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Today, the best accounting software for small businesses, provides an all-in-one platform that manages and streamlines your finance operations. Such software packages help you keep track Of your business expenses, profits, and losses, giving you a clear financial snapshot and aiding in tax preparation. The software market is vast, with options ranging from standalone invoicing and tax software to comprehensive accounting platforms.
This guide will delve into the top-notch accounting software available in the market, evaluating its features, pricing, and suitability for small businesses. We’ll cover all the essentials you need to know to select the most suitable software for your business needs.
Software
Price
Best For
Features
$7.50 to $60 for essential to Advanced packages
Overall Accounting
- Bank Feeds.
- Cloud Accounting.
- Invoicing.
- Project Profitability.
- Accounting Reports.
- Inventory Management.
Packages start from $10 a month.
Multiple Users
- Cash Flow Management
- Sales Optimization
- Payroll
- Payment Acceptance and Invoicing
- Inventory Management
Has a free package; paid packages with more advanced features start at $11 monthly.
Small Businesses
- Invoicing and Billing Management
- Seamless Integration with Bank Accounts
- Enhanced Expense Tracking
- User-Friendly Interface
The highest price point: $99 per user monthly and a yearly $999 license fee
Automation
- Regulatory compliance
- Automation
- Business analytics and insights
- Cloud access
Starting at $20 monthly
Customization
- Invoicing
- Payroll
- Mobile app
- Expense and mileage tracking
- Recurring invoices
From $15 to $78
Micro Business Owners
- Invoicing
- Bank reconciliation
- Expense tracking
- Multi-currency support
From $17 monthly
Service-Based Businesses
- Unlimited invoicing
- Expense tracking
- Time tracking
- Financial reporting
- Support for client retainers, ideal for service-based businesses
Initial user: $399
Subsequent users: $249 each
Pack of five users: $999 (discounted rate)
Comprehensive Accounting Tools
- Tax Management
- Contact Database
- Invoicing
- Inventory Management
- Bank Reconciliation
- Purchase Orders
From $20 per month
User-Friendliness
- Ability to track income and expenses
- Creation and sending of invoices
- Generation of various financial reports
- Unique feature to mark each transaction as business or personal, beneficial for freelancers
From $20 monthly or $216 annually
Sole Proprietorship
- Invoicing
- Expense tracking
- Financial reporting
- Tax preparation.
- It also offers a mileage tracker and the ability to import credit card statements.
What Does Accounting Software Do?
Accounting software is a specialized computer program that assists businesses in recording and reporting financial transactions. Such software offers comprehensive business tools, including invoicing, expense tracking, time tracking, and tax filing. They also aid in managing payroll, inventory, project tracking, and more. Integrating your financial accounts with your accounting software allows you to automate many of your routine accounting tasks, reducing manual data entry and errors.
How Did We Choose the Best Accounting Software for Small Businesses?
We evaluated various accounting software options based on cost, ease of use, features, scalability, and reputation. We considered the software’s ability to cater to the unique needs of small businesses, such as ease of use, affordability, and the capacity to grow with the company. We also examined user reviews and expert opinions to ensure the software delivers on its promises.
What Do You Look for In Accounting Software for Your Small Business?
When choosing accounting software for your small business, consider the following factors:
- Ease of Use:
The software should have an intuitive interface that allows you to navigate quickly and perform tasks efficiently.
- Cost:
The pricing should be affordable and offer good value, considering the features provided.
- Scalability:
As your business grows, your accounting needs will also expand. The software should be able to accommodate this growth.
- Features:
Look for essential features such as invoicing, expense tracking, financial reporting, and tax preparation.
- Integration:
The software should integrate seamlessly with other tools you use in your business, like payment processors or payroll systems.
- Support:
Reliable customer support is crucial. Look for software that provides timely and helpful customer service.
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#1 QuickBooks Online Best Overall Accounting Software
Pricing:
- Starts at $30 per month
Specifications:
- Cloud-based
- Mobile app available
QuickBooks Online from Intuit is popular among small businesses and financial professionals due to its comprehensive features and user-friendly interface. It offers a robust accounting system that’s easy to learn and use, making it suitable for novices and experienced bookkeepers.
