6 Best Accounting Software for Small Businesses in 2023

Income and expenditures can be easily monitored with the use of accounting software. Reports like P&Ls and balance sheets can be generated by any accounting experts in India using the software as well. Invoicing, handling receivables as well as payments, and stock control are all standard elements of accounting software. 

In order to keep tabs on finances, prepare for tax time, and keep track of accounts and expenses, small business owners can benefit from accounting software. Compared to employing a large accounting firm or an accountant to handle taxes and payroll, software is often a more cost-effective option for small firms. However, picking a solid answer from the numerous available today can be difficult.

Advantages of using an accounting software: 

Advantages listed by VNC Global - one of the most distinguished accounting automation experts in Australia on using an accounting software:

• Accuracy: Accounting software can help reduce errors and increase accuracy in your financial records.

• Efficiency: Accounting software allows you to automate many tasks, such as generating invoices and tracking expenses, which can save you time and effort.

• Security: Accounting software typically includes built-in security measures to protect your financial data from unauthorized access.

• Collaboration: Many accounting software programs allow multiple users to access and update financial records, making it easier for you to collaborate with your team.

• Reporting: Accounting software can generate various reports, such as profit and loss statements and balance sheets, which can help you track your financial performance and make informed business decisions.

• Compliance: Using accounting software can help you stay compliant with tax laws and other financial regulations.

• Scalability: As your business grows, accounting software can scale with you and handle increased workload and complexity.

How to choose the best accounting software?

Here are some tips to help you choose the best accounting software for your business:

• Determine your needs: Before you start looking at different software options, it's important to assess your business's specific needs. Consider factors such as the size of your business, the type of industry you're in, and your current financial processes.

• Research different options: Look for software that offers the features you need and compare prices from different vendors. Consider reading reviews and speaking with other businesses that use the software.

• Consider integration: If you already use other business tools, such as a customer relationship management (CRM) system or a project management tool, look for accounting software that can integrate with these systems.

• Think about scalability: If you anticipate your business growing in the future, choose software that can scale with you and handle increased workload and complexity.

• Evaluate customer support: Consider the level of support and training that the vendor offers. Look for software with a responsive customer support team and resources such as user guides and tutorials.    

Types of Accounting Software used by Accounting Experts in India:

• Cloud-based accounting software: Cloud-based software is accessible online and hosted on the vendor's servers. Compared to on-premises alternatives, this accounting software is more cost-effective and provides convenient always-on accessibility.

• On-premises accounting software: When a business uses "on-premises" software, it means the software is installed on its own internal servers. Compared to cloud-based alternatives, this accounting software is often more expensive and can be more challenging to set up and operate.

• Enterprise accounting software: This sort of software is geared toward corporations with advanced accounting requirements. Having greater functionality and room for personalization, this accounting software is also more expensive.

• Small business accounting software: The accounting demands of small firms are best met by this type of software. In general, accounting software aimed at smaller businesses will be less expensive and feature-rich than alternatives.

• Open source accounting software: In general, free software like this one allows for more personalization options than their premium counterparts. Accounting software that is freely available to the public may be more challenging to install and operate.

• ERP accounting software: ERP accounting software is meant to work in tandem with other business tools, such as customer relationship management and e-commerce systems. ERP accounting software may be more costly and complicated to implement and use.

• Commercial accounting software: This type of software is made for corporations of any size. Cloud-based and on-premises deployment options are both viable for commercial accounting software.

• Industry-specific accounting software: Whether a company operates in the construction sector, the industrial sector, or the retail sector, it will benefit from this software. Typically, accounting software that is designed for a given sector will have functions that are more relevant to that area.

Features of accounting software you must know

• Accounting: To prepare financial statements, tracking spending and income, and creating invoices are all examples of accounting functions.

• Invoicing and Billing: This system makes it easy to issue invoices, track payments, and save relevant client data.

• Inventory management: Managing inventory entails functions including keeping tabs on stock, calculating replacement costs, and placing orders for new supplies.

• Payroll: While not all bookkeeping packages provide payroll processing capabilities, some do provide tools for monitoring employee time and attendance, determining payroll taxes, and dispensing pay.

• Project management: Included in the realm of project management are tools for making and monitoring budgets, delegating work to team members, and keeping tabs on the overall project's development.

• Reporting: Reporting capabilities encompass a wide range of uses, from simple record keeping to in-depth analysis of business metrics.

• Customer relationship management (CRM): The term "customer relationship management" (CRM) refers to a broad category of software programs whose primary function is to manage relationships between businesses and their customers.

Limitations and Challenges faced by Accounting Automation experts in Australia:

There are a few limitations and challenges to using an accounting software:

• Cost: Some accounting software can be expensive, especially for larger businesses with more complex financial needs.

