Should I Use Yelp for Business Owners?

We’ve all heard of Yelp. You might think of it simply as a helpful website that advises you to steer clear of that new Asian-Fusion place on Main Street (the service is terrible and you will get food poisoning). Based on how fellow customers rate restaurants and other businesses on a five-star scale, you can make decisions about whether various establishments are worth your time. You can even see pictures of locations, plates of food, menus, hotel rooms, and more.

But there is more to Yelp than just customer reviews of local services. On the other side of the curtain is a whole array of business tools designed to bring more customers through your doors. Functioning much like a social media account, Yelp for Business Owners lets you post pictures, interact with customers, and even buy targeted advertising to help grow your business. Ranging from free options that allow you to “claim” your business to paid subscriptions providing advertisements and high-quality video support, Yelp for Business Owners might be just the thing you have been looking for to give your business a boost.

But is it worth the expenditure? What can Yelp for Business really do for you? Read on to find out.

Do I Have To Pay To Create A Yelp Account For My Business?

Yelp for Business is free on the most basic level, but there are paid options if you want more features. Let’s take a closer look at the costs involved.

Free Tools:

The basic concept behind the free tools is that you can claim your business and establish a greater presence through Yelp. In many cases, your business will already be on Yelp, with positive and negative reviews, photos, and traffic already present. By claiming your own business, you will be able to gain some control over that content, including the ability to respond to reviews and add your own photos. In most cases, and especially if your business is already rated and reviewed on Yelp, there is no reason not to at least check this version of Yelp for Business out.

Self Service:

If you want to take advantage of Yelp’s proven popularity with consumers, you may find it advantageous to try their advertising service. The self-service option allows you to set your own budget for ads and will target people searching similar services to yours within your area. Yelp does not post their prices publically, but I found a general consensus among small business owners that pricing starts at $350 per month. Opting for this plan also allows for an “upgraded slideshow,” and removal of competitor ads when potential customers are looking at your Yelp page.

Full Service:

Signing up for the Full Service option gives you the opportunity to add a video to your Yelp profile, as well as a “call to action button” on your page. Both of these make your Yelp page stand out from competition, which could be valuable if there are lots of similar businesses to yours in your area. The Full Service package also includes support from Yelp’s own team of marketing experts, who will be on hand to help you craft your ads and deal with bad reviews and difficult customers.

How Easy Is It To Use Yelp For Business?

By all accounts, Yelp for Business Owners is very straightforward to use. It is easy to add photos and respond to customers on Yelp’s web platform. Designing an ad campaign is a little more difficult, but that mostly comes down to your own marketing decisions. So far, so good. However, if you do decide to sign up for Yelp’s advertising (hoping to take advantage of Yelp’s high trust rating with internet users), be aware that some things just aren’t possible. Hoping to set geographic boundaries for your advertisements? No can do. Want to specify particular keywords to direct traffic your way? Big nope there. So while the actual operating of Yelp for Business is pretty easy, the lack of things to do does not bode well for the app.

Are There Downsides To Using Yelp?

Well, we have partially answered that question already. The limitations on your advertising potential are a huge drawback for a platform that is supposed to be all about advertising for local businesses. Unfortunately, the bad news does not end there. In addition to being a little opaque in terms of usability, Yelp for Business is expensive. With prices starting at $350 per month and only increased from there, you will be paying exponentially more for Yelp than you would for Google, Facebook, or other ads. On top of that, I read reports from several users (read: most that I saw) claiming that it can be hard to determine just how effective those ads really are. Proponents of Yelp talk about the excellent reputation the site has with consumers and how often users visit an establishment once they look it up on the site. But actually finding how those statistics apply to small business owners can apparently be rather difficult.

On top of that, Yelp’s customer service reps can be charitably described as… persistent. I ran across more complaints about this aspect of Yelp for Business Owners than any other. Once you make it known to Yelp that you might be interested in an advertising contract, they push for it hard, even to the point of insisting that a higher price will be so beneficial to your business that you can’t afford not to give in and sign up. As a small business owner myself, I can’t imagine the frustration of continually having to defend my own decision to limit my budget below what a sales rep thinks is wise. After all, the business is mine.

Final Thoughts

Yelp is a proven platform that users–your future customers–trust almost implicitly. That said, Yelp for Business can be expensive, on the opaque side, and possibly less effective than advertised. My own take on it is this: signing up with Yelp for Business Owners is worthwhile if you already have a significant following on the platform. If your business already has positive reviews and has a decent history, you may as well at least claim your business on Yelp and upload some official photos. It might even be worth it to give in and pay for some ads. Just make sure you have a strategy in place for using Yelp for your business marketing.

If your business is brand new and has little to no Yelp presence, you may not want to go beyond confirming your business. At the very least, you should wait for a more established footprint on this review site before paying at all for their advertising; your money will just be better used elsewhere.

Get Started With Yelp For Business Owners

The post Should I Use Yelp for Business Owners? appeared first on Merchant Maverick.

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7 Shopify Dropshipping Apps

Dropshipping is the sweetest gig in eCommerce, and sellers and advertisers everywhere sing its praises. They claim all you have to do is select the most profitable dropshipping products, and the dollars will roll on in. And while we are skeptical of these claims (check out our article 7 Reasons To Rethink Drop Shipping), for some merchants — particularly those who have done their research, found a dropshipping niche, and sell products in a traditional way as well — dropshipping really does work.

Just run a quick search on YouTube, and you’ll find dozens of videos from bold teenagers who have made tens of thousands of dollars running dropshipping sites. If you look closer at some of these videos, you’ll find another commonality: most of these dropshipping success stories came about on the Shopify platform.

Shopify (read our review) is one of the most popular shopping carts in the eCommerce industry, especially for US and Canadian merchants. Shopify specializes in ease of use and simple, sleek design.

As a SaaS (software as a service) platform, Shopify manages the technical aspects of operating an online store, including the hosting and site security. You’re only responsible for designing your site, adding content, and fulfilling orders. Shopify users benefit from simple daily operations and 24/7 access to a support team.

And if you choose to dropship with Shopify, your business operations will be simplified one step further. By following the dropshipping model, you essentially outsource your whole fulfillment process to your suppliers. When a customer places an order on your site, instead of picking, packing, and shipping the product yourself, you place an identical order with your supplier. The supplier will then ship the product directly to your customer. The product never reaches your hands.

If you’d like, you can go about this dropshipping process manually. For every order on your site, you head over to your chosen marketplace–often sellers use AliExpress–and place the order again.

Or, you could make the process more automatic with an app from the Shopify marketplace. Shopify dropshipping apps let you connect your store to one or more supplier marketplaces. Products will be easier for you to add to your site, and the fulfillment process will be much simpler (in some cases, you just need to click “Place Order” to fulfill).

In this article, we’ll be covering seven of the best dropshipping apps for Shopify users. We’ve rated these apps based on their popularity and overall star ranking on the Shopify marketplace. Take a look at each individual app for more information on their pricing, features, and pros and cons.

To learn more about dropshipping with Shopify, take a look at the official Shopify dropshipping guide. This series includes plenty of great insights into how to start dropshipping on Shopify.

Get Started With Shopify

 

1) Oberlo

Oberlo is one of the most popular dropshipping apps for Shopify, which is why we’re including it first. The Oberlo app approaches dropshipping in two different ways. They allow users to link their Shopify accounts to AliExpress, and they provide their own product catalog from which merchants can select and sell products.

With this app, sellers are able to quickly add products to their Shopify stores and easily place orders with suppliers.

Pricing

Oberlo prices their services based on the number of orders you want to fulfill each month. The highest-level plan will also give you access to advanced features and multiple user seats. Take a look at pricing below:

Starter Plan: Free

  • Up To 50 Orders/Month
  • Shipment Tracking
  • Order Monitoring

Basic Plan: $29.90/Month

  • Up To 500 Orders/Month
  • Shipment Tracking
  • Order Monitoring

Pro Plan: $79.90

  • Unlimited Orders
  • Multiple Users
  • Multiple Sales Channels
  • Advanced Features

Features

Oberlo includes features that allow for automation of dropshipping fulfillment. Take a look at their full feature list on Oberlo’s website or view my abbreviated list below:

  • Import Dropship Products: Find and add products from AliExpress and the Oberlo Marketplace.
  • Fulfill Orders Automatically: All you have to do is click “Order Product” and then confirm.
  • Automatic Updates: Oberlo automatically transfers inventory and price updates from your chosen marketplace (Oberlo or AliExpress) to your Shopify store.
  • Edit Product Listings: Customize product titles, descriptions, and images.
  • Order Tracking: Find out where your shipments are in the delivery process.
  • Multiple Users: Available on the Pro plan. Let multiple employees access your Oberlo account at the same time.

The Oberlo app has received significant praise for its ease of use and ability to streamline the process of uploading new products to a Shopify page. Some users have reported difficulties with getting the app to transfer orders from their store to their suppliers. However, these complaints are very much the minority.

In Short…

Oberlo + Shopify is one of the most popular combinations for dropshipping merchants. If you haven’t looked into Oberlo yet, you should do so now. Check out Oberlo’s page in the Shopify marketplace and then take a look at Oberlo’s website for more information.

2) Spocket

Spocket is a dropshipping marketplace that lets you add products from US, European, and Canadian sellers. Spocket vets these dropship wholesalers to ensure that they offer quality products and customer service. You can benefit from discounts on niche products in the Spocket marketplace and features like automated order fulfillment.

Learn more about Spocket below:

Pricing

Spocket offers a free plan for merchants who choose to include dropship 25 or fewer products. If you’d like to list more products, you’ll have to subscribe to a paid plan.

Free Forever

  • Unlimited Orders
  • 25 Products
  • Real-Time Inventory Update
  • Currency Exchange
  • Global Pricing

Pro: $29/Month

  • Unlimited Orders
  • 250 Products
  • Real-Time Inventory Update
  • Currency Exchange
  • Global Pricing
  • Premium Products
  • Branded Invoicing

Empire: $199/Month

  • Unlimited Orders
  • Unlimited Products
  • Real-Time Inventory Update
  • Currency Exchange
  • Global Pricing
  • Premium Products
  • Branded Invoicing

Features

Take a look below at a few of the features that come included with every Spocket plan or view their webpage for more detailed information:

  • Products Ship Quickly: You can expect products to ship within 5-7 day (or 2-5 days locally). This may not seem fast in relation to Amazon Prime, but compared to many dropshipping suppliers, it is speedy.
  • One-Click Fulfillment: Place orders with your suppliers with just one click.
  • Discounted Products: Spocket offers a 30%-60% discount on all products to give you a higher profit margin.
  • Branded Invoices: Customize your invoices and add your logo.
  • Inventory Updates: Make sure you only sell products suppliers have on hand.

Merchants are big fans of those branded invoices; your customers will receive a branded insert in their shipments with your store’s logo. Merchants also like that Spocket is easy to use and features many desirable products. Some merchants, however, are discouraged by the amount of “Premium Products,” which you must pay to access. Spocket can also be difficult to contact at times, especially in their role as a supplier.

In Short…

If you’re looking to find good products quickly, look no further. Spocket has done much of the grunt work on your behalf. Sign up for a free plan to take a look at what they have to offer. Visit Spocket’s page in the Shopify marketplace or view Spocket’s website to learn more.

3) Spreadr

Spreadr is different from the above apps because, in addition to providing a connection to a marketplace, Spreadr allows merchants to bring in affiliate income.

Use Spreadr to import products from Amazon to your Shopify store, and either dropship those products or market them in exchange for a commission.

The best part of Spreadr’s affiliate program is that you don’t just get a commission on the products you market. You will also receive commision on all products visitors click on or purchase when they come through your site.

You should know, however, that you cannot use Spreadr to fill an entire online store. To qualify for this app, you must first fill your site with original content, whether that be products, posts, or reviews.

Pricing

Spreadr offers their application at one flat rate: $5.00/Month.

Try out the app for free with a 7-day Free Trial.

Features

Because Spreadr’s services are available at one rate, all merchants can expect to access the same features, no matter what. Take a look at Spreadr’s site for more info, or view my list below:

  • One-Click Upload: To upload a new product, just copy-paste the Amazon product URL and click “Add.”
  • Customize Product Descriptions: Make changes to product descriptions, optimize for SEO, and customize product titles.
  • Commissions: Make up to a 10% commission on all purchases (including purchases customers make on products you don’t list).
  • Use Amazon For Dropshipping: Instead of collecting commision, you can choose to use Amazon as a dropshipping source. Or, you can collect orders and fulfill them yourself.
  • Seamless Look: Amazon products appear on your site just like your own products. The only difference is that instead of an “Add to Cart” button there will be a “View on Amazon” button.
  • Locally Stored Product Information: Store product images and information on your Shopify website in order to resize images and display information faster.
  • Enable Auto-Sync: Automatically update price and inventory levels to match Amazon.
  • Bulk Import: Import thousands of Amazon products in minutes.

Spreadr users love that the affiliate program is quick and easy to implement. While some merchants have a bit of trouble setting up their site, the vast majority are able to get things working very quickly.

In Short…

Spreadr is a great way to start Amazon dropshipping on your Shopify store or to just make a buck from commissions. Try out a free 7-day trial by signing up on their page in the Shopify marketplace or read more on the Spreadr website.

4) AliExpress Dropshipping

This app from Appfreaker does exactly what you might anticipate. AliExpress Dropshipping for Shopify lets merchants easily import items from AliExpress and order those items through a semi-automated process.

The app also includes a Chrome extension that allows you to import products and edit product information as you browse.

Keep reading for more information on dropshipping with AliExpress, including pricing and features.

Pricing

AliExpress Dropshipping is available through a subscription plan, but you can try it out for free with a 7-day trial.

Take a look below at a breakdown of pricing for the application. Pricing is based on the number of items you list on your site, and each step up in pricing gives you access to more Shopify dropshipping suppliers:

Basic Plan: $5/Month

  • 5,000 Items
  • Unlimited Orders
  • Products Imported From AliExpress

Standard Plan: $10/Month

  • 10,000 Items
  • Unlimited Orders
  • Products Imported From AliExpress PLUS
    • Alibaba
    • DHgate
    • Banggood
    • Tmart
    • LightInTheBox
    • MiniInTheBox
    • Sammy Dress
    • GearBest

Pro Plan: $20/Month

  • 20,000 Items
  • Unlimited Orders
  • Products Imported From All Of The Above

Features

View all features on Appfreaker’s website or view a shorter list below:

  • Search Products: Search and import products within the application. Begin selling those products quickly.
  • Fulfill Orders: Take advantage of AliExpress Dropshipping’s semi-automated process. You just need to click “Order Product” and then enter payment information. Your customers’ shipping info will be imported for you.
  • Automatic Daily Updates: Update your products pricing and inventory levels as the information changes on AliExpress.
  • Chrome Extension: Take advantage of the single click import.
  • Edit Product Info: Edit product descriptions and images to better match your brand.
  • Pricing Rules: Set rules to update pricing in bulk as you import products.

Users comment frequently on how they’ve received good support from the platform. They often name specific representatives, which makes me believe they were encouraged to leave a review by the company. Nevertheless, these reviews seem to be genuine. Negative reviews include complaints that the user interface is outdated and that suppliers are slow to fulfill orders. Some customers also cite trouble with getting the app to autosync pricing information.

In Short…

AliExpress Dropshipping is not a perfect application, but it is a good one for those who want an easier way to import and sell AliExpress items. Take a look at the Shopify Marketplace for more information and to sign up for that free 7-day trial, or view their website.

5) Importify

Importify allows you to connect your Shopify site with the most popular marketplaces. These marketplaces include Amazon, Aliexpress, Etsy, Walmart, and DHgate.

You can use a Chrome extension to import products, and you’ll be able to customize product info like images, variants, and descriptions.

If you subscribe to Importify’s Gold Plan (see pricing info below), you’ll get access to semi-automatic fulfillment for Amazon, AliExpress, and DHgate.

Pricing

Importify is available on a subscription model. You can try out the software for free with a 1-day free trial. (A single day is the shortest trial period I have ever seen, and I can’t imagine you’ll get a good feel for the software in that time, but at least it’s something?)

Take a look at pricing information below. Note that the higher up you move in the pricing tiers, the more features you’ll be able to access.

Basic: $14.95/Month

  • Import Products From Less Popular Marketplaces
    • (Take A Look At Importify’s Supported Websites)
  • Shopify To Shopify Importer
  • Product Customization
  • Pricing Automation
  • Free Chrome Extension
  • 24/7 Customer Service

Premium: $27.95/Month

  • All Of The Above PLUS
  • Products Import From AliExpress & Amazon

Gold: $37.95/Month

  • All Of The Above PLUS
  • Semi-Automatic Order Fulfillment From Aliexpress, Amazon, DHgate, DropshipperUS

Features

As always, you can view a full list of features on Importify’s website. Take a look at my favorite features below:

  • Product Customization: Make products your own by editing product info like pictures, variants, product titles, and descriptions.
  • Price Automation: Set smart pricing rules so that your products are automatically priced at import.
  • Chrome Extension: Filter marketplaces to find the best products with fast delivery from trusted sellers.
  • Order Fulfillment: Available on the Gold Plan. Take advantage of semi-automatic order fulfillment.

Customers appreciate Importify’s responsive customer support. They also love that Importify gives you the ability to take your pick of multiple suppliers and marketplaces — particularly useful if you have fairly niche products that may be hard to find in one place. The biggest downside to the software is that in order to access AliExpress and Amazon, you’ll have to subscribe to a Premium or Gold Plan. What’s more, semi-automation is only available on the Gold Plan. This could make Importify one of the more expensive options, depending on your business’s needs.

