The management of finances in any company or institute is among the most critical elements that determine at what rate growth and development will be observed or experienced. In any line of duty, all financial stakeholders within the company must be in a position to communicate and allocate all required reports to maintain authenticity in job delivery and openness. It is very crucial for the enterprise to ensure that clarity and honesty in the flow of finances are maintained. As a result, to fulfill the need of proper financial management, most companies have embraced the technology and use of Accounting Information Systems (AIS) that have eased all operations required by the firm. As defined by most financial experts, Accounting Information Systems is an elaborate structure used by companies and businesses to collect, manage, process, store, access, and report all the relevant financial information and data purposely for use by all the involved financial stakeholders. Some of the key financial stakeholders include accountants, auditors, business analysts, consultants, managers, tax agencies and financial officers among others.
It is evident that different companies have specific needs hence will determine particular Accounting Information Softwares that suits and meets their needs as expected. For instance, as reckoned by Simkin, Norman, and Rose (2014), some companies’ financial processing may be in need of growth regarding complexity and volume. Hence, such companies have to make use of AIS software packages that are on a large scale or mid-range. As a result of such needs, there are various vendors in the market that have innovatively ensured that specified financial management needs are met through the use of their created AIS software. Depending on a company’s niche or the industry with which it is associated to, the advancement in technology has enhanced the availability of AIS software vendors that are highly competitive. Some of the software systems available as listed by Finances-Online (2017) include FreshBooks, Xero, Tipalti, Zoho Books, Scoro, AvaTax and NetSuite ERP among many others. From the list, we shall take a look at FreshBooks in comparison to Zoho Books.
Delegate your assignment to our experts and they will do the rest.
Awarded as the best Accounting Software of 2016, FreshBooks is cloud-based software that targets small and medium business owners who are mostly involved in the development of client invoices and time tracking. Besides small business owners, FreshBooks is used by freelancers who desire to track their sales and brand their financial documents primarily for professionalism. Compared to FreshBooks, Zoho Books is mostly online based accounting system software that is focused on handling the finances of institutes and aids in monitoring the cash flow to maintain growth. Just like FreshBooks, it is mostly used by small business owners and some medium businesses. While FreshBooks was awarded the best accounting software in 2016, Zoho Books, on the other hand, was awarded the 2016 Useful Free Trial and Great User Experience awards.
While Finances Online rated FreshBooks at 9.8 and 9.6 scores for Zoho Books, the user satisfaction was 99% and 100% respectively. Both software offer free trials that enable the users to ensure that their services are exactly what they need before purchasing. Moreover, both software is supported by more than three platforms that include iPhone App, Android App, and Web-based. On the contrary, Zoho Books is also backed by Windows Phone App that is not supported by FreshBooks. As mentioned earlier, both software’ customers include freelancers, small and medium business. On top of the typical customers served by either vendor, Zoho Books also cater for the needs of enterprises which is not the case with FreshBooks. Customer support is a very critical aspect that is required to ensure that their needs, complaints, and feedback are put into consideration purposely for upgrading and improvement of the software. Some of the significant support platforms that both software vendors make use of include phone support, online support, knowledge base and video tutorials.
Despite the efficiency and reliability of a product which involves the software like Accounting Information Systems, the price is an element that consumers put into consideration before purchase to either meet their value for money or work within a specified budget. As for the pricing of the two software, FreshBooks’s minimum price is $15 per month depending on the choice of package chosen by the customer. On the other hand, the price of Zoho Books starts from $9 per month also depends on the package required by the client. In both software, the most reviews made by customers are based on overall ratings, ease of use, value for money, customer support and the time for reconsideration. As recorded in the GetApp (2017), both software in all the mentioned reviews have 4.5ratings. Contrary to this information, FreshBooks is observed to have been considered less than a week ago while Zoho Books was last reviewed one month ago.
In reference to Simkin, Norman & Rose (2014), as observed earlier, the choice of an Accounting Information System’s software relies on the niche and focus of services offered. Therefore, FreshBooks is suitable for firms that are based in industries that deal with services like marketing & advertising, Information Technology & Services, Internet and Computer Software among others. As for the case of Zoho Books, businesses that are involved in Accounting, Internet, Information Technology & Services, Health, Wellness, and Fitness are among those that find the software suitable for their accounting and financial needs. The percentage at which this software is used depending on the sizes of the company also varies. For example, FreeBooks is used by 58% of enterprises that have 1 – 10 personnel while Zoho Books is used by 56% of companies that are of the same size. Both software is used by 22% of businesses that hold up to 50 staff members. Medium-sized companies prefer Zoho books from FreeBooks since the percentage variation is 22% against 7% respectively. The reason for the difference could be as a result of pricing. Statistics that were collected and analyzed by GetApp (2017) indicate that this software is used in various countries globally, and the percentages also differ. Some of the major countries making use of this software include the United States, Canada, and Australia, India, Switzerland and the United Arab Emirates among other nations. FreeBooks is mostly employed in Canada, Australia, and the United States while Zoho is used by India, Switzerland, the United States and United Arab Emirates countries. The difference in the percentage of the software usage in the United States is 56% for FreeBooks and 44% Zoho Books.
Besides the mentioned comparisons and contrasts between FreeBooks and Zoho Books, it is the features that add to their uniqueness. They share some features yet either software would lack what the other software has. For example, both software have API, Automatic Reminders and the Billable Hours features, yet FreshBooks lacks ACH Payment Processing that Zoho Books has. On the contrary, it possesses Automated Expense Input which Zoho Books lacks.
Conclusion
The growth and expansion of business enterprises highly rely on the management and recording of financial reports. Hence the use of reliable and innovative software systems like Accounting Information Systems. The core responsibilities of this software include accessing, processing, recording and analyzing financial information and data for use by all involved stakeholders. Besides auditors, tax registrars and accountant, the managers are also in a position to make use of the financial reports primarily to monitor the changes taking place in the company and its finances.
References
Finances Online. (2017, October 2). Accounting & Finance Software . Retrieved October 3, 2017, from Accounting Software . Finance Online: https://accounting-software.financesonline.com/
GetApp. (2017). FreshBooks vs Zoho Books Comparison Chart . Retrieved October 3, 2017, from GetApp Finance Accounting Software: https://www.getapp.com/finance-accounting-software/a/freshbooks/compare/zoho-books/
Simkin, M., Norman, C., & Rose, J. (2014). Core Concepts of Accounting Information Systems. John Wiley & Sons.