• Implementation: Implementing an accounting software system can be a time-consuming process, especially if you have a large amount of financial data to transfer.

• User error: Despite the accuracy benefits of accounting software, mistakes can still be made if the software is not used correctly.

• Limited customization: Some accounting software may not offer the level of customization that your business requires.

• Integration issues: If you use multiple software programs, there may be challenges with integrating the different systems and ensuring data is transferred accurately.

• Dependence on technology: If you rely heavily on your accounting software, a technical issue or malfunction could disrupt your business operations.

• Data security: While most accounting software includes built-in security measures, there is still a risk of data breaches and unauthorized access to your financial information. It's important to regularly update your software and take additional measures to protect your data.

Accounting software, despite these drawbacks, is nonetheless useful for organizations of all sizes. It is crucial to evaluate the requirements of your company and the characteristics of several accounting programs before settling on one.

Here is a rundown of the top accounting software trusted by VNC Global - one of the premier accounting experts in India, for startups to help you select the best one for your company.

1. Zoho Books

2. FreshBooks

3. Xero

4. Intuit QuickBooks

5. NetSuite

6. Sage Business Cloud Accounting

1. Zoho Books:

VNC Global ranks among the top-class accounting automation experts in Australia that use Zoho Books for accounting management. Some of the benefits include

• Improved accuracy and efficiency: Zoho Books can automate tasks like invoicing, expense tracking, and bank reconciliation, reducing the risk of errors and saving time.

• Enhanced collaboration: Zoho Books allows multiple users to access and collaborate on financial data, improving communication and enabling teams to work together more effectively.

• Convenient access: Since Zoho Books is cloud-based, it can be accessed from any device with an internet connection, allowing users to manage their finances from anywhere.

• Customization options: Zoho Books allows users to customize invoices, estimates, and other financial documents with their own branding and design elements.

• Integrations: Zoho Books integrates with a range of other business tools, including CRM, project management, and e-commerce platforms, making it easier to manage all aspects of a business from one location.

Overall, using Zoho Books for accounting management can help organizations streamline their financial processes, improve collaboration, and access financial data from anywhere.

2. FreshBooks:

The selection of suitable accounting software is one of the most important choices a small business can make. We'll explore why FreshBooks is a great option for companies of all sizes.

This software streamlines the process of data collection, tracking, and delivery to customers. Not only that, but it also works well for handling front-end accounting.

• Easy Invoicing: Integrating payment methods into FreshBooks facilitates straightforward billing. It can generate repeating bills, email those invoices, accept payments online, and let you tweak the look of the invoices themselves. FreshBooks also features a function that notifies you when a client has opened an invoice sent via email. And this makes it simple for small firms to keep tabs on their invoices and payments.

• Effective Time Tracking: Companies typically struggle when trying to determine how long a given project actually took. However, you can avoid this issue altogether by incorporating payments into FreshBooks.

• Intuitive and simple Interface: FreshBooks' straightforward, understandable, and intuitive UI is a big selling point for many organizations. Because of the lack of complexity and confusion, FreshBooks has become a favorite among businesses.

• Integrated Payment Processing Options: With FreshBooks' built-in PayPal connectivity, you won't have to manually set up your PayPal account using the Simple Port.

• Accurate Payroll Information: One of FreshBooks' finest benefits is that it facilitates precise payroll processing. Really, how is that even possible? Did you know the FreshBooks mobile app offers a time-tracking feature? As a result, FreshBooks's use of this technology allows for a beautiful synchronization of payroll expenses, allowing you to quickly and easily compute payroll for your staff.

3. Xero:

The fact that it's cloud-based means that it's easier for users to keep track of all that needs to be done in terms of basic bookkeeping and other accounting, which is why it's gaining popularity.

Many different kinds of accounting software are available to accounting experts in India today, and these days, the vast majority of them operate in some kind of cloud environment. Whether or not to use Xero is the primary consideration for each small business. If you are looking for the most trusted accounting service provider, VNC Global is a reliable Xero expert in India.

Check out a few benefits of using Xero accounting software for small businesses.

• Currency Conversion: A simple method of exchanging money is a major selling factor for any company with global expansion goals. So, Xero has it, then! There is no need for you to perform any currency conversions manually because a convenient automated converter is already included.

• Automated Bank Feeds: In keeping with the theme of increased efficiency through technology, Xero has opted to fully automate bank feeds. It's now possible to automate the process of integrating bank statements by setting up a bank feed.

• User-Friendly: The fact that accounting software is simple to use is arguably its greatest advantage. Software that is difficult to use will not sell. Many people who have tried Xero have said that it was simple to learn how to use, even if they had no prior experience with accounting.

