Starting your own business? Or you have started and it is now time to get your accounting away from the receipt-box (read: shoe-box) and spreadsheets into an actual accounting package? Great! That means you are readying your business for further growth. But where to start and how much does it cost?
Typically, accounting software is suggested to you by your accountant. There is nothing wrong with that - your accountant knows the ins and outs of accounting, so it is only logical to get the advice there. Or is it?
When it comes to your business, YOU know best
Accounting software is not a stand-alone product. It integrates deeply in what you do as a business. For example - your invoices are a customer facing document - not only should the addressee be addressed correctly and consistently, the invoice should reflect your agreements made with the customer (or frustration and late payments are a foreseeable result). I have written about that in a previous blog post.
Considering the accounting package is probably the first application you buy (or better yet: subscribe to), it most certainly will not be the last. Going with whatever is recommended (usually by your accountant) is a short term solution, but usually a long term headache. Certainly, the packages available on the market will be compliant with the rules and regulations, and you can get your statutory reporting done. Certainly, all accounting packages allow you to integrate with your bank account, and help you stay on top of your cash in and out flows. But, differences in fees for functionality, as well as integration to other applications you may use in the future are significant. And anyone that has ever changed from one accounting application to another knows that this is not a step to take lightly.
Start with the end in mind
You probably heard this advice before - if you start your business, you should have an end in mind, where do you want your business to be next year, in five years, and what is your exit strategy? With business applications it is not different. Ask yourself - how do you want to have applications support your business now, next year, and in five years? Or, instead of time, think about it this way: "if my business was ten times larger as it is now, how would we (your colleagues/employees) collaborate towards success for our customers efficiently and effectively? How can applications support this? And that is where the integrated applications come in - instead of looking at individual "point" solutions covering one specific part of your business, look at the connections between those solutions, and how the information flows logically from one point to the other. A simple example - agreements made with your customer logged in your CRM (Customer Relationship Management) system should be communicated to your accounts department - otherwise your invoices, or payment terms may be followed up with your customer in a manner not reflecting that agreement. Integrations are expensive and quite fragile - custom integrations need to be maintained and monitored (manual integrations - double entry - is integration too).
Cost of an integrated system
So, an integrated system is the recommended option? It depends. An integrated system is for small businesses cost prohibitive. They are expensive in the subscription fees (mostly more than $150 per user per month - with a minimum user uptake), and complex in the implementation (a decision in one aspect of the software can have immediate repercussions downstream of the transactions). A fully integrated suite, or ERP (Enterprise Resource Planning) is not a viable solution for the starting business.
Zoho One - best of both worlds
Zoho One offers the best of both worlds: the power of an integrated solution, with the ease and flexibility of point solutions. Zoho One gives you access to applications covering finance, collaboration, and customer engagement on a platform of separate applications that, when added together, form an integrated solution. It is not unlike Lego® blocks - the more you add, the more complex structures you can build. But you can start small.
The price of Zoho One is AUD 45 / USD 35 per employee per month. This is exceptionally good value, especially for start-ups. If paid monthly, the price drops to AUD 35 / USD 30 per employee per month. That is access to all applications when you need them, and including the integrations already built by Zoho. There is a free trial available here.
Start with Zoho Books
As a starting entrepreneur, cash flow is your master. You can only spend your dollar once, no matter how much value an offer like Zoho One provides you and your business in the future, on the short run you need a customer base, invoicing, accounting, and tax returns. The good news is, all applications in the Zoho One suite can be subscribed to individually as well. And once you are ready to make the conversion to Zoho One, your current application is upgraded and automatically integrated to your organisation in Zoho One. Zoho Books is an easy to learn and easy to use accounting package for small businesses, covering the aspects of business accounting a small business requires. You will also get an accountants login, which allows your accountant to make the adjustments in your general ledger for tax purposes, and get the appropriate tax reports out of the system. Further more, combine this with a free edition of Zoho Expense, and your photographs of receipts are analysed, categorised, and booked within Zoho Books - no more cumbersome receipt administration to keep track of your expenses.
Zoho Books is available in three flavours - Basic (50 contacts, 1 user + 1 accountant), Standard (500 contacts, 2 users + 1 accountant), and Professional (unlimited contacts, 10 users).
| Books version | Key features | Price |
|---|---|---|
| Basic | Bank reconciliation Custom Invoices Expense Tracking Projects and Time sheets Recurring transactions Sales approval | AUD 12 per month USD 9 per month |
| Standard | Everything in Basic, plus: Bills Vendor Credits Reporting Tags Purchase Approval SMS Notifications (via Twilio integration - Twilio required) | AUD 24 per month USD 19 per month |
| Professional | Everything in Standard, plus: Purchase Order Sales Order Inventory Custom Domain Mapping (i.e. books.yourdomain.com) | AUD 36 per month USD 29 per month |
Zoho Books comes with a free trial
A great way to get your business started. Zoho One comes with a free trial - start yours today, and see for yourself how easy it is. As a word of caution - my accountant (and I have heard the same from some of my customers) don't like Zoho Books - the reason: "it is too simple" - My immediate question was (as I was concerned): "oh no! What am I missing in my administration?" - the answer will surprise you: "Nothing, it is just very easy to use, and I have very little to do". If that is the common complaint amongst accountants, then give me more of that! I don't mind my accounting not spending much time (and charging me for it) fixing my administration - I am much happier paying for advice to minimise my tax burden instead!
To start your free trial - click the link below - Zoho Books is pre-configured to get you started straight away - just enter your company details, and the rest is already set up so you can start.
NOTE: Zero is not always spelled with a Z