Is Bench Accounting the Right Tool for Your Business?
Did you know that a report published by Fortune Business Insights says that the accounting software market will reach a market value of $416.23 million by 2024? [1]. Companies of all shapes and sizes rely on the accounting software to streamline and manage their core operations.
Thanks to technology and increasing demand, numerous accounting software and bookkeeping solutions are available today. Bench is one of the few accounting solutions that stands out and also caught our attention. Its wide feature set along with its affordability makes it one of the most popular financial accounting software.
A lot of small to medium business owners are still figuring out if Bench is the right accounting software for their business. If you are one of them, you can go through our detailed Bench review.
Although Bench offers almost the same features and services as most financial solutions, when you start using it, you will start noticing the difference.
In this article, we will touch upon the key services provided by Bench and also take a look at its pricing plans, and alternatives.
SEE ALSO: 4 Best Fintech Apps in 2021 and Why They Stand Out
Bench Accounting services
Bench is one of the most popular financial accounting software solutions in the world, and for a good reason. It offers a plethora of cash basis bookkeeping services such as transactions classification, receipt management, and more.
To comply with the platform, users need to provide read-only access to their accounts or account statements.
Cash basis accounting works perfectly fine for a few businesses. However, before you choose to go ahead with the cash basis accounting path, you should first understand what it means.
What is Cash Basis Accounting?
Cash Basis Accounting is a technique that is used to document financial transactions that are linked with your bank account. This means that every source of income or expense is recorded diligently.
In simple words, Bench’s services can be looked at as basic checkbook reconciliation.
What are the items that do not enter your checkbook?
- Accounts payable: Bills that need to be paid are not entered into Bench. This means that you will not be able to track who you need to pay.
- Accounts receivable: If you bill your clients and allow them to pay at a later date, you have accounts receivable. In such cases, invoices will not be tracked in the financial software.
- Prepaid expenses: If you have paid a lump sum insurance premium or paid for a yearly software subscription, your business has Prepaid Expenses to track.
- Unearned revenue: Unearned revenue is the opposite of prepaid expenses.
- Inventory
- Sales tax
Functionalities missing in Bench Accounting
- Job costing: How do you keep track of your expenses and income? By project or by the customer? Since Bench does not capture this information, you will not be able to put a finger on how profitable your customers or jobs are. It is essential to determine whether your jobs are earning or losing money for you.
- Segregation of income: Can you track different revenue streams and costs associated with them? Although Bench offers basic assistance, it does not track income and Cost of Sales/Cost of Goods Sold in detail.
- Billable expenses: Do you pay on behalf of your clients and bill them later? Unfortunately, Bench does not track this data nor allows you to create invoices. This means that you will have to track these expenses on spreadsheets making it a tedious process.
- 1099s: If you rent or pay contractors, attorneys, etc, you will have to deliver 1099s at the end of each year. Bench does not do that for you.
Financial statements provided by Bench Accounting
Bench provides the following financial statements:
The profit and loss statement provides a clear picture of all your income and expenses for a stated period. The balance sheet is a basic overview of the financial position of your business.
Cash basis financial statements offer an idea about only one part of your financial health. These may not give you in-depth insights that you may require. The financial statements generated by Bench can be used to deliver to your CPA at the end of the year to prepare your taxes.
How much does Bench cost?
Bench offers easy to understand, simple, and crystal clear pricing for businesses of all sizes.
You have the option to pay on a monthly or an annual basis. If you pay annually, the Essential plan starts at $249 per month ($299 if paid monthly). The Premium plan costs around $399 per month if paid on an annual basis ($499 if paid monthly).
You can add specialized and historical bookkeeping to each of the Bench pricing plans.
You can try and test all the features and decide whether the tool is a perfect fir for your financial needs by signing up for the free trial.
Who are the typical Bench customers?
Bench is well-suited for a range of audiences. However, it is well-suited for freelancers and small businesses. If you are looking for an easy-to-use, user-friendly, and intuitive financial solution, you should consider Bench.
What are the alternatives to Bench Accounting?
Accounting is the core component of any business. This is why it is essential to choose the right accounting tool for your business needs.
Here are some of the most popular Bench Accounting alternatives.
- Zoho Books
- FloQast
- QuickbooksOnline
All these tools come with their pros and cons. However, a majority of the small businesses and freelancers use these tools to manage their finances. You can also take a look at some of the best financial software solutions available for your small business.
If you are keen on starting a free trial with Bench, click here. You can also read our Bench Accounting review to get a better understanding of the tool’s specifications and core features.
SEE ALSO: 5 Best QuickBooks Alternatives for Business Accounting in 2021
Feature Image Source: Image by Steve Buissinne from Pixabay
