to other paid software and doesn’t have an audit trail function. Customer service is primarily through a chatbot and help center.
Pros: If you prefer a more hands-on approach, a spreadsheet might be the right choice for you. It involves a one-time fee and is a great option to track a few categories of income and expenses. You can customize the spreadsheet template to suit your industry or needs and choose to use your preferred spreadsheet software.
Cons: The downside is that most (if not all) data entry is manual, which can be time-consuming and prone to errors. Spreadsheets lack some financial reporting capabilities, and the audit trail can be more difficult to track. You’ll need to keep supporting paperwork, either physical or digital.
In conclusion, the best bookkeeping software for your business depends on your specific needs and budget. Take the time to consider what features are most important to you and how each software can support your business growth. If you need further assistance or have any questions, feel free to get in touch!
Phone: (248) 653-1233