What Software do Accountants Use?

Last Updated on December 1, 2022 by Markeyus Franks

Business managers mainly use accounting software to keep track of their company’s inflow and outflow of funds. Because software works on specifically defined algorithms, it does not make human errors. There are countless options when it comes to accounting software, such as Hello Bonsai, QuickBooks, Xero, etc. But before diving into some of the best and most credible accounting software, you must know what accounting software is and what features you should look for while choosing accounting software. 

What is Accountant software?

If you are running a small business, then accountant software will aid you in tracking the accounts data, checking out for taxes and expenses, and many more. Small businesses can frequently use pre-configured accounting software without making significant customizations. As a company expands, its accounting requirements become more complex, necessitating a personalized enterprise resource planning system.

What features should you look for in Accountant software?

There are a few signature features that make for excellent accountant software. Some prominent features of effective software are listed below. 

Security

By definition, accounting software deals with financial data. It might also manage other people’s private information, like contact information for invoices. So, security cannot be compromised on any basis. 

Cloud Accessibility 

accounting software programs can be used locally, and some can be used in the cloud. Choosing an accounting program with a cloud version often makes sense. It makes remote work more accessible. The company updates cloud-based software automatically. By doing this, you can benefit as soon as security updates are made available. Another advantage is that law amendments are automatically implemented at the appropriate intervals.

Customer Relationship Management Capabilities

Modern accounting software can be a tool for managing customer relationships on the financial side of your company. For instance, it might automatically send invoices and, if necessary, reminders.

User-friendliness

In managing the finances of SMEs, accounting software is used much more by administrative staff than by accountants. With smaller SMEs, these staff may need to be more financial specialists.

The features and functions specially created for small business owners, ease of use, price, and other factors were considered when deciding which accounting software would be the best. Here are some of our favorites.

9 Best Accountant Software:

1. Hello Bonsai

If you are looking for a thorough suite of tools to manage a whole freelance business, Bonsai has all you need. Users can access time tracking, proposals, tax management, invoicing, contracts, and more through the Hello Bonsai Suite. Bonsai simplifies the complex and, at times, mundane parts of freelancing so you can focus on what matters to your clients; your services.

It has two subscription tiers, called Starter and Professional, which are priced at $24 and $39 per month, respectively. If you own an agency or a small company, the Workflow Plus plan is an effective option. It allows you to streamline and automate your features so your business is more efficient in its customer-facing features.

Pros

• Top-Notch document management
• Effective time-tracking
• Automated contract creation
• Support for multiple languages in contracts
• Easy to use

Cons 

• Limited options in the contract creation tool
• The software is only available in English
• Time-tracking lacks the feature of evidence of work

2. Xero

For small businesses searching for straightforward accounting software, Xero is the top option in our review. This software has a clear user interface and interacts with different payroll services. Through Xero’s interface with Stripe and GoCardless, businesses can accept online payments from clients.

The Early plan restricts usage to 20 invoices or bids and five bills each month. This constrained plan can be appropriate for a small service or consultancy company that offers a few high-ticket monthly transactions. In addition to a full-service payroll, Xero offers three monthly subscription plans. There is no limit on the number of invoices or bills for the Growing or Established plans. The Establishment plan contains extra capabilities, including multi-currency, spending management, and project costing, which is the only distinction between the two.

Pros

• Mobile application is available 
• Integrate Gusto’s payroll
• A complete store for third-party apps
• Streamlined inventory control

Cons

• Reporting is limited

3. Freshbooks

In FreshBooks, there are numerous connectors for third-party apps, including Gusto, G Suite, and others. One distinctive feature of FreshBooks is the ability to highly stylize and personalize invoices for a business-like appearance and feel. FreshBooks is a fantastic resource for creating project budgets, distributing estimates and proposals, and collecting client payments. There are four distinct programs, and companies can save 10% by paying annually instead of monthly.

Comparatively speaking, FreshBooks provides more invoicing customizations than other accounting software. Although sending, receiving, printing, and paying invoices is its primary feature, it can also handle the fundamental bookkeeping requirements of a company. It is simpler for service-based businesses to send proposals, track time on projects, and accept payments thanks to this accounting software.

Pros

• Pleasant user interface
• Integration of third-party apps
• Affordable
• Advanced billing capabilities

Cons 

• Mobile application is restricted

4. Quickbooks

Small businesses and individuals can use QuickBooks as accounting software for their home businesses. You can perform many tasks using this web-based software, including keeping track of expenses, creating invoices, and keeping an eye on financial reports. Because it allows for customization, QuickBooks differs from other accounting software. Business owners can alter templates by including logos and limiting access to sensitive data.

