How Free Accounting Software Can Benefit Your New Business

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Bringing your business idea to life is so rewarding. But managing business finances? That’s a whole new story.

From tracking profit and loss to managing invoices and payroll, you need an all-in-one solution to stay organized. Otherwise, you risk running out of cash or miscalculating an important outgoing payment.

Luckily, free accounting software can help you keep track of everything without breaking the bank. And if you need more features, higher-tiered plans can be affordable.

Let’s take a closer look at the benefits of free accounting software for new businesses.

But first, let’s get a few things squared away …

Table of Contents

Is Free Accounting Software Actually Free?
What Features Should I Look For in Free Accounting Software?
Are There Limitations with Free Accounting Software?
How Secure is My Financial Data with Free Accounting Software?
Can I Use Free Accounting Software on Mobile Devices?
Is Support Available for Free Accounting Software?
How Free Accounting Software Can Benefit New Businesses
Wrap Up

Is Free Accounting Software Actually Free?

It might sound hard to believe, but many “free accounting software” options are genuinely free.

This usually means they have a basic plan they don’t charge for, especially if it’s an on-premise (self-hosted) version.

However, the free version might offer limited features and a cap on the number of invoices you can send. To see if this affects your operations, sign up for a free trial of a higher-tiered plan with extra perks. Compare and contrast to determine whether the free version is sufficient for your needs.

Always read the fine print to understand what you’re getting.

What Features Should I Look For in Free Accounting Software?

When researching free accounting software options, look for ones that have at least the following four features:

Financial reporting: Check if the software generates financial reports. You’ll need these for tax season and to track your financial progress.
Multi-currency support: If you work with international clients, look for accounting tools that offer multi-currency support.
Expense tracking: Look for accounting software that lets you track your expenses to keep your budget in check.
Invoicing: Make sure the accounting tool offers a way to create and send professional invoices.

With these essential accounting features, you’ll keep your new business finances organized immediately.

Are There Limitations with Free Accounting Software?

Yes, free accounting software can come with some limitations. Many free versions restrict the number of invoices you can send. Others might limit the features you can access, like payroll or a client portal.

This may hinder businesses looking to grow.

But in the end, what’s considered a “limitation” depends on your business’ unique needs.

There’s nothing wrong with starting with a free version and then scaling up. Some software solutions also offer reasonable, lower-tiered plans. For instance, freelancers and solopreneurs only pay eight dollars per month on Akaunting’s Standard Cloud plan (if they pay annually) or $12 monthly if they choose to pay month-to-month.

How Secure is My Financial Data with Free Accounting Software?

Security is a big concern when it comes to managing your finances.

Look for software that offers strong encryption to protect your information from hackers. And always check the software’s security policies before you sign up.

Regular backups are also essential. They keep your data safe in case of unexpected issues.

Akaunting is an open-source platform, which means its source code is available for everyone to see. If you choose Akaunting, you can rest assured that your financial data is being handled securely.

Can I Use Free Accounting Software on Mobile Devices?

Yes! Many free accounting software options have mobile apps to manage your finances on the go. You can check your bank transactions, send invoices, and track payments from anywhere.

Is Support Available for Free Accounting Software?

Support for free accounting software can vary.

Often, you’ll rely on community forums or self-help resources. Some paid plans may provide more comprehensive support if you need tailored assistance.

For instance, at Akaunting, we provide plenty of in-depth resources so you can troubleshoot issues on your own. In our help center tab, you’ll find answers to common questions, community support, and a way to get in touch with us.

While it’s great to have free software, make sure you know where to find help if you need it.

How Free Accounting Software Can Benefit New Businesses

Let’s dig deeper into how free accounting software can truly benefit your new business. Here are several ways you can use it to your advantage:

Cost-Effective Solution

Track your finances without spending a dime.

As a new business owner, every penny counts. Using free accounting software saves you money that you can then invest elsewhere. For example, you can spend more on marketing or to expand your product line.

You can also use it to optimize your tax position, saving you more money. You may qualify for deductible expenses like office supplies, software, and internet services. Even your home office can be a tax shelter by lowering your taxable income. The right accounting software will help you track these deductions.

To clarify what you can deduct, ensure you understand your business entity. Work with someone who specializes in your legal framework so they can help you pinpoint the right deductions. For instance, consult with the top LLC services if you have registered your business as an LLC.

User-Friendly Online Access

Manage your money on the go. Most free accounting software offers cloud-based options, so you can access it from any device with an internet connection, including computers, tablets, and smartphones.

Check your balance sheet on your tablet while waiting for an appointment. Or send an invoice from your smartphone after a client meeting.

Open Source Security

Breathe easier, knowing your data is in good hands.

As mentioned, Akaunting is an open-source platform. This means the source code is available for everyone to review. Many businesses appreciate this level of security — especially when dealing with sensitive information.

Comprehensive Features

Take advantage of robust features. Free bookkeeping tools may offer invoicing, expense tracking, and cash flow management.

With everything in one place, you can more easily manage your finances.

There is no need to juggle multiple software solutions.

Expense Tracking

Categorize expenses and see where your money’s going.

This helps you make informed decisions. If you notice high spending in one area, adjust accordingly. You can also track employee spending to ensure they’re sticking to your allotted budget.

Some solutions also offer automated expense tracking. This is especially helpful if you purchase the same things for your business on a regular basis. For instance, you might travel to the same hotel conferences and restaurants for monthly meetings. With the right solution, you’ll get automated receipts and expense tracking to help you skip the manual entry.

Transaction Categories

Organize your income and expenses for streamlined finance management. Akaunting, for example, lets you create categories for better tracking.

You can separate business and personal expenses and view your workflows at a glance. This approach makes budgeting and forecasting easier. You’ll always have a clear picture of your financial situation.

Client Portal

Get direct access to your clients with a portal.

You might have to pay for this feature — but it’s well worth it.

With a portal, you can share transactions and invoices easily. Clients can access their invoices and make payments directly through the portal. This convenience can lead to quicker payments.

Global Reach

Manage your finances across multiple currencies and languages. With support for over 50 languages, Akaunting caters to a diverse user base and is trusted by users in more than 100 countries.

If your business operates internationally, our software can support your needs.

Scalability

Choose accounting software that can scale alongside you.

We have designed Akaunting to grow with your business. With 200k+ users and unlimited invoice sending, it suits freelancers and small companies. As your business expands, you won’t need to switch software. This scalability saves you time and hassle in the long run.

Support and Resources

If you have questions or encounter any issues, you can find answers quickly in your free accounting tool’s dedicated help center.

You can look through its guides, tutorials, and blog posts to learn how to fix your problem or use the software better.

Wrap Up

Free accounting software is a great starting tool for new businesses — it offers essential features without the cost. Manage your finances, track expenses, and create professional invoices easily. This, not only saves you money, but it helps you focus on your business growth goals.

Ready to take control of your finances? Give Akaunting a try. You’ll find a cost-effective solution that fits your needs. Start managing your financial health today!

Author bio: Vergine Melkonyan

Vergine Melkonyan is a content writer and SEO specialist at Renderforest, experienced in writing SaaS and marketing content, helping customers to easily perform web scrapings, automate time-consuming tasks, and be informed about the latest tech trends with step-by-step tutorials and insider articles.