Accounting is the process of recording, tracking, reporting, and analyzing financial transactions. It involves hours of tedious work, is costly, and has no tolerance for human error. Modern businesses are complex and require simplified solutions, like effective accounting management tools.
Accounting Management Tools automate workflow, reduce manual intervention, and provide comprehensive data for business owners to make decisions. If you want to understand practice management software, this is the best guide.
TL;DR - 10 Essential Accounting Management Tools
If you are pressed for time and looking for the best accounting management, here are must-haves on your list.
- Cone
- Canopy
- Financial Cents
- Taxdome
- Jetpack Workflow
- Pixie
- Senta
- BrightManger
- OfficeTool
- Onvio
Looking for the best accounting management tool? Well, Cone is a must-have without any doubt. Sign Up and start your journey to easier workdays with Cone.
Key Features To Look For In Accounting Management Tools
User-Friendly Interface For Efficient Navigation:
With new tech, it becomes essential to train the employees to use it. SOPs’ should be in place that can help all the stakeholders to navigate through the tool. Also, the interface should be simple and understood by all and sundry.
Client Collaboration Capabilities:
For a small business, engaging with clients right from the planning to the execution stage is effective in retaining the client for a long time. And for that, collaboration with the client at every step of the process is necessary. Maintaining client databases, securely sharing information with ease, engaging, sending tasks to clients, activity timelines, and smooth payment process, all become the key components for smooth coordination between the business and the client.
Automation Features:
An accounting management tool should be able to automate common, time-consuming tasks. Automation is the most essential feature of an accounting management tool.
Comprehensive Reporting for informed decision making:
For managers and business owners to make informed decisions, financial management software is necessary. It should provide a detailed review of the situation at hand, inclusion of all relevant information, leaving no room for ambiguity.
A financial statement allows business owners and stakeholders to assess the company's financial health and make future-oriented strategic decisions.
Integration Capabilities With Other Tools And Platforms:
A tech stack should allow different tools to communicate and exchange data with one another. In addition, it is necessary to reduce the time and effort needed to track and analyze that data. When data is centrally located, it can be accessed for analysis by any stakeholder and fosters collaboration.
Robust Security Measures To Protect Financial Data:
Data security is essential for the financials of a company because a large amount of financial data is being handled by the accounting management tool. The tool should have an effective and safe storage system, additional layers of security, and experience in authentication. The tool should also be equipped with all the latest security measures to avert any cyberattacks, manipulation, or stealing of data.
Making Business Compliant:
In the ever-changing laws and regulations of the government, keeping in touch with the latest changes in regulatory compliance is essential. Maintaining compliance with financial reporting standards, tax regulations, and other industry-specific requirements is crucial for all businesses. And that’s when accounting management tools play a role in helping businesses achieve and maintain compliance and navigate the ever-changing regulatory environment. And since we are discussing compliances, why don’t you refer to a guide that would help you track your GST return status.
Why Should You Use an Accounting Management Tool?
Time-Saving:
Time is money. And these accounting management tools serve as a boon for accounting firms to save time and concentrate on other crucial tasks.
Cost Saving:
Though investing in accounting management tools is a one-time expense and is a huge expense, no doubt, however, it helps in saving additional employee costs, like finance or accounting professionals, outsourcing tax returns costs, etc. Thus, these accounting management tools help in better financial decision-making.
Data Security:
Financial data is the Bible of any company. Access to this data has to be within the authorised limits only. These accounting management tools are equipped with superb security options that ensure confidentiality and eliminate breaches of data.
Integration:
To run smoothly, accounting has to be dependent on other functions of the company, even though it is an independent activity. The accounting management tools provide a unified experience between the company's various functions and software.
Customer Satisfaction:
For any small business, customer satisfaction is the key to sustenance. Accounting management tools eliminate human delays and errors and ensure timely payments, periodic reconciliations, and in turn, happy customers.
Better Communication:
Team members can share information far more easily through a centralised system. There is more accountability throughout all operations, thus, leading to smooth communication between team members.
Workload analysis:
These tools also provide services where the tasks can be easily delegated to each stakeholder. It breaks down the tasks and client work according to the preferences and leads to transparency between both the client and the executives handling the tasks.
Higher Profit:
At the end of the day, for any business, profit is the end goal. With better decisions, comes more profits and more scope to scale the business.
7 Essential Accounting Management Tools
Cone:
Cone is an all-in-one platform for CRM, proposals, projects, workflows, billing, invoicing, email management, and more.
Top Features
- Proposals and Engagement Letters
- Workflow Automation
- Integrated Email
- Time Tracking
- Client Records Management
- Billing and Invoicing
- Reporting and Analytics
- Document Management
- Communication Tools
- Task Management
Pros
- No separate Proposal software
- Save up to 90% on software costs
· Free migration from one software to another
Cons
- More savings for the company with a larger team.
Best For
- Freelancers
- Small Businesses
Pricing
- $10 per user/month
Canopy:
Canopy is an end-to-end platform that lets the user choose the components that the firm needs and integrates seamlessly with other software solutions.
Top Features
- Track Team’s daily progress
- Establishes a central hub of documentation for the firm with organized, custom folder structures
- CRM
- Client Portal
Pros
- Pre-built reports on firm efficiency, revenue, and billing
- Wonderful tool for compliance regulations
Cons
- Expensive and no standard pricing.
- Long procedure to accomplish a task.
Best for
- Freelancers
- Small Businesses
- Mid Size Business
- Large Enterprises
Pricing
- $50 per user/month
Financial Cents:
Financial Cents is an accounting management software for freelancers and small businesses. It is designed to help bookkeeping and accounting firms automate data collection processes, handle projects, collaborate with staff members, and manage tasks on a centralized platform.
Top Features
- Automate Recurring Projects
- Client Requests and Auto Reminders
- Workflow Management
- Time and Expense Tracking
Pros
- Superb tool for small businesses looking for entry-level accounting management tool
- Affordable Pricing
Cons
- Limited app integrations
- Limited reports for analysis
- No monthly plan, fee to be paid upfront for a year
Best For
- Freelancers
- Small Business
Pricing
- $50 per user/month, however billed annually
Taxdome:
Taxdome is an all-in-one platform for accounting, tax, and bookkeeping firms. It is customizable for all firm sizes and types, be it sole practitioners, mid-size and large firms, or enterprises.
Top Features
- Secure Data Storage
- Electronic Payments
- Workflow Management
- Approval Workflow
Pros
- Value for money and easy to use
- Affordable Pricing
Cons
- No monthly plan, fee to be paid upfront for a year
Best for
- Freelancers
- Small Businesses
- Mid Size Business
- Large Enterprises
Pricing
- $50 per user/month
Jetpack Workflow:
Jetpack Workflow is not a practice management solution, but workflow management. It is a cloud-based workflow management tool that helps firms standardize, track, and automate their processes so they can complete more work and prevent tasks from falling through the cracks.
Top Features
- Job and task management
- Basic Workflow automation
- Job templates and template library
- Time tracking and budgets
Pros
- Easy to use
- Excellent customer service
Cons
- Limited automation
- No client portal and billing and invoicing feature
Best for
- Freelancers
- Small Businesses
- Mid Size Business
Pricing
- $45 per user/month
Pixie:
Pixie is a practice management software that helps get accounting or bookkeeping firm running like clockwork. Its powerful workflow automation means the team will spend less time doing manual admin. Its flexible CRM allows the user to centralise client details alongside the email and document timeline.
Top Features
- Workflow management
- Customisable Templates
- Task Management
Pros
- Easy to use and setup
Cons
- Limited automation
- Limited email functionality
Best for
- Small Businesses
Pricing
- $129/month
Senta:
Senta is a practice management tool that is predominantly for UK firms. It has the usual features of an accounting management tool like CRM, Workflow management, Document management, Client portal, Time tracking, and Basic service templates.
Top Features
- Workflow management
- CRM
- Time Tracking
Pros
- Comprehensive client portal
- Unlimited document storage
Cons
- Very UK Focused
Best for
- UK Firms
Pricing
- £28/user/month
There are many alternatives to Senta, it’s worth checking them out.
What Are The Common Challenges Faced By These Essential Accounting Management Tools?
Upskilling:
Upskilling the current workforce is a big challenge to navigate through the accounting management tool. At this juncture, each management tool must have detailed SOPs’ drawn for smooth transition and usage by the current stakeholders of the company.
Cyber Security:
Even though these tools come up with extensive data security protocols, the business stakeholders need to ensure that all security protocols are updated and upgraded as per industry standards.
Customer Service:
A lot of these accounting management tools do not have efficient customer service desks. This leads to a challenge for a new business, especially while adopting the tool.
Frequently Asked Questions:
What Makes Cloud-Based Accounting Tools Preferable?
- Easily accessible
- Shareable by many stakeholders
- Large data can be stored
- Reduces IT burden
- More affordable
How Often Should I Update My Accounting Management Tool?
Ideally, we won’t recommend changing your accounting management tool, unless the following conditions:
- Business is booming and the current accounting software isn’t compatible
- Outdated systems
- Data breach and less secure
- More complaints from customers
- Frequent changes in the software without adequate training and prior intimation
- Inadequate reporting
Can Multiple Accounting Tools Be Used Simultaneously?
Multiple Accounting Software can be used as businesses grow. Relying on only 1 system leads to over-dependency and could lead to potential cyber-attacks. Also, the usage of only 1 software leads to increased complications with tracking and reporting finances and maintaining separation between the businesses.
How Do Accounting Tools Improve Financial Decision-Making?
Accounting tools provide detailed financial reports like cash flow statements, balance sheets, and income statements. These statements help the stakeholders to make informed decisions and increase their profitability. They save time by outsourcing the collection and reporting of the data to the tool. The tool also helps in drawing comparative analyses between various periods. Also, the reports are quite accurate which leaves minimum room for error that also gives confidence to the business owners to make their forecasts as per the data.
Cone - Best Accounting Management Tool
Accounting Management tool is a modern-day Bible that just cannot be ignored. Gone are the days when huge books would be used to record data.
Modern and more globalized businesses require more advanced accounting systems. The zillion of benefits provided by these tools make them hard to ignore and therefore, it is an urgent need of the hour.
Invest in Cone to elevate your practice with an all-in-one platform for CRM, proposals, projects, workflows, billing, invoicing, email management, and more at a fraction of the cost compared to alternatives. Get the most out of Cone and make your business thrive.