Six Online Accounting Software Types for Your Booming E-Commerce Business

Posted by Atul Sharma on March 12th, 2019

Are you still using the old-fashioned pen and paper for your accounting needs? You have been living under a rock if your answer is 'yes'. By providing accelerated tax preparation at a minimal risk of human error, new-age online accounting software systems have rendered the traditional offline method completely redundant. 

Statistics show that a lot of Indian startups shut shop within their first year due to poor financial management.  applied in a business setting, online accounting software eliminates roadblocks such as non-compliance with legal and internal standards and erroneous audit information. As a result, you’re able to make more profitable business decisions than ever before since you have a real-time understanding of your financial state.

Online Accounting Software Types

Depending on the kind of operations, online accounting software systems typically fall under six categories: If you’re running a side hustle single-handedly which involves few entries per month, you can choose from these personal software systems: Mint, Yodlee, and Buxfer. The drawback of this software is that you can’t use it to enter credits and debits in a ledger.

 
If you need help in tracking, approving, and paying the expenses of a company consisting of 1-10 employees, you can invest in one of these easy-to-use expense software systems: Expensify, Certify, and Receipt Bank. These should be your go-to software if you need a comprehensive graphical report on how time is being utilized in your company.

The major difference between expense software and invoicing software is that the latter is more expansive and can handle both, expenses and invoicing. The are many examples of invoicing software system. If you’re facing trouble in tracking your client’s time and expenses, it is time that you switched to this software.

 
If you’re looking to manage the inventory and cut expenses for a company size of five, you can switch to micro business accounting software systems. The drawback of this software is that it doesn’t cater to a business’s specialized needs, like re-billing expenses.

Small business accounting software systems are designed for a company size ranging from 5 to 25 employees, keeping in mind the day-to-day tasks like payment processing, inventory management, and control, and payroll to name a few. You can choose from a variety of systems like myBooks, QuickBooks Online, Xero, Kashflow, Gem Accounts, WorkingPoint, and Reckon One.

 
Enterprise software systems come in handy for business owners running a company comprising over fifty employees. This super-efficient software combines all the systems used for finance, HR, accounting, and distribution. This is not the kind of software you can pick up from the word go. You require intensive training to be able to use it.

Perks of Business Accounting Software

The greatest achievement of business accounting software is enabling you to grasp a better understanding of your business by determining which units are overstocked, generating sales forecasts for the next quarter, and pinpointing your least profitable venture. Clearly, the present and the future of accounting is online.