Personal Finance

What Is The Most Commonly Used Accounting Software

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

In addition to drafting tax returns, accountants are responsible for keeping accurate financial records and providing reports, as well.

Even if these activities could be done by hand in the past, the arrival of accounting software has made them significantly easier.

Even though there are a lot of excellent programs out there, many students find themselves feeling a little overwhelmed.

Check out the most popular accounting software on the market today to clear up any doubt!

Why is it important to locate the greatest accounting software?

Some firms nowadays have far too many transactions to keep track of manually. Accounting software is a need for accountants because of the enormous volume of data they must deal with on a daily basis.

New transactions can be processed quickly, and old data may be accessed quickly, thanks to this technology.

Accuracy is another benefit of utilizing accounting software. Calculating everything by hand is certain to result in errors, especially when dealing with such a large amount of data.

But accounting software considerably minimizes the risk of making an error and delivers more accurate results all around.

Which software are most businesses utilizing?

Most organizations have switched to accounting software because of the speed and ease with which historical data can be accessed. In this section, we’ll take a look at some of your best choices.

Accounting by QuickBooks

One of the oldest and most reputable names in accounting software, QuickBooks has dominated the field from its initial release in 1998 and continues to do so now.

According to the QuickBooks website, 85 percent of firms that use accounting software rely on it. 

Allows small-business owners to do a wide range of things, like as:

  • Send invoices
  • Pay bills
  • Create detailed financial reports
  • Plan for taxes

The following are some of the QuickBooks versions available to businesses:

  • New users will find it much easier to get up and running with QuickBooks Pro than with prior versions. If you’re a student or someone who wants to learn the program in order to land a job in the future, this is an excellent option. If you’ve already mastered 
  • QuickBooks Pro, you’ll find it much easier to learn the other versions.
  • Monthly subscriptions are required for access to QuickBooks Online, which is a cloud-based service.
  • QuickBooks Point of Sale: a new solution for clients that want to generate sales statistics from their transactions. Inventory tracking, consumer information, and more are all available.
  • For established organizations, QuickBooks Enterprise Solutions is the ultimate version of the accounting software. Just a few of its expanded features are inventory management and thorough report generation.
  • If your business runs on Macs, you can still rely on QuickBooks for your accounting needs. A few small variations exist between the Mac version of QuickBooks Pro and the Windows version.

All accounting students should familiarize themselves with QuickBooks before applying for their first job, due to the software’s enormous popularity.

Having a deep understanding of this program is frequently enough to impress a potential new boss.

Online Accounting Xero

An accountant in New Zealand named Rod Drury established Xero Accounting in 2006 because he felt that existing accounting software was archaic in comparison to what he had developed. Instead of targeting small firms, it’s geared toward medium and big ones. 

Allows users to view their info from any location. If you have a lot of accountants working for a large organization, this may be a very useful feature. To use Xero, consumers must pay a membership fee each month.

To name just a few of Xero’s most advantageous features:

  • Connect directly to banks so that transactions may be completed automatically.
  • Create and send invoices that may be paid for online
  • It’s possible to run payroll in all 50 states.
  • Look for methods to make extra money doing certain professions.
  • Depreciation of fixed assets should be examined.
  • Keep track of payments in different currencies.

Accounting by Wave

On its website, Wave Accounting claims to be geared at small enterprises, freelancers, and consultants. Wave Accounting, like Xero, is a completely web-based service. 

So you can use your phone or laptop’s software from any place where you have an internet connection and vice versa. Unlike the other programs on this list, Wave may be used without costing you a single cent.

To get a taste of what it’s like to work for a family-owned business, check out Wave’s job board. 

Many useful features are included in the program, such as:

  • Invoicing
  • Payroll with bank account linking
  • Payment tracking
  • Credit card processing
  • Billing

The Zoho Books

Cloud-based Zoho Books is trusted by small companies in the US. There are several similarities between it and other well-known programs on this list, including:

  • Contact management
  • Invoicing with built-in templates
  • Expense and time tracking
  • Inventory management

It is one of the numerous advantages of Zoho Books that small businesses find attractive. The cheapest choice is $9, while the most costly option is $29.

The FreshBooks

Accounting software has a learning curve, but FreshBooks claims to be simple enough even for those who have no accounting expertise.

With this, it is great for small businesses and freelancers that cannot afford full-time accountants

Following are a few of the most popular FreshBooks features:

  • Customizable invoice creation with easy-to-use templates
  • Automatic late fees for overdue invoices
  • Recurring invoices automatically sent on schedule
  • Multi-currency billing
  • Multi-language invoices
  • Easy discounts
  • Friendly payment reminders
  • Retainers

If you’re looking to get your feet wet with accounting software but don’t have a lot of time to invest, FreshBooks is a terrific option.

Essential activities may be performed without the need for additional software, making it a popular choice among many small organizations.

How can I familiarize myself with all of these programs?

The majority of your time as an accountant will be spent documenting transactions and processing data, so finding a tool you love is critical!

FreshBooks or even QuickBooks might be a wonderful place to start before moving on to more complicated software like Xero.

It’s unrealistic to expect a job seeker to be an expert in every single software application available.

As long as you’re patient, they’ll work with you to get you up to speed on any accounting program you choose.

A new employee is likely to receive on-the-job training to guarantee that he or she can use the company’s chosen software within a short period of time, even if he or she has never used it before.

Remember if you can learn to use one accounting program, you can learn to use them all. If you start to feel overwhelmed by the possibilities available, keep this in mind.

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