As businesses increasingly move to remote work, the demand for accounting software that can be accessed from anywhere has never been higher. An ever-increasing number of companies are turning to cloud accounting software to help streamline their financial operations.
This type of software has become increasingly popular in recent years, as it offers several advantages over traditional on-premise accounting software.
To help you make the best decision for your accounting needs, this article reviews the seven best cloud accounting programs for medium-sized businesses, examining their features, costs, pros, and cons.
Cloud Accounting 101
Cloud accounting is a way to run business accounts entirely online. It is the new norm in accounting practice. Cloud accounting software is a type of software that allows users to access financial information and work on it from any internet-connected device.
Historically, cloud accounting dates back to the late 1990s. NetLedger, now known as NetSuite, launched the first cloud-based accounting software. Later in the early 2000s, Xero, located in New Zealand, produced a cloud-based accounting software system that quickly gained a considerable market share in Australia and New Zealand.
Cloud accounting lets medium-sized businesses save money since investing in cloud accounting software typically costs less in the long run than traditional accounting software. It is built with non-accountants in mind, making it flexible and easy to use.
Another significant benefit of cloud accounting programs is improving team members’ collaboration. Team members can share data and work on projects in real time.
Overall Best Cloud Accounting Software
Quickbooks Online, developed by Intuit, is a popular cloud accounting solution that offers outstanding accounting services for small and mid-sized businesses. It is embraced by over 2.2 million subscribers worldwide.
Quickbooks is one of the most powerful accounting systems on the market. It has many preloaded templates and easy-to-understand training resources in text, image, and video format to help subscribers get around the software quickly.
Another function that distinguishes Quickbooks from other cloud-based software is its reporting features. It has advanced inventory features and customizable reports features that meet the needs of midsize businesses.
- It offers mobile access that aids its accessibility.
- It has excellent payroll management features for easy employee salary administration.
- Quickbooks accounting platform has a snapshot feature that gives an overview of how your business is doing.
- It offers a multi-currency feature, allowing users to adopt different currencies for clients.
- It has excellent inventory management features.
- It has a powerful invoicing feature that lets users make their own invoices, send out payment reminders, and have their payments matched up with the correct bills automatically.
- It has a Goods and Services Tax (GST) and Value-Added Tax (VAT) feature that helps users sort their spending by tax type and monitor their sales-tax obligations.
- It provides highly customizable insights and report features.
- Quickbooks is highly rated for its exceptional reporting capabilities.
- Its user interface is visually appealing.
- The mobile app is efficient, making it seamless to generate invoices and reports on the go.
- Some users have reported that customer support is poor.
Quickbooks Online offers 30 days trial period for its three plans.
- Simple Start: This plan costs $5.10 per month for the first three months and $17 monthly afterward. It costs $152.39 if billed annually.
- Essentials: This plan costs $7.80 per month for the first three months and $26 monthly afterward. It costs $233.06 if billed annually.
- Plus: This plan costs $10.80 per month for the first three months and $36 monthly afterward. It costs $322.70 if billed annually.
Most User-friendly Cloud Accounting Software
Freshbooks is a top accounting software that has been solving complex accounting needs of midsize businesses since 2003. Over 30 million people across 165 countries have used this fantastic software solution.
Freshbooks is one of the best accounting software available. It is easy to set up and can integrate several applications to assist users further in achieving excellent work in less time.
Freshbooks is known for exceptional customer support. It has highly trained support staff that takes each client’s needs personally and attends to them promptly.
- It offers industry-standard invoicing features.
- It has a time tracking feature.
- It provides automated payment features.
- It has a reconciliation feature for credit card transactions.
- It offers a unique expense feature that tracks every expense made.
- It has excellent reporting features.
- It provides a mobile app for aid accessibility when you are away from the computer.
- Freshbooks customer service is excellent. You can not be stranded while using the software.
- Its integration capabilities make it suitable for a fast-growing business.
- The automated payment, invoicing, checks and balances leave little room for human error.
- It limits the number of users making it less attractive for a large team.
- Freshbooks’ accounting functionality is not as advanced as its time tracking and invoicing functionality.
