Accounting software in the UAE is growing faster than the inflation rate after the pandemic. With robust software like ProfitBooks and Zoho Books taking over the market, UAE businesses are looking for even faster and easier ways to manage their finances.
In this article, we’ll cover what accounting software is, and why they’re needed from a UAE business owner’s perspective.
What is an accounting software?
Accounting software is a type of software that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions.
With recent technological trends, accounting software has become an invaluable resource for modern business. The software allows detailed tracking of financial transactions and near-instantaneous reporting and analysis. Before accounting software, these tasks had to be performed by hand, using large transaction journals.
Ad hoc reporting was generally impractical due to the labor involved in consolidating the manual entries. Accounting software automates these tasks, reducing the costs of accounting and allowing better financial decision-making through timely reporting.
Who should use an accounting software?
It is essential to determine first if it’s meant for you. The following questions may help you decide whether it’s right for your processes:
- If you’re in charge of your finances, are you lacking the technical skills to manage it? Balancing books can be difficult as it’s prone to errors and simple mistakes that are arduous to solve.
- Are you prone to overlooking your business finances? As your business grows, the more there is to track invoices, rent, salaries, and inventories, among others, that it’s possible to overlook some aspects.
- Are you spending a huge chunk of your time chasing invoices a painful process to track cash flows, incoming cash, and late payments which can take up a huge amount of your valuable time?
If you answered yes to most of these questions, then you should use the help of an accounting system.
Benefits of using an accounting software:
- Saves Your Time
Time is the most important thing in business especially when you just started your journey. Using accounting software has simplified the overall system. This simplification saves the time you need to invest in other sectors.
- It helps with taxes
An accounting software allows you to properly compile and export documents and receipts to your accountant with ease. Properly compiled records also make your accountant’sjob easier in taking care of your taxes.
Some software also complies with tax office rules by formatting invoices automatically so you don’tface troubles during tax season.
- Business Reports
You need your invoices, transaction history, details of your stock, etc. which are parts of your total business report.
It can be exhausting to sit down with papers and make the reports. The accounting system gets those reports ready for you on its own.
- It cuts costs
Automating your accounting tasks saves you money in the long run. It eliminates the need for hiring a bookkeeper or allotting extra hours of their shift to handle all books, invoices, and transactions. In business, time is equivalent to money, and optimizing this process greatly reduces bookkeeping hours.
Furthermore, the software has subscription-based pricing models with low costs to pay on a monthly or annual basis. Subscribing to a plan gives you regular updates, support, and tools that enable you to focus on actually running your business.
5.
Accuracy and Speed:
One of the greatest benefits of accounting software is a higher degree of accuracy and speed. It provides real-time data that helps in streamlining business transactions.
What should you look for in an accounting software?
It is important to be careful in choosing which one to implement with the wide array of options available nowadays. There is no one-size-fits-all solution for your own business, but getting to know your needs through business evaluation and being aware of vital factors to consider for the software is essential.
Also, the functionality of accounting software differs from product to product. Larger firms may choose to implement a
customized solution that integrates a vast amount of data from many different departments. Small firms often choose an off-the-shelf product.
Here are some examples of things to keep in mind when choosing an accounting software:
- Features: With the help of an accountant, you should check whether the product’s features match your needs because software solutions are not created equal.
- Overall value: Take into account the software’s overall value based on its set of features and functionalities.
- Scalability: Growth is one of any business goals; hence, factor in scaling to ensure the software will grow with you as your needs become more demanding.
- User-friendly: Take into consideration how long it will take to learn the software. Choosing one that’s user-friendly is essential to immediately implement the system.
- Integrations: Maximizing what you can do in the software is achieved with a robust marketplace of integrations that will enhance the system’ss functionality and core capabilities.
When to consider using free accounting software
If you’re not sure which accounting software to use then there are
free options available, so you don’t have to commit to something you may find difficult to use. Free accounting software will at least get you used to using various features so you have a better idea of what you’re doing, and what you need.
It is such a good idea to have something in place and organized at the start of your business for managing your accounts, and if you have to change later you can usually export the data into whichever program you decide to switch to.
