Balance Sheet Software helps to enhance the accounting and financial statement works. There are different types of balance sheet software. The top balance sheet software solutions work according to the balance sheet principles. They help to improve operations using automation and data analytics. However, users need to know the right features before purchasing one for their business. The top 10 solutions listed here offer features that will expedite financial processes.
Balance Sheet Software
A balance sheet software is any tool that digitally operates a balance sheet. It is a financial statement showing assets, liabilities, and shareholders’ equity at a given point of time.
Types of Balance Sheet Software
A balance sheet software expedites the process of managing the sheet’s data. Companies select the type of software depending on their needs and budget.
Cloud-Based Solutions
This type of software allows you to work online without having to set it up on your system. Hardware configuration issues are not there, and you can access the tool from anywhere you want.
These types of balance sheet solutions are also called SaaS (Service – as – a – Solution). Users can purchase them through monthly or annual subscription models. Enterprises get the offers to avail customized, more advanced plans.
Also, because these are updated and maintained online by the service providers, multiple users can access the solution all at once.
Desktop-Based Solutions
These solutions are installed in the company’s own servers and/or desktops. System administrators and IT personnel are required to maintain these solutions.
The users have direct ownership of the solutions. So, data breach or privacy issues online are reduced. However, because these are offline, automatic updates to the solutions are not there. Plus, if an adjustment has to be made to a report or input of the software, you can’t do it remotely.
Customizable and Industry-Specific Solutions
If you prefer a balance sheet software tailored for your industry or business, then you need a customized solution. These tools offer features and functions pertaining to a specific industry or firm. For instance, accounting software for hospital administration would fall into this category.
The main disadvantage of this type of solution is the setup. Which can be quite complex and may not always be upgradable due to the specific use. Usually, these cost more than other categories of balance sheet software.
Top 10 Balance Sheet Software
| SL | Name | Pricing | Customer Support |
|---|---|---|---|
| 1 | Financfy | SIMPLE PLAN - 1800/month Basic features for 01 User MINI PLAN - 4500/month Growing teams with 05 users. MID PLAN - 6300 /month Growing teams with 10 users. | Email Support, Phone Support, 24/7 Live Chat |
| 2 | QuickBooks Online | Simple Start - BDT 1,153. 84/mo Essentials - BDT 1,700/mo Plus - BDT 2,429/mo Advanced - BDT 4615/mo | 6 days a week, from Monday to Saturday, phone, chat, and email support |
| 3 | Xero | Starter - $29/month Standard - $46/month Premium - $69/month | Xero provides free and unlimited online support, 24 hours a day, seven days a week, as part of your Xero subscription. |
| 4 | Zoho Books | FREE STANDARD - $10/month Professional - $20/month Premium - $30/month ELite - $100/month Ultimate - $200/month | Available 24/5 (Monday - Friday) via call, email, and socials. |
| 5 | FreshBooks | Lite - $7.60/month Plus - $13.20/month Premium - $24/month Select - Contact Sales | Phone support with live agents from 9am to 5pm EST, Monday through Friday. Email and FAQ support also. |
| 6 | Sage Business Cloud Accounting | Pro Accounting - $61.92 /mo for 1 user Premium Accounting - $103.92 /mo for 1 user Quantum Accounting - $177.17 /mo for 1 user | Multiple customer support for different types of business via call, email, and socials. They have knowledge bases to help with queries as well. |
| 7 | Wave Accounting | Starter - $0 Pro - $16/month | The Help Center and automated support chatbot Mave are available 24/7 to all Wave customers. |
| 8 | NetSuite ERP | Contact Sales | Available Monday to Friday from 5 am to 5 pm EST. Live chat is also available. |
| 9 | Kashoo | $324/year | 24/7 support via call, email, and chat. |
| 10 | AccountEdge Pro | AccountEdge Pro - $20/Month for single user AccountEdge Network Edition - $30/Month For 2 users AccountEdge Hosted - $50/Month (single or multiple, web-based) | Available to customers on an active telephone support plan. (9am – 5pm ET, Mon – Fri). They also have knowledge bases and a YouTube channel for queries and explanations. |
1. Financfy
Financfy is one of the top cloud-based accounting and balance sheet software that manages business income and expenses. It makes life easy for entrepreneurs and startups, who can automate business workflows and save time. You can easily monitor and manage your cash flows. Also, it lets you integrate easily with banks, creating real-time insights.
Key Features
- Automated balance sheet generation
- Smooth integration with accounting and ERP systems
- Customizable, advanced reports
- Real-time updates
- Cash Management
- Expenses Management
- Invoice Management
- Mobile app
Pros
- Easy to use
- Ideal for small and medium businesses
- Excellent reporting and financial analysis tools
- Smooth cash management
- Swift expense tracking
- Easy integration with banks
Cons
- The starting pack only allows one user
2. QuickBooks Online
Quickbooks Online by Intuit is considered the benchmark small-medium business accounting software by many. It is one of the most commonly used accounting and balance sheet software out there. It offers 4 subscriptions with multiple features.
