The best cloud accounting software 2024: Pros,cons and more
Discover the top cloud accounting software for 2024 with comprehensive pros, cons, and more. Find the perfect fit for your business needs.
FreshBooks stands out as the top choice for cloud accounting software in 2024 for the majority of businesses, as it simplifies accounting and invoicing processes, aids in time tracking and project management, and enhances client communication and collaboration.
However, it's worth noting that other tools may be more suitable for specific business requirements. For instance, since FreshBooks lacks inventory management features, alternatives like Zoho Books or Xero might be preferable.
To assist in making an informed decision, we've conducted reviews and comparisons of the seven leading cloud-based accounting tools. This allows you to explore the offerings of each provider and accurately evaluate which software aligns best with your business needs.
Ranking the best 5 cloud accounting software
- Xero: Premier for Managing Multi-Currency Finances
- Zoho Books: Optimal for Retailers and E-commerce Ventures
- Oracle NetSuite: Ideal for Enterprise-level Businesses
- FreshBooks: Top Choice for Overall Excellence
- Sage 50 Accounting: Superb for Budgetary Management
The best cloud accounting software
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Xero shares similarities with Zoho Books, particularly in its strengths in inventory management, purchase order handling, and managing clients and vendors. Although Xero lacks dedicated portals for vendors and customers, it surpasses Zoho Books in one key aspect — it enables bill payments and accepts payments in over 160 different currencies.
Other compelling features of Xero include fixed asset management, unlimited online file storage, automated bank reconciliation, automated sales tax calculation, and the capability to manage payroll for a small team. Additionally, Xero provides job tracking tools that enable monitoring of time and costs for individual jobs or projects, aiding in various tasks from project planning and budgeting to quoting and invoicing.
Tailored invoices with automated reminders Accounting for multiple currencies (over 160 supported) User-friendly mobile app for bookkeeping and accounting Automated sales tax computation Sophisticated inventory and fixed asset oversight.png)
Expenses, projects, and analytics plus are all additional features available for purchase
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Zoho Books stands out as another exceptional online accounting solution, streamlining business workflows, enabling swift creation of professional quotes and invoices, expense tracking, project management, and tax management. What sets Zoho Books apart from others on our list is its provision of both vendor and customer portals. The vendor portal facilitates seamless communication and collaboration, reduces reliance on lengthy email exchanges, enables conversion of vendor invoices to bills, and alerts you about upcoming payments. It also simplifies the creation and transmission of purchase orders.
Similarly, the customer portal is invaluable, offering insights into customer satisfaction, expediting quote approvals, enabling one-click conversion of estimates into invoices, and streamlining the payment process. Zoho Books also shines in inventory management, providing real-time stock tracking, automated alerts for low stock levels, and organization of inventory with SKUs, cost, and stock-on-hand data.
Complimentary tier available for businesses earning <$50k annually Enhanced inventory management features Dedicated vendor and customer portals Basic project management features with integrated time tracking Seamless integration with other Zoho applications (Zoho CRM, Zoho Creator, Zoho Payroll) Restricted user count per plan
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Oracle NetSuite presents a comprehensive business management solution encompassing a diverse array of products and modules to support various operational aspects. One of its key offerings, the cloud-based platform known as NetSuite Cloud Accounting, is tailored to enhance financial oversight, streamline accounting-related administrative tasks, accelerate financial close processes, and optimize cash flow and tax management.
This platform facilitates effortless tracking of invoices and expenses, accelerates the credit-to-cash cycle, automates reconciliation procedures, and provides comprehensive visibility into all financial transactions. Additionally, it empowers users to digitize fixed asset management across multiple locations, ensuring complete control over the entire asset lifecycle. An essential feature of NetSuite is its unified nature, enabling seamless scalability and integration of additional functionalities such as inventory management, human resources, customer relationship management (CRM), e-commerce, and more into your account.
A superb comprehensive solution tailored for large corporations Efficient management of global business operations Handling of inventory, warehouses, orders, and supply chains Capabilities for budgeting, project planning, and cash flow prediction Advanced, adaptable financial reporting functionality Highly costly because of the initial setup expenses and licensing fees An extensive array of features and capabilities
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FreshBooks stands as a robust cloud-based accounting solution, equipped with an extensive array of features and functionalities essential for managing all financial aspects of your business. With FreshBooks, you can swiftly generate professional invoices, tailor them with your company's branding elements, offer clients various payment options, and prompt timely payments with automated reminders. The platform simplifies expense tracking by allowing you to capture receipt photos, forward receipts from emails, and directly import expenses from your bank account.
Moreover, FreshBooks provides valuable insights into your financial status with features such as the chart of accounts, profit and loss statements, balance sheets, and sales tax summaries. Beyond accounting tasks, FreshBooks aids in project time tracking, facilitates client and collaborator communication, enables seamless file sharing and project updates, and offers insights into project profitability. To enhance accessibility, FreshBooks offers an intuitive mobile app, empowering you to manage your business finances conveniently from any location.
