Accounting, Bookkeeping, and QuickBooks Tips for Small Businesses

Posts tagged cloud based bookkeeping software

SageOne Review

SageOne - Online Bookkeeping for Small Busienss Owners

This week I took a look at SageOne, a new online accounting tool from Sage Software. I really enjoy working with Peachtree, now known as Sage50. So I was thrilled to see Sage’s announcement of offering online bookkeeping software. Sadly, I was extremely disappointed with SageOne. It is easy to use and has a beautiful screen appearance. However, the software’s simplicity is too basic and is missing a lot of important accounting features that have become the norm with other cloud based accounting software providers. As I played around with SageOne, I kept thinking this is very similar to FreshBooks, yet FreshBooks is one hundred times better. I have hope for SageOne and believe it will improve with future developments. I think there is future potential for SageOne, but Sage needs to quickly get the ball rolling if they want to have a chance to compete in the online accounting software market. The competition is fierce.

Cost: $29/month, Free Trial

What I Love:

  • The online accounting interface is very pretty and easy to navigate.
  • Very simple to set up and get started. They offer a video tutorial to walk you through a couple of steps, then you’re up and running. Piece of cake.
  • The ability to track Projects and Tasks is a cool idea and has lots of potential. SageOne lets you create projects, assign tasks to employees, track hours spent on the tasks, has a message center to communicate with your employees, and you can attach files. The collaboration tools are a great way to keep track of your team and the work being done.
  • Invoicing customers is easy. You can enter the amount to bill, or pull hours worked from the project and task center. You can add your own logo and have a choice of a couple different invoice layouts. Invoices can be emailed from SageOne and sent to customers as attached PDF documents.
  • Easy to manually enter your expenses to keep track of where you spend money. There was an option to link the expenses to your projects. This seems like a great idea, but you can’t pull up these linked expenses later to invoice to the customer, there were no reports to see profit/loss per project, it didn’t show up on the project window to compare against your estimated project expenses, etc. So I’m not sure why this option was there, except for future development maybe?
  • Easily record transfers between bank accounts.
  • Standard bank reconciliation feature, which is a great double check that you recorded all of your deposits and expenses. It was easy to add missing deposits, checks, and a link for accountants to make an adjusting entry.
  • The dashboard offers a graph so small business owners can see their profit/loss during the year. You can also easily see which customers owe you money and track your projects from your dashboard.
  • I’ve heard rumors of an accountant portal coming later this year. This would be a great tool so SageOne could keep a basic interface for small business owners, while giving accountants, bookkeepers, and CPAs more advanced tools.
  • SageOne offers the ability to set up email notifications to be reminded of past due invoices, upcoming project due dates, and when you receive project messages from your team members. Don’t want a lot of emails? You can opt for the daily digest email and get all notifications in one email instead.
  • My Wish List:

    • A sad array of reports. Yes, they offer the top 3 reports, but that’s it. Currently SageOne only offers a balance sheet, income statement, and aged receivables (money owed from customers) reports.
    • What, you can not download your bank transactions? SageOne doesn’t automatically connect to your bank accounts, credit card accounts, and PayPal? Seriously? Isn’t this industry standard? Very disappointing. Data entry is a thing of the past, this alone could kill their product.
    • I guess they’re trying to offer a more cash based accounting model. When you enter an invoice, the income does not appear as income on the profit/loss (Income Statement). Instead, it shows up on your balance sheet as “potential sales” under your liabilities. I found it interesting when creating an invoice, you don’t have the ability to record the sales to an income account. Then, when you record payment from your customer, you get the option to post the sales to an income account. Therefore, after you receive and record the customer payment, then the work shows up as income on the profit/loss statement. I understand most very small businesses operate on a cash basis (or checkbook accounting as I like to call it), but this makes it really difficult to track how much money you’re actually making each month. Not to mention, would I remember a month later what services where for each invoice, especially if I work with a lot of clients?
    • Along the same lines as above, you can not record one customer payment against various income accounts. For example if you run a landscaping company, you might invoice your customer for landscape design services and installation. On the invoice, you can break out different projects. However, you can not record income from these two services to different income accounts when your check arrives.
    • No online payments from customers available.
    • SageOne does not integrate with any of the other Sage products.
    • There is no import/export function.
    • SageOne does not support payroll. This is really surprising since their projects and tasks are built to support employees and team members working together. So, if you have employees, you will need another accounting program to account for payroll.
    • Small business owners can not enter bills and keep track of money owed to vendors, utilities, rent, etc. Only cash expenses can be entered in SageOne.
    • I would love to see the Projects/Tasks tracking features expanded. It’s nice you can enter estimated hours to complete, estimated expenses, and estimated billable fees. However, it would be great to easily see how much you’ve actually spent on expenses and billed for the project/tasks as compared to your estimates. SageOne will compare your estimated time against the time already spent. However, tracking hours is a manual task and there is not a time clock.
    • I don’t believe SageOne has an iPhone, Droid, or other smartphone apps.