In Short…

I have some concerns with Importify, mostly that you have to pay more to access AliExpress and Amazon, and only the highest level plan offers semi-automatic fulfillment. You can find these features available at a much lower cost with many of the applications I’ve already included in this list.

On the other hand, Importify allows merchants to list products from multiple marketplaces, which is a feature that’s a bit harder to find with other applications. So, if you are an eCommerce vendor who wants to include products from many different marketplaces, Importify may be the way to go. Visit the Shopify marketplace and Importify’s website for details.

6) Advanced Shipping Manager

Advanced Shipping Manager does just what its name implies. With this app, you’ll have advanced control over your dropshipping process.

Advanced Shipping Manager specializes in two areas: suppliers and shipping. Like other apps, Advanced Shipping Manager connects your Shopify account with many supplier and wholesalers. In addition, Advanced Shipping Manager gives you extensive control over shipping methods and markups.

Keep reading to learn how you can take control of the shipping aspect of your dropshipping business.

Pricing

Advanced Shipping Manager is available at one flat rate: $85/month.

Sound like a lot? I thought so too, but Advanced Shipping Manager guarantees that you will see a return on your investment within your first month on the software, or they’ll refund your first month’s subscription.

Features

Advanced Shipping Manager has quite a few features built into their software. I recommend you head over to their website for the full information. I have included a summary below:

  • Origin Zip Code For Items: Create specific shipping rules based on origin zip code, courier, and markups. You can also offer free shipping.
  • Dimensions: Set dimensions for your items to better calculate shipping rates.
  • Ship Individual Items Alone: Mark fragile items as “Ship Alone.” Set shipping costs appropriately.
  • Multi-Box Items: Set weights and dimensions for large, multi-piece products that ship in multiple boxes (like a sectional sofa).
  • Shipping Tables & Real-Time Shipping Rates: Calculate rates any way you’d like.
  • Dropshipping Markups: Set markups for products that are dropshipped.

Advanced Shipping Manager does its job well. Sellers report that the app gives them excellent control over shipping, and software is easy to set up and use. The only potential disadvantage is that the Advanced Shipping Manager’s flat rate is significantly higher than you’ll find elsewhere. (You should note, however, that that is my own personal concern. I have not seen any users complaining about price.)

In Short…

If you aren’t scared off by the $85 price tag, and you’re looking for a way to better manage your shipping, give Advanced Shipping Manager a shot. There’s a lot you can do with the application, and it just might solve your shipping woes. Learn more by going to the Shopify Marketplace and/or visiting Advanced Shipping Manager’s website.

7) Modalyst

Modalyst is a Shopify dropship integration that lets you upload products from three different marketplaces onto your Shopify site. You’ll have access to the Modalyst marketplace (which is the main purpose of the app), and you’ll be able to use a Chrome extension to upload products from Shein and Wish.com.

When you upload a product, you’ll instantly add inventory information, images, product descriptions, and pricing to your store.

Read on to learn if this app is a good integration for your store.

Pricing

Basic Plan: Free Forever

  • 25 Product Limit
  • Unlimited Orders
  • 5% Transaction Fee

Pro Plan: $45/Month

  • Unlimited Products
  • Unlimited Orders
  • Access To Shein.com, Wish.com, Modalyst Marketplace
  • 2% Transaction Fee

Premium Plan: $150/Month

  • Unlimited Products
  • Unlimited Orders
  • Access To Shein.com, Wish.com, Modalyst Marketplace
  • 1% Transaction Fee

Features

See Modalyst’s website for a full list of features. Read my own summary below:

  • Shein.com Integration: Get free standard shipping to the US on orders over $49. Learn more about the Shein.com integration.
  • Wish.com Integrations: Order forms are automatically filled out with customer info. Learn more about the Wish.com integration.
  • One-Click Add: Add products to your site quickly and easily.
  • Real-Time Product Updates: When your products are updated in your supplier’s website, they’ll be updated on your site too.
  • Customize Products: Edit product descriptions, pricing, variants, and images.
  • Pricing Rules: Set rules to price items as you add them.

Modalyst users appreciate that the app is easy to use, and they report having good experiences with customer support. The main complaint I’ve seen is that some customers have experienced inconsistencies with Wish.com, stating that there are occasional discrepancies between Wish.com’s price listings and what you actually pay.

In Short…

Before you make a paid commitment to Modalyst, I recommend you sign up for the free trial. That way, you can browse through Modalyst’s marketplace to get a better understanding of the selling potential for your site. Sign up for a free plan in Shopify’s app marketplace, or view the Modalyst website for detailed information.

Final Thoughts

When it comes to Shopify dropshipping, you have quite a few options to choose from, and each dropshipping app claims that it will help you get rich more quickly and easily than the next.

As you research Shopify dropshipping apps, take every developer’s claim with a grain of salt. Read customer reviews on each application, and sign up for any available free trial.

We recommend that you start your research with the apps we’ve included in this list. They have all been thoroughly tested by the Shopify community, and have emerged with high praise. Test one or two of these Shopify dropshipping apps, and see what a good extension can do for your ecommerce website.

Get Started With Shopify

The post 7 Shopify Dropshipping Apps appeared first on Merchant Maverick.

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The Complete Guide To QuickBooks Desktop Pricing

A Quick Guide To QuickBooks Pro Pricing

The Price Is Right is more than just a funny game show; it’s a real principle that we judge nearly all of our purchases by. If the price is right, then it’s a good investment — if you don’t get enough bang for your buck, you’re likely to walk away and find something else.

If you’re considering purchasing QuickBooks, you’re probably wondering this same thing: how much is this going to cost me? And is that cost worth it?

With three distinct QuickBooks Desktop options, the pricing structure of QuickBooks Desktop can be confusing, to say the least. What’s more, Intuit makes it incredibly difficult to track down prices for all of the additional charges you may face. That’s why we’ve created this post. By the end, you’ll know how much QuickBooks Pro, Premier, and Enterprise cost and be aware of any additional fees you might encounter.

Read on to learn more.

QuickBooks Desktop Products

There are three different QuickBooks Desktop products: QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise. These locally-installed desktop accounting programs are similar, with the same UI organization and design. What sets these three programs apart is their features, pricing, and target business type and size.

  • QuickBooks Pro: Ideal for small businesses with 1-3 users.
  • QuickBooks Premier: Ideal for small to medium businesses with 1-5 users.
  • QuickBooks Enterprise: Ideal for large businesses with 1-30 users.

In the next few sections, we’ll cover the pricing structures of QuickBooks Pro, Premier, and Enterprise in more detail. We’ll also discuss the features included with each product and give you some guidance on how to choose the right QuickBooks Desktop edition for your business.

QuickBooks Pro Pricing

You have two options when it comes to buying QuickBooks Desktop Pro (sometimes referred to as QuickBooks Desktop or QuickBooks Desktop Pro). You can either purchase a single QuickBooks Pro license or you can purchase an annual QuickBooks Pro subscription (called QuickBooks Pro Plus or QuickBooks Desktop Pro Plus). There are a few differences between the license and the subscription, which we will cover in more detail, but the main difference is the price.

QuickBooks Pro

A QuickBooks Pro license costs $299.95 on Intuit’s website. While you can purchase a QuickBooks Pro license elsewhere, Intuit often runs promotions where this cost is discounted.

A QuickBooks Pro license is good for three years, after which Intuit drops support for the product. You can still use the software after the three years are up, but the Intuit team won’t be able to help you if you have any questions or run into any issues. This license supports a single user and is locally-installed. You can install the product on up to three computers; however, this creates three separate company files, so your company file data will not be synced from computer to computer.

Here are some features that come with QuickBooks Pro:

  • Invoices and estimates
  • Contact management
  • Expense tracking
  • Journal entries
  • Chart of accounts
  • Accounts payable
  • Inventory
  • Project management
  • Time tracking
  • Reports
  • Budgeting
  • Tax support

For more features, read our complete QuickBooks Desktop Pro review.

QuickBooks Pro Plus

QuickBooks Pro Plus costs $299.95 each year. Instead of paying a one-time flat fee of $299.95, you’ll be paying for an annual subscription. The annual subscription comes with all of the same features as QuickBooks Pro, but you also receive:

  • Annual upgrades
  • Free phone support
  • Free automatic data backups

QuickBooks Pro Plus is also often discounted on the Intuit website.

QuickBooks Pro vs QuickBooks Pro Plus

When choosing between QuickBooks Pro and QuickBooks Pro Plus, it really comes down to your business’s needs and budget. As we mentioned earlier, each version comes with the same exact features, so the main difference is the price:

QuickBooks Pro QuickBooks Pro Plus
Pricing $299.95 $299.95/yr
Annual Upgrades $299.95 Included
Phone Support $89.95/3 mo Included
Data Backups $9.95/mo Included

If you plan to use a QuickBooks Pro license for three years before switching and don’t mind paying extra for phone support, QuickBooks Pro price is a more economical choice. However, if you want annual upgrades and anticipate needing a lot of customer support, QuickBooks Pro Plus might pay off in the end.

To determine which version is right for you, consider these questions:

  • Do I want annual upgrades or can I use the same edition for three years?
  • Do I have the budget to support an annual subscription?
  • Do I need phone support?
  • Do I want automatic data backups?

Additional QuickBooks Pro Fees

When considering purchasing QuickBooks, there are several additional fees to be aware of. Intuit isn’t always very forthcoming with these fees and their prices, which is why we wanted to share them.

QuickBooks Payroll

QuickBooks offers three payroll plans: Basic, Enhance, and Full-Service. QuickBooks payroll pricing ranges from $29/mo – $109/mo depending on your businesses needs. Each plan also charges $2/ per employee. Learn more about what each QuickBooks payroll plan offers.

Note: QuickBooks is often running payroll promos, so be sure to take advantage of any discounts offered.

Upgrades

QuickBooks Pro users can purchase an upgrade for $299.95. Annual upgrades are included with the QuickBooks Pro Plus plan.

Additional Users

Additional users cost $250/per user. There is a maximum of three users total for QuickBooks Pro and QuickBooks Pro Plus.

Tech Support

When it comes to customer service, most representatives all give you a different quote on how much support costs. There is only one fee that is consistent across the board: tech support is $89.95/3 mo.

QuickBooks Pro Plus comes with built-in tech support. Some QuickBooks Pro issues are also covered for free, like error codes and installation support.

Live Bank Feeds

Some banks charge a fee for connecting directly with QuickBooks via live bank feeds. This fee can run anywhere from $10-$15/mo depending on your banking institution.

Automatic Data Backups

Backing up a single PC costs $99.95/yr or $9.95/mo; backing up a company file costs $49.95/yr or $4.95/mo. Automatic data backups are included with the QuickBooks Pro Plus plan.

Hosting

If your company is in need of mobility and cloud capabilities, you can purchase online hosting at an additional cost. QuickBooks partners with Right Networks to provide hosting. Hosting costs an additional $450/yr per user.

Tax Forms

QuickBooks Pro supports W-2s, 1099s, W-3s, and 1096s. You can order tax forms directly from Intuit. The cost begins at $17.95 and varies depending on which form you need and how many. Tax forms are included with the Enhanced and Full-Service payroll plans.

Checks

You can purchase checks, voucher checks, business wallet checks, and more from QuickBooks. Standard checks begin at $56.99/per 50 checks. Prices vary by check type and amount.

Now you have a clear idea of exactly how much QuickBooks Pro costs. If you’re already sold on QuickBooks Pro, read our complete QuickBooks Pro review or go ahead and get started with the software. If you’d like to learn about the other QuickBooks Desktop pricing options, read on.

Read Our QuickBooks Pro Review

Get Started With QuickBooks Pro

QuickBooks Premier Pricing

QuickBooks Premier’s pricing structure is the exact same as QuickBooks Pro’s. There are two options when it comes to purchasing QuickBooks Desktop Premier. You can either purchase a QuickBooks Premier license (sometimes referred QuickBooks Desktop Premier), or you can purchase an annual QuickBooks Premier subscription (called QuickBooks Premier Plus or QuickBooks Desktop Premier Plus). There are a few differences between the license and the subscription, which we will cover in more detail, but the main difference is the price.

QuickBooks Premier

A QuickBooks Pro license costs $499.95 on Intuit’s website. While you can purchase a QuickBooks Premier license elsewhere, Intuit is often running promotions where this cost is discounted.

If you purchase a QuickBooks Premier license, the license will last you three years, after which Intuit drops support for the product. (You can still use the software for more than three years, but the Intuit team won’t be able to help you if you have any questions or run into any issues). This license supports a single user and, like QuickBooks Pro, is locally-installed onto a computer. Again, like you can with QuickBooks Pro, you can install the product on up to three computers, though you’ll run into the same problem with information syncing from one computer to another.

Here are some features that come with QuickBooks Premier:

  • Invoices and estimates
  • Contact management
  • Expense tracking
  • Journal entries
  • Chart of accounts
  • Accounts payable
  • Inventory
  • Project management
  • Time tracking
  • Reports
  • Budgeting
  • Tax support
  • Sales orders

For a full list of features, read our complete QuickBooks Premier review.

QuickBooks Premier Plus

QuickBooks Premier Plus costs $499.95 each year. Instead of paying a flat fee of $499.95, you’d be paying for an annual subscription. The annual subscription comes with all of the same features as QuickBooks Premier, but you also receive:

  • Annual upgrades
  • Free phone support
  • Free automatic data backups

QuickBooks Premier Plus is often discounted on the Intuit website.

QuickBooks Premier vs QuickBooks Premier Plus

Since both QuickBooks Premier and QuickBooks Premier Plus offer the same software features, which version is right for you will depend entirely on your business’s budget and needs. These are the main pricing differences between the two options:

QuickBooks Premier QuickBooks Premier Plus
Pricing $499.95 $499.95/yr
Annual Upgrades $499.95 Included
Phone Support $89.95/3 mo Included
Data Backups $9.95/mo Included

If you will use a QuickBooks Premier license for three years before switching and don’t mind paying extra for phone support, QuickBooks Premier could save you a big chunk of money. However, if you want annual upgrades and anticipate needing a lot of customer support, QuickBooks Premier Plus might be worth it in the long run.

To determine which version is right for you, consider these questions:

  • Do I want annual upgrades or will I use the same software for three years?
  • Do I have the budget to support an annual subscription?
  • Do I need phone support?
  • Do I want automatic data backups?

QuickBooks Premier Industry Editions

One of the biggest difference between QuickBooks Pro and QuickBooks Premier is that Quickbooks Premier offers six industry-specific version of the software in addition to the standard version. These industry editions add customized features and reports to better fit your businesses needs.

You can choose the Standard Edition of QuickBooks Premier or one of these six editions at no additional cost:

  • Contractor
  • Manufacturing & Wholesale
  • Nonprofit
  • Retail
  • Professional Services
  • Accountant

Visit QuickBooks Premier’s webpage to learn everything these versions are capable of.

Additional QuickBooks Premier Fees

QuickBooks Premier has almost all of the same potential additional fees as QuickBooks Pro, with a few minor variations in cost. Be sure to take these into consideration when determining how big of a dent QuickBooks Premier is going to leave in your wallet.

QuickBooks Payroll

QuickBooks offers three payroll plans: Basic, Enhance, and Full-Service. These plans range from $29/mo – $109/mo plus $2/ per employee. Learn more about what each QuickBooks payroll plan offers.

Note: QuickBooks is often running payroll promos, so be sure to take advantage of these discounts.

Upgrades

For Premier, the QuickBooks upgrade price is $499.95. Annual upgrades are included with the QuickBooks Premier Plus plan.

Additional  Users

Additional users cost $450/per user. There is a maximum of five total users for QuickBooks Premier and QuickBooks Premier Plus.

Tech Support

Like QuickBooks Pro, QuickBooks Premier tech support costs $89.95/3 mo. QuickBooks Pro Plus comes with built-in tech support. Some QuickBooks Premier issues are also covered for free, like error codes and installation support.

Live Bank Feeds

Some banks charge a fee for connecting directly with QuickBooks via live bank feeds. This fee can cost anywhere from $10-$15/mo depending on your banking institution.

Automatic Data Backups

Backing up a single PC costs $99.95/yr or $9.95/mo; backing up a company file costs $49.95/yr or $4.95/mo. Automatic data backups are included with the QuickBooks Premier Plus plan.

Hosting

If your company is in need of mobility and cloud capabilities, you can purchase online hosting at an additional cost. QuickBooks partners with Right Networks to provide hosting. Hosting costs an additional $450/yr per user.

Tax Forms

QuickBooks Premier supports W-2s, 1099s, W-3s, and 1096s. You can order tax forms directly from Intuit. The cost begins at $17.95 and varies depending on which form you need and how many. Tax forms are included with the Enhanced and Full-Service payroll plans.

Checks

You can purchase checks, voucher checks, business wallet checks, and more from QuickBooks. Standard checks begin at $56.99/per 50 checks. Prices vary by check type and amount.

Now that you know exactly how much QuickBooks Premier costs, you can make an informed decision about whether or not it’s right for you. If so, get started using the software right away, or read our complete QuickBooks Premier review for more details.

Read Our QuickBooks Premier Review

Get Started With QuickBooks Premier

QuickBooks Enterprise Pricing

Unlike QuickBooks Pro and Premier, QuickBooks Enterprise is only available through a subscription. For Enterprise, there are three QuickBooks price levels: Silver, Gold, and Platinum.

Each plan varies significantly in terms of feature availability and pricing.

Silver

QuickBooks Enterprise Silver starts at $1,100/yr. This number can vary significantly business by business.

