Did you know over 7 million people worldwide use Intuit QuickBooks, the top choice among financial experts? Handling a business’s finances can be tough, especially for small business owners who do it all. But, the right accounting app can help any business owner become smarter and more informed.
For over 20 years, PCMag has tested and rated accounting software for small businesses. They look for the best financial management tools and bookkeeping applications based on ease, functionality, and cost. Their review included 50 hours of testing across 18 accounting software providers and surveys from 200 finance professionals to see what they prefer.
Key Takeaways
- Accounting software can simplify financial management and improve business decision-making.
- PCMag recommends FreshBooks for very small businesses and QuickBooks Online for small to medium-sized businesses.
- Pricing for accounting apps varies widely, from $0 to $275 per month, depending on the provider and plan.
- Expense management and payroll processing are considered the most important features by finance professionals.
- QuickBooks is the most widely used accounting software, with nearly 80% of financial experts using it in the past year.
Introduction to Accounting Apps
Today, accounting apps are key for both small businesses and individuals. They offer more than just basic budget tracking. These tools help you digitize finances and give insights for better decisions.
Why You Need an Accounting App
Accounting apps help businesses of all sizes, from solo entrepreneurs to growing companies. They make managing money easier, automate tasks, and give a full view of your finances. With an accounting app, you can streamline accounting, track expenses, manage invoicing, get ready for tax season, and handle payroll and inventory management.
Benefits of Using an Accounting App
- Improved financial visibility and control
- Automated expense tracking and categorization
- Streamlined invoicing and billing processes
- Simplified tax preparation and compliance
- Efficient payroll management
- Comprehensive financial reporting and forecasting
- Enhanced inventory management and control
| Accounting App Feature | Benefit |
|---|---|
| Expense Tracking | Automatically categorize and organize your business expenses, providing a clear picture of where your money is going. |
| Invoicing | Create professional-looking invoices, track payments, and manage outstanding balances with ease. |
| Tax Preparation | Streamline your tax filing process by organizing your financial records and generating the necessary reports. |
| Payroll | Automate employee payroll, manage tax withholdings, and ensure timely and accurate payments. |
| Inventory Management | Keep track of your product stock, monitor sales, and generate reports to make informed business decisions. |
“Accounting apps have revolutionized the way I manage my small business finances. The automated features and real-time insights have been a game-changer for streamlining my accounting processes.”
Top Accounting Apps for Small Businesses
Managing your small business finances is easier with the right accounting app. FreshBooks and Intuit QuickBooks Online are top choices. They have strong features and easy-to-use interfaces for small businesses.
FreshBooks: Best for Very Small Businesses
FreshBooks is a top pick for small businesses. It has a great user experience and offers full-featured accounting. It’s easy for beginners but also has advanced tools like project tracking and detailed reports.
It’s perfect for service-based businesses with a few employees.
Intuit QuickBooks Online: Best for SMBs
Intuit QuickBooks Online has been a leader in small business accounting for years. It combines powerful accounting with a user-friendly interface. QuickBooks Online is customizable with many versions and add-on apps.
It also has excellent mobile access. It suits a wide range of businesses, from beginners to experts.
https://www.youtube.com/watch?v=CWbHLoNvohw
“FreshBooks is intuitive enough for novice bookkeepers to learn, but also supports advanced tools like projects, proposals, mileage and time tracking, and robust reporting.”
Wave: Best for Invoicing
For small businesses, Wave is a top pick for a free accounting app with great invoicing tools. It’s a web-based solution that makes managing finances easier, focusing on making invoicing simpler.
Wave stands out by helping customers pay invoices faster. In fact, customers pay invoices 3 times faster on average with Wave’s online payment feature. Plus, you don’t need to install any software; just an internet connection and a browser.
Wave has plans for different small businesses. The Starter Plan is perfect for solo entrepreneurs and very small businesses, offering the basics for bookkeeping and invoicing. It also ensures your data is safe with 256-bit SSL encryption. You can cancel your subscription anytime, with the change taking effect after the billing period ends.
| Feature | Wave | QuickBooks Online | Xero |
|---|---|---|---|
| Pricing | Free | $15 per month (first 3 months), then $30 per month | $15 per month (75% off for 3 months) |
| Free Trial | N/A | N/A | 30 days |
| Unlimited Users | Yes | No | Yes |
| Credit Card Processing Fee | 2.9% + $0.30 per transaction | 2.9% + $0.30 per transaction | 2.9% + $0.30 per transaction |
Wave is known for its easy-to-use design. Users can customize invoices, set up recurring payments, and automate credit card payments. This makes invoicing easy. You can accept payments online, in person, or over the phone, giving your business and customers flexibility.
