Accounting software is necessary for small enterprises, freelancers, and entrepreneurs just as much as for bigger ones. Focusing on both pricing and usability is necessary when choosing the best accounting software for a microbusiness. In our quest for the best accounting software for small companies, Zoho Books stood out.
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Why Zoho Books Is Best for Microbusinesses
Not every accounting package is suitable for extremely small firms. Some are too intricate, strong, or pricey. Others are just not created to meet the demands of microbusinesses. Freelancers, consultants, single proprietors, and those running home-based and online companies need specialist software that satisfies their demands without being prohibitively expensive or burdensome.
Price is always a factor, but it’s crucial for small companies, so we sought for software that was both affordable and very effective. We sought a scalable programme that very small firms could use as they expanded, with the ability to upgrade to more expensive plans and interact with other company software. Additionally, we wanted it to feature a mobile app that enables active business owners to stay on top of their accounting duties while on the road. Our recommendation for the top accounting programme for small companies in 2022, according on extensive study and analysis of accounting software, is Zoho Books.
Pros
- Entry-level software that can expand with your company is available from Zoho Books.
- The platform is simple to use and has a plain dashboard as well as a flexible, customizable client site.
- The price structure for Zoho Books is reasonable and includes alternatives for small enterprises.
Cons
- There is a monthly transaction limit of 5,000, which can be problematic for expanding enterprises.
- Multiple companies may use Zoho Books under a single account, but each one must purchase a separate subscription.
Usability
Microbusinesses may take use of several features offered by Zoho Books, such as tools for time tracking and project management, invoicing, online payments, and accounting process automation. More devices are supported by Zoho Books’ mobile app than by most other providers of accounting software.
Zoho Books automates your process to save you time. You may programme the software on this customer relationship management (CRM) platform to carry out duties like sending periodic invoices and payment reminders, keeping track of spending, and alerting you when your bills are due. We also like that Zoho Books allows you to set up bank rules so that the programme can identify potential matches while you are reconciling your accounts and automatically classify transactions as they are imported each day from your bank feed.
With just a few clicks, you can easily turn sales orders or estimates into invoices. You can then amend the invoice as necessary and drag and drop the lines to reorganize them. You have the option of sending them right away or setting a later time for sending. The programme maintains an audit trail, allowing you to see which transactions are connected, who generated or modified them, and when the change was made.
Zoho Books Features
Workflow Automation
Saving time is crucial for microbusiness owners since they have many tasks to do and many hats to wear. By removing time-consuming accounting activities, Zoho Books streamlines your workflow. You may produce and send invoices on a recurrent basis as well as automated payment reminders to customers with past-due bills using the workflow automation capabilities provided by Zoho Books. Due dates for your own bills are automatically reminded and notified so you’ll always be aware of them. Account reconciliation is also a snap because to this program’s ability to do it for you, saving you time from having to carefully review the books for discrepancies.
Invoicing
The very straightforward process for converting sales orders and estimates into invoices is one of the biggest benefits of using Zoho Books. With only a few clicks, you may generate your invoices by dragging and dropping as necessary. The information is also saved by the programme, making it even simpler to make the same sort of invoice in the future. The invoicing features were equivalent to those in our assessment of FreshBooks, which was the top option for invoicing.
User-Friendly Dashboard
An intuitive dashboard is one of the most crucial features to look for in accounting software. The dashboard for Zoho Books is fairly simple but yet useful. Although you will see crucial information like as revenue and spending, credits, and cash flow, the design is simple and doesn’t have the same overpowering quality as other of the more feature-rich accounting software. Since most microbusinesses don’t have a crew available to them to concentrate only on financial information all day, it’s critical that the data be simple to interpret and comprehend immediately. The essential knowledge is provided by Zoho Books in a well-organized bundle with a few useful visualizations.
Online Payments
Particularly as a microbusiness that depends on financial flow, you want to get paid safely and without any needless delays. Online payments are easy with Zoho Books: Select the desired integration by clicking the gear button. Stripe, PayPal, Authorize.Net, Payflow Pro, Payments Pro, 2Checkout, Braintree, Forte, Worldpay, Square, ACH Payments, and WePay make up the whole list of payment gateways.
Client Portal
Microbusinesses rely heavily on their ability to provide excellent customer service, and Zoho Books provides a solution that makes it easier to do so. The specific area for your customers to monitor and manage their transactions, acquire project estimates, provide evaluations for your company, and engage in real time is known as the client portal. It provides a self-service area where your customer may reach out to your team without using up any of your valuable time or resources on straightforward queries.
Mobile Application
You can do all of your business on the move thanks to the mobile apps that come with almost all accounting software. You can send invoices, manage your payables, get immediate insights, get financial reports, and more with the Zoho Books app. Widgets may be added to your home screen as well. The mobile app is cost-free and accessible on iOS and Android phones and tablets.