There are hundreds of accounting and business management software offerings available. It can be very confusing for any business owner or manager to choose the ideal package for a particular enterprise. Some packages are marketed as the best for every business sector, si, ze, or type while others are more focused on a specific business sector.
Almost all the available software offerings will handle the basic accounting functions effectively. The real differences among software packages are in the user interfaces, supplementary functions, and included special features. Choosing an accounting software can be a real challenge. Read our article to find out more on
how to choose the right accounting software for your business.
Let’s have a look at the top 10 free accounting software in the UAE:
1. Zoho books:
Zoho Books is online accounting software that manages your finances, automates business workflows, and helps you work collectively across departments. Zoho Books is a completely VAT-compliant accounting application. It is tailor-made to suit all your accounting needs for VAT in the UAE. An online accounting software should save time for you. With that intention in mind, Zoho Books has been designed in such a way that lets you connect with your bank, fetch feeds, and categorize transactions based on rules. Furthermore, you can automate complex business scenarios using custom functions and workflows to save time.
Drawbacks:
- Customer Support and the lack of detail in payments received.
- Zoho doesn’t have an API integration with the system
2. Tally solution
Tally offers a simple and affordable business solution for small and medium businesses in the UAE. With Tally’s accounting prowess, you can accurately plan purchases, manage working capital, al and improve cash flow for your organization. It allows you to keep a check on expenditures, handle exceptions in business processes, es and manage your financials in a better fashion.
Pros: It is fast, uses a double accounting method, and has a friendly user interface.
Drawbacks:
- Low security
- There is no customization
- No central support
3. Profitbooks
ProfitBooks – FREE Accounting Software in UAE
ProfitBooks is the go-to software for many UAE businesses. The advantages are endless. Here’s an overview:
- User-friendly interface: ProfitBooks is known for its simple and user-friendly interface, making it easy for users with limited accounting knowledge to manage their finances effectively.
- Cost-effective: ProfitBooks offers affordable pricing plans, making it an attractive option for small businesses with budget constraints.
- Inventory management: ProfitBooks provides robust inventory management features, allowing businesses to track their stock levels, manage purchases, and handle sales efficiently.
- Customizable invoices: Users can customize invoices with their branding, making them look professional and aligned with the company’s image.
- Multi-user collaboration: ProfitBooks allows multiple users to access the software simultaneously, which can enhance collaboration within the finance and accounting teams.
- Cloud-based: Being a cloud-based solution, ProfitBooks allows users to access their financial data from anywhere with an internet connection, offering flexibility and real-time insights.
After asking hundreds of users from the Emirates, we’ve concluded that there are two major drawbacks of our software. We don’t lack where it matters, however, certain aspects may be called a limitation of the software.
- Integrations: ProfitBooks has limited third-party integrations, which might be a limitation for businesses that rely on other tools and applications.
- Mobile app limitations: While ProfitBooks offers a mobile app for on-the-go access, some users have experienced limitations in terms of functionality and ease of use compared to the desktop version.
4. Quickbooks
The
QuickBooks line of software is from Intuit. At one time QuickBooks was considered entry-level because of the low price and simple interface but wide industry acceptance by both accountants and businesses has eliminated that perception.
Pros:
The company offers a range of products including Cloud accounting, expense tracking, Cash Flow Management, Data security, and unlimited support.
Drawbacks:
- Lack of industry and business-specific features (such as lot tracking, eCommerce, and barcode scanning)
- Lack of key reports outside of accounting.
5. Xero
From expenses to capturing bills, projects, ts, and payroll,
Xero is made to keep your business moving.
Pros: It is easy to use, and users find it easy to input data there are often little popup boxes to explain what elements are there. It’s cloud-managed, so there is no need to download any software or store anything locally.
Drawbacks:
- Some of the automatic accounts Xero suggests you reconcile to are not correct so it is important to double-check each transaction before reconciling.
- The way the contacts database has been developed could be improved to make importing and exporting data easier.
6. Sage ERP
Sage has become a world-recognized provider of accounting software. In addition to Sage Peachtree, a popular system for small businesses, they offer several financial management packages designed to support the unique needs of specific industries.
