If you’re currently managing your own bookkeeping, software can be a little overwhelming, especially when it comes to choosing the best accounting software to suit your business. Here at Numberwork Services we use both Xero and Quickbooks. We don’t like to limit ourselves to just one piece of software as clients have their individual preference, nor do we want to overwhelm you with too many options.
Here’s a few things to consider when choosing your software.
Are you a Sole Trader or Limited Company?
Depending on your business structure some accounting software has been developed to suit your requirements. For example Quickbooks have dedicated software for Sole Traders called Quickbooks Self Employed. This is a more basic version of QuickBooks Online. It’s not suitable for you if you are VAT registered or have employees. If you’re looking to grow your business in the future or maybe move from a Sole Trader to a Limited Company then either QuickBooks Online or Xero may be best for you.
Are you VAT Registered?
Being VAT registered means more admin for you, or your bookkeeper. Having the correct bookkeeping software to suit your VAT registration can make the process much more streamlined and easier to manage.
Stock Control
If you hold stock and need to manage this, then this needs to be considered before settling for your chosen software. QuickBooks Online can manage this for you but only on the Plus or Advanced versions of the software. Xero will require integration with an Inventory add on.
Multi-Currency
Does your business deal with various different types of currency? If so you need to make sure your software has the capability. Within Xero you will need a business edition pricing plan to allow you to use multiple currencies. In Quickbooks providing you have an essentials or plus plan you can enable multi currencies. However, once you enable this feature it cannot be switched off.
Volume of transactions
The more transactions you deal with the more your software needs to be able to handle. Choosing the wrong software could have implications such as slow loading time or daily limits. Make sure you do your research when it comes to this if you have a high amount of transactions for your software to cope with.
How many bank accounts do you have?
There may be some limitations to how many bank accounts you can connect to your software, so be sure to check this out if you have more than one account. Quickbooks and Xero both allow you to connect multiple accounts. Most software will not allow you to connect a personal account, so we do advise that all your transactions are done through a business account, regardless of whether you are a Sole Trader or Limited Company. Of course this is essential by law for limited companies anyway.
Cost
Although this shouldn’t be the only thing that you make your decision on, it can make a difference to your bank balance. If software is more expensive it’s more than likely capable of doing a lot more than one that’s cheaper. However, do shop around and do your research, sometimes they offer a free trial or introductory discounts.
Integrations
If your software is capable of integrating with multiple apps then it can grow with your business and offer you so much more when it comes to automation and streamlining your business. Xero has a platform called Xero Marketplace where you can review the apps it integrates with. Be sure to check it out so that you are using your software to its full potential.
Are you doing the work or outsourcing it?
If you’re outsourcing your bookkeeping then your bookkeeper will consider these options on your behalf. This means less stress, work and worry for you! If you are managing your bookkeeping alone, then do consider all the above options before making a decision.
If you find your bookkeeping is becoming overwhelming though, it’s one of the easiest tasks you can outsource and will free up so much of your time. It also has its advantages because you and your bookkeeper can both have real time access to your accounts and with the right integrations you won’t need to be sifting through mountains of paperwork before your deadlines.