Most start-ups quickly realize that as their business grows, manual bookkeeping is not sustainable. By managing your finances with accounting software, you can reduce the time you spend on repetitive tasks, keep more accurate records, and create professional-looking financial reports. But which accounting software should your startup choose?
Best accounting software solutions for startups
There are three main types of accounting software. Commercial off-the-shelf accounting software (COTS), enterprise resource planning software (ERP), and custom accounting software. For startups, COTS is almost always the right choice. Small businesses will find that ERP software is expensive and unnecessarily complex. COTS, on the other hand, provides all the functionality you need during the boot phase, but it is cost-effective and relatively easy to use. However, as your business grows into a larger enterprise, you need to switch to an ERP platform that can handle more complex financial requirements.
Visit site to know about QuickBooks which is one of the most popular COTS accounting software options with over 7 million customers worldwide. Intuit has two major QuickBooks products, QuickBooks Desktop and QuickBooks Online. The desktop version of QuickBooks is hosted and installed locally on your computer, while QuickBooks Online is hosted on a secure Intuit server in the cloud and can be accessed from any computer, tablet, or smartphone connected to the Internet. . The Online version of QuickBooks offers more third-party integration options than QuickBooks Desktop and is suitable for remote work environments and collaborations with outsourced bookkeeping solutions (freelancers/consultants, independent contractors, financial companies, etc.). ..
Startups are encouraged to choose this platform as their accounting software solution because of the six main advantages of QuickBooks Online:
6 Benefits of QuickBooks Online for Startups
- QuickBooks Online offers an affordable price.
Most startups need to operate on a tight budget in the early stages of operations, so they should choose an affordable monthly fee accounting system. QuickBooks is one of the cheapest options on the market and offers rate plans starting at $12.50 per month with strong accounting capabilities. As your business grows and you need to add users to your QuickBooks plan, you can easily switch to a higher pricing plan without losing your data. Unlike some COTS accounting software, QuickBooks does not bind startups to long-term contracts. You can switch or cancel your subscription at any time and you are not required to pay in advance.
- QuickBooks Online includes various features.
Not only does QuickBooks offer affordable plans, it also offers good value for startups. QuickBooks bookkeeping covers all the basics, including revenue and expense tracking, important reports like monthly financial statements (income statement, P&L, balance sheet, cash flow statement). Upgrade to the QuickBooks Online Pro plan to easily add features such as invoicing (accounts payable), invoicing (accounts receivable), inventory tracking, and sales reporting for growing businesses with more advanced financial needs. I can do this. To see how the QuickBooks feature set compares to other popular bookkeeping software platforms, see Comparing Accounting Software for Startups.
- QuickBooks Online is integrated with many other financial tools.
Most startups use multiple financial tools to manage various aspects of the accounting process, such as payroll software, bank accounts, credit card accounts, invoicing and invoice payment tools. Especially as your business grows, you may need specialized financial tools that can handle the high level of complexity of each facility. Some accounting software options only integrate with certain other platforms, limiting the other financial instruments you can choose from. QuickBooks Online integrates with over 650 other business tools like Bill.com, Expensify, Justworks, PayPal and Gusto to automatically sync all of your data to give you a more complete picture of your startup’s financial status. You can streamline the settlement of accounts at the end of the month. to process.
- Using QuickBooks Online is easy.
Many start-ups and small businesses are starting to use QuickBooks Online for the user experience. QBO is one of the easiest accounting software platforms to implement, offering users better functionality than spreadsheets. More complex platforms like NetSuite and Sage can require months of setup before the software can be used, and it can take thousands of dollars to migrate the data to third-party professionals. With QuickBooks Online, you can get started with the platform within the first day and it may only take a few days to complete data migration and setup (depending on how long your business has been running). .
The QuickBooks Online interface is user-friendly and intuitive, so even founders with limited financial experience can find the information they need to get started with basic bookkeeping. QuickBooks provides video tutorials that explain how to use the platform, including the virtual orientation process and other online lessons. In addition, you can contact the QBO customer support team for technical support or additional assistance via email, online chat, phone or even video chat. We also provide a variety of templates and sample charts to help you get started. However, like any accounting software, you can benefit from using a bookkeeping service as soon as possible to avoid common startup bookkeeping mistakes.
- QuickBooks Online is popular among bookkeepers, accountants and financial companies.
When choosing a bookkeeper, accountant or financial company to work with a startup, it is important to know if they have experience with your accounting software. If you are not familiar with your platform of choice, you are more likely to make mistakes or miss opportunities in your accounting process. Particularly if you opt for rare or completely new accounting software, it can be difficult to find a financial professional who has the right experience in managing software and who will provide you with the professional advice and guidance you need for your business. . One of the benefits of using QuickBooks is that it’s a well-established and popular choice among accounting professionals (often QuickBooks certified), so you’re familiar with the platform and have a business account. It’s easy to find an accountant who can help you manage. proficiency level.
- QuickBooks Online stores your records securely in the cloud.
QuickBooks Online is ideal for startup teams working remotely or globally, as they can access their financial records from anywhere in the world, rather than being limited to a specific computer with accounting software installed. Accountants are not required to be on site or have physical access to the office. They only require a login and password to access your company’s files, and you can choose from a wide range of financial companies.
Cloud storage is also a more secure way to keep accounting records. If your computer is damaged or malfunctioning, your important data will be stored remotely and will not be affected. Unlike using physical software that needs to be updated or reinstalled on a regular basis, cloud-based accounting software is updated centrally and always uses the latest version automatically. This is especially useful during tax purposes. It gives CPAs seamless access to books, receipts, invoices and other important documents irrespective of their physical location.
How to Get All the Benefits of QuickBooks Accounting Software
Many start-ups don’t benefit from all the benefits of using QuickBooks. Most business owners can get started with a basic QuickBooks setup, but often they don’t have enough experience with the platform to optimize their software usage and better support their business finances. Many founders find it difficult to monitor and verify all billing information in their QuickBooks account due to the high demands on time, leading to costly accounting mistakes..