Keeping your business organized can be one of the biggest challenges but knowing all of your numbers and seeing your cash flow is important. This is why you need to get yourself in to good practices from the beginning. I highly recommend starting out with Quickbooks (https://quickbooks.intuit.com/) or xero (https://www.xero.com/) very early on in your business. The longer you wait to begin accounting, the harder the problem becomes.
I use quickbooks in my business and personal finances simply because I have a grasp on it from my computer repair days. I’d say 95% of small businesses I worked for used quickbooks. The software has changed a lot in that time. It used to be bloated software that had to run on each PC and networking them to work off a single company file could be a headache. With that, you have to worry about computers crashing so maintaining multiple backups was critical. Long gone are those days. Quickbooks now operates “in the cloud” and is easily accessible via any browser along with apps on mobile devices. You can also integrate most banks and credit cards to give you a full 360 view of your finances. This all makes keeping track of transactions in or out a breeze and you can attach receipts or invoices to the transaction as well.
Getting into these practices will save you a HUGE headache when it comes to tax time! You won’t have to stress about gathering records or being sure you’ve maximized your deductions. Your daily input to quickbooks ensures that has been done properly. You will have all the reports your accountant could ask for, such as: profit and loss, sales and revenue, inventory and expenses.
In conclusion, choose whichever software meets your personal or business needs. But do yourself the favor and save yourself the stress by maintaining records properly, you’ll be much happier and so will your accountant!