As a band leader or solo musician, it's important to have an accounting tool to help you keep track of your income and expenses as you will need this information to help you complete your tax returns each year. It also helps calculate your expenses and track your profits and losses. Every band and musician should be using some sort of online bookkeeping software, but which one do you choose?
We've put together this short guide to help you choose the right one, but of course please do your own research and pick the product best suited to you and your needs.
1. QuickBooks
QuickBooks has bene arround for a while and markets itself as perfect for solo and small businesses. We would say (from speaking with musicians and band leaders) this is the most popular accounting software.Alongside the normal accounting software, QuickBooks also has a build in inventory management solution to help you keep track of your equipment which is a perk if you need that.
QuickBooks Pros:
- Easy to use - there's a lot of tutorial videos out there as it is such a well used system.
- Easy to track unpaid invoices.
- Inventory management solution.
QuickBooks Cons:
- Some users report it can be a bit clunky to load.
- Might not be the perfect solution for larger businesses.
2. Xero
Again, Xero markets itself as perfect for solo and small businesses. Like QuickBooks, Xero is a cloud-based accounting software that offers invoicing, expense tracking, and financial reporting. It's suitable for small to medium-sized businesses and offers a range of features.
Xero Pros:
- Like QuickBooks, it's easy to use - there's a lot of tutorial videos out there as it is such a well used system.
- Offers a free trial.
- Will be a perfect accounting tool for businesses who grow.
Xero Cons:
- Limited features in the lower tier plans.
- Pricing can get expensive.
3. Sage
Sage is a software more geared for large more complex businsesses, but at the same time perfectly suited for smaller operations. Sage offers a range of accounting software solutions tailored to various business needs. Sage offer a lot of different tools for businesses, so it might not be suitable for all size businesses, but if you're on the larger size, this might be the perfect tool and a tool often prefered by accountants.
Sage Pros:
- Scalability - Sage's solutions are scalable, accommodating the growth of businesses from small enterprises to large corporations.
- Excellent array of finanial reports available.
Sage Cons:
- Some users have reported that Sage's extensive features can be overwhelming initially, requiring time to become fully proficient.
- The cost can be higher compared to other accounting software options.
How can Band Pencil help? Band Pencil allows you to manage your gigs online and connect your musicians and clients together. We have a system to manage your finances and create and send invoices online. Although we will not replace your accounting software, we help musicians and band leaders speed up invoicing and getting paid. Check out our online invoicing and online payment solutions.
