Additionally, when you upgrade to the paid option, you can set up as many users as needed, and everyone can access the software simultaneously. It also has a built-in email feature that lets you send invoices and other documents, instead of sending them via your personal email. You can’t invite your bookkeeper directly as an accountant user, but you can add them as a collaborator in the paid plan and then choose the level of access you wish to grant them. Just like QuickBooks Online, FreshBooks also allows you to invite your bookkeeper as an accountant user through email.
Best Cloud Accounting Software
It has a built-in time tracker, and it’s easy to add time entries to your invoices when billing clients. Since only one user is allowed in each subscription (unless you pay for additional seats), it’s ideal for freelancers or business owners who don’t require collaboration with multiple team members. Small businesses favor QuickBooks Online for its ease of use, cloud-based access, and ability to integrate with over 750 apps like Gusto, Shopify, Expensify, and Salesforce. It makes it easy to share data with accountants, as many are already familiar with the platform.
FreshBooks: Best for Sole Proprietors & Freelancers Tracking Time
Users say that after a small learning curve, the software is easy to use and navigate. They also like that it has lots of reporting features and easy data backup capabilities. While, with most accounting software, you must generate a new report after choosing from a list of reports, the reports list in Zoho Books already has all data populated in each report. One of the best parts about cloud accounting is that you can get a grasp on your cash flow in real time. Whether you want to check a payment or look at a customer’s history, you can do that conveniently from whatever device you’re using and get an immediate grasp on your financial status.
- Software that uses remote servers to host data help ensure that sensitive financial information is securely encrypted to keep it out of the hands of cybercriminals and backed up to the cloud automatically to not lose any information.
- While this might be an attractive entry point for many, our free trial of FreshBooks revealed limited inventory management and report customizations.
- However, they say the platform could use more automations and more in-depth reporting.
- Often requires expensive software updates and license fees every time a small business grows.
- Keep track of your inventory, setting reorder points and replenishing stock, and organizing SKU, cost, stock on hand, and more.
Xero: Best for Inventory Accounting With Unlimited Users
Automatic updates, data backups, and over 100 customizable reports further streamline accounting tasks for small teams. Wave what is an owner’s draw and how does it affect payroll Accounting is a free cloud-based accounting app that handles unlimited transactions, multi-currency invoicing, and bank and credit card connections. Another option is ZipBooks, which offers a free starter plan that includes basic invoicing, bookkeeping, and the ability to manage unlimited vendors and customers.
A form would then appear on the same screen, enabling me to promptly add the required details, such as a service item for sale or a customer. This streamlined process allowed me to address all requirements directly from the invoice screen, providing clear guidance on what was needed to fully complete the task. All this to say, each step provided clear links or buttons to walk me through each subsequent step. Steps were intuitive to complete with simple forms, toggle buttons and drop-down options. At the top right-hand corner of the screen, a grid-like button with a hover-over label that read “add widget” sat. When I clicked on it, I was presented with a simple form to toggle on and off the widgets I wanted on the dashboard.
What’s the Difference Between Cloud Accounting and Traditional Accounting Software?
For example, if you have any employee processing payroll, you can give them access just to payroll without them being able to access bank accounts or financial information. QuickBooks cloud accounting software allows you to access your books online from multiple devices, at any location with internet access through your QuickBooks login. In simple terms, cloud accounting software allows users to access software applications through the internet or other networks through a cloud application service provider. Common automated tasks include invoicing, expense categorization, and bank reconciliation. Automation reduces manual work, increases efficiency, and minimizes errors.
Generally, Xero is easy to use, and you can set up your company information in no time. However, a huge downside is that it doesn’t provide live chat support like QuickBooks, FreshBooks, and Zoho Books do. Meanwhile, in terms of online data security, Xero employs industry-accepted measures, such as multifactor authentication (MFA), customized user access setup, and data encryption. Its popularity is attributed to its extensive ecosystem of integrations and mobile app. QuickBooks Online’s widespread adoption is also supported by strong brand recognition and a reputation for reliability in the accounting software market. Unlike Xero, FreshBooks, or QuickBooks Online, Zoho Books offers a free plan for one user and one accountant.
Zoho Books is the cloud-based accounting component of a larger suite of business solution tools. In addition to accounting software, Zoho offers more than 40 enterprise-level online applications to grow sales, market your business, communicate with teammates, provide customer service and more. Businesses that need an integrated business ecosystem will have a hard time finding a more robust business suite. Key features offered by Zoho Books include invoicing, project time tracking, tax compliance tools and an accounting mobile app for Android and iOS devices. If your business sells products, then you absolutely need inventory tracking to help you monitor inventory levels and generate purchase receipts.