The Top 8 Accounting Software of 2020
Hello there, Small Business Owner / Aspiring Entrepreneur / Passionate Freelancer / Family Bookkeeper.
Whether you are doing it all on your own, or are part of a visionary start-up, it’s hard to beat the excitement and time invested into focusing on the goals, operations, and strategies of your business.
So my question to you is, while you are hustling hard and playing to your talents and entrepreneurial strengths, how well are your finances and bookkeeping being tended to? Though this subject is often postponed and swept under the rug until tax season rolls around, sound financial management cannot be ignored for too long.
My advice to you is this - once you couple a great accounting software with an upstanding financial consultant, that is when the de-stressing, opportunity building, and the real magic happens.
For starters, the automation and cost-efficiency of technological tools are here to make your lives more convenient. With an ever-expanding range of features and functions at your fingertips, utilising smart software today is a wise choice for a better tomorrow. Nonetheless, in the endeavour to achieve your dream financial plan, this is merely the first step.
Enter, your dedicated financial advisor - who brings a wealth of insight, expertise, and their own personal touch to the table. They are there for you when you need to make game-time business decisions, need numbers explained, or are simply seeking an honest and trustworthy opinion.
Throughout Greater Vancouver and across Canada, I’m known as one of these approachable individuals. As a CPA who values mentorship and social advocacy, my holistic approach to accounting services is second to none.
Clients have dubbed me as “the guy to have in your corner to reach your goals”, and have described me as “incredible to work with” and “someone you can trust”. More than tax planning and professional consultancy though, I provide a sense of relief through my deep care for clients and their businesses. We’re getting ahead of ourselves here, so before giving me a call, let’s rewind to our subject of ‘The 8 Best Accounting Software of 2020’.
In a digital world of contending software, with all the bells and whistles, which is the best one for you? In our list, we will be awarding some honourable mentions, as well as showcasing both free and paid services. Without further ado, let’s put the industry’s top 8 head to head and crown a victor.
FreshBooks is a proud Canadian-born company that was founded in the heart of Toronto in 2003. I adore Freshbooks’ humble beginnings, from a basement of 4 employees, to now an award-winning team of over 300. Package plans begin at an affordable $4.50 per month, and their portfolio of customers is spread across 160 countries.
Service-based entrepreneurs and businesses, this one's for you. Invoicing is a fundamental accounting need for all service-based businesses, no matter if you are a designer, marketer, landscaper, or plumber.
Compared to other software on the market, FreshBooks features more invoicing customisations than its competitors. Initially built as invoicing software, this is the area where FreshBooks stands high above the rest. Send proposals, submit invoices, request payments, and get paid.
What else I love
FreshBooks supports billing in multiple currencies and languages
Time and expense tracking is included in every plan - again, perfect for independent contractors and freelancers
Unlimited invoicing; as well as being notified once clients have viewed their invoice
Not so common with most accounting software, FreshBooks offers a private client portal - convenient for your clients to review and revisit anything outstanding
What is lacking
Limitations in only storing 5 billable clients (on the most basic plan)
No inventory tracking or management tools
No payroll services unless added through third-party apps
FreshBooks does not automatically prepare or estimate taxes - although expenses are categorised and organised, tax time can also be a lonely time
Award for...
The best for service-based businesses and - you guessed it - invoicing!
2. QuickBooks Online
As one of the most reviewed and rated accounting software around, you may have heard of QuickBooks Online by Intuit. They are geared towards small to medium-sized businesses and also provide online training resources and support for their users.
In addition to a low learning curve, QuickBooks is notably scalable. Essentially what this means is that as your business baby grows, you can upgrade your software to adapt to your new and expanding business needs.
What else I love
All plans integrate with third-party apps, for example, PayPal
QuickBooks provides comprehensive and detailed financial reports
It is Cloud-based so you can hop on anytime, anywhere, as long as you have an internet connection
What is lacking
More expensive than its competitors, QuickBooks’ plans can reach up to $50 per month
Though renowned through brand and geographical reach, their infamous customer service leaves much to be desired
A paid upgrade is necessary to add more users to your account
Award for…
The most user-friendly interface and delightful app experience.
3. Sage
Sage’s story begins as a modest British start-up in the ’80s, to listing on the London Stock Exchange, and today servicing customers across 23 countries. Most recently, the company announced Canada’s own Sage Business Cloud Marketplace to help equip businesses to perform even better.
I love that Sage not only encourages multiple users to manage accounts, but also allows your accountant to access your books for not a cent more.
What else I love
Affordability - with package plans ranging from just $14-30 per month
Sales taxes are automatically calculated for you
The ability to integrate and sync with your Google Drive account provides automatic digital back-ups
The Sage Foundation initiative aims to provide resources, technology, and socio-economic opportunities to local communities and charities. Their current mission is to raise $2 million by 2022. Some of Sage’s most aspiring fundraising events include cycling from London to Paris and climbing mountain peaks in Australia.
What is lacking
Compared to its competitors, Sage does not boast the most user-friendly interface to navigate
It also does not incorporate as easily and seamlessly into your existing business as other software
Award for…
Outstanding care for the community!
4. Wave
Turning just 10 years old in 2020, Wave began as a cosy team of eight in a Toronto co-working space. With over 250 employees today, the company is an avid cheerleader for freelancers and small business owners, with over half of the Wave team having owned a business.
