Hitting the Books: Essential Bookkeeping Tools to Help You Get Started

Just like studying in school requires textbooks, notebooks and highlighters, successful bookkeeping relies on the right tools. But instead of pens and paper, your must-haves include powerful bookkeeping software to keep your finances in check. Bookkeeping software not only allows you to easily track your finances but also helps you save a lot of time. Want to learn more about bookkeeping software and which option best suits your company? Keep reading as we review why proper bookkeeping is important, manual bookkeeping vs. bookkeeping software and four different bookkeeping software options.  

Why is proper bookkeeping important?  

Think of your bookkeeping as the foundation of your business finances – if it’s not done correctly, the entire structure can collapse. Bookkeeping works to simplify your business finances and helps to ensure legal compliance and accurate tax reporting. Keeping your books in order also helps you track your company’s financial health and aids in your decision making.  

Manual Bookkeeping vs. Bookkeeping Software 

Manual bookkeeping is the process of recording and tracking a business’ financial transactions by hand, using physical ledgers, journals and paper documents. While manual bookkeeping is lower in cost and allows for more control, this method is also very time-consuming, more susceptible to human error and gives you limited access to your documents.  

Bookkeeping software are digital tools that automate and simplify the process of recording, tracking and managing a business’ financial transactions. While bookkeeping software requires a learning curve and is slightly more expensive, it’s a worthwhile investment and allows for bank integration, secure data storage and ensured tax compliance.  

Bookkeeping Software Options  

1) QuickBooks - Most Comprehensive  

This cloud-based software offers a wide variety of features that can be easily accessed online or through their mobile app. 

Features include:  

• Invoicing and payments, receipt capture, expense tracking, cash flow and inventory management.  

• Forums and online training resources. 

2) Wave Accounting - Best Free Option  

This software is a great option for small businesses that have a tighter budget. Wave’s free accounting software is available online or on the mobile app and gives you easy access to your reports.  

Features include:  

• Income and expense tracking, financial reporting, invoicing and receipt scanning. 

• Unlimited user, bank account and credit card connections. 

3) FreshBooks - Best Invoicing Software  

If you are looking for a way to create and keep up with multiple invoices, this is the software for you. 

Features Include:  

• Estimates, customizable unlimited invoices, payment reminders and late fees, project budgets and deposits and payments. 

• Allows you to bill clients in multiple currencies, languages and on a subscription basis.  

4) Xero - Simplest Software  

Xero is a simple, straightforward online software that can accommodate a small business at any stage of growth. 

Features Include:  

• Invoice and quote sending, transaction reconciliation, bill and receipt capture, project tracking, expense claims and analytics.  

• An optional payroll add-on to calculate pay and deductions.  

  
  

Although bookkeeping can seem like a daunting task, with the right tools equipped in your belt, you can tackle the task with ease. With that in mind, your bookkeeping can make or break your business finances and sometimes getting the help of a professional is the best approach for those new to the process. Want some help from professionals that specialize in small business bookkeeping? Our consultants are here to help! At STEPS, we offer tailored bookkeeping services and can work with you to set up financial management processes that you and your business can count on. To learn more, visit our bookkeeping tab or reach out to us on our contact page.