What is accounting software and how it can help small businesses?
Software as a Service (SaaS) has been developing in a ginormous way over the past decade. The reason for such rapid growth is the enormous advantage it provides. The advantages include cost-efficiency, easy deployment and installation, data migration, accessibility, scalability, flexibility, etc. By implementing SaaS in the business models, companies have also been able to grow their businesses at a faster rate. While having scalability as the main focus, accounting using traditional methods proved to be quite tedious. Later, accounting solutions were developed. SaaS accounting solutions are software that is developed for accounting and is hosted on a server by the service provider. Instead of downloading and maintaining the software locally, it can be securely accessed from any device.
According to Crunchbase’s data in June 2020, there are 15,529 SaaS-based companies across the world.
Best practice in deploying SaaS-based Accounting Software Solutions in 2021
There was no clear idea for the companies during the inception of SaaS-based accounting models in deciding the correct state to implement this model.
It is strongly recommended to implement this model right from the beginning of the business to keep a constant check over the cash flow and the investments made on buying products.
Although, there are some exceptions to this. If the company is shifting from a traditional business model to a SaaS-based model, SaaS-based accounting models can be implemented half-way through the development process.
Advantages of SaaS accounting Softwares
SaaS accounting solutions have been beneficial for companies in so many ways. Some of the advantages are mentioned below:
- Cost-effective: SaaS-based accounting system is very cost-effective and there is no need to invest in installing and maintaining on-premise servers. As this system works on the subscription method, the need to pay an upfront cost on buying the software is eliminated. Also, there is no additional cost required for regular upgrades and maintenance.
- Security: Usually cloud-based applications are prone to cyberattacks. To prevent this from happening, the application’s security has to be constantly monitored and updated. Since these accounting solutions are cloud-based, the security upgrades can be made by the service provider without accessing the client’s data.
- Flexibility: SaaS accounting solutions are highly flexible and scalable. Provided that a user has the right password credentials, the data can be accessed from anywhere without being dependent on a single device.
Top Free SaaS Accounting Software Providers for Small Business in the Market 2021
1) QuickBooks Accounting Software
QuickBooks was developed and marketed by Intuit. QuickBooks provides financial and accounting solutions for small businesses and enterprises and offers both on-premise and cloud-based solutions for various accounting purposes like business payments and payroll functions.
QuickBooks also provides an advanced pricing system that allows the user to estimate and customize the pricing. It can be accessed from chrome, firefox, safari, chrome on android as well as safari on iOS which makes it completely platform-independent. QuickBooks offers easy third-party software and financial services integrations such as banks and payroll companies.
2) FreshBooks Accounting Software
FreshBooks is currently operated by 2ndSite Inc. FreshBooks offers cloud-based accounting solutions that can manage daily expenses and invoices and generates reports and payments. Linking bank accounts with FreshBooks automatically keeps track of all the transactions.
FreshBooks allows keeping a track of the number of working hours of employees which makes the hour-based billing easy. It is also very portable as it works efficiently on mobile and tablets as it does on the desktop.
3) Xero Accounting Software
Xero, an accounting firm that provides accounting software that manages invoices, bank statements and inventory was founded in 2006 in New Zealand, Australia. This application provides tools that are exclusively built for small businesses, accountants and book-keepers. Xero provides an interface that is easy to use and navigate. Integration with third-party apps is simple.
Xero has been recognized as the world’s most innovative growth company in 2014 and 2015. This company works with a single motto which is to keep pushing innovation forward.
4) Wave Accounting Software
Wave offers applications for accounting, bookkeeping, payroll and budget reporting that are specially made for small businesses and it is located in Toronto, Canada.
Wave offers insights on budget planning by guiding the businesses to invest in the right products that are profitable for the company. Wave also provides an automatic billing system which can be a real time-saver.
Wave offers excellent security for data protection and has been PCI Level-1 certified for handling credit card and bank information and offers a double-entry tool for accounting.
5) Zoho Books Accounting Software
Zoho Books, powered by Zoho, provides a single app that can manage all aspects of accounting efficiently. This app also has a feature that will remind the user about the payments while keeping track of other bills and payments. The best feature of this app is that it capable of managing the finances according to the size of the project.
From making deals to getting orders, Zoho accounting software provides end-end accounting functionalities. This application also offers GST compliance by filing GST invoices and taxes.
6) Netsuite Accounting Software
Netsuite provides highly scalable accounting software that can guide the companies throughout the financial aspects of the business. Netsuite helps companies to standardize their process and finance management by identifying and eliminating budget-related issues at an early stage.
Netsuite’s flexibility allows it to be implemented in many stages of business verticals such as hosting e-commerce websites, CRM and enterprise resource planning (ERP). Netsuite also offers professional service automation (PSA) which is very helpful in planning and executing projects. Netsuite has over 18,000 customers and has been adopted by more than 200 countries across the globe.
7) Sage Accounting Software
Sage, one of the most recognized accounting software across the world, offers cloud-based automated accounting solutions that manage invoices, income and expense tracking and cash flow. This is a highly secure software and undergoes automatic backup once the data is entered. This app enables the customer to view and edit their previous invoices and details.
Sage provides solutions that can meet the needs of manufacturing, distribution and service companies. They offer their accounting services to CRM, inventory and human resources management.
It is true that SaaS has been able to satisfy almost all of the business needs. But there are some complications involved in implementing SaaS in the business. Choosing the right method and solution plays a major role in developing the business. The right SaaS model with the right business idea has great potential in running a successful business.
The worldwide public cloud services have grown by 17% in 2020 alone to a total of $266.4 billion.