Best Cloud Accounting Software for Medium Sized Business

Managing the finances of a growing medium sized business brings complex challenges. As transactions multiply and operations expand globally, the right accounting software becomes critical. Cloud platforms streamline processes with automation while providing real time visibility through dynamic reporting and analytics. This article compares the top accounting software options to help medium businesses determine the ideal solution to meet their needs.

Key Benefits of Cloud Accounting Software

Before analyzing the leading platforms, let’s review some major benefits cloud accounting solutions offer over desktop software:

• Accessibility – Cloud platforms can be accessed anytime, anywhere via web browser or mobile apps. This enables remote working with universal visibility.
• Collaboration – With shared access teams can collaborate across locations and accounting can sync data with other departments.
• Scalability – Cloud systems scale up seamlessly as transactions, users and locations grow.
• Automation – Tedious accounting tasks like reconciliations can be automated saving huge time.
• Insights – Real time reporting provides data-driven insights to guide financial decisions.
• Integrations – Many cloud accounting systems integrate directly with sales, banking, ecommerce and payment apps.

For medium companies managing complex finances, leveraging these advantages through cloud technology is a competitive necessity.

Best Cloud Accounting Software for Medium Sized Business

1. Xero

With over 3 million subscribers, Xero is the most popular accounting solution for SMBs. The platform is praised for its user friendly interface and comprehensive features.

Xero Features and Capabilities

Xero packs an array of accounting tools including:

• General Ledger – Track income, expenses, accounts payable and receivable all in real time. Seamlessly reconcile imported bank transactions with advanced automation.
• Invoicing – Create professional customizable invoices and automatically reconcile payments upon receipt with online invoice tracking.
• Expense Claims – Submit and track employee expense claims through creation to reimbursement.
• Financial Reporting – Dive into 110+ customizable reports on profits, cashflow, accounts payable, budget vs actuals and more. Subscribe to receive automated reports to all stakeholders.
• Payroll – The integrated payroll feature handles payments, taxes, deductions and filings seamlessly. Available in 10 countries with plans to expand globally.
• Inventory – Manage stock levels efficiently across multiple locations while tracking inventory value. Integrates directly with popular ecommerce platforms.
• Additional Integrations – Xero connects directly with hundreds of platforms through Xero HQ including payment processors, PoS systems, CRMs, ecommerce stores and TSheets for time tracking.

With robust accounting capabilities for medium sized operations, Xero makes it simple to gain insights while collaborating across teams and external partners.

Xero Pros and Cons

2. Sage 50Cloud Accounting

Sage 50Cloud (formerly Sage 50c) provides customizable cloud accounting capabilities for larger growing businesses. The solution offers advanced financial insights through interactive dashboards.

Sage 50Cloud Features and Capabilities

Robust features provided by Sage 50Cloud include:

• General Ledger – Seamlessly manage ledgers across departments and locations. Sage 50Cloud Accounting makes it easy by automating complex reconciliations.
• Budgeting – Set budgets across different periods and compare against actuals with dynamic reports and graphs. Identify budget overruns immediately to take corrective action.
• Cash Flow – Understand cash flow patterns through reports. Smooth fluctuations by accurately scheduling payments to suppliers and from clients.
• Fixed Assets – Manage depreciations of assets while recording maintenance expenses. Keep track of asset locations together with user and cost center assignments.
• Invoicing – Design professional invoices with custom branding. Automatically track payments and sync outstanding invoices directly with receivables.
• Expense Allocations – Assign and track shared costs across departments using custom allocation rules.
• Mobile App – Manage income, expenses, view reports and photograph receipts for expenses on the go.

With drill-down insights, currency support and Purchase Order integration Sage 50Cloud delivers robust accounting tools for medium enterprises at an affordable price.

Sage 50Cloud Pros and Cons

3. Zoho Books

Zoho Books makes accounting incredibly simple for SMBs with intuitive processes and automation. The solution seamlessly scales from basic invoicing to advanced multi-currency capabilities as companies grow.

Zoho Books Features and Capabilities

Zoho Books reduces accounting complexity through:

• Invoicing – Create, customize and send invoices integrated with income tax. Set up recurring invoices automatically.
• Banking & Payments – Securely synchronize business bank accounts to automatically import transactions. Accept one-time and recurring payments online.
• Expenses – Submit expense claims and track reimbursements with attached receipts. Prevent duplicate claims.
• Time Tracking – Record employee and contractor hours with timestamps for payroll and billing.
• Inventory – Manage both simple or complex inventory for manufacturers including different costing methods.
• Financial Reporting – Dive into pre-built reports like profit and loss, balance sheet, accounts receivable aging and more. Subscribe to scheduled reports.
• Integration – Zoho Books connects directly with Zoho CRM along with countless other business apps.