The price ranges depending on how many users your business needs. You can calculate how much your QuickBooks Enterprise software will cost on the Intuit website by inputting in the number of users you need. (To give you an idea of how much this price fluctuates, one user on the Silver plan would cost $1,100/yr, while 30 users would cost upwards of $7,000/yr). Luckily, Intuit is often running promotions and discounts on the Intuit website.

Here are some of the features QuickBooks Enterprise Silver includes:

  • Invoices and estimates
  • Contact management
  • Expense tracking
  • Journal entries
  • Chart of accounts
  • Accounts payable
  • Inventory
  • Project management
  • Time tracking
  • Reports
  • Budgeting
  • Tax support
  • Sales orders
  • Advanced reporting
  • Lead management
  • Loan manager
  • Business plan tool

These features are available in every QuickBooks Enterprise subscription. Read our complete QuickBooks Enterprise review for more details.

Gold

QuickBooks Enterprise Gold starts at $1,100/yr. The price ranges significantly depending on how many users you need.

In addition to the basic QuickBooks Enterprise features, QuickBooks Enterprise Gold also includes payroll services.

Platinum

QuickBooks Enterprise Platinum starts at $1,760/yr.  Again, the price varies depending on how many users your business needs.

In addition to the features offered by the Silver and Gold plans, QuickBooks Enterprise Platinum adds advanced inventory and advanced pricing capabilities.

Note: With the purchase of any QuickBooks Enterprise plan, you receive Intuit Field Management access for a single user.

Silver vs Gold vs Platinum

If we’re talking about jewelry the answer is obviously platinum, but when it comes to accounting software the best QuickBooks Enterprise version is going to depend entirely on your business’s needs and budget. Here’s a breakdown of how each QuickBooks Enterprise plan compares:

Silver Gold Platinum
Pricing $1,100+/yr $1,430+/yr $1,760+/yr
Annual Upgrades Included Included Included
Phone Support Included Included Included
Data Backups Included Included Included
Basic Features ✓ ✓ ✓
Payroll $29-$109/mo Included Included
Advanced Inventory ✘ ✘ ✓
Advanced Pricing ✘ ✘ ✓

If you need payroll, advanced inventory, and advanced pricing, then Platinum is the clear winner. If you need more users than you can get with QuickBooks Premier, but don’t need payroll or the advanced features, then maybe Silver is a better option.

To determine which version of QuickBooks Enterprise is best for your business, ask yourself these questions:

  • Do I have the budget for QuickBooks Enterprise?
  • Do I need payroll included or will I save money by paying for a payroll add-on each month?
  • Do I need advanced inventory or advanced pricing?

Most importantly, ask yourself if the benefits of Enterprise outweigh the steep costs. If Quickbooks Premier can do almost everything you need it to, it might be worth the slight downgrade in terms of features.

QuickBooks Enterprise Industry Editions

Once you’ve decided if Silver, Gold, or Platinum is right for your business, there’s one more question to ask yourself: should I use the standard version of QuickBooks Enterprise or one of the six industry-specific versions?

Like QuickBooks Premier, QuickBooks Enterprise offers six industry-specific editions of the software:

  • Contractor
  • Manufacturing & Wholesale
  • Nonprofit
  • Retail
  • Professional Services
  • Accountant

Each of these versions gives you access to specialized features and reports at no additional cost. Read our Quick Guide To The 6 Industry-Specific Editions of QuickBooks Enterprise for more details.

Additional QuickBooks Enterprise Fees

QuickBooks Enterprise has significantly fewer additional fees than QuickBooks Pro and Premier as many features are included with your annual subscription. For example, all QuickBooks Enterprise plans include annual upgrades and automatic data backups, and the two larger plans have built-in payroll. However, there are a few other fees to be aware of.

Payroll

QuickBooks Enterprise Gold and Platinum include payroll at no additional cost. If you want Quickbooks Enterprise Silver, you will have to pay an additional fee each month. QuickBooks offers three payroll plans: Basic, Enhance, and Full-Service. These plans range from $29/mo – $109/mo plus $2/ per employee. Learn more about what each QuickBooks payroll plan offers.

Note: QuickBooks is often running payroll promos, so be sure to take advantage of these discounts.

Hosting

If your company is in need of mobility and cloud capabilities, you can purchase online hosting at an additional cost. QuickBooks partners with Right Networks to provide hosting. For Enterprise, the QuickBooks hosting price is around $50/mo per user. For an exact quote, contact QuickBooks Enterprise’s support team directly.

Intuit Field Service Management

With a QuickBooks Enterprise subscription, you automatically get Intuit Field Service management access for one user. Intuit does not disclose the cost of additional users so contact Intuit’s Field Service Management team directly for a quote.

Tax Forms

QuickBooks Enterprise supports W-2s, 1099s, W-3s, and 1096s. You can order tax forms directly from Intuit. The cost begins at $17.95 and varies depending on which form you need and how many. Tax forms are included with the Enhanced and Full-Service payroll plans.

Checks

You can purchase checks, voucher checks, business wallet checks, and more from QuickBooks. Standard checks begin at $56.99/per 50 checks. Prices vary by check type and amount.

If QuickBooks Enterprise’s pricing didn’t scare you off, take the software for a spin with a free trial or read our complete QuickBooks Enterprise review for more information.

Read Our QuickBooks Enterprise Review

Get Started With QuickBooks Enterprise

Other QuickBooks Desktop Costs To Consider

So we’ve already covered how much QuickBooks Pro, Premier, and Enterprise cost and all of the additional fees to expect with each. But there are a few other costs you’ll want to consider.

Add-Ons

Integrations are third-party add-ons that give you additional features and capabilities. For example, software like Shopify, TSheets, and MailChimp are all integrations. QuickBooks Pro offers 170+ integrations to choose from; QuickBooks Premier has 160+ integrations and QuickBooks Enterprise offers 160+ integrations.

Most integrations come with their own monthly subscription fees, so be sure to account for these extra costs when calculating how much QuickBooks is going to set you back.

Payment Gateways

Payment gateways allow you to accept payments from your customers. Common payment processing options include PayPal, Stripe, Square, and Authorize.Net. QuickBooks Pro offers 14 payment processing integrations or you can use QuickBooks Payments. QuickBooks Premier and Enterprise offer significantly fewer payment gateways, so you’re basically looking at QuickBooks Payments.

QuickBooks Payments charges:

  • $1.00 for ACH fees
  • 2.4% + $0.30 for swiped cards
  • 3.5% + $0.3o for invoices
  • 3.5% + $0.30 for keyed in cards

Whether you use QuickBooks Payments or another payment gateway, be sure to take the credit card fees into account.

Where Can You Buy A QuickBooks Desktop License?

There are several places you can go to buy a QuickBooks Desktop license. You can purchase a license through Intuit using the QuickBooks Pro, QuickBooks Premier, or QuickBooks Enterprise websites. You will almost always find that QuickBooks is running a discount or promotion online.

Another option is to buy a QuickBooks Desktop license from a QuickBooks reseller, like Staples or OfficeMax. Retailers like Best Buy, Costco, and even Walmart often sell QuickBooks, and Amazon sells the software as well.

The QuickBooks software prices vary from reseller to reseller. Sometimes these places offer a more significant discount than Intuit (especially around Black Friday). Other times, they may be offering a far more expensive deal.

Be sure to explore all of your options before buying to make sure you are getting the best QuickBooks price.

Should You Buy An Older Version Of QuickBooks?

One question people often ask is should I buy an older version of QuickBooks?

The answer (like with so many things) is that it depends.

Generally, QuickBooks Pro, Premier, and Enterprise don’t change significantly year by year. The software usually has a few minor updates, maybe some streamlined features, or new additions each annual upgrade. This is why so many QuickBooks users utilize the same version of QuickBooks Desktop for multiple years, and why it may also be okay to buy an older version.

For example, say you want to buy QuickBooks Pro but don’t need any of the new 2018 updates. You may be able to save some money by buying QuickBooks 2017 from a reseller like Amazon or Best Buy. You can search all of the resellers previously mentioned for the best price on QuickBooks Pro 2017. However, note that the support for this version of QuickBooks will expire faster than if you were to purchase QuickBooks 2018.

There are some instances where I don’t recommend buying an older version of QuickBooks, however. For example, the price for QuickBooks Pro 2014 may be enticing, but you’d essentially be signing up for outdated features and no support. Sure, you could theoretically use the software just fine, but your software would not be supported by the QuickBooks team at all.

That means that whenever you have a question or an issue, you’re completely on your own. QuickBooks customer care won’t help. If you want to purchase a significantly older version of QuickBooks, I recommend seriously weighing the pros and cons first and deciding whether lack of support is really worth the few bucks you’d save with a smaller QuickBooks purchase price.

How To Upgrade Your Current Version of QuickBooks

You can upgrade (or downgrade) your software at any time. You can switch from QuickBooks Pro Plus to QuickBooks Premier Plus, or go from QuickBooks Premier to QuickBooks Pro — whatever your heart desires (and your business requires).

I do have a couple of tips for upgrading so you can get the best QuickBooks price.

  1. If you are planning on upgrading an annual subscription, wait until the end of your annual subscription or switch within 60-days of your annual renewal (QuickBooks has a 60-day satisfaction guarantee where you can receive a refund for your software). This way you aren’t paying twice.
  2. If you are planning on upgrading a QuickBooks license, see if you can wait it out until the latest version of QuickBooks is released. Annual QuickBooks Desktop upgrades are generally released each September. This way, you get the most up-to-date features and can use your software for longer.

Final Thoughts

I know that was a lot of information, but hopefully, this helps clear things up! Now you know everything you could possibly need to know about QuickBooks pricing.

You learned how much QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise cost; the differences between QuickBooks Pro and Pro Plus, QuickBooks Premier and Premier Plus, and QuickBooks Silver, Gold and Platinum;  all of the additional costs to expect; and even where to find the best QuickBooks price.

If you’re still not sure which version of QuickBooks Desktop is right for you, take a look at our Complete QuickBooks Product Comparison Guide where we cover the differences between each software and how to pick which one is best for your business. There’s also a side-by-side QuickBooks features and QuickBooks price software comparison chart.

If you want to learn more, check out our complete QuickBooks Pro review, QuickBooks Premier review, or QuickBooks Enterprise review. In each of these reviews, we rate features, customer support, customer reviews, security, and more. We also give links to free trials of each software. Take a look or get started right away with your favorite version of QuickBooks Desktop.

Get Started With QuickBooks Pro

Get Started With QuickBooks Premier

Get Started With QuickBooks Enterprise

The post The Complete Guide To QuickBooks Desktop Pricing appeared first on Merchant Maverick.

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Best Nonprofit Integrations For QuickBooks Online

Best Nonprofit Integrations For QuickBooks Online

Finding accounting software is never easy. Finding nonprofit software is no walk in the park either. But finding nonprofit accounting software that you can actually afford can seem downright impossible.

Sure there are plenty of fund accounting nonprofit options, but if your organization is looking for something easier to use and more affordable, QuickBooks Online may be the perfect way to go.

While QuickBooks Online doesn’t have features that are specifically designed for nonprofits, it does have several key nonprofit integrations. With QuickBooks Online covering the accounting and a nonprofit software covering your nonprofit management, you may be able to find a great alternative to traditionally expensive, convoluted fund accounting.

In this post, we’ll cover the top four nonprofit integrations for QuickBooks Online and how to choose which nonprofit software is right for you.

Overview Of QuickBooks Online

QuickBooks Online (see our review) is one of the most popular accounting programs on the market — and for good reason. The software offers strong accounting, tons of features, and is completely mobile. This cloud-based accounting software has been giving other programs a run for their money since 2004, and since then, QuickBooks Online has grown to support over 2.2 million users.

What makes QuickBooks Online such a popular choice? It’s easy to use and requires very little previous accounting knowledge. It has a large feature set at an affordable price — and what features it doesn’t have are covered by 200+ integrations. While the customer service has left users wanting in the past, QuickBooks Online is working hard to improve their support.

In terms of nonprofits, QuickBooks Online doesn’t offer nonprofit-specific features. When you create your QuickBooks Online account, you can mark your company as a nonprofit, which will create a customized nonprofit chart of accounts, but that’s about it. Instead, the main benefit of using QuickBooks Online for nonprofits is the strong accounting (and the nonprofit integrations, which we’ll cover in this post).

Features

For the most part, QuickBooks Online is intuitive and its features are easy to use. QuickBooks Online covers all of the features you’d expect from an accounting software, like invoicing, estimates, contact management, expense tracking, project management, time tracking, and then some.

Best Integrations For QuickBooks Online

You’ll also find key accounting features like accounts payable, bank reconciliation, reports, and a chart of accounts.

Some of our favorite additional features include:

  • Inventory
  • Budgeting
  • Printing checks
  • Tax support
  • Client portal
  • Multi-currency support
  • Class tracking

It’s also worth noting that QuickBooks has one of the best invoicing features out there. Not only are the templates customizable and attractive, you can also autoschedule invoices to automate your billing process.

The only downside of QuickBooks Online is that some of these features are only available with the most expensive plan, and the software doesn’t support more than 25 users. See our full QuickBooks Online review for details.

Pricing

QuickBooks Offers three pricing plans ranging from $15/mo – $50/mo. Each tier gives you access to more user and features. There is a free 30-day trial if you’d like to test the software before buying.

The highest plan only supports 5 users, so you’ll have to pay extra for additional users. Payroll is also an additional $39-$99/mo depending on your plan. Luckily, QuickBooks Online often offers a discount on the Intuit website. Be sure to take advantage of this, especially because you’ll have to pay for QuickBooks Online and the nonprofit integration of your choice.

Now that you have an idea of what QuickBooks is capable of and how much it costs, let’s see how your nonprofit organization can benefit from one of the QuickBooks Online nonprofit integrations.

1) SumacBest Nonprofit Integrations For QuickBooks Online

Best For…

Nonprofit organizations looking for a highly customizable nonprofit software and CRM solution.

Sumac is a locally-installed nonprofit software founded on the motto “do more good.” The software offers everything from basic CRM to pledges, course registration, auditions and submissions, and more. The best part about Sumac is that the software is incredibly customizable and can be tailored to fit your organization’s specific needs. Well, maybe the best part is that the basic CRM package is completely free. We’ll let you decide.

Features

Sumac has an incredible number of features that are relatively easy to use. The design of the locally-installed version of Sumac is less attractive than the other nonprofit software options in this post, but if you can look past the outdated UI, you’ll find that Sumac is easy to navigate.

The software begins with basic CRM features: invoicing, contact management, reporting, email marketing, donation management, event management, and time tracking. These features are included in every plan.

Best Nonprofit Integrations For QuickBooks Online

You can then add these additional modules to Sumac:

  • Memberships
  • Volunteers
  • Grant management
  • Pledges
  • Ticketing
  • Reminders
  • Course registration
  • Forms
  • Tour booking
  • Proposals/prospecting
  • Auctions
  • Sales
  • Auditions and submissions
  • Job search
  • Collection management
  • Awarding grants

In general, users seem incredibly happy with the number of features they receive from Sumac. They also praise Sumac’s customer support, how easy the software is to use, and how customizable it is.

Pricing

Sumac offers four different pricing plans: Bronze, Silver, Gold, and Platinum. Each plan varies in the number of add-ons, contacts, and users available. Each plan integrates directly with QuickBooks Online to connect all of your data.

  • Bronze: The Bronze plan is free and includes all basic CRM features, email support, 1 user, and up to 500 contacts.
  • Silver: The Silver plan is $20/mo and gives you the basic CRM features, 2 add-ons, phone and email support, support for 1 user, and up to 1,000 contacts.
  • Gold: The Gold plan is Sumac’s custom pricing option where you can add the exact number of add-ons that your organization needs. It also includes the Basic CRM features, phone and email support, unlimited users, and up to 30,000 contacts.
  • Platinum: The Platinum plan is $400/mo and includes the basic CRM features, 5 add-ons, phone and email support, unlimited users, and unlimited contacts.

If you prefer cloud-based software over locally-installed software, you can upgrade to the cloud version of Sumac for an additional $25/mo.

Takeaway

Sumac is a great option for nonprofits who need a customizable software with ample features. Sumac has the only free nonprofit software option on this list and is also the only locally-installed option. If you are looking for a cheap nonprofit CRM, you can’t beat Sumac. Pair Sumac with QuickBooks Online and you may have a winner on your hands.

To learn more about Sumac, visit their website and take the software for a spin with their free trial. You can also schedule a demo of Sumac.

Get Started With Sumac

2) KindfulBest Nonprofit Integrations For QuickBooks Online

Best For…

Nonprofits in need of a cloud-based nonprofit software with ample integrations. 

Kindful is a fully-featured, cloud-based nonprofit software that is used by organizations like the Special Olympics, the Boys & Girls Clubs of America, and Habitat for Humanity. Kindful has been helping nonprofits since 2011. Their motto is “your mission is our mission” and they offer tons of features to help nonprofits succeed. The software is intuitive with a beautiful design and offers the most integrations of any nonprofit program on this list.

Features

Kindful’s UI is both appealing and easy to use. While Kindful doesn’t have quite as many unique features as Sumac, the features it does have are done well. Kindful offers contact management, donation management, event management, pledges, letters, and more.

Best Nonprofit Integrations For QuickBooks Online

Kindful is well-suited out to meet the needs of real nonprofit organizations. You can accept online donations and recurring donations, create contact groups, enter gifts, and email receipts automatically. There is also an unlimited number of customer donation pages, and donors receive their own Kindful login where they can view and manage their pledges and donations.

