Published November 27, 2021 by WC Team

The Best Business Accounting Software For 2021

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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:

  1. Identify your needs
  2. Determine your budget and whether you can qualify for a business loan
  3. 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.

  1. QuickBooks
  2. FreshBooks
  3. Xero
  4. Wave
  5. Zoho Books
  6. Sage
  7. Bonsai

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:

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:

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

FreshBooks is a cloud-based accounting software known for its excellent customer service and easy-to-use software. They offer three plans:

All these versions allow you to:

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.

Xero

If you're looking for a simple to use software but with more multifaceted features then maybe you should try Xero:

Xero’s most notable features are:

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.

Wave

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:

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

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:

Their other features which are available for all plans include:

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

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:

Whilst the Accounting Plan is $25 per month with additional features like:

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

Bonsai is great for self-employed entrepreneurs. They have two plans when paid annually:

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.

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