Why you should be using online accounting software if you are a freelancer, contractor, small business, or startup
Unless you are a large company, you probably can’t afford to pay an accountant or bookkeeper full-time who will handle every bit of record-keeping required for the day-to-day running of the business.
For freelancers, small businesses, startups, or contractors, the best option is to use an online accounting software package for everyday record-keeping in conjunction with an accountant who can give you all the support and advice you need, such as filing your tax returns and showing you how to grow your business.
Online accounting software is a must for small businesses, freelancers, contractors, and startups because it allows you to do the things that used to be expensive and time-consuming in a quick and easy way.
It is especially great when used alongside an accountant – you won’t even need to pay for the online accounting software with Fusion, because we include your choice of software with all of our accounting packages (for example, FreeAgent is usually £29 per month but FREE with any Fusion package).
Here is why freelancers, small businesses, startups, and contractors should be using online accounting software.
Online accounting software gives an overview of your business’s financial health and history at a glance
A spreadsheet of your financial information can obviously be useful in showing the financial health and history of your small business, but it can be messy and time-consuming work to get the information you are looking for.
Online accounting software, on the other hand, gets the information for you and shows it to you in an easy-to-understand format – this speed is vital for small businesses, contractors, freelancers, and startups.
Online accounting software also makes it easy to compare multiple years so you can easily see how much your business is growing.
Online accounting software makes it easy to input financial data
Inputting financial data into spreadsheets is boring, time-consuming, and prone to errors. Online accounting software makes this very easy to do – in fact, you can usually download your bank account data directly into your online accounting software so that every business transaction is recorded automatically each month.
Online accounting software makes managing invoices easy
A good cash flow is vital for any business, especially small businesses, freelancers, contractors, and startups. For a good cash flow you need to ensure clients are paying you. Online accounting software makes it quick and easy to see who owes you how much money, and whether they are behind in the payments.
Online accounting software makes it easy to produce formalised financial statements
Financial statements such as profit and loss statements and balance sheets are needed by businesses of any size to evaluate how well it is doing. They are also required when it comes to securing finance for your business through loans and investors. Online accounting software makes this easy for you by doing all the hard work.
Which online accounting software should you use?
There are a number of online accounting software to choose from. Below is a quick overview of the best ones.
FreeAgent is an online accounting software designed specifically to make accounting as easy as possible for small businesses and freelancers. You can use it to budget and organise separate projects within the business, create invoices, and fill in your self-assessment tax return.
Find out more FreeAgent Accounting
If you want an online accounting software with a great user interface, Xero is a great choice for small businesses, contractors, startups, and freelancers. It even has customisable invoice templates so you can send invoices that reflect your brand.
Find out more Xero Online Accounting
Quickbooks is an online accounting software that is great for small and medium sized businesses because it makes things like stock management, managing taxes, and payroll easier. There are also plenty of add-ons to allow you to customise it to suit the needs of your small business
Find out more Quickbooks Online Accounting
Sage One is online accounting software that is great for freelancers, startups, and small businesses because it requires very little accounting knowledge to use, has a very low-cost basic package, and comes with free support through phone and email.