As small and medium-sized enterprises (SMEs) grow and expand, it becomes increasingly important to manage financial records, track expenses, and reconcile accounts. This is where accounting software comes in handy. With so many accounting software options available, it can be challenging to choose the right one for your SME. In this article, I will discuss 5 popular accounting software for SMEs and their features.
QuickBooks
QuickBooks is one of the most popular accounting software for SMEs. It was created by Intuit in the 1980s and has since become a household name in accounting software. QuickBooks offers various features that help SMEs manage their financial records and track expenses. Some of the features of QuickBooks include:
Invoicing: QuickBooks allows SMEs to create professional invoices and send them to customers in just a few clicks. It also offers automatic reminders for unpaid invoices.
Payroll: QuickBooks offers a payroll management feature that calculates and tracks employee wages, taxes, and benefits. It can also generate pay stubs and handle direct deposits.
Expense tracking: QuickBooks allows SMEs to track their expenses by linking their bank accounts and credit cards to the software. This makes it easy to categorize and track expenses.
Inventory tracking: QuickBooks offers an inventory tracking feature that enables SMEs to track their products, manage stock levels, and create purchase orders.
Reporting: QuickBooks offers various reporting options, including profit and loss statements, balance sheets, and cash flow statements. SMEs can also customize reports to suit their specific needs.
QuickBooks offers both online and desktop versions. The online version is cloud-based, allowing SMEs to access their financial records from anywhere with an internet connection. The desktop version, on the other hand, is a one-time purchase that is installed on a computer.
Sage 50
Sage 50 is another popular accounting software for small and medium-sized enterprises (SMEs). It was previously known as Peachtree Accounting and is now part of the Sage Group. Sage 50 offers various features that help SMEs manage their finances. Some of the features of Sage 50 include:
Invoicing: Sage 50 allows SMEs to create and send professional invoices to customers. It also offers automatic reminders for unpaid invoices.
Inventory management: Sage 50 offers an inventory management feature that enables SMEs to manage their stock levels and create purchase orders.
Expense tracking: Sage 50 allows SMEs to track their expenses by linking their bank accounts and credit cards to the software. It can also categorize expenses and provide real-time updates on cash flow.
Payroll: Sage 50 offers a payroll management feature that calculates and tracks employee wages, taxes, and benefits. It can also generate pay stubs and handle direct deposits.
Reporting: Sage 50 offers various reporting options, including profit and loss statements, balance sheets, and cash flow statements. SMEs can also customize reports to suit their specific needs.
Sage 50 is a desktop-based accounting software, meaning SMEs need to install it on their computers. It also offers cloud-based access to financial records through Sage Drive, which is a paid feature. Additionally, Sage 50 offers a mobile app that allows SMEs to manage their finances on the go.
Sage 50 offers various pricing plans, including a perpetual license and a yearly subscription. The perpetual license is a one-time payment that provides SMEs with access to the software, while the yearly subscription includes access to the software and support services.
Xero
Xero is another popular accounting software for SMEs. It was created in 2006 and has since grown to serve over 2 million subscribers worldwide. Xero offers various features that help SMEs manage their finances. Some of the features of Xero include:
Invoicing: Xero allows SMEs to create and send professional invoices to customers. It also offers automatic reminders for unpaid invoices.
Payroll: Xero offers a payroll management feature that calculates and tracks employee wages, taxes, and benefits. It can also generate pay stubs and handle direct deposits.
Expense tracking: Xero allows SMEs to track their expenses by linking their bank accounts and credit cards to the software. It can also categorize expenses and provide real-time updates on cash flow.
Inventory tracking: Xero offers an inventory tracking feature that enables SMEs to manage their stock levels and create purchase orders.
Reporting: Xero offers various reporting options, including profit and loss statements, balance sheets, and cash flow statements. SMEs can also customize reports to suit their specific needs.
Xero is cloud-based, meaning SMEs can access their financial records from anywhere with an internet connection. Xero also offers mobile apps for iOS and Android devices, allowing SMEs to manage their finances on the go.
FreshBooks
FreshBooks is an accounting software for SMEs that was created in 2003. It offers various features that help SMEs manage their finances. Some of the features of FreshBooks include:
Invoicing: FreshBooks allows SMEs to create and send professional invoices to customers. It also offers automatic reminders for unpaid invoices.
Time tracking: FreshBooks offers a time tracking feature that enables SMEs to track billable hours and create invoices based on time worked.
Expense tracking: FreshBooks allows SMEs to track their expenses by linking their bank accounts and credit cards to the software. It can also categorize expenses and provide real-time updates on cash flow.
Project management: FreshBooks offers a project management feature that enables SMEs to manage their projects, collaborate with team members, and track project expenses.
Reporting: FreshBooks offers various reporting options, including profit and loss statements, balance sheets, and cash flow statements. SMEs can also customize reports to suit their specific needs.
FreshBooks is a cloud-based accounting software, meaning SMEs can access their financial records from anywhere with an internet connection. FreshBooks also offers mobile apps for iOS and Android devices, allowing SMEs to manage their finances on the go.
Zoho Books
Zoho Books is an accounting software for SMEs that was created by Zoho Corporation in 2011. It offers various features that help SMEs manage their finances. Some of the features of Zoho Books include:
Invoicing: Zoho Books allows SMEs to create and send professional invoices to customers. It also offers automatic reminders for unpaid invoices.
Payroll: Zoho Books offers a payroll management feature that calculates and tracks employee wages, taxes, and benefits. It can also generate pay stubs and handle direct deposits.
Expense tracking: Zoho Books allows SMEs to track their expenses by linking their bank accounts and credit cards to the software. It can also categorize expenses and provide real-time updates on cash flow.
Inventory tracking: Zoho Books offers an inventory tracking feature that enables SMEs to manage their stock levels and create purchase orders.
Reporting: Zoho Books offers various reporting options, including profit and loss statements, balance sheets, and cash flow statements. SMEs can also customize reports to suit their specific needs.
Zoho Books is a cloud-based accounting software, meaning SMEs can access their financial records from anywhere with an internet connection. Zoho Books also offers mobile apps for iOS and Android devices, allowing SMEs to manage their finances on the go.
Conclusion
In conclusion, accounting software is an essential tool for SMEs that want to manage their financial records, track expenses, and reconcile accounts. QuickBooks, Sage 50, Xero, FreshBooks, and Zoho Books are five popular accounting software options for SMEs. Each of these software options offers various features, such as invoicing, expense tracking, payroll, inventory tracking, and reporting. SMEs should consider their specific needs and budget when choosing an accounting software option.