1&1 - Accounting Software

Our Verdict

1&1’s accounting software is useful for small business owners, especially those who don’t require advanced accounting functions or already have a third-party accountant working for them. With that said, this cloud-based software is still very helpful with invoice creation, reviewing revenue and expense data, tracking inventory levels, and managing supplier data. With the 24/7 support that 1&1 offers, you don’t have to be a CPA to use the software, help is always on standby. For the price, the software is a good deal for those who want a simple cloud-based interface to use to help them mitigate tedious financial processing.

Pros

Can be accessed on any device
Option to set up accounts for multiple employees
Creates revenue and expense graphs for analysis

Cons

No financial reporting or GL functions
No payment processing features

Products & Pricing

Depending on your accounting needs, there are three packages that 1&1 offers:

Invoice

$4.99 per month for the first 12 months, then $9.99 per month. This is the most basic plan, and it’s best for small business owners who want to create invoices and manage customer and supplier data. With this plan, you can design invoices, create quotes, and send invoices to your clients online. All your customer and supplier data are stored in one central location, accessible through your dashboard.

Accounting

$9.99 per month for the first 12 months, then $19.99 per month. You’ll get all the features of the Invoice package plus additional tools that are vital to bookkeeping. The accounting plan digitalizes recordkeeping, allowing you to scan receipts and other documents through your mobile phone. Once documents are uploaded, they are automatically recognized. You can calculate sales tax on scanned documents and see an overview of debit and credit payments.

Inventory Manager

$19.99 per month for the first 12 months, then $39.99 per month. This package not only includes the features of both the Invoice and Accounting package but also lets you manage and track the logistical functions of your business. Notable features of this plan include tracking of stock levels, delivery slip creation, supplier management, and booking of outgoing and incoming stock.

1&1 offers accounting software at prices significantly lower than industry competitors. The cloud interface doesn’t require upkeep by an IT department, drastically lowering your operating costs. Compared to cloud-based accounting software Xero and NetSuite, 1&1 is a bargain.

Invoice

$4.99 /mo

Money-back guarantee

Accounting

$9.99 /mo

Money-back guarantee

Inventory Manager

$19.99 /mo

Money-back guarantee

In-depth review

Features and Functionality

Since all of 1&1’s accounting packages use the same cloud-based dashboard, you and your employees can access it on any PC, laptop, tablet, or mobile phone in the world. The various features help automate and simplify your businesses’ accounting processes. Here’s a glance at each plan and its core features.

Invoice

Designed for just one user, the Invoice package is the most basic of the three. When it comes to invoice creation, this software has you covered. Using the interface, you can create invoices using pre-existing templates and customer data that is stored on the cloud. Once an invoice is generated, you can either print it or send it to your client via email. To top it off, you can automate your invoicing process by setting up reoccurring invoices after the initial one is generated.

All of your invoices are securely stored and sorted in your accounting dashboard. The invoice package further automates your accounting process by sending payment reminders at set intervals. If you need to go back and adjust an invoice, you can easily do so and then send clients cancellation invoices or invoices with credit balances. Lastly, although the invoices consider your local tax rate, there are no extra features for generating tax documents.

Accounting

The Accounting package includes all the features of the Invoice package, plus extra tools for bookkeeping. With access for up to three employees and a tax advisor, this package lets you scan your receipts on your mobile phone and then it automatically stores and categorizes them. There’s also the option to link your bank account to the interface. If you do link your bank account, the interface will automatically match payments to invoices.

Unlike the Invoice package, the Accounting package uses your data to generate revenue and expense reports. This data can be exported and sent to tax advisors and auditors for further review. There’s also a separate login that’s exclusively designed for your tax advisor. In addition, you can set up cost centers and allocate expenses to them. The costs centers aid you to more accurately categorize your expenses and link them to incoming cash flows.

Inventory management

With powerful logistic functions, the Inventory Management package has the most features out of the three. Up to ten employees can access the interface from any device. Designed especially for business owners with that have physical inventory on-hand, this package lets you view stock levels and maintain a database of supplier prices. When inventory goes in or out the door, you can record stock entries and make special notes for later reference. Inventory levels are automatically adjusted once stock entries are made.

Another thing that sets this package apart is its supplier management feature. You can set up new suppliers, link them with their products and prices, and store contact information. Using the database, you can monitor price and compare prices before purchasing inventory. Any communication with suppliers can also be stored on the interface, allowing you to refer back to previous interactions.

Add-ons and Integrations

With 1&1’s accounting software, add-ons and integrations are limited. You can, however, integrate the software with your bank account to match payments to invoices. In addition, there’s a port to external shops such as Shopify and WooCommerce, so invoices created with these apps are automatically stored on your 1&1 dashboard. There are no payment processing integrations or any additional add-ons to enhance the software.

Ease of Use

Unlike other accounting software, 1&1’s accounting packages don’t require any special installation. After you register and pay for the package, there’s only a very short waiting time for 1&1 to set up your dashboard. Once you’re logged into your accounting dashboard, you can access all the tools through the menu bar located on the left-hand side of the screen. To make locating specific tools more convenient, the interface also sports a search bar you can use to track down a feature if you can’t find it via the menu bar.

1&1 wants to make sure you’re aware of cash flow and your agenda, so much that they put a revenue and costs graph smack-dab on the front-page of the dashboard, along with a “my tasks” widget for your to-do list. Since the interface is pretty straight-forward, 1&1 doesn’t offer any special training for newcomers. Any questions can be directed to the 24/7 online chat or the FAQ page. There’s also a blog for more theoretical-based accounting knowledge.

Customer Service

There’s no need to fret if you run into problems uploading receipts or generating invoices, 1&1 has 24/7 phone and chat support. So, no matter the time of the day, you can contact technical support for assistance at no cost. In addition to on-demand support, 1&1 also has a help center with frequently asked questions and how-to guides.

Unfortunately, a lot of what you’ll see in the help center pertains to web hosting and general account questions, not the accounting packages. There is, however, a complete guide available on sevDesk’s website, the developer of the software.

Although the accounting resources are scarce in the help center, 1&1 has a blog with several posts (“digital guides”) that pertain to general accounting procedures and knowledge. While the guides are useful for small business owners to understand accounting practices, they don’t actually reference the accounting packages. Aside from the blog, there’s also a community forum, the Cloud Community, where you can ask other users questions. If you take a quick glance at the forum, you’ll probably hear crickets chirping in the background, because there’s only about one post per day and the forum is pretty dead.