Zoho Books simplifies accounting by removing extraneous features, driving efficiency through automation and ensuring flexibility.

Zoho Books Pros and Cons

4. QuickBooks Online

QuickBooks Online provides a powerful, user-friendly accounting solution designed for small and midsized businesses.

Zoho Books Features In Depth

• Time Tracking – Log hours with descriptions, create and assign tasks to projects, set up hourly rates per employee and integrate with payroll.
• Bank Transactions – Automatically feed, code and reconcile bank transactions. Supports splitting transactions across accounts.
• Inventory – Manage stock levels across locations. Make inventory adjustments, record item details, set reorder points and process orders across channels.
• Purchase Orders – Create customized POs and generate PDFs to send to vendors. Automatically convert POs into bills when shipments arrive.
• Reporting – Get pre-built reports and dashboards for accounts payable, accounts receivable aging, general ledger, budgets vs actuals, profit and loss statements, and more.
• Payroll – Automates salary payments. Track leaves and generates payslips accurately incorporating deductions and taxes across locations.

It syncs with many ecommerce platforms.

QuickBooks Online Pros and Cons

5. Oracle NetSuite

Oracle NetSuite offers a powerful enterprise resource planning (ERP) solution designed for larger, more complex businesses.

• Financials – Automate revenue recognition, global consolidations, expense allocations and multi-book accounting with unified financial reporting.
• Supply Chain – Integrates inventory, warehouses, fulfillment, vendors and dropship partners with complete visibility across global supply chain.
• Manufacturing – Streamlines production planning, scheduling, costing and work order execution with quality control workflows.
• Omnichannel Commerce – Unify in-store PoS, ecommerce, call centers and digital storefronts on a single cloud platform with end to end automation.
• Global ERP – Manages multi-subsidiary finance, localization compliance, global payroll and multi-language CRM on a single platform.

It brings together accounting, CRM and ecommerce functionalities across the organization.

NetSuite Pros and Cons

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6. FreshBooks

FreshBooks accounting software is designed for solopreneurs, startups and small business.

• Client Database – Centralized client database with quick access to associated projects, contacts, discussions and files.
• Team Management – Manage users with customized roles and permissions. Track billable hours and assign tasks by roles.
• Invoicing – Create customized, professional invoices. Set up recurring invoices, accept online payments, and enable auto bill pay.
• Project Management – Use Kanban boards to organize projects in progress with client task lists, due dates, timers and status updates.
• Reporting – Get snapshot reports on income, expenses, account balances, invoice aging, top clients and payroll summaries.

It seamlessly integrates with many everyday business applications.

How to Select the Best Cloud Accounting Platform

With so many options to choose from, here is a step-by-step process to select the ideal cloud accounting software:

1. Define Objectives – Outline must-have capabilities, business growth targets, targeted insights, required integrations and essential data security precautions upfront.
2. Analyze Buy vs Build – Weigh the pros and cons of purchasing an integrated platform vs building on top of core accounting software.
3. Outline Workflows – Map accounting workflows across payables & receivables, reporting needs, payroll and more to identify capability gaps across shortlisted solutions.
4. Evaluate Ease of Use – Assess platform and mobile interfaces through free trials focusing on simplicity, automation and ability to customize. Measure potential training costs.
5. Assess Scalability – Review capabilities to support additional locations, transaction volumes, data integration needs and users as your operations grow over the next 5 years.
6. Compare Implementation & Support – Vet the provider’s implementation process, migration tools, training resources and ongoing support model through discussions with company representatives and checking online reviews.
7. Perform Total Cost Analysis – List all direct and indirect costs over a multi-year period including licensing, payroll, migrations, training, customizations and more.

Choosing technology that streamlines complexity today while offering flexible scalability for tomorrow will cement strategic advantages for fast growing mid-market companies over the long term.

Conclusion

With the right cloud accounting software in place, finance teams can focus on providing business insights rather than juggling tedious transactions. Solutions like Xero and Zoho Books simplify core accounting processes through automation while enabling access from anywhere, on any device. Both platforms offer easy scalability as transaction volumes grow while maintaining competitive pricing. For larger or more complex operations, Sage 50Cloud brings customizable features and advanced reporting. By accurately assessing organizational needs, medium enterprises can determine the best long term solution to drive efficiency, growth and profitability.