Best Accounting Software For Freelancers

Best Freelance Accounting Software

There are over 55 million freelancers in the US. With perks like being your own boss, setting your own schedule, and the flexibility to work from anywhere, it’s easy to see why freelancing is becoming such a popular choice. Whether you are self-employed full-time or are freelancing on the side to earn some extra income, there are key software tools that can help you run a more effective and profitable business — the most important being accounting software.

As a freelancer, it’s easy to focus on growing your business, finding new clients, creating marketing campaigns — anything but accounting. However, having a strong accounting process and being in control of your business’s finances is the key to running a successful business.

Luckily, there are plenty of easy to use, affordable accounting solutions that will help you manage your freelance finances and taxes quickly so you can get back to doing what you love.

In this post, we’ll share the top accounting software for freelancers. We’ll also share some other great freelance tools that you should know about to help your business succeed, including everything from email marketing software to website builders to mobile payment apps and more. We’ve spent hours researching and testing software so that you can find the perfect software solutions to run your freelance business.

heading QuickBooks Self-Employed AND CO Wave

Best Accounting Software for Freelancers

Best Accounting Software for Freelancers

Best Accounting Software for Freelancers

ReviewCompare

ReviewCompare

ReviewCompare

Pricing

$10 – $17/month

$0 – $18/month

$0/month

Size of Business

Self-Employed

Self-Employed

Small

Ease of Use

Very Easy

Very Easy

Very Easy

Customer Service

Fair

Very good

Poor

Number of Users

1

1

1

Number of Integrations

4

10

4

Cloud-Based or Installed

Cloud-Based

Cloud-Based

Cloud-Based

Mobile Apps

iOS & Android

iOS & Android

iOS & Android

Characteristics Of Good Freelance Accounting Software

In terms of accounting software, freelancers have very specific needs. Most traditional small business accounting software simply won’t fit the bill. Freelancers need an easy-to-use financial management solution designed specifically for the self-employed. Here are some of the key characteristics a good freelance accounting software should have:

  • Affordable: For freelancers, every penny counts. With a slim or nonexistent accounting budget, freelancers need a solution that is free or offers affordable, low monthly payments.
  • Easy To Use: Good accounting software should be easy to use as most freelancers don’t have time to spend hours balancing the books. Many also may have little to no previous accounting experience so they need something that is easy to learn and understand.
  • Time-Saving Automations: All accounting software should feature automations, but freelancers are in particular need of any way to save time. Standard automations include automatic receipt uploading, mileage tracking, and live bank feeds.
  • Manage Personal & Business Finances: While freelancers should open a separate business banking account to safeguard against tax audits, this simply isn’t the reality for many self-employed individuals. Because of this, many freelancers need to be able to separate their personal expenses from their business expenses using their accounting software
  • Good Organization: As a freelancer, it’s easy to put finances on the back burner, but knowing your exact income and expenses is key to running a successful business. Accounting software should help you stay organized, run key financial statements, and make more informed business decisions.
  • Tax Support: With estimated quarterly taxes and ever-changing deductions, freelance taxes can be overwhelming. The best freelance accounting software will include tax support to help you manage your self-employed taxes.
  • Support Resources: Good accounting software will also provide you with ample learning materials to help you better your business.

We weighed all of these factors when selecting the best accounting software for freelancers. Each of the top three accounting options displays many, if not all, of the features listed above to help make managing your freelance finances as simple as possible.

1) QuickBooks Self-Employed

Best For…Best Accounting Software for Freelancers

Overall freelance accounting and tax support. Ideal for filing directly with Turbo Tax.

Created in 2014, QuickBooks Self-Employed was designed specifically to help freelancers manage their finances and file their taxes easily. QuickBooks Self-Employed is incredibly easy to use, offers great mobile apps, and has the best tax support of all three programs on this list. The software helps you calculate your estimated quarterly taxes, track your mileage, find other deductions like the home office deduction, and even has a Turbo Tax integration for easy filing. On top of tax support, QBSE also helps freelancers keep track of their income and expenses.

The software is ideal for freelancers looking for tax support, a way to separate personal and business expenses, and basic expense tracking.

Pros Cons

Suited for freelancers

Limited invoice features

Calculates estimated quarterly taxes

No state tax support

Easy to use

Turbo Tax integration

Pricing

QuickBooks Self-Employed offers two pricing plans ranging from $10 – $17/month. The difference between the two is that the larger plan includes a built-in Turbo Tax integration and the ability to pay estimated quarterly taxes online.

Features

Best Freelance Accounting Software

QuickBooks Self-Employed supports a good amount of features, especially where taxes are concerned. Here’s an idea of what QuickBooks Self-Employed has to offer:

  • Track income and expenses
  • Separate personal and business expenses
  • Invoicing
  • Record tax deductions
  • Fixed asset management
  • Calculate estimated quarterly taxes

Ease Of Use

QuickBooks Self-Employed is incredibly easy to use. It has a modern, well-organized UI that takes very little time to learn and offers strong mobile apps that are also easy to navigate.

Customer Support

QuickBooks Self-Employed’s customer support has its pros and cons. There’s no phone support, but there is a live chat feature if you want to get in touch with a representative directly. The good news is that QBSE provides a great selection of learning resources for freelancers including a comprehensive help center and a small business center chock full of business advice.

Takeaway

QuickBooks Self-Employed is one of the best accounting and tax support solutions out there for the self-employed. The software offers the most advanced level of tax support on the market, and while this isn’t a full-fledged accounting app, it allows freelancers to manage their income and expenses.

Read our full QuickBooks Self-Employed review to find out if this software is right for your business.

2) AND CO

Best For…
Best Accounting Software for Freelancers

Freelancers looking for strong accounting, good customer support, and the ability to create and send contracts to clients.

Founded in 2015, AND CO is an up-and-coming freelance accounting software that was recently acquired by Fiverr, one of the leading freelance marketplaces. The software is easy to use, offers great customer support, and provides traditional accounting features like time tracking and project management. While the software does not offer tax support, it does have a one-of-a-kind contract feature that allows you to create legal contracts for projects that are compliant with the Freelancers Union. This allows you to dictate who retains rights to your work and accept signatures directly from clients.

AND CO is ideal for freelancers who don’t need the extra tax support of QuickBooks Self-Employed and would rather have more traditional accounting features, contracts, and better customer support.

Pros Cons

Suited for freelancers

No tax support

Easy to use

Unsuited for product-based businesses

Good customer support

Limited integrations

Strong mobile apps

Pricing

AND CO has a free plan for freelancers with a single client and a paid plan which costs $18/month. The larger plan includes unlimited reports and more advanced proposals and contracts.

Features

Best Accounting Software for Freelancers

While AND CO may be lacking in tax support, the software has a lot of great features going for it. Here are some of the features AND CO has to offer:

  • Invoicing
  • Contact management
  • Expense tracking
  • Time tracking
  • Project management
  • Proposals
  • Contracts
  • Subscriptions

Ease Of Use

AND CO is incredibly easy to use. The software was originally designed solely as an iPhone app so the mobile apps are also easy to navigate.

Customer Support

AND CO offers great customer support. Representatives are generally kind and quick to respond to questions. The company also offers great business tools and support resources for freelancers, as well as all of Fiverr’s extensive freelance resources.

Takeaway

AND CO is a great accounting and finance management tool for freelancers. The main drawback is that there is no tax support. However, you won’t find such developed proposal and contract features anywhere else.

Read our complete AND CO review to see if this freelance tool is right for you.

3) Wave

Best For…Best Freelance Accounting Software

Freelancers looking for a complete accounting solution for free.

Wave is a free accounting software solution that offers an incredible number of features for $0/month. While the software wasn’t designed specifically for freelancers like QuickBooks Self-Employed and AND CO, Wave is one of the best accounting programs to fit the needs of freelancers. It’s affordable, easy to use, and allows business owners to separate personal and business accounting.

The software is ideal for self-employed individuals looking for a full accounting solution or those who need an affordable way to manage their freelance finances.

Pros Cons

Free

Limited integrations

Easy to use

Poor customer support

Good feature set

Limited mobile apps

Positive customer reviews

Pricing

Wave only offers one accounting package and it’s completely free. There are no user limits or feature limits. You get all of the great features of Wave for $0/month. The only extra costs are payment processing, payroll, and professional bookkeeping services.

Features

Best Accounting Software for Freelancers

Of all three options on this list, Wave offers the most features. While you won’t find tax support, Wave does offer strong accounting and is full-fledged accounting software. Because of Wave is actual accounting software, it’s the only program on this list that will allow you to actually balance the books. Here are the features you’ll find with Wave:

  • Invoicing
  • Estimates
  • Contact management
  • Expense tracking
  • Accounts payable
  • Inventory
  • Reports

Ease Of Use

Wave is well-organized and its modern UI is easy to navigate.

Customer Support

Wave offers many great support resources; however, getting in touch with an actual representative is difficult. There is no phone support and response times are slow.

Takeaway

Wave is an affordable accounting program that gives you strong accounting and tons of features without breaking the bank. The software does not offer tax support, but it does offer payroll, making it a scalable solution if you plan on growing your freelancing business. The professional bookkeeping services are also great for freelancers who aren’t comfortable doing their own accounting or simply don’t have the time.

Read our full Wave review to see if this accounting software is right for you.

Other Great Freelance Tools

Your freelancing business is your baby, and as it takes a village to raise a child, it can also take an army of integrations to run a business. There are tons of great freelancing tools that can help you manage and grow specific areas of your business, like email marketing, invoicing, ecommerce, and more. Here are some of the top freelance software tools we recommend.

The Best Invoicing Software For Freelancers

If your freelance business relies heavily on invoicing and isn’t quite ready for all of the other features included with accounting software, invoicing software could be a simpler alternative to meet your business needs.

Zoho Invoice

Best Invoicing Software for Freelancers

Zoho Invoice is an easy to use, cloud-based invoicing program with incredible invoicing features. With over 15 invoice templates to choose from and international invoicing options, Zoho Invoice has a lot to offer. Read our complete Zoho Invoice review to learn everything this software is capable of.

InvoiceraBest Invoicing Software for Freelancers

Invoicera is also a could-based program with a good feature set and attractive invoice templates. A forever free plan and over 35 payment gateway integrations are just a few of the perks of this invoicing option. Read our complete Invoicera review to learn if this software is right for you.

Visit our invoicing software reviews for more options or compare our top favorite invoicing solutions for small businesses.

The Best Receipt Management Software For Freelancers

Business owners are all too familiar with the dreaded receipt shoebox. Receipt management software or expense tracking software can help freelancers get organized and handle reimbursements with ease.

ExpensifyBest Receipt Management Software for Freelancers

Expensify is a cloud-based expense management solution with mobile receipt scanning, expense approval workflows, and next-day expense reimbursements. The software also integrates with key accounting programs for a seamless expense tracking experience.

ShoeboxedBest Receipt Management Software for Freelancers

Shoeboxed is also a cloud-based expense management solution with receipt scanning, mileage tracking, expense reports, basic CRM, and even tax prep. Shoeboxed also integrates with key accounting programs.

The Best Payment Processing Software For Freelancers

Need to accept mobile payments from your customers? Mobile payment apps allow freelancers to accept payments anywhere — whether that be at a home show, a small storefront, or even a client meeting at Starbucks. If your freelance business could benefit from accepting payments on the go, mobile payment processing is a must.

