What is the best accounting software for small business in Canada?

Are you struggling with various accounting activities from issuing invoices, tracking accounts payable, expense tracking and categorization, etc? If Yes! It's time to consider using accounting software to ease the burden. This blog highlights key considerations for evaluating and selecting the right accounting software for your small business in British Columbia. In Canada, small businesses are the main driving force of the economy, with 1,216,550 small businesses out of a total of 1,190,027 businesses accounting for 98% (canada.ca, 2022). This statistic alone highlights how competitive the market is for a small business, hence as a small business owner your time is better spent on running your business than doing accounting and with the right accounting software you can streamline the whole process.  

Does accounting software really help?

Accounting software can help simplify financial management by automating tasks like invoicing, expense tracking, and tax preparation. Software automation helps reduce errors and save time allowing for informed decision-making. Below is a list of essential features offered by most of the modern accounting software.

• Gain insights into overall financial performance
• Generate consolidated financial statements with ease
• Streamline bookkeeping by recording transactions efficiently
• Reduce outstanding accounts receivable
• Ensure compliance with tax regulations
• Boost staff productivity with automated processes

How to find the best accounting software

To choose the right (or best) accounting software for your business consider important factors like your business requirements, budget, and goals. You may consider features like integration with other tools, invoicing, and payroll management. Most modern accounting software has robust security features preventing data theft or leak ensuring your data is always safe and secure, however, it’s always wise to check security protocols, data encryption, and compliance with industry regulations to guarantee your sensitive information is fully protected. Another important factor small businesses must consider is scalability because as a business grows, its accounting needs will become more complex. It’s always advisable to choose software that can adapt to increased transactions, more users, and additional features that will save time and resources in the long run allowing for a smoother growth trajectory. Good accounting software can streamline processes for you, however, if you lack the expertise to manage accounting yourself, consider outsourcing accounting services by hiring an experienced accounting firm in British Columbia. Tip: Take advantage of free trials if available to test usability and functionality before making any commitments.  

3 Best Accounting Software

When it comes to choosing the best accounting software for your business it is crucial to perform proper research before choosing accounting software because migrating from one software to another can be quite challenging. Let’s look at the most popular accounting software used by small businesses in Canada.  

Xero

Xero was founded in 2006 in New Zealand and later in 2018, it was launched in Canada and since then it has been only rising in popularity. Xero features a user-friendly interface making navigation between multiple features easier allowing new people to work on the software easily without much struggle. Xero’s built-in payroll management automatically calculates employee pay, deductions, and taxes avoiding manual calculations and thus reducing the risk of errors, this feature streamlines the whole process making payrolls more quick and efficient. One of the core strengths of Xero is its robust integration with other cloud software that can be very useful for businesses that use multiple technologies and need to access data across applications/systems. This feature automatically syncs data between multiple systems eliminating the need for manual data entry thereby reducing the risk of errors. Fun fact: Xero was originally called “Accounting 2.0” and later   

QuickBooks

QuickBooks founded in 1983 is very popular among accountants and is considered the gold standard of accounting software. It features an intuitive user interface with a centralized dashboard making it easier for business owners with little to no experience to manage it themselves with some hands-on practice. QuickBooks offers a multiple-user feature allowing different people with a Quickbooks license to work together in a single file simultaneously, this feature can be very useful if you have multiple members in your team. It even allows you to track inventory which can be helpful for many businesses like restaurants, cafes, transportation and logistics.  

Sage Accounting

Sage Accounting founded in 1981 in England is quite popular in Canada when it comes to accounting software. It offers two packages you can choose between based on your business requirements, the first one is Sage One offering basic accounting features which are suitable for freelancers and micro businesses, and the second one is Sage 50 offering more advanced features that are essential for SMBs in Canada. Sage Accounting allows to work with multiple currencies which can be useful for businesses dealing with multiple currencies. It provides a full-featured mobile application introducing portability which makes accessing and editing data easier and quicker.  

Conclusion

The best accounting software software for your small business in Canada depends on your needs, budget, and goals. Evaluate features like invoicing, payroll, and integration capabilities. Consider scalability for future growth and robust security to protect your data. With the right choice, you can streamline operations and focus on growing your business.   If you are a small business owner in British Columbia and looking for accounting firms in British Columbia you may contact us. With our combined experience of 30+ years in accounting and bookkeeping in Surrey, we are here to provide effective services to our clients.