Pros:
From sales and purchases to cash flow, VAT, and reporting. Sage Business Cloud features support every step in your business process.
Drawbacks:
- Navigation through the product isn’t seamless.
- There is an inability to create direct backups of your accounts either your computer desktop or external drives.
7. Zipbooks
ZipBooks provides you with a smart way to track all your transactions, keep on top of what you owe and who owes you, and figure out how much your business is making.
Pros:
The software is easy to use and is perfect for small businesses. It makes the daily chore of bookkeeping fairly easy. Moreover, it is user-friendly. It provides recurring invoices, payment reminders, great support, an iPhone app, a quotation system, easy-to-use report features, and integration with Slack.
Drawbacks:
- It can only accept Internet payments with American banks.
- There are limited amount reports and a lack of export options.
8. SlickPie
SlickPie provides basic expense management for start-ups and small businesses. This easy-to-use expense management software provides everything a small business will need for slick and timely accounting, including straightforward invoicing and detailed reports to help keep their business finances healthy.
Pros:
The free version of this accounting software allows for unlimited automated receipt entries, 10 different companies on one account, and email support. It also allows you to create quotes and estimates that can easily become professional invoices.
SlickPie also allows you to connect your PayPal and Stripe accounts for free. That means customers will be able to fulfill their invoices with card or PayPal payments onlineand you’ll simply have to pay the standard transaction fees that PayPal and Stripe charge.
Drawbacks:
Compared to its competitors, SlickPie falls short in two areas: accounts payable is a manual process and you cant run a statement of cash flows.
9. Wave:
Wave provides completely free accounting that allows small businesses to track expenses, send invoices, get paid, and balance their books.
Pros:
Businesses can send professional invoices and track the status of invoices and payments, so they know when to expect money in their bank account. Businesses can also accept credit cards and get paid faster with Wave. Their introductory package is free. Accounting and reports, sending invoices, receipt scanning, and email support are included too.
Drawbacks:
- Credit Notes Feature: They dot yet have a credit notes feature available, but you can still keep track of debts against invoices to stay on top of negative income.
- Capability: Additionally, thereare several other features that we would love to see in an accounting software like Wave that aret available, like time tracking and audit history.
10. Freshbooks
Freshbooks accounting software
Freshbooks is a very popular cloud accounting app for small businesses, used by about five million customers worldwide offering a wide range of features, from cloud-based invoicing to an online payment gateway. You’ll benefit from its robust reporting functionalities that offer insights for making more informed decisions. Users can snap a picture of receipts or link to the bank for quick expense tracking. You can transfer your timesheet data to invoice and collect payments more quickly.
Pros:
Excellent API, customer service, recurring billing & autopay function, ty, and easy-to-use interface.
Drawbacks:
Despite a wide range of excellent features, users have pointed out a few minor things that can be improved in FreshBooks: its metrics, goal setting, and reporting features can be better. One user also found bugs in FreshBooks’ email click-throughs and automated expenses which did not function to his liking.
Conclusion
Frequently Asked Questions (FAQs)
Q1. What are the security features of accounting software?
Accounting software providers take security very seriously. They use a variety of security measures to protect your data, such as encryption, firewalls, and intrusion detection systems.
Q2. How can I integrate accounting software with other business applications?
Many accounting software providers offer integrations with other business applications, such as customer relationship management (CRM) software and inventory management software. This allows you to share data between different applications, which can save you time and improve efficiency.
Q3. What are the training and support options available for accounting software?
Most accounting software providers offer training and support options to help you get started and use the software effectively. This may include online tutorials, live chat support, or phone support
.
Q4. How do I migrate my data to a new accounting software?
If you decide to switch to a new accounting software, you will need to migrate your data. Most accounting software providers offer migration services to help you move your data from one system to another.
Q5. What are the future trends in accounting software?
The future of accounting software is likely to be cloud-based, mobile-friendly, and integrated with other business applications. Cloud-based accounting software is already becoming more popular, as it allows businesses to access their data from anywhere. Mobile-friendly accounting software is also becoming more popular, as businesses want to be able to access their data on their smartphones and tablets. And integrated accounting software is becoming more popular, as businesses want to be able to share data between different applications.