SquareBest Payment Processing for Freelancers

Square is one of the most popular mobile payment apps. It offers affordable flat rate pricing and free tools for selling online, making it easy to accept payments from your customers in multiple ways. Read our complete Square review to learn how Square could benefit your business.

Take a look at our other mobile payment processing reviews or compare our top five payment processing solutions for businesses.

The Best Website Builders For Freelancers

A website is key for many freelancers who sell goods online or who need a professional online portfolio to showcase their work to clients. Luckily, there are plenty of affordable, easy to use website builders that can give your freelance business the edge.

WixBest Website Builder for Freelancers

Wix is an easy to use website builder that is ideal for ecommerce and blogging. Wix offers a compelling free version with unlimited pages and hundreds of customizable templates to choose from. Read our complete Wix review to learn more about this affordable website solution.

SquarespaceBest Website Builder for Freelancers

Squarespace is a website builder that is perfect for ecommerce and blogs While there’s no free plan, the software offers amazing templates with a huge degree of customizability. Read our complete Squarespace review to see if this website builder is right for you.

Read our other website builder reviews and ecommerce reviews to find the perfect solution for your business.

The Best Email Marketing Software For Freelancers

One of the most challenging parts of freelancing is finding clients. Email marketing software can be a great way to market your services and target clients so you can grow your business.

MailChimpBest Email Marketing Software for Freelancers

MailChimp is an easy to use email marketing software with affordable payments. The software offers email campaigns, email automations, and even analytics and reporting. Read our complete MailChimp review to learn how this software could help your business.

BenchmarkBest Email Marketing Software for Freelancers

Benchmark is another great email marketing option that is easy to use and offers good customer support. The software has hundreds of templates to choose from and the unique ability to send video emails and online surveys. Read our complete Benchmark review to see if this software is right for your business.

Read our other email marketing software reviews or compare the best email marketing solutions to find the right option for your business.

Picking The Perfect Freelance Accounting Software

Choosing Accounting Software

Running a freelance business can be difficult, but with the right tools, you can set your business up for success. With accounting solutions like QuickBooks Self-Employed, AND CO, and Wave, you can manage your finances and gain valuable insight into your business’s income and expenses.

QuickBooks Self-Employed is ideal for freelancers in need of tax support; AND CO is ideal for legal, professional contracts; and Wave is ideal for the complete accounting package. Identifying your freelance needs and examining your current financial process can help you decide which program is the perfect fit for your business.

Then ask yourself, what other tools could benefit my business?

Email marketing software could help you grow your clientele. A website builder could help you create a professional brand. A payment processing app could help you increase your sales. Here at Merchant Maverick, our goal is to help you find the best software to help your business succeed. We have hundreds of reviews across multiple software industries so you can find the perfect software combo. Check out our comprehensive reviews and our other freelance resources as well.

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heading QuickBooks Self-Employed AND CO Wave

Best Accounting Software for Freelancers

Best Accounting Software for Freelancers

Best Accounting Software for Freelancers

ReviewCompare

ReviewCompare

ReviewCompare

Pricing

$10 – $17/month

$0 – $18/month

$0/month

Size of Business

Self-Employed

Self-Employed

Small

Ease of Use

Very Easy

Very Easy

Very Easy

Customer Service

Fair

Very good

Poor

Number of Users

1

1

1

Number of Integrations

4

10

4

Cloud-Based or Installed

Cloud-Based

Cloud-Based

Cloud-Based

Mobile Apps

iOS & Android

iOS & Android

iOS & Android

The post Best Accounting Software For Freelancers appeared first on Merchant Maverick.

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How To Use Square Invoices To Ensure You Get Paid On Time

If your business relies on paper-based invoicing, you don’t need me to tell you about the inconvenience of printing, mailing, and waiting to get paid. Despite the hassle, many businesses still rely on printing and mailing invoices — you’re not alone. However, more and more shops are switching to online invoicing platforms to eliminate the expense of paper, printing, mailing, and administrative costs — and get paid faster!

If you’re ready to try an easier invoicing process, one simple and popular new solution is Square Invoices — because yes, in addition to the free mobile card reader and mobile POS, Square offers a fairly robust invoicing platform that syncs seamlessly with the rest of Square’s features. 

We’ve already reviewed Square Invoices, so I recommend that you check out the review for a more detailed look at how Square stacks up against some other options.

In this post, we are going to dive into Square Invoices and show you how to use the platform! From setting up a one-time invoice to setting up recurring invoices and creating deposit requests and reminders, you’re going to find out everything you need to know about using Square to send and receive payments.

But first, I know the most important question will always be “how much does it cost?”

How Much Does Square Invoices Cost?

The good news is that Square Invoices is entirely free to use. You can send unlimited one-off invoices, recurring invoices, scheduled invoices, and any other type of invoice, and you’ll only incur payment processing fees at the time your customer pays you.

When your customer opens your invoice and pays you online with their credit card, you’ll pay 2.9% + $0.30 for processing costs. If you use a saved Card on File from your Customer Directory to process an invoice payment, you’ll pay 3.5% + $0.15.

That’s it. Square doesn’t charge any monthly fees, service fees, or any other fees beyond the processing costs. A transparent pricing model and fully secure, PCI compliant payment processing are what makes Square a leading choice for businesses that need a simple, cost-effective solution.  

So let’s find out how to use Square Invoices to save time and get paid faster!

How To Send A Square Invoice

To send an invoice with Square, you’ll need to set up a Square account. The setup process doesn’t take long, and Square only asks for necessary personal information — no credit checks required! Once you’ve got an official Square account, you can access everything you need right at your dashboard. The same tools are at your disposal whether you access Invoices from your Square POS app or the Square Dashboard at your computer. Note that for this post, we are creating an invoice from our Square Dashboard — and here it is in the screenshot below.

Square Dashboard and Invoices

As you can see, I don’t have any outstanding invoices. If I did have outstanding invoices, the blue box labeled Invoices would display the dollar amount. From this tile, I can quickly send a new invoice by selecting Send an Invoice.

1. Fill In Customer Information & Invoice Details

When you first open the form to build an invoice, it’s very straightforward to plug in the details. Add your customer’s name, email address, and a message. The default message for the invoice is, “We appreciate your business,” but you can certainly start from scratch here and add a more dynamic message. The possibilities here are endless, from inviting them to consider a new service or promoting an upcoming event or discount. You know what they say, “Always Be Closing.”

Keep in mind that Square Invoices also syncs with your customer directory, so if you’re invoicing a past client, you can pull their name and information from the directory. If this is the first time you’ve sent this customer an invoice, this process will create an entry in your database.

I want to mention the Invoice Method line briefly. This line refers to the delivery method. Square Invoices send the invoice via email as a default, but you can also select Share Invoice Manually in the drop-down and Square will generate a link. You can send the link to your customer via text message, social media account, or any other type of messaging platform.

2. Set Payment Terms For One-Time Invoice

Working our way down the Invoice Details, let’s look at the Frequency. In the drop-down, you can choose One-time or Recurring. In the next section, I’m going to peel back the layers of recurring invoices. But first, let’s focus on a one-time invoice and the Send line in the image below.

This step is important for obvious reasons. When you think about customer behavior, remember that the fresher the value is in their mind, the more likely you are to get paid. Send the invoice as close to the deliverable as possible, and choose your due date carefully.

New Square Invoice

 

3. Set Up Recurring Invoice Schedule

As you can see in the image below, you have some flexibility when it comes to when and how you enable recurring invoices with Square. You can choose to send immediately, or choose a set time block such as in seven days or at the end of the month. You can also select a specific date.

Here, you can also select how often to repeat the recurring invoice. You can set the schedule for daily, weekly, monthly, or yearly invoice billing. Next, select when to stop your recurring invoices. Your options are never, after a specific number of invoices, or on a specific date. You can see in the example I set up below that I’ve ordered my recurring invoices for six months and requested payment due within seven days of receipt. I’ve also enabled Automatic Payments. If my customer approves automatic payments and saves their card, I’ve just made things even easier for myself (and them)! We will revisit the card-on-file situation and what that means for you in an upcoming section.  

Recurring Invoices can help you get paid on time for a service- or product-based subscription, of course, but you can also utilize recurring invoices to allow your customers to pay in installments. It’s all in how you set up expectations with your customer. Make sure to lay out what is expected as far as payment for the exchange of goods or services in the Line Item section.  

Whether you send a recurring or one-time invoice, the next steps are the same, so keep reading to find out how to fill in all of the upcoming invoice options, starting with Line Items.

4. Adding Line Items To Your Invoice

When it’s time to add items to your invoice, you’ll choose from the drop-down menu. If you don’t have inventory saved, you can simply type in the product or service and the price. I’ve added in ad-hoc services and prices to my Line Items in the screenshot below.

Need to add a note next to the service? Select Customize on the line item, and you can add a simple note next to the specific product or service in your invoice. Remember, the clearer you are here, the better. Avoiding confusion by adding descriptive notes can benefit you if there is a question later on down the road.

Filling out Invoice Square Line Items

Similarly, if you are allowing your customer to pay in installments, use the Line Item section to make clear what installment is being paid and the end product or service (e.g., Installment 2 of 4 for Vegan Suede LoveSeat Couch, Color: Coral)

5. Adding a Discount & Request Deposit

Under our Line Items, we can opt to Add Discount. In the example below, I applied a 25% new customer discount to this gift basket order by manually entering it into the discount fields.

Under the total, notice that you can also Request Deposit. You can request a specific percentage upfront by adding in details here. I’ve added a request for a 50% due immediately upon receipt. Whether the purchase requires you to special order materials or you are holding an item for a customer, requesting a deposit can help reduce risk to your bottom line.

Square Invoice Request Deposit

6. Fill In More Options

After you have all of the main parts of the invoice filled out, there is one last section: More Options. Here you can do even more to organize and keep on top of the invoices you send:

  • Set Reminders
  • Request a Shipping Address
  • Allow a Customer to Add a Tip
  • Allow Customer to Save a Card on File
  • Add Attachments

Square Invoice Options

Square Invoices automatically sets up reminders, but you can select Edit Reminders (as seen to the right) and edit the frequency around the due date. If you select Tipping, your customer will have the ability to manually add the tip amount or choose a percent to add to the total.

Store Cards on File For Faster Payments

Storing a card on file can save your customer time and streamline the process for everyone. When you process a payment with a card on file, it is going to cost you a little bit more in processing costs, however. To refresh your memory, processing a Card on File payment costs 3.5% plus $0.15. If your customer sets up recurring invoices and approves automatic payments, you can see how this could benefit your business over the long run, despite the extra charge.

There are a few ways to create a Card on File for Invoices. First, you can select Card on File on the invoice, as pictured above. If you select this, your customer does all the work on their end with approval. If you are at your Virtual Terminal or at the Square Point of Sale app and want to add your customer’s card to the customer director for future billing, you can do that, too.

To add a card on file, head to the Customer Directory and manually add their credit card information. Square prompts you to print out and have your customer sign their approval to save their card on file. Make sure you keep that piece of paper in a safe place!

7. Attach Files

In addition to selecting the option for your customer to store their card on file, you can attach additional files that pertain to the order. Square lets you add up to ten files (up to 25 MB worth, total). This includes JPG, PNG, GIF, TIFF, BMP, and PDF file types. Attaching files such as contracts, mock designs, or information about the sale may help support your case if there is a chargeback issue in the future, so it pays to add as much pertinent information as you can here.