Some other great Kindful features include:

  • Donation campaigns
  • Scheduled reports
  • Activities
  • Donor analytics
  • Tax receipts
  • Activity trail

For the most part, Kindful has positive customer reviews. Users appreciate how easy the software is to use, which saves them time so they can focus on their nonprofits.  They also find the customer support team helpful and enjoy the 30+ integrations Kindful offers.

The only downside is that the software can be a bit spendy for smaller nonprofits with a large number of contacts.

Pricing

Kindful offers four different pricing plans. Each plan comes with all of the same features; the only difference is the number of contacts available. Each plan integrates with QuickBooks Online as well.

  • Up To 2,000 Contacts: $150/mo (billed annually)
  • Up To 5,000 Contacts: $200/mo (billed annually)
  • Up To 15,000 Contacts: $300/mo (billed annually)
  • Up To 25,000 Contacts: $400/mo (billed annually)

There is no additional charge for tech support and the only payment processing fees you pay are those charge by your specific payment processing company (i.e. Stripe, PayPal, etc.).

Takeaway

Kindful’s UI and customer donations pages make it a great choice for nonprofits. The software offers great CRM features and good donor management, as well as a unique donor login feature. If integrations are important for your organization, Kindful has the most offerings out of all four programs in this post.

To learn more about Kindful, visit their site and schedule a demo. You can also see how other real-life nonprofits are using Kindful in their customer stories.

Get Started With Kindful

3) BreezeBest Nonprofit Integrations For QuickBooks Online

Best For…

Small to medium-sized churches in need of church-specific nonprofit software.

There are plenty of nonprofit programs out there that churches could make work, but Breeze wanted to make a software specifically create with churches in mind. This church management software is ideal for small to medium churches. The software is cloud-based, easy to use, and — best of all — it’s affordable.

Features

Breeze offers an impressive number of features designed specifically for churches. It allows you to manage contacts, tithes, and events, as well as online giving and volunteers.

Best Nonprofit Integrations For QuickBooks Online

One of the features users love most about Breeze is the children’s ministry check-in feature. Breeze allows parents to check in their children to Sunday school and even lets you print name labels. You can also create custom forms to suit your church’s needs.

Church members get their own Breeze login where they can view their statements and donate online.

Other Breeze features include:

  • Event registration
  • Contact groups
  • Built-in emailing and texting
  • Donation tracking
  • Reports
  • Year-end statements
  • Pledges

Existing Breeze users praise the software for being so easy to use that everyone in their church can learn it, no matter what level of tech experience. Users also praise the customer support and the low cost of the software.

The only potential drawback we see with Breeze is that larger churches may outgrow the software’s capabilities.

Pricing

Breeze has a single cost of $50/mo. This includes every Breeze feature, unlimited users, phone support, email support, upgrades, and even data transfers.

Takeaway

When it comes to churches, there are very specific needs and requirements that a software must meet. Breeze offers the key features churches need, all while maintaining an affordable price. The software is easy to use and has a beautiful UI, and you can’t top unlimited users.

To see if Breeze is right for your church organization, schedule a demo or sign up for a free trial on Breeze’s website.

Get Started With Breeze

4) NeonCRMBest Nonprofit Integrations For QuickBooks Online

Best For…

Nonprofits in need of a comprehensive CRM solution.

NeonCRM is a cloud-based nonprofit software founded back in 2004. Over 85% of NeonCRM’s staff has a nonprofit background, so they know exactly what nonprofits need. With several pricing plans and a nice selection of features, there’s a little something for everyone with this software.

Features

NeonCRM has an attractive UI that is well-organized and highly developed. A few users have complained that the software is unintuitive at times, but the majority find NeonCRM easy to use.

The software offers a good number of features, including contact management, volunteer management, donations, event planning, and more.

Best Nonprofit Integrations For QuickBooks Online

If you go with the smallest NeonCRM pricing plan, you’ll have to choose between either the fundraising or membership module, though with any other plan you get access to both. NeonCRM has good automations like automatic receipting and batch donations. You can also create custom fundraising pages and can even indicate the relationship between contacts.

Like Kindful, users get their own contact login where they can view their history and manage donations.

In addition, NeonCRM offers:

  • Campaigns
  • Thank yous and gifts
  • User permissions
  • Volunteer project management
  • Prospects
  • Grants
  • Event registration
  • Reports
  • Letters

In terms of customer reviews, NeonCRM receives relatively high praise. Users appreciate the software’s ease of use and praise the customer support team. The software also offers a handy MailChimp integration.

The only drawback of the software is that it can get a bit expensive.

Pricing

NeonCRM has three different pricing plans: Essentials, Impact, and Empower. The exact cost of each plan varies depending on how many contacts you need and if you need data entry assistance.

  • Essentials: Starts at $50/mo. Must choose between fundraising or membership. Includes event management, campaigns, automatic receipts, reports, contact management, and volunteer management. Does not include a QuickBooks Online integration.
  • Impact: Starts at $110/mo. Includes both fundraising and memberships. Includes all of the features from the Essentials plan, plus web forms, online store, customer survey builder, peer-to-peer fundraising, and a QuickBooks Online integration.
  • Empower: Starts at $200/mo. Includes all of the features form the Impact plan, plus donor search, live chat, and visual phone support.

Customer support may cost extra depending on the plan. Download NeonCRM’s pricing .pdf for all of the details.

Takeaway

NeonCRM is a comprehensive CRM solution with a few great nonprofit additions. The software is beautifully designed and is a great choice for organizations seeking to build an appealing online presence and brand. While Neon CRM can get expensive (especially considering that the QuickBooks Online integration is limited to the two higher plans), it may still be worth it for some medium to large-sized nonprofits.

Learn more about NeonCRM on their website, or contact NeonCRM directly for a free trial or demo.

Get Started With NeonCRM

Which Nonprofit Software Is Right For Me?

When it comes to choosing the perfect nonprofit software to integrate with QuickBooks Online for your organization, think carefully about your nonprofit’s needs. Which features do you need? How many users need to use the software? Do you need cloud-based software or mobile apps? All of these factors, as well as your budget, will determine which nonprofit software is right for.

QuickBooks Online does have two other donor management integrations — Method:Donor and Donor Receipts — if you need an even simpler solution. That said, Sumac, Kindful, Breeze, and NeonCRM are your best bets if you want to integrate fully-featured nonprofit software with QuickBooks online.

If you’re still not certain if QuickBooks Online is the best choice for your nonprofit, take a look at our Top 10 Best Nonprofit Accounting Apps For 2018 for more options.

The post Best Nonprofit Integrations For QuickBooks Online appeared first on Merchant Maverick.

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Best Apps For Scrum Project Management

Scrum. It was originally a rugby term, describing the interlocking formation of players as they get ready to…you know…do rugby stuff. Now that I have alienated our entire British commonwealth audience, let’s turn our attention to Scrum’s other meaning, the one in the field of project management. In snazzy technical terms, scrum project management is “an iterative and incremental framework for managing product development.” But, since that definition is just a collection of buzzwords, let me just show you:

Unlike Waterfall project management, in which you follow a very black and white, linear process, the idea here is that you and your team start tasks in the “to-do” column, move them to “in-progress” while you work on them, then send them through verification and Q/A. When put like this, it makes perfect sense! More than that though, it is clear why this method of organization might be beneficial.

The original Scrum concept used a whiteboard and post-its in order to create the classic grid and moving tasks, but that is far from the only way to use this methodology. As you might expect, a number of software developers have created different apps capable of replicating the original pen-and-paper version. Which of them is best? Let’s take a look and see.

Trello

Trello (read our review) is the first app I thought of when preparing an article on scrum project management. One of the originators of the now popular Board View, Trello is ideally suited to arrange into a Scrum configuration. You can create boards for each section of the scrum, then add cards to those boards and drag them back and forth as you see fit, which is vital to effective use of scrum and agile methodology.

Trello also has the advantage of being free to use. While there is a paid version available, in most ways it is just not necessary, especially if you are only interested in using it for Scrum applications. Perhaps most important of all, though, Trello is fantastically easy to use. Every step of the process of signing up is a breeze, and there is effectively no learning curve.

Redbooth

Redbooth (read our review) employs a similar system to Trello, wherein you may create task lists, populate them with tasks, then drag and drop them into other lists as you need. This, though, is about where the similarities end. Redbooth is a much more developed tool, with such additional features to sweeten the pot as subtasks (oooh), reporting (aaaah), and even some communication tools (round of applause). Some of those features, especially the reporting tools, are pretty useful in understanding how effective your Scrum techniques have been, and in identifying possible trouble spots.

Of course, those nice extra features come at a price. Sure, Redbooth offers a free version of the software, but all those nice, juicy extras could be yours for less than $10/user/month. Fortunately, the price is probably worth it; Redbooth is both easy to use and also beautiful to look at.

Binfire

Binfire (read our review) is designed from the ground up for Scrum project management. Each project is fully customizable with different “bins” for you to file tasks under, allowing you to decide project-by-project how you want to organize your work. This, of course, means you can easily set up a wide variety of Scrum configurations. Binfire also specializes in communication features, with a pretty excellent group chat. My favorite part of this instant message-style chat is that it stays with you as you navigate through the program, allowing you to look at your work as you communicate with team members, rather than clicking back and forth between screens.

Unlike the first two apps covered here, there is no free version of Binfire. However, the lowest subscription level is just $5/person/month, which is pretty good value for money. It should be noted, however, that the minimum user count is six, so if you happen to be working on an extremely small agile team, this might not be the best choice for you.

Asana

best ecommerce apps

Asana (read our review) might take the cake for prettiest Scrum project management app. The clean design just invites users to drag-and-drop tasks back and forth between boards. In addition to the Scrum project view, Asana offers Gantt charts, excellent integrations, project reporting, and more. Really though, the biggest appeal in Asana is the absolute beauty of the UI. Some might consider this of little importance in a piece of software, but I personally feel that if you are going to be spending considerable time in an app, it had better be a nice place to be.

The pricing for Asana is incredibly simple. There is a free version (limited to just 15 users), a $10 version, and an enterprise version that you have to contact the sales team to learn the pricing for. Most of the good features in Asana only come from the paid version, so even if you are part of a team with less than 15 users, it might be worth paying the fee to get the rest.

Teamwork Projects

Teamwork Projects (read our review) is perhaps less adaptable to Scrum project management than some of the others on this list. However, with the recent addition of Board View to the app, it will be more than serviceable in this regard. One of the things I appreciate about Teamwork is that it is a very scalable product; if you have aspirations of growing your business beyond the “small” label, this could be the project management app for you.

Like Redbooth and Asana, Teamwork has a free option, offering a reduced feature set to users for either limited use or use as a trial phase. If you want the rest of Teamwork Projects’ features, you are going to be shelling out $9/user/month. This pricing category goes all the way up to 100 users. If you need more than that, the price per user will go up.

Final Thoughts

Scrum project management is one of the most approachable iterations of Agile methodology and could represent a huge boost in productivity and efficiency for your business. While the original whiteboard approach might work for some, for others a more technological approach will be more appealing. If that is you, any of these five options might suit you.

If I were pressed for a single recommendation, I honestly think I would go with Trello. While it offers fewer features than the other items on this list, it also is available completely free and is an absolute joy to use. But honestly, it would be difficult to go wrong with the others as well. Fortunately, you don’t have to choose completely blindly. Start by reading the complete reviews of the most likely candidates for your business, then sign up for one of the free trials before making your final decision.

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QuickBooks For Nonprofits 2018

QuickBooks For Nonprofits

As a nonprofit, you want the absolute best for your organization — and that includes accounting software. If you’ve started your search for the best accounting software for nonprofits, I’m sure you didn’t get far without hearing the name QuickBooks.

But is QuickBooks the right accounting solution for your small business or not-for-profit organization? Which QuickBooks product is best for nonprofits? And how do you know if QuickBooks has the nonprofit features you need?

We’ll answer these questions and more!

QuickBooks Nonprofit Products

First off, QuickBooks doesn’t have a separate product specifically designed for nonprofits. However, several of its existing products offer nonprofits features.

QuickBooks Premier

QuickBooks Premier (see our review) is a full-fledged, locally-installed accounting software designed for small to medium-sized businesses. QuickBooks Premier offers six industry-specific editions, including a nonprofit edition.

QuickBooks Enterprise

Like QuickBooks Premier, QuickBooks Enterprise (see our review) is a locally-installed software targeted to large businesses and enterprises. This product also has a nonprofit edition.

QuickBooks Online

QuickBooks Online (see our review) is a cloud-based accounting software with tons of features and over 200 integrations. While there aren’t any built-in nonprofit features in QuickBooks Online, there are a ton of integrations that can give you the nonprofit features you need.

If you’re looking for simple, web-based accounting software for nonprofits, QuickBooks Online is an excellent place to start. However, in this post, we’ll focus specifically on the nonprofit edition of QuickBooks Premier and QuickBooks Enterprise.

Pricing

One of the biggest differences between QuickBooks Premier and QuickBooks Enterprise is the cost. While both offer the nonprofit edition, QuickBooks Enterprise allows for more users, advanced inventory, and lead management. If you’re looking for discounted or free software for nonprofits, QuickBooks isn’t your best bet, but you get a lot for your money when you use one of the QuickBooks nonprofit editions.

QuickBooks Premier

QuickBooks Premier offers two pricing options. You can either purchase a QuickBooks Premier license for $499.95 or purchase a yearly subscription of QuickBooks Premier Plus for $499.95/yr.

A QuickBooks Premier license is good for three years, after which QuickBooks drops support. Phone support costs extra. The QuickBooks Premier Plus subscription includes phone support, updates, and data backup. Additional users cost extra.

Going with QuickBooks Premier Nonprofit Edition instead of the Standard Edition doesn’t cost any extra. For more details, visit QuickBooks Premier’s pricing page.

QuickBooks Enterprise

QuickBooks Enterprise has three pricing plans:

  • Silver (starts at $1,100/yr)
  • Gold (starts at $1,430/yr)
  • Platinum (starts at $1,760/yr)

The price of each plan is determined by your number of users. Subscriptions are renewed annually and include phone support, updates, and data backups. You can calculate how much your QuickBooks Enterprise software would cost on Intuit’s site. Like QuickBooks Premier, QuickBooks Enterprise Nonprofit Edition has no additional cost.

Basic Accounting Features

Both QuickBooks Premier and QuickBooks Enterprise have strong accounting features and are incredibly well-developed. Here’s an idea of the features you can expect to find with each software.

QuickBooks Premier Features

QuickBooks didn’t earn its strong reputation for nothing. QuickBooks Premier is one of the most comprehensive accounting programs out there. The software offers strong accounting features, including a customizable chart of accounts, journal entries, bank reconciliation, accounts payable, and over 135 reports.

QuickBooks for Nonprofits

QuickBooks Premier also offers invoicing, contact management, expense tracking, project management, inventory, and time tracking.

Some of our other favorite features include:

  • Tax support
  • Budgeting
  • Sales orders
  • Mileage deductions
  • To-do list and calendar
  • Print checks
  • Letter templates

All of these features do come at a price — the software has a steep learning curve. For accountants and those with accounting experience, QuickBooks Premier’s traditional setup may be easy to understand, but for those with limited accounting knowledge, the software will take some time to learn.

On the plus side, QuickBooks Premier offer decent customer support and receives extremely high praise (especially when compared to QuickBooks Pro). Read our comprehensive QuickBooks Premier review for all the details on these features and more.

QuickBooks Enterprise Features

Much like QuickBooks Premier, QuickBooks Enterprise has an impressive number of features, but with 6x more storage and advanced inventory capabilities, QuickBooks Enterprise is designed for large businesses and enterprises. QuickBooks Enterprise has the accounting features you’d expect including a chart of accounts, journal entries, bank reconciliation, fixed assets management, and accounts payable.

QuickBooks for Nonprofits

QuickBooks Enterprise also includes expense tracking, contact management, project management, and time tracking. While the invoicing is slightly more limited, there are several features that you won’t find with QuickBooks Premier like lead management, advanced inventory, a loan manager, a business plan tool, and the option to add Intuit Field Service Management.

QuickBooks Enterprise also provides:

  • Tax support
  • 140 reports
  • Class tracking
  • Mileage deductions
  • To-do list and calendar
  • Letter templates
  • Print checks

While there is a steep learning curve, QuickBooks Enterprise offers better customer support than QuickBooks Premier, making it ultimately easier to learn. Customer reviews on the software are mixed; you can check out our full QuickBooks Enterprise review for all of the details.

Nonprofit Accounting Features

In addition to the standard features that come with QuickBooks Premier and QuickBooks Enterprise, the nonprofit edition for both programs adds:

  • Pledges: You can create and manage pledges. When creating a pledge, you can record the item, description, class, amount, and tax.
  • Donations: You can record donation made by check, e-check, credit card, debit card, or cash.
  • Programs/Products: The Programs/Products tool lets you track specific projects and programs run by your nonprofit.
  • Donor Letters: With QuickBooks Nonprofit, you can create donor letters using QuickBooks Premier and QuickBooks Enterprise’s existing letter templates.
  • Customized Chart Of Accounts: The Nonprofit Edition comes with a default chart of accounts specifically designed for nonprofits. You can customize this chart of accounts to fit your organization’s needs.
  • Nonprofit Reports: One of the best parts about QuickBooks’ Nonprofit Edition is that you have access to nine additional nonprofit reports (in addition to the existing 135+ reports that come with QuickBooks Premier and Enterprise). You’ll find reports like a Statement of Financial, Position, a Statement of Functional Expenses (990), the Biggest Donors/Grants, the Budget vs. Actual Programs/Projects, and more.

