If you are a new business or freelance bookkeeper, paying the monthly costs to use online accounting software like Xero, QuickBooks or Sage can be costly. Here are some tips on how to save money if you are in a “save mode”.
About ten years ago, most of the accounting software was fully installed on the laptop with a one-off cost or a small fee per year. A demand for flexibility to work on the go, instant access and automation has changed this to cloud accounting. The top software packages like QuickBooks and Sage, initially desktop only, are not competing online with Xero, Iris, FreshBooks, and others. Subscriptions can range anywhere from £15 per month.
Offers and trial option
The first tip is to look for the best offers, those are always on the table. I would recommend signing up for the initial trial option. Just before the end of the trial, the majority of companies do offer a much better sign-up deal, sometimes even better than what is visible on their pricing website.
For example, if you check the Xero website right now, you can find offers from £3.75 per month instead of £15!
Extra features
Before signing up, write down the list of what you want to software to do. Every business has its own needs so just signing up for the most premium option could mean paying for extras. If you are not trading with various currencies, perhaps the standard option would fit just fine. Why pay more than you need?
The starter package allows only 20 sales invoices and quotes, plus 5 purchase bills, this could be potentially enough for a micro business / sole trader, but on average, you do need more.
Accountant subscription discount
Xero and QuickBooks offer a discounted subscription to all registered with them accountants. It is worth asking your accounting firm about this. The downside is that your subscription will be taken over under the accountant’s client profile and should be paid from them as well. Usually, the accountant will then pass the software costs with their bills.