Freshbooks accounting software offers four price plans.
- Lite: This plan accommodates up to 5 billable clients. It costs $7.50 monthly and $132 if billed yearly.
- Plus: This plan accommodates up to 50 billable clients. It costs $15.00 monthly and $264 if billed yearly.
- Premium: This plan accommodates unlimited billable clients. It costs $27.50 monthly and $484 if billed yearly.
- Custom: This plan is only available on request.
Most Advanced Cloud Accounting Software
Xero, launched in New Zealand in 2006, is a highly reputable cloud accounting software. It is embraced worldwide by over 3 million users.
Xero provides top-of-the-class cloud accounting solutions for medium-sized businesses. It also offers excellent expense, document, and compliance management.
Xero can integrate with over 1 thousand applications making it a more attractive ERP solution to accountants and business owners.
- It has incredible payment scheduling features.
- It offers automated expense management features.
- It has a time tracking feature.
- Xero integrates with your bank and automatically records daily expenditures and revenue.
- It has custom invoicing features.
- Its intuitive interface makes it user-friendly.
- Xero seamlessly integrates with many other applications making users get work done faster.
- Users have reported that Xero’s bank reconciliation is poor.
Xero offers three different price plans.
- Early: This plan costs $12 per month.
- Growing: This plan costs $34 per month.
- Established: This plan costs $65 per month.
Most Versatile Cloud Accounting Software
NetSuite is a cloud-based enterprise resource planning (ERP) system that offers businesses a single platform to manage their finances, inventory, sales, and customer relations. It is a complete business management solution.
NetSuite is one of the market’s best accounting software programs and has become a trusted name in the industry. It provides pre-built industry-specific features so you can tailor the software to meet your specific business needs. It is also known for its advanced accounting features.
NetSuite ERP solution integrates with popular eCommerce platforms like Magento and Shopify, making it easy to manage your finances and online store in one place.
- It has a general ledger feature.
- It provides users with a complete view of the company’s money flows.
- It automates accounting processes, invoice delivery, payment processing, financial planning, collections management, and other business processes.
- It offers excellent tax management features.
- It also automates inefficient manual tasks, such as journal entries and account reconciliations.
- NetSuite offers a wide range of features and is highly customizable, making it a good fit for businesses of all sizes.
- NetSuite integrates with a wide range of third-party applications, allowing companies to extend its functionality.
- NetSuite offers excellent customer support.
- Because NetSuite is such a comprehensive platform, a steep learning curve is associated with implementing and using the software.
- NetSuite’s pricing model can be expensive for some businesses.
NetSuite offers a yearly subscription starting from $999 for an annual license.
Most Customizable Cloud Accounting Software
Rossum is a powerful cloud accounting software that offers users advanced accounting features, including invoicing, expense tracking, and real-time income reports.
Rossum’s standout features include its artificial intelligence-powered data entry system, which can automatically extract data from invoices, and its robust reporting capabilities.
Rossum also offers a mobile app for users who need to access their account while on the go making it more attractive to medium-sized companies.
- It can create customized invoices.
- It integrates with popular payment processors like Stripe, PayPal, and other project management tools.
- It provides real-time tracking of payments.
- It generates reports on payment trends.
- It has multi-currency support.
- Its automated data entry saves time.
- Its robust reporting features help track financial performance.
- It offers integration with popular business apps.
- Rossum has limited customization options.
- Rossum’s pricing is custom. It is only available on request, unlike other accounting solutions.
Best Cloud Accounting Software For Scalability
Sage is another popular cloud accounting system for medium-sized businesses. Sage offers subscription-based and perpetual licensing options, so you can choose the pricing model that best meets your needs.
With Sage, you can manage your finances, inventory, customers, and employees in one place. It has a handy mobile app to access your account on the go.
Sage is an accounting and invoicing software known for its ease of use and flexibility. Sage also offers comprehensive customer support and training resources.
- It offers debtors manager features that give users automatic reminders and alerts to follow up with payments.
- It provides a customizable invoicing feature.
- it has cash flow management features.
- It has stock management features.