Features:
- Invoicing
- Expense tracking
- Accepting payments
- Managing cash flow
- Tracking sales and sales tax
- Advanced analytics and insights
- Tax filing
Why Buy:
- Comprehensive accounting software
- User-friendly interface
- Offers phone support
- Access via mobile app
- Integrates with other software and apps
Why not Buy:
- Payroll features cost extra money
- Pricing doubles after the intro period
- It’s easy to create duplicate transactions.
- Lacks e-commerce features
#2 Sage Best for Multiple Users
Pricing:
- Starts at $10 per month
Specifications:
- Cloud-based
- Mobile app available
Sage Business Cloud Accounting is perfect for micro-businesses due to its various features, integrations, and affordability. The software offers basic features like invoice creation and automatic bank reconciliation, making it easy for non-accountants to manage their business finances.
Features:
- Invoicing
- Track accounts receivable
- Automatic bank reconciliation
- Customizable dashboard
- Cloud-based accounting
Why Buy:
- A variety of available integrations
- Automatic bank reconciliation
- Supports multiple currencies
Why not Buy:
- Payroll not included
- Limited phone support hours
#3 Wave Best Free Software
Pricing:
Free
Specifications:
- Cloud-based
- mobile app available
Wave is a free accounting software suitable for small businesses that don’t need to run payroll. It allows service-based businesses to send simple invoices and pull reports to prepare a yearly tax return.
Features:
- Invoicing
- Expense tracking
- Financial reporting
- Receipt scanning
- Cloud-based accounting
Why Buy:
- Most features are free.
- Good dashboard
- Brilliant selection of features for tiny businesses
- Works for businesses using multiple currencies
Why not Buy:
- Payroll costs extra
- The free plan has a maximum of 1,000 invoices per year.
#4 Oracle NetSuite Best for Automation
Pricing:
- Custom pricing
Specifications:
- Cloud-based
- Mobile app available
NetSuite’s accounting software is among the best for automation, saving time, and reducing stress. From creating journal entries to statement reconciliation, this software offers tools for businesses requiring financial compliance, such as GAAP, ASC 606, and SOX.
Features:
- Regulatory compliance
- Automation
- Business analytics and insights
- Cloud access
Why Buy:
- A variety of compliance features
- Automatic reconciliation and journal entries
- Access your account from anywhere.
Why not Buy:
- Pricing isn’t transparent.
- Involves a learning curve
#5 Zoho Books Best for Customization
Pricing:
- Free plan available
- Paid plans start at $15 per month
Specifications:
- Cloud-based
- Mobile app available
Offering a free plan and low-cost paid plans, Zoho Books is suitable for small businesses that are already using Zoho products and services. It integrates well with other Zoho apps, making it a good fit for service-based companies.
Features:
- Invoicing
- Payroll
- Mobile app
- Expense and mileage tracking
- Recurring invoices
Why Buy:
- Free forever plan available
- Low-cost paid plans start at $15 per month.
- Accept payments offline and online.
- Integrates with other Zoho apps.
Why not Buy:
- Payroll costs extra
- The free plan has a maximum of 1,000 invoices per year.
#6 Xero Best for Mico Business Owners
Pricing
- Xero offers a range of monthly pricing plans, starting from $15.
- However, higher-tier plans may be necessary to access more advanced features.
Specifications
- Xero is a cloud-based solution
- Has a mobile application available for iOS and Android devices.
Founded in 2006, Xero is a robust accounting software solution with a global presence. It offers comprehensive features tailored to meet the needs of small to medium-sized businesses. It is ideal for micro-business owners who require a scalable accounting solution as their business grows.
Features
- Invoicing
- Bank reconciliation
- Expense tracking
- Project management
- Multi-currency support
- Innovative expense tracking feature for monitoring expenditures
Why Buy
- User-friendly interface
- Robust feature set
- Scalability for small businesses
- Seamless integration with third-party applications
- Enhanced functionality
Why not Buy
- The learning curve for advanced features
- Potential escalation of costs with higher-tier plans for advanced features
#7 FreshBooks Best for Service-Based Businesses
Pricing
- Packages start from $17 per month, with tiered packages with different features, allowing businesses to choose a plan that best fits their needs.
Specifications
- Cloud-based software
- The Mobile app available is iOS and Android.
FreshBooks is a cloud-based accounting software designed to focus on simplicity and user-friendliness. It offers an array of features suitable for service-based businesses.