Zoho Books Cost
Zoho Books has a variety of price tiers, much like many other platforms for accounting software. It was one of the few that provided a free version in addition to a free trial, however. Zoho is free to use for companies with annual sales under $50,000. This might be a major benefit for a company owner who is just getting started.
Standard:
This $15 monthly package accommodates three users. You can monitor mileage and costs, produce invoices, reconcile transactions, manage projects and timesheets, and manage up to 5,000 invoices.
Professional:
This $40/month subscription accommodates five users. In addition to everything included in the Standard plan, you can also create sales orders, manage purchase orders, issue recurring invoices, and work with numerous currencies.
Premium:
This plan, which supports 10 users, costs $60 per month. Everything included in the other two subscriptions is also included, in addition to a vendor portal, a custom domain, budgeting tools, and connection with Twilio and Zoho Sign.
Elite:
This plan, which supports 10 users, costs $120 per month. Along with everything in the Premium plan, it also offers comprehensive inventory management, email, audio, and chat assistance, and reports on cash flow forecasts.
Ultimate:
This package, which supports 15 users, costs $240 per month. You will get comprehensive analytics, all of the Elite plan’s features, including D5 custom modules. From seeing real-time reports and dashboards to monitoring important financial data to embedding reports in websites, you can do it all.
Any of the programmes allow you to add more users for $2.50 per new user per month.
You may buy snail mail credits and have Zoho send estimates or invoices on your behalf if your clients prefer tangible copies and you don’t want to print and ship them yourself. Credits for snail mail are $2 apiece.
50 auto-scans are $8 a month. In order to produce new transactions, this add-on tool analyses the documents you submit, including vendor invoices or receipts. Other software, like the one we looked at in our Xero review, offers this capability without charge.
Setup
New users may choose their nation by clicking the sign-up button. Next is to set up an account. You may choose your time zone on a setup page, after which you can enter your company’s details. Select the components that you want for your company. You may include applications like PayPal if you wish to take payments via the platform.
The simplicity of usage and quick dashboard navigation of Zoho Books are two significant benefits. Widgets for major costs, projects with billable hours and expenses, receivables and payables with current and past due amounts, bank and credit card accounts, and a cash flow chart provide quick overview of your company’s financial status. You may join up and get started by watching the simple welcome video, which will walk you through the process.
Consider up for a free 14-day trial of Zoho Books, which doesn’t need a credit card. Watching the company’s seminars and instructional videos is another way to learn more about this accounting software. As always, we advise utilizing the free trial to learn more about the platform’s functionality and how it might help your company.
Customer Service
Five days a week, seven days a week, email, live chat, and phone assistance are available from Zoho Books in the United States, the United Kingdom, Australia, India, and other nations. You may also look for assistance online in the customer forums and searchable knowledge base of Zoho Books.
Additionally, Zoho Books maintains a support documentation hub with videos, how-to articles, and tutorials to assist new users in becoming familiar with the platform. These self-guided resources are excellent sources of knowledge that may enable you to find answers to the majority of simple queries without getting in touch with customer care. We found the material on setting up customized invoices, branding and logos, user roles and permissions, and online payments to be very helpful in getting off on the right foot for Zoho Books in particular.
Drawbacks
While Zoho Books offers simplicity of use and meets the fundamental requirements of young companies, its functionality may be constrained when those organizations expand and their desire for additional features rises. If your company outgrows Zoho Books, have a look at our evaluation of QuickBooks Online. Although small companies may find these tools excessive, large enterprises that want really sophisticated capabilities should have a look at our Oracle NetSuite review for complete and powerful software.
Methodology
We sought for a cost-effective platform with all the essential accounting capabilities combined into a user-friendly, intuitive experience with a low learning curve while looking for the best accounting software for microbusinesses. After extensive investigation and analysis, we believe that Zoho Books is the finest accounting programme for small businesses since it offers a free edition to companies with annual sales of less than $50,000 in addition to a helpful set of user-friendly features. Overall, we found Zoho Books to be a straightforward, efficient accounting programme that satisfies the demands of microbusinesses without placing a heavy burden on company owners’ time and resources.
Zoho Books FAQ
How many customers does Zoho Books have?
Over 80 million people use Zoho Books internationally right now, including small companies that need simple accounting software products.
Can Zoho Books be used for free?
Yes. In addition to a 14-day free trial that gives you access to all of Zoho’s capabilities, there is also a free plan for companies with annual revenues of under $50,000.
Is Zoho Books good for tax preparation and management?
Yes. With Zoho Books, you can effortlessly submit returns, produce reports, and quickly calculate your taxes so that you can run your company while remaining in compliance with the law.
Overall Value
We recommend Zoho Books for …
- Small businesses on a budget.
- Users who need a simple platform.
- Users who want to set up accounting software quickly and without a steep learning curve.
We don’t recommend Zoho Books for …
- Businesses that have outgrown basic accounting software solutions.
- Manufacturing businesses with complicated warehouse operations management needs.