    I’m sad to report that at this time I would not recommend SageOne to my customers. It’s very similar to FreshBooks, but FreshBooks offers a lot more services and at a better price. For that matter, at $29/mo you could also use Xero and get a full accounting package. I’m disappointed with Sage. It’s almost as if they threw together an online accounting software so they could say they offer cloud based accounting solutions. I have a feeling they hoped customers would not see past the pretty interface and user friendly application. SageOne has some good ideas, but has a long way to go to be competitive with other cloud based accounting solutions that are currently on the market. I’ve heard rumors Sage is continuing to develop this product, so hopefully the future will bring better news for this poorly created cloud based accounting tool.

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    Michelle Edwards, CPA - QuickBooks Consultant Written by Michelle Edwards, CPA
    Certified QuickBooks ProAdvisor

    Michelle Edwards, CPA is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and Virtual CFO solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, home brewing, quilting, and hanging out with her family.


Outright Review

Outright - Online Accounting and Small Business Bookkeeping Software

This week I’m reviewing Outright. Outright is a very basic online bookkeeping software that lets entrepreneurs organize their small business finances. It was designed for sole proprietors, single member LLC’s, and Schedule C filers who have basic bookkeeping needs. Outright is also a perfect online bookkeeping solution for Ebay and Etsy sellers who started a small business as a hobby. If you’re a mompreneur, small business owner, self-employed, or sell on Ebay or Etsy, Outright might be the perfect cloud based accounting solution for your small business.

Cost: Free – $9.95/month

What I Love:

  • Ability to set up Outright to link to and download transactions directly from Ebay, Etsy, Amazon, private websites, and PayPal.
  • You can also link your bank accounts and credit cards to Outright for automatic downloads, saving even more time from tedious data entry.
  • Outright will automatically categorize your downloaded transactions. Small business owners also have the ability to edit or add transactions manually.
  • I love how small business owners can track their accounts receivables though Outright with the “Money to Collect” section. Outright also has another section under the Income tab to record customer payments.
  • Under the expenses tab small business owners can track their expenses and checks written to vendors.
  • Another cool feature is that Outright can integrate with Shoeboxed.com, to help entrepreneurs organize and keep track of their receipts. Another bonus is that small business owners can automatically import their transactions stored in Shoeboxed.com directly to their Outright bookkeeping software.
  • Outright offers users a decent amount of financial reports to help entrepreneurs keep on top of their business finances. You can track your Profit & Loss daily, weekly, monthly, quarterly or annually. Some other financial reports include keeping track of your types of income, finding out who are your best customers, and reporting where you are spending your money. I love that it offers users the choice to view their financial reports as numbers or as graphs.
  • Outright offers a mileage tracking feature, making it easy to keep track of your business mileage throughout the year for tax purposes. The mileage tracker also has a link to Google Maps, making it easy to record your mileage if you forget to use your car’s odometer.
  • One of my favorite features is their tax section. You can track your business’ sales taxes, have Outright calculate your estimated quarterly tax payments, and assist in calculating your annual taxes. They also have an entire section to help small business owners with their 1099-K’s received from PayPal. It’s a great tool to assist small business owners with their basic tax questions.
  • Outright also has an iPhone app that provides home based business owners on the go with the ability to see their Profit & Loss reports, keep track of their bank balances, see details to their transactions, and receive income alerts so small business owners know when an order comes though.
  • Outright also has an incredible blog filled with tons of useful information that’s easy to understand and that’s written for the small business owner, mompreneur, homepreneur, entrepreneur, and self employed. Their blog includes tax due date reminders, tricks to using their online bookkeeping software, and other helpful information for business owners.

My Wish List:

  • Outright does not have invoicing tools. However, it does integrate with FreshBooks so you can use FreshBooks for your invoicing needs.
  • Small business owners can not enter bills to pay and the bookkeeping software does not track payables. Users can only enter after-the-fact expenses and payments already made to vendors.
  • I have a love-hate relationship with the tax section. I love that helps provide small business owners with an amount they will owe in their quarterly estimated tax payments and helps small business owners figure out their annual taxes. I don’t like that this part of the system is so simple that I worry it would be easy to make a mistake. Even though the software does figure out taxes, I still recommend working with a tax preparer to ensure your taxes are calculated correctly.
  • I wish the software included a balance sheet under the reporting section. I know small business owners are intimidated by the balance sheet, but it’s such an important part to watching a business’ finances.

Overall, I’m impressed with Outright as an online bookkeeping software for small businesses. It offers a lot of great features for entrepreneurs, home office businesses, mompreneurs, self-employed, micro businesses, Schedule C filers, and people selling on Ebay and Etsy. It’s definitely designed for small businesses in mind who have basic bookkeeping needs. However, for these small businesses Outright is a much better bookkeeping tool than using a spreadsheet, a bank statement, or doing shoebox accounting.

