Small Business Accounting Software Reviews: Top 5 Cloud Hosted Tools

David Adelman for FinancesOnline.com writes: Cloud or online accounting gives entrepreneurs a fully featured solution without the high cost of an in-house infrastructure. But in our small business accounting software reviews, not all cloud accounting programs are equal. Jeremy from Reno wants to know which are the best ones—

“I’m planning to tap cloud accounting for my fledgling business (flower shops). But there are too many product pitches in the Internet that I can’t figure out which one is the best for me. Can you help me choose the best cloud solution for a small business?” – Jeremy, NV

Hi, Jeremy.  We can’t tell exactly which is the best for your business (we don’t know your situation). However, we can help you narrow down your choice by sorting out software that are easy and simple to use while keeping the best features. As part of our small business accounting software reviews, here’s a rundown on what is the best cloud or online accounting software in the market today for small business’bookkeeping and financial reporting needs.

Here’s a quick comparison of the best accounting softwarefor small businesses. We sampled a few of the systems listed here and discussed them in greater detail below. You might also want to read this page for information on which criteria to use for evaluating accounting software, or this article by the US Small Business Authority for tips on selecting the right software accounting system. If you want to jump right into the meat of things, here are some of the accounting software systems worth considering.

QuickBooks Simple Start

We like the affordability and scalability of this program.

In our small business accounting software reviews, we believe price is the starting point for business owners looking which accounting product is for them. No matter how good a system is, the price will determine if you can or can’t use it.

The online version of QuickBooks Simple Start costs $12.95 per month, which is very affordable (almost free) even for a mom-and-pop shop. But even if it’s cheap, you can add more features (additional fees apply) as your business grows. It pays to get a top or popular brand to build your business on.

FreshBooks

We like its step-by-step guide wizard and help boxes that pop up every time you perform a task. For example: creating a new invoice or adding a new customer in your records. The popups are helpful when you’re starting out to learn the system. You can turn the guides off once you’re familiar with the tools.

FreshBooks features online payments, accounting reports, taxes, expense tracking and time tracking. You can customize invoices, send late payment alerts, set automatic expense tracking, and manage various rates for multiple projects and profit/loss reports.

Kashoo

We like its simplicity and ease of use.

Kashoo’s dashboards are very user-friendly, designed for marketers rather than technical people.

Moreover, the app allows you to access your data via iPad or a web browser. Kashoo features simple but powerful tools, such as, basic dashboards, professional invoices, online bank accounts and credit cards, and income tax reporting.

In many of our small business accounting software reviews we always emphasize security as a major factor when choosing a professional accounting cloud solution. Kashoo features top-level security and double-entry accounting to secure the integrity of your data and reports.

Outright

We like its basic ecommerce solution.

Organize and monitor your sales and finances in one place. Outright provides at-a-glance windows to give you at once the bigger picture of your sales performance. You can easily check where the money is going and who your customers are.

The cloud software makes ecommerce a cinch for startups. You can link your accounts such as bank, credit card, PayPal, and eBay. You can also import transaction history and organize IRS-sanctioned tax categories to make reporting easier during tax season.

Xero

We like its sharing capability for online collaboration with key people.

In our small business accounting software reviews, we always remind users to review their needs, especially if they have teams that require online collaboration at work or home (for companies that hire home-based employees). If you’re uncomfortable with online collaboration, then cloud software may not be for you.

Otherwise, you will like Xero’s sharing features that allow an unlimited number of people to access your reports (with your permission, of course). This is useful when, a case in point, you want the events team to collaborate with finance people on-location, real-time for tighter budget controls. Xero also allows you to customize invoices and reach customers via online invoicing.

CONCLUSION

These are one of the best cloud accounting software products out in the market today, but there are by no means the best for you (only you can asses your situation and match it with the best solutions presented here). Think of these products as the benchmark when you’re looking for that perfect fit.