Small Business Accounting Software
One of the most important parts of managing a small business is being able to manage your accounts. It can be confusing and time-consuming. Therefore, one of the best decisions would be to automate this entire process with software.
Find The Best Accounting Software For Small Businesses
When looking for the best accounting software for your business there are three steps you should keep in mind:
- Identify your needs
- Determine your budget and whether you can qualify for a business loan
- Compare your options
Best Small Business Accounting Software Options
Finding the best accounting software can be difficult. So, we have put together a list of the top 7.
- Zoho Books
QuickBooks Desktop/QuickBooks Online
QuickBooks is regarded as one of the best software options available. QuickBooks Pro is the simplest version with a one-time payment of $399.99. Or QuickBooks Pro Plus is the other option and will require an annual subscription of $299.99. With this version you will receive:
- Automated reports
- Smart search autocomplete
- Bill tracking
- Shipping management system
- Financial management system
- Multiple users
- Sync transactions
- Integration with other QuickBooks apps and third-party tools
On the other hand, QuickBooks Premier will cost you a one-time payment of $649.99. Whereas, Premier Plus requires an annual subscription of $499.99. And you will receive:
- More users
- Track orders
- Inventory center
- Job costing
- Journal entries
With Premier Plus and Pro Plus you will get the same features as their respective basic plan. In addition to which you also receive unlimited customer support, automated data back-up as well as recovery and easy software upgrades.
Why QuickBooks? QuickBooks has a wide range of products. They are simple and easy to use. They can also integrate with other popular apps like Concur, Square etc. QuickBooks provides essential accounting features regardless of what plan you choose.
FreshBooks is a cloud-based accounting software known for its excellent customer service and easy-to-use software. They offer three plans:
- Lite – Best for very small businesses and can handle up to five active clients so it costs $15 per month
- Plus – The most popular plan can handle up to 50 clients and costs $25 per month
- Premium – Costs $500 per month and can hold up to 500 clients
All these versions allow you to:
- Create invoices and job estimates
- Track and log business expenses
- Accept credit cards and ACH payments online
- Automatically import transactions from your business bank account
- Create project budgets
- Generate business reports
- Integrate with third-party tools
- Sync your FreshBooks account across multiple devices
And if you choose FreshBooks Plus or Premium plan you’ll receive additional tools like invoicing, reporting and more.
Why FreshBooks? FreshBooks is a powerful accounting tool with many amazing features. It has no limit on anything except the number of clients. This means you have significant flexibility in the use of the software. It is a great option for business owners that want an easy-to-use interface and need mobility.
If you're looking for a simple to use software but with more multifaceted features then maybe you should try Xero:
- Basic Plan – Costs $11 per month and can hold five invoices qs quotes, five bills, and 20 bank transactions
- Second plan – Costs $32 and has no limits on anything
- Last plan – Costs $62 and can handle multiple currencies and manage expenses and projects
Xero’s most notable features are:
- Automated and intuitive invoicing software
- Inventory tracking and stock control
- Bank reconciliations
- Mobile accessibility
- Bill payment management
- Expense records
- Create and email purchase orders
- Integration with over 700 third-party tools
- Partnership with Gusto (additional cost)
- Allows unlimited users access (no additional cost)
Why Xero? Xero’s accounting software strength is that it is a balance between power and cost. They offer a wide range of features and an intuitive platform for a reasonable price.
There are very few free and practical options out there for a good accounting software but Wave is one of them.
Wave offers strong accounting and invoice tools such as:
- Income and expense tracking
- Bank and credit card connections
- Unlimited invoicing and receipt scanning
- Bill and invoice reminders
- Journal transactions
- Dashboards for cash balances and invoice status
- Customizable sales taxes and expense/income categories
And while you can use Wave’s business accounting software for free you can also choose to expand with their paid add-ons, payments and payroll.
Why Wave? For those looking for a free solution Wave is the way to go. Their core capabilities are a great option for smaller businesses. It is a free and simple software with a significant amount of functions available.
Zoho Books is a great option for small businesses on a budget and for those who are looking for a more flexible option. They offer 4 plans:
- Free – Only available for businesses with annual revenue of less than $50,000
- Standard – It costs $20 per month and allows three users with additional features such as project expense tracking, bulk updates and more
- Professional – Costs $50 per month and accommodates five users plus further allows 10 automated workflows as well as additional features like purchase orders and multi-currency handling
- Premium – Costs $70 per month and includes all of the features of the previous plans plus allows 10 users furthermore they also offer advanced functions for budgeting, validation rules and more
Their other features which are available for all plans include:
- Client and item management
- Client portal
- Online payments
- Bank reconciliation
- Chart of accounts
- Manage contractors
- Integration with other Zoho apps
- Email customer support
Why Zoho Books? In addition to its accounting and bookkeeping features Zoho Books is one of the most affordable software. It is one of the best solutions for small businesses.
Sage is a cloud-based software with two plans including Accounting and Accounting Start. In addition, you can choose from two cloud-based systems. As well as three more traditional options with Sage 50cloud. It is a desktop business accounting software with remote access.
The Accounting Start plan costs $10 per month and you will be able to:
- Create and send invoices
- Connect your business bank account
- Track overdue balances
Whilst the Accounting Plan is $25 per month with additional features like:
- Real-time reports
- Generate quotes and estimates
- Record purchase invoices
- View cash flow statements
Why Sage? With different plans and varying capabilities Sage can accommodate businesses of all sizes. It is one of the best options in terms of scalability and it will allow you to expand your software as your business grows.
Bonsai is great for self-employed entrepreneurs. They have two plans when paid annually:
- Bonsai Plus costs $16/month plus you receive:
- Unlimited projects
- Advanced reporting
- Accounting module
- Chat support
- Multiple currencies
- Client and project management
- Auto and weekly reminders
- Bonsai Premium costs $24/month and in addition to Plus features you will receive;
- More users
- White label accounting
- Subcontracting accounting, and more
- For each additional user they charge $9/month
Why Bonsai? Bonsai is the top business accounting software for self-employed entrepreneurs. Bonsai is the best freelancer accounting software available in the market at an affordable cost.
Online Bookkeeping Software vs. Business Accounting Software
There is a subtle difference between bookkeeping and accounting.
Bookkeeping generally concerns the day to day of being able to manage your finances. Including recording transactions, reconciling bank statements etc.
On the other hand, accounting deals with greater insight and supervision. Which means taking bookkeeping records and using them for strategic financial planning and growth.
The Best Small Business Accounting Software: The Bottom Line
There are many factors to consider when it comes to choosing the best small business accounting software for your needs. As we’ve seen each solution has unique features, plans, pricing and each can accommodate different kinds of small businesses. Hence, choosing an accounting software will completely depend on your needs and budget.