As a fellow business owner of a sole proprietorship, I use and recommend Quickbooks Online as the best accounting software because of its excellent combination of power, flexibility, value and the ability to expand with your growing company.
Plus you (and your team) can access it from ALL of your devices (mobile, online and desktop). It is easy to learn and most importantly for us sole proprietors, connects your personal and business accounts, allowing you to transfer funds, expenses and transactions between both bank and credit cards accounts and accept credit card payments via email, swipe or mobile card reader.
I am just one of the millions of small businesses, since 1983, who rely on Quickbooks every day to expertly manage their accounting functions. Recent surveys state that 98% of users report that Quickbooks helps them run their business more easily.
My Quickbooks story started with the desktop version (20+ years ago) and has progressed through many different types of businesses and QB versions; including marketing consulting, web development & SEO, manufacturing (where I used the Intuit payroll services).
I like to do the least amount of accounting possible that allows me to track my sales and manage my money. It is far better for your bottom line profits to get busy in your business than spend countless, boring, hours on bookkeeping tasks. That is why I love Quickbooks for sole proprietors – who are usually the busiest people on the planet!
Top 5 Features Sole Proprietors Need In Accounting Systems
1 – Easy to Use and Learn – Because as a sole proprietor you are usually doing a lot of business tasks, including bookkeeping, you must have software that is both easy to learn and use on a daily basis. Otherwise, you will procrastinate and put off your accounting tasks then your business records will be disorganized, and you run the risk of forgetting payments and losing cash.
2 – Flexible & Expandable – You need a system that will allow you, your employees and your accountant, to access company records from mobile phones, tablets, desktop computers and online at any time. Plus you will want to start with accounting software that will grow with your business. This eliminates the need to switch systems later on which will be a major headache and cost you plenty of money and time.
3- Integration – It is a MUST that your accounting software; integrates seamlessly with your bank accounts (both business and personal) and your credit cards, have the ability to accept customer payments via credit cards with either mobile card readers via email or online plus sync automatically. Additionally, you want it to work directly with business loan providers for instant loan applications at Kabbage (our recommended lender for short term loans and lines of credit) and Fundbox (our recommended source for invoice financing).
4- Tax Preparation – Top quality software helps you keep meticulous tax records making tax prep a simple and less laborious task. Quickbooks owns TurboTax (our recommended provider) so it easily sends all your data directly to your tax return forms with a click of a button. Sweet!
5- Safe and Secure – Quickbooks has the latest, state-of-the-art security and encryption to keep your finances safe, secure and confidential.
16 Reasons Why Quickbooks is the Best Accounting Software for Sole Proprietorship
- Easy for one person to do the necessary bookkeeping – You will be able to learn to use it easily and so will your office staff. Plus it is simple to find and hire QB trained individuals, which is certainly not true for many other accounting systems. If you select a less popular system you will have to pay extra to train your employees to use the accounting software, and then when they leave you will have to pay again to train your new employees.
- Multi-user – You can use in the field on your mobile devices, while simultaneously your assistant and bookkeeper can go online login and enter transactions, print reports and reconcile accounts. This division of labor greatly increases company efficiency.
- Cross-device usage – Use it on smartphones, mobile devices, desktops, laptop, and tablets. Also, it is super easy to print out reports and ledgers to read and file hard copies for reference.
- Good record keeping for audits by IRS – Ability to easily track expenses to maximize your tax deduction and reduce your personal tax liability payments. This is critical because these days the IRS is closely scrutinizing sole proprietor expenses such as home office, car transportation, travel, and entertainment.
- Excellent reports – QB offers many report types to smartly analyze your business to determine what is working and not to make better business decisions.
- Easy to invoice and collect payments electronically, via mobile or desktop – even by just scanning the customer’s credit card. Like magic!
- Mobile Apps – I especially love the mobile apps – both for QBO and for Gopayment – because they keep me organized. I often do my bookkeeping on the go in my smartphone. In mere minutes I can make deposits, send invoices, log a receipt, capture receipts and add expenses. In a flash, I can know how much money I am making.
- State of the Art Security – Quickbooks uses advanced, top industry security safeguards to keep your financial records private and protected. Password protection, multi-factor authentication, firewall protected servers and state of the art encryption technology is in place to give you peace of mind.
- Direct Flow from Business to Personal Bank Accounts – Because QB has multi-account functions you can directly transfer from business to personal accounts and the software will automatically sync your records.
- Accept Credit Cards 4 ways – paid super fast. Mobile card reader, email invoices, photo scan capture and key in manual online. No additional equipment or accounts to reconcile and enter.
- Automatic electronic transaction sync – I set my system up to have all my credit card or debit cards to be entered into my check register in the system – then I can tag or slot assign them into the appropriate category for expense reporting. This way I never miss a deduction from gas or tolls to supplies. Also, you can apply only a portion of any transaction to business and the rest to personal which is a huge advantage to keep your two finances separate as the IRS and all tax experts recommend.
- Inventory Management – By using the inventory tracking features you can avoid overselling and know what is in stock, and needs ordering, or is on order, in real time. Stay on top of purchase orders and your on-hand quantities.
- Time Tracking – Quickbooks has time tracking capability in all its products and apps and also has a robust add-on call TSheets for larger teams.
- Industry Specific Versions – Quickbooks knows that certain industries have special needs so they offer specific versions for field including contractor edition, manufacturing and wholesale, retail, nonprofit, professional services and accountant.
- Grow With Your Business – Specifically designed for growing companies, QB can easily expand as your fleet grows, services increase and product line expands. This is vital so you do not waste time and money changing accounting systems and can focus on growth and revenue instead.
- 100’s of Software Integrations – Tops in the industry for add-ons and apps with its own Quickbook Apps stores. Free apps are available. The most popular include BillPay (to pay bills from inside Quickbooks), Paypal, Invoice from Google Calendar, and Method:CRM with real-time two-way sync. Also connects directly to Fundbox (our recommendation for invoice financing) with one-click.
Read more about small business accounting software reviews
Check out my guide on how to start your business right with tons of useful tips I learned by successfully starting, building, and selling multiple companies.