Although Wave doesn’t have all the features, like project management and full mobile apps, it’s great for micro-businesses, freelancers, and budget-conscious service companies. Its free plan and affordable paid option make it a budget-friendly choice for small businesses.
Accounting Apps for Growing Businesses
As your business grows, you’ll need a more advanced accounting tool. Zoho Books and Sage 50 Accounting are great for this. They meet the needs of expanding companies.
Zoho Books: Best for Larger Small Businesses
Zoho Books is part of Zoho’s business software suite. It’s easy to use and has lots of features for sales, purchases, tracking projects, and inventory management. It’s perfect for businesses using other Zoho tools or for those looking for more customization and functionality.
Sage 50 Accounting: Best for Inventory Tracking
Sage 50 Accounting is a top choice for desktop use. It’s the most detailed accounting program PCMag has reviewed. It offers great inventory management tools, detailed records, and lots of reports. Even though it’s old-fashioned, lacks a mobile app, and needs to be installed, it’s great for complex inventory management needs.
| Feature | Zoho Books | Sage 50 Accounting |
|---|---|---|
| Pricing | Starts at $15/month | Starts at $595/year |
| Free Trial | 14 days | No free trial |
| Inventory Management | Robust features | Advanced tools |
| Integrations | Integrates with Shopify | No Shopify integration |
| Mobile App | Yes | No |
Zoho Books and Sage 50 Accounting are both great for growing businesses. They have strong points in inventory management and customization. The best choice depends on what your business needs.
Xero: Best for Multi-User Small Businesses
For small businesses needing teamwork, the Xero accounting app is a top pick. It has a clean design and offers many features. These include managing inventory, tracking time, and detailed reports.
Xero shines with its collaborative features. It lets teams work together smoothly. Users can share access and set roles for team members. This makes work flow better, increases openness, and keeps everyone in the loop on finances.
- Intuitive cloud-based accounting platform
- Extensive multi-user support and collaborative tools
- Comprehensive inventory management and time tracking functions
- Sophisticated reporting capabilities to enhance financial decision-making
Xero’s cloud-based accounting lets small businesses access data anytime, anywhere. It also backs up data automatically. This makes it great for growing companies needing a flexible, team-friendly accounting tool.
“Xero has been a game-changer for our small business. The collaborative features and multi-user support have streamlined our financial workflows and enabled our team to work together seamlessly.”
Xero stands out with its easy-to-use design, strong features, and team-friendly tools. It’s a top choice for small businesses looking for a full-featured accounting app to handle their money well.
Affordable Accounting Solutions
Managing your finances as a small business owner or solo entrepreneur can feel overwhelming. But, there are affordable accounting solutions that can make things easier. Patriot Software Accounting and TrulySmall Accounting are two popular choices.
Patriot Software Accounting: Most Affordable
Patriot Software Accounting is a budget-friendly option perfect for small businesses and freelancers. It doesn’t have all the fancy features of pricier platforms. But, it still offers key accounting tools like invoicing, expense tracking, and basic reporting at a lower cost. This makes it easy to manage your small business budgeting and bookkeeping without spending a lot.
TrulySmall Accounting: Best for Solo Entrepreneurs
TrulySmall Accounting is a simple accounting app for solo entrepreneurs and freelancers. It has a clean interface for handling your income, expenses, and invoicing. It’s great for self-employed people who want a straightforward way to manage their finances.
Patriot Software Accounting and TrulySmall Accounting are low-cost accounting options. They can help you manage your finances better and focus on growing your business. Whether you’re a small business owner or a solo entrepreneur, these affordable solutions offer the tools and support you need.
The best accounting app
Finding the right top accounting app is key for small business finance. There are many options out there, each suited for different needs. Whether you’re a solo entrepreneur or a growing company, the best app depends on your size, financial needs, and budget.
This article reviews top accounting apps that can help with small business finance and financial management software. You might need tools for invoicing, tracking expenses, managing projects, or detailed financial reports. Each app offers something unique to improve your financial management and decision-making.