Adding attachments to Square Invoice

Need help drafting an agreement or documents? Square provides free professional contract templates so that you can customize and attach to invoices. Use these to spell out the details in your contract, get ahead of customer expectations, and avoid payment disputes. Square provides downloadable templates including Completion of Services, Order Forms, Improvement Agreements, Sale of Goods, and more. Visit Square’s Build Your Contract page to find templates you may need and add to your invoices or keep on file.

8. Preview Invoice & Customize Appearances

After entering in all of the most important details of the invoice, let’s see how it will look for the customer. In the upper right-hand corner of the invoice screen, I selected ‘Preview.’ Here is what we have so far.

Square Invoice Tutorial

You’ll notice right off the bat that the Square Invoice has a pretty large banner that is currently completely unbranded. Square reminded me through the green tutorial prompt that I can update my logo, color, and business information by heading to Account & Settings.

Let’s head there next and update the banner to reflect the brand. Adjusting these setting and information is located at Receipt under Account. Note that the settings, branding, and contact information that you apply in Receipts is also reflected in the settings and branding applied in Invoices and Estimates.

Below, I uploaded a logo and chose a background color from the available colors.

Design Square Invoice Logo

After scrolling through the sample invoice preview, I also noticed that Square had my business name, address, and phone number in the footer. If you’re like me and don’t have a brick-and-mortar business location, you can adjust the details of your contact information, which is what I will also be doing in Account & Settings.

All you have to do to disable location display is toggle ‘Show Location.’ The only contact details displayed on my invoices now are my business name, and contact phone number. Just how I like it!

Hiding Location Square Invoice

9. Send Invoice

Here is our finished invoice. Note that we selected that the customer can save their card on file. Additional authorization is all ready for them to click right below Billing Information.

Square Invoices

As I scroll down in the invoice, you can see that I’ve added a short note, itemized products, and the discount. Also remember that for this order, I required a deposit before assembling the baskets. When viewing the invoice, the total balance and the due date for the deposit are laid out clearly, as seen in the screenshot below.

And that’s it! The invoice ready to send to the client.

Track Invoices & Follow Up With Customers

If you deal primarily in custom orders, or you have multiple clients, it’s quite likely you have several outstanding invoices at any given time. The good news is that with Square Invoices, you don’t need to hope you’ve remembered to enter an invoice in your spreadsheet so nothing slips through the cracks.

In the Square Dashboard, you have many options to sort and search for invoices. You can search for and view every invoice you’ve sent by customer ID, invoice ID, invoice title, or customer email. You can also sort invoices to only display sent, outstanding, paid, scheduled, draft, and unsuccessful invoices. The other way you can sort your invoice view is by a specific date or a date set.

Square Sorting Invoice

By selecting only to view outstanding invoices, you know who you may need to follow up with this week. Following up is easy — you simply select the invoice. As you can see in the screenshot below, a vertical screen appears to the right of your dashboard when you select the specific invoice. Here you can view the recent activity, and track when (or if) your client saw the invoice and any action taken with it.

At the bottom left, you can select Remind and draft a quick reminder message to send to your customer. Need to record a payment received by cash or check? No problem, you can manually add the amount by selecting Record Payment under the Payment Schedule section.

Square Invoices Recording Payment

Pay Off The Invoice With Square POS

If your customer is standing in front of you or will be heading in to see you, the free Square POS app is a great way to take their payment. For one, if you swipe, tap or dip the card with a connected reader, you can process the payment at 2.75% rather than 2.9% + $0.30.

Square Invoice POS

Here is the next payment screen. You can record partial or full payment or charge a swipe, tap, or dip a card on your connected device.

Square Pay Invoice on POS

While we are here, I want to remind you that the Square POS app has all of the same invoice functionalities as far as processing payments, tracking, and yes — even setting up and sending invoices.

Sending An Estimate

I’m happy to report that Square recently started supporting estimates. If you haven’t quite closed the deal yet with your customer, or you provide a service-based business, sending an estimate is an essential step. You can access Estimates within the Invoices section.

Square estimate

I filled in the details of a bathroom remodel estimate below. The same branding and delivery methods apply to estimates as they do to invoices, so if you’ve already set that up, you’re all set! Head back to the previous section in this tutorial, Preview Invoice & Customize Appearances, for a refresh on how to update logo and colors if you haven’t yet.

Creating an Estimate in Square

As you can see, the process is nearly identical to send an invoice and an estimate. 

Is Square Invoices Right For You?

As far as making your life easier as a business owner, Square delivers when it comes to simplicity and ease of use. As far as getting paid, invoicing a client is a bit more expensive when it comes to processing credit cards, but you can send an unlimited amount of invoices for free, record check or cash payments, and get the simple tracking and reporting tools with no added fees.

If you compare Square Invoice to paper printing, mailing, and waiting, it’s no contest — Square wins hands down. But Square does have its limitations. If you are looking for advanced reporting features, integrated expense tracking, and live bank feeds, you may want to shell out some more money for a premium solution like FreshBooks (read our review). Check out our Invoicing Software Comparison chart to see different options available.

That being said, I like that Square seems to be listening to their user base when it comes to improving functionality and offering more solutions, as evidenced by the recent addition of estimates this year. All in all, with Square you have everything you need to send an invoice or a deposit request and easily track activity for follow-up. If you are ready to give it a shot, set up a free Square account and start sending invoices!

Want to know more about Square? Again, don’t forget to take a look at our Square Invoices Review, and for a better look at everything Square can do for you, check out our complete, in-depth Square review!

The post How To Use Square Invoices To Ensure You Get Paid On Time appeared first on Merchant Maverick.

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Top 10 Tax Deductions For Freelancers

Understanding the nuances of the small business tax code has never been a walk in the park (especially when the tax laws are constantly changing), but when it comes to freelance taxes…? Let’s just say that those are a whole different ballgame.

According to a 2015 study done by Xero, 73% of freelancers don’t deduct any expenses when filing their taxes. Considering how many people now rely on freelancing gigs as a primary source of income, that number is frankly shocking and prompts the question: Are you maximizing your tax deductions as a freelancer?

If you are a freelancer, there are 10 very important tax deductions you need to know about. Gaining a basic understanding of how freelance taxes work and what you can and can’t deduct can save you a good chunk of change and spare you from trouble with the IRS down the line.

Read on for several money-saving tips and to learn about the top 10 tax deductions available for freelancers.

The Basics Of Freelance Taxes

Freelancing is a form of self-employment in which a person offers their service for a fee (rather than relying on a traditional employment arrangement). A person is required by law to pay taxes to the US government if they receive a freelance income of $400 (or a church employee income of over $108.82) in a given year.

When you’re paid by a traditional employer, standard taxes on Medicaid and Social Security are automatically taken out of each paycheck. This isn’t the case for freelancers and independent contractors, who are instead required to pay self-employment taxes. The self-employment tax rate is 15.3% (12.4% for Social Security and 2.9% for Medicaid). In addition to self-employment taxes, freelancers are also required to pay income tax.

If you are a freelancer, you will have to save a certain percentage of your income in order to pay your taxes. Most financial professionals advise freelancers to save around 25% (or even 30%) of their total income to cover these taxes. Freelancers may be required to pay taxes every quarter rather than annually (cue estimated quarterly taxes), depending on the size of their earnings.

Estimated Quarterly Taxes

Most tax-payers are used to the April 15th deadline when filing taxes for the previous year. However, freelancers are often required to pay estimated quarterly taxes. Instead of paying taxes once a year, some self-employed individuals will pay these estimated taxes four times a year.

Quarterly Tax Period Estimated Quarterly Taxes Due

January 1 – March 31

April 18

April 1 – May 31

June 15

June 1 – August 31

September 17

September 1 – December 31

January 15

Note: These due dates are specifically for 2019 and will vary slightly each year.

So, how do you know if you need to pay estimated quarterly taxes? According to the IRS, individuals who expect to pay at least $1,000 in taxes for the year should file estimated quarterly taxes instead of waiting until April to file. The 1040-ES form can help you approximate your total income for the year as well as your estimated tax payments.

As always, we recommend consulting with an accountant or tax professional for tax advice — especially when it comes to freelance taxes. They will be able to assist you in officially determining whether you need to pay estimated quarterly taxes, and if so, how much.

Tracking Freelance Finances

When you’re self-employed, it’s incredibly important to keep your finances organized. That’s where accounting software comes in.

Most freelancers would probably rather be finding new clients, creating new marketing strategies, improving their brand and social media presence — basically doing anything but accounting. But earning freelancer income is only half the battle. Managing that income and keeping track of your business earnings and expenses — that’s what sets you up for long-term success.

Luckily, there are multiple accounting programs that are designed specifically for freelancers, like QuickBooks Self-Employed. QuickBooks Self-Employed helps freelancers keep track of their income and expenses, manage deductions, and calculate estimated quarterly taxes. It even includes a Turbo Tax plan so you can easily file your taxes. Read our full QuickBooks Self-Employed review to learn more.

Whichever accounting software you choose, it’s important to record your income so you can set aside the proper amount for taxes, track your expenses so you can maximize deductions, and keep your finances organized in case you ever face an audit.

Tip: Hire A Tax Professional

The biggest tip I have for freelancers is to hire an accountant or tax professional. When you’re self-employed and trying to save as much money as you can, it seems counterintuitive to hire an accountant, but trust me — the expense will more than pay for itself.

As a previous independent contractor, I’m speaking from experience here. When I started out as a 1099 contractor I knew a little bit about self-employment deductions. I saved 25% of each check, kept a careful record of my business-related mileage, and saved all of my business expense receipts. But without the help of an accountant, I still would have missed out on over $3,000 worth of deductions I didn’t know about.

Accountants and tax professionals can help you navigate the murky waters of freelance taxes and find you all sorts of savings. They know exactly what you can write off, which deductions you qualify for, and which deductions could put you on the radar for an audit. This expertise is priceless.

But, don’t let your accountant do all the work. Knowing which deductions you are eligible for and keeping careful records of your receipts and expenses throughout the year can help ensure you save as much on your freelance taxes as possible. (And, since accountants are often paid by the hour, the less work they have to do the more money you’ll save.)

Top 10 Tax Deductions For Freelancers

Top Freelance Tax Deductions

Whether you about to file your taxes and are searching for last-minute savings or you are trying to track your deductible expenses throughout the year to get ahead of the tax game, here are the top ten tax deductions freelancers and independent contractors should know about:

1. Self Employment Tax Deduction

Rember when we said that freelancers are required to pay a 15.3% self-employment tax? Since freelancers are self-employed, they serve as both the employee and the employer, resulting in the 15.3% tax rate. In a traditional job, half of that tax would be covered by the employer.

This deduction allows you to deduct the employer-equivalent portion of your self-employment tax (approx. 50% – 57%). This deduction only affects your income tax. Contact an accountant or tax professional to see if you’re eligible for the self-employment tax deduction.

2. Health Insurance Premiums

Since freelancers have to provide their own health insurance, self-employed individuals can often deduct their health insurance premiums. The deduction cannot exceed your annual earned income.

3. Home Office Deduction

If you have a designated space in your home that is used exclusively for your business, you may be eligible for the home office deduction. You can use the simplified method and claim $5 per square foot, or you can use the complex method and write off direct expenses related to your office, including furniture, maintenance, equipment, and a portion of your utilities. Contact your accountant to see if you are eligible and to determine the best way to claim your home office deduction.

4. Office Supplies

Do you use printer ink or buy stamps to run your business? There’s a deduction for that!

Freelancers (and small businesses) can deduct office supplies so long as they are “ordinary and necessary” (which is the IRS’s rule of thumb for all deductions). Be sure to save all of your receipts so you can file your taxes properly at the end of the year.

