As the world becomes more digital, so does how we handle our finances. In the past, bookkeeping involved pages of handwritten ledgers and hours spent balancing the books. But with the rise of digital bookkeeping, this tedious task has been transformed into a refined process.
Now, with digital bookkeeping software, you can easily access your financial records and make changes on the fly.
To give you a better insight, today we will discuss what digital bookkeeping is, the best digital bookkeeping software, and its benefits.
What is Digital Bookkeeping?
Digital bookkeeping is the process of using software to record and manage financial transactions. It is a more efficient and accurate way to keep track of your finances than traditional paper-based bookkeeping. Digital bookkeeping involves storing your accounting records online on a local server or in the cloud. It offers numerous advantages over paper-based systems, including enhanced data connectivity and efficient payment processes.
Benefits of Digital Bookkeeping
With digital bookkeeping, you can quickly review, analyze and produce accurate reports in real-time. This can be especially helpful for businesses needing quick financial data decisions. But there are other advantages of this modern bookkeeping system.
Increased Efficiency
By automating many bookkeeping tasks, digital bookkeeping can save time and reduce errors. This can free up staff to focus on other important tasks and make the business more productive.
Improved collaboration
When you use digital bookkeeping, it can centralize the flow of documents and information for your company. It allows employees to work together and manage collaboration efficiently.
Save Money
Switching to digital bookkeeping can save businesses a lot of money. You will need less physical storage space, printing, and postage, which can significantly cut expenses. Plus, it can reduce the staff time required for bookkeeping tasks, leading to even more cost savings.
Easier planning
Digital bookkeeping provides a better overview of the company\’s accounts, making analyzing and identifying trends easier. With the help of this information, you can better understand your company’s financial standing and take the necessary steps to improve it.
5 Best Digital Bookkeeping Software
Did you know that 67% of accountants prefer cloud-hosted accounting solutions over traditional on-premise software? This is because cloud-based solutions offer several benefits that make accounting tasks more accessible and efficient. Here, we recommend 5 Best Digital Bookkeeping Software in 2023.
1. QuickBooks Online
QuickBooks Online is a comprehensive bookkeeping software that is suitable for businesses of all sizes. For small businesses looking for widely-used accounting software, QuickBooks Online is a great option. It offers features such as financial statements and business report generation. As a user, you will get support uploading 1000 transaction lines for invoices simultaneously.
2. Xero
Xero is popular bookkeeping software that is known for its user-friendly interface and robust features. It is especially well-suited for small businesses and freelancers. Small business owners have praised Xero accounting software, with thousands of positive reviews on Capterra. 96% of users have complimented Xero’s user interface, and 95% have found it easy to use. As a result, Xero was recognized as a “Top Performer” for 2021.
3. FreshBooks Accounting
FreshBooks Accounting is a cloud-based best Digital Bookkeeping Software that is designed for small businesses and freelancers. If your business prioritizes invoicing as a significant part of your bookkeeping, FreshBooks Accounting Software is an ideal choice. It allows you to create and send invoices and track time and expenses while accepting online payments.
4. NetSuite
Oracle NetSuite Accounting Software is a perfect solution for businesses with complex accounting and ERP needs. With advanced features, you can manage orders, track inventories and get support for the multi-currency.
5. Zoho Books
Designed for micro businesses, Zoho Books Accounting Software is a cloud-based solution that offers invoice, expense tracking, and automated payment reminders. They have introduced a mobile app for iOS and Android, making it easy to manage finances.
Guideline to Choose Best Digital Bookkeeping Software
When choosing digital bookkeeping software, it is important to consider the following factors:
- Features: What features are important to you? Do you need a software that offers invoicing, expense tracking, financial reporting, payroll, and other features?
- Ease of use: How easy is the software to use? Are you comfortable using accounting software?
- Price: How much are you willing to spend on digital bookkeeping software? Some software is free, while others require a monthly or annual subscription fee.
- Integrations: Does the software integrate with other software that you use, such as your CRM or project management software?
If you are not sure which digital bookkeeping software is right for you, there are a few things you can do:
- Read reviews of different software to see what other users have to say.
- Compare the features and pricing of different software.
- Sign up for a free trial of a few different software programs to see which one you like best.
FAQ on Best Digital Bookkeeping Software
What software do bookkeepers use in the UK?
QuickBooks is one of the most popular Bookkeeping Software in the world and is widely used in the UK.
Which is best QuickBooks or Xero UK?
QuickBooks is also better for businesses that need to track inventory
What Software Or Tools Do I Need To Start Digital Bookkeeping?
Several software and tools are available for digital bookkeeping, such as QuickBooks, Xero, Wave, FreshBooks, and Zoho Books. You can choose the one that best suits your business needs and budget.
How Can I Ensure The Security Of My Financial Data When Using Digital Bookkeeping?
We advise you to use secure passwords and two-factor authentication and avoid public Wi-Fi networks. You can regularly back up your data and use antivirus software and firewalls. You should also choose a reputable software provider that complies with data privacy laws.
How Often Should I Update My Digital Bookkeeping Records?
We suggest you update your digital bookkeeping records regularly, such as daily, weekly, or monthly, depending on your business’s size and complexity.
Can I Access My Digital Bookkeeping Records From Anywhere?
You can access your digital bookkeeping records from anywhere with an internet connection. Most software providers offer cloud-based solutions, allowing you to securely access your documents from any device.
What Are Some Common Mistakes To Avoid When Using Digital Bookkeeping?
Some common mistakes to avoid when using digital bookkeeping include forgetting to reconcile your bank accounts, entering incorrect data, and not backing up your data regularly. We suggest you stay vigilant and follow best practices to avoid mistakes.
Conclusion
Our discussion about best Best Digital Bookkeeping Software has provided valuable insights into digital bookkeeping software and how it can benefit you.
At ABM, we’ve been helping our clients with bookkeeping using QuickBooks Online for quite some time now. It’s a popular software among UK businesses for its advanced features.
Just like Xero, it specifically caters to the need of small and medium-sized enterprises. With QuickBooks, you can track your business mileage automatically through their mobile app, just like Xero. So, if you’re hunting for a reliable bookkeeping solution, give QuickBooks Online a try with the help of our professional team at ABM.