Which cloud accounting software is better – Wave or FreshBooks?
Let’s face it, bookkeeping can be tedious, yet it is an important skill that business owners need to master to be able to optimize their finances; particularly their accounts, cash flow, payroll, and paperwork.
Switching to cloud accounting can save you time and make you money. If you are thinking about using cloud accounting software but are unsure of what it is and how it will benefit your business, continue reading this article. Also, we are going to introduce you to two of the most popular accounting tools with a breakdown of their features and investigate which one is best for your business.
What is cloud accounting?
Typically, when a business gets to a point where they need formal record-keeping, either they hire an outside bookkeeper or an employee performs the bookkeeping.
But since technology has changed and almost everything can now be done electronically through the internet, accounting has changed as well.
Cloud accounting is the concept of using online accounting software so you can run your business, access reports, submit receipts and manage your bookkeeping tasks from your laptop, smartphone or tablet anytime, anywhere.
Here are five ways that cloud accounting will make your life easier;
- Because the software interacts with your bank, you will save time.
- The information is real-time, keeping you up to date with exactly what is happening in your business.
- Because the software is on a secure online platform, your data is backed up automatically. You’ll always have the most up-to-date version of the software.
- If your desktop gets destroyed in a natural disaster, or if you manage to spill coffee all over your laptop, no worries because your accounting software and data are safe in the cloud. You can access it anytime, anywhere on any device.
Wave or FreshBooks – Which is better?
Wave Accounting is free cloud-based accounting software that comes with a mobile app for a more convenient online transaction. It offers bank integration, which means that it will actually download your information directly from your bank into the software.
You can perform accounting, create reports, send invoices and scan receipts. If your business needs to process payments from customers or offer payroll for small employees, Wave does that too but both of these features come with a service fee.
The downside of Wave is that it is antiquated in its appearance so it’s harder to use. It’s also an ad-based platform so you can expect to see plenty of advertisements and slow page loads while you are using the software. A credit notes feature, time tracking and audit history are also missing from this software.
FreshBooks is an award-winning cloud accounting and invoicing software with a robust set of features for all types of businesses.
It offers a 30-day free trial for new users or you can choose affordable pricing plans starting from $15/month to $50/month to access more features and services.
Whether in the web or mobile app, it’s friendly and simple to use. The web app has a lot of getting started videos throughout, which are helpful and easy to follow.
It excels by allowing you to create clients and invoice them, provide tracking and payment, create projects, track time and build a team of employees.
In addition, when you send an email with a link to the invoice, what’s unique about FreshBooks is that it gives your business a customized URL. When your customer or client clicks the link, it takes them to a customer portal. Most software requires customers to create an account to access something like this, but with FreshBooks, that’s not necessary.
While Wave provides basic accounting features and it is free, it had some limitations and needs more improvement in terms of features, services, and speed.
It’s undeniable that FreshBooks has the most full-featured online invoicing and customer portal system that is so essential for small business owners.
Still, your final decision boils down to exactly what it is you need out of accounting software. To help you select easily, list your requirements and then choose the one that meets them.