Tag Archive for: online accounting software

Choosing the Right Accounting System for Your Shopify Business

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Editor’s Note: This post was originally published in October 2017 and has been updated for accuracy and comprehensiveness.

Whether you’re brand new to online retail and trying to decide how to set up your eCommerce business, or you’ve been around a while and simply reached the point where your DIY accounting solution just isn’t cutting it anymore, xendoo’s innovative suite of business offerings can help you. xendoo can get your small business accounting running like a well-oiled machine so you can focus on what’s important – growing your business. To be competitive in the new economy, cloud-based accounting is no longer a luxury; it’s a necessity. Here are some of the best accounting systems for Shopify that can help get your business on track.

QuickBooks Online

QuickBooks Online is the cloud-based version of the popular and versatile QuickBooks business accounting software. Quickbooks Online accounting system for Shopify allows you to access your account information from any web browser, and the API creates a seamless interface that links directly to xendoo’s platform. That means you can easily organize and sync all of your critical financial data with no tedious manual data entry. Additionally, Quickbooks Online for Shopify allows you to easily create and send invoices, receive payments, pay bills, and manage payroll. 

  • Track income and expenses
  • Capture and organize receipts according to your chart of accounts
  • Download and organize bank account and credit card transactions
  • Print checks
  • Create and send invoices, as well as receive payments
  • Print financial reports
  • Tax organization

A person holds their phone lookig at a recent Shopify order

Xero for E-commerce

QuickBooks is a popular accounting system for Shopify, but it may not be the best choice for everyone. Xero is another cloud-based accounting solution that will appeal to a lot of Shopify store owners. Xero is fast, simple, and powerful. It can sync with hundreds of third-party applications for point-of-sale, inventory, and much more. It also offers a mobile app for convenience and allows customers to create an unlimited number of users. From within the Xero accounting software for Shopify, you can manage your accounts payable, accounts receivable, budget, and category or division tracking. 

  • Customizable dashboard
  • Create invoices and quotes and receive payments
  • Track inventory
  • Bill payment
  • Expense management and project management
  • Create and print financial reports
  • Bank account reconciliation
  • Highly scalable for small or growing businesses

A2X for Shopify

A popular middleware, or “connector,” application that links your Shopify store with your cloud-based accounting system is A2X for Shopify. It automatically posts your Shopify sales and fees directly into QuickBooks or Xero, saving you hours of tedious work each week. That also means no more stressing over why transactions don’t match your bank deposits because A2X eliminates data entry mistakes.

  • Automatically post store data into QuickBooks or Xero
  • Automatically reconcile bank statements
  • Automatically make adjustments for fees and refunds
  • Create and print summarized statements

Coins spills out of a glass jar on a table

TaxJar for Shopify

A major time vampire for business owners who sell on Shopify is state sales tax compliance in the wake of Wayfair, Inc. v. South Dakota (2018), which requires online sellers to comply with sales tax requirements in each state where they do business. TaxJar accounting system for Shopify will streamline your sales tax compliance process by showing you where you should be collecting sales tax according to economic nexus laws and generating return-ready reports. It can even auto-file your returns for you if you want.

  • Calculate sales tax based on each state’s nexus
  • Daily updates allow for timely return filing
  • AutoFile option for automated return filing
  • Display fines and penalties for delinquent filing
  • Compare actual collections to what should have been collected

Shopify Apps

In addition to your accounting software, Shopify offers over 1,000 plug-in applications from their app store to help you with managing inventory, shipping, reporting, and much more. However, we suggest that you fully explore the capabilities of QuickBooks, Xero, A2X, and TaxJar before making any decisions about additional applications. A lot of functionality might be duplicated, and you certainly don’t want to pay for the same thing twice.

In addition to tons of helpful plug-ins, Shopify also features a profit margin calculator. Just plug in your cost of the item and a markup percentage, and Shopify will calculate the sale price, your gross profit in dollars, and your gross margin.

