Cloud-based accounting software has come a long way. Today, the software comes with a myriad of bells and whistles, each with a unique set of customizations, programmability, and features. This makes choosing cloud-based accounting software that fits your specific business requirements a little tricky.
In this blog, we have listed some of the best cloud-based accounting software. We will also go through specific functions that you should be looking for while choosing the right software.
Best Cloud-Based Accounting Software
Here is our list of the best cloud-based accounting software. Our recommendations include cloud-based solutions that are secure, user-friendly, and overall helpful accounting firms.
QuickBooks Online
QuickBooks is a leading cloud-based accounting software. It automates bookkeeping and connects to bank accounts. The software allows invoices, expense management, real-time financial tracking, and reporting from any device. It integrates with the existing software of the firm and with the third-party software. The software helps with tax deductions. It includes tax categories, calculations, and tax season documents for exportation. It offers various subscription plans, simple start, essential, plus, and advanced. The plans offer the options of monthly and yearly pay.
| Software Name | QuickBooks Online |
| Allows | Invoicing, expense management, real-time financial tracking, and reporting from any device. |
| Integrates with | Existing software of the firm and with the third-party software. |
| Subscription plans | Simple start, essential, plus, and advanced |
| Link | https://quickbooks.intuit.com/global/online-compare/ |
FreshBooks
FreshBooks is a cloud-based accounting software known for being user-friendly. It is easy to use and has a simple user interface and user experience. It helps track expenses, filing taxes, creating custom invoices, and billing vendors. The software offers 4 subscription plans; Lite, Plus, Premium, and Select.
| Software Name | FreshBooks |
| Reputed for | Being user-friendly |
| Aids in | Tracking expenses, filing taxes, creating custom invoices, and billing vendors. |
| Subscription Plans | Lite, Plus, Premium, and Select |
| Link | https://www.freshbooks.com/?srsltid=AfmBOoqyi-a7QeZiHNyBA2Z1sDJwBhDngB7nnWW-7xNO2e7i7HDZINa5 |
Xero
Xero was founded in New Zealand and is one of the leading cloud-based accounting software available in the market today. It enables automated bank reconciliation, real-time financial management, and invoicing from any device. It operates on a SaaS subscription model and offers different levels based on the needs of business. The software integrates seamlessly with third-party applications. It allows multiple users and is affordable.
| Software Name | Xero |
| Founded in | New Zealand |
| Enables | Automated bank reconciliation, real-time financial management, and invoicing from any device. |
| Subscription model | SaaS based |
| Integrates with | Third party applications |
| Link | https://www.xero.com/ |
Sage Intacct
Sage is a top rated, cloud-based ERP and financial management software. It ensures high-level cyber security. Sage Intacct is the only AICPA referred software. The software features AI-driven automation for multi-entity management, and core accounting. It also offers real-time reporting, and deep integration with tools like Salesforce.
| Software Name | Sage Intacct |
| Ensures | High-level cyber security |
| Features | AI-driven automation for multi-entity management, and core accounting. |
| Offers | Real-time reporting, and deep integration with tools like Salesforce. |
| Link | https://www.sage.com/en-us/sage-business-cloud/intacct/ |
Wave Accounting
It is a user-friendly, free cloud-based accounting software. It specializes in contractors, small businesses, and freelancers as a services provider. It offers core bookkeeping, reporting tools, and invoicing without subscription fees. The software enables users to track income or expenses and manage financial reports in one place. Along with this, it also offers receipts for scanning through mobile phones.
It automatically integrates with bank accounts to keep the financial data up to date. It allows multiple currencies. The paid services of the software include expert coaching, payment processing, and payroll. The software allows multiple users to use the software at the same time.
| Software Name | Wave Accounting |
| Target users | Contractors, small businesses, and freelancers |
| Offers | Core bookkeeping, reporting tools, and invoicing without subscription fees |
| Paid services | Expert coaching, payment processing, and payroll |
| Allows | Multiple users to use the software at the same time |
| Link | https://www.waveapps.com/ |
NetSuite
NetSuit is a complete, one-stop shop for businesses looking for a cloud-based solution for financial management. The product provides a fully automated, scalable, organized and efficient way to run your business operations in real time. The product has been developed to include several forms of artificial intelligence (AI) to enhance the various functions of the business program including; bank reconciliation, revenue recognition and invoicing.
The application has integrated both basic accounting and compliance with inventory management and order processing. The software also provides multi-national (multi-currency) and multiple subsidiaries (multi-divisions) capabilities through NetSuite One World.
| Software Name | NetSuite |
| Purpose | To automate, scale, and well-organize business operations in real-time. |
| Offers | AI-driven automation for bank reconciliation, revenue recognition, and invoicing. |
| Integrates | Core accounting with tax compliance, inventory, and order management. |
| Link | https://www.netsuite.com/portal/in/home.shtml |
How to choose the Best Cloud-Based Accounting Software?
The cloud-based accounting software can vary for different firms and businesses. It depends on your needs regarding choosing the software.
Here is a list of criteria you can check before choosing the best accounting software for your business:
Specifications: It is important to have an accounting program that includes some of the essential functions that will help manage payments and cash flow. Look for expense management, automatic invoicing, automatic tax compliance, and automatic bank reconciliation. Additional features include real-time financial reports generated automatically.
The accounting program should also have the necessary accounting tools, such as accounts receivable (AR), accounts payable (AP), and inventory management. All of these will assist your company in lowering IT expenses and making data-supported decisions.
Strict Data Security Systems: It is a very common concern for businesses. It is very important to ensure that your firm’s data will be secure with your chosen software. The software must provide data-encryption, multi-factor authentication, back-ups, and secure communication. It must comply with the GDPR regulations or tax laws. This will help the business keep the firm’s data secure, and in protecting it from cybercrime.
Seamless Integration Capabilities– A great accounting program must be able to integrate well with other tools already in place. This will allow for easy exchange of information, real-time workflow automation, and increased productivity. It also helps different areas work together to achieve their goals by providing opportunities for collaboration and quicker decisions.
Accessibility across Multiple Devices- Accessibility of cloud-based accounting software on different devices permits flexible and easy access to data on your device. It ensures that the business runs smoothly even when you are not at the workplace. Device accessibility helps accomplish accounting as easily on your device as on your desktop.
Transparent Cost-Structure- Before making a choice for the best cloud-based accounting software, it is necessary to analyze the cost payable to the provider for the software. Focusing only on the starting price tag of software is a huge blunder. The cost can include hidden expenses which result in an increased cost of the software.
Business owners and CPA firms should analyze the total cost of software ownership. This includes subscription fees, training, potential fees for support, data transfer, and add-on costs. It is important to analyze costs to avoid budget overruns and ensure profitability.
Conclusion
If you are still employing traditional accounting, it’s high time to consider cloud accounting software benefits. The right software for your business or firm will help you increase your revenue, generate more profits, and streamline many of your accounting processes.
In this blog, we have listed some of the best cloud-based accounting software. Before choosing the right cloud-based accounting software, it’s best for businesses to conduct an internal evaluation. This helps them assess what gaps in their accounting process can be filled through automation.
You can also look up specific use cases for how you can choose the right software for your business. This blog serves as a guide for accounting firms in their journey to finding the right accounting software.
