You are not blamed if you are an entrepreneur who is not excited about preparing taxes. From the pressure to get everything right to learning new laws, managing the tax preparation process can be a hassle. Fortunately, we live in a time where bookkeeping, accounting, and tax prep can be made uncomplicated through online bookkeeping tools.
Bookkeeping is necessary. You cannot successfully run your business without this technique. Nevertheless, it doesn’t have to be an overwhelming process, especially when it comes to tax time.
We are all about helping entrepreneurs, and business owners make finances a lot more straightforward and stress-free. As a result, we are excited to share some online bookkeeping tools that can more efficiently help you prepare your taxes.
Sage Accounting – A Cloud-Based Online Bookkeeping Option
If you an entrepreneur who is not looking to break the bank when it comes to purchasing online bookkeeping services, but could use some help in tracking expenses, then Sage Accounting is worth a look. For ten dollars a month, your business can easily manage cash flow. For an additional $15 a month, you can use a cloud-based solution that allows for invoicing, accrual entries, and cash flow management. Sage Accounting is also a good option for outsourcing your accounting and bookkeeping activities as the program allows multiple users to collaborate through the tool’s cloud-based and project management features.
Expensify – Tracking Receipts on the Go
Who really likes tracking expenses? We would venture to say no one. Nevertheless, they are critical to ensuring you track your business costs and potential deductions for tax season. For up to nine dollars per person per month (for groups), Expensify allows you to scan receipts with one-click, flag any suspicious expenses, sync with other accounting systems, or reimburse employees within 24 hours. The tool even comes with an app that makes tracking purchases—including mileage—a much easier process.
FreshBooks – A Low Cost All-in-One Bookkeeping Option
If you need an all-in-one online bookkeeping tool to handle everything from time tracking to payment estimation. These features make Freshbooks a viable option. Depending on the number of clients your company has, you could be paying under $30 a month for full-scale online bookkeeping and accounting services.
In addition to tracking expenses, you and your team can easily track billable time and seamlessly invoice clients based on that time. Also, much like Sage Accounting, Freshbooks gives you the option to set up bookkeeping and accounting-based projects. This scenario allows team members to work together and communicate in real-time. This type of arrangement comes in handy during the chaotic months of tax season.
Wave Accounting – A Free Online Bookkeeping Solution
If you are looking for a free online bookkeeping tool, then Wave is one of the best choices around. If you are a team of nine or less, you can take advantage of Wave’s automatic bank connections, email invoicing, budgeting tools, expense tracking, and financial reports. Also, Wave makes it easy for a bookkeeper or accountant to go in and prepare your records for taxes. For five dollars per employee per month, you can also access Wave’s payroll features which will make distributing those W-9s for tax time much less of a pain.
Xero – Integration with Over 800 Business Apps
We couldn’t mention online bookkeeping tools and accounting without including Xero. This one has become well-known to small business owners due to Xero’s ability to integrate with over 800 business apps. One problem with bookkeeping today has been keeping up with the full range of ways individuals can pay invoices. How do you track payments made by a variety of other emerging platforms?
Xero has made this process seamless by allowing users to automatically import bank statements, credit cards, and PayPal information. If you have a lot of foreign clients, Xero’s Established plan can also support the exchange of 160 currencies. The last thing you want to do during tax time is to account for exchange rates manually. Xero is an online bookkeeping tool that takes the complexity out of both of these processes. Entrepreneurs can expect to spend between $6.75 and $45 depending on the number of invoices they want to send.
Harvest – Taking Time Tracking and Estimates to The Next Level
If you have ever wanted to effectively combine your time management, time tracking, and budget forecasting, then Harvest is worth your research. While it is known for its time tracking and automatic invoicing, Harvest has some other tricks up its sleeves, when it comes to efficient online bookkeeping.
In addition to allowing all contractors or employees to track time and invoice clients for it, you can also create better budget estimates for future projects. This process will enable you to more easily quote costs for clients, and better plan for the year ahead—a skill that is critical for bookkeeping and accounting. For pricing, the platform has tiers ranging from $10 per month for one user to $90 for unlimited users.
Bench.co – Find an Excellent Online Bookkeeper
All of the online bookkeeping tools we have mentioned so far put you in the driver’s seat. You either have to use the tools to manage your business finances or figure out how to delegate the features to someone on your team. Now, don’t get us wrong. We are all for learning about bookkeeping and how it can bring ease to tax prep. However, we also understand that you are an entrepreneur who may not have the time to learn this yourself. This reason is why Bench is a standout on this list. Bench takes care of the entire bookkeeping process for you by:
- Introducing you to a professional bookkeeper who:
- Takes the time to get to know your business structure and finances.
- Manages your books each month.
- Tracks your business health with financial reporting.
- Can either send you all the information you need to file for tax time or handles it themselves using BenchTax.
Instead of having to manage your business finances and expenses, Bench provides you with a dedicated bookkeeper. This person can take financially administrative tasks off of your hands. For you, that means no learning curve and no stress.
We think Bench is an excellent online bookkeeping tool for most entrepreneurs and small business owners as it takes the entire bookkeeping process off of your hands. It can also be a great way to give any lean in-house bookkeeping and accounting teams some additional support.
Investing in Online Bookkeeping Tools Can Save Time and Prevent Burnout During Tax Time
February and March do not have to be the scene of chaos. It can be a time where you have all the documentation you need to prepare for tax season adequately. The online bookkeeping tools mentioned above can put you on the path to getting your taxes done, and feeling confident that everything is accurate. Whether you want to try your hand at bookkeeping with Wave or having an experienced bookkeeping professional handle the entire process with Bench, the options above can help you prepare taxes the easy way.