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Michelle Edwards, CPA - QuickBooks Consultant Written by Michelle Edwards, CPA
Certified QuickBooks ProAdvisor

Michelle Edwards, CPA is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and business solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, quilting, and hanging out with her family.


Wave Accounting Review

Wave Accounting

Continuing my quest to find reputable, online, cloud based bookkeeping solutions for small businesses, I came across Wave Accounting. Wave Accounting started about a year ago with a mission to help the small business owner be more successful. To accomplish this goal, they are creating bookkeeping tools that are easy to use, designed with the small business owner in mind, and offer support for their online bookkeeping software. Only being in business for a little over a year, I honestly have to say I’m impressed with their cloud based bookkeeping software. Wave Accounting is designed for the small business owner, typically under 9 employees. This is a great solution for mompreneurs, work at home mom’s (WHAMS), photographers, real estate agents, Mac users, independent contractors, the self employed, home offices, and freelancers.

Cost: Free!

What I Love:

  • When you set up your account for the first time, Wave has you choose your business type to help create a chart of accounts that makes sense for your specific business. This is a huge help to small business owners. Even more impressive is Wave’s extensive list of business types – from photographers, to creative types, to consultants, to hair/spa businesses, to medical and dental offices, to retailers, to web and tech companies, to just plain and simple general service businesses.
  • Offers the ability to set up and track sales taxes.
  • Connect your bank and credit card accounts to Wave, allowing Wave to automatically download and import your transactions. Huge time saver allowing small business owners to focus their time on important tasks, not data entry.
  • Wave offers an invoicing tool with four styles of professional looking invoices that allow you to customize the colors and add your company’s logo.
  • The expense feature allows small business owners the ability to enter bills, track account payable, easily add a payment, and write checks. When you enter expenses, Wave will attempt to automatically categorize expenses the software recognizes.
  • Reporting section that has a balance sheet, income statement (profit and/or loss statement), sales tax reports, aged receivables, aged payables, reports to calculate the gain/loss on foreign currency exchange, etc. Another cool feature is you can email, export to Excel, or save the financial reports as a PDF.
  • Dashboard with quick access to useful financial information and snapshots about your business.
  • As an accountant, I love this this tool. Wave Accounting has a guest collaborator tool, allowing small business owners to invite guests to view and/or edit your company’s financial information. Your guests could be your CPA, your accountant, a bookkeeper, board members, assistants, etc.
  • Cloud based, meaning you have access to your small business bookkeeping from any computer that has an internet connection.
  • Wave has a ProNetwork for accountants and bookkeepers. This is a great way for accountants and bookkeepers to learn the software to better assist their small business clients. This a also a great benefit to the small business owner who are looking for a CPA, accountant, and/or bookkeeper that is familiar with and that works with Wave Accounting.
  • Wave Accounting integrates with FreshBooks and Google Docs.
  • Separate tab for tracking the small business owner’s personal finances. As your CPA has told you time and time again, you should not mix business and personal funds. However, we are well aware that many small business owners comingle business and personal funds. This tool makes it easier to split and track debit card and credit card transactions between personal and business expenses.
  • What small business owner doesn’t love free bookkeeping software!

My Wish List:

  • The advertisements at the bottom of the screen are a bit annoying. But, it’s free software and they have to make their money from somewhere. I do have to give the folks at Wave Accounting credit, the ads I saw were for reputable companies that I would actually consider doing business with. They were well thought out and well planned ads, not random, junky ads you see on most free websites.
  • Wave is not set up with merchant processing companies yet. Meaning no online bill pay options for for your customers when you email them an invoice. Wave does play nice with FreshBooks, so if this is important feature for your business you can do your invoicing in FreshBooks, then import those transactions into Wave Accounting.
  • Currently, they do not offer time tracking or time sheets. However, rumor has it that Wave Payroll will be coming to the US later this year and I’m guessing that will take care of that issue.
  • I didn’t see an iPhone and/or Droid phone app. I love being able to check my account balances, send invoices, etc. from my mobile devices while on the go.

Overall, Wave Accounting is a basic online bookkeeping and accounting software. It beats keeping your books on a spreadsheet and is a great solution for the small business owner. I love that it offers the self employed an affordable bookkeeping option that handles most general bookkeeping functions. Keep in mind Wave has only been in business for a little over a year, and they are continually adding and creating more tools to save entrepreneurs time and money. I’m anxious and curious to see what the future holds for Wave Accounting..

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Michelle Edwards, CPA - QuickBooks Consultant Written by Michelle Edwards, CPA
Certified QuickBooks ProAdvisor

Michelle Edwards, CPA is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and business solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, quilting, and hanging out with her family.


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