Accounting is one of the most critical elements of your business. So, the right tools, such as accounting software, are a necessary investment. Thanks to free accounting platforms on the market, small businesses don’t always have to incur high costs to keep the books in order.
What Does Accounting Software Do?
Business finances require meticulous management to ensure everything goes as expected. Accounting software makes this task easy by handling different bookkeeping functions. It helps you monitor cash flow in and out of the company, which saves time. You can link the tool with your payment solutions to monitor invoicing. Accounting software comes with various features that differ from one vendor to the next. You can find options offering the most basic functions and others that streamline different operations. Always consider your business requirements when choosing accounting software.
How much do Accounting Software Solutions Cost?
The right bookkeeping software can make a big difference in how you run your company. How much you pay for an accounting tool depends on a few things. Firstly, prices range across providers. Some have products starting at £11 a month, while others charge as much as £40 monthly. Big-name brands tend to be more expensive than new, lesser-known vendors. The features bundled into the software also influence the price. For example, if you want a product that merges with your online payment processing, then you will have to pay more. Shipping is another feature that increases the cost of accounting software. You can find providers with discounts on selected products, allowing you to save money. Free trials are also available for most products.
Which Free Accounting Software Solutions are deemed the best for 2022?
You don’t always have to pay for accounting tools, especially if you run a small business with a limited budget. The market has a host of free platforms that provide great features. Below are some of the top options.
Wave Accounting
The Wave accounting solution rates highly because it’s one of the easiest to use. You get several functions, including invoicing, unlimited income tracking, and sales tax monitoring. It has a dashboard where you can track different elements easily. You also get an iOS and Android invoicing app. Wave is cloud-based, meaning remote access and uncomplicated scalability of your accounting resources. If you want payment solutions for your business, then you would have to get the paid version. Additionally, the software doesn’t support the new MTD protocol for VAT.
Zoho Invoice
Is invoicing your biggest concern? The Zoho Invoice is the perfect free platform for your enterprise. Besides creating invoices from one account, the software provided time tracking. Therefore, you can streamline project billing and avoid mistakes. A client portal lets you chat with customers. Expenses tracking and MTD VAT filing are available. Zoho Invoice is cloud-based and is available on desktop and mobile. However, it has a few features and limits the number of invoices to 1,000 a year. If you decide to try the paid version, Zoho boasts one of the most comprehensive platforms, with bulk updates, tax tracking, and timesheets.
GnuCash
For truly free accounting software, GnuCash is a top contender. You can use it for both personal and business needs. It’s suitable for Linux, but can also be downloaded on Windows and Mac OS. Vendors tracking, bank account monitoring, and invoicing are some of the platform’s functions. If investment tracking is your main focus, GnuCash helps you keep an eye on commodities, stocks, and other assets. The platform only offers basic features. So, you can’t use it with payment software solutions. Also, it has a bit of a learning curve.
ZipBooks
A ZipBooks single account gives you reports, syncs bank accounts, manage expenses, and provides billing and invoicing. So, you have most of the main features of accounting software. You also enjoy unlimited invoicing, making the platform ideal for a service-based business. ZipBooks has a customer portal. The paid plan lets you save invoice line items, auto-bill customers, and track time. If you intend to link online payment processing, you have to use PayPal or Square. Therefore, the corresponding standard rates apply. Additionally, you can pay for an integrated payroll, which ZipBooks offers in partnership with Gusto.
Sunrise by Lendio
For a company where profit and loss statements are a priority when choosing an accounting tool, Sunrise is a good bet. It makes it easy to keep up with profits and losses. Apart from generating P&L statements, Sunrise offers expense management, invoicing, and income management, among other functions. You can create customized invoices and receive online payments. For a small monthly fee, the platform provides auto-categorized expenses and cash flow insights. You can also integrate payment software solutions. However, credit card processing on Sunrise is costlier than on other platforms. Sunrise has iOS and Android apps.
Conclusion
The right accounting software doesn’t only simplify the management of finances. It saves resources by serving other functions like time tracking, job monitoring, and forecasting. Therefore, you must select a platform that offers as many features as your small business requires. Although free accounting tools might not have everything, you can find products with crucial functions, including integration with payment solutions.