Best Accounting Software for US Businesses in 2023
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Accounting is an essential aspect of any business, big or small. With the advancement of technology, businesses are now able to streamline their accounting processes and make informed financial decisions with the help of accounting software.
In this blog, we’ll discuss the top accounting software for US businesses in 2023. With numerous options available, it can be overwhelming to choose the right one. We’ll consider features, user-friendliness, affordability, and customer support to help you make an informed decision.
What is Accounting Software?
Accounting software is a computer tool that helps businesses keep track of their income and expenses. Reports, like profit and loss statements and balance sheets, can also be made with the program. Most accounting software has tools for sending out invoices, keeping track of payments, and managing stock.
Even the smallest business will gain from using accounting software instead of spreadsheets or a paper-based system. Not only does it make it easier to keep track of your company’s finances, but it also lets you get your tax and VAT reports ready and sent in faster.
But there are so many deals out there, how do you choose the right one for your business?
Basically, all of the best accounting software is made to help you keep track of your company’s expenses and income, send invoices, and make financial reports about your business. But there are some things you might want to look out for. For example, do you want a PC solution or a solution that is in the cloud?
Most people in 2022 will want to use the best online accounting software because it lets you do your books whenever and wherever you want. This makes it easier to run a business from afar. Also, most financial software for small businesses that run on a desktop will be phased out over time.
If you don’t know much about accounting, you might want a package that is easier to use because you won’t want to spend a lot of time setting up your system or looking for important features.
The Best Accounting Tools in the UK in 2022
In the past year, automation and managing cash flow have been big subjects, and for good reason. Even if you have a small business, these are the top things you should have. In these times of pandemics, it has been important for many small and medium-sized businesses to be able to project and predict their cash reserves.
Being able to instantly send recurring invoices and overdue notices is a great way to save time and get paid faster. The same goes for being able to take payments online. Quotes can be turned into bills with just one or two clicks, but this isn’t something that all small business accounting software can do.
In the same way, programs that update information in real-time through direct bank feeds will make it unnecessary to enter new information by hand.
Dashboards that put together different data are a great way to get a quick look at how your business is doing financially and may be something you want to look for in the package you choose.
Best Accounting Tools for a Small Business in the UK
Having the ability to handle incoming and outgoing payments and payroll will also make life much easier. For bigger businesses that need to connect with POS systems, e-commerce, ERP, CRM, email marketing, and Google apps, third-party integration will work well. Again, this is not something that every package has.
For producers, an inventory-tracking feature lets them keep an eye on how much stock they have. Consultants and service providers should look for a time-tracking feature that makes it easy to keep track of billable hours and send out invoices.
When choosing the best accounting software package, tax preparation is a feature that almost every business will find helpful. Being able to automatically calculate your tax and send your statutory returns to HMRC is a great feature to look out for.
What is the Best Accounting Program for your Small Business?
Which one should you choose? Here’s a quick look at some of the best accounting tools for small businesses.
- Xero – is the best accounting software for small businesses in the UK.
Xero was the first online accounting system that small companies liked and for good reason. At BrooksCity, this is also how we set up all of our new clients.
The great thing about Xero is that it can change your needs and grow with you no matter what kind of business you run. One reason for this is that they work with more than 800 other business apps.
They give you everything you need to do your taxes, and they put a lot of effort into automating things to save you time. Who doesn’t need more time these days.
It’s easy to set up online invoicing, automatic payments, and friendly notes for invoices that haven’t been paid. Thanks to Xero’s smart matching technology, which imports and sorts transactions for you, you can connect to your bank and reconcile your bank accounts in seconds.
You can use their mobile app, which is available for both iOS and Android, to check on your finances from anywhere. You can also send invoices and scan receipts to make cost claims while you are out and about.
If you need help, you can get it from the community, through email, at training events and workshops, or you can just ask us.
Free for 30 days. The basic plan, which lets you send as many invoices as you want, starts at £24. All plans have extra costs for payroll, bills, projects, and the CIS scheme.
- Quickbooks– is the best accounting program for small businesses in the UK.
QuickBooks leads cloud accounting with approximately 4.5 million customers. Their platform allows it. Download and reconcile credit card transactions fast, organize weekly timesheets, and manage bank deposits with real-time transaction data.
Scan receipts and bills to prove expenses or share with stakeholders. It generates invoices, bills, and reports using customizable templates with business logos and information. Pay-enabled invoices allow you to take payments faster online and immediately alert late payers.
QuickBooks SmartScanTM technology lets you check your VAT return before submitting it. You may also automate workflows with over 700 business apps.
Set up payroll in minutes. Their advanced payroll can automate your pay run and comply with complex schemes, CIS, salary sacrifice, and court order deductions.
30-day trial. Self-employed people like “Simple Start” at £12 per month. Small and medium-sized enterprises get the best value with the £30 monthly “Plus” plan. Multi-currency, up to 5 users, project profitability, estimate and bids, budgets, and time tracking.
- Sage Business Cloud Accounting — Easy-to-use cloud accounting software
Sage One before. Start-ups, small businesses, freelancers, and anyone who requires a simple accounting system with invoicing, tax, and profit and loss information should use it. It’s simple and requires little accounting knowledge.
Chat, phone, and email help are available. Sage Business Community provides additional support. As of 2021, they have over 100 app connectors to automate accounting workflows. Previously lacking.
Credit-free 30-day trial. Standard options for single entrepreneurs and small firms start at £12 per month, although there are constant promotions.
