6 Best Accounting Software for Small Businesses
Last Updated on January 1, 2023 by Selina Parker
There are a lot of accounting software programs on the market these days. But as a small business owner, how do you know which one is best for your small business?
This blog post will discuss some of the best accounting solution options available and explain why they might be the best choice for your company.
Remember that the best program for you might not be the best program for everyone. You should consider your specific needs and choose a program that fits those needs.
Why use accounting software for your small business?
The best small business accounting software will save you time and money by automating many tasks that take up your valuable time. You can easily track accounts payable and accounts receivable.
It can also reduce human error, which is one of the biggest causes of mistakes in bookkeeping. You can also sync business bank accounts and credit cards to save time.
The best accounting software for small businesses makes it easy to keep detailed, accurate books. Specifically, these programs use double-entry accounting, generate valuable reports, provide live support, and can scale your business as it grows. If your company plans to hire expert help, you’ll also want to get a program.
There are many accounting programs to integrate with other software you use daily, such as payroll or inventory management systems. You may be able to find a program that already integrates with the software you are using, or you can look for one that will be compatible in the future.
The best accounting software is also scalable, which can grow with your business. As your company expands, your accounting needs will change as well.
Best Accounting Software for Small Businesses
1. FreshBooks
FreshBooks, a Toronto-based firm founded in 2003, serves small business accounting needs. It’s based on cloud-based accounting and invoicing software available in iPhone, Android, and iPad apps.
The program’s features are numerous – invoicing, accounting, time tracking, a range of business reports, even the option to take credit card payments – and its user-friendly design is helpful for non-accountants.
Best Features
- Reminders for payments
- Recurring invoices with configurable options such as due dates and discounts
- Credit card payments via online
- Multi-currency and language billing are available
- Automatically perform sales tax calculations
- Tax-friendly cost categories
- With a Chrome browser extension, you can track time
- Bank transfers, recurring payments, and auto payments with bank integration
- Integrations with tax apps, calculations, deductions, and filing tools are all available
- Integrates with multiple programs, including Google Workspace and Gusto
Available Plans
FreshBooks Lite: $15/month
FreshBooks Plus: $25/month
FreshBooks Premium: $50/month
PROS
- The interface is user-friendly
- There’s a lot of depth and functionality on offer
- Many popular software services are integrated
CONS
- Too many features for some users
- Complex features take time to learn
- Additional costs for more features may apply
2. Quickbooks
In the world of accounting and bookkeeping, QuickBooks is a well-known brand. Intuit is the owner of QuickBooks Online. It also has other small businesses and great options, a wide range that includes Turbotax, Mint, and Proconnect, among others. There are numerous different types of QuickBooks: desktop versions to the trendy online edition.
Best Features
- Integration with a variety of financial institutions, as well as with PayPal, Square, Shopify, and other popular services
- Assist users in filling out quarterly and annual tax forms as well as exporting tax information
- Calculations of sales tax, returns, and recorded taxes
- Organize transactions and costs by tax category automatically
- In one spot, keep track of your expenditures
- Attach copies of purchase receipts to invoices
- Export any relevant documents yourself or share them with your accountant
- Create reports that show how much money you have left on hand and when you have paid all the bills.
Available Plans
Quickbooks Simple Start: $10/month
QuickBooks Essentials: $17/month
QuickBooks Plus: $30/month
PROS
- Even a simple plan has full of features
- There are many add-ons available
- Offers a free trial
CONS
- Has multiple versions
- Deal prices are ever-changing
- There’s a lot to be learned
3. Xero
Xero might pique your interest with its low-cost Early plan account but look closely. You’ll see that limitations soon emerge – such as a maximum of five invoices, entry of five bills, or only reconciling 20 bank transactions.
There are, nonetheless, some benefits to living within those boundaries. The app gives you easy access to your accounts and expenses in real-time, helping you stay on top of your expenditures. It also allows you to track and manage your spending on a mobile device with Xero’s excellent Android and iOS apps.