5. Travel

As a freelancer, you can deduct travel expenses so long as the travel is strictly business-related. Again, be sure to save your receipts, airline tickets confirmations, etc.

6. Mileage

If you’re self-employed, you can deduct business-related mileage. The 2018 mileage rate is 54.5 cents per mile, which adds up surprisingly quickly.

Carefully log your start and end mileage, your starting point, your destination, and the purpose of the trip in a notebook (or using a tax software program like QuickBooks Self-Employed). You can also choose to deduct vehicle expenses instead of mileage. Talk to your accountant about which option is best for you.

7. Hardware & Software

If you require specific hardware and software to run your business, these purchases can count as deductions. Talk to your accountant about the best way to deduct these expenses as some bigger purchase may need to be depreciated.

8. Education 

Certain educational or certification expenses can also be deducted so long as they are directly related to your current line of work, not a new career. Keep track of your tuition and other education expenses throughout the year to claim this deduction.

9. Retirement Contributions

Since self-employed individuals are responsible for their own retirement accounts, retirement contributions can also be deductible. Keep track of any contributions you make to your SEP or IRA plans throughout the year to take advantage of this deduction.

10. Advertising & Marketing

Advertising and marketing expenses used to expand your business and bring in new customers can also be deducted.

New Tax Laws May Equal Savings

Top Deductions for Freelancers

The new Tax Cuts and Jobs Act was one of the biggest changes to tax law in decades. While the IRS is still rolling out the full implications of these changes, one of the most important changes for freelancers is the new 20% qualified business income deduction, otherwise known as the pass-through credit.

Certain types of businesses — like sole proprietors, S corporations, and partnerships — are eligible for an up to 20% deduction on taxable income. There is an income limit for this deduction, so be sure to talk to an accountant or tax professional to see if you qualify.

Start Saving!

 

Now that you know about the top ten freelance tax deductions, it’s time to start saving! (Saving receipts, that is.) Make sure to carefully preserve all expense receipts and keep detailed financial records of anything you plan on deducting. This assists your accountant to maximize your deductions and helps prevent a tax audit.

You can now rest easy knowing exactly what’s expected of you as a freelancer when it comes to filing taxes. You can also be confident about the best ways to save money on your freelance taxes so you can continue to do what you love — and get paid for it.

As always, we recommend consulting an accountant or tax professional for the best tax advice.

The post Top 10 Tax Deductions For Freelancers appeared first on Merchant Maverick.

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Differences Between Invoice Financing And Invoice Factoring

Unpaid invoices can be a burden for any business. While you know that the money from the invoices will come eventually, slow-paying customers or long repayment terms could have a negative impact on your incoming cash flow — and this could be a problem for your business.

Instead of waiting for weeks (or months) to receive the money owed to your business, how can you get the funding your business needs immediately? What if you could put your unpaid invoices to work for you? What if you could sell your unpaid invoices or use those invoices as collateral to receive the money you need to cover an emergency or to use as working capital?

If outstanding invoices are creating cash flow problems for your business, there are lending options available for you. In this post, we’ll explore invoice financing, invoice factoring, and invoice discounting. We’ll discuss the differences, how they can benefit your business, associated costs, and most importantly, how to make the right choice for your business. Read on to learn more.

What Is Invoice Factoring?

With invoice factoring — also known as accounts receivable factoring — a business owner sells unpaid invoices to a lender. This lender is known as a factoring company or simply a “factor.” When you sell your invoice, the factor gives you an upfront payment that is typically 85% to 95% of the invoice total.

The factor will then proceed with collecting payment from the customer. Once the customer has paid the invoice, the factor will pay the remaining balance to you, less an agreed-upon factoring fee. Factor fees vary by lender but typically add up to between 1% and 6% per month. Factors charge daily, weekly, or monthly fees, so the longer it takes for the invoice to be paid, the higher your fee will be.

Obviously, the factoring fee reduces the amount that you receive from the invoice. This is why it’s important to always weigh out the return on investment before agreeing to sell your invoices. If there isn’t an immediate financial need, waiting for your customer to pay the invoice is the wisest decision, but if an unpaid invoice is causing financial challenges in your business, receiving immediate cash may be worth the cost.

Invoice factoring offers a financial solution for businesses that need funds quickly but may not qualify for other loan options. Most business loans require a certain time in business and minimum annual revenues, and many lenders also take personal credit scores into account. But even if your annual revenues are low, your business is new, or you have personal credit challenges, you may qualify for invoice factoring — provided you have qualifying invoices.

Think invoice factoring is right for you? Learn more about how to determine if invoice factoring is a smart financial choice for your business. Once you’ve decided to move forward, check out our comparisons of top invoice factoring companies.

Financing VS Factoring: What’s The Difference?

Invoice Financing Invoice Factoring

Uses invoices as collateral for a line of credit

Sell invoices for immediate cash

You are granted a credit facility based on the value of your unpaid invoices, and can draw from your available funds at any time

Factor gives you an advance when the invoice is sent and sends you the rest once the customer pays (minus a factoring fee)

You are responsible for collecting invoice payments

Factor is responsible for collecting invoice payments

Two terms that are often used interchangeably are invoice financing and invoice factoring. Invoice factoring is a type of invoice financing. However, when most people use the term “invoice financing,” they are referring to accounts receivable financing.

Accounts receivable financing — or invoice financing — is similar to invoice factoring. However, with this type of loan, your unpaid invoices act as the collateral to secure a line of credit. The amount of your line of credit is determined by the value of your invoices.

With invoice factoring, you receive a lump sum payment from the factor based on the value of the invoice. In other words, the factor purchases your invoices. Therefore, the factor is responsible for collecting payments from your customers. With invoice financing, the invoices still belong to you and are only being used as collateral. This means that collecting payments from customers is your responsibility.

What About Invoice Discounting?

Another form of lending based on unpaid invoices is invoice discounting. Like invoice factoring and invoice financing, this is an option for qualifying B2B and B2G businesses that need extra capital. Let’s explore what invoice discounting is and how it differs from invoice factoring.

Invoice Factoring VS Discounting

Invoice discounting is similar to invoice factoring in that you use your unpaid accounts receivable as collateral. As with invoice factoring, new companies and startups, business owners with low credit scores, and businesses with low annual revenues that do not qualify for traditional financing may also qualify for invoice discounting.

What makes invoice discounting distinct from invoice financing different is who collects the payment. With invoice factoring, the factor collects payment from the customer. With invoice discounting, your business is responsible for collecting the payment. After submitting qualified invoices, you will receive a lump sum payment of up to 95% of the invoice value. You will collect payment from your customer as usual and pass the money onto the lender, plus fees charged for the service.

How To Choose An Invoice Financing Solution

Even though invoice factoring, invoice financing, and invoice discounting have similarities, there are situations when you should select one option over the others. Before you submit your invoices, keep the following considerations in mind:

Notification VS Non-Notification

If a third-party lender purchases your invoices through invoice factoring, your customers will be notified since the factor will be collecting payment.

With invoice financing and invoice discounting, you are collecting payment as usual, so your customers will be unaware of a lender’s involvement.

If you don’t want your customers to be notified by a third-party, choose invoice financing or invoice discounting.

Collecting Payments

If you’re a smaller company, you may not have the manpower to chase down customers for unpaid invoices. If you would rather the lender collect payment, invoice factoring is the option that would work best for you.

It is important to note that invoice factoring often has higher fees. However, the additional costs may be worth it if you do not have the time or resources to track down customers and collect payment.

If you use invoice factoring and the factor collects payments, remember that your customers will be notified of third-party involvement. If this is something you wish to avoid, consider your other financing options.

Asset-Backed Line Of Credit VS Lump Sum

If you want to receive a lump sum payment for your invoices, choose invoice factoring or invoice discounting. With these options, you can receive up to 95% of your invoice value upfront.

If you prefer a more flexible option, consider applying for invoice financing. You’ll receive a line of credit that is backed by your unpaid invoices.

Final Thoughts

If unpaid invoices are dragging your business down, put your accounts receivable to work for you. With invoice factoring, financing, and discounting, you can receive the money you need even when you don’t qualify for a traditional loan. Consider what type of financing would work best for you, shop around for the most affordable fees, and select a lender based on the financial needs of your business.

The post Differences Between Invoice Financing And Invoice Factoring appeared first on Merchant Maverick.

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Zoho Books VS Wave

ZohoBooks-vs-Wave

Zoho Books VS Wave

Accounting

✓

✓

Features

Pricing

✓

Tie

Hardware & Software Requirements

Tie

✓

Users & Permissions

Ease of Use

✓

✓

Mobile Apps

✓

Customer Service & Support

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

✓

Integrations

✓

Security

?

Final Verdict

?

When you think of accounting software, you usually think of big names like Xero or QuickBooks. But what about the programs that are designed specifically with the small business owner in mind? In this post, we’re going to put two of the top small business accounting software programs face to face: Zoho Books and Wave.

Redesigned in 2014, Zoho Books is a scalable, full-featured accounting software that even gives QuickBooks Online a run for its money. The software has only improved over the years. It features beautiful invoicing, strong mobile apps, excellent customer support, and decent integrations. It also gives users the unique ability to send invoices in over 10 different languages.

Wave is free accounting software that has only gotten better as time goes on. The software has grown to support over 3.5 million users and offers a robust feature set with unique additions like lending, scheduling recurring invoices by timezone, and a brand-new light ecommerce tool. The software also offers professional bookkeeping services and supports personal and business accounting.

But which service comes out on top? And more importantly, which is right for your business?

Read on to find out.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. To make your decision easier, we’ve carefully researched and tested both products. We’ll compare Zoho Books and QuickBooks Online (QBO) based on features, pricing, customer experience, reputation, and more, so you don’t have to.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Wave

Both Zoho Books and Wave offer strong accounting features. Each software uses double-entry accounting and offers both cash-basis and accrual accounting. Both support accounting reports, a customizable chart of accounts, journal entries, bank reconciliation, and fixed asset management.

The two are almost neck and neck in this area, although Wave sets itself apart by having recently added an additional bookkeeping service called Wave+ where users can purchase additional accounting help from professional bookkeepers. Wave also has built-in personal accounting tools.

Features

Winner: Zoho Books

Zoho Books Features Wave

✓

Invoicing

✓

✓

Multiple Invoice Languages

✘

✓

Estimates

✓

✓

Expense Tracking

✓

✓

Bank Reconciliation

✓

✓

Chart Of Accounts

✓

✓

Fixed Asset Management

✓

✓

Contact Management

✓

✓

Accounts Payable

✓

✓

Time Tracking

✓

✓

Project Management

✘

✓

Inventory

✓

✓

Reports

✓

✘

eCommerce Checkouts

✓

✓

Tracking Categories

✘

✓

Multi-Currency Support

✓

✓

Sales Tax

✓

✓

Tax Support

✘

✓

Importing & Exporting

✓

✘

Lending

✓

Zoho Books and Wave have a lot of similar features. Both offer expense tracking, invoicing, contact management, and more. The difference is the depth and functionality of these features.

While Wave has a strong feature set and unique additions like a lightweight ecommerce tool and lending, Zoho Books’ features are far more advanced. Zoho Books offers some of the best invoicing on the market with 15 different templates and international invoicing. The software also offers project management (which Wave lacks entirely), better inventory, better time tracking, and better reporting, making it the clear winner here.

Pricing

Winner: Wave

Zoho Books offers three scalable pricing plans ranging from $9 – $29/month. Wave is completely free. The only additional costs are payroll, payment processing, and Wave+.

