Did you know PCMag has been testing accounting software for over 20 years? They looked at 88 platforms and reviewed 31 deeply. They found the best options for businesses of all sizes. From top picks for small businesses to solutions for startups and freelancers, this guide is essential for business owners.
Key Takeaways
- PCMag found the 6 best accounting software platforms after thorough research and analysis.
- QuickBooks Online and FreshBooks are top choices for small and very small businesses, respectively.
- Pricing ranges from $15 per month for Xero to $60 per month for the premium FreshBooks plan.
- Many solutions offer free trials and discounts to help businesses find the right fit.
- Accounting software provides key features like invoicing, expense tracking, payroll management, and inventory management.
What Is Accounting Software for Small Businesses?
Accounting software for small businesses makes managing money easier and helps with important tasks. It has features like double-entry accounting and automatic bank imports. You also get automatic transaction reconciliation and standard reports. Plus, there’s invoicing, inventory management, project tracking, mobile access, and integration with other business tools.
This software helps entrepreneurs manage their money well. They can track income and expenses, send invoices, and make reports for taxes and planning. Using small business accounting software is key to keeping finances in order.
The accounting software features for small businesses include:
- Double-entry accounting
- Automatic bank imports
- Automatic transaction reconciliation
- Standard and customizable accounting reports
- Invoicing
- Inventory management
- Project tracking
- Mobile access
- Integration with other business software
These tools help small business owners manage their finances better. They get a clear view of their financial health. This helps them make smart choices to grow their business.
| Accounting Software | Monthly Pricing |
|---|---|
| OneUp | $9 |
| Intuit QuickBooks | $15 (for the first three months, then $30) |
| Xero | $15 |
| Zoho Books | $15 |
| ZarMoney | $15 |
| FreshBooks | $19 for up to five clients |
| AccountEdge | $20 |
| Neat | $200 per year |
Choosing the right small business accounting software is crucial. It helps entrepreneurs manage their finances well. They get valuable insights and make smart decisions to grow their business.
Best Overall Accounting Software: QuickBooks Online
For small businesses looking for a top cloud-based accounting solution, QuickBooks Online is a great choice. It has a lot of features and can grow with your business. This makes it a top pick in the small business accounting software market.
Key Features
QuickBooks Online has many features for small businesses. It includes basic accounting, powerful reporting, and tracking tools. You also get invoicing, inventory management, and a mobile app. Plus, it connects with over 750 other business tools through app integrations.
Pricing
QuickBooks Online has four pricing plans, starting at $30 a month for the Simple Start plan. You can try it free for 30 days. And, you can get a 50% discount on the first three months if you skip the trial.
Pros and Cons
- Pros:
- Easy sharing of information with accountants
- Comprehensive reporting and features
- Robust integration capabilities with over 750 apps
- Cons:
- Lack of industry-specific features
- Limited account users per plan
| Statistic | Value |
|---|---|
| 88% of customers say QuickBooks helps their business be more successful | 88% |
| Invoices are paid online four times faster when using QuickBooks | 4x faster |
| QuickBooks Live Tax provides expert tax help for seamless transition from books to filing taxes | Expert tax help |
| Banking with QuickBooks offers a 5.00% APY for savings envelopes | 5.00% APY |
QuickBooks Online is a strong and flexible cloud-based accounting software for small businesses. It has a wide range of features, easy integrations, and good prices. It’s a top choice for those needing a dependable and easy-to-use accounting solution.
Best Simple Accounting Software: Xero
For small businesses looking for an easy yet effective accounting solution, Xero is a great choice. It’s a cloud-based small business accounting software. Xero has standard accounting features, great reporting, a customizable dashboard, and a strong mobile app.
Key Features
- Unlimited user accounts on a single plan, ideal for businesses needing multiple users
- Seamless bank account synchronization for real-time transaction tracking
- Support for multiple currencies, making it suitable for international operations
- Comprehensive reporting options, including profit and loss statements, balance sheets, and cash flow reports
- Intuitive dashboard with customizable widgets for at-a-glance business insights
- Mobile app for on-the-go accounting tasks and remote access
Pricing
Xero’s pricing is flexible for businesses of all sizes. The Early plan starts at $15 per month. The Growing and Established plans are $42 and $78 per month, respectively. Higher plans have more features and support for growing small businesses.