Best Features
- Claim expenses
- Send invoices
- Quick bank reconciliation and integration with your financial institution, as well as other apps such as HubSpot, Square, and over 450 different programs
- Updated financial reports
- Data about your business is safe
- Cash position in real-time
- Collaborate with your accountant or employees
Available Plans
Xero Starter: $9/month
Xero Standard: $30/month
Xero Premium 10: $70/month
PROS
- The initial plan has an attractive price
- Great mobile apps
- Fully expandable
- The best option for unlimited users
CONS
- There are some significant limitations to the Basic plan
- Costs start to pile up
4. Sage Accounting
Sage Business Cloud Accounting makes an excellent first impression with its straightforward and gimmick-free pricing. The best Sage Accounting plan is reasonably priced, and there is even a 30-day free trial.
You get modules to handle and submit VAT online; innovative bank feeds and reconciliation, cash flow forecasting, comprehensive reports, other currency support, project monitoring, etc. All of it is available from your desktop or via a mobile app.
Best Features
- Organize your company’s finances and cash flow
- Receive and accept payments
- Create and send invoices
- Payroll management
- You can access your financials on all devices
- Integrate with your bank and other apps such as AutoEntry, Zync, etc.
- Financial compliance solutions
- A simple dashboard layout with easy-to-understand financial statistics and analysis
- Inventory control
- Cash flow projection
- With your accountant in real-time on any device, you may access your financial records in real-time
- Add-ons such as personnel management and estimations are also available
Available Plans
Sage Accounting Start: $10/month
Accounting: $7.50/month
PROS
- Value proposition at a low price
- Properly organized and simple to use
- Impressive customer support
CONS
- The most basic option is quite limited.
- Paid for implies there’s more to learn
- There is a learning curve
5. Zoho Books
Zoho Books is just one small component of a far more prominent Indian firm that provides everything from customer relationship management to simple accounting. Cloud-based online accounting software makes a fantastic cost-effective alternative for freelancers, sole traders, and small firms.
Best features
- Tax filings and audits
- Sales orders
- Invoicing
- Accountancy covering the whole process
- Reconcile your bank transactions
- Client portal
- Reports and schedules
- They automatically make calculations for taxes
Available Plans
Free: $0 per month.
Standard: $20 per month.
Professional: $50 per month.
Premium: $70 per month.
PROS
- It’s simple to use
- There are several features and capabilities accessible
CONS
- No payroll
- Limited basic plan
6. Wave
Wave is one of the most popular and successful online accounting solutions, with over two million users. Accounting, invoicing, and receipts are all completely free, but if you want specialized technical help, you’ll have to pay for it. However, the free accounting software service does not support payroll, and you do get advertisements – just as with any other free online service.
Best Features
- Expense tracking and expenses are completely free.
- On income and expenditures, charge sales tax
- Double-entry accounting features
- Multiple users
- Financial statements are easy to read on the dashboard
- Create tax categories for your income and expenses
- It includes the profit and loss statements
PROS
- One of the most trusted and popular service
- It’s a nice-looking and well-made product
- Best free accounting software
CONS
- For medium-sized companies, it will be too basic
- Paid for computer support
How to Choose the Best Accounting Software for your Business
It is easily accessible wherever you are
Having access to your accounting information in real-time, wherever you are, is a must. It makes it easy to respond instantly, make decisions quickly, and keep your records up-to-date.
Easy to use
The best accounting software for small businesses is simple and intuitive to use. It should also come with tutorials or other features that people who are not so tech-savvy can use.
Usable by your accountant or bookkeeper
If you have a team of people helping you with your accounting, it is best to get software that accountants and bookkeepers commonly use. It will make it easier for them to understand and use the program.
Scales with your business
The best accounting software for small businesses grows with your company. It should have features that can accommodate a more significant business as it expands. It should also be easy to upgrade to don’t have to switch to another program when your company gets bigger.
Integrates with other apps
Small business accounting software should integrate with other apps you already use in your industry. It will make it easier for you to keep track of all your financial information in one place.
Conclusion
Small business owners can save time and money by choosing the best accounting software for small businesses. It will give you more time to focus on growing your business and ensuring that your accounts are in order.
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“What began as a life and career coaching services company to aide entrepreneurs through the early-stage challenges and tough transformations of starting a social venture has evolved over the years to include mergers and acquisitions, organizational consulting, and business growth advisory services to mission-driven organizations that strive to improve access to basic physiological, safety, and security needs while increasing their profit margin. Clients include founders and organizations with the purpose of addressing deficiencies in delivering quality healthcare and mental health services, sufficient employment, access to clean water and air, safe shelter, adequate food, and more.”