They also comply with Making Tax Digital (VAT), RTI, auto-enrolment, and GDPR.
- FreshBooks – Best new UK accounting software for small businesses.
Last year, cloud accounting giant FreshBooks launched in the UK. FreshBook may be a new accounting software option. Best for service providers, freelancers, and micro-businesses Freshbooks offers more than just accounts.
Their project management, chat, file sharing, estimates, and time-tracking features are great for centralizing operations. This makes it easy to invoice your billable hours and receive payment online, simplifying your workflow.
Most will like their productivity suite, clean, modern, and user-friendly interface, and over 100 integrations with business software. They provide email, phone, and a 30-day free trial without a credit card.
The cheapest plan lets you invoice up to 5 clients for £11.00. Most small businesses will desire the “Plus” package for billing up to 50 clients and a few essential features.
To save and charge clients’ credit cards, subscription-based billing, and virtual terminal, you’ll need “Advanced Payments” for £15.00 per month.
Service-based enterprises, professionals, and freelancers need recurrent credit card billing. Usually free in other accounting platforms.
- Free Agent: UK’s best accounting software for freelancers.
FreeAgent is an easy-to-use accounting software geared towards small business owners, freelancers, or contractors. It allows for multiple users and time-tracking features to track remote freelancers. It simplifies invoice creation and tax filing, with one-click reporting and tax forecasting. FreeAgent won multiple awards in 2020 for its accounting and expense management software. The software is fully compliant with various regulations. However, it lags behind when it comes to integrations. The software offers a 30-day free trial, with subscriptions starting at £9.50 for sole traders and £14.50 a month for limited companies. NatWest, Royal Bank of Scotland, or Ulster Bank NI business account holders can access FreeAgent for free.
- Zoho Books — Excellent Online Bookkeeping Software for Small Businesses.
Zoho Books is an online bookkeeping software that’s ideal for solopreneurs and micro-businesses, especially those with international customers. It has over 40 companion cloud apps for various business functions. The basic package includes everything you need for accounting online. Zoho Books is MTD compliant and provides bank reconciliation, custom invoices, online payments, receipt scanning, and more. The only downside is the lack of integrated payroll, corporation tax estimate, or directors statement. The pricing starts at £6/month for two users, and you get two months free if you pay yearly.
- Clearbooks — Simple cloud accounting software for small businesses UK
Simplifies small business accounting. UK Cloud Awards 2014 named it Best Cloud Accounting Software Suite.
Many like the UK-centricity. Its layout and features make it easy to use. Its UI is outdated and it lacks outside integrations.
It still meets HMRC and MTD requirements for accurate accounting. Consider this if you don’t want bells and whistles.
30-day trial. £10 monthly plans commence. MTD VAT reporting requires the £22-a-month big plan.
- Kashflow — Good accounting software for small business
The screen for Kashflow is easy to understand and has a business health check score. Billing is quick, and quotes can be turned into bills with just one click.
You can send as many invoices as you need, and you can always add new customers, suppliers, and deals. Good for submitting VAT forms, and it works with payment card processors like SagePay and Barclaycard in a safe way. Just like ClearBooks, it doesn’t have any way to connect to other apps.
Free trial for 14 days. There is an opportunity to start with £8 per month. Plans for small businesses start at £15 per month. Plans for bigger businesses that need more features start at £30 per month.
Best Free Accounting Tools for Small Businesses in the UK
If you run a small business, you might also want to think about using a free cloud-based service like Bokio. Their service may be simple, but it could work for you if you don’t do much business.
Pandle – Best free accounting program for the cloud.
Pandle could be a good choice for your business if you have simple needs now but want something with more features as you grow. They have a free plan that lasts forever and has unlimited everything except for more advanced features like bank feeds, record upload, cash flow forecasts, and others, which are part of a paid plan that costs £5 + VAT per month. They also follow the MTD rules.
The Latest on the General Data Protection Regulation (GDPR) and Brexit
The General Data Protection Regulation (GDPR) of the EU became law on May 25, 2018. Under this new set of rules, companies have more responsibilities in how they handle, store, and process personal information.
Even though Brexit is coming, the UK has decided as part of the withdrawal agreement that GDPR will be added to UK law. What will happen is that the GDPR and the Data Protection Act of 2018 will work together to protect privacy. Even after the UK leaves the EU, it will still need to follow the same rules.
Most of the big accounting systems have already shown that they meet the requirements. But because you’re working with sensitive information like personal data about customers, it’s important that the package you choose meets GDPR standards so you don’t get hit with big fines.
Making Tax Digital
With the government’s Making Tax Digital (MTD) program now in place, it will become more important to have financial software. The goal is to make the UK tax system work better and be easier for people to use. It will let HMRC use the information they already have or can get from other places, like a workplace, bank, or another government department.
This should make it easier to work with HMRC and reduce the number of mistakes and overpayments. If you don’t understand MTD, you can read our blog post about the most common questions about Making Tax Digital.
Choosing the Best Business Accounting Software
When it comes to choosing the right accounting software for your business, it’s important to consider which platform suits your needs best. One way to determine this is by taking advantage of free trials offered by different providers. Test out two or three options and see which one works best for you.
Furthermore, it is highly recommended to optimize your business operations through comprehensive automation using appropriate automation software such as ProcessWurks.
Discover the game-changing power of ProcessWurks and boost your firm’s efficiency and performance with our user-friendly tax technology solution. As ProcessWurks is offering unbeatable value, Try it out risk-free with a 30-day trial and receive free onboarding and migration support.
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