The only downside of the QuickBooks Premier and QuickBooks Enterprise Nonprofit Editions is that you can’t change the title of your contacts; so all of your donors and volunteers will be called ‘customers’ and ’employees’ within the software.

Learn more about how real nonprofit organizations are using QuickBooks Nonprofit Edition.

Is QuickBooks Right For My Nonprofit Organization?

QuickBooks Premier and QuickBooks Enterprise are fully-developed accounting solutions. Each has a bit of a learning curve but offers impressive features and key nonprofit features. But how do you know if QuickBooks Nonprofit Edition is right for you?

Ask yourself these questions:

  1. Do I have time to learn how to use QuickBooks Premier or Enterprise?
  2. Do the QuickBooks Premier Nonprofit and/or QuickBooks Enterprise Nonprofit Editions include all of the features I need?
  3. Can I afford nonprofit accounting software from QuickBooks?

If you answered “yes” to all of these questions, great! QuickBooks may be a good fit for your nonprofit organization.

Before committing to QuickBooks, we recommend you take the software for a spin. Sign up for a free trial of QuickBooks Enterprise Nonprofit Edition. There is no free trial for QuickBooks Premier Nonprofit Edition, but you can still get an idea of what to expect using the Enterprise trial. Don’t forget to look at The Complete QuickBooks Product Comparison Guide to see the key differences between QuickBooks Premier and QuickBooks Enterprise.

If you can’t afford QuickBooks Premier or Enterprise, or if you want something easier to learn, check out our Top 10 Nonprofit Accounting Software Programs.

Read our Complete QuickBooks Premier Review

Read our Complete QuickBooks Enterprise Review

Read our Complete QuickBooks Online Review

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Can I Afford A Small Business Loan?

Can You Afford A Small Business Loan?

“Can I afford a small business loan?”

For many business owners, this is (literally) the $64,000 question!

With so many variables in play, it may seem daunting to calculate whether you can actually cover new loan payments. Luckily, there are multiple financial ratios in place to help you do just that.

In this post, we’ll teach you how to use the debt service coverage ratio and the debt-to-income ratio to determine whether you can afford a loan, what borrowing amount is right for you, what monthly payment you can afford, and if a loan is actually the right choice for your business. (If it turns out, based on these ratios, that you can’t afford a business loan just yet, we’ll also give you six practical tips to better your financial situation.)

Read on to see if your small business is ready for financing.

Is A Small Business Loan Right For Me?

This is the very first question you should ask yourself. Just because you can afford a loan doesn’t mean you should take one out. Before you start seeking funding, take the time to really consider your business’s financial situation.

Ask yourself what problems you would be solving by taking out a business loan and consider whether there is another way to solve those problems.

For example, if you’re looking for start-up funding, have you considered venture capital? Angel investors? Crowdfunding? If you’re having trouble maintaining consistent cash flow, have you carefully analyzed your operating costs or cut back unnecessary business expenses to increase revenue?

Make sure to explore all of your options before jumping the gun on your loan search. Now, that being said, there are plenty of solid reasons to get a business loan:

  • To expand your business
  • To purchase inventory
  • To buy equipment
  • To cover off-season expenses
  • To take on a new, high-potential project
  • To build business credit

When determining whether a small business loan is right for you, carefully meditate on your business’s short-term and long-term goals. If you haven’t already, make a business plan to help you achieve your future goals.

If a loan fits into this plan and benefits your business, great!

Next, we’ll talk about how to know if you can actually afford a loan, how much you can borrow, and what to change if you can’t afford a loan.

What Do Small Business Lenders Look For?

At the most basic level, lenders want to see that:

  1. Your business has enough cash flow to afford monthly payments.
  2. You can make those payments on time.

There are many factors that lenders consider when analyzing a loan application, but some of the most important variables are your credit score, your debt service coverage ratio, your debt-to-income ratio, and your ability to put up collateral.

We’ll cover all of these factors in greater detail below.

Using The Debt Service Coverage Ratio

The debt service coverage ratio is one of the main tools lenders use to determine whether you are eligible for a loan — it’s also one of the most important calculations small business owners can do before taking on new debt.

The debt service coverage ratio (DSCR) measures the relationship between your business’s income and its debt. Lenders use this ratio to gauge the risk of lending to you and to see if you can afford to make payments on a loan, given your business’s cash flow.

How To Calculate The Debt Service Coverage Ratio

Each lender calculates the debt service coverage ratio differently. Some lump the business owners’ personal income in with the net operating income; others don’t. We’ll cover the most common DSCR formula, but be sure to ask your lender how they calculate DSCR for the most accurate ratio.

Most often, your business’s DSCR is calculated by dividing your net operating income by your current year’s debt obligations:

Net Operating Income / Current Year’s Debt Obligations = Debt Service Coverage Ratio

Your net operating income is the total revenue generated by selling services or goods, minus your operating expenses (operating expenses include things like inventory, employee wages, rent, utilities — anything that is directly related to purchasing, creating, or selling your goods and products).

Your current year’s debt obligations comprise the total amount of debt you must repay in the next year, including interest payments and fees.

Let’s look at an example:

A business owner wants to know whether or not they can afford a loan to purchase some new equipment. The business takes in $65,000 in revenue annually but pays $15,000 in operating expenses, resulting in a net operating income of $50,000.

Each month, the business spends $2,000 on its mortgage, $400 on a previous loan, and $100 on a business credit card, making a total monthly debt of $2,500. Since the DSCR calculation requires the current year’s debt, we need to multiply our monthly debt by 12. That gives us a total of $30,000 in debt obligations for the year. Now, let’s plug these numbers into the DSCR formula from earlier.

Net Operating Income / Current Year’s Debt Obligations = Debt Service Coverage Ratio

50,000 / 30,000 = Debt Service Coverage Ratio

50,000 / 30,000 = 1.666667

When you divide 50,000 by 30,000 you get 1.666667. Round this number to the nearest hundredth to get a current debt service coverage ratio of 1.67.

We’ve successfully calculated a debt service coverage ratio! Plug in your business’s information to determine your own DSCR.

What Is The Ideal DSCR?

How do we know what a good DSCR is? What does the DSCR mean in terms of your business?

When it comes to DSCR, the higher the better. Let’s say your DSCR is 1.67, like in our earlier example; that means you have 67% more income than you need to cover your current debts. A DSCR ratio of 1 would indicate that you have exactly enough income to pay your debts but aren’t making any extra profit. If your DSCR is below one, then you have a negative cash flow and can only partially cover your debts.

Obviously, you don’t want a negative cash flow, and breaking even doesn’t quite cut it if you want to take out a loan. So what’s the ideal debt service coverage ratio?

In general, a good debt service coverage ratio is 1.25 or higher. This can vary by lender and by the state of the economy, but overall, a high DSCR suggests that you have enough income to take on another loan and are more likely to qualify for the loan you want.

How Much Can I Borrow?

Not only can your DSCR tell you if you can afford a loan, it can also help you determine the size of the loan you should take out.

Let’s take a look at our earlier example again. We calculated the business’s DSCR at 1.67. This is well above the 1.25 DSCR mark, yes, but it doesn’t necessarily tell you the size of loan the business can afford to borrow.

To figure out the amount the business can safely borrow, we’ll take its annual income and divide it by 1.25:

Net Operating Income / 1.25 = Borrowing Amount

50,000 / 1.25 = 40,000

From the calculation above, we can see that the business can afford to pay up to $40,000 a year on total debt obligations. In our example, the current year’s debt obligations were already $30,000/year. All in all, the business can take on an extra $10,000/year in debt (because $40,000 – $30,000 = $10,000). That amounts to roughly $830/mo.

Plug your own information into the equation so you can determine the ideal borrowing size for your small business loan. This will give you a clear idea of how much you can realistically afford to pay each month before you go and speak to a lender.

To learn more about the debt service coverage ratio, read our post Debt Service Coverage Ratio: How To Calculate And Improve DSCR.

Using The Debt-To-Income Ratio

Lenders also use your personal debt-to-income ratio to evaluate whether or not your business is eligible for a loan. The debt-to-income ratio is used primarily for personal loans (especially mortgages), but this ratio is still important for small businesses, especially sole proprietors.

The debt-to-income (DTI) ratio is a financial tool used to measure the relationship between a person’s debt and income.

Why Is DTI Important?

Your DTI is an important indicator of your trustworthiness. Whereas your credit score shows how likely you are to make your payments on time, your debt-to-income ratio shows lenders if you can afford the monthly payments on a personal loan or mortgage.

But if the debt-to-income ratio is predominantly for personal loans and mortgages, why is it important for small businesses?

For sole proprietors and freelancers seeking funding, this ratio is particularly important. Since sole proprietors aren’t legally considered separate business entities, they don’t have a debt service coverage ratio. Instead, the debt-to-income ratio is the main tool lenders will use to analyze a loan application.

While the debt service coverage ratio is by far a better indicator of small business’s financial state, lenders still look at the business owner’s DTI ratio. Lenders evaluate your DTI to see if you are trustworthy and to ensure that you can personally guarantee your business loan if no other collateral is provided.

When deciding whether your business can afford a small business loan, make sure you also consider if you can afford to personally take on the business loan payments if your business goes under. No one wants to think about the fact that their business may fail or that they might default on a business loan. But this scary reality is one you must consider before accepting a business loan. If you can’t afford to offer up collateral or take on the implications of a personal guarantee, then maybe a business loan isn’t right for you.

How To Calculate The Debt-To-Income Ratio

To calculate your debt-to-income ratio, divide your total recurring monthly debt by your gross monthly income:

Total Monthly Debt / Gross Monthly Income = Debt-To-Income Ratio

Your total monthly debt should include all recurring minimum monthly debt payments, while your gross monthly income should include your total monthly income before taxes.

Let’s do an example:

You’re trying to use your DTI to see if you qualify for a mortgage. You pay $300/mo for your car and $200 on student loans for a total monthly debt of $500. Your monthly gross income is $3,500/mo.

500 / 3,500 = Debt-To-Income Ratio

500 / 3,500 = 0.142857

When you divide 500 by 3,500, you’re left with 0.142857. To turn this decimal into a percentage, simply move the decimal point two places to the right and round to the nearest tenth. This gives you a current debt-to-income ratio of 14%. Easy!

Add your own financial information into the formula to see what your debt-to-income ratio is.

What Is The Ideal DTI Ratio?

Now that you know how to calculate your DTI ratio, what does that percentage mean? How do you know if you have a good DTI ratio or a poor ratio?

Unlike DSCR, when it comes to debt-to-income ratios, the lower the better. A low DTI indicates that you can afford to take on an additional loan and are more likely to get approved for the loan you want. A high DTI ratio means that you may have too much existing debt or too little income to be able to afford monthly payments on a new loan.

Generally, a DTI ratio of 36% or lower is considered a good debt-to-income ratio. Many lenders will finance (up to) 43%, but if your DTI is higher than 43%, you may have a hard time getting approved for a loan.

However, these percentages may vary by lender. Real estate and mortgage lenders are known to stick more closely to these guidelines, while other lenders may be more lenient. So be sure to research your lender’s requirements.

What Monthly Payment Can I Afford?

You can use the debt-to-income ratio to determine how much you can afford to pay each month on a loan.

This calculation is most important for sole proprietors seeking funding and individuals seeking mortgages. However, small businesses should still do this calculation to make sure that they can personally afford to cover the payments on a defaulted loan.

Let’s return to our example from earlier. Remember, you were trying to qualify for a mortgage loan. We calculated your current debt-to-income ratio at 14%.

To maintain a good debt-to-income ratio, you don’t want your total DTI ratio to exceed 36%. That means a potential mortgage can take up 22% of your total debt-to-income ratio (36 – 14 = 22).

In this example, to determine the size of the mortgage loan payment you could afford each month, simply multiply your gross monthly income by 22%. (To convert the percentage to a decimal, move the decimal point two spaces to the left.)

3,500 x .22 = 770

Assuming you still want to stick to a 36% DTI, you can afford to pay $770/mo on your mortgage while continuing to make your other monthly loan payments and covering everyday expenses.

To learn more about DTI, read our complete post: Debt-To-Income Ratio: How To Calculate And Lower DTI.

Consider Your Return On Investment

Finally, when determining whether your business can afford a business loan, you want to make sure the benefits ultimately outweigh the costs.

If you are spending the time, money, and effort on a loan, it’s important to have a good return on investment (ROI). Able Lending puts it this way:

The reasonable expected return on your investment must be greater than the APR.

In other words, a loan is only worthwhile if it ultimately helps your business’s profits exceed the costs of the loan, plus interest and fees. Before you borrow money, make sure you have a clear business plan and know exactly how you intend to use your loan to improve your business.

What If I Can’t Afford A Loan?

If you’ve made it to the end of this post and realized that you can’t afford a loan, don’t worry. It’s not the end of the world. There are plenty of ways to improve your business’s financial position so that you can afford a loan in the future.

1. Increase Revenue

Increasing your income can open the doors to more business opportunities and additional funding. By increasing revenue, you can improve your DSCR, lower your DTI ratio, and boost your chances of qualifying for a loan.

2. Decrease Existing Debt

Another way to increase DSCR and lower DTI is to pay off some existing debt. With old loans out of the way, you can move on and take out new loans to help propel your business forward.

3. Improve Your DSCR

We already mentioned that increasing your revenue and decreasing your existing debt can help improve your DSCR. Another way to improve your debt service coverage ratio is to decrease operating expenses. By cutting back on unnecessary expenses and streamlining your business processes, you’ll have a greater overall net operating income — which means more money that you could apply towards a loan.

4. Lower Your DTI

We also already mentioned that increasing your revenue and lowering your debt improves your debt-to-income ratio as well. For borrowers seeking a mortgage, making a bigger down payment is another good way to lower your DTI and decrease the size of your monthly payments.

5. Improve Your Credit Score

Another major roadblock businesses and individuals run into when seeking funding is a low credit score. Improving your credit score can help unlock better loans and rates. To learn more, read the Ultimate Guide To Improving Your Business Credit Score or our article on 5 Ways To Improve Your Personal Credit Score.

6. Lower Your Borrowing Amount

Maybe you really can afford a loan right now and just need to lower your borrowing amount. You may not be able to afford the $100,000 loan you were hoping for, but can you afford the monthly payments on a $50,000 loan? If you can satisfy your needs with a smaller borrowing amount, you should try to do so; if a smaller amount won’t meet the brief, use the first 5 tips above to improve your financial situation so you can afford the loan you want.

Final Thoughts

When wondering whether you can afford a small business loan, you should ask yourself:

  • Do I have a debt service coverage ratio of 1.25 or higher?
  • Do I have a debt-to-income ratio of 36% or lower?
  • Do I have collateral or can I confidently sign a personal guarantee?
  • Will the loan lead to a good return on investment?

If you’ve answered yes to all of these questions, odds are your business is in a healthy financial spot to take on a new small business loan. Use the debt service coverage ratio and debt-to-income ratio to discover exactly how big of a loan you can afford.

Wondering what type of small business loan you should take out? Not all loans are created equal, and a bank loan will be worlds apart from an atypical online lending product. Traditional term loans, short-term loans, SBA loans, and merchant cash advances all have very different rates, fees, and terms. Make sure you understand the differences between different types of funding before you jump the gun on any loan product. Our small business loan calculators can help.

Looking for good lending options? Our small business loan reviews cover online lenders and major banks that offer various types of loans (bank loans, SBA loan, short-term loans, installment loans, lines of credit and more). If you’re just starting out, you might want to consider taking out a personal loan and using it for your business.

To evaluate multiple low-interest lenders at once, it’s a good idea to use a free loan matchmaking service, often called a “loan aggregator.” Merchant Maverick has partnered with Mirador Finance, a financial technology company, to bring you the Merchant Maverick Community of Lenders. By filling out one application, you can be matched to multiple potential lenders. Check your eligibility below.

Borrower requirements:
• Free loan aggregation service; requirements vary by area and lender.
Check your eligibility
Learn more about the Community of Lenders

If can’t afford a loan yet, you should focus on increasing your ability to afford a loan and your chances of getting approved by a lender. Download our free Beginner’s Guide To Small Business Loans for more information, or consult any one of the following articles:

Debt Service Coverage Ratio: How To Calculate And Improve DSCR

Debt-To-Income Ratio: How To Calculate And Lower DTI

The Ultimate Guide To Improving Your Business Credit Score

5 Ways To Improve Your Personal Credit Score

The post Can I Afford A Small Business Loan? appeared first on Merchant Maverick.

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Stripe VS Braintree

Stripe VS Braintree
✓ Products & Services ✓
Fees & Rates ✓
✓ Sales & Advertising Transparency ✓
✓ Contract Length & Cancellation ✓
Customer Service & Technical Support ✓
Negative Reviews & Complaints ✓
✓ Positive Reviews & Testimonials ✓
Final Verdict  Winner
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Overview

If you need a tech-driven platform to power payments for your business, Braintree Payment Solutions (read our review) and Stripe (read our review) should be at the very top of the list. In addition to very strong developer tools with support for multiple programming languages, both companies are global service that can reach customers all over the world. But does one company excel more than the other? In the Stripe vs. Braintree debate, which company comes out on top?

Here’s the good news: Because their core offerings are so similarly aligned, it’s really easy to draw direct, apples-to-apples comparisons. And in most regards, Stripe and Braintree are very similarly matched. They both cater to some very large and/or very innovative businesses with industry-leading tools for online and mobile commerce, global business, and subscription/billing management.

Before committing to either of these platforms, it’s important to understand that to make the most of them you need advanced coding knowledge or a developer. You can go it alone with minimal knowledge, but you’ll be unable to harness the full potential of Stripe and Braintree. If you’re not tech savvy, another solution may be a better fit.