Outsourcing Your Bookkeeping and Accounting

Even though these accounting systems for Shopify can make life much simpler for sellers than even just a few years ago, it can still sometimes feel overwhelming. If you begin to feel like you might be in over your head, you should consider outsourcing your accounting and bookkeeping to a small business accounting firm like xendoo.

There are a lot of good reasons to outsource your accounting for your Shopify eCommerce business, and it’s more affordable than you might think. xendoo’s accounting team works with small business owners just like you to provide expertise and insight into the accounting needs of e-commerce businesses. xendoo can take care of everything from weekly bookkeeping to filing business taxes for you, and our flat monthly fee is less than half of what you’d probably pay an accountant. xendoo’s mission is to give you the peace of mind of knowing it’s being done right, and free your time to focus on what’s important – growing your business. Sign up for a free trial today.

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

 

The Best Online Accounting Software for Small Businesses

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Online accounting software tools

A skilled accountant will keep you tax compliant and ensure that you’re always in-the-know and focused on the big picture when it comes to your financials. Yes, you could try to do it all yourself, but do you have the time or expertise? (Or the interest!?) 

And cost can definitely feel like a huge barrier here – it can be hard for a small business to afford to hire an accountant. Additionally, if you wait until tax time to get it together, it can end up giving you a real headache – hiring an accountant at the last minute with books full of errors could cost you more than you set aside in the first place. Thankfully in 2021, there are many affordable online accounting software options available for small businesses.

What does online accounting software do?

Online accounting software stores a business’s financial data in the cloud, and is often used to perform business transactions such as invoicing clients and cutting checks. Most modern accounting software platforms, such as Quickbooks Online or Xero, are always connected to the internet, and they automatically receive and update your data by connecting to your bank accounts. With these platforms, you have access to your books from any internet-capable device, like your laptop or smartphone. Most of these programs automatically enter, store, and analyze data for you which is especially useful for saving time on tasks like bank reconciliation. Not all accounting programs were made equally, though! Different kinds of accounting software programs are made for different businesses. Some come with tons of features and are good for larger teams or international markets, like Xero, while others focused on small businesses with a sole bookkeeper, like Quickbooks.

The best online accounting software for a small business offers useful tools like invoicing, bill payment, payroll, and financial reporting. Many even offer tools for project management and time tracking. xendoo can take much of the daily bookkeeping work off your plate—we utilize Quickbooks and Xero accounting software, so you have ownership of your financial records while benefiting from the xendoo online bookkeeping and accounting team.

Why your small business needs accounting software

Your small business can benefit from online accounting software if you’re just plain bad at math, unorganized, or find it hard to conceptualize finances and consistently track incoming cash. Having a clear set of invoice and payment records is one of the most important things a small business can do to set itself up for success. Online accounting software provides tracking and up-to-date visibility to the financial health of your business, so you can make smart decisions and be tax-ready all year long. And the most common reason of all for why your small business needs accounting software is that you are too busy focusing on the ins and outs of running your business to take on all of the bookkeeping, accounting, and taxes on your own!

Our picks for the best online accounting software for small business: 

Xero

Xero prides itself on providing fast, simple, powerful accounting software that all of your users can access at the same time, regardless of their different locations or operating systems. Xero offers a variety of user-friendly features to help you run your business, such as paying bills, claiming expenses, and accepting payments. 

The Xero model of using a single unified ledger is particularly helpful for businesses that have team members working internationally or even in different time zones – everyone can work in the same books at the same time. And it’s a good choice for businesses that are growing or that change frequently – Xero is known for having a large amount of secure connections with financial institutions around the world and integrates with more than 500 third-party apps, plug-ins, and products so you can craft a solution that meets your ever-changing needs.

