Accounting Tools for Business Decision-Making

Whether you’re starting a business or have been running a business for ten years…it is easy to get swept up with everyday operations and neglect your businesses’ finances. Then, when tax time comes around, we’re left scrambling to find invoices and receipts.

That’s why you need solid accounting software as a small business owner. Not only is it necessary to help you report your financial statements for your taxes, investors, and stakeholders, it can help you make important decisions about the future of your business.

So, here, we’re giving you the 101 on all the best accounting tools for small businesses to make sure you’re never scrambling at the last minute.

Friendly Disclaimer before we continue:

Physio Inq is not an accounting consulting firm. We are simply providing you with the best information we could find. We get it - every individual business has its own unique set of needs. We hope these tips can help you make the right choice for your own small business.

What accounting and bookkeeping software do I need for my small business?

Simply put, accounting tools refer to the resources that help you with your financial management. Also sometimes known as bookkeeping software, the best accounting tools help you automate your expense tracking, budgeting, invoicing, and more.

The benefits of online accounting tools include:

• Less stress when taxes are due
• Confidence about the state of your business finances
• Better decision-making capabilities based on accurate financial data
• Blends a DIY attitude with powerful organisation

Before you choose an accounting tool to help you with your small business finances and decision-making, there are a few things you should consider.

Figure out what you need

Every small business has different accounting needs. You might sell a tonne of products requiring invoicing services and retail accounting. You might offer a subscription service and require a totally different system. Maybe you operate internationally and need specific tax software.

As you’re researching your options, there’s no need to get accounting tools that have all the bells and whistles but won’t really be required for your unique circumstances. So, narrow it down to choose one that works for you.

Be realistic about what you can afford.

Before choosing the accounting tools you’ll use for your small business, be honest about your budget. That will help you narrow down your search even more, instead of wasting time researching software that costs far more than you can afford.

After all, there’s a lot to work with in terms of free and affordable accounting tools for your business.

Pick Accounting Tools That Grow With You

As the saying goes, the only constant is change. Things will inevitably change in your business so it’ll be smart to choose accounting tools that can adjust and grow with your business.

Many of the basic tools of accounting have options to upgrade for access to more features and benefits. Instead of picking a one-size-fits-all solution, it could be advantageous to get accounting and bookkeeping software that can grow as you scale your business.

Top 9 Accounting Tools for Small Businesses

Enough of the chit-chat. Let’s dive into the best financial accounting tools for business decision-making.

Xero

Xero has proven itself to be an innovative business, creating accounting software that was designed with both the business owner and the accountant in mind. (Most other software’s focus on one or the other, which can lead to either a frustrated business owner or one paying excessive accounting fees).

Furthermore, Xero attracts loads of media attention and investment, resulting in significant research and development. This means that their accounting software is state-of-the-art and the most likely to be the first to make effective use of artificial intelligence, saving business owners even more time and money.

The Xero Marketplace lists thousands of other cloud software businesses (such as Shopify, Point of Sale software, timesheet software and inventory management software) that advertise themselves with the ability to integrate with your Xero file. No other accounting software boasts such an array of options.

Pros:

• Contains all the essentials that most small businesses will ever need
• Software that is constantly being improved at a quicker speed than the competitors
• Ability to integrate with thousands of other cloud software options

Cons:

• For a Physiotherapy business there really is no negatives, at least when comparing Xero to the other available options. Xero should be able to accommodate all the needs of a Physiotherapy or allied health business.

Freshbooks

Freshbooks is an incredible accounting tool for small businesses. It allows you to send out recurring invoices automatically and works well if your business runs on a subscription model. It tells you exactly where and when a client opened an invoice and, of course, does all the basics you’d expect from a bookkeeping tool in terms of financial tracking.

The dashboard interface is user-friendly and there’s also a mobile app available. Starting as low as $6 a month with options to upgrade, Freshbooks is a solid place to start with small business accounting tools.

Pros:

• Easy-to-use dashboard
• Mobile app
• Affordable

Cons:

• Not specifically compatible with other programs

Intuit Quickbooks Online

Intuit Quickbooks is undoubtedly one of the most popular accounting tools on the market. It allows you to track payments, send invoices, organise expenses, do your taxes, and, essentially, all the major requirements you’re probably looking for in accounting software.

It’s also compatible with PayPal, Shopify, and Square while offering 24-hour customer support. Intuit Quickbooks starts at $8 per month with upgrade options offering inventory and time tracking as well as full payroll capabilities.

Pros:

• Popular
• Compatible with other programs
• Upgradable

Cons:

• No free version
• Might have more features than you need

Again, every small business is different. What works for one business owner could be totally wrong for another. Still, we hope this guide helped you find the best accounting tool for small business decision-making in your company.

Date Published: Wednesday, December 16, 2020
Date Modified: Tuesday, July 16, 2024