Braintree differs from Stripe primarily in that it issues merchants with their own merchant accounts, whereas Stripe is a third-party processor that aggregates payments. That means Braintree has much greater account stability than Stripe. Braintree also provides its tools at no additional cost beyond its flat-rate processing, whereas Stripe will assess small fees for the use of select services. So Braintree could very easily become the more cost-effective solution.

However, Stripe has made a name for itself with industry-leading tools, and you’re particularly interested in marketplace or subscription tools, Stripe is the standout option.

Normally, a merchant account is suited to merchants processing more than $10k/month (though some work with merchants with volumes as small as $5k/month). Braintree has no minimum and no monthly fee and says that it works with businesses of all sizes. That’s quite a bit different. With its similar pricing, Braintree is just as attractive an option as Stripe for new and small-but-growing enterprises.

The best solution for a business isn’t immediately clear here. You’ll need to look at what features are must-haves; you’ll need to consider costs. And if you are leaning toward Stripe, it’s worth considering the tradeoffs that you’ll make regarding account stability. Ultimately, it’ll be down to you and your developer to decide whether Stripe or Braintree is right for your business.

Read on for a more in-depth analysis of these two online payment gateways! Got questions? Comments? We’d love to hear from you, so leave us a comment!

Products & Services

Winner: Tie

First things first: both of these companies support all kinds of payments, from directly on a website to inside mobile apps. They both off a choice of pre-built and completely customizable payment forms. They also offer tools for businesses that operate on marketplace or subscription models. Differences between the two platforms really come down more to the nitty-gritty details. You can also find out more about each company and its offerings by checking out our complete Braintree Payments and Stripe reviews.

Braintree Payments

 

Braintree’s payment processing and gateway services support merchants in more than 45 countries, versus 25 for Braintree. However, merchants can reach customers all across the globe with support for 130+ currencies. One of the biggest draws is Braintree’s PayPal integration. Because Braintree is a PayPal owned company, it makes sense that the integration between the two would be seamless.

Braintree’s SDKs support both Android and iOS for mobile developers, as well as six other languages. And you’ll find support for major payment methods across the globe, as well.

Braintree Supported Programming Languages

  • Android/iOS
  • Java
  • .NET
  • Node.js
  • PHP
  • Python
  • Ruby

Braintree Supported Payment Types

  • ACH Direct Debit
  • Credit Cards
  • PayPal
  • Venmo
  • Apple Pay
  • Google Pay
  • Amex Express Checkout
  • MasterPass
  • Visa Checkout
  • UnionPay

Braintree Core Features 

Braintree categorizes its core offerings into four services. I like the way they are grouped because it helps better explain what Braintree is capable of doing for different kinds of businesses.

  • Braintree Direct: If you want to sell directly on your own website, this is the solution for you. Direct includes subscription tools (see below for more information).
  • Braintree Marketplace: Braintree’s marketplace tools allow you to create your own platform and manage the sellers and payouts with automation.
  • Braintree Auth: “Auth” (assuming that’s short for Authorization) is Braintree’s platform for other service companies to integrate the Braintree gateway into their solutions. This allows these companies to securely access their merchants’ data and take certain authorized actions on their behalf. For example, an invoicing company could use Auth to create an integration with their platform and allow Braintree merchants to connect their accounts and populate invoices based on data from the customer vault. Auth is also the tool that lets businesses make it possible to onboard merchants and accept payments natively.
  • Braintree Extend: Formerly called contextual commerce, Braintree has expanded its offerings here. The merchant hosts the payment checkout and transaction data, but is able to share the transaction data with partners. This creates a seamless, frictionless commerce experience for customers and keeps them on your site. Extend would be the appropriate platform for booking sites (hotels, airlines, event tickets, etc.) and other businesses that want to empower merchants/partners to sell through their website or app.

Additional Braintree Features

  • Fraud Management Tools: Braintree separates its fraud management tools into two tiers: Basic, which includes control over AVS and CVV checks, as well as risk threshold analysis. Advanced fraud tools require more work to enable, but include a partnership with Kount, a fraud management service. Kount Standard is offered at no charge, but if you want more control over transactions and your risk management policies, you can implement Kount Custom. You must meet Braintree’s requirements and it will cost more. In addition to all of that, Braintree also supports 3D Secure for additional verification.
  • Multi-Currency Displays And Conversions: Braintree allows merchants to display prices in local currency rather than just the merchant’s default currency, which can help entice international sales. Braintree even automatically converts the currency for you. Global businesses with bases of operation in several countries can connect multiple bank accounts and help reduce processing costs by eliminating the need for conversion.
  • Recurring Billing And Subscription Tools: Braintree has some powerful recurring billing and subscription tools whether you sell software or physical goods. However, you will notice a shortage of some specific features, such as invoicing. Stripe’s suite of tools is more advanced in this regard. However, if invoicing is a concern, don’t forget that Braintree integrates pretty seamlessly with PayPal and so you can use PayPal or another integration as an extension.
  • Account Auto-Updater: Reduce failed transactions and canceled subscriptions with Braintree’s Account Auto-Update feature. Expired and re-issued cards from certain institutions will automatically update with new card data to ensure continuity.
  • Reporting: Braintree offers a smattering of default reports in its control panel, including transaction-level reporting. However, even the company admits that you’ll probably outgrow the standard reports. Braintree’s Reports API allows you to generate custom reporting based on criteria you set. And unlike Stripe, this feature costs nothing at all.
  • Integrations: Braintree does support a variety of integrations, including eCommerce shopping cart software. You can browse available integrations on Braintree’s site.

I certainly think Braintree has everything most merchants will need. It does lack a few features that Stripe offers, but it’s a hugely capable system. And the seamless Payal integration could be a major draw from some merchants who have loyal PayPal customer bases.

Stripe Payments

Stripe is available to merchants in 25 countries at the time of writing this, including some betas. You can check out Stripe’s Global page for a complete list. However, regardless of merchant location, you can accept payments from all over the globe. Stripe actually supports 135+ currencies.

In addition, Stripe’s SDKs include support for Android/iIOS and seven other programming languages. Accepted payment methods depend on the merchant’s location, but Stripe supports many popular local payment methods in the EU and China in particular.

Stripe Supported Programming Languages

  • Android/iOS
  • Go
  • Java
  • .NET
  • Node.js
  • PHP
  • Python
  • Ruby

Stripe Supported Payment Methods 

Stripe’s supported payment methods can be broken down into universal methods and local payment methods. Whereas Braintree focuses on universal payment types, Braintree has worked hard to add support for payment types common in markets such as the EU and China. Let’s start with universal payment types:

  • Alipay
  • Apple Pay
  • Google Pay
  • Microsoft Pay
  • Amex Express Checkout
  • Masterpass by Mastercard
  • Visa Checkout
  • WeChat Pay

Local Payment Methods are only available in their regions where they are most popular, generally speaking:

  • ACH
  • Bancontact
  • EPS BETA
  • Giropay
  • iDEAL
  • P24 BETA
  • SEPA Direct Debit
  • SOFORT
  • WeChat Pay

Stripe Core Features

Stripe claims to offer more than 100 features, though it’s not exactly clear how it defines a “feature.” Still, you can do an awful lot with this company. Here’s a quick primer on what you can expect:

  • Payments: Stripe Checkout is a prebuilt form you can just drop into your site. But if you need something more customizable, Stripe Elements will let you design a form that suits your needs. You can build payments into your site or your mobile app.
  • Connect: Stripe’s Marketplace tools are definitely some of the most robust out there. Build and manage your own platform, including automated payouts to your merchants. Connect also facilitates connecting Stripe to other services (such as building native payments into eCommerce software) in the same way as Braintree Auth.
  • Billing: “Billing” now encompasses all of Stripe’s subscription, invoice, and recurring billing tools. Stripe’s subscription tools have always been powerful, but with the addition of invoice capabilities and the option for metered billing, it’s safe to say that you really can’t beat what Stripe has to offer.

Despite the differences in how these companies market and present their tools, the reality is, Stripe still has many of the same functions as Braintree. They’re just framed and presented in a different way.

Additional Stripe Features:

  • Sigma: Stripe offers an assortment of standard reporting tools in its dashboard. However, if you want more advanced reports, then you’ll need Sigma. For an additional monthly fee (based on volume, see the pricing section below for more details) you can generate custom reports based on SQL queries.
  • Radar: Stripe’s fraud monitoring tools include machine learning to identify and flag suspicious transactions. Merchants can review and override transactions they know to be legitimate, or set up custom rules for fraud transactions, all with far less fuss than you’ll see with Braintree. If you’re very comfortable with fraud management, this is definitely an advantage.
  • Multi-Currency Displays And Conversions: Stripe has spent a LOT of time billing itself as the platform of choice for global businesses. It should come as no surprise then that Stripe allows merchants to display pricing in local currencies and automatically handles the currency conversion. You can connect multiple bank accounts to save money on conversion costs, too.
  • Account Auto-Updater: Keep recurring transactions from failing when customers get new cards. Stripe will automatically update card data in your vault to ensure continuity of subscriptions.
  • Integrations: Stripe has more than 300 integrations with all kinds of other software and services a business might need. The sheer number of supported integrations could be a significant advantage for some merchants. You can browse integrations by categories on Stripe’s “Works With” page.

If everything is starting to sound really similar, it’s because these two companies really are evenly matched in most regards. it comes down to little details — like the fact that Stripe is a third-party processor while Braintree issues traditional merchant accounts. Or the fact that Stripe has far more ready-to-go integrations than Braintree.

Braintree has an advantage in that it’s available to merchants in 15 more countries, but both companies are evenly matched in the number of currencies accepted and their multi-currency displays. Also, Braintree’s pricing model (see below) is also far more straightforward and will save merchants money versus Stripe, which now charges merchants for access to many of its advanced tools.

My overall impression is that for the most part, Stripe is willing to give you more freedom with less oversight. The tradeoff, of course, is account stability.  For example, you have complete control over your fraud monitoring tools and which transactions are approved, but it’s quite possible to make a mistake and find yourself in hot water. Braintree offers a comparable set of features, but there will be a couple more hoops to jump through if you want the same degree of control over fraud management as you get with Stripe.

You’ll also find that Stripe’s subscription tools are far more advanced than Braintree’s. However, an integration (though more costly) could but Braintree on a more even keel here.

All in all, Braintree and Stripe are pretty evenly matched, and it’s hard to call one superior to the other. So much depends on what features you need and what payment methods you want to accept.

Rates & Fees

Winner: Braintree

Baseline pricing for Square and Stripe is pretty simple, and similar. However, because Stripe has started charging for access to some of its features, merchants will find themselves paying more with Stripe than they will with Braintree.

Let’s start with transaction rates:

  • Card Transactions: 2.9% + $0.30 per card transaction for both Stripe and Braintree
  • ACH Processing: 0.75% for Braintree, 0.8% for Stripe (both capped at $5)

If you’re wondering, the $5 cap for ACH transactions would kick in at $625 for Braintree, and about $665 for Stripe transactions. However, Stripe says the $5 cap starts at $625. However, I imagine for many merchants the wibbly-wobbly space between $625 a $665 won’t be much of an issue.

It’s also worth mentioning that with Braintree, you can accept PayPal and PayPal Credit transactions. Those process at the rates determined by your PayPal account, but for the most part, you can expect them to be 2.9% + $0.30.

Both Braintree and Stripe allow you to accept cards from outside your home country. Those will cost an additional 1% per transaction; if the transaction is processed in one currency and settled in another, another 1% fee also applies for both companies.

Discounts and Alternative Payment Plans

I want to point out that Braintree does offer alternative payment plans for some merchants:

  • Interchange-Plus Pricing: Available in Europe as well as to high-volume merchants (more than $80,000/month) in the US.
  • Nonprofit Discount Rate: 2.2% + $0.30  (Amex processed at 3.25% + $0.30)

Braintree doesn’t offer its own micropayments plans, but you can integrate Braintree with PayPal and use PayPal’s micropayments plan (5% + $0.05) instead.

Stripe also offers discounts as well:

  • Volume Discounts: Stripe doesn’t specify the threshold for enterprise pricing/custom discounts. It also doesn’t indicate anywhere easily found whether those custom discounts include interchange-plus pricing.
  • Nonprofit Discounts: Stripe mentions that 501(c)(3) nonprofits may be eligible for custom discounts. It doesn’t disclose what those rates are. In addition, the wording used on Stripe’s website sounds more like “we’ll see if we can work something out,” so it’s safe to assume not all nonprofits will qualify.
  • Microtransactions: Stripe says its sales team will work with merchants who want to implement micropayments, but it doesn’t specify what the cost is.

You’ll notice a trend here, I hope: a lack of disclosure. All of these pricing features are available, but Stripe fails to mention them. This likely indicates that the pricing isn’t consistent from one business to the next (usually volume and industry are two of the biggest contributing factors). It’s not a red flag, but it’s disappointing when you look at Braintree with its disclosures.

Additional Fees

Both Stripe and Braintree assess a $15 fee per chargeback incident, which is industry standard.

Braintree will refund your processing costs in the event you issue a full refund to a customer (it will not return fees on partial refunds, however). This is very nice, and it isn’t universal across all processors. PayPal, for example, keeps the $0.30 per-transaction fee but will refund the percentage fee.

Stripe does not refund processing fees for refunded transactions. This is (somewhat surprisingly) stated very clearly at the bottom of Stripe’s pricing page.

Generally speaking, Braintree charges absolutely nothing for access to all its features and tools. However, you may incur additional charges for using 3D Secure depending on your rate plan. Using Kount Custom as part of your advanced fraud monitoring will also incur additional costs.

Stripe has modified its pricing to include additional fees for its subscription, marketplace, and reporting tools.

Stripe Billing (including all of the formerly free subscription tools) now assess a small percentage charge. Pricing is lumped into two tiers:

  • Starter: Free for first $1 million in transactions; afterward, 0.4% in addition to processing costs
  • Scale: 0.7% in addition to processing costs; includes additional features and discounted processing costs.

If you used Stripe’s subscription tools before April 5, 2018, you are grandfathered out of these costs and can use Stripe Billing at no additional charge. That’s actually quite nice — and somewhat unexpected.

Sigma, Stripe’s reporting tool, is priced on a sliding scale based on volume. I’ll admit this is a fair way of pricing a service like this — it’s better than tiered packages that are divided by the amount of info available or the number of queries you could generate. This way small businesses get a very fair price for advanced business info.

  • <500 Transactions: $0.02/charge plus $10 infrastructure fee
  • 501-1,000 Transactions: $0.018/charge plus $25 infrastructure fee
  • 1,001-5,000 Transactions: $0.016/charge plus $50 infrastructure fee
  • 5,000-50,000 Transactions: $0.014/charge plus $100 infrastructure fee

Beyond that point, your business moves into enterprise-level pricing and you’ll get a custom quote. You can test out the pricing tool for yourself on the Stripe website.

Costs for using Connect, Stripe’s marketplace tools, are laid out on the website pretty clearly, which is nice to see given how little other information is out there.

Also, merchants who are on a custom payment plan will pay an additional $0.04 per transaction

One final point of consideration: With Stripe, you can’t access the gateway separate from the company’s processing services. But you can do that with Braintree, for $49/month + $0.10 per transaction. That’s a bit pricey for a gateway fee, but it could easily be worth the cost to access to all of Braintree’s tools.

All in all, Braintree is the winner here simply because it offers most of its features at no additional charge beyond processing costs, and that translates to savings for merchants.

Contract Length & Cancellation

Winner: Tie

With both Stripe and Braintree, merchants have no multi-year contracts. Everything is pay-as-you-go, so if you find a better service you are free to leave at any time. This is always good to see. But what’s even better is that both companies will help you migrate your data (customer database and card vault) securely to ensure seamless continuity. And that’s not just good, it’s awesome.

Sales & Advertising Transparency

Winner: Tie

I’m always happy to say when any processor is fair, honest, and transparent. In this case, I am extra happy to say both companies fit the mark. You won’t find any deceptive sales tactics, misleading quotes, or pushy sales reps here.

You’ll pay exactly what you’re quoted with both Stripe and Braintree, which is awesome. I like that both companies use flat-rate pricing by default. It’s hard to compare that number to interchange-plus models, which are usually the most cost-effective; however, you know exactly what you’ll pay for every transaction regardless of card brand. Flat-rate pricing is far more transparent than tiered pricing models, too.

You’ll find both companies are great at pushing out information about new features and how to use them, as well, and they’re upfront about matters such as customer service channels, integrations, and more.

Perhaps the only mark against Stripe is that while its terms of service spell out that an account can be terminated at any time for any or no reason, plenty of merchants seem to gloss over this or forget it entirely…until it happens to them. Stripe is a third-party payments provider, which means that the company doesn’t do extensive underwriting or investigation into your company when you apply for an account. The tradeoff to getting your account set up quickly is that you will face more intense scrutiny after the fact. Stripe has been known to terminate merchants with no warning, whether it’s for too many chargebacks or the company’s risk assessment team identifying a pattern of high-risk transactions. When this happens, there’s no appeals process to reinstate an account. You just need to move on and find a new processor.

To be fair, Braintree seems to exhibit some of this same behavior, despite the fact that it isn’t a third-party processor. When you sign up with Braintree, you do get a traditional merchant account. However, while I have seen complaints about this behavior, the overall volume is incredibly low, especially for a company as large as Braintree. So my honest assessment is that while it can happen, it happens only rarely with Braintree users. Account terminations are more common with Stripe because of its third-party processing model — but again, an account termination is an exception to the rule, rather than the norm. Most importantly, you should be aware that this is a possibility but you can take steps to protect yourself.

