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The hard part of starting your own business is laying the groundwork. Developing a product or service that meets customer needs and making the decision to go all-in is exciting, even if it might be a little nerve-wracking. The exciting part of starting your own business is what often gives you and your team the energy to keep going while others are relaxing.
What doesn’t keep most business owners excited is accounting. It can still keep you up at night, however. That’s why it is important to choose accounting software that fits your needs and business type. Having the right tool to simplify what most people make complicated is another tool to help you stay focused on growth, and not on filing cabinets.
Here is a look at four of the most used and advantageous offerings on the market, and which one might best suit your type of business.
Manufacturing Businesses Choose QuickBooks
If you want what everyone already knows, QuickBooks is your choice for accounting software. The most popular choice amongst small businesses and startups, the software is designed to act as an all-in-one tool with comprehensive capabilities for all aspects of accounting and financial control. Additionally, its built-in inventory control capabilities help companies, such as manufacturers, do more than just balance their books. Because it is so widely used, it is easy to find accountants, bookkeepers, and advisors who are already knowledgeable of the system and able to quickly implement and utilize its features. The flip side, however, is that the interface can be overwhelming for those without a history of use. If you also consider that to truly get the best use of the best features in QuickBooks, you are going to have to pay for upgrades, then it becomes a question of whether QuickBooks is popular for good reasons or not.
Venture-backed Companies Need Sage Intacct
Sage Intacct is well-reviewed for its suitability for high-growth startups that aim to grow quickly with outside investment. The system is significantly more powerful than traditional small-business accounting software, offering growth potential for businesses that plan to require such capabilities. With the ability to cover multi-entity accounting, Sage Intacct means that a business that plans to be more than just a small business will have room to grow without having to adopt a different accounting platform later. Unfortunately, with great power comes great accountability, and outside consultants could be required to fully utilize the system. That is antithetical to the idea of a “small” business, as it means more people, more costs, and may cause the purchaser to question whether it needs to begin with if consultants are required.
Creatives Appreciate FreshBooks
For small businesses offering creative or specialized services, FreshBooks is a popular choice. The system excels at helping business owners spend less time managing the finances and more time manifesting the magic of creative work. Their customer portal aspect also works well for agencies that look to grow their business by adding companies as customers and keep their processes and communications isolated from each other. However, if companies become more complex through expansion or diversification, FreshBooks can start to underperform. The system offers fewer accounting features than most competitors and lacks the strengths needed for inventory control, making it more of a niche offering.
Professional Services Rely On Xero
When you run a professional service as a business, you rely on clean, orderly systems that keep things simple. Xero provides that benefit by being one of the cleanest and easiest accounting interfaces available. The software is user-friendly, offers strong automation features, and provides unlimited use on most plans, so you are not limited in the number of employees who can use the system. However, with streamlined operation comes streamlined support, and customer support when you are having problems with the software can be slower to respond or meet your needs when every minute matters. The Xero platform is also used by fewer accountants than QuickBooks, so slower integration can be expected.
Ultimately, the best software is the one you can use quickly and easily, that meets your current accounting needs while allowing for detailed analysis and future growth. Support from the creator is key to making sure your financial obligations and business needs are met, while also offering continuous innovation and growth
If you’re deciding which accounting software to use to track growth as leverage when selling your business, reach out to us to help you prepare.