When it comes to pricing, you can’t beat free. And unlike most free software, Wave doesn’t put artificial limits on features like invoicing and estimates. You get complete access to fully-functioning features for $0/month. Another point in favor of Wave is that the software actually offers payroll. The service may cost extra, but in contrast, Zoho Books doesn’t have any payroll support or payroll integrations.

Hardware & Software Requirements

Winner: Zoho Books

As cloud-based software, both Zoho Books and Wave work with nearly any device so long as you have an internet connection.

Users & Permissions

Winner: Zoho Books

Depending on your plan, Zoho Books supports between 1 and 10 users, although you can purchase additional users for an extra cost. The software offers very basic user permissions. Wave is designed for the small business owner, meaning there are no additional users. You can technically invite “collaborators” who can have “view-only” or “view & edit” access to your Wave account, but the features they are able to access are limited, making Zoho Books the winner here.

Ease Of Use

Winner: Wave

Both Wave and Zoho Books are easy to use. They each have a modern UI that is well-organized, and setup is quick. However, because of Zoho Books’ sheer number of features, the software is a bit harder to navigate and get used to. Wave, on the other hand, is easy enough for anyone to use, no matter what their accounting background (or lack thereof) looks like.

Mobile Apps

Winner: Zoho Books

It’s no question that Zoho Books is the winner here. Zoho Books has always been known for strong, fully-featured mobile apps. Their Android and iPhone apps receive high ratings across the board, and the company supports smartwatch, Microsoft, and Kindle apps as well.

Wave’s mobile apps could stand improvement. Right now, there are two separate apps, one for invoices and one for receipts. Existing Wave users complain that they want one, full-featured app.

Customer Service & Support

Winner: Zoho Books

Zoho Books offers the most excellent customer support by far. Zoho Books’ phone support has hardly any wait times, and in my experience, representatives are friendly and helpful. The company also has an expansive help center, email, live chat, videos, and more.

While Wave does offer good resources like a well-developed help center and strong blog, you can only contact Wave support by email (unless you purchase payroll or credit card processing, in which case you get phone and chat support). Wave’s email response times often take over a day.

Negative Reviews & Complaints

Winner: Tie

Both Zoho Books and Wave receive mostly positive customer reviews from satisfied customers. They have a similar ratio of negative to positive reviews, resulting in a tie for this section.

The few complaints Zoho Books users have are about the lack of payroll and limited integrations. Complaints about Wave revolve around poor mobile apps, limited integrations, and limited features.

Positive Reviews & Testimonials

Winner: Tie

Both Zoho Books and Wave have many satisfied customers and high customer ratings. Zoho Books receives 4.5/5 stars on Capterra and 4.6/5 stars on G2Crowd, while Wave receives 4.4/5 stars on G2Crowd and 9/10 stars on TrustRadius.

Zoho Books users appreciate the software’s ease of use, strong mobile apps, affordable price plans, and constant updates. Wave users praise the software for its ease of use, free price, personal accounting, and feature selection.

Integrations

Winner: Tie

Zoho Books offers 33 integrations while Wave only has 3 integrations. However, both Zoho Books users and Wave users complain about a lack of integrations. Each software’s saving grace is that they both connect with Zapier, an integration that connects them to 1000+ other third-party apps.

Security

Winner: Zoho Books

Both Zoho Books and Wave offer strong security. Each uses 256-bit SSL encryption, regular data backups, and 24/7 data monitoring. We gave Zoho Books the victory in this section because Zoho Books is far more forthcoming about their security information so users can be 100% confident that their data is protected.

And The Winner Is…

Zoho Books VS Wave

Wave is powerful software that puts up quite the fight, but it just doesn’t have the features and capabilities of Zoho Books — at least not yet. A more robust feature set, strong mobile apps, more integrations, forthright security, and excellent customer service give Zoho Books the advantage.

Zoho Books is ideal for small to medium businesses in need of strong accounting that want the capabilities of QuickBooks Online without having to pay the price. Zoho Books is an affordable QBO alternative with a robust feature set and some of the best invoicing on the market, which is why we’ve named it the Best Accounting Software for Invoicing. Zoho Books’ invoicing features make it ideal for business in need of international invoicing. The only drawback is the lack of payroll, which could be a deal-breaker for some businesses.

If your business does need payroll or if you’re looking for free accounting software, Wave might be the better choice for your business. Wave is ideal for small business owners looking for easy bookkeeping software to manage their businesses with. There’s a reason we’ve named it the Best Free Accounting Software. Wave has an impressive features set — particularly for a free app — and offers a few key additions that Zoho Books lacks(payroll, lending, and the brand new eCommerce checkouts tool). It also has a strong Etsy integration, making it ideal for Etsy sellers.

Maybe after reading about Zoho Books and Wave, neither option seems like the perfect fit for your business. Don’t worry! Our comprehensive accounting reviews can help you find the best software for your business. If you need extra help deciding, read our Complete Guide To Choose Online Accounting Software.

Check out our full Zoho Books and Wave reviews for more information. Take advantage of Zoho Books’ free trial or start a free account with Wave to get a feel for each software, and feel free to reach out with any questions you may have.

The post Zoho Books VS Wave appeared first on Merchant Maverick.

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FreshBooks VS Wave

Freshbooks-vs-Wave

FreshBooks VS Wave

Accounting

✓

Features

✓

Pricing

✓

Tie

Hardware & Software Requirements

Tie

Tie

Users & Permissions

Tie

✓

Ease of Use

✓

Mobile Apps

✓

Customer Service & Support

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

✓

Integrations

Tie

Security

Tie

?

Final Verdict

?

ReviewVisit

ReviewVisit

Choosing the right software for your business isn’t easy, especially when you have two great choices to pick from like FreshBooks and Wave.

FreshBooks has been helping small business owners with their invoices and expenses since 2003. The software offers strong mobile apps, excellent customer service, and good customer reviews. A recent redesign has made the software easier to use than ever.

Wave is completely free accounting software that has grown to support over 3 million users. The app offers strong accounting with ample features including project management, invoicing, and a basic ecommerce tool. Wave is also the only accounting software besides QuickBooks Online to offer lending services.

But which software is better? That’s what we’re here to tell you.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. So to make your decision easier, we’ve carefully researched and tested both products. We’ll put FreshBooks and Wave head to head by comparing features, pricing, customer experience, reputation, and more, so you don’t have to. Read on to see which software is best for your business.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Wave

This one’s easy. Wave wins by default because FreshBooks is not accounting software. While FreshBooks does offer a few basic bookkeeping tools, it does not use double-entry accounting. It also has no bank reconciliation features, no accounts payable, and no customizable chart of accounts.

Wave, on the other hand, uses double-entry accounting and offers both accrual and cash-basis accounting. The software offers bank reconciliation, journal entries, a detailed chart of accounts, and basic reporting,

Features

Winner: Wave 

FreshBooks Features Wave

✓

Invoicing

✓

✓

Estimates

✓

✓

Client Portal

✓

✓

Expense Tracking

✓

✘

Bank Reconciliation

✓

✓

Chart of Accounts

✓

✘

Accounts Payable

✓

✘

Inventory

✓

✓

Time Tracking

✓

✓

Project Management

✓

✓

Reports

✓

✘

Journal Entries

✓

✓

Sales Tax

✓

✓

Multi-Currency

✓

✘

Lending

✓

The two programs are pretty on par in terms of invoice template choices, time tracking, importing/exporting, and multi-currency support. However, Wave’s features are more developed than those of FreshBooks. Wave offers 5 more reports than FreshBooks, better project management, and better inventory. Wave also offers key features that FreshBooks is missing like bank reconciliation, vendor management, accounts payable, and a brand new ecommerce tool called Checkouts.

Pricing

Winner: Wave

You can’t beat free. Wave costs $0/month — no gimmicks, no tricks, no limitations. The only thing you have to pay for is adding payroll, payment processing, or bookkeeping help from a professional Wave advisor. FreshBooks costs $15/month – $50/month. FreshBooks is more expensive and offers fewer features, so businesses get a lot more bang for their buck with Wave.

Hardware & Software Requirements

Winner: Tie

As cloud-based software, both FreshBooks and Wave are compatible with nearly any device so long as you have an internet connection.

Users & Permissions

Winner: Tie

Neither FreshBooks nor Wave shines in the “additional users” department. With FreshBooks, each pricing plan only comes with one user. You can add additional users for $10/month each, but you can’t set any user permissions. Wave was designed for the small business owner, meaning it’s not possible to have additional users. You can add “collaborators” who can view or view and edit your Wave account, but there are no permissions available here either.

If you’re looking for multiple users and strong users permissions, take a look at Zoho Books, QuickBooks Online, or Xero instead.

Ease Of Use

Winner: FreshBooks

Both Wave and FreshBooks have attractive interfaces that are well-organized and easy to use. However, FreshBooks has better customer support which helps you learn to navigate the software faster.

Mobile Apps

Winner: FreshBooks

FreshBooks is well-known for its strong, full-featured mobile apps. Wave, on the other hand, has separated its apps into Receipts by Wave and Invoices by Wave. Neither app is full-featured and many users complain that they want a single, all-encompassing Wave app instead.

Customer Service & Support

Winner: FreshBooks

When it comes to customer support, FreshBooks can’t be beaten. FreshBooks offers great phone support with hardly any wait times. Representatives are generally friendly, helpful, and well-informed. In addition, FreshBooks offers a detailed help center, email support, and a comprehensive blog. Wave only offers phone support for payroll and payment processing users, leaving regular users a well-developed help center and email support. Most emails are responded to within a day, but it’s harder to get a quick response than with FreshBooks.

Negative Reviews & Complaints

Winner: Tie

Both FreshBooks and Wave are loved by customers. Each software receives mostly positive reviews, with a few negative complaints thrown in. For FreshBooks, users call for more features, better invoice templates, and true accounting. Wave users complain of limited mobile apps, lack of integrations, and occasionally slow servers.

Positive Reviews & Complaints

Winner: Tie

FreshBooks and Wave have a similar ration of positive to negative complaints. Most users seemed thrilled with both programs and each software receives high marks across popular review sites. FreshBooks users love that the software is easy to use, offers professional invoicing, and has great customer service. Wave users love the software’s features, ease of use, and, of course, its price.

Integrations

Winner: FreshBooks

FreshBooks offers 70+ integrations as opposed to Wave’s four, so if add-ons are important to your business, FreshBooks is clearly the way to go.

Security

Winner: Tie

Both FreshBooks and Wave offer strong security. They each use 256-bit SSL encryption, redundancy, and regular backups, and they each host their servers with trusted security providers.

And The Winner Is…

While FreshBooks reputation for ease of use is well-earned, the software doesn’t always live up to these high expectations. First of all, despite its advertising, FreshBooks isn’t true cloud accounting software.

Wave, on the other hand, offers true accounting software and an incredible number of features for $0/month. In addition to the basic tools you’d expect from an accounting software, features like lending and Checkouts set the software apart and allow Wave to give even QuickBooks Online a run for its money. For small businesses looking to save money, you can’t beat Wave. The software is also ideal for Etsy users and ecommerce businesses.

That being said, businesses that don’t need the accounting capabilities or a large number of features may find FreshBooks to be a good choice. The software has better mobile apps and customer service than Wave. However, FreshBooks is far more expensive than Wave and your money only goes a short way with the software.