- It offers excellent financial reporting features.
- It has project and time tracking features.
- Sage is easy to use and navigate, making it a good choice for businesses that do not have the resources to invest in training for their employees.
- Sage offers excellent customer support and training resources.
- One of Sage’s key benefits is scalability; as your business grows, you can add users and functionality, making it suitable for a mid-sized business.
- While Sage offers industry-specific solutions, these are not as comprehensive as some other accounting software options on the market. For example, the option to customize report is limited. Also, it lacks a statement report feature.
Sage costs $10 per month and $111 per year for a single user. It also offers discounted rates for multiple users.
Best Cloud Accounting Software For Customer Support
BigTime is a cloud-based accounting software that offers time tracking, billing, and project management features in one platform. BigTime allows medium-sized companies to create custom reports and dashboards so they can see their data in the way that makes the most sense for them.
With BigTime, in just a few clicks, users can track time using timers or by manually logging hours worked on specific tasks or projects. Once time has been tracked, it can be invoiced automatically or converted into billable expenses.
- It has time tracking using timers or manual entry.
- It offers invoicing automation features.
- It provides robust reporting features.
- Its project management tools make it ideal for companies who need to track multiple projects at once.
- Its flexible pricing structure makes it easy to scale up or down as needed.
- Project budgeting tool helps businesses stay on track and within budget.
- It has flexible pricing options.
- It offers excellent customizable templates.
- BigTime has limited customer support options.
BigTime has three pricing plans:
- Express: This plan costs $10 per user (minimum of five users), billed annually.
- Pro: This plan costs $30 per user (minimum of five users), billed annually.
- Premier: This plan costs $40 per user (minimum of five users), billed annually.
Factors to Consider When Choosing A Cloud Accounting Software For Medium-Sized Businesses
As a medium-sized business, you have many options when making business decisions on cloud accounting tools. It can be overwhelming to figure out which is right for you. Here are seven factors to consider when making your decision:
Ease Of Use
You want an ERP software that is user-friendly and easy to navigate. Otherwise, you’ll never use it to its full potential or get the most out of your investment. Freshbooks is an excellent option for businesses looking for easy-to-use accounting software.
The features and integrations offered by each cloud accounting system provider will vary, so it’s essential to evaluate which features are most important for your business. For example, make sure the software can do everything if you need inventory management, project management, or e-commerce integration.
Make a list of must-have features and compare different providers to see which one best meets your needs. NetSuite and Xero is a comprehensive ERP software with many features, making it an excellent option for businesses of all sizes.
You’ll need to consider the software costs when choosing a cloud-based accounting solution. Don’t just go for the cheapest option – make sure you’re getting what you pay for in terms of features and functionality. QuickBooks Online, Sage, and BigTime offer very affordable plans, making them great options for medium-sized businesses on a tight budget.
When something goes wrong with your accounting software, you’ll want to be able to get help from customer service as quickly as possible. You’ll want to find software with customer service representatives who are knowledgeable and responsive so that you can get back up and running as soon as possible. BigTime has 24/7 support available by phone, email, and live chat to get help whenever needed.
Another factor to consider when choosing an accounting solution is integration. You’ll want to find software that integrates with other applications and services that you use so that you can avoid having to switch between multiple platforms.
QuickBooks Online, Xero, and NetSuite are versatile accounting software that offers commendable integrations with several ERP systems and other business applications that is common to medium-sized businesses.
If you’re using Mac computers in your office, ensure the accounting solution you choose is compatible with that platform. Otherwise, you’ll run into frustration and waste time trying to get everything to work together.
Medium-sized businesses should consider an accounting system with robust security measures to protect their data. After all, you don’t want anyone getting their hands on your confidential financial information.
QuickBooks Online uses data encryption and multi-factor authentication to keep your data safe and secure.
Cloud accounting software is an excellent solution for businesses that want to save money and improve collaboration. There are many factors to consider when choosing the right accounting software for medium-sized businesses.
Before making your final decision, you compare pricing, ease of use, features, scalability, customer support, and security. Taking the time to do your research will help you to find the right fit for your accounting needs.