First, make sure you check out Stripe’s Prohibited Businesses list and then also look at Braintree’s Acceptable Use Policy. Both of these documents outline what kinds of merchants they won’t work with, so make sure your business isn’t on the list.

You can also check out our resources, including our guide on how to avoid holds, freezes, and account terminations.

Customer Service & Technical Support

Winner: Braintree

One of the most difficult parts of assessing customer support is that experiences vary so much from one merchant to the next. With some notable exceptions, it’s fairly common to see at least one negative review focusing on customer support for every good review that praises a company’s customer support. So as a reviewer, I look for patterns that can clue me into what, if anything is going on. But it’s also important to look at what support channels are offered and how they serve merchants. Being able to talk to a real, live person in real time is such an important aspect of good service for many merchants.

Braintree is a clear winner in this category. It likes to tout its “white glove service”; even ignoring the marketing buzz, when you take a look at the options and availability, it becomes clear that Braintree has worked hard to cater to merchants’ needs.

Braintree Support Options

  • Email: Email support is available from 5 AM to 12 AM US Central Time, Monday-Thursday and 5 AM to 8 PM, Friday. It’s nice to see the extended weekday hours, but the lack of any sort of weekend hours is a bit disappointing.
  • Knowledgebase & Documentation: In my experience, Braintree makes it much easier to find information about particular features and how to use them than Stripe does. The self-service knowledgebase includes extensive guides so that even merchants who aren’t technically inclined can make sense of Braintree’s features without having to wade through the documentation. And generally speaking, developers seem to approve of Braintree’s documentation and the available resources. The company seems to have made some major strides forward and is up there along with Stripe in terms of documentation quality.
  • Phone support: Hours for Braintree’s phone support are 8 AM to 7 PM US Central Time, Monday-Thursday and 8 AM to 5 PM, Friday. Again, I think the lack of weekend support hours is disappointing, but it’s nice to see extended weekday hours.

I do want to point out that Braintree does make one additional promise about its customer support:

Of course, we offer emergency support via email 24x7x365, and have support reps and engineers on-call at all times.

So it’s nice to know that in an emergency you’ll at least know someone is there to answer your questions and help your business running again. But I have no data about whether this emergency support is effective (or even necessary).

Stripe Support Options

  • Knowledgebase and Documentation: I personally haven’t found Stripe’s self-service knowledgebase to be very informative. It’s quite basic, and if you want to learn more about all of Stripe’s features or understand how they fit together, you’ll need to look at the documentation. However, I will say this: Stripe’s documentation is the gold standard. So developers will have no trouble here.
  • Email: Stripe doesn’t offer a turnaround time for emails, just that the company will “get back to you as soon as we can.”
  • Freenode IRC Chat: Stripe’s developers apparently spend their time in the #stripe channel if you need technical assistance. Unsurprisingly, most developers seem to like this aspect of support.

Stripe doesn’t offer phone support, and it doesn’t offer any information as to when its team is on call to respond to questions, all of which is a bit disappointing. But it’s the quality that counts, right? Except, reports suggest Stripe’s customer support isn’t always awesome, either. Check out the next section, “Negative Reviews & Complaints,” for more information.

Negative Reviews & Complaints

Winner: Braintree

The overall quantity of complaints is only one factor we use to evaluate a merchant because you also need to consider the overall size of the business.

Braintree doesn’t publish current numbers for its merchants, and Stripe is vague about it. All we know is that the number exceeds 100,000, which is a good number for any merchant services provider. But we do know that both Stripe and Braintree are enormous companies that handle billions of dollars each year. Part of that is because they both serve some very large, high-profile clients. But you’ll certainly find plenty of smaller businesses and startups using these platforms, too.

On the whole, Stripe has far more complaints floating around than Braintree does. This isn’t too surprising because third-party processors, including Stripe, tend to have a high number of complaints overall, usually for 1 major reason:

  • Holds and Terminations: Third-party processors or aggregators can’t offer the same sort of stability that you get with a traditional merchant account because the onboarding process for new merchants doesn’t include the traditional in-depth analysis of the business and underwriting. That means accounts are more likely to face termination for suspicious behavior after they get up and running. This is absolutely the pattern we’ve seen with Stripe and it is one of the two biggest complaints about the company.

The other major complaint about Stripe is:

  • Poor Customer Service: One of the biggest gripes in the customer service department is the lack of phone service. When something is not right, merchants want to talk to a real, live person. When companies that provide core services like payment process don’t offer that, it leaves merchants upset. That’s what I’ve seen with Braintree. However, other customer service complaints say that support is unresponsive and unhelpful. This is particularly true in the account of funding holds or terminations. I don’t see many complaints about the quality of support for everyday sort of issues.

And then there’s Braintree. Braintree overall has far fewer complaints scattered across the web. (Considering this is a PayPal-owned company, I continue to be absolutely flabbergasted by this fact.) However, you will see some similarities to Stripe complaints:

  • Account Terminations: I want to make it clear that references to merchants who have had their accounts terminated are few and far between. They aren’t the majority of Braintree complaints, and even if they were, they would still be uncommon. From what I can tell, an account termination usually occurs when a business is deemed high risk. Whether this is a flaw in the screening process or a determination made by analyzing processing history or particular transactions, I don’t know.
  • Poor Customer Support: Complaints in this category seem to center on slow response times for email support, as well as inconsistent answers from support reps. However, I do see other merchants praising Braintree for the quality of its customer support, too.
  • Long Setup Times for Accounts: Some complaints focus on the fact that it can take a while to establish an account with Braintree. I know we live in the age of instant gratification, but sometimes vetting can take time.

All in all, it’s easy to call Braintree the winner in this regard. You’ll likely deal with fewer headaches and hassles with Braintree, and you’ll certainly see far greater account stability.

Positive Reviews & Testimonials

Winner: Tie

Stripe is a media darling, for sure. There’s no shortage of articles about the company’s co-founders, the Collison brothers, or about how massive the company is, the way it disrupts payments technology, etc.

Braintree doesn’t get quite as much press, but its parent company, PayPal does.

But press coverage doesn’t really tell the whole story.

Most of Stripe and Braintree’s big success stories come from household names. Big companies that you’ve probably heard about. You can see a shortlist of logos from prominent Braintree clients on its homepage; you can find a longer list on the Merchant Stories page.

However, what I like best is that Braintree actually has case studies for how these different companies have used Braintree to build successful businesses and process payments. These case studies aren’t exactly common, so it’s nice to see them — and so many, at that.

Stripe’s client list is no less impressive than Braintree’s though. You can find a shortlist on the homepage as well, but a more in-depth list on the Customers page. It offers only brief snippets instead of case studies, but the page does showcase the ways you can use Stripe.

But what do everyday merchants have to say? What do developers say?

Both Stripe and Braintree are popular with developers, and the consensus is that they both offer good documentation, extensive libraries, and powerful features.

Braintree’s merchants also praise the company’s customer support — at least, the customers who don’t have a problem with the customer service praise it. It appears the customer service excels on both the technical/developer side and the merchant side.

I also see Stripe get a lot of compliments for its well-designed website and the intuitive user interface in the dashboard.

Let’s call this one a draw.

Final Verdict

When two options are as similar in appearance as Stripe and Braintree, it can be tempting to say “Eeny Meeny Miney Mo!” and point to one and roll with it. But I hope you’ve got a slightly better understanding of where Stripe and Braintree align and where they are very different.

Obviously, the stability of a merchant account can be a major draw, and some businesses won’t want to sacrifice that even if it means spending a bit more on integrations to get features they need.  On the other hand, Stripe has several best-in-class tools that some businesses may find absolutely essential, such as its Billing tools. The risk of an account termination is relatively small so long as your business model is sound, you’re not on the list of prohibited business types, and you take appropriate measures to mitigate the risk of fraudulent transactions and chargebacks.

Both of these companies integrate with some major shopping cart software options, so if you’re looking primarily for an easy way to take payments, you can certainly go that route. But having a developer will really make it possible to harness the full capabilities of both companies.

It’s important that you sit down, make a list of must-have features and a list of “Would be nice” features. If you can’t make a choice based on those criteria, have a discussion about the account stability issue and decide how much risk you’re willing to tolerate. Also consider the customer support that each company offers and the fact that you may end up having to pay more for using some of Stripe’s best features.

Don’t forget to check out our complete Braintree review, as well as our Stripe review, for good measure.

Thanks for reading! I always love to hear from readers, so if you have questions or comments, please leave them below! We’ll be happy to help you!

The post Stripe VS Braintree appeared first on Merchant Maverick.

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Debt-To-Income Ratio: How To Calculate And Lower Your DTI

Debt-To-Income Ratio: How To Calculate and Improve DTI

When applying for loans, we often worry most about our credit scores. Many people don’t realize that there’s another factor that lenders consider: your debt-to-income (DTI) ratio.

But what is the debt-to-income ratio, and why does it matter?

In this post, we’ll cover everything you need to know about the debt-to-income ratio. We’ll teach you what a DTI ratio is, how to calculate your debt-to-income ratio, what a good DTI ratio looks like, how to lower your DTI, and more.

What Is The Debt-To-Income Ratio?

The debt-to income (DTI) ratio is a financial tool used to measure the relationship between a person’s debt and income. The DTI ratio is calculated by dividing recurring monthly debt payments by gross monthly income.

When applying for a loan, lenders look at your DTI to see if you can afford regular monthly payments based on your income and to determine how much of a risk you are.

The debt-to-income ratio is primarily used when applying for personal mortgages (though some other personal loans depend on your DTI as well). For small businesses applying for loans, greater value is placed on your debt service coverage ratio (DSCR).

However, the debt-to-income ratio is still important for sole proprietors and freelancers in need of financing. Sole proprietors aren’t legally considered separate business entities and therefore don’t have a DSCR — this means lenders will look at your debt-to-income ratio when considering your loan application.

Why The Debt-To-Income Ratio Is Important

Your debt-to-income ratio is important for two reasons:

  1. It indicates how financially healthy you are.
  2. It plays a large factor in how likely you are to qualify for a loan.

Before applying for a loan, it’s important to consider whether you can actually afford one. By calculating your DTI ratio, you can analyze how much existing debt you have and whether or not it’s financially wise to take on more debt considering your monthly income. In addition, figuring out your DTI ratio will help you determine how much debt you can realistically take on.

If you calculate your DTI and see that there’s room to wisely take on more debt to purchase property or expand your business, awesome. If you have too much debt or too little income, taking on more debt might not be the right option — at least not until you lower your DTI. Knowing your DTI ratio before you even start talking to potential lenders will save you a whole lot of trouble.

For lenders, your DTI is important as well. Whereas a credit score shows how likely you are to make payments, your debt-to-income ratio shows lenders that you can afford to make monthly payments on a potential loan.

If your debt-to-income ratio is too high, lenders may reject your loan application because you’re too high of a risk. If your DTI is low, lenders are more likely to approve your loan because they trust that you will be able to pay back your debt.

Here are some of the key benefits of a low debt-to-income ratio:

  • More likely to qualify for a loan
  • More likely to receive an offer with better loan terms
  • Increases your chances for lower interest rates and higher loan amounts
  • Can potentially afford to take out multiple loans
  • Less stress and worry about if you can make your monthly payments

For small businesses, your personal DTI also has a role to play. While most predominantly look at a small business’s debt service coverage ratio (DSCR), many lenders also evaluate a business owner’s DTI, both to affirm your trustworthiness and to ensure that you can personally guarantee your business loan if no other collateral is provided.

The bottom line? The DTI is incredibly important for individuals and business owners alike.

How To Calculate Your Debt-To-Income Ratio

To calculate your debt-to-income ratio, you’ll need to divide your total recurring monthly debt payments by your gross monthly income. The DTI is always expressed as a percentage. This is the DTI ratio formula:

Total Monthly Debt / Gross Monthly Income = Debt-To-Income Ratio

But how do you determine your total monthly debt and gross monthly income?

Total Monthly Debt

Your total monthly debt includes all of your recurring monthly debt payments, such as mortgage payments, car payments, student loans, credit card balances, etc.

To tally your total monthly debt, add up all of the minimum payments on your monthly debt. For example, if you pay $100/mo on your credit card, but only have to pay a minimum of $25/mo, use $25 when adding your total recurring monthly debt.

Gross Monthly Income

Your gross monthly income is your total monthly income before taxes. You can calculate this a few ways. If you get paid on salary, use this formula to determine your gross income per month.

Gross Monthly Income = Annual Salary / 12

If you get paid hourly, first multiply your hourly wage by the average number of hours you work each week. Then multiply that number by 52 to get your annual gross income. Divide that number by 12 to get your monthly gross income.

Be sure to include all forms of monthly income in your gross monthly income calculation.

Examples

Now that you know how to figure your total monthly debt and your gross monthly income, let’s do an example using the DTI formula from earlier:

Total Monthly Debt / Gross Monthly Income = Debt-To-Income Ratio

Let’s say you’re trying to use your DTI to see if you qualify for a mortgage. You pay $300/mo for your car and $200 on student loans for a total monthly debt of $500.  Your monthly gross income is $3,500/mo.

500 / 3,500 = Debt-To-Income Ratio

500 / 3,500 = 0.142857

When you divide 500 by 3,500, you’re left with 0.142857. To turn this decimal into a percentage, simply move the decimal point two places to the right and round to the nearest tenth. This gives you a current debt-to-income ratio of 14%.

Now, we’ve successfully figured a DTI ratio! Try putting your own financial information into the formula.

What Is A Good Debt-To-Income Ratio?

You now know how to calculate your DTI ratio, but how do you know what the DTI ratio means? Is your DTI good or bad?

When it comes to DTI ratios, the lower the better. A low DTI indicates that you can comfortably take on a loan and make your monthly payments, which means you are more likely to be approved by lenders.

A higher DTI indicates that you may struggle to cover monthly payments, making it more difficult to qualify for loans.

While accepted debt-to-income ratios vary by lender, generally a DTI of 36% or lower is considered a good debt-to-income ratio. Many lenders will finance (up to) a 43% DTI. If your DTI is higher than 43%, you may have a hard time getting approved for a loan. You should consider lowering your DTI before applying.

Again, this will vary by lender. According to Lending Tree:

While the mortgage industry has specific guidelines that most lenders will adhere to, other types of loans are less regulated and largely leave the decision in the hands of the lender.

Mortgage lenders often stick to the 28/36 rule (they’ll lend you a loan so long as your DTI is below 36% with no more than 28% going toward the mortgage). Other types of loans may not be so dependant on these numbers. Some lenders may grant funding to people with a DTI of 43% or higher, albeit with less favorable terms and rates. It all depends on the lender and the type of loan you’re applying for.

For this reason, it’s important to research each lender’s specific qualifications and strive to keep your DTI as low as possible. This will both increase the likelihood of getting approved for a loan and give you peace of mind about your financial health.

Using DTI To Determine If You Can Afford A Loan

Not only does your DTI tell you if you can afford a loan, it also helps determine how big of a loan you should take out.

For example, let’s return to our example from earlier. Remember, you were trying to qualify for a mortgage loan. We calculated your current debt-to-income ratio at 14%.

If you want to keep a good debt-to-income ratio, you don’t want your total DTI ratio to exceed 36%. That means a potential mortgage can take up 22% of our total debt-to-income ratio (36 – 14 = 22).

We can now use this number to determine the size of the mortgage loan payment you could afford each month. Simply multiply your total gross income by 22%. (To convert the percentage into a decimal, move the decimal point two spaces to the left.)

3,500 x .22 = 770

If you want to stick to a 36% DTI, you can afford to pay $770/mo on your mortgage while still making your other monthly loan payments and covering everyday expenses.

If you approach a potential lender knowing exactly how much you can afford to pay each month, you can avoid being heckled into borrowing more than you can afford.

How To Lower Your Debt-To-Income Ratio

By now, the importance of a low debt-to-income ratio has sunk in. The real question becomes: how can you lower your DTI? There are several ways to lower your debt-to-income ratio:

  • Increase your monthly income
  • Pay off some of your debt
  • Decrease your borrowing amount

Increasing your income is a good way to lower your debt-to-income ratio, though this option doesn’t always seem achievable. Consider asking for a raise or starting a side hustle to bring in more additional income.

Decreasing your debt is another viable option. Carefully evaluate your budget. Cut unnecessary expenses and allocate that money to paying down your debt instead. You can pay off your debt quickly using various methods like the debt snowball method or the debt avalanche method. Depending on your financial situation, consolidating your debt might also be a good option.

If you’re applying for a mortgage loan, you can also make a larger down payment, which will lower your monthly payments and, in effect, lower your DTI.

Final Thoughts

The debt-to-income ratio is important for individuals, sole proprietors, and small businesses alike. Your DTI ratio is a big decision-maker for lenders. But more than that, calculating your DTI can help you analyze your financial health, determine whether taking on more debt is right for you, and help you pinpoint how much you can afford to borrow.

As always, we recommend carefully evaluating your financial situation before seeking financing. Evaluate your DTI, consider where you want to be financially, and know exactly how you would use a loan ahead of time. Once you’ve done this, evaluate all of your lending options before making a decision, so that you can get the best terms and rates. Merchant Maverick’s small business loan calculators can be a great resource when you start looking at individual loan products.

Looking for good lending options? Our small business loan reviews cover both online lenders and major banks. We’ve also reviewed lines of credit and MCAs, though you should think long and hard before taking out a merchant cash advance. If you’re just starting out, you might want to consider taking out a personal loan and using it for your business.

The post Debt-To-Income Ratio: How To Calculate And Lower Your DTI appeared first on Merchant Maverick.

