Picture Alex, founder of a growing environmental consulting firm, comparing bookkeeping software options on her laptop. “I know I need something better than spreadsheets,” she mutters, “but how do I choose between all these options?” Choosing the right bookkeeping software can feel overwhelming if you’re like Alex. Let’s cut through the confusion.
Understanding What Matters
Consulting firms have unique financial needs. Through their work with over 175 professional service firms, System Six has found that consulting businesses need particular capabilities in their bookkeeping software. You’ll want to track project profitability, allocate time and expenses efficiently, create professional invoices, and see your real-time cash flow. Most importantly, your software should play well with other business tools you use daily.
The Top Contenders
QuickBooks Online is System Six’s top recommendation for most consulting firms. “QuickBooks Online forms the backbone of our client’s financial systems,” explains Tim from System Six. Its robust feature set and extensive integration capabilities make it ideal for consulting firms.” The software excels at project and class tracking, offers strong reporting capabilities, and grows alongside your firm. While its interface can initially feel overwhelming, proper setup and guidance can transform it into a powerful ally for your business.
For firms with international operations, Xero offers a compelling alternative. Its multi-currency handling and intuitive interface make it particularly attractive for firms across borders. One System Six client who switched to Xero praises its clean interface and excellent bank reconciliation features. However, compared to QuickBooks Online, Xero offers fewer US-specific features and a more limited selection of third-party integrations.
Smaller consulting practices (<$400K in revenue) might find FreshBooks hits their sweet spot. It shines in time tracking and professional invoicing, with an interface that won't send you reaching for the aspirin. Yet, as your firm grows, you might find its reporting capabilities and basic accounting features somewhat constraining.
Sage Intacct enters the conversation for consulting firms scaling beyond $20 million in revenue. It offers sophisticated financial management features that larger firms need, though its significant investment requirement and steep learning curve make it overkill for smaller operations.
Making It Work
Having the right software is just the beginning – the implementation transforms it from a tool into a game-changer. As one System Six client shares, “They revamped our whole accounting system into accurate and dependable practices. They take on the entire setup and effectively act as consultants until your accounting operations run smoothly.”
The setup phase proves critical. Many firms stumble by trying to configure these tools without proper expertise. Working with experienced partners like System Six ensures your chart of accounts reflects consulting industry best practices, your project tracking captures the right metrics, and your automation saves time rather than creating headaches.
Your software needs will evolve as your firm grows. Quarterly reviews of your financial systems help ensure they continue supporting your business effectively. “I don’t have to think about my accounting anymore,” one System Six client notes. “It’s just taken care of seamlessly.” This peace of mind comes from combining the correct software with expert implementation.
Making Your Choice
When selecting your software, consider your firm’s current size and growth trajectory. A solo consultant’s needs differ vastly from those of a 50-person firm. Think about which features you genuinely need today and which you might need tomorrow. Consider your budget not just for the software but also for proper implementation and support.
Remember Alex from our opening? She ultimately chose QuickBooks Online, which she implemented with System Six’s guidance. “Now I actually understand our numbers,” she says. Instead of wrestling with basic bookkeeping, I’m using financial insights to drive decisions.” Her story could be yours, too.
The right combination of software and expertise can transform your financial operations from a burden into a strategic advantage. Consider partnering with experts who can help you not just choose the right software but implement it in a way that gives you back your evenings and weekends. After all, you became a consultant to solve complex problems for clients, not to become an amateur accountant.
About System Six
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work.
Contact us at hello@systemsix.com.
