Best Accounting Software for Small Business
QuickBooks Online is our pick of the best accounting software.
Interested in finding the best accounting software for your small business?
This may be one of the biggest questions on your mind as you enter into this exciting new chapter of your life! From juggling multiple financial obligations and accounts, to trying to figure out the overall budget for your brand-new small business — it's a lot.
|Accounting Software for Small Business|
The 5 Best Accounting Software for Small Business of 2022/2023
I am certain that you are like many small business owners who periodically ask yourself:
What is the best accounting software for my business?
There is no way of telling what kind of accounting software solution your business needs because it depends on several aspects.
The most important one being the room for the expansion of your business.
If you are a sole trader in real estate and have additional income on the side, then you need very proficient software to handle your cash flow.
QuickBooks Online is the best accounting software for small business.
Are you a small business owner? Are you looking for accounting software that's easy to use, reliable and affordable? If so, then QuickBooks Online is your answer. With QuickBooks Online, you can:
- Get the simple accounting software you need to manage your business with ease.
- Keep track of your finances in real time so you never miss a beat.
- Manage expenses and invoices online with ease using QuickBooks Desktop or QuickBooks Online Plus.
- Choose from three subscription plans to fit your needs, including QuickBooks Self-Employed (for freelancers) and QuickBooks Pro Plus (for companies).
Review QuickBooks Online
QuickBooks Online is a cloud-based accounting software that can be used by small businesses to manage their finances.
It's available at an affordable monthly fee, but it does have some drawbacks.
QuickBooks Online is a great option for small business owners who are looking to save money by avoiding the costs of hiring an accountant and having to purchase additional software or hardware.
You can also access your data from anywhere in the world with an internet connection and mobile device.
However, QuickBooks Online lacks some of the advanced features that are available in desktop versions of the program, such as inventory management.
which means you'll have to use another accounting program for those functions if necessary.
The mobile app also has limited functionality compared to its desktop counterpart -- it doesn't have features like invoicing or payroll management -- which means you may have to open up multiple programs just so you can do everything that needs doing from one place.
Pros QuickBooks Online
- Signing up with an online service can be a hassle.
- Online services may offer free trials but they usually have limits.
- If you don't need specialized features, you can save money by signing up for a free trial.
- You might consider using another service after your trial period is over, or asking your friends and family if they have used any good services so you know what to avoid.
- For example, Intuit offers different plans to fit different budgets and needs.
- If you are still unsure about which service to choose, visit their website and read the FAQs and reviews on the site.
Cons QuickBooks Online
- If you are only using QuickBooks Online, you may have a bit of a learning curve or have to adjust your work processes a bit.
- The full suite of QuickBooks products is expensive.
- QuickBooks Online doesn't offer payroll functionality for very small businesses.
Xero Accounting Software
Xero is a cloud-based accounting software that lets you manage your business finances.
It's designed to be easy enough for small business owners, freelancers, and even individuals who have never used an accounting software before.
Xero has all the features you need to run your business efficiently, including invoicing, bank reconciliation, payroll, reporting, and more.
Xero's pricing starts at $20 per month for up to 20 customers (with 50MB of data storage) and goes up from there based on the number of customers you have and the amount of storage space you need.
You can get started with Xero today by signing up for a free 30 day trial!
- If you want online accounting software that stays out of the way and lets you get on with your work, Xero is a good choice.
- You can sign up for a free trial and see if Xero has the features you need for your business.
- If you want to keep things simple, Xero is ideal.
- It’s easy to use and has all the features you’d expect from an accounting app, including bank connections.
- For small businesses, Xero is an affordable option.
- With Xero, it’s straightforward to invite external accountants and bookkeepers to look at your accounts.
- As a small business owner, it’s important that you can access your financial data whenever and wherever you need to.
- Xero definitely gets top marks for usability. It’s one of the easiest accounting apps around to use on a daily basis.
- If you are new to accounting apps, or have no experience of using computers for your finances, Xero could be a good choice for you.
A great accounting software for small businesses.
- Easy to use. Xero has a simple interface that makes it easy to learn, even if you're not an accountant or bookkeeper.
- Works well with other apps. If you're using another app for your business management and accounting, Xero will work seamlessly with it so that you can keep everything organized in one place.
- Great customer service. You can get help from customer service 24/7 by phone or email at no extra charge!
- It doesn't offer as many features as some other programs do, so if you need something more complex than the basics, this probably isn't going to work well for you.