Features
- Unlimited invoicing
- Expense tracking
- Time tracking
- Project management
- Financial reporting
- Support for client retainers, ideal for service-based businesses
Why Buy
- User-friendly interface
- Comprehensive feature set
- Competitive pricing.
- Top choice for small businesses
- Excellent customer support
Why not Buy
- Range of features
- It could be better for businesses needing inventory management or payroll features.
- Inventory management and payroll are available only as add-ons at an extra cost
#8 Accounting Edge Pro Best for Comprehensive Accounting Tools
Pricing
- Free Trial
- Paid Plans
Specifications
- Primarily, a desktop-based solution
- Optional cloud
- Provides app integration.
Accounting Edge Pro is a software solution designed to provide a comprehensive suite of accounting tools for small businesses. It offers a blend of desktop-based and cloud functionality. It is ideal for companies seeking a detailed accounting system with optional cloud flexibility.
Features
- Tax Management
- Contact Database
- Invoicing
- Inventory Management
- Bank Reconciliation
- Purchase Orders
- Multi-currency Transactions
- Payroll Management
- Advanced Reporting
Why Buy
- Comprehensive feature set
- Optional cloud flexibility
- Top choice for small businesses
- Attention to detail
- Cross-platform compatibility
Why not Buy
- Heavy reliance on desktops
- Limited support for remote needs
- Some cloud-based features may involve additional costs
#9 Patriot Accounting Software Best for User-Friendliness
Pricing
- Packages start from $20 per month.
Specifications
- Cloud-Based Solution
Patriot Software offers a user-friendly accounting solution for small business owners. It includes a range of features to simplify accounting tasks. It is a good choice for small businesses that require a straightforward, efficient accounting solution.
Features
- Ability to track income and expenses
- Creation and sending of invoices
- Generation of various financial reports
- Unique feature to mark each transaction as business or personal, beneficial for freelancers
Why Buy
- User-friendly interface
- Robust feature set including payroll, Tax Fiilling, and Analytics and Reporting
- Competitive pricing.
Why not Buy
- Lacks advanced features like time tracking and inventory management.
- The mobile app has certain limitations.
#10 TrulySmallAccounting Best for Sole Proprietorship
Pricing:
- Packages start at $20 monthly.
Specifications:
- Cloud-Based
TrulySmallAccounting is a software solution designed for tiny businesses. It offers a streamlined approach to accounting, making it efficient for smaller operations to manage their finances. It is perfect for sole proprietors and companies with one or two employees.
Features
- Invoicing
- Expense tracking
- Financial reporting
- Tax preparation.
- It also offers a mileage tracker and the ability to import credit card statements.
Why Buy
- User-friendly
- Affordable
- Essential Feature Set
Why not Buy
- It could be better for more complex businesses.
- No time tracking
- No inventory management.
Here are two solutions that haven’t reached our top 10 but are worth mentioning.
Kashoo Best for Freelancers
Pricing:
- Kashoo offers a range of monthly pricing plans, starting at $20.
Specifications:
- Cloud-based Solution
Kashoo is a cloud-based accounting software for small business owners. It offers a range of features to streamline accounting tasks. It is best for freelancers and small businesses that require a straightforward, efficient accounting solution.
Features
- Invoicing
- Expense tracking
- Financial reporting
- Tax preparation.
- It also offers a mileage tracker and the ability to import credit card statements.
Why Buy
- User-friendly
- Affordable
- Ideal for freelancers and tiny businesses
Why not Buy
- Not suitable for too complex businesses
- No time tracking
- No inventory management
KashFlow Best for Simplicity and Efficiency
Pricing:
- Pricing plans start at $20 per month
Specifications:
- Cloud-based solution
KashFlow is a cloud-based accounting software solution designed for small businesses. It offers a range of features, including invoicing, expense tracking, and financial reporting.
Features:
- Invoicing
- Expense tracking
- Financial reporting
- Tax Preparation
- Mileage Tracker
Why Buy:
- User-friendliness
- Affordability
Why not Buy:
- Not for overly complex business
- No time tracking
- No inventory management
Bottom Line
Choosing the right accounting software for your small business can significantly improve operations. Automating and streamlining financial tasks can save time, reduce errors, and gain insight into your business’s financial status. Whether you’re a freelancer, a growing company, or a small business with complex accounting needs, an accounting software solution is perfect for you.