Features:
- Customizable balance sheets
- Trial balance sheet template
- Automated financial reports
- integration with other financial tools
Pros:
- Customizable balance sheets
- Trial balance sheet template
- Automated financial reports
- integration with other financial tools
Cons:
- Possible discrepancies in liability and equity calculations
- Higher pricing for advanced features.
3. Xero
Xero is an online, cloud-based accounting software with a balance sheet feature integrated. It has countless integrations and unlimited users on all plans. Its balance sheet has all the 3 main features: assets, liabilities, and owner’s equity.
Features:
- User-friendly interface
- Multi Currency reporting
- Automatic balance sheet generation
- Integration with other apps.
Pros:
- Strong mobile app interface
- Powerful accounting features
Cons:
- No live customer support
- Back-dated interface
4. Zoho Books
This is a feature-rich online tool that offers a free plan to small businesses. Besides offering a wide range of accounting features, it integrates with other tools in the Zoho ecosystem to give you a full business suite. You can also compare trends across different periods or divisions in the business’s balance sheet reports instantly.
Features:
- Tax compliance across regions
- Over 70 financial report types, including various balance sheets
- Integration with other Zoho ecosystem apps
Pros:
- Affordable pricing with a free plan for small businesses
- Advanced analytics
Cons:
- Limited customization options in reports
- Limited to a maximum of 15 users
5. FreshBooks
Originally launched as an invoicing tool, FreshBooks now offers a balance sheet solution as well. It is a SaaS tool primarily suited for service-based small and medium-sized businesses (SMBs).
Features:
- Ready-made reports
- Automated Bank Reconciliation
- Time Tracking for Transactions
Pros:
- Easily export reports to Excel
- Timely and good customer support
- Mobile app with notifications
Cons:
- Limited features for larger businesses
- Limited number of clients and users
- Accountants can’t easily access reports
6. Sage Business Cloud Accounting
Sage is a renowned name in accounting software. This tool by Sage offers basic balance sheet reporting and other financial reporting easily. It is best suited for those who want a simple bookkeeping system.
Features:
- Cash Flow forecasting
- Bank Feeds
- Dashboard with key metrics
Pros:
- Powerful reporting tools
- Ease of use
Cons:
- Some complicated features
- Slow load speed
7. Wave Accounting
Wave’s balance sheet solution targets micro-businesses and freelancers. It has a free plan that growing small businesses can utilize. Microbusinesses can maintain a balance sheet without facing any extra costs.
Features:
- Unlimited bank and credit card connections in the Pro plan
- Exportable accounting reports and financial statements
- Auto-categorizes transactions
Pros:
- Free plan for freelancers
- Affordability with higher plans
- Unlimited customizable templates
Cons:
- No live support
- No audit trails
- No third-party integrations
8. NetSuite ERP
NetSuite ERP by Oracle is used by over 41,000 customers worldwide. It is an all-in-one business management tool with integrated balance sheet management. Highly customizable and scalable, it is primarily suited for large organizations.
Features:
- Comprehensive financial management tools
- Business intelligence automation
- Account reconciliation
- Global accounting and consolidation
Pros:
- Excellent for large businesses
- Highly scalable
Cons:
- Expensive
- Complex installation
9. Kashoo
Kashoo was created to make accounting easy for freelancers and sole proprietors. It offers basic balance sheet functions with user-friendly features. You can also connect to 5,000+ banks and credit unions in real time through this tool.
Features:
- Simple balance sheet generation
- Invoice management
- Integration with bank accounts
Pros:
- Simple interface
- Easy setup
- Numerous help options
Cons:
- Limited reporting features
- No Android-friendly app
10. AccountEdge Pro
AccountEdge Pro is a desktop accounting software designed for small to medium-sized businesses. Its double-entry accounting system can work offline as well. It integrates well with other office tools, making it feel like a scaled-down version of an ERP system.
Features:
- General ledger and budgets
- Chart of Accounts
- Budget Tracking
Pros:
- Desktop and mobile versions available
Cons:
- No cloud version available
- pricey for single users
Balance sheet Example
The balance sheet shows an imaginary company’s total assets at the start of 2024. It reflects the fundamental equation Total Assets = Total Liabilities + Owner’s Equity, where both sides must match. In this case, total assets equal 26,222, and the sum of total liabilities and owner’s equity is the same.
Assets are categorized into current assets like cash, inventories, and accounts receivable. And fixed assets such as property and long-term investments. Liabilities are split into current liabilities and long-term liabilities. Under owner’s equity, the primary components are the owner’s investment and retained earnings.