“Finding the right accounting app can be a game-changer for small businesses, helping them stay on top of their finances and make informed decisions.” – John Doe, Financial Advisor
Here are some tips to pick the best accounting app for your business:
- Look for an app with an easy-to-use interface that simplifies your financial tasks.
- Make sure the app works well with your other business tools, like your point-of-sale system or online store.
- Choose an app with strong financial reporting and analytics for better insights into your business.
- Pick an app that fits your budget now and can grow with your business.
By considering your needs and exploring the many accounting apps out there, you can find the perfect solution for your small business. This will help you achieve greater success.
Features to Look for in an Accounting App
Essential Features
When picking an accounting app, look for key features like expense tracking, invoicing, payroll management, and financial reporting. These are vital for small businesses to keep accurate records, get paid on time, and make smart financial decisions.
Expense tracking lets you log and categorize business expenses easily. This gives you a clear view of where your money goes. Invoicing tools help you create and send professional invoices, track payments, and get paid quicker. Payroll management makes paying employees and handling taxes easier. And financial reporting gives you the insights to understand your business’s financial health and performance.
Advanced Features
Some accounting apps also have advanced features for more complex financial needs. These include inventory management, project tracking, multi-user collaboration, and integrations with other business tools. These features are great for growing businesses with complex financial needs.
- Inventory Management helps you track your products, set reorder thresholds, and see which items sell the most.
- Project Tracking lets you keep an eye on the financial success of each project or client.
- Multi-User Collaboration lets your team work together on financial data, making things more transparent and efficient.
- Integrations with tools like CRM software, e-commerce platforms, and payroll services can make your accounting smoother and give you a better view of your business.
By looking at both basic and advanced features, you can find an accounting app that fits your business’s needs now and in the future. This helps you streamline your finances and grow your business.
https://www.youtube.com/watch?v=0qKdYwsunW4
Choosing the Right Accounting App for Your Business
When picking the best accounting app for your small business, think about a few key things. Consider the size and complexity of your business, your financial needs, your budget, and how easy the app is to use. These factors are all important to look at.
The size of your business affects what accounting app you need. Small businesses might want simple tools for invoicing, tracking expenses, and reporting finances. But, bigger small businesses might need more features like managing inventory, giving access to multiple users, and detailed reports.
Also, think about the financial complexity of your business. If your business has complex transactions, like in ecommerce or services, you might need an app with special features. These could include handling credit card payments, managing payroll, and reports for your industry.
Your budget is also key in choosing an app. Accounting software can cost a lot or a little, depending on what you need. Make sure the app’s price and features match your budget and financial needs.
FAQ
What are the benefits of using an accounting app?
Accounting apps make managing money easier and automate tasks. They help you track expenses, send invoices, and manage payroll. You also get financial reports to help you make smart business choices.
What are the top accounting apps for small businesses?
For small businesses, top picks include FreshBooks, Intuit QuickBooks Online, Wave, Zoho Books, Sage 50 Accounting, and Xero. Each app has features that cater to different business needs.
How do I choose the best accounting app for my small business?
Think about your business size, financial needs, budget, and how easy the app is to use. The best app for you will match your unique requirements.
What are the essential features to look for in an accounting app?
Key features to look for are expense tracking, invoicing, payroll management, and financial reporting. These help small businesses keep accurate records, get paid on time, and make smart financial decisions.
What are some advanced features that accounting apps can offer?
Advanced features include inventory management, project tracking, and multi-user collaboration. These are great for growing businesses with complex financial needs.
Is there a free accounting app option for small businesses?
Yes, Wave is a free service great for small businesses and freelancers. It’s good at invoicing and managing transactions, and it can grow with your business.
What accounting app is best for businesses with complex inventory needs?
Sage 50 Accounting is ideal for businesses with complex inventory. It’s designed for desktop use and offers detailed inventory tools, forms, and reports.
Which accounting app is best for collaborative work among multiple users?
Xero is great for teamwork. It’s cloud-based and has a clean interface. It supports inventory management, time tracking, and reporting well.
What is the most affordable accounting app option for small businesses?
Patriot Software Accounting is very affordable. It’s perfect for small businesses and solo entrepreneurs on a budget. It offers key accounting features at a low cost.
What accounting app is best suited for sole proprietors and freelancers?
TrulySmall Accounting is made for solo entrepreneurs and freelancers. It has a simple interface for managing money, sending invoices, and tracking expenses.