The ideal accounting software should be cheap, flexible, and scalable. Additionally, the software should serve your business for at least seven years to minimize the disruptions that arise when changing a system. But even after these considerations, finding one-fits-all accounting software may prove impossible. The best approach to choosing accounting software is, thus, reviewing what different systems excel in.

Popular Accounting Software Used by CPAs

Today, elements such as SaaS enable businesses to implement sound accounting systems without a heavy capital outlay. But this does not make overbuying accounting software a good practice. However, other factors such as ease of use and add-ons required take preference over the system’s cost.

In light of the statements above, here is a list of software that accounting firms use that your small business would find useful.

QuickBooks

QuickBooks ranks among the most popular accounting software of all time. While it has multiple add-ons, small businesses can use it right-out-of-box for general financial processes, from expenses tacking to preparing financial statements. For greater flexibility, you may use QuickBooks Online, which is a cloud-based system.

FreshBooks

If your small business is service-based, it may benefit from the invoicing capabilities of FreshBooks. The user-friendly software is cloud-based, which increases its flexibility. However, it lacks features to enable payroll and inventory management services.

SageOne

SageOne proves a worthy candidate when it comes to addressing the accounting needs of a small business. It is also ideal if you venture into project management. However, its user-friendliness ranks a little bit lower compared to its competitors.

Xero

If you are in search of accounting software that can scale with your business at almost no cost, you might find Xero worth exploring. All its plans allow unlimited users. Further, this system scores high on user-friendliness and payroll services. However, it has extra charges for project management and expense tracking.

Wave

Wave provides features such as expense tracking, invoicing, and multi-currency support free of cost. Indisputably, it is the system of choice for your businesses if you are operating on a shoestring budget. Additionally, Wave would also be your go-to option if your business involves micro-verticalization. Its downside is that it supports few third-party apps.

Other accounting software CPAs use when serving small businesses include:

• Accounting Power
• Adagio
• BillQuick
• Gravity
• NetClient CS with ACS and Client Access

Your Choice of Accounting Software Matters

Accounting systems are more than mere compliance tools. They bring order, efficiency, and inform financial decisions implemented by companies. While it is a good idea to look at the software that CPAs use, beware of your changing business needs as they determine the accounting software to use more than anything else.

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Accounting Duties and Automation

There are many people who appreciate automated accounting software. The aim behind this type of software is to assist professionals who wish to handle their positions easily and confidently. Handling accounting duties can often be cumbersome and time-consuming. It can in many cases force people to have to do the same exact intricate things over and over again. Many people argue in favor of automation in accounting because they believe that the whole concept can open professionals up to being able to concentrate on other things that may be a lot more relevant to their fields and industries. If an employee or small business head doesn’t have to think about payment matters, then he or she can continue zeroing in on other projects that may be more relevant and pressing in the grand scheme of things.

There are specific technological concepts that influence accountants and all of their duties as time goes on. Many accountants have significant concerns that relate to blockchain technology and any and all things that involve cryptocurrencies. Blockchain technology is making waves in fields of all sorts as well. It’s making waves in real estate, finance, medical care, insurance and the government. People rely on it for the handling of supply chain duties, too.

Accountants in many cases wonder about big data analytics. These analytics revolve around data that can showcase concealed activities that can help people have revelations of all sorts.

Artificial intelligence or “AI” is yet another pathway that keeps some accountants up at night. This is a form of intelligence that enables machines to take care of responsibilities that used to call for the brains of humans. AI can be beneficial for many things that involve translation, speech recognition and more. AI can be a helpful device in the accounting software realm. That’s because it can empower this software to instantly assess all sorts of pertinent components. AI may be a big deal for people who regularly have to tackle the ins and outs of putting invoices into their own classifications.

The reality is that technological advancements most likely won’t make CPAs obsolete. They will, however, influence the things that these professionals do. CPAs may have to grow alongside technology. Their job responsibilities however are never going to be stagnant.

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Fortunately, since most people have a phone on them at all times, there’s a handful of apps that are fast and easy to help you keep track, so signing a check or receipt and using the app becomes instinctual.

The following are some of the most useful apps for your annual tax return.

1. ItsDeductible 

ItsDeductible is a charity donation tracker, helping you keep track of donations and gifts for all your philanthropy. It’s only available for Apple products (iPhones/iPads), but it keeps track of your dates, charitable companies, and amount in a simple itemized interface, so you can keep track of your donations year-round.

The app is published by Intuit (i.e. TurboTax), so it’s reputable, but best of all, it’s free — so you don’t need to settle for TurboTax to use the service. As of this updated post, it has over 13.1k ratings at 4.8 stars.

2. IRS2Go

IRS2Go is a product of none other than the IRS. It is as secure as it is private. With this app, you’re able to view the status of refund, pay it (right from the app), find tax preparers nearby, or file with the app for free — if your income is $66,000 or less.

The IRS2Go app is available on the iTunes store and Google Play, so it works for most devices and it is free.

3. Expensify

Chances are you’re already familiar with Expensify if you run your own company or have to travel, eat out, or buy supplies for your existing company. Regardless, of your experience, getting on board with Expensify is a must — and no we’re not paid to say so.

With Expensify, you can screenshot receipts and the app will pull the necessary information, so you can quickly catalogue your business trip or business supply expenses and send it to the people in your organization for quick reimbursement or to your accountant at the end of the year.

