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Let’s face it, most of us don’t have unlimited funds to start or manage our businesses.  As business owners, we are consistently challenged with cutting costs and getting the most bang for our buck.  For instance, business taxes.  What can new or small business owners do to get the most bang for their buck?

The obvious would be to hire a tax professional. But those who are just starting may need to build towards this.  As a less costly alternative, begin with Accounting software.  It’s best to avoid the temptation of using an Excel spreadsheet.  While Excel works great handling most financial tasks in most businesses, it doesn’t have the capability to handle some of the business tax aspects of your business, such as producing financial statements.  Excel increases the chances of human error and risks.  Some better alternatives are as follows:

Quickbooks:  Their highlighted features are access to business data from anywhere, real-time collaboration, automated data backup, automated workflows, reporting, and integration with CPA functionality

Compatible with IOS and Android at no extra charge

Includes Live Full-Service Bookkeeping (additional fee)

Pricing:  $15/annually – $800/annually

Xero:  Xero is a cloud-based accounting software product that’s easy to use and integrates with more than 1,000 apps. It’s less expensive than competitors like QuickBooks Online and doesn’t charge extra for additional users, making it an affordable option for growing businesses.  It is also one of NerdWallet’s picks for the best accounting software for small businesses.

Xero has a robust reporting tool and reports customization options, basic inventory tracking in all plans, and a capable mobile app; Their Early plan limits the number of invoices and bills.

Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. This is a serious drawback if you want to be able to pick up the phone and talk through an issue or are new to accounting software and have lots of questions.

Xero lets new customers sign up for a 30-day free trial to test its features. You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.

Pricing:  $13/month, $37/month, and $70/month

Freshbooks:  FreshBooks is well-suited for freelancers and independent contractors. It stands out with its solid phone support and customizable invoicing features. You can choose from various customizable designs, set up recurring digital invoices, easily include discounts, and get instant updates when invoices have been viewed or paid online. Invoicing features are available on the mobile app, too.

However, it’s not ideal for fast-growing businesses because of user and client limits on some of its plans. The software started out primarily as a solution for managing invoices and grew to become an accounting product. The Toronto-based company’s software is now used in more than 160 countries.

Freshbooks includes time tracking in all plans, great invoicing capabilities, and an excellent mobile app.

Pricing:  $17/Month – $55/Month plus custom pricing

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Source – Intuit TurboTax:  7 Ways Small Business Owners Can Reduce Their Tax Bill

Written by Riley Adams, CPA • Reviewed by Miguel Burgos, CPA | Updated – February 2, 2023

https://turbotax.intuit.com/tax-tips/self-employment-taxes/7-ways-small-business-owners-can-reduce-their-tax-bill/L0cYi0OGq

Source – XERO:  Xero Accounting Review 2023: Pricing, Features, Alternatives

Written By: Kurt Woock  and  Hillary Crawford Updated Jan 3, 2023

https://www.nerdwallet.com/article/small-business/xero-review

Source – Freshbooks:  FreshBooks Accounting Review 2023: Cost, Pros, Cons

Written By: Amrita Jayakumar  and  Hillary Crawford        Updated Jan 3, 2023

https://www.nerdwallet.com/article/small-business/freshbooks-review