Accounting software helps accountants perform basic and complex accounting functions that aid seamless taxation, bookkeeping, financial reporting, planning, and analysis. The right accounting software can also increase business productivity and efficiency.
When selecting the best accounting software for your business, consider factors such as ease of implementation and use, lifetime cost, training needs, and functionality. The following accounting software options are available for Canadian businesses.
QuickBooks Online
QuickBooks is a business financial management tool that allows business owners and accountants to track expenses, record financial entries, manage taxes, and process payroll functions.
Functionality
One of QuickBooks’ key functionalities is automating real-time expense tracking by connecting to business bank accounts. The accounting software also helps business owners track income and automate invoicing.
With QuickBooks, business owners can create and send personalized invoices while offering their customers various payment options for goods and services. QuickBooks payment methods include credit cards, Apple Pay, and bank transfers. Businesses can also set up pre-authorized payments for customer invoices.
Using QuickBooks, businesses can simplify day-to-day operations such as inventory management, bookkeeping, and mileage tracking. With its inventory management function, businesses can track inventory levels, create purchase orders, and manage multiple vendors.
Cost
QuickBooks Online offers four pricing plans: the EasyStarts, Essentials, Plus, and Advanced plans.
The EasyStart option starts at $6 per month. It allows Canadian businesses to track income and expenses and sales and sales tax, capture and organize receipts, run reports, process invoices and accept payments, track mileage automatically, carry out progress invoicing, send estimates, and maximize tax deductions. This may be a good plan for a new small business.
The next plan, the Essentials plan, costs slightly more, starting at $13.50 per month. This plan offers all the features of the EasyStart plan with additional functions, including usage for up to 3 users, managing bills and payments, multi-currency support, and the option to enter employee time. Switching from the EasyStart plan to the Essentials plan may be beneficial as a business grows.
A larger business may benefit from the Plus plan, which provides access to 5 users and covers more services than the EasyStart and Essentials plans. The Plus plan, which starts at $16 per month, allows businesses to track project profitability and inventory, create and manage budgets, and create classes and locations.
Starting at $32 per month, the Advance plan is suitable for larger businesses. It provides user access to 25 users. Additional functionalities in this plan include unlimited classes & locations, the ability to customize access by role, restore & backup data, and manage employee expenses. This plan allows you to customize reporting fields, create batch invoicing, and access premium support. The QuickBooks online Advanced option allows for workflow automation, spreadsheet sync, fixed assets accounting, and revenue recognition and provides access to a desktop app.
All the plans include QuickBooks support, a free mobile app and the option to upgrade anytime.
Software Integration
QuickBooks allows integration with other software like Shopify, Paypal, Apple, Stripe, Expensify, Dexter, Plooto, Aero Workflow, and online banking. This seamless software integration allows businesses to run their operations smoothly.
Xero
Xero’s comprehensive accounting software allows businesses and accountants to record bills, claim expenses and receive payments, track projects, monitor inventory levels, manage fixed assets, and reconcile accounting transactions.
Functionality
Using Xero accounting software, small businesses can perform basic accounting functions such as bookkeeping, financial reporting, bank reconciliations, managing regular payroll runs, and keeping employee records.
Cost
Xero accounting software offers three payment plans: the Starter plan, Standard plan, and Premium plan.
The starter plan starts at $6 per month and is suitable for sole proprietors, new businesses, and self-employed businesses. With the starter plan, businesses can capture bills and receipts, reconcile bank transactions, track bills, and schedule batch payments. Businesses can also use the starter plan to send online invoices and quotes to customers and add a payment service. The number of invoices is limited; to send more than 20 invoices per month, you will need to upgrade to the standard plan.
The Xero standard plan starts from $12 per month. This plan includes more services than the starter plan. With the standard plan, businesses can
Xero’s premium plan provides a broader range of accounting functions. Businesses can use the premium plan to do bulk reconciliations, use multiple currencies, and analyze finances using Xero Analytics. This plan starts at $16.75 per month.
Xeroo offers a 30-day free trial that allows businesses to assess if the software is a great fit for their operations.
Software Integration
Xero has an app store where businesses can discover the right apps to run their operations effectively. The apps span industries, providing software integration for operations in accounting, agriculture, automotive, construction and trades, education, franchises, health, hospitality, and manufacturing, amongst others.
Businesses can connect their Xero accounts to apps for invoicing, payments, payroll, time tracking, customer relationship management (CRM), and more. Examples of apps on Xero businesses can integrate with are Stripe, Deel, Wagepoint, Paypal, GoCardless, and Tradify.
Wave
Wave is a financial management solution for small business owners, consultants, and freelancers. Although Wave is known for some of its free services, it also offers paid options for businesses.
Functionality
Wave offers a variety of features to help business owners carry out daily accounting functions and automate processes such as invoicing, payments, billing, and payroll processing. Wave Accounting allows for effective bookkeeping. Through its pro plan, business owners can connect bank accounts for automated receipts, accounting, and payments.
Issuing and recording invoices can be a manual, time-consuming function. Wave Invoicing allows for automatic recurring invoicing and the receipt of credit card and bank payments from customers.
Cost
Businesses can choose between the Wave Starter plan and the Wave Pro Plan. The started plan is free and helps business owners create unlimited invoices, bills, and bookkeeping records. With the free plan, businesses can accept online payments and send invoices.
In addition to the features in the free plan, for $20 per month, business owners can comprehensively manage bank transactions through auto-importing, auto-merging, and categorizing bank transactions, automating late payment reminders, and tracking receipts and expenses.
Software Integration
Wave accepts payments from all major cards, including Visa, Visa Debit, Mastercard, Mastercard Debit, and American Express. It is also compatible with Apple Pay and allows you to connect with your bank accounts for seamless bookkeeping.
Wave’s tools are web-based and businesses can also install the mobile app to manage invoices and payments.
Accounting software is essential for businesses to capture expenses, revenue, and other transactions. Accounting automation helps businesses run more effectively and prepare accurate financial records and statements.
DW & Associates Chartered Professional Accountants offers bookkeeping services and accounting software setup services. We help businesses assess the best accounting software fit and help with software integration.