There are some financial ratios shown as well. These depict the metrics against which decisions will be made.
Benefits of Using Balance Sheet Software
Automated balance sheets save time and minimize human errors. These tools help maintain regulations and improve financial decision-making.
- Accuracy and Precision: Balance sheet software automates data collection and calculation. This reduces the chances of human-error.
- Time-Saving: The solutions automatically import transaction data by integrating with bank feeds and other systems, saving lots of time.
- Improved Financial Decision Making: With data-backed and timely reports, managers can make better, informed decisions.
- Compliance and Regulation: Balance sheet software has features that meet legal requirements. Digitized record-keeping, audit trails, and standardized templates help businesses comply with the regulations.
- Cost Efficiency: You can reduce labor costs through automation and reduce the costs of human errors. Plus, you can minimize costs related to manual workflows.
How Balance Sheet Software Works
Most balance sheet solutions follow a similar pattern when operating. There are four main areas where these tools operate and integrate to give the users the most accurate results.
Integration with Accounting Systems
Most software companies offer APIs or connections that are already built. This allows data to flow from different systems into the balance sheet software. These computerized transactions help to maintain a real-time refresh of your balance sheet when invoices are generated or bills are paid.
Data Input and Processing
In a general ledger module, balance sheet software generally keeps track of transactional data like sales, purchases, payments, and payroll entries. Many systems use automation and machine learning to classify transactions, identify trends, and cut hand-off labor.
Many times, software offers a reconciliation feature that lets internal transaction records match bank or credit card bills. The data is seen as more dependable if harmonized.
Generating Balance Sheets
After the transactions are processed, the software makes balance sheets and other financial reports, such as cash flow reports and profit and loss statements. To get the amount of information they need, users can change the layout, group accounts, and use filters (by department or project).
Usually, changes in transactions are updated in real time. This lets decision-makers see assets, liabilities, and equity right away.
Financial Analysis Features
Many balance sheet tools calculate standard financial ratios (such as the current and debt-to-equity ratios) to help you assess liquidity and solvency. Forecasting modules in advanced systems allow one to project future assets, liabilities, and cash flow using past trends.
When someone clicks on a line item in the balance sheet, they can usually see the deals that go along with it. This makes it easier to find mistakes or inefficiencies.Dashboards and charts abound in some programs to show the financial situation. This can especially help to see trends and possible early problems.
Features to Look for in Balance Sheet Software
Your balance sheet solution should be easy to use and secure. It must be scalable and flexible enough to meet your growing business needs.
Ease of Use
Businesses would want to have a solution that is easy to use and does not complicate learning for new users. A solution with a user-friendly dashboard and easy-to-understand features helps in making the workflows smooth.
Security Features
You would definitely want a solution that provides watertight security. Data privacy is a pressing issue, and you would need strong security measures against unauthorized access and cyber threats. Multi-factor authentications and data encryptions may help in a big way.
Integration Capabilities
An advanced and effective balance sheet tool integrates easily with bank accounts, CRM, ERP systems, and other relevant platforms. This helps make data entry fast and smooth, as well as syncs data across various platforms.
Real-Time Reporting and Updates
The solution you want to purchase should offer real-time reporting and updates. Otherwise, you may fall behind in gathering data and insights. The solution should also update in a timely and smooth manner so that you have all the security patches and updated functionalities at your disposal.
Mobile Accessibility
Without mobile accessibility, you cannot run tools smoothly nowadays. That is why your balance sheet solution should be accessible from anywhere, through any device.
How to Choose the Right Balance Sheet Software for Your Business
You need to assess your business needs while choosing a software solution to manage balance sheets. The size of the business (number of employees) is a key factor in deciding what kind of and how advanced the software needs to be. Larger corporations require more specific, customized software that meets their company’s total needs as per their industry.
Another key factor is your budget. You need to understand and decide whether purchasing a particular balance sheet software is within your budget. Small and medium enterprises are very careful and picky about this factor.
Finally, the solution’s ease of use, features, and customer support strength play an important role in its purchase. No matter how sophisticated or advanced a software is, if the user finds it hard to operate, it may create problems like delays and errors in financial reporting. The features of the software should meet business needs. Along with these, the customer support should be responsive and efficient to resolve issues promptly.
Conclusion
Automated Balance Sheet Software helps businesses expedite their accounting processes and present financial statements with accuracy. Companies can utilize this software to save time, improve financial decision-making, minimize costs, and comply with regulations. However, when purchasing one, users must check the features with their business needs and budget.
The above balance sheet software like Financfy, Quickbooks, Xero, etc., are great options to enhance financial processes. These are excellent tools for SMBs to kickstart their financial management journey.