“Xero’s intuitive interface and seamless integration with our banking and payroll systems have streamlined our accounting processes, allowing us to focus more on growing our cloud-based business.”
– Sarah, Small Business Owner
Best Startup Accounting Software: Zoho Books
Zoho Books is a top choice for startups and small businesses. It’s a cloud-based accounting software that makes managing finances easy. It’s part of the Zoho business software family, making it simple to start using.
Zoho Books lets you send quotes to clients easily. This helps with clear communication and setting clear expectations. It also helps you keep track of many projects and generate reports for each one.
Creating professional invoices is easy with Zoho Books. You can set up reminders, track payments, and handle recurring invoices. It also connects with payment gateways for safe online payments.
Tracking expenses and managing bills is straightforward with Zoho Books. It gives you insights into your spending and who you owe money to. The Accountant module makes managing accounts and protecting transactions easy.
You can customize documents like quotes, invoices, and bills to match your brand. Zoho Books also makes reconciling bank accounts quick by linking with banks and sorting transactions automatically.
Generating reports, like profit and loss statements, is easy. These reports help you manage cash flow and can help you get funding for your startup. Customers love Zoho Books for its easy setup, time-saving features, and simple design.
Zoho Books has a mobile app for Android and iOS. This means you can manage your accounting anywhere. Its wide range of features and good prices make it a top pick for startup accounting software and cloud-based accounting solutions.
Best Accounting Software for Freelancers: FreshBooks
FreshBooks is a great choice for freelancers who need an easy-to-use accounting tool. It’s made with freelancers in mind, offering features that make managing money simple.
Key Features
FreshBooks has a powerful invoicing system. Freelancers can make professional invoices and set reminders for late payments. Clients can even pay through the platform. It also has tools for tracking time, managing expenses, and detailed reports to keep finances in check.
Pricing
FreshBooks has four plans, priced from $19 to $60 a month. The main difference is how many clients you can bill. All plans let you track time unlimitedly, making it a good deal for freelancers of all sizes.
Pros and Cons
- User-friendly interface
- Advanced invoicing capabilities
- Affordable pricing options
- Limited reporting features in the mobile app
- Additional fees for extra users
FreshBooks is a great pick for freelancers looking for dependable accounting software. It’s easy to use, has strong invoicing tools, and offers flexible pricing. This makes it a top choice in the freelance accounting software market.
Best Desktop Accounting Software: Sage 50 Accounting
Sage 50 Accounting used to be called Peachtree Accounting. It’s a top choice for small businesses. It has many tools for managing inventory, detailed records, an easy-to-use dashboard, and lots of customizable reports.
Key Features
Sage 50 Accounting has lots of features for businesses with lots of inventory:
- Enhanced assembly capabilities for managing product manufacturing and distribution
- Order processing using vendor part numbers for streamlined inventory tracking
- Retainage management for tracking current and future job costs
- GAAP compliance to ensure accurate and reliable financial reporting
- Support for up to 40 users with customizable access permissions
- Fraud protection through Sage Security Shield, offering cyber threat and internal fraud safeguards
The software’s design might look old, and it doesn’t have mobile apps. But, Sage 50 Accounting is still a strong choice for businesses needing to manage lots of inventory.
“Sage 50 Accounting has been a trusted name in the industry for over 40 years, providing businesses with a comprehensive and reliable accounting platform.”
Sage 50 Accounting has different subscription plans for various business sizes and needs. The Pro Accounting plan costs $58.92 per month for one user. The Premium Accounting plan is $96.58 to $222.25 per month for up to five users. The Quantum Accounting plan is for bigger businesses, starting at $152.42 per month for one user and $301.08 per month for five users.
In summary, Sage 50 Accounting is a top desktop accounting software. It’s great for managing inventory and making reports. It’s a solid choice for small businesses with lots of inventory. Its strong features and long history make it a good option for businesses looking for a reliable desktop accounting solution.
Best Accounting Software for Inventory Tracking: QuickBooks Online
QuickBooks Online is a top pick for small business accounting. It’s great for managing inventories too. It has features that make tracking, reporting, and managing