Pros

• Tally up credit card transactions
• The taking of bill photos
• Give accounting records to others
• Make contact with the bank to gather reports
• Track your finances
• Observe bank deposits
• Perform the payroll function
• Functional on mobile devices

Cons

• It’s not entirely free

5. Wave

This free program includes all the essential accounting tools most small businesses require, including income and cost management, financial reporting, invoicing, and receipt scanning. You can access these features online or through the mobile app. Payroll and customer payment processing are premium services with an additional cost; nonetheless, all bookkeeping, invoicing, and reporting functions are offered without charge. The payment gateway is how Wave generates revenue. Wave charges 2.9% plus 60 per transaction for Visa, Mastercard, and Discover and 3.4% plus 60 per transaction for American Express to process a customer’s payment. These costs are marginally more than those for other accounting software. 

Wave is the ideal accounting software platform for a service-based small firm that only has to send detailed invoices and doesn’t need to handle payroll. Wave is the best free software in our assessment and will satisfy the accounting demands of many freelancers and service-based organizations. Accountants can get the Wave reports they require at year’s end to create a company’s tax return.

Pros

• Accounting, billing, and receipt scanning are all free
• No transactional or monetary restrictions
• Run several businesses from a single account

Cons

• Limited integrations outside of Zapier
• Only 14 states offer full-service payroll

6. ZarMoney

For companies of all sizes, ZarMoney is a comprehensive cloud-based accounting system. Numerous capabilities are available, including report creation, automated accounting controls, text and email notifications, customizable dashboards, advanced user permissions, and inventory management. With ZarMoney, businesses can boost output while saving money and avoiding mistakes from manual procedures. With this approach, all expenses can be tracked; hence it is the best on-the-go accountant software for tiny and large-scale businesses. 

Pros

• Improved data syncing and sharing
• Interfaces with several services, including Shopify, Stripe, Zapier, Gusto, and Mailchimp
• Pricing is based on a monthly subscription and is per user

Cons

• No free version is offered

7. On Pay

With On Pay, your company will receive free payroll, revenue sharing, cost-free CPE credits, and tools for marketing your business. Its user-friendly dashboard makes it simple to scale and manage everything at a glance or dig deeper into individual customer accounts.

You may maintain control, assign to a team member, or give your clients the responsibility of handling payroll thanks to the numerous levels of user permissions.

Pros

• Client management in one location 
• Simplify bookkeeping and accounting
• grant permissions

Cons

• Users are limited to 5

8. Zoho books

Consider Zoho Books for the best accounting program for a home-based business. The program is an online accounting tool for aspiring business owners who need a simple, practical approach to handling their money. You can quickly manage invoices, payrolls, and costs with Zoho Books to keep track of your spending. You can produce solid and comprehensive reports on balance sheets and cash flow, so consider using Zoho for using loads of features.

Pros

• We have automated financial operations
• Real-time inventory tracking is available
• Integrates several applications, such as PayPal
• Track and group bill payments
• Suitable for companies in a variety of industries
• Multiple honors and awards recipient
• Efficiently manage numerous projects

Cons

• Zoho Books is a paid accounting software

9. Sage

There are various accounting features in the Sage program. Only your data needs to be entered; the program will handle the rest. It presents financial reports in extremely straightforward language that is simple enough for everyone to understand. Bookkeeping record enables managers and business owners to quickly assess a company’s financial health and take actions that will increase cash flow.

Online invoicing is quite advantageous because there is no need to print anything. This lets you see which payments are past due and when a customer has received the invoice.

Thanks to this function, you can determine how much money you make from each item you sell. Additionally, this application can track goods and services that do not require stock tracking. 

You will spend less time tracking inventory thanks to this automatic tool. The tool refreshes your list following each transaction, minimizing the possibility of human error while making manual entries. Two subscription-based plans are available for Sage Business Cloud Accounting, which can be purchased monthly or annually. 

Thanks to this tool, you can quickly recall who owes you money, how much they owe you, and when their payment is due. Additionally, you can speed up payment by sending customers follow-up messages.

Pros

• Modern Inventory
• Stock Control
• Debtor coordinator 
• Digital Invoicing

Cons

• Only a 1-month free trial is provided; the rest you will need to pay for

Conclusion

Both individuals and business owners use accounting software to monitor their income and expenses. The article above was meant to give you thorough insight into accounting software that can help you out with your financial needs. Whether or not accounting is your strong suit, accounting software can streamline processes and make them efficient and seamless so you can focus on other essential business operations.