According to one recent study, as many as 90% of ALL small and medium-sized businesses will be using some type of cloud-based accounting software by the end of 2017. But don't let that convince you that this is just a trend being chased by "do it yourself-ers" and small business owners who want to continue to manage all of their finances in-house; the same study estimates that cloud practice management will be present in roughly 90% of all accounting firms by roughly the exact same time.
In truth, the cloud brings with it a wide range of benefits that can't be ignored – particularly from small and medium-sized businesses. Not only is your data suddenly available from any computer or device on Earth with an active Internet connection, but many of these solutions also make an effort to streamline and simplify the bookkeeping process to the point where anyone now has access to the visibility they need to make the most informed decisions possible with their money.
This does NOT, however, mean that all cloud-based accounting solutions are created equally.
Remember that picking accounting software for your small business is about more than just finding a way to digitize your financial records. It's not like picking out any other type of software you may use, like a word processor or spreadsheet tool. This is a solution that you will depend on for years to come –one that will be intrinsically linked to the health and longevity of your organization. If you really want to pick the best accounting software as a small business moving into the cloud, there are a few critical things that you must keep in mind.
Cloud Accounting Software for Small Businesses: The Qualities to Look For
When we asked a series of financial experts what qualities one should look for as a small business professional that is moving into the cloud, one theme, in particular, was overwhelmingly clear: Any solution you choose should be as simple and as straightforward as possible. One of the major benefits of making the jump to the cloud in the first place is the ability to work "smarter, not harder" – this will largely be impossible to do if the solution you choose is far too complicated for its own good.
"The best software is the one that the client will use and understand," said David Robson of Premier Tax and Business Services. "Some people are comfortable with using QuickBooks, some are better with a solution like FreshBooks. Others are better off hiring someone to manage their books. But the most important thing to understand is that the business's success is directly tied to one's understanding of its financial health."
While it's true that there is no single correct answer for everyone, many experts agreed that QuickBooks Online is a popular choice among small businesses because it's so straightforward and easy to use. Tyrone J. Taylor of Taylor Tax and Financial Consulting, Inc. said that "the most popular software appears to be QuickBooks Online. It is fairly user-friendly and can be used just about anywhere – including your smartphone. And, you can assign others to use the software, but limit their access in any way that you need."
Darvincia Warren of DW Tax Preparation agreed, saying that "I definitely recommend QuickBooks Online, as it streamlines all functions and is extremely user-friendly. It also integrates with many other platforms, making it a true must-have for any small business."
Dyan Beitelman of Capstone Tax and Accounting, Inc. echoed those sentiments, saying that "QuickBooks Online seems to have the market cornered. We have tried several different platforms with our clients and we always seem to come back to QuickBooks Online."
But again, just because QuickBooks Online works well for other people doesn't necessarily mean that it is the right fit for you, personally. Never forget (or stop believing) that there is truly no one-size-fits-all approach for small businesses moving into the cloud. Part of the reason the cloud is so beneficial is because it's so malleable – meaning that you'll likely want to try as many different solutions as you have time for before settling on the one that you're going to depend on day in and day out for the foreseeable future.
"QuickBooks Online, Xero, Sage and Fresh Books are probably the most popular," said Luba Milgram of StarLite Tax Solutions. "However, don't forget that there ARE other providers. As a business owner, you NEED to check which one will work best for you – period."
Lee Reams II, writes for TaxBuzz, a tax news and advice website. Reach him at [email protected] or on LinkedIn.
About Lee Reams II
I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.
