Akaunting

1. What is Akaunting?

Positioning: Akaunting is a free, open-source online accounting software designed for small businesses, freelancers, and startups, offering both self-hosted and cloud-based solutions to manage financial transactions. It aims to provide a robust yet accessible alternative to traditional accounting platforms.

Functional Panorama: Akaunting covers a comprehensive range of financial management modules. It explicitly includes Sales (Invoices, Customers), Purchases (Bills, Vendors, Expenses), Banking (Accounts, Transfers, Deposits), and Reporting (Profit & Loss, Balance Sheet, Income Summary, Tax Summary). Implicit modules include multi-currency support, a client portal for invoice access, payment gateway integrations, and an extensible App Store that supports additional functionalities like payroll, inventory, and project management.

2. Akaunting’s Use Cases

• Small business owners to manage daily invoicing, track expenses, and reconcile bank accounts for accurate financial oversight.
• Freelancers and consultants to streamline billing, monitor income and expenditures, and generate professional invoices for clients.
• Startups seeking a cost-effective or free financial management solution to establish initial accounting practices without significant upfront investment.
• Businesses operating internationally to handle transactions in multiple currencies and track exchange rate fluctuations.
• Accountants and bookkeepers to manage the finances of multiple small clients from a centralized, customizable platform, particularly for those preferring open-source solutions.

3. Akaunting’s Key Features

• Free & Open-Source Core: The foundational software is entirely free and open-source, allowing unlimited users, companies, and transactions for self-hosted installations.
• Invoice Management: Enables creation, sending, and tracking of professional invoices with customizable branding, recurring options, and integrated payment gateways.
• Expense Tracking: Comprehensive system for categorizing and recording business expenses, with the ability to attach receipts and generate detailed reports.
• Multi-Currency Support: Facilitates transactions in various currencies, automatically fetching real-time exchange rates to maintain financial accuracy across global operations.
• Bank Reconciliation: Allows users to connect bank accounts and reconcile transactions, ensuring that bank statements align with the company’s books.
• New Mailchimp Integration: Added in April 2024, this app enables direct synchronization of customer data from Akaunting to Mailchimp for streamlined email marketing campaigns.
• User-Feedback Customization: Users frequently praise the extensive App Store and open-source nature, highlighting the ability to add specific functionalities like inventory, payroll, or project management via paid apps.

4. How to Use Akaunting?

Akaunting offers both self-hosted and cloud-based options, with similar core workflows once set up:

1. Installation/Sign-up: For self-hosting, download the Akaunting software from Akaunting.com and follow the server setup instructions. For the cloud version, sign up directly on the Akaunting Cloud website by choosing a suitable plan.
2. Initial Company Setup: Navigate to the “Settings” menu to configure essential company details, default currency, tax rates, and branding elements like logos.
3. Create Accounts: Under the “Banking” section, add your bank accounts, cash accounts, or credit card accounts to accurately track all financial movements.
4. Generate Invoices/Bills: To create an invoice, go to “Sales” > “Invoices” and click “New Invoice.” To record a bill from a vendor, navigate to “Purchases” > “Bills” and click “New Bill.” Enter recipient/vendor details, items, quantities, and prices.
5. Record Expenses: Under “Purchases” > “Expenses,” click “New Expense” to log business expenditures, categorize them, and optionally attach digital receipts.
6. Pro Tip for Automation: Integrate payment gateways like Stripe or PayPal through the Akaunting App Store to automate invoice payments and reconciliation, significantly reducing manual data entry.
7. Pro Tip for Data Migration: When transitioning from another accounting system, utilize Akaunting’s import features for customers, vendors, and items to quickly populate your database and ensure a smooth migration.

5. Akaunting’s Pricing & Access

• Free Tier: The core Akaunting software is 100% free and open-source for self-hosting installations, offering unlimited users, companies, and comprehensive accounting features without any subscription fees.
• Akaunting Cloud Basic Plan: Starts from $15 per month (or $144 annually when paid yearly) and includes essential features for up to 3 users, providing a convenient hosted solution without the need for technical setup.
• Akaunting Cloud Standard Plan: Priced at $25 per month (or $240 annually), this tier accommodates up to 5 users, includes a client portal, and provides access to additional premium apps.
• Akaunting Cloud Premium Plan: Available at $45 per month (or $420 annually), this top-tier plan supports unlimited users, grants access to all premium apps, and offers priority customer support for larger businesses.
• Web Dynamics: Akaunting frequently offers discounts for annual subscriptions across all Cloud plans, providing significant cost savings compared to monthly billing.
• Tier Differences: The primary differences between the Akaunting Cloud tiers lie in the number of allowed users, the selection of included premium apps, and the level of customer support provided, while the fundamental accounting functionalities remain consistent across all tiers.

6. Akaunting’s Comprehensive Advantages

• Cost-Effectiveness: As a free, open-source solution for self-hosting, Akaunting provides a full-featured accounting system at no software cost, making it significantly more affordable than proprietary competitors like QuickBooks Online or Xero, particularly for small businesses with limited budgets.
• Customizability & Extensibility: Its open-source nature allows for unparalleled customization and integration possibilities, augmented by a rich App Store for adding specific functionalities like inventory, payroll, and more, offering flexibility often unmatched by closed-source alternatives.
• Data Ownership & Security: For self-hosted users, Akaunting provides complete control and ownership over their financial data, which is a critical advantage for businesses prioritizing data privacy and security over cloud-based data storage.
• Strong User Satisfaction: Akaunting generally receives high ratings on independent review platforms , with users frequently praising its ease of use, comprehensive feature set for small businesses, and responsive support.
• Active Community Support: Beyond official support channels, Akaunting benefits from an engaged developer community and user forum, providing additional resources, troubleshooting advice, and ongoing improvements.
• Scalability with Control: It allows businesses to start with a free, self-hosted version and then seamlessly transition to a cloud-hosted solution or add premium apps as their needs grow, maintaining a consistent user experience.