They have been applauded by ‘Great Place to Work Canada’ in categories including Technology and Millennials, as well as Mental Wellness, Women, and Inclusion.
What else I love
Wave is FREE - and we don’t mean ‘free-trial free’, but free for life
The interface is sleek and the dashboard is user-friendly
From a single account, you can manage multiple businesses, and segment personal and professional finances - which is handy if you have various side hustles
What is lacking
While Wave’s free plan can send basic invoices (which is fine if you are just starting out and only require basic accounting tools) - it does not feature payroll tools or the ability to track inventory
Charges are associated with credit cards processing and additional features, such as payroll
Compared to other accounting software, Wave has limited abilities when integrating with third-party applications
Award for…
Best value and most affordable - nothing beats free!
5. Zoho Books
Zoho Books is the champion when it comes to automating your business processes. By strategically automating workflow tasks, you can then free up time to focus on the more important things in life.
Zoho Books is also an accounting software that can keep you connected on any Windows, Android, or IOS device with their mobile-optimised app.
What else I love
Collaboration is effortless with Zoho Books’ client portal
Even on the most basic plans, beginning at $12 per month, automation tools are included to help you eliminate repetitive and recurring tasks, such as the pesky customer payment reminder
Customisation is a dream with a large number of Zoho apps you can choose to add-on depending on your own accounting experience
They also provide a simplified Accounting Dictionary for those wishing to learn more
What is lacking
Due to its advanced features, the learning curve here is steeper than its competitors
Zoho currently does not offer a payroll app
Award for…
Best automation and mobile accessibility!
6. Xero
New Zealand-founded Xero has been popular in New Zealand, the United Kingdom, and Australia since its inception in 2006. It is geared towards micro to small businesses seeking simple, uncomplicated software with a clean interface.
It is these small businesses that Xero believes, ‘make the world go round’, and by partnering with their customers and global community they have their sights set on the future and are on a trajectory of constant innovation.
What else I love
Unlimited users can access single accounts
Third-party app integration is available through their easy-to-navigate App Marketplace
Xero’s dedicated page for Customer Stories warms hearts with its passionate stories from hot sauce aficionados to lovers of music, fashion, and wine
What is lacking
Xero’s customer service is not the greatest, with a lack of assistance via chat or phone
Limited reporting features are a downside for those who require more complex records
Xero’s basic package begins at $15 per month, but then jumps to $40 then $52 for upgraded plans
Award for…
Similar to their Forbes listing in 2014 and 2015, we applaud Xero for their constant innovative growth!
7. Kashoo
Kashoo is another accounting software that caters to the small business owner. This Vancouver-based team loves the owner-operator, the freelancer, digital professionals and contractors. If this sounds like you, Kashoo wants to give you the gift of accounting simplicity.
Kashoo uses Kashoo, and all of their 20 team members also use Kashoo.
What else I love
Kashoo’s down to earth personality is charming. Their answer to the question, “What if I hate Kashoo?” begins with, “We will be sad :(“ as they go on t0 describe their non-committal, cancel-any-time terms
Their customer support is top-notch, with every employee involved in answering calls and participating in chatbox responses
What is lacking
Kashoo is not for you if you require tools for inventory tracking or time billing
It is not scalability suited - which is a pitfall when your small business matures, growing in size as well as the need for more complex accounting tools
Award for…
Easy peasy, set-up-in-60-seconds software!
8. AccountEdge Pro
The accounting software I have showcased thus far are predominately cloud or web-based applications that were founded in the new millennium. AccountEdge Pro, however, is a desktop-based software that has been on the streets since 1989.
It has assuredly developed and advanced with the times and is my recommendation for more experienced individuals who are familiar with accounting.
What else I love
AccountEdge Pro’s sizable reporting capabilities is delightful for those who are comfortable in the accounting realm
Unlike free or lower-priced software plans, AccountEdge Pro includes features such as robust tax management, accounts payable and receivable, and payroll tools
What is lacking
This software is optimised and customisable for desktop - Windows or Mac only - which makes it a thumbs down for mobile users
Should you require it, however, a cloud-collaboration option can be added on, but for an additional cost
Rather than offering month-to-month subscription plans, AccountEdge Pro requires a one-time licensing fee starting at $400, plus upgrading fees thereafter
Award for…
Best reporting capabilities, tailored to the amateur and advanced accountant!
And The Winner Is
FreshBooks is the champion in my books this year. To reiterate, I love:
To support a fellow Canadian-founded business
The outstanding invoicing features and customisations
That it is perfect for freelancers and service-based business owners
It’s affordability, with plans beginning at just $4.50 per month
As we shimmy into the new year, what better way to start 2021 on the right foot than adding accounting software to your agenda. Take a step towards better financial health, wealth, and management at the comfort of your desk. Not to mention, almost all the software on my list offers 14-30 day free trials - so you can find the one that’s right for you, the one that is most intuitive, and the one which suits your current business needs.
With all the benefits - such as automation, cost efficiency, and remote accessibility - let’s not lose sight of the value an accountant can instill in your life. Bringing you their comprehensive expertise and personal touch, this is something that cannot be matched by software or systems, no matter how smart.
Enjoy peace of mind and the best of both worlds with your choice of accounting software and an experienced CPA like me who will help you focus on your goals, grow your business profile, and personalise financial strategies just for you.
