Review #4: LessAccounting

If you have a Schedule C business (sole proprietor), LessAccounting wants to be your one stop bookkeeping shop. The key for LessAccounting is being an integrated solution rather than having to stop by one program for invoicing, another for bookkeeping, and yet another for contact management.

Goal: Simplify bookkeeping for micro-businesses (less than 20 employees and less than $10M in revenue as defined by LessAccounting).

Pros:

  • Banking integration – minimize your data entry by categorizing imported transactions
  • Send and track invoices – know who owes you money
  • Bank reconciliations available
  • Track expenses by project, income type, and category
  • Create proposals
  • Track your business mileage
  • Default categories are similar to Schedule C
  • PayPal Pay Now option on invoices
  • Integrations with other applications
  • Can opt to have them do your bookkeeping
  • Integrated one stop solution with invoicing, bookkeeping & contact management combined
  • Multiple user access

Cons:

  • Contact management isn’t really going to replace any serious CRM solution
  • The automatic banking integration can be buggy at times
  • Integration does not include time tracking – still need another app for that (or not track time)
  • Pricing for most desirable features makes the product more expensive on an annual basis than QuickBooks
  • No balance sheet, although cash balances and accounts receivable are tracked
  • Detailed invoicing may be less robust than other dedicated invoicing or billing applications
  • The only payment option you can include on an invoice is Paypal
  • No payroll integrations noted

I think LessAccounting is a nicely done, well rounded program for those that it has the horsepower to support. If you’re a sole proprietor filing a Schedule C, I think it makes a lot of sense to consider this program, if you’re willing to jump up to the $24/month plan to get the most out of its positive features.

If you have more robust needs, or can’t justify the price point compared to your desktop applications like QuickBooks or Peachtree, then LessAccounting may be too little accounting for you.

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Comments

  1. Hi!

    Thanks for the review!

    A couple things.

    1) We do have time tracking, LessTimeSpent.com is free with LessAccounting.com + they integrate. We’ll be merging the two apps at some point this year.

    2) For payroll we recommend SurePayroll.com

    3) Invoice payments: you can embed a link to Wufoo.com which integrates with Authorize.net

    4) We’re waaaaaaaaaaaaayyyyyyyyyy cheaper than Quickbooks, how many times have you called Intuit Tech Support? What is your time worth? Have you known anyone to get frustrated with Quickbooks? What is less stress worth? Have you known anyone to hire a QB consultant? The cheapest solution for bookkeeping would be a paper notepad, but at some point, having less stress and more time becomes very valuable.

  2. Thanks for your comment Allan. It was unclear when I was doing my research how LessTimeSpent integrated with LessAccounting and what the fee arrangements were there, so thanks for clarifying that.

    SurePayroll seems to be a solid provider from the integrations I’ve seen in other software systems, but is still not an integrated solution. You can use ADP and get the information you need to make the proper journal entry into your accounting system. That’s my point.

    Can you embed a link to any payment gateway such as Dwolla if you want to?

    I could take your price argument for LessAccounting and extend that to say that hiring professional bookkeeping is the best use of your money to eliminate your time spent. When things are really small or just getting started, people tend to have more time than they have money, and that’s my point.

    Especially when someone uses the same desktop version of QuickBooks for 3-5 years (yes, QuickBooks desktop program will work perfectly fine for this long if you don’t use the integrated payroll and need those updates – although I’m sure Intuit would have you think otherwise), once they get comfortable with the program, the cost, cash out of pocket, is quite a bit less.

  3. Integrated LA into our construction management web app – best decision we ever made. Killer software, great integration, fantastic support team. Best accounting package on the web – hands down, And believe me – we looked. A LOT.

    Kelly
    Pi Software

  4. Shane,

    Thanks for the fantastic review (as always) and taking the time to play with the system and take one for the team. We are all in search of the SaaS solution that will work better than what we have to work with today (cough* QB cough*) and really out perform the desktop application – we just haven’t found one yet. I guess we, the professionals, will just have to look hard and try them all out – we’ll get there. And, good point on the need of hiring a professional to do your accounting – cannot say it better myself – no matter how fantastic a software is – I think it will be hard for it to replace a person who knows what they are doing (despite what any software developer will tell you.)

    Cheers my friend – and thanks again.

  5. One of the great attractions of Less Accounting is it’s integration with other apps. By integrating with our http://www.getting-paid-system.com you can save hours or onerous bill collecting. now thats a good enough reason for any small business owner.