If there’s one thing every small business has in common, it’s wanting to cut costs without cutting efficiencies (in fact, this is probably something all businesses have in common!). Often working with big dreams and limited budgets, small companies are always on the lookout for ways to streamline operations.
Small businesses and startups need software that is flexible, affordable, and able to grow with their needs. That’s why cloud-based accounting software is usually the best option for these companies.
Let’s explore what makes cloud-based accounting software so great for small businesses, and which services we use and recommend.
Why Switch To Cloud-Based Accounting
Like the name suggests, cloud-based accounting software is housed in the ‘cloud,’ ie, on the internet. That means that it’s not housed on your hard drive. In other words, it’s software you can access anywhere you have Wi-Fi, so you’re no longer tethered to your computer or your office.
Because of this, cloud-based accounting is extremely flexible. And it also offers more benefits for small businesses.
Namely, cloud-based accounting is typically far less expensive, and far easier to use, than traditional accounting software. Therefore, it can help create the efficiency and scalability that small businesses so desperately need.
Plus, factor in the environmental benefits of hiring a cloud based company, and this type of software starts to look more and more sustainable and appealing.
Best Cloud-Based Accounting Software for Small Businesses & Startups
Like we mentioned, cloud-based accounting software is user-friendly. And hands-down the most user-friendly cloud-based accounting software is Xero. It’s the only cloud-based software we use. And it’s the only one we recommend to small businesses.
We like Xero because it is by far the easiest to use by both accountants and business owners, while also providing valuable information to both parties. Their support is also very efficient and useful, and it can be accessed by both accountants and business owners.
Xero also connects to your bank and credit card accounts and will automatically upload your transactions through an API connection. This means you are saving roughly 50% of manual data entry and getting information on a daily basis (instead of monthly or annually).
And by offering payroll, fixed assets, expense claims, budgets and complete financial reporting, all of which are available whenever and wherever you want it, Xero also has everything small businesses need to grow.
If you’d like to learn more about Xero and how to implement it in your small business, please contact us.
More Cloud-Based Accounting Apps
Another one of the great things about Xero is that you can integrate it with over 500 applications, so you can customize an accounting solution that is just right for your small business or startup.
For small businesses, we often also recommend:
- HubDoc: a cloud-based receipt management app that integrates with Xero and provides a quick and easy way to capture your documentation.
- Plooto: a payment processing system that can collect and make payments on behalf of your business by connecting your bank account(s) online.
- WagePoint: the main payroll provider we use for clients. For both salary and hourly employees, it’s easy to use and does everything from payroll processing to preparing T4s at year-end. Talk about a lifesaver!
Of course, while cloud-based accounting is incredibly easy to use, there can still be a learning curve while setting it up. Our team can help, with consulting, full set-up and on-going support. Please get in touch to learn more.