Free Accounting Software For Small Business
Are you a business owner searching for a free accounting software for small business to record your income and expenses? This article provide tips on what you should look out for in your search for a small business accounting software. We know that business startups require heavy cash outflows and if you can find a business accounting software that doesn’t cost you an arm and a leg, so much the better.
Different forms of free accounting software for small business
Free accounting software for small business comes in many forms. The ‘free’ part may be in the form of a free trial version of a paid software. Or the accounting software that is offered free for small business may be the basic version, with limited features. Some accounting software is free for you to enter a certain number of transactions. Some other companies offer accounting software free for the first user only.
Truly free accounting software for small business are normally written using free, open source technology. They may be offered free as part of the social contract, and may be a collaborative effort amongst different people
Accounting software technology is changing at lightning speed. Years ago, you need to install the accounting software onto a desktop computer. Today, you can choose to subscribe to a (free or paid) web-based accounting services and you can create your invoice, or pay your supplier bills from anywhere as long as you have an internet access
Things to consider when choosing a free accounting software for small business
Throughout the years, many accounting software packages (paid and free) have been created, and some have been discontinued also. So, if you are reviewing suitable accounting software packages for your small business, you should look into the history of the company providing the free software, to assess the likelihood of them surviving the coming years. Find out how many years they have been developing the software, and how many programmers are working on the project. Look for client testimonials on their product or services.
If you are going to use the software for the long term, you should also find out whether there is a software upgrade path. You don’t want to put in tons of data into the system and then have to re-enter the data again when you upgrade your software to the paid version.
If possible, get feedback from friends and other business owners on their personal experience dealing with the software and the company. Better still, do a search for the product on the internet and read their feedback.
Before you download any free accounting software for small business from the internet, you should ensure that the software is free from any form of malware, spyware, viruses, or trojans.
Can a Free Accounting software for small business give you the features and benefits you require in running your business?
Accounting software has become such an important software for any business to have, much like the software for spreadsheet and word processing. The decision you need to make is whether to go with a free accounting software or to invest in one of the many accounting softwares in the market. To help you evaluate, we list down the basic features that would need in the accounting software.
If you are running a business, you cannot run from having to account for every dollar of your business income and expenses. Your investors, bankers, lenders, shareholder, suppliers, employees, tax department, and you yourself need to know whether you will all be paid for the time and money spent on the business. You will need some sort of system to record your financial transactions.
Many small businesses use journals and exercise books to record their financial transactions. Some may use a spreadsheet program such as Microsoft Excel to assist in compiling and collating the information. However, as the business grows, the volume of financial processes may increase exponentially.
Benefits of using an accounting software for small business
Investing in a simple accounting software for the small business will leave you much needed time to concentrate on the more important activity of planning and developing your business. Accounting software for small business helps you automate the processing and recording of various types of business financial transactions. You will be able to retrieve current and historical information for your analysis purposes. Whether the accounting software for small business is free or not, there are certain features that should be present in the bookkeeping software for small business.
Common Features expected in an accounting software for small business
One important business activity that needs monitoring is the accounts receivable and debt collection. Every business that sells on credit needs help in tracking the monies owing by the customers, the payment due dates, and the outstanding balances. You should use the accounting software to help you monitor the outstanding balances on a real-time basis and follow up on past-due balances and non-payments of debts which can seriously affect your cash flow.
The accounting system should ideally allow you to generate customizable invoices and account statements for clients. Some accounting system has the ability to process and automate the sales order activity, and allow you to track the fulfillment and status of the customer orders.
Another aspect of the business activity that can be handled by an accounting software is the creation of a purchase order for parts, components and other supplies. This will greatly improve the efficiency and accuracy of the ordering process, and promote better vendor relationships. If you deal with inventory, look for an accounting software for small business that has the capability to integrate sales order with purchase order, inventory management and supply chain systems to ensure sufficient stock levels are maintained
The accounting software should also have features to track accounts payable, especially if you buy on credit and need to manage bills, payments and monies owing to suppliers.
And most importantly, the bookkeeping software for small business must allow you to track your banking transactions, and reconcile your cash position with the bank at any time you want to. To complete the accounting cycle, most accounting software will have some form of general ledger system where all the key financial activities and information is put together, and help you generate the financial reports for your small business.
Tips on choosing accounting software for small business
Not all free accounting software for small business offer the same level of functionality as the paid ones. Your accountants will most likely be using a small business accounting system in their office to process the accounts for their clients, and they can give valuable advice on your choice of software. You can also seek professional software implementers to help you implement the free accounting software for small business.