Choosing Xero for your accounting software needs is a great choice, but keep in mind that you will still need to manage the software on your own, perform your own data entry and bookkeeping, and will likely still need to hire an external CPA for tax filing. If you don’t have any bookkeeping experience there’s always a chance you will use the tools incorrectly. Additionally, Xero might not be the best choice for you if phone support is important to you as they only offer customer support over email, or through their online resources.

Wave

Wave offers online financial software designed with entrepreneurs in mind. Sole proprietors love the price tag – they offer accounting software, invoicing, and receipt scanning for free. Keep in mind these are the tools – you will still need to understand how to manage it all on your own. Without any background or experience, there is always a chance you will use the tools incorrectly.

Additionally, under separate paid plans, Wave offers bookkeeping services, payroll services, and online payment processing. It is an excellent choice for very small businesses but isn’t suitable for larger businesses. Unlike most other online accounting software options, Wave doesn’t offer robust mobile apps or additional useful tools like project management and time tracking. It’s the best free option for basic accounting software but lacks additional features that growing businesses need. Wave is owned by the tax preparation company H&R Block.

QuickBooks

QuickBooks Online is one of the most popular accounting software options for small and mid sized businesses. QuickBooks was originally released in 1983 and is owned by Intuit, who also makes financial programs TurboTax and Mint. QuickBooks Online is their online accounting software and offers all the robust features you would expect from financial software – accepting business payments, managing and paying bills, payroll options, customer support, and more – all for a set monthly fee.

For additional fees, QuickBooks Online can connect you with recommended bookkeepers and advisors. QuickBooks Online is one of the most trusted online accounting software options out there, but keep in mind that you still need to know what you are doing – QuickBooks doesn’t do the work for you. Without any training in bookkeeping, it’s very easy to use the tools incorrectly.

Zoho Books

Zoho offers a suite of online productivity tools and apps. Their online accounting software, Zoho Books, is a popular affordable option for very small businesses who do not need integrated payroll within their software. They offer most of the features you’d expect from an online accounting software solution – except for integrated payroll, which is very important to most businesses. Additionally, Zoho Books caps transactions at a certain size on their highest paid plan – something worth noting if your business is growing rapidly. As with most other online accounting software options, you still need to manage everything yourself and know what you are doing. You will need to handle all bookkeeping and accounting on your own, and will likely need to hire an external CPA to manage your taxes and help you stay compliant.

Why you should hire an accountant for your business

When you outsource your accounting you save time and money right off the bat, and ultimately contributes to the overall health and success of your small business because having a clear and accurate picture of your financial records is absolutely key. Investing in help to properly manage and organize your finances and operations ensures that you are hitting your profit goals, staying legally compliant, and contributing to the success and prosperity of your business. 

xendoo syncs up with partner software platforms Quickbooks and Xero, to save time, improve accuracy, and keep your books up to date. This makes it easy to transition from working alone and trying to do it all yourself – plus it’s easy if you ever need to change platforms because your bookkeeping software goes with you. 

xendoo does your monthly bookkeeping for you – providing a monthly profit and loss report, and a balance sheet report. And it also keeps you IRS compliant and takes care of your tax returns. You can see your revenue and profitability trends over time. And whenever you need to talk to your financial team, they’re available via text, call, or email. 

A major benefit to working with xendoo is that it utilizes Quickbooks and Xero for bookkeeping. Plus xendoo’s in-house CPAs prepare and file your business tax returns all under the same roof as xendoo bookkeepers, who are all located in the U.S. Tax consulting is also available throughout the year in most plans. Most of their online accounting packages include weekly bookkeeping, tax consulting, tax preparation and filing, dashboards, profit & loss statements, balance sheet, and a dedicated bookkeeper. 

With xendoo’s all in-house online small business bookkeeping and accounting expertise, you’ll have the ability to take your bookkeeping software if you decide to hand it over to someone else – making xendoo a safe and dependable first choice in online accounting software for small businesses.

Ready to have those books off your hands? Contact us to schedule a free consultation.