Perhaps, after reading this, neither option seems like the right choice for you. Our comprehensive accounting reviews can help you explore all of your options so you can choose the perfect software for your business.

Check out our full FreshBooks and Wave reviews for more information.

The post FreshBooks VS Wave appeared first on Merchant Maverick.

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FreshBooks VS Classic FreshBooks

 

FreshBooks review

FreshBooks VS FreshBooks Classic

Tie

Accounting

Tie

Features

✓

Pricing

✓

Tie

Hardware & Software Requirements

Tie

✓

Mobile Apps

Tie

Customer Service & Support 

Tie

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

✓

Integrations

Tie

Security

Tie

?

Final Verdict

?

Visit

Visit

FreshBooks has been a part of the accounting scene since 2003 and is one of the biggest names in the invoicing and accounting industry. In 2017, the company launched a completely new version of the software, but unlike most companies, FreshBooks didn’t simply eradicate the older version — users can choose between FreshBooks or Classic FreshBooks.

But which version is better? How does new FreshBooks stack up to the tried and true Classic FreshBooks? What’s the difference between each version, and — most importantly — which version of FreshBooks is right for you?

That’s exactly what we’re here to answer. We’ll give you the complete lowdown on both FreshBooks and Classic FreshBooks, and only one can come out on top.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. So to make your decision easier, we’ve carefully researched and tested both products. We’ll put FreshBooks and Classic head to head by comparing features, pricing, customer experience, reputation, and more, so you don’t have to. Read on to see which software is best for your business.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Tie

Despite the company’s name — “FreshBooks Cloud Accounting” — neither FreshBooks nor Classic FreshBooks is actually a true accounting software program. The apps don’t use double-entry accounting and don’t support key accounting features like accounts payable and bank reconciliation. The latest version of FreshBooks does offer a chart of accounts, which is a step in the right direction, but you can’t customize or edit the accounts.

My main beef with FreshBooks as a company isn’t that the apps lacks these features, but that FreshBooks advertises itself as a cloud accounting software when it’s really more of an invoicing and light bookkeeping tool.

For small business owners who aren’t looking for a full accounting package and just want a few tools to manage their income and expenses, FreshBooks or Classic FreshBooks could both be good choices.

Features

Winner: Classic FreshBooks

FreshBooks Features Classic FreshBooks

✓

Invoicing

✓

✓

Estimates

✓

✓

Client Portal

✓

✓

Contact Management

✓

✓

Expense Tracking

✓

✘

Inventory

✓

✓

Project Management

✓

✓

Time Tracking

✓

✓

Reports

✓

✘

Default Email Messages

✓

✘

Request Customer Review

✓

✓

Sales Tax

✓

✓

Multi-Currency

✓

✓

Importing/Exporting

✓

On paper, the programs look pretty similar in terms of features, but the depth of Classic FreshBooks’ offerings far surpasses the newer version of FreshBooks.

Classic FreshBooks offers a full inventory feature, the ability to create default email messages, the ability to request customers reviews, more advanced time tracking, and nearly 20 more reports than FreshBooks. The one feature FreshBooks has over Classic FreshBooks is a built-in communication feature for you to talk with customers and your employees.

While the company is constantly updating FreshBooks, the new version has a long way to go before it can stand up to the robust, developed feature set of Classic FreshBooks.

Pricing

Winner: Classic FreshBooks

FreshBooks offers three pricing plans ranging from $15 – $50/month. Classic FreshBooks offers four pricing plans ranging from $12.95 – $39.95/month plus a fifth custom plan for larger businesses. You can receive a small discount for purchasing a yearly subscription instead of a monthly subscription of either version of the software.

Classic FreshBooks takes the cake here because it’s more scalable and gives you more bang for your buck in terms of features.

Hardware & Software Requirements

Winner: Tie

As cloud-based software, both FreshBooks and Classic FreshBooks are compatible on nearly any device so long as you have an internet connection.

Users & Permissions

Winner: Classic FreshBooks

Neither FreshBooks nor FreshBooks Classic is particularly well-suited for companies with multiple users. FreshBooks only offers a single user for each price plan, although you can purchase additional users for $10/month each. Classic FreshBooks offers 1 – 2 users depending on the pricing plan, and additional users can be purchased for $10/month each.

Classic FreshBooks requires extra users to log in with your same login, though you can set user permissions, whereas FreshBooks has no user permissions at this time. Classic FreshBooks wins by a hair in this category.

Ease Of Use

Winner: FreshBooks

Here is where the new design shines. The current version of FreshBooks worked out some of Classic FreshBooks’ navigational difficulties, making FreshBooks easier to use than ever. Both apps share the same great customer service so it’s easy to get help if you want some extra assistance learning and using the latest software.

Mobile Apps

Winner: Tie

FreshBooks has always been known for strong mobile apps, and the latest version is no exception. Both FreshBooks and Classic FreshBooks offer fully-featured mobile apps that make it easy to run your small business on the go.

Customer Service & Support

Winner: Tie

FreshBooks, as a company, offers some of the best customer support around. Both FreshBooks and Classic FreshBooks offer phone support, email support, in-software help, and well-developed help centers. Phone wait times are almost non-existent and representatives are friendly and helpful. The company also maintains an active FreshBooks blog with tons of information on how to succeed as a small business.

Negative Reviews & Complaints

Winner: Tie

For as long as we’ve been following FreshBooks, the software has been much-loved by users and received only a small handful of complaints. Today this is still the case. The tricky part about FreshBooks reviews is that it’s nigh impossible to tell which reviews refer to New FreshBooks and which refer to Classic FreshBooks.

Some users complain that they don’t like the new update and miss Classic FreshBooks, while others praise the new version and say they like it more than the original. The verdict is still out on which version users will end up likely best, which is why we’ve left this category as a tie.

Positive Reviews & Testimonials

Winner: Tie

Both Classic FreshBooks and FreshBooks have received positive praise from customers and high marks as far as customer ratings go. While it is again difficult to tell which version customers are referencing in reviews, it’s easy to see this pattern: users love that FreshBooks is easy to use, has excellent customer service, and offers great invoicing with strong mobile apps.

Integrations

Winner: FreshBooks

When the new version of FreshBooks first launched, integrations were a big issue. Now FreshBooks offers 70+ integrations, which beats out Classic FreshBooks’ 40+ integrations.

Security

Winner: Tie

FreshBooks uses the same security measures for both of version of the software. The company uses 256-bit SSL encryption, Cisco-powered firewalls, and regular intrusion detection and vulnerability testing. Data is backed up onto two Rackspace-hosted servers in undisclosed locations.

And The Winner Is…

Classic FreshBooks!

I’m a firm believer in the “if it ain’t broke, don’t fix it philosophy.” There are certain aspects of Classic FreshBooks that could be improved, but instead of adding more features, FreshBooks sacrificed looks for functionality with the release of New FreshBooks. While New FreshBooks is slightly easy to navigate and has a nice UI, FreshBooks already had a nice UI and user experience — plus, what FreshBooks users were crying out for were more features, not less. FreshBooks doesn’t have an inventory feature and is missing key automations like default email messages that were available with Classic FreshBooks but are no missing.

And to top it off, not only does FreshBooks offers fewer features than Classic FreshBooks, but it’s also more expensive and supports fewer users (with no accountant access either).

To be fair, the company is constantly releasing updates for FreshBooks and the new version offers far more integrations than Classic FreshBooks.

In this case, choosing which program is right for you will highly depend on the features your business needs. New users who haven’t used FreshBooks Classic may find the newer version suits their needs well. Veteran FreshBooks users might want to switch back to Classic until the latest version goes through a few more round of updates.

Or, maybe after reading this review you want to find a less expensive invoicing solution or a full-fledged accounting solution. Our invoicing reviews and accounting reviews can help!

If you’re an existing FreshBooks user, we’d love to hear from you! Let us know which version you like best in the comments below.

The post FreshBooks VS Classic FreshBooks appeared first on Merchant Maverick.

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Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster

Slow Paying Customers? 10 Tips To Get Your Invoices Paid Faster

If your company relies on invoices, you’re probably all too familiar with slow-paying customers. According to the popular accounting software Xero, “More than a third of small business invoices are paid late.”

Late invoices seem like an inevitable part of running a business, but they don’t have to be. That’s why we’ve created a list of practical steps you can take to increase your chances of getting paid on time.

Here are our top ten tips to get your invoices paid faster.

Send Online Invoices

If you’re still mailing invoices manually, now is the time to start saving time and money by switching to e-invoices. Sending invoices online is easy, cost-effective and best of all — fast.

Instead of spending time printing invoices, stuffing envelopes, and waiting on the mailman, you can send your invoices to customers instantly. Your customers get their invoices faster, which means you get paid quicker. And you won’t need to worry any longer about whether your invoice got lost in the mail or sent to the wrong address. Most invoicing software programs offer invoice tracking so you can see exactly when your customer receives and views their online invoice.

When it comes to small businesses, time is money. But money is also money. With e-invoices, you’ll save both. While you may need to spend a small monthly fee on invoicing or accounting software, you won’t have to purchase envelopes, ink, paper, stamps, etc., and you can use your newfound free time for managing other more important aspects of your business.

Take a look at some of our favorite online invoicing options or continue reading to learn all of the perks invoicing software offers.

Offer Online Payments Options

Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster

One of the other great perks of using online invoices is the ability to accept online payments. When it comes to getting invoices paid fast, the key is to make it as easy as possible for customers to pay you.

That’s why payment processors are so important. They’re quick, convenient, and available with almost all invoicing and accounting programs offers multiple payment processing options.

According to the popular invoicing software FreshBooks, offering an online payment option significantly increases your chances of being paid on time; and according to Xero, companies that accept both online credit card payments and Paypal payments get paid 20 days faster than those that don’t.

To learn more about accepting online payments, download our free Beginner’s Guide to Payment Processing. If you’re already sending online invoices but aren’t yet accepting online payments, read our post The Best Payment Processors For Accounting Software.

Choose The Right Invoice Template

Believe it or not, choosing the right invoice template can play a role in getting your invoices paid on time.

Most invoicing software programs offer multiple templates options. You want to pick a template that is attractive, simple, and clear to read. This includes choosing a legible, easy-to-read font like Arial or Helvetica (I usually shy away from serif fonts, like Times New Roman, as they are harder to read and often make the invoice look outdated and cluttered).

According to Invoice Ninja:

[An invoice] that’s colorful, distinctive, and attractive in appearance will stand our in their minds. This can help clients to remember your invoice and nudge them towards paying promptly.

Not only do you want an attractive invoice, but you also want an invoice that clearly shows:

  • The invoice due date
  • The invoice amount
  • Your company’s contact and payment information
  • The products or services the customer is paying for
  • The invoice’s terms and conditions

Clarifying and highlighting this information makes it easier for your customers to know when and how to pay you, which can speed up the payment process.

Here are a few examples of strong, attractive invoice templates:



Pick The Right Date

Choosing an invoice template with a clear due date is a definite step in the right direction, but you also want to make sure you choose the right due date.

Oftentimes, you’ll see invoices that say “due upon receipt.” This is a perfect example of what not to do. It doesn’t give a clear due date, which encourages late payments. Another term you often see is a “Net 30” due date. This means that the invoice payment is due 30 days after the invoice is sent. Some customers may not be familiar with this notation. Instead, be clear and specific. If an invoice is due 30 days after it’s sent and it was sent on September 1st, just say that the invoice is due September 30th. When customers have a set-in-stone deadline, they are more likely to pay on time.