Tailored invoicing featuring automated payment reminders Advanced dashboards and double-entry accounting Automatic capture of bill and receipt data Incorporated project management tools with time tracking functionality Absence of inventory management User limitations across all plans
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Sage 50 Accounting is a straightforward cloud-based accounting solution engineered to streamline administrative tasks and furnish real-time insights for informed business decisions. The application encompasses fundamental accounting functions such as invoicing, payment processing, and expense tracking, empowering users with comprehensive oversight of cash flow and project expenditures. Through its dashboard, users can monitor cash flow movements, conduct budget planning and cost estimation through scenario analysis, and gain insights into outstanding receivables and payables effortlessly.
Additionally, the platform facilitates inventory tracking, allowing users to monitor stock levels, view quantities on hand, and expedite the creation and submission of purchase orders. While its inventory management features may not be as robust as those found in Xero or Zoho Books, Sage 50 Accounting offers effective functionality to meet user needs.
Extremely user-friendly Provides complete oversight of cash flow Enables tracking of job expenses and identification of profitable projects Offers numerous customizable report templates Costly Updates and maintenance The user interface is highly antiquated
Comparing the best cloud accounting software
| Accounting software | Best for | Standout features | Payroll | Customer portal | Mobile app |
| Xero | Multi-currency accounting | - Automated calculation of sales tax - Accounting for multiple currencies - Management of fixed assets |
✅ | ❌ | ✅ |
| Zoho Books | Retailers and online retail enterprises | - Sophisticated automation features - Portals for customers and vendors - Tools for project management and tracking time |
❌ | ✅ | ✅ |
| Oracle NetSuite | Large businesses overseeing numerous facilities | - Sophisticated automation capabilities - Portals for customers and vendors - Tools for project management and tracking time |
❌ | ✅ | ✅ |
| FreshBooks | Financial management, time monitoring, and project oversight | - Time monitoring - Personnel supervision - Project oversight |
✅ | ❌ | ✅ |
| Sage 50 Accounting | Management of cash flow, project oversight, and budget management | - Oversight of cash flow - Sophisticated project planning and budgeting - Management of inventory |
✅ | ❌ | ✅ |
Conclusion - Optimal cloud accounting software choice
For the majority of businesses, FreshBooks emerges as the premier cloud accounting software available. Its simplicity in setup and operation, coupled with its ability to swiftly generate customized, professional invoices, streamline expense tracking and payment processing, and provide vital insights into financial performance, make it the top contender.
Moreover, FreshBooks incorporates project and team management features, enabling easy tracking of billable hours, facilitating client interaction and collaboration, and facilitating payroll management for your team.
The only aspect where FreshBooks falls short is inventory management. Therefore, if your business involves the sale of physical goods, alternatives such as Zoho Books or Xero may be more suitable. However, for businesses focusing on digital services, FreshBooks proves to be the ideal choice.
Take advantage of FreshBooks' risk-free 30-day trial period and experience firsthand whether it meets the requirements of your business as a cloud accounting solution.
How we evaluate accounting software?
Here are the primary criteria we focus on when assessing and reviewing accounting software:
- Pricing - Examination of available pricing plans, discounts, free options, and trial periods, as well as assessing the platform's overall value for cost.
- Features - Evaluation of core accounting features and functionalities, along with consideration of available paid add-ons.
- Integrations - Analysis of built-in connections with third-party software and the availability of APIs (Application Programming Interfaces) for custom integration development.
- Automation - Assessment of automated processes such as data entry, tax calculations, and payment reminders to streamline operations and save time.
- Usability - Evaluation of the platform's overall complexity, user interface (UI), navigation ease, and the time and technical expertise required for day-to-day usage.
- User reviews - Consideration of feedback from users on reputable review platforms, with particular attention to commonly cited advantages and disadvantages of the software.
How to select the ideal cloud accounting software?
If you're still uncertain about which of the seven tools discussed in this guide suits your business best, here are some crucial factors to consider that can guide you in making the correct decision:
- Budget - Evaluate the amount you're comfortable allocating towards an accounting software solution on a monthly or annual basis. It's essential to ensure that the pricing plan you choose provides access to all necessary functionalities within your budget constraints.
- Ease of use - Assess the technical proficiency of your team members who will be utilizing the software. Opting for an application that is straightforward to implement and does not necessitate extensive training for proper utilization is ideal.
- Compatibility - Review all available integrations to confirm that the accounting platform can seamlessly integrate with your existing software stack. Additionally, consider whether the accounting software offers a mobile application if managing finances on the go is part of your plan.
- Key features - Thoroughly examine all available subscription tiers and select the one that offers essential features and functionalities required for your operations. Pay close attention to any limitations, extra fees, and potential need for additional paid add-ons.
- Scalability - Factor in the cost associated with scaling the product, particularly if there are restrictions on the number of users permitted on your account.
- Customer support - Take note of the available communication channels for reaching customer support and their operational hours. Additionally, consider feedback from other users regarding the average response time and overall quality of the app's customer support.