Try FreshBooks Now - Easy Invoicing & Accounting
FreshBooks is an easy-to-use accounting software for small businesses. It's the choice for more than 1 million users, and it's available in a full range of apps, desktop and mobile versions.
With FreshBooks, you can send invoices, track time and expenses, and create estimates all in one place. Plus, you can easily connect your bank accounts to get paid faster.
Get started for free today!
- FreshBooks is a cloud-based accounting solution for businesses of all sizes.
- Features include invoicing, expense tracking, time tracking, reporting and estimates.
- FreshBooks is available on Android and iOS smartphones and tablets. It is also available on Mac, Windows and Linux desktop platforms. It can be integrated with several third party payment gateways including PayPal and Authorize.net.
- Clients are able to view and pay bills online using the client portal.
- The user is able to offer clients partial payments on invoices, set automatic payment reminders, keep track of recurring billing cycles as well as accept credit card payments via the software’s native payment gateway or through a third party payment gateway such as PayPal or Authorize.net.
- Users can send professional looking invoices automatically to their clients from the software which include customizable fields such as recipient details, logos, transaction dates and discounts among others information.
- The software supports multiple tax rates for items or services charged per invoice and different currencies and languages for each client/invoice/estimate based on the location of the recipient.
- It is easy to get started with FreshBooks.
- Best for small businesses and independent contractors.
- You can manage your invoices inside the app.
- It is easy to generate reports from within FreshBooks.
- You can track time spent on projects or clients with FreshBooks' time tracking tools.
- You can accept payments from PayPal, Stripe and more without leaving the app.
- You can give staff permission to access your accounts and enter time or expenses for you, if needed.
- FreshBooks has a flooring module in beta that's still getting up to speed.
- When you log in, you are taken directly to the dashboard which includes a summary of your financial situation including a graph showing how much fresh business you've brought in during each month, how much money you've collected, how much money you have left to collect and how much money you've spent on paying bills throughout the month.
- This is an excellent way to easily view a snapshot of your finances at any moment in time so that you can see right away whether there are any problems that need addressing at this point or whether things appear to be going smoothly.
- No mobile apps.
- Interface is dated, and the mobile friendly version is a complete pain.
- Not particularly robust. Lack of integrations.
QuickBooks Self-Employed Easy Accounting Software
When you're running a small business, you need accounting software that is easy to use and reliable.
With QuickBooks Self-Employed, you can be sure that your accounting is done accurately and on time, so you can focus on growing your business.
QuickBooks Self-Employed offers a cloud-based solution for managing your finances.
It's designed for small businesses that don't have full-time employees or a lot of employees who are using the software.
The software provides a way for you to keep track of your customers' payments and expenses as well as customer invoices and bills.
QuickBooks Self-Employed helps you manage your cash flow by showing how much money is coming in and going out of the business at any given time.
It also helps you track tax deductions so that you don't overpay or underpay taxes during tax season.
Review QuickBooks Self-Employed
- Ease of Use: Easy to set up, intuitive to use.
- Automation: Drive is a welcome addition, but it still misses some checks and balances.
- Customer Service and Support: Good support options; the mobile app needs more options.
- Reports and Analytics: The reports are good enough, but missing some flexibility with exporting and sorting.
Pros QuickBooks Self-Employed
- QuickBooks Self-Employed makes managing your taxes and finances super simple, which is why we love it.
- One of QuickBooks Self-Employed's biggest selling points is the way it simplifies your routine tasks, like sending invoices and tracking mileage.
- Self-Employed automatically connects to your bank accounts and tracks income and expenses, which means you don't have to.
- Plus, you'll get a deduction estimate that automatically updates as you continue to use the tool. You can also schedule quarterly tax payments through the program.
- QuickBooks Self-Employed has a clean interface that's easy to navigate. It also has an app so you can manage your business on the go.
Cons QuickBooks Self-Employed
- It automatically imports data from PayPal and Stripe, so you don’t have to manually enter details.
- It lets you track expenses in the field so you can photograph receipts.
- The app integrates with TurboTax Home and Business, which makes tax time a cinch.
- The app runs on Android and iOS systems.
Wave Accounting Software
Wave Accounting is a free, cloud-based accounting software that helps you manage your small business.
You can use Wave Accounting to create invoices and track your expenses, manage your inventory, and keep an eye on your cash flow, all from one simple dashboard.
Wave Accounting is perfect for small businesses with fewer than 10 employees who want an easy way to stay organized without spending a ton of money.
