Bookkeeping SaaS: The Top 3 Choices for SMEs 

Key takeaways 

• Using a bookkeeping SaaS can cut down costs and give you a better understanding of your business’s finances
• Select a software that supports the accounting treatment prescribed by the IFRS, which are global accounting standards that ensure comparability in financial statements
• Popular accounting SaaS examples include Xero, QuickBooks Online, and Wave, with Wave being a free option
• SaaS accounting courses and coaching programmes are freely available at Xero, but Wave also offers paid options that provide access to in-house accountants and bookkeepers

Sound accounting is the bedrock of any successful business. Where funds should be put towards, where to cut costs, what are the hidden risks in your business—the answers to these questions all lie in your business’s numbers. 

The pros of finding your own bookkeeping SaaS

Accounting is a highly technical field. To minimize costly mistakes, many entrepreneurs continue to outsource their accounting to professional accountants. However, in a technological era where knowledge and tools are decentralized, there are multiple SaaS (software as a service) accounting solutions that will enable you to handle your own financial reporting. Not only will doing your own accounting help you cut costs, it might also present an opportunity to get up close and personal with your business’s finances. 

SaaS Accounting Standards – What counts as good accounting? 

Over 168 nations, including all EU countries and jurisdictions such as Canada, India, Russia, South Korea, and Hong Kong, follow International Financial Reporting Standards (IFRS). These accounting “rules” are set out by the International Accounting Standards Board to create transparency and comparability in the financial statements of companies worldwide. 

If your accounting follows IFRS, even investors from different countries should be able to take one look at your financial statements and do “apples to apples” comparisons. IFRS therefore forms a “common accounting language” that can enhance investor confidence in your company. This is why doing accounting well often means following IFRS. 

Below, we list out some specific reports that are mandatory under IFRS.  

Find an Saas that supports IFRS accounting treatment (reword)

1. Statement of financial position (IAS1)

Every entity is required to prepare a balance sheet at the end of the accounting period, showing what the company owns (assets), what it owes (liabilities), and the amount shareholders have invested into the company (equity).

2. Statement of Changes in Equity (IAS 1)

This is a report showing differences in equity between accounting periods, providing a snapshot of how much the company has grown compared to the last year.

3. Statement of Cash Flows (IAS7)

A statement of cash flows shows both inflowing and outflowing cash, specifying cashflow from financing, operation, and investments.

4. Statement of Profit and Loss (IAS1)

This mandatory report is also known as the income statement. This report can comprise one single document (a statement of comprehensive income) or two documents (a profit and loss statement and a statement of comprehensive income). According to IFRS, the items that must be included in this report include Revenue, Finance Cost, Tax expenses.

5. Notes of Compliance (IAS8)

Entities must include notes that outline the particular principles, conventions, rules and practices they have applied when preparing financial statements. If there were any changes in these areas compared to previous financial statements, the company must disclose those changes. 

To help you find an accounting software that will make it much easier to find figures for the required reports listed above, we will now compare some of the most trusted accounting SaaS solutions. 

Accounting SaaS Examples 

Xero 

This cloud-based accounting software is often lauded for its clean user interface, and its ability to handle multiple accounting tasks with sophistication. 

Main features	Limitations	Monthly fee*
Mobile apps for iOS and AndroidOnline invoicing Bill payment tracking Bank feeds connects directly with major Hong Kong banks like HSBC and Hang Seng BankAll plans support unlimited users1,000+ third-party app integrations	Limited basic plan a quota of 20 invoices and 5 bills per month) Multi-currency support and time tracking are only available in the Established Plan	Early—$25 USD per monthGrowing—$55 USD per monthEstablished—$90 USD per month

*At the time of writing, Xero is offering their plans at 50% off for the first 3 months. 

QuickBooks Online 

 QuickBooks is a comprehensive accounting tool for small businesses. However, as the business grows in scale, users might find certain features limited. 

Main features	Limitations	Monthly fee
Live bookkeeping serviceMobile app is available Integrations with third-party applications Expense trackingPayroll managementInventory tracking Tax preparation tools	Large transaction volume or number of users can affect the software’s performance Limited customization options (e.g. invoicing system limits field modifications on templates High costs for advanced features (e.g. Only the most expensive plan supports restoring account data to previous dates)	Simple Start—$38 Essentials—$75Plus—$115Advanced—$275

*At the time of writing, QuickBooks Online is offering their plans at 50% off for the first 3 months. 

Wave 

Wave is a free SaaS designed for freelancers and small businesses. Supporting integrations with platforms like PayPal and Shopify, it is tailored to the needs of e-commerce businesses. 

Main features	Limitations	Monthly fee
Invoicing Expense tracking Financial reporting Integrations with platforms like Shopify and PayPal   Supports exporting of data to other accounting systems for further analysis	Lack of built-in inventory management functionsPayroll is only available in the US and Canada	None

SaaS Accounting Course – Useful resources for new business owners

If you’re a new business owner, handling your own bookkeeping and accounting can be a daunting task. However, you needn’t look too hard to find professional guidance to support you every step of the way. 

Wave coaching

Wave offers 2 year-round support and coaching plans. Here are some of their main features  

• Bookkeeping advisory services (USD149 per month)
  • In-house bookkeeper based in North America 
  • Collaboration with bookkeeper 
  • Monthly review calls 
• Accounting Coaching Services (one-time fee of USD229)
  • Live 1:1 coaching
  • Unlimited 30-day email access to personal coach 

Xero Coaching 

Xero offers a free certification programme that trains individuals in Xero products to obtain the following certifications: 

• Certified Associate (Beginner) 
• Certified Professional (Intermediate) 
• Certified Specialist (Expert) 

To obtain the certifications, you may watch tutorial videos and live interactive webinars on Xero’s website, and then take an examination that involves multiple choice questions and tasks. There is no time limit; you may learn at your own pace. 

However, if these resources are insufficient to instill confidence, don’t hesitate to seek professional help. Not all experienced and reputable accounting firms charge premium prices. To learn more about our fees and get our tips and tricks to keep accounting fees low, click on the button below!

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