Review #3: Freshbooks

Freshbooks was not intended to be an accounting system. Freshbooks still claims to not be an “accounting package” although it allows you to produce a profit and loss statement for your business by entering non-billable expenses as well as billable expenses into the system (in other words, you can track all your expenses, not just those you want to flow through an invoice).┬áIf every sale you make is invoiced through Freshbooks, then you already have your complete income into the system and bingo, a complete profit and loss to help you prepare your Schedule C.

Goal: Invoicing, billable time and expense tracking, team time tracking and management and multiple currency support.

Pros:

  • Intuitive, user-friendly interface
  • Many integrations with other applications such as Outright
  • Non-billable expenses can be entered to make a profit and loss suitable to compile a cash basis Schedule C, but this is clearly not a focus of the application, just something you could do with it
  • Expense transactions can be imported from Expensify, Xpenser, Shoeboxed, or Expense Cloud (recommended to import billable expenses only)
  • The invoices produced are very professional and uniform even on the free account
  • Creation of estimates to help you plan the project
  • Able to accept payments online

Cons:

  • Really encourages only billable expenses reported on invoices for input – the profit and loss report, should really be renamed the gross profit report
  • Itemizing and billing expenses in this way may make you look petty (nickel and dime the client to death), but if you are involved in litigation or governmental contracting, this detail could be great
  • No cash reconciliation, must be performed outside the system
  • No way to record expenses in a way that doesn’t impact the profit/loss statement (for capital expenditures or personal draws)

Freshbooks doesn’t really want to be your sole accounting system and has no intention of addressing any of the basic accounting system functionality it lacks. However, if the choice is between this and a box of receipts, I’d much rather see this and it also helps you get paid. Excel might enable you to produce a similar profit and loss, but it won’t email invoices to your clients with a PayPal PayNow button.


Enhanced by Zemanta

Review #2: B2Bee

B2Bee is a simple bookkeeping solution aimed at helping professionals with a low transaction volume prepare invoices and track their income and expenses. Both income and expenses can be tracked by client and by project, enabling you to quickly create a nicely detailed invoice for your clients.

Goal: Invoicing, income, and expense tracking for professionals with low transaction volume.

Pros:

  • Clean, intuitive interface
  • US market focus – the developers are creating this tool with the professional filing a Schedule C in mind
  • Competitive pricing – free forever if you only track 3 clients, $14/month for the full version
  • Support for a good cause (saving honey bees – sweet deal!)
  • Invoices can be emailed – your client will receive a link to view the invoice securely on the B2Bee website
  • Project tracking for invoice detail
  • Team management options for projects
  • Simple, but preferable report options with a profit and loss schedule as well as an export of transaction detail for the accountant

Cons:

  • No transaction importing – each must be entered manually (thus the focus on low transaction volume)
  • No predefined categories (accounts) in the drop down for expenses
  • No integrated time tracking
  • Currently no integrations with other applications
  • No provision for payment with the invoice (such as a PayPal, PayNow button)
  • No place to record capital expenditures, transfers, capital contributions/draws, etc., as to not effect the profit and loss statement
  • No bank reconciliation integrated in the system

B2Bee is another application that is definitely a step up from Excel spreadsheets and green ledgers, but lacks much in the way of advanced features. Sticking to my model of keeping your bookkeeping as simple as possible, B2Bee may very well provide sufficient information for your management needs and your accountant’s reporting needs without a lot of complex clutter to make messing up your books easier.

I would really like to see the expense category list populated with the basic Schedule C expenses as B2Bee’s focus is on the Schedule C filer and this would help transition the books to the Schedule C at the end of the year without as much rearranging.

The nice thing here for a business with low transaction volume is that you get two major functions under one roof: invoicing and accounting. Especially if you bill your projects at a fixed rate and don’t need to track your time, B2Bee may have all the functionality you need without a lot of winding paths to lead you astray.

Enhanced by Zemanta