Cloud accounting applications and the pace that industry grows are two hot topics. The truth is that accounting packages have been slower to be taken to the cloud than software for other industries were. However, cloud-based accounting tools become more and more popular.
Xero, for example, claims approximately 22,000 members and says it adds 300 more on a daily basis. Outright is one of the newest cloud accounting applications, and it claims on its website that its features can help you “free yourself from accounting.” If you own a single-person LLC or a sole proprietorship, Outright is designed to meet your needs.
Small business owners never want to have to focus on the books. That’s not why they opened their businesses in the first place. Owners who are raking in a large profit can afford to hire an accountant. However, if you can’t, you’re stuck doing the books after a long day of promoting, operating, managing, training, and (hopefully) doing some selling. If you’re sitting in front of spreadsheets, you’re not out there growing your brand. The main benefit of Outright is that it frees the small business owner to get back out there and pursue his passion – his business.
Outright automatically keeps track of expenses and income, and it even sorts your transactions to give you the best deductions when it’s time to report to the IRS and state taxation authorities. It assists with the preparation of estimated tax statements and yearly returns, so you can focus on your brand. A lot of small business owners don’t know all the tax deductions for which they qualify, which is why the automatic sorting feature is such a valuable one. It is worth noting that Outright only works for the U.S. tax system at this point.
How Outright Operates
First of all, Outright focuses and targets small businesses. Some people might wonder why an accounting application would limit itself to small businesses in this way. While this might seem shortsighted, the truth is that this permits the company to focus on this target group, develop a product that better serve it and establish it as a market leader.
For example, one small business that receives particular attention is the regular eBay seller. Outright has a few sections that are set aside for eBay resellers, making this the perfect application for people with eBay stores. That’s a clever move that can create a competitive advantage and help Outright stand out from the crowd.
When you open Outright, there are tabs for taxes, expenses, income and reports. These tabs show you each category analysis and send you to reports that are user-friendly, showing you your loss or income at any given time. It also breaks down expenses and income by customer, vendor and category.
One interesting feature is that Outright contains a function allowing you to ask an accountant or bookkeeper to take a look at your records. This way if you run into an accounting issue that is over your head (and that of Outright), you can bring in a professional with a minimum of time spent bringing that person up to speed.
When Outright first came out, it was free for all users. However, now you only get to use it for free for a one-month trial. When that ends, it costs $9.95 a month to keep using it. However, the level of reporting and assistance that you receive makes it well worth the price. It will improve your productivity and that can be priced higher than $10.
How to Handle 1099 Forms
A Form 1099 needs to be prepared for every client that has spent over $600 during a year. Outright has come up with a way to send in your 1099s for you to the IRS. This costs extra ($5 per 1099), but the feature is so useful that it is well worth that minimal cost.
Outright has been bought from GoDaddy, one of the biggest hosting companies worldwide. GoDaddy was reportedly trying to find an acquisition target to enter the SaaS industry. The good news is that GoDaddy is a big company with a very strong brand in the hosting marketing.
Yes or No?
Given the extremely low price and the features that are available, Outright seems a reasonable choice. The fact that Outright by Godaddy also shows that it will be actively developed (hopefully). Signing up is easy and the cost to try it minimal. So, why not?