The first question anyone asks when it comes to the free accounting software is:
What is the catch?
And the quick answer is yes, there are a few catches.The first catch is that free versions of most free accounting software have limited functions. The additional functions like the ability to have additional users or to make off-site backups may be charged a premium.
The second "catch" is the accounting firm behind the production of the software may give you the service for free, but then at the end of the financial year offer you their business planning or taxation services for a fee. Usually you need to pay for these services anyway, so it really is a great business idea. Give before you get so they say.
The first thing you need to consider before signing up to any accounting software service provider is - What do you actually need? ALL businesses whether small or large need to take good care of a few primary functions - Accounts payable and receivable, expenses and tax reporting.
But spend a bit of time assessing where your business is and where it may go and what it may require in the future. This will help you assess what the free packages have as basic functions and what they may charge for in the future.
Some of the more premium functions you may need now or in the future may include: Inventory - do you sell items that need to be accounted for? This may include items you sell as a combination of base stock items and need to be "built" in the accounting package and kept track of & making decisions and beat the big companies.
CRM - Stands for Customer Relationship Management. Some accounting software has this built in, but you may be better opting for a stand alone service separate to your system with the accounts in it?
Payroll - If you have staff you of course need to pay them! And keep track of any taxation and any government and/or superannuation contributions payable. Sales Reporting - In line with CRM functions, do you need to track and forecast sales? And again if you choose a separate CRM program, this will be built in.
Online is certainly becoming more and more popular. Because it has a number of benefits. But if you do consider an online accounting system, be sure your connection is always available (where you are) and fast. Remember a slow connection means a slow accounting package and lots of frustration. If you are most often office based and/or you always have a good internet connection, even with your smartphone, there really is no reason why you wouldn't go for an online solution. And you don't need to worry about online security anymore. As time has passed, most online data centres can boast industry best practice online security and data encryption as standard features.
With an online service, you also get the ongoing benefit of always having the most up-to-date versions of the software at your fingertips. A desktop version is yours to use forever, however you may need to pay for upgrades from time to time.
So in summary, it is not necessarily a bad thing to pay for an online service - keeping a good track of cash flow and taxation in your business is very important! Although with a bit of online research, you may just find the best free accounting software that will do everything you need it to.
Free doesn't mean bad. There are quite a few options for the best free accounting software available to you today. If you know about Accounting Software you just click here .
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