If you want your invoices to be paid faster, also consider moving up your due date. If you typically have invoices due 30 days after they’re sent, try moving that up to 15 days. This way you are spending less time waiting on cash.

Give Discounts

merchant cash advance industry

 

You catch more flies with honey than vinegar, and invoicing is no exception. A great way to get your invoices paid fast is to offer a small discount for customers who pay early. Maybe consider offering a 5% or 10% discount for customers who pay their invoices in the first ten days. Everyone likes saving money, so those customers who are looking for savings will jump on the deal and pay their invoice quickly. While you may lose a small amount of your sale, you’ll receive cash faster, which may be more than worth it.

This option may not be for everyone or every type of business, but is definitely worth considering if your business is struggling with cash flow due to late invoice payments.

Enforce Late Fees

If incentives don’t work, you can also consider charging a late fee or interest for late payments. While no one likes to be the bad cop, sometimes you have to take drastic measures to receive your hard-earned money.

If you do go this route, be sure to clearly state your late fee policy on your invoice’s terms and conditions and send reminders to inform your customers that you will begin calculating interest or charging a fee if you don’t receive your invoice in time.

Send Invoices Right Away

Get your merchant funds fast. Image description: Clock with money underneath it

Your customers can’t pay you if they haven’t been sent an invoice. That’s why staying on top of invoicing is one of the most important things a business owner can do. The sooner you send your invoice the sooner you can get paid. Plus, customers are more likely to pay quickly for items or services that they just received.

It can be easy to become overwhelmed and fall behind on invoices. Luckily, there are tons of great invoicing tools out there to help automize your invoicing process. Nearly every invoicing software allows you to send recurring invoices to repeat customers. Apps like Zoho Invoice and QuickBooks Online allow you to auto schedule invoices in advance to help save time. And programs like Invoice2go offer great mobile apps so you can send invoices on straight from your phone.

Send Payment Reminders

Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster

Another way to avoid late-paying customers is to send regular invoice payment reminders. Sometimes people simply forget and need a nudge in the right direction toward payment. Send invoice reminders a few days before the invoice is due, the day the invoice is due, and a few days after the invoice is missed.

Hopefully, the first reminder will be enough to get you your payment. If not, continue sending email reminders and calling them on the phone. No one likes to chase down payments or be a nag, but it’s your responsibility to follow up with slow-paying customers.

One of the perks of invoicing software is that most programs allow you to create automatic payment reminders, which saves a lot of time. These programs almost always have an Accounts Payable report as well so you can view your customer’s outstanding balances without having to manually track who hasn’t paid yet.

Invoice In Phases

If you run a project-based business, consider invoicing in phases. Instead of sending one giant invoice at the end of the job, maybe try invoicing once certain phases of the tasks are complete. Or, consider charging a deposit for your work to discourage customers from avoiding payment altogether. This way, you can even out your cash flow.

Use Invoicing Software

When it comes to getting your invoices paid on time, invoicing software is integral. With it, you can send invoices quickly, automize your invoicing process, and encourage customers to pay quickly with online payments.

Here at Merchant Maverick, we highly recommend that small businesses use invoicing software at the very least, or purchase full-fledged accounting software to send online invoices and balance the books. In this post, we’ve already mentioned several of the great perks of e-invoicing and invoicing software.

Here is a full list of the reasons you should use invoicing software:

  • To automate your invoicing process
  • To send online invoices to customers
  • To accept invoice payments from customers directly online
  • To see when your customers have received and viewed their invoices
  • To send automatic payment reminders to late-paying customers
  • To construct default terms and conditions that automatically appear on every invoice
  • To create default invoice email messages to make sending invoices faster
  • To run helpful reports like Accounts Receivable and Sales by Customer
  • To send invoices on the go with mobile apps
  • To save on paper, ink, and time

If you’re ready to start getting faster invoice payments by using invoicing software, here is a comparison of the top invoicing software options that have the best offerings:

Zoho Invoice Invoice Ninja Invoicera FreshBooks

Review Visit

Review Visit

Review Visit

Review Visit

Pricing

$0 – $29/month

$0 -$12/month

$0 – $15/month

$0 – $50/month

Customer Support

Very Good

Very Good

Good

Very Good

Ease of Use

Very Easy

Easy

Very Easy

Very Easy

Business Size

Small – Medium

Small

Small – Medium

Small

Number of Invoice Templates

16

10

7

2

Autoschedule Invoices

✓

✘

✓

✘

Payment Reminders

✓

✓

✓

✘

International Invoicing

✓

✘

✘

✘

Number of Payment Processors

11

35

30

2 – 6

If you want the same great invoicing features but with added bookkeeping functionality, here are the four best accounting programs for invoicing:

Zoho Books QuickBooks Online Wave Zipbooks

ReviewVisit

ReviewVisit

ReviewVisit

ReviewVisit

Pricing

$0 – $29/month

$15 – $50/month

$0

$0 – $125/month

Customer Support

Very Good

Poor

Good

Good

Ease of Use

Very Easy

Easy

Very Easy

Easy

Business Size

Small

Small – Medium

Small

Small

Number of Invoice Templates

15

5

3

1

Autoschedule Invoices

✓

✓

✘

✘

Payment Reminders

✓

✓

✓

✓

International Invoicing

✓

✘

✘

✘

Invoice Strength Score

✘

✘

✘

✓

Number of Payment Processors

12

15

2

2

If you need help deciding which software is right for you, check out our comprehensive invoicing software reviews, take a look at our post How To Choose Invoicing Software, or leave us a comment below.

What If My Customers Still Don’t Pay Their Invoices On Time?

So what happens if you try all 10 of these tips and you still have late-paying customers? That’s where invoice financing comes in.

With invoice financing, you can sell your unpaid invoices to a factoring company in exchange for immediate cash or you can use your invoices as collateral for a line of credit.

If you’re suffering from inconsistent or poor cash flow due to slow-paying customers, invoicing financing might be the perfect solution for you. Read our Merchant’s Guide To Invoice Financing to learn more or compare the invoice financing options.

Instead of feeling powerless against late invoices, you now have ten tricks under your sleeve to help get those invoices paid faster (eleven if you count invoice financing!) Take action against slow-paying customers and start getting your invoices paid faster today.

The post Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster appeared first on Merchant Maverick.

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Zoho Invoice VS Zoho Books

Zoho Invoice VS Zoho Books

Accounting

✓

Features

✓

Pricing

✓

Tie

Hardware & Software Requirements

Tie

Tie

Users & Permissions

Tie

✓

Ease of Use

Tie

Mobile Apps

Tie

Tie

Customer Service & Support

Tie

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

Integrations

✓

Tie

Security

Tie

?

Winner

?

Review Visit

Review Visit

Zoho offers a suite of over 40 products including Zoho Invoice and Zoho Books. But when two sibling products from the same family tree go head to head, which comes out on top? That’s what we’re here to find out.

Zoho Invoice and Zoho Books both offer incredible invoicing and international business features for small businesses, as well as strong mobile apps, excellent customer service, and positive customer reviews.

Zoho Invoice was created in 2008 and today has grown to offer over 16 invoice templates, multi-lingual invoicing, and tons of invoicing automations. Top that with a beautiful client portal, project management, expense tracking, and ten different payment gateway options and it’s easy to see why Zoho Invoice is our top 5-star invoicing software.

The Zoho Books software we know today was redesigned and launched in 2014. The software offers the same great invoicing features as Zoho Invoice but adds accounting features like journal entries, bank reconciliation, and accounts payable. The software also offers inventory, tracking categories, and a few more third-party integrations, which has earned it the Merchant Maverick title of Best Accounting Software For Invoicing.

But which bookkeeping software app is better, and which is more suited for your small business? Let’s find out.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. So to make your decision easier, we’ve carefully researched and tested both products. We’ll put Zoho Invoice and Zoho Books head to head by comparing features, pricing, customer experience, reputation, and more, so you don’t have to. Read on to see which software is right for your business.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Zoho Books

Zoho Books is the clear winner here because Zoho Invoice isn’t accounting software — it’s simply straightforward invoicing software.

Zoho Invoice does provide a few basic bookkeeping tools like expense tracking and mileage deductions which might be enough for some smaller businesses. However, if you want true accounting, Zoho Books is the way to go.

Zoho Books provides the full accounting package, so much so that it gives QuickBooks Online a run for its money. Zoho Books features bank reconciliation, journal entries, ample reports, fixed asset management, and a customizable chart of accounts.

Features

Winner: Zoho Books

Zoho Invoice VS Zoho Books

✓

Invoicing

✓

✓

Estimates

✓

✓

Expense Tracking

✓

✘

Bank Reconciliation

✓

✘

Chart of Accounts

✓

✘

Fixed Asset Management

✓

✓

Contact Management

✓

✘

Accounts Payable

✓

✓

Time Tracking

✓

✓

Project Management

✓

✘

Inventory

✓

✓

Reports

✓

✘

Tracking Categories

✓

✘

Print Checks

✓

✓

Mileage Deductions

✓

✓

Sales Tax

✓

✘

Tax Support

✓

✓

Importing & Exporting

✓

The chart makes it easy to see which app takes the cake in this category.

Both Zoho Invoice and Zoho Books have some of the best invoicing features and automations on the market. The features that the programs do share are nigh identical; the main difference is that Zoho Books takes the UI and feature set of Zoho Invoice and ups the ante with more features.

While Zoho Invoice is incredibly full-featured for an invoicing software, Zoho Books add accounts payable, inventory, tracking categories, and tax support in addition to the accounting features mentioned earlier.

Pricing

Winner: Zoho Books

Zoho Invoice and Zoho Books have very similar pricing structures. Zoho Invoice offers a forever free plan as well as three paid plans ranging from $9 – $29/month. Zoho Books’ three pricing plans also range from $9-$29/month.

While Zoho Invoice seems like it has the edge by offering a free plan, the plan itself is severely limited and impractical for most businesses. We give this category to Zoho Books because you get much more bang for your buck in terms of features for the same exact price as Zoho Invoice.

Hardware & Software Requirements

Winner: Tie

As cloud-based software programs, both Zoho Invoice and Zoho Books are compatible with nearly any device so long as you have an internet connection. Both also offer an incredible number of mobile apps for Apple products, Androids, Microsoft phones, Smartwatches, and even Kindles.

Users & Permissions

Winner: Tie

Zoho Invoice’s largest plan allows 10 users. Similarly, Zoho Books’ largest plan allows nine users and one accountant. Additional users can be added to each software. Both programs also offer decent user permissions and the ability to approve transactions for added control, putting them on the same footing as far as user permissions go.

Ease Of Use

Winner: Zoho Invoice

Both Zoho Invoice and Zoho Books are generally easy to use. Each software can be difficult to navigate at times, but luckily there are ample support options to help you find what you’re looking for. The UI and user experience are almost identical with each program, but we gave Zoho Invoice the win here based on the sheer fact that there are fewer features to have to learn and navigate.

Mobile Apps

Winner: Tie

Both Zoho Invoice and Zoho Books offer strong, full-featured mobile apps that receive much praise from customers.

Customer Service & Support

Winner: Tie

Both Zoho Invoice and Zoho Books have excellent customer support (are you catching the theme yet?). Since Zoho is in charge of both products, it’s not surprising that their customer support options are similar. In my experience, phone wait times are short, email responses are generally quick, and representatives are usually friendly and helpful for both products. The best part is that Zoho Invoice’s and Zoho Books’ knowledgebases can be accessed directly from within the respective programs to make your life a bit easier.

