Which Accounting Software?

This month we are reviewing a number of accounting packages to show our readers what is available and help them decide which one will be their best option.

However, we have to warn you, beauty lies in the eye of the beholder, and so it is with accounting software as well. Every person will have their own preference, what will work for them. Our aim is simply to show you a few options and what they can do. A crash review on accounting packages if you like.

We also provide the links to each option’s website as well as reviews from actual users. It would be a good idea to look at all the reviews, good and bad, as well as the pros and cons, because that will help you identify things you’d like and things you’d find cumbersome.

GNU Cash

We mention GNU Cash here as it is a completely FREE ACCOUNTING PACKAGE which you can download to your desktop and run it from there. It is an open-source software with a large community supporting it.

Although the interface is deemed to be antiquated, it’s ease of use for an individual just wanting to keep tabs on their personal expenses is likened to QuickBooks. That does not mean you cannot use it for a business. The learning curve and setup is more involved and will take longer to master.
However, many users have successfully used GNU Cash for a number of years in their businesses and organisations albeit as single users. It seems that multi-users can be more of a challenge and that is one of the down sides, but if you understand networks and multi-user access to MySQL, you should be able to master it.

Please note: We have never used GNU Cash nor tested it, and therefore cannot confirm its usefulness.

Here are a number of reviews for GNU Cash by actual users: Right-click here

GNU Cash Website: Right-click here

QuickBooks

QuickBooks’ ease of use always makes it a popular option with new business owners. You can go a long way with QuickBooks, especially if you use the Plus plan of the cloud version.

QuickBooks originated as a desktop package and can still be purchased in that format. If you’re a solo-preneur then QuickBooks might be right for you. QuickBooks is considered one of the more expensive options as an accounting solution by their users, even though the initial cost seems to be on par with competitors.

Another concern with QuickBooks has always been the audit trail, which means there is no one place where you can see which transactions have been performed on the system. Also, security can be an issue if you want to specify the rights of specific users.
QuickBooks integrates with many software packages, including MailChimp, and is a viable option, however, from an accounting point of view most users prefer one of the packages with more controls and security features, as well as more cost effective.

From our own experience, we must confirm that the QuickBooks of today has vastly improved from a couple of years ago and depending on your needs might be the solution for your business.

Here are a number of reviews for QuickBooks by actual users: Right-click here

QuickBooks Website: Right-click here

FreshBooks

FreshBooks originated from accountants working on a contract base for clients and wanting to capture time worked which could then be invoiced. FreshBooks has come a long way. It still offers time tracking and invoicing, but also collaborative project tools, expense tracking, recurring invoicing, online payments, profit and loss statements, and more.

FreshBooks is a cloud-based accounting solution which integrates with a number of other software services. It gets high ratings for ease of use but be mindful of the downside. And the cost has also been a bone of contention.

According to users, it seems that FreshBooks is mostly for solo contractors or small teams with expenses, although it does have Inventory Accounting, but only from the Premium version.

Look carefully at the pricing options as you may find the Lite and Plus versions cannot do all you require.

Here are a number of reviews for FreshBooks by actual users: Right-click here

FreshBooks Website: Right-click here

ZOHO Books

ZOHO Books forms part of the ZOHO Suite of products. It is a cloud-based solution, and you can start off with the free version and go quite a bit before you would need to upgrade to a paid version, as long as you don’t need more than 1000 invoices per year.

ZOHO Books has come a long way and is now a fully-fledged accounting solution, incorporating everything from Quotes to importing scanned documents into expenses and purchases. It has a more traditional way in which, for instance, the bank reconciliation is done, but for a qualified accountant, the workflow would make more sense.

Security in ZOHO is excellent as you can define each user’s security level, almost screen by screen, which provides for a more secure accounting solution as you do not necessarily want all staff to know what your Profit and Loss figures are or your bank balance.

From the Professional version upwards, you already have access to Project management, Timesheets and billing, Client approvals, Multi-currency, Stock tracking and more. See full feature comparison here: Right-click here

You also have the option to integrate with the other ZOHO software services, which could make managing your whole business much more efficient.

Here are a number of reviews for ZOHO by actual users: Right-click here

ZOHO Books Website: Right-click here

XERO Accounting

Certainly, the name on many people’s lips, these days, when it comes to accounting.

XERO is a game changer as it started as a solution that could give the user the ease of use of QuickBooks, but with more traditional accounting features. As with QuickBooks, XERO lacks in giving specific users specific rights, which allows unnecessary knowledge of, for example, your bank balance.

That being said, XERO has many other features which gives it the thumbs up from many accounting firms. This could be seen as a replacement of or enhancement to accounting firms.

XERO paved the way for making tax digital by offering digital submissions of VAT reports as well as EMP201’s through their payroll partners Simple Pay and Payspace.

They were one of the first account software services (in South Africa) to offer direct bank feeds from your bank. No need to import a bank statement. Just connect to your bank with your credentials and you will receive regular updated bank feeds. This will vary, depending on how your bank account is set up and which bank you use.

The biggest win for XERO is by far Hubdoc. It’s an external software service which is included in the subscription. With Hubdoc you can upload scanned purchases and expenses, or you can email supplier bills to it. Hubdoc then allocates the purchase or expense and exports it directly to XERO where you can finalise it by the click of a button.

XERO also has an optional Expense module and Projects module, which works very well, but it is at an additional charge per user per month, on top of an already hefty price tag.

All in all, XERO looks like the future of accounting. It just depends on if that’s the future you are looking to live.

Here are a number of reviews for XERO by actual users: Right-click here

XERO Accounting Website: Right-click here

Sage Accounting

Sage (in South Africa anyway) originated, many, many moons ago, as Turbo Cash by Pink Software. Now that was a great accounting package.

As the story goes in many a boardroom, the founders of Turbo Cash had a falling out, split up, and Turbo Cash went one way and Softline Pastel was born.

The founders of Pastel Accounting (Softline Pastel) somehow had the ear of many chartered accountants, as soon thereafter (their inception), chartered accountants all over South Africa were specifying to their clients that they MUST use Pastel. Very much like we have with XERO today.

Unfortunately, Pastel Accounting was technologically flawed in that it often crashed over networks with data corruption, batches being locked and unable to be rescued. Some of those problems still exist within Sage today, which is the name of the UK company who acquired Softline Pastel in 2003.

Sage has a desktop version which is widely used by accounting firms as it provides them the facility to add many clients’ accounting data without additional cost. This is a very cost-effective solution for a small business who outsources their accounting processing.

However, Sage has also, in recent years developed a cloud accounting solution, which offers all the main features. The entry level package is very limited, especially considering the price. The next level up has more features, but more than two users are charged additionally, Advanced inventory is charged additionally, Debtors Manager is charged additionally. Etc., etc.

You can view the feature and price comparison here: Right-click here

Sage (Pastel Accounting) is an institution in South Africa and has many, many users country wide who still support it. However, if you’re starting a new business the trend seems to go for something more modern and cost-effective.

Here are a number of reviews for Sage by actual users: Right-click here

Sage Accounting Website: Right-click here

What can you take from all these reviews?

• Review the business in its entirety.
• Establish the needs, time, and manpower thereof; and
• Select the software package that best fits most of the requirements and abilities.
• If you are still unsure, contact us or your accountant, for guidance.