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Easy Accounting Software For Small Businesses

Easy Accounting Software for Small Businesses

If you’re reading this, you’re in the market for a simple accounting solution. Maybe you don’t know anything about accounting and need a program that’s easy to learn. Or maybe you’ve been using Sage or QuickBooks Desktop Pro and are tired of the confusing accounting lingo.

The good news is that accounting doesn’t have to be difficult, and neither does finding easy accounting software. Thanks to the Cloud, there are plenty of full-featured, capable accounting programs that are easy to use and can help small business owners gain control of their business’s finances.

In this post, we’ll cover the top seven easiest accounting software programs. Each program on this list is easy to use and makes learning how to manage your accounting a breeze. We’ve included options to fit every budget and multiple business types.

Each program is ranked by how easy it is to use, how well the software is designed, and how quickly it can be mastered. Read on to see which is right for you!

1. WaveEasy Accounting Software For Small Businessses

Wave (see our review) is an eminently easy to use accounting software — and with a price of $0, it’s easy on the budget as well. Excellent customer support, competitive pricing, and great features have earned this software 4.5/5 stars on our site.

Best For…

Small businesses on a tight budget that still want strong accounting capabilities. Ideal for Etsy sellers and micro businesses.

Wave Pricing

As we mentioned earlier, Wave is free, no gimmicks or strings attached. With a Wave account, you get access to all Wave features and unlimited users. The only extra costs to be aware of are payroll and payment processing. Read our complete Wave review for all of the pricing details.

Wave Features

Wave is well-developed software that even rivals some paid programs in terms of features. This app is incredibly easy to navigate, and the learning curve is minimal, making it a great choice for business owners with little previous accounting experience. The software covers all of the accounting basics including invoicing, expense tracking, accounts payable, bank reconciliation, and more.

Easy Accounting Software for Small Businesses

Wave also has several unique features. In Wave, users can separate personal and business expenses, which is ideal for freelancers or side hustlers who don’t have a separate business bank account. Wave also offers Lending by Wave, which helps business owners gain access to capital through a partnership with OnDeck (see our review). Learn more about this financing option in our post Lending by Wave: Everything Small Businesses Need to Know.

Other features include:

  • Item management
  • Reports
  • Receipts
  • Contact management

Wave doesn’t offer as many integrations as its competitors; however, it does have a Zapier integration, which connects Wave with over 750 third-party apps. Besides Zapier, there are only three other integrations. (The Etsy integration makes Wave a great choice for Etsy sellers in need of simple accounting.) Wave also has several mobile apps.

There are a ton of customer support resources that make the software easy to learn. Only payroll users have phone and chat support, but Wave’s support team answers emails quickly and there’s a thorough help center with how-to videos.

The only downside to the software is that there is no project management feature and time tracking is limited to payroll users. There also isn’t a true inventory feature. If these features are integral to your business, you’ll have to use an integration. Or you can take a look at one of the other options on this list.

Takeaway

If you’re looking for an affordable accounting option, it doesn’t get better than Wave. With positive customer reviews, excellent customer support, and a well-organized UI, it’s no wonder this free accounting software is so popular. It’s easy to jump straight in and start using Wave, even with little previous accounting experience.

To learn more, read our full Wave review or sign up for an account to test the software yourself. You’ve got nothing to lose — after all, it’s free.

Read our full Wave review

Visit the Wave website

2. Zoho BooksEasy Accounting Software For Small Businesses

Created in 2011, Zoho Books (see our review) offers unbeatable invoicing and strong mobile apps. In fact, recent updates have put Zoho Books on par with QuickBooks Online in terms of features, but with better customer service, cheaper pricing, and a more user-friendly UI, Zoho Books is a great option for small businesses.

Best For…

Small businesses in need of strong online accounting, affordable pricing, and good invoicing. Ideal for international business.

Zoho Books Pricing

Zoho Books offers three affordable pricing plans ranging from $9/mo – $29/mo. Each plan comes with basic features and unlimited invoices. The larger the plan, the more contacts, users, and advanced features you’ll have access to. Read our Zoho Books review for the details.

Zoho Books Features

Zoho Books has an impressive number of features. With good customer support and a well-designed UI, the software is easy to use and learn. The software has all of the features you’d expect from a fully-developed accounting solution including invoicing, contact management, expense tracking, time tracking, inventory, project management, and even tax support.

Easy Accounting Software for Small Businesses

The best part about Zoho Books is its invoicing offerings. Zoho Books offers 15 customizable invoice templates, a client portal where customers can pay invoices directly online, recurring invoices, and the unique ability to encrypt invoices. There are also many automations that make it easy to invoice customers, like the ability to autoschedule invoices to be sent at a later time. In addition, you can send invoices in over 10 languages, making Zoho Books a great choice for international business.

You’ll find these key accounting features as well:

  • Accounts payable
  • Charts of accounts
  • Bank reconciliation
  • Fixed asset management
  • Reports

Zoho Books offers 30 integrations, including 12 payments gateways options and a Zapier integration that connects Zoho Books to over 750 other third-party apps. Zoho Books also has easy accounting apps that are highly developed and praised by existing users.

Zoho Books is known for great customer service. Phone support and email support are both available. Representatives are generally helpful and quick to respond to questions. The majority of customer reviews are positive, and users especially like the level of support they receive.

The only drawback is that Zoho Books has no payroll feature. You’ll either have to find a payroll integration or opt for a different software.

Takeaway

With almost as many features as QuickBooks Online, Zoho Books is definitely a contender worth considering. The software is easy to use and its invoicing features are unbeatable. Great customer support, a good number of integrations, and international features are also perks of the software.

If Zoho Books sounds like it might be a good choice for your small business, start a free trial or read our complete Zoho Books review to learn more.

Read our full Zoho Books review

Visit the Zoho Books website

3. ZipBooksEasy Accounting Software for Small Businesses

ZipBooks (see our review) is an up-and-coming accounting software that was launched in 2015 and offers a free accounting software plan. The software may be new, but it has already mastered simplicity. ZipBooks is one of the easiest accounting programs out there, and with a free plan, unlimited users, and ample automations, it’s not hard to see why this software gets 4/5 stars.

Best For…

Small businesses in need of affordable, strong accounting. Ideal for business owners with little previous accounting experience.

ZipBooks Pricing

ZipBooks offers three pricing plans ranging from $0/mo – $35/mo. Each plan comes with unlimited invoicing and unlimited users, which is almost unheard of (especially for the free plan) Each pricing level adds more features. Read our complete ZipBooks review to see which plan’s features suit your needs best.

ZipBooks Features

ZipBooks offers a good number of features that are easy to use and has one of the most attractive interfaces out there. The software’s design is simple and intuitive, using automations to save you time. The UI is even color-coded to make navigation a breeze. ZipBooks offers the basics you’d expect from accounting software, including invoicing, contact management, and expense tracking.

Easy Accounting Software For Small Businesses

One unique aspect of ZipBooks is that the software takes the data you input and uses it to provide helpful business insights, including a business health score and business recommendations specific to your financial situation.

In addition, ZipBooks offers:

  • Time tracking
  • Project management
  • Reports
  • Category tracking

ZipBooks only comes with eight integrations, so if you’re looking for ample add-ons, this may not be the software for you.

If you’re looking for good customer support, ZipBooks has you covered. Representatives are quick to respond to questions. Phone support is available for the paid plans. Other support options include email, in-software chat, a knowledge base, and a blog.

Before purchasing ZipBooks, there are a few potential drawbacks to consider. Compared to the other choices on this list, ZipBooks has very limited invoicing and only a small number of accounting reports. There also is no item or inventory feature. Despite these shortcomings, ZipBooks receives many positive customer reviews.

Takeaway

If you’re looking for easy accounting software, ZipBooks is hard to beat. With a great design, good learning resources, and ample automations, ZipBooks does everything it can to make accounting simple.

If ZipBooks sounds like a good fit for your business, use the free plan to take the software for a spin. Read our complete ZipBooks review to learn more.

Read our full ZipBooks review

Visit the ZipBooks website

4. FreshBooksEasy Accounting Software

FreshBooks (see our review) is invoicing software with a few bookkeeping tools tossed in. Although it’s not true “accounting” software, we kept in in the mix because it is incredibly easy to use and free of accounting jargon.

Best For…

Small businesses looking for strong invoicing and basic bookkeeping but not a full accounting software.

FreshBooks Pricing

FreshBooks offers three pricing plans ranging from $15/mo – $50/mo. Most features are included in all plans, so each larger level mainly adds more billable customers.

FreshBooks only supports a single user (additional users cost an extra $10/mo each). Read our full FreshBooks review to learn more.

FreshBooks Features

FreshBooks has always been easy to use, but a recent redesign has made the user experience even simpler and the UI more attractive. Setup is simple and the software takes very little time to learn. In terms of features, you’ll find invoicing, expense tracking, contact management, and more.

Easy Accounting Software For Small Businesses

FreshBooks offers two customizable invoice templates and a client portal where customers can pay their invoices directly online. One of the coolest features in FreshBooks is the ability to chat with your customers directly on their invoices.

Other features include:

  • Project management
  • Time tracking
  • Reports

FreshBooks offers 60 integrations, which is significantly more than most invoicing programs. There are also mobile apps available.

FreshBooks has great customer support. Representatives are friendly, helpful, and quick to respond. There is phone support, email support, a help center, and several other resources to help you learn the software.

For the most part, FreshBooks receives positive customer reviews; however, there are some recurring complaints.

In addition to not being true accounting software, FreshBooks only supports a single user — and this invoicing software is already more expensive than most accounting software. Instead of purchasing additional users, you’d get more bang for your buck by choosing a full-fledged accounting program (or a less expensive invoicing program like Zoho Invoice or Invoicera).

Takeaway

While FreshBooks isn’t accounting software, many small businesses are able to look past the lack of double-entry accounting because the software is so simple and easy to use. This easy bookkeeping software is ideal for small businesses that only need to send invoices and track expenses.

If the simplicity of FreshBooks sounds appealing to you, take the software for a spin with a free trial or read our comprehensive FreshBooks review to learn more.

Read our full FreshBooks review

Visit the FreshBooks website

5. QuickBooks Self-EmployedEasy Accounting Software for Small Businesses

QuickBooks Self-Employed (see our review) is tax software designed to help freelancers with basic bookkeeping and tax support. While QuickBooks Self-Employed isn’t exactly accounting software, it offers easy bookkeeping and tax support for freelancers.

Best For…

Freelancers, contractors, and other self-employed individuals needing basic bookkeeping and tax support. Ideal for managing estimated quarterly taxes and maximizing deductions.

QuickBooks Self-Employed Pricing

There are two pricing options for QuickBooks Self-Employed. There’s a $10/mo plan that includes all of the software’s features. Going with the $17/mo plan adds a Turbo Tax integration, so you can easily file your self-employed taxes.

QuickBooks Self-Employed Features

QuickBooks Self-Employed is well-organized and easy to use. The features help simplify estimated quarterly taxes and allow freelancers to manage their expenses and track their deductions.

Easy Accounting Software For Small Businesses

This software also makes it easy to separate personal and business expenses, which is ideal for freelancers who don’t have a designated business bank account. LIke Wave, QuickBooks Online also has a built-in lending feature called QuickBooks Capital (see our review) that helps small businesses manage gain access to working capital to manage their cash flow.

In addition, QuickBooks Self-Employed offers:

  • Invoicing
  • Fixed asset management
  • Schedule Cs
  • Tax checklist

QuickBooks Self-Employed offers a small number of integrations, but the Turbo Tax integration is the best part of the software by far. This integration makes self-employed taxes a breeze and makes it easy to file taxes online.

Unfortunately, QuickBooks Self-Employed is known for poor customer service. With no phone support and limited additional resources, it can be hard to find help, though the company is working to improve this. There is a live chat feature, a redesigned help center, and a small business resource center with helpful business advice.

While QuickBooks Self-Employed is a great option for managing your federal taxes, our one concern is that the software lacks state tax support. This means you’ll have to find another way to file state taxes.

Takeaway

If you’re a freelancer looking for a way to manage your finances and taxes, QuickBooks Self-Employed could be a good option for your business. The software is easy to use and comes with good mobile apps for quick access to your data.

To learn more about this software, read our complete QuickBooks Self-Employed review. If you’re already convinced, sign up for a free trial or start using the software today.

Read our full QuickBooks Self-Employed review

Visit the QuickBooks Self-Employed website

6. SlickPieEasy Accounting Software For Small Businesses

Founded in 2015, SlickPie (see our review) is an easy-to-use accounting software that has already received positive customer reviews and press coverage. Like Wave and ZipBooks, SlickPie offers an impressive free plan and a beautiful interface.

Best For…

Small businesses on a tight budget in need of basic accounting features and bookkeeping automations.

SlickPie Pricing

SlickPie offers a free plan and a paid plan which costs $9.95/mo. Both plans come with basic features and unlimited users. The main difference is the number of invoices you are allowed to send. Read our complete SlickPie review for all of the pricing details.

SlickPie Features

As we mentioned earlier, SlickPie is easy to use and offers several automations to help save you time and energy. There are a few occasional navigational difficulties and the organization could be improved, but overall the software is simple to set up. Features include invoicing, expense tracking, contact management, accounts payable, and more.

Easy Accounting Software for Small Businesses

One of the coolest features is SlickPie’s MagicBot, which is a data entry tool that automates your receipts. When you take a photo of your receipt, SlickPie will automatically gather the information from the photo and enter the data for you.

Here are some other features found in SlickPie:

  • Chart of accounts
  • Item management
  • Reports

SlickPie only offers three integrations, which might not cut it for many small businesses.

This app does have good customer support, however. Emails are responded to incredibly quickly. There is also phone support and a helpful knowledge base. SlickPie receives positive customer reviews, especially where support is concerned.

There are a few limitations to consider when comparing SlickPie to the other options on this list. While SlickPie is still easy to use, the software is difficult to navigate at times. There are also no project management or time tracking features. Unlike the other options, SlickPIe does not have mobile apps.

Takeaway

SlickPie is simple accounting software with basic features and a few promising automations. However, its limited automations, missing features, and occasionally unintuitive organization may rule this software out as a viable option for some small business owners.

If you’d like to learn more, read our complete SlickPie review or see the software in action for yourself by signing up for a free account.

Read our full SlickPie review

Visit the SlickPie website

7. QuickBooks OnlineEasy Accounting Software For Small Businesses

QuickBooks Online (see our review) is a fully-featured accounting software program that is generally easy to use. With 200+ integrations, strong mobile apps, and tax support, it’s no wonder this software receives 5/5 stars.

Best For…

Small businesses looking for a full-featured accounting solution that is relatively easy to use. Ideal for businesses with five users or fewer (though you can add up to 25 users for an additional cost).

QuickBooks Online Pricing

QuickBooks Online offers three pricing plans ranging from $15/mo – $50/mo. The larger the plan, the more feature you have access to and the more users you can have.

Payroll costs an additional $39 – $90/mo (plus $2/mo per employee). Read our full QuickBooks Online review to learn more and to see if Intuit is running any sales promotions.

QuickBooks Online Features

While this cloud accounting software is not quite as easy to use as the other options on this list, the trade-off is more advanced features. Set up is a bit involved and the organization is occasionally difficult to navigate, but compared to other big-name programs like Xero, Sage, and AccountEdge Pro, QuickBooks Online is a piece of cake.

Easy Accounting Software For Small Businesses

QuickBooks offers double-entry bookkeeping and strong accounting features like bank reconciliation, accounts payable, reports, and a chart of accounts. You’ll also find invoicing, expense tracking, time tracking, project management, and more. In terms of invoicing, QuickBooks Online offers the second best templates and automations (with Zoho Books being the first).

Other features include:

  • Class tracking
  • Client portal
  • Tax support
  • Contact management
  • Budgeting
  • Inventory

With over 200 integrations, QuickBooks has more integrations than any other accounting program on this list. This includes 15 payment processing options and great mobile apps.

As we mentioned earlier, QuickBooks has been known for poor customer service in the past. Recently, QuickBooks Online has made great strides to improve their customer support. While the company still has a ways to go, phone response times have greatly improved and a redesigned help center makes it easy to find assistance.

Takeaway

While QuickBooks Online may not be quite as easy to use as the other options on this list, this online accounting software might be a good fit for businesses looking to get the most bang for their buck in terms of features.

Read our comprehensive QuickBooks Online review to learn about all that this software has to offer, or sign up for a free trial to see for yourself.

Read our full QuickBooks Online review

Visit the QuickBooks Online website

Final Verdict

Any one of these simple small business accounting software options will allow you to easily manage your business’s finances and balance the books, no matter what level of accounting experience you bring to the table. Ultimately, the decision will come down to your budget and the features your business needs.

Want a good double-entry accounting solution that’s more robust than the options we discussed above? I suggest trying Xero, Sage, AccountEdge Pro, or QuickBooks Pro. These apps aren’t quite as easy to use as the seven programs in this post, but they come with far more advanced features. If you need higher-level inventory management, payroll software, or a more refined method to track bank accounts, credit card payments and/or credit card charges, you’re going to be better off with one of these solutions. Conversely, for small business owners who are in the market for something very simple and don’t want to pay anything for an accounting app, we’ve compiled a list of the best free online accounting software programs out there.

If you need more help deciding, read the Complete Guide to Choosing Online Accounting or 20 Questions To Ask Before Choosing Accounting Software. And don’t forget to download the Beginner’s Guide to Accounting — in this free ebook, we make accounting simple and teach you everything you need to know without the confusing accounting jargon.

As always, let us know if you have any questions, and happy hunting!

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