Doing some research to find the best bookkeeping software to use for a small business that has multiple contractors. I've narrowed the two top picks down to Quickbooks and Freshbooks.
QuickBooks is the most advanced and well-known software out there. Some of the features include; income and expense tracking, tax deduction options, reports, manage cash flow, capture and organize receipts, and some additional payroll options.
Quickbooks integrates with payment options, like direct bank transfers, PayPal, Venmo, apple pay, etc.
Though there are a few drawbacks to it.
1) Learning curve - While Quickbooks has many features, but can quickly get complicated and overwhelming if you don't need to use transactional tracking and data analysis for your business.
2) Price - Quickbooks is quite pricey compared to some of the other software options out there. The lowest offering being $25/month giving you limited features and the plans only going up from there.
Freshbooks is well known for its simplicity and ease of use. Onboarding and setting up Freshbooks is quite easy, and intuitive. While it may not have as many data tracking features, it gives you the essentials and keeps things clean. It's ideal for service-based companies that don't need to get into the nitty-gritty of multiple small products.
It integrates with payment options, like direct bank transfers, PayPal, Venmo, apple pay, etc.
Like Quickbooks, Freshbooks allows automated recurring invoicing, but subscription services are an additional fee not included in the normal plans.
1) Intuitive - While Freshbooks doesn't have as many nifty features as Quickbooks, it's got a much more intuitive design platform focused on clearing away the clutter and making it easy to focus on the essentials.
2) Price - Freshbooks' pricing plans are much more affordable and are a better match for small business owners looking to automate and keep track of invoicing, payroll, and payments. The plans start at $15/month but go down to $10/month for yearly plans. You'll want to go with the "Plus" plan, which gives you more billable clients and tracking features.
3) Payroll integrations - While Freshbooks doesn't have its own payroll built into it, they do have integrations that allow you to connect with gusto -a payroll software. Allowing you to track and set up automated payments to your team.
A few honorable mentions are:
Xero - Simplistic design and integrations targeted toward micro businesses. It has limited tracking and data analysis features, though it does hook up with inventory and marketplace apps. Also charges on a percentage basis for sending and receiving invoices.
Wave - Great for service-based businesses, invoicing, time tracking, and easy-to-use design. It doesn't have great payroll or inventory tracking and targeted toward freelancers.