• Accessible: Xero is available from any location and on any device because of its cloud-based nature. In the early stages of a company's development, when the company may not yet have a permanent location for its operations, Xero is the best choice. Xero is one of the most convenient accounting software applications since it can be used remotely, whether the user is at home or on the road visiting clients.

• Easy Integration: Xero works wonderfully as a standalone application, but it also plays well with others thanks to its flexible API. Xero is one of the most interoperable applications available, and it may be easily integrated with other systems, including those used by payroll providers.

4. Intuit Quickbooks:

With QuickBooks Online, business owners can access their financial data from anywhere, at any time. Access your account on QuickBooks from anywhere in the world, whether you're a bookkeeper, accountant, or business owner. For companies that provide a service, this web-based platform is ideal.

The following are some advantages of QuickBooks Online:

• Improved data access for both staff and accountants.

• There is no need to manage any software or save any data locally.

• A full-featured help desk with live chat

• App updates can now be downloaded automatically every night, simplifying the syncing process.

• Your information is safe on Intuit's servers, and there are no backups to worry about.

• Invoices and bank statements can be sent immediately.

• Messages can be sent out mechanically

• Credit card and bank account activity will be downloaded nightly

• Control stock using a FIFO system (FIFO)

• Multiple windows can be opened simultaneously.

• The apps for the iPad and iPhone are completely free, and they sync automatically.

• Provide the option to pay with a credit card or e-check (Electronic Check) if desired.

5. NetSuite:

In addition to facilitating fast, accurate reporting and better control over financial assets, NetSuite cloud accounting software streamline the process of managing payables and receivables, recording transactions, tax collection, as well as closing the books. ASC 606, GAAP, SOX, and other financial regulatory compliance standards can all be met with the help of timely access to accurate financial data, allowing for in-depth analysis and prompt problem-solving.

• Accounting All in One Place: Profitability ratios, liabilities, inventory margins, taxes, fixed assets, as well as cash positions are just some of the financial variables you can monitor in real-time. Make sure you're following all the rules when it comes to accounting, government rules, taxes, and company policy.

• Do More: Finance teams can save dozens of hours per month by automating mundane operations like making journal entries or balancing account statements and avoiding the need of collecting as well as normalizing data from other departments. They are free to concentrate on checking out the particulars of transactions, looking into oddities, and examining patterns.

• Access Anywhere: When you keep information on the cloud rather than on your local server, you can access it from any location with an internet connection, not just at the office. Everyone from the C-suite to the operational teams and the accounting department can do their jobs remotely.

• Accounting and Beyond: NetSuite can accommodate your evolving needs as a business owner. The capabilities of financial management, order as well as inventory management, human resources, customer management, eCommerce, and more may all be handled by the same unified platform which is NetSuite accounting software.

6. Sage Business Cloud Accounting:

When it comes to managing your company's finances, a computerized program like Sage accounting can't be beaten. Sage software is highly popular among the top accounting automation experts in Australia. Information is gathered, organized, and summarised in an understandable fashion so that monetary details can be viewed in the simplest terms possible. Among the various features that a Sage system offers are:

• Possibility to generate invoices on paper

• Refreshing databases of buyers and sellers

• Putting Money Down

• Accounting data is automatically refreshed

• Stock-level adjustments made mechanically

• Payroll is automatically calculated

• Provides a summary of past-due client accounts

• Stock Valuation

• Sales Analysis

• VAT returns

• Rule out human error: In order to avoid mistakes like transcribing the wrong numbers or losing paperwork, it's best to keep all of your financial records in a centralized database accessible only by computer. The user greatly benefits from an accurate system because these seemingly insignificant mistakes can have a devastating impact on a company's financial situation.

• Real-time financial information: Because the system is updated in real-time, you may log in at any moment to view the current status of your account and all of the transactions and cash flow to date. This can be helpful if you need to verify which transactions have gone through or if you just want to see if you have enough money to cover any unexpected expenses that may arise.

• Less time-consuming: Instead of entering the same information multiple times, you just need to enter it once into the system, saving you time and effort.

• Keep things simple: Accounting gets a lot more complicated when firms expand. Accounting that is done using a computerized system is considerably simpler and quicker because all of the data is sorted and organized in advance.

• Cost-effective: Due to the reduced need for human labor and time, Sage accounting software is more cost-effective than manual methods. In addition, the typical monthly subscription cost for the systems is quite cheap.

Final Thoughts:

For a company, the use of accounting software can boost accuracy, efficiency, and safety in many ways. It's crucial, though, to assess your company's specific requirements before settling on a certain piece of software. Accounting software comes with its own set of costs and implementation hurdles that users should be prepared for. If you are looking for Accounting Experts in India, Australia, Singapore, etc., VNC Global is the right place for you.