There was a time when CPAs spent hundreds of hours manually managing books to keep company finances in good shape and calculating taxes the traditional way. Thanks to modern accounting and tax software, tasks like accounts receivable & payable management, bookkeeping, and tax filing are no longer herculean in nature.
Modern accounting and tax preparation software are powerful tools that not only help CPAs improve accounting efficiency but also save clients from penalties and legal issues. Still, a lot of CPA firms have no idea which tax and accounting software make more sense for their business
In this blog, Finsmart – trusted for best outsourced accounting services– will talk about the best accounting and tax software of 2022. Read on to discover our list of popular tax accounting software for accountants and CPAs:
#1 FreshBooks
A modest application togged up in a user-friendly interface, FreshBooks is a powerful cloud-driven accounting tool for CPAs looking forward to an efficient software experience for themselves and their clients. Founded and developed in 2003 by 2ndSite Inc, it packs a plethora of features.
FreshBooks helps small CPA firms in the US with recurring invoices, tax estimations for sales tax, and payments & expenses management. Want to scan your bank accounts and match account activity with financial records? No problem. Need to look at the history of every invoice your business has sent? Consider it done. Want to set payment reminders? Fret not!
This accounting and tax software provides CPA firms with a wide range of useful tools that can be accessed easily through a desktop or smartphone. FreshBooks offers multiple plans for diverse CPA needs. FreshBooks’ Lite plan cost around $7.50 a month. Plus and Premium plans cost around $15 and $27.50 per month respectively.
FreshBooks highlights:
- Customizable invoices
- Payment reminders
- Recurring invoices
- Multi-currency billing
- Inventory management
- Easy to organize receipts
- Tax-friendly expense categories
- Automatic tax calculations for sales tax
- Bank deposits, recurring payments, and auto bills with bank integration
- Streamline accounting functions
#2 Sage
Laozi once said, “The Tao of the sage is to work without effort.” The Sage accounting and bookkeeping software is all about this! a cloud-based accounting system, it requires no installation or software download to operate. Specifically geared towards the requirements of small and mid-sized global businesses, it offers a variety of different products that can make accounting and bookkeeping as simple as ABC.
Talking about products, Sage helps businesses get the ball rolling when it comes to expense and compliance management, bookkeeping, and accounting processes. Thanks to the free trial offered by the developers, users can try to get a knack for this software and ensure that it is the right option for them before going along with one of its plans.
Sage offers three plans to businesses, namely Pro, Premium, and Quantum Accounting. The yearly cost of these plans is $340, $554, and $919 respectively. There’s also a free trial plan!
Sage highlights:
- Cloud-based software
- In-depth reporting
- Budgeting or cash flow forecasting
- Robust reporting
- Make and reconcile invoices
- Easy accessibility
#3 QuickBooks
Another amazing cloud-based accounting and tax software by Intuit’s Quickbooks. This accounting solution helps CPA firms with invoicing, report generation, tax preparation, and much more. Popular amongst small and mid-sized accounting organizations in the United States, it makes it easy to track the overall financial health of a company by conjuring up a clear picture of income and expenses.
Using QuickBooks, CPA firms can generate custom and compliant invoices, sales receipts, and estimates within minutes. The accounting tax software updates all transactions and statements automatically, allowing accountants to stay on top of cash flow data. Other than these features, QuickBooks is also popular for delivering error-free accounting and refining the cash flow management function.
Like most accounting tax software, QuickBooks comes with monthly and yearly subscription plans. The price for the basic plan starts from $30/month and the premium ones can go up to $200/month.
Best practices for improving accounts receivable process
QuickBooks highlights:
- All-in-one accounting solution
- Cloud-based software
- Sorts transactions and expenses automatically into tax categories
- Scalable
- Track expenses in one place
- Allows to scan receipts and attach them to invoices
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#4 Microsoft Dynamics 365
Our list of best accounting and bookkeeping software will be considered incomplete without talking about Microsoft Dynamics 365 finance. Excellent bookkeeping and accounting are based on effectualness and preciseness. And this software is all about these aspects.