Negative Reviews & Complaints

Winner: Tie

Both Zoho Invoice and Zoho Books receive predominately positive customer reviews. The products have such a similar number of negative reviews that we had to give them a tie.

The complaints that do exist regarding Zoho Invoice mostly revolve around lack of integrations, a few poor customer support experiences, and occasional navigational difficulties. Complaints about Zoho Books center around a similar lack of integrations, the lack of payroll, and the desire for more features (mostly more reporting and user permissions).

Positive Reviews & Testimonials

Winner: Tie

Again, Zoho Invoice and Zoho Books tie in the number of positive customer reviews they receive. Both receive high ratings across the board from sites like G2Crowd and GetApp, as well as iTunes and the Google Play Store.

Zoho Invoice customers love how easy the software is to use, how professional the invoices look, and the ability to run their business on the go. Zoho Books users also love how easy the software is to use and appreciate how affordable it is, especially considering the robust feature set.

Integrations

Winner: Zoho Books

Zoho Invoice has 25 integrations as opposed to Zoho Books’ 33, which gives Zoho Books the edge here.

Security

Winner: Tie

Zoho uses the same security measures to protect both Zoho Invoice and Zoho Books, including SSL encryption, two-factor authentication, and regular virus detection and prevention to protect customer data. The company also performs regular data backups onto multiple servers in undisclosed locations, which are guarded by a number of physical security measures. Visit Zoho’s website to learn more.

And The Winner Is…

Zoho Invoice VS Zoho Books

While both products are similar and are tied in a number of categories, Zoho Books is undeniably a step up from Zoho Invoice. I almost always recommend using full accounting software over solely invoicing software. When it comes to running your small business, you need a way to balance the books and keep strong accounting records for tax season.

This is why Zoho Books was the clear winner from the start. Not only do you get more bang for your buck with Zoho Books in terms of features, you also can rest assured that your books are balanced correctly. Key features like bank reconciliation, accounts payable, inventory, and tax support make Zoho Books a more practical small business solution. Plus, you get the same great mobile apps and customer service but with more integrations.

However, this doesn’t mean that Zoho Books is necessarily the right choice for everyone. If you are looking for invoicing software and don’t want the extra accounting features, Zoho Invoice is one of best — if not the best — invoicing software out there. It offers great invoice templates and customizations, expense tracking, a client portal, and project management — all at a relatively affordable price.

Zoho Invoice and Zoho Books each boast strong mobile apps, excellent customer support, almost identical pricing structures, and tons of positive customer reviews, so you really can’t go wrong with either choice (unless your small business needs payroll, in which case you’ll need a more advanced accounting software). The decision ultimately comes down to what features your business needs.

If you want to explore all of your options, check out our other accounting software reviews and/or view our full invoicing software reviews.

The post Zoho Invoice VS Zoho Books appeared first on Merchant Maverick.

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Zoho Books VS QuickBooks Online

Zoho Books VS QuickBooks Online

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Accounting

Tie

Features

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Pricing

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Hardware & Software Requirements

User Permissions

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Ease of Use

✓

Mobile Apps

✓

Customer Service & Support

Negative Reviews & Complaints

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Positive Reviews & Testimonials

Integrations

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Tie

Security

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Final Verdict

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Review Visit

Review Visit

We all love a good underdog story. But when underdog Zoho Books takes on one of the biggest names in accounting, QuickBooks Online, can this lesser-known software give QBO a run for its money? Well, that’s what we’re here to find out.

Redesigned and relaunched in 2014, Zoho Books continues to only get better. The software offers ample features, the most beautiful invoicing out there (including the ability to send invoices in multiple languages), excellent customer service, and strong mobile apps.

QuickBooks Online has been around since 2004. With advanced accounting, an impressive feature set, almost 280 integrations, and a brand new lending feature, it’s easy to see why QuickBooks Online is so popular.

But which accounting software is better, Zoho Books or QuickBooks?

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. To make your decision easier, we’ve carefully researched and tested both products. We’ll compare Zoho Books and QuickBooks Online (QBO) based on features, pricing, customer experience, reputation, and more, so you don’t have to.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Tie

Both Zoho Books and QuickBooks offer strong accounting. Each uses double-entry accounting and supports both accrual and cash-basis accounting. In terms of accounting features, both offer a customizable chart of accounts, ample reports, journal entries, and bank reconciliation.

Features

Winner: QuickBooks Online

Zoho Books VS QuickBooks Online

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Invoicing

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Multiple Invoice Languages

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Estimates

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Expense Tracking

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Bank Reconciliation

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✓

Chart Of Accounts

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✓

Fixed Asset Management

✓

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Depreciation

✓

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Contact Management

✓

✓

Accounts Payable

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✓

Time Tracking

✓

✓

Project Management

✓

✓

Inventory

✓

✓

Reports

✓

✓

Tracking Categories

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Budgeting

✓

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Print Checks

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✓

Multi-Currency Support

✓

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Sales Tax

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Tax Support

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Importing & Exporting

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Lending

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Note: Feature availability varies by pricing plan.

Zoho Books and QuickBooks Online are mostly on par in terms of features. Each offers beautiful invoicing templates and invoicing automation, as well as inventory, contact management, expense tracking, accounts payable, and project management. While Zoho Books puts up a great effort, QuickBooks Online edges out the competition — but just barely.

QuickBooks Online offers several features that Zoho doesn’t, including budgeting and small business lending. In addition, QuickBooks Online has a much more developed time tracking feature and more tax support. QuickBooks Online gives users the option to add payroll to their software (for an extra cost), whereas Zoho Books has no payroll support.

One place where Zoho Books actually trumps QuickBooks is international invoicing. QuickBooks doesn’t allow you to send invoices in multiple languages whereas Zoho Books does. However, this unique touch isn’t enough to make up for the lack of budgeting and limited time tracking.

Pricing

Winner: Zoho Books

QuickBooks Online offers three pricing plans ranging from $15 – $50/month, with payroll support costing an extra $39 – $99/month (plus $2/month per employee). Zoho Books offers three pricing plans as well ranging from $9 – $29/month.

Zoho Books takes the cake as far a pricing goes, especially considering that you get nearly all of the same features as QuickBooks Online for almost half the cost.

Hardware & Software Requirements

Winner: Zoho Books

As cloud-based software, QuickBooks Online works with nearly any device so long as you have an internet connection and are using one of the following browsers:

  • Google Chrome
  • Mozilla Firefox
  • Internet Explorer 10+
  • Safari 6.1+

Similarly, Zoho Books is also cloud-based and compatible with nearly any device and works with these browsers:

  • Internet Explorer
  • Mozilla Firefox
  • Safari
  • Google Chrome
  • Opera

Both also offer mobile apps available for Apple products and Androids, although Zoho takes it up a level by offering mobile apps for Microsoft phones and Kindles as well. This, along with supporting Opera, is why Zoho Books wins in terms of hardware and software requirements.

Users & Permissions

Winner: QuickBooks Online

Zoho Books’ largest plan offers 9 users plus one accountant; QuickBooks Online’s largest plan offers 5 users plus two accountants. Additional users can be added to each plan.

Zoho Books offers very limited users permissions, making QuickBooks Online the clear winner here. With QuickBooks Online you can set multiple user roles and control each user’s access to certain features. Because of this important distinction, QBO wins this category despite offering few users.

Ease Of Use

Winner: Zoho Books

Both Zoho Books and QuickBooks Online are relatively easy to use. Both have modern UIs that are well-organized and easy to learn. However, each software suffers from the occasional navigational difficulty. That being said, Zoho Books has far better customer support and fewer bugs and glitches making it easier to learn and navigate.

Mobile Apps

Winner: Zoho Books

Both Zoho Books and QuickBooks Online offer strong mobile apps. Zoho Books receives 4.8/5 stars on iTunes and 4.5/5 stars on the Google Play Store. QuickBooks Online receives 4.7/5 stars on iTunes and 4.3/5 stars on the Google Play Store.

While both company’s apps are fairly close in ratings, Zoho Books’ mobile apps are full-featured and compatible with Microsoft phones and Kindles in addition to iPhone and Androids, making it the winner here.

Customer Service & Support

Winner: Zoho Books

Zoho Books has the better customer support by far. In my experience, representatives respond quickly to emails and I have hardly ever been put on hold when calling their support team. Representatives are generally kind and informative. Additionally, Zoho Books has a well-developed knowledge base with tons of articles, videos, guides, and more — and it all can be accessed directly from within the software to boot.

In the past, QuickBooks Online had notoriously poor customer support and extremely long phone wait times. While the company has been remedying this over the last year or so, QBO still has a ways to go if they want to top Zoho Books in the customer service arena.

Negative Reviews & Complaints

Winner: QuickBooks Online

This is one category QuickBooks Online should not want to win. QuickBooks Online has received many complaints. Most complaints revolve around poor customer service experiences, bugs, limited apps, and even a few unauthorized charges.

Zoho Books, on the other hand, has received far fewer customer complaints (granted Zoho Books has far fewer customer reviews in general, but the ratio of negative to positive reviews is smaller). The complaints that do exist revolve around the lack of payroll and limited integrations.

Positive Reviews & Testimonials

Winner: Zoho Books

While QuickBooks Online has a higher number of positive reviews overall, Zoho Books has a higher percentage of positive reviews, which is why it wins this category. Zoho Books receives 4.5/5 stars on Capterra and 4.6/5 stars on G2Crowd. Users love that the software is easy to use, affordable, and updated frequently. They also like the mobile apps.

Integrations

Winner: QuickBooks Online

There’s no question here. QuickBooks Online offers around 280 integrations as opposed to Zoho Books’ 33.

Security

Winner: Tie

Both Zoho Books and QuickBooks Online implement strong security measures. Each uses data encryption, redundancy, routing testing, and physical security measures to protect their data centers.

To learn more about cloud security read our posts Is My Accounting Safe In The Cloud? and What Is SSL? A First Look At Online Security.

And The Winner Is…

Zoho Books VS QuickBooks Online

Zoho Books definitely gives QBO a run for its money. However, there a few areas where QuickBooks Online beats out its opponent. QuickBooks Online offers more integrations, more advanced features, better tax support, and payroll. The lack of payroll, or any payroll integrations, seriously rules Zoho Books as an option for many businesses, solidifying QuickBooks Online’s place as the winner.

QuickBooks Online is ideal for small to medium-sized businesses in need of strong accounting, so much so that we’ve named it the Best Accounting Software for Small Businesses. The software offers strong accounting, decent mobile apps, ample integrations, and beautiful invoicing. QuickBooks Online also has a unique new lending feature, QuickBooks Capital, so you can potentially have your small business accounting and financing all in one place.

However, just because we named QuickBooks Online the winner, doesn’t mean that Zoho Books isn’t the better choice for your business. Zoho Books is ideal for small businesses looking for an easy-to-use accounting software with strong mobile apps and plenty of features. It’s also a great choice if you need international invoicing. If you don’t require payroll or budgeting, you could save a chunk of change by going with Zoho Books instead of QuickBooks — plus, you’ll get much better customer support.

Or, maybe after reading this post, neither option seems right for you. Don’t worry! Our comprehensive accounting software reviews can help you find the perfect bookkeeping solution for your business. If you need extra help deciding, read our Complete Guide To Choose Online Accounting Software.

Check out our full Zoho Books and QuickBooks Online reviews for more information. Be sure to take advantage of the free trials each software provides and feel free to reach out with any questions you might have.

The post Zoho Books VS QuickBooks Online appeared first on Merchant Maverick.

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