Review Wave helps you to manage and grow your small business by offering a full suite of accounting products, including invoicing, inventory management, and more.
Review Wave offers an online platform with a rating system to help your customers leave product reviews.
The platform also includes a messaging system that allows you to send text messages directly to your customers from within the app.
Review Wave was founded in 2013 in McKinney, Texas by brothers Stephen and Jonathan Walker as a way to help their clients better manage their businesses.
Their goal was to provide an easy-to-use platform that would allow businesses to focus on what they do best—running their companies—while managing their finances with ease.
The company operates out of the United States but has clients around the world.
- Wave offers strong accounting and invoicing features and is easy to use.
- It is a versatile tool that can be used in many different ways, including as a receipt scanner, invoicing service and double entry software.
- The platform provides one of the simplest ways to run a business. In addition, Wave's accounting software is free.
- You can easily organize expenses, create spreadsheets and manage payroll without breaking the budget.
- The user-friendly interface makes it easy to navigate and access all of your business's financial information in one place.
- This accounting software is intuitive and easy to use.
- It offers an impressive set of features for such an affordable price point.
- The free Wave app for iOS and Android lets you scan receipts on your phone.
- The software can help you keep track of unpaid invoices so you can remind customers to pay up on time.
- There are limitations on the number of transactions you can make in the free version compared to the premium version of the software.
- The free version only supports up to 9 employees while the premium plan supports unlimited employees making it more suitable for small businesses only.
How Does Accounting Software Work?
Accounting software is a computerized system that organizes, tracks and reports financial data. It is usually accessed through a cloud-based platform that can be accessed on any device with an internet connection.
Accounting software has many benefits for small businesses, but it also comes with some disadvantages.
Accounting software helps small business owners save time and money when it comes to bookkeeping.
It allows you to easily track your income and expenses, as well as manage payroll and inventory.
You can also use accounting software to produce tax reports and create financial statements.
Accounting software can help you save time by automating repetitive tasks such as invoicing customers or calculating sales taxes. This allows you to focus on running your business instead of spending hours in front of your computer each week doing paperwork!
Accounting software is also very affordable compared to hiring an accountant or bookkeeper full-time. You'll be able to keep track of all your finances without breaking the bank!
How Much Does Accounting Software for Small Business Cost?
Accounting software is an essential part of running a small business.
The best accounting software will help you keep track of your financial information and make sure that you're staying on top of things.
There are lots of different types of accounting software, but you can generally classify them into two main categories:
online and offline. Online accounting software is typically cloud-based and works by connecting your company's bank account or credit card transactions to the software itself.
You can access this from any device with internet access, which makes it easy for you to manage your business from anywhere in the world!
Offline accounting software, on the other hand, is installed directly onto your computer or laptop so that it can be used without having an internet connection available at all times.
This type of accounting system allows for more flexibility since it doesn't rely on having an active connection to work properly (although some features may not work if there isn't any sort of connection present).
Can I access my accounting software anywhere?
- The word cloud on the right shows some common queries that people search for in the world of accounting software.
- You may have one or more of these queries in mind as you read this article.
- There are two kinds of accounting software—those you can only access on a specific computer, and those that you can use anywhere with an internet connection.
- On-premise accounting software has been the traditional way to manage your numbers.
- For a long time, this was the only way to handle your finances.
- On-premise accounting software usually needs to be installed on a server.
- This server will then be able to serve up the software to users connected to it on your network.
- So, back in the day, this meant that you had to buy and install quite a lot of hardware, and get your IT team to help you set everything up and keep it running smoothly.
- This cost and complexity has been part of the appeal of cloud software (which we'll talk about in a moment).
What software do accountants use?
- There are many types of accounting software available on the market.
- Different businesses will need different kinds of accounting software.
- The top accounting software companies include QuickBooks, Xero, Wave, FreshBooks, and Zoho Books.
- Accounting software helps accountants to manage their clients’ books.
- Accounting software reduces the amount of time it takes to complete each task.
- It is important to ask the right questions when you are choosing your accounting software.
- You should consider whether the software has enough features to meet all of your needs.
- Your accounting software should offer a good range of reporting options, such as tax reports.
- Choose a product that helps you to save time by automating tasks like invoicing and payments by bank feed or credit card import.
- The ideal accounting system will integrate with other apps your business uses, such as your email, CRM and online banking.
This article provides an overview of some key points to consider when choosing cloud-based accounting software for your small business.