Dynamics 365 Finance makes entry easier by allowing businesses to automate purchase invoice entries. And that’s not it! You can also manage payroll and create rich automated experiences across financial management tasks. Overall, it is a comprehensive business accounting and bookkeeping management software.
Dynamics 365 Finance comes at a monthly cost of $180.
Microsoft Dynamics 365 features:
- Cost-effectiveness
- Scalability
- Robust data security
- Real-time accounting and bookkeeping insights
- Access to predictive analytics
#5 Xero
The next software for accountants and tax practitioners on our 2022 list is pretty popular right now. Xero is an all-inclusive cloud-based tool best suited for CPAs that prepare a high number of returns during the tax season. Also trusted by Finsmart Accounting, it can help manage tax preparation, lodgement, and compliance tasks for all your bookkeeping clients with ease.
Xero also provides powerful features to simplify bookkeeping. For example, it has an built-in automated converter that automatically converts currency make bookkeeping easier. Want to configure bank feeds for more accurate and faster results? Can be done within a few clicks. Xero comes with integrated support to around 700 apps and addons.
The starter plan of this tax preparation and accounting software costs $20 a month while the premium plan commands a price of $40 a month.
Xero highlights:
- Cloud-based services
- Send invoices and quotes
- All bank transactions reconciled
- Lets you enter bills
- Supports multiple currencies
- Easy to use
- Comparatively lower price than its alternatives
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#6 Zoho Finance
Zoho Finance packs all important accounting and finance tools that can help you make informed decisions and allow you to stay on top of your business. The accounting software helps manage the money flowing in and out of the business in an easy manner through Zoho Books, Zoho Invoice, Zoho Inventory, Zoho Payroll, and more.
This accounting and bookkeeping solution also enables CPAs and entrepreneurs to manage clients, reconcile bank accounts, generate invoices, manage payroll, and generate insightful financial reports all of which will assist in growing the business smoothly.
Zoho Finance (Plus) is available for $105 per month to organizations interested in streamlining all the back office work.
Zoho Books highlights
- Improves billing and invoicing process
- Collects payments efficiently
- Expense tracking
- Project management and timesheet
- Inventory management
- AR and AP management
- Minimal chances of losing accounts and bookkeeping data
- Bank reconciliation
- Compliance management
- Invoice management
#7 Oracle Netsuite
Our list of the best accounting software for CPA firms will be considered incomplete without taling about Oracle Netsuite. It is a remarkable web-based program packing robust features and reporting capabilities. Geared towards small to medium-sized accounting businesses, this tool can help you with recording transactions, managing payables and receivables, collecting taxes, and much more.
While Oracle Netsuite is mostly accessed from desktops or laptops, it does let accounting teams, executives, operation teams, and employees access data from their smartphones (thanks to its cloud-based capabilities) anywhere and anytime. This software also enables timely, accurate reporting, and greater control of financial assets.
Oracle Netsuite pricing includes a $999 monthly licensing fee and monthly per-user fee that costs businesses around $99.
Oracle Netsuite highlights:
- Better accounts receivable and payable process
- Simplified tax management system
- Payment processing
- Allows to manage billing operations
- Turns quotes into invoices
- Supports governance, risk, and compliance programs
- Syncs data with client’s files
- Revenue recognition
- Better financial planning and reporting
Automate accounting and tax preparation with Finsmart
We have listed the best accounting and tax software that are helping accountants and tax practitioners in the United States record and report financial transactions, manage accounts, track revenue & expenses, store receipts, stay tax-law compliant, and streamline filing.
Keep in mind that the selection of the right accounting tax software depends on several factors including your unique requirements. Finsmart Accounting works with all modern accounting and tax solutions to help its clients manage finances and accurately prepare tax files.
Got any queries to ask? Send them to info@finsmartaccounting.com and have them answered by our bookkeeping, accounting, payroll management, and tax preparation experts.
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Founder & Director
Shalaka Joshi, a Chartered Accountant passionate about outsourcing and problem-solving, brings over 20 years of extensive experience in accounting, payroll, and MIS reporting to her professional endeavors
