Choosing the right type of software for any part of your business can be overwhelming and confusing. When the software is for something you don’t know much about, like your bookkeeping for example, that’s when it gets over complicated! It doesn’t need to be though. 

At Bluebells Bookkeeping we only use Xero and Quickbooks for our clients, backed up by various integrations such as Dext. We want to keep your bookkeeping process as simple as possible. We didn’t want to limit ourselves to just the one piece of software as we like you to have a choice. So, what we have done is chosen the 2 best software platforms for your bookkeeping requirements.

If you are doing your own bookkeeping here’s a few things to consider when choosing your accountancy software.

Business Structure

Not all bookkeeping software will be suitable to meet your requirements. Quickbooks have a piece of software called QuickBooks Simple Start.  It’s the best one to start with as you can upgrade it when needed. It's also suitable if you’re a small business or sole trader managing VAT, income tax and preparing self assessments.

If you’re looking to grow your business in the future then you need to be sure that your accounting software will grow with you. Xero would be the perfect solution for you, or perhaps QuickBooks Online.

Are you VAT Registered?

As we’ve already touched upon some software platforms do not have the capability to cope if you’re VAT registered. Do your research and ensure that the software you choose does everything you need it to do. You need to keep everything in one place so your process is streamlined and efficient. 

Do you hold stock?

If you have stock which you need to manage, this is another thing you need to think about when choosing your software. QuickBooks Online can manage stock for you but only on the Plus or Advanced versions of the software. Xero will require integration with an Inventory app. 

Multi-Currency

Do you deal with various types of currency? Not all bookkeeping software will have the capability and you may find you need to pay a little extra to get this covered. Xero has the capability but you will need a business edition pricing plan to allow you to use multiple currencies. In Quickbooks providing you have an essentials or plus plan you can enable multi currencies. However, once you enable this feature it cannot be switched off.

How many transactions do you have?

This is one that you may forget to consider. Your software needs to be able to process the volume of the transactions you have and if this is set to increase, it needs to be able to adapt to this. Choosing the wrong software for your business could result in slow loading times or restrictions limiting transactions. This of course can slow down your bookkeeping process meaning your information isn’t always accurate as it’s not in real time.

Number of bank accounts

If you have more than one bank account you’ll need to find out if the software is capable of connecting to more than one bank feed. Quickbooks and Xero allow you to connect multiple accounts. You’ll find that most bookkeeping software won’t allow you to connect a personal account. We advise that all business transactions should be done through a business account, so that your bookkeeping is easier to manage. Of course this is essential for limited companies anyway.

Cost

Choosing the cheapest software may result in the software not having the capabilities you require as you grow. It’s well worth investing in the best software for your business as this means you get complete transparency of your finances. This is vital if you want to scale your business. 

Integrations

As your business grows your processes will change. You don’t want the faff of changing accounting software further down the line. Xero is by far the best platform when it comes to integrations and new apps are always being added to Xero Marketplace. Check it out and see what’s best for you.

Outsourcing

Will you be outsourcing your bookkeeping or thinking of doing so further down the line? If so, make sure your software has the capabilities for collaboration.

If you’d rather leave choosing software to your bookkeeper or accountant then that’s exactly what you can do. We’ll consider all aspects of your business to find out what suits your business best. Outsourcing your bookkeeper will be a load off of your mind and you’ll get so much time back to be able to focus on the areas of your business that need you most.

Get in touch today for a no obligation consultation.