Expensify is the perfect blend of convenience and accuracy. Expensify is available on iTunes and the Google Play store. Additionally, much like the others on this list, Expensify is free.

4. MileIQ

MileIQ is your classic, “it does one thing, very well.” MileIQ tracks your mileage automatically, so if you’re self-employed or receiving a 1099, it’ll automatically run in the background and keep track of your miles as well as what each drive is worth to you.

The best part is, after entering your business schedule (usual routes, working hours, etc.), MileIQ will automatically track your miles so you don’t need to think about it.

The app is available for free on Google Play and the App Store but there are some upgraded options.

5. NerdWallet

Say what you will about the brand name, but NerdWallet does budgeting and financial planning right. NerdWallet links to your credit cards and bank accounts so you know where your money is going at all times. Moreover, it provides useful tips for you to consider, such as when you’re spending more than in previous months (or less), what your net income is, and what category of purchases is costing you the most. In short, it doesn’t simply help you see your finances at a glance, but it helps you plan and prepare so that when you ask yourself, “Am I doing ok?” You know the answer already.

NerdWallet is available on iOS and Android devices.

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Straight forward type – Use TurboTax

For the most part, people who are just starting their professional careers do not have investments or assets they need to include in their taxes, or — if they do — they are often still low enough to not cause too much difficulty. TurboTax is great with those, they have some options for the average tax deductions and assets, and can easily collect and compile your data. The software is designed specifically to handle the average, and it does what it is designed to do very well.

However, when things start to get complicated… that’s when it’s time to consider a Certified Public Accountant (CPA). What’s complicated, you might ask? Inheriting stocks, IRAs or a house; buying a house or an income property; taking up contract work in addition to full-time income; going through multiple jobs in a single year; becoming an ex patriot or providing services/products nationwide to name a few.

Complicated? Use a CPA

Many people may turn away from a CPA because, let’s face it, needing an accountant sounds like something you could do yourself (or with TurboTax), but this isn’t the case. Most CPAs are affordable, and they are well worth the cost. Plus, by the time you reach the level of complication that warrants a CPA, the premium features of TurboTax probably cost about the same, the difference is the person vs a software program. A person can understand and cater to your specific situation. A computer program cannot.

CPAs have experience in a field that confuses many. While a software program can collect data, compile it, and make a decision based off an algorithm, a CPA collects, compiles, and makes decisions based on the customer, the economy, the law, and what opportunities present themselves as best for a potential customer. Plus, with experience comes expertise especially in niche situations.

A professional is also useful for the sheer amount of information they can provide. While TurboTax may have the little information button to help explain the options, a professional can explain and help you plan for what would be a better solution in years to come. A software system doesn’t provide advice for how best to manage your finances over the new year so that your next year tax return is solid. A professional, they can help you plan for what decisions, choices, or purchases you should make this year to minimize your amount owed to the tax man.

The conclusion of the old accountant vs TurboTax battle is this; if you have a question not easily answered with the standard services of the software program, get a certified public accountant instead. This includes the previously mentioned new business owners, investors, people planning for estates for their future generations, any life changes like marriage or divorce, stocks, or any large savings plans. A professional is always a better option when it comes to managing your money, and planning for your financial future.

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Here are our top five tax experts to follow on Twitter.

1. @IRStaxpros

You will be happy to know that the IRS is also here on social media. It makes sense to follow the latest news straight from those who know tax best. They always tweet out changes to the tax system as they happen.

2. @NATPTAX

The National Association of Tax Professionals is jammed full of articles and links to help you educate yourself on matters relating to tax.

3. @NSATax

The National Society of Accountants is a fantastic resource for accountants. Nevertheless, even the average person can understand the basics of good accounting and how to take into account their taxes. Remember that accountancy and taxes go hand-in-hand.

4. @taxfoundation

The Tax Foundation tweets out information relating to states and their taxes. This is a great little resource for finding out what’s going on in specific areas of the country.

5. @thetaxdude

Neil Johnson is a tax expert based in Chicago. He tweets on how to deal with tax and how best to manage your money. What better way to learn about taxes than to go to someone who helps clients from all backgrounds manage it every day.

Image credit: mkhmarketing

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Turbo Tax

Turbo Tax is one of the most well-known tax software programs. They have a variety of features available to ensure that regardless of how simple or complex your tax situation is they can handle it. They also stand behind the motto that they can get you the largest tax refund possible. The best part is when you file with Turbo Tax, you don’t have to stay up to date with the tax laws because they will ask you a few simple questions and automatically pull all of the deductions and credits that you are eligible for.

H & R Block

H & R Block is known for their physical locations; however, they have tax software available for those who prefer to file their own returns. With H & R Block, you can still come into an office if you are stuck doing your taxes yourself and their packages come with phone support and audit protection. Usually, you have to pay extra for filing your state returns, but the ability to come into an office for help if you get stuck makes up for that.

Closing Thoughts

If you plan to file your own taxes this year, it is recommended that you use either Turbo Tax or H & R Block’s software to do so. You can be confident knowing that their software’s are secure and that your personal information is not going to be going into the wrong hands. Additionally, if by chance you happen to be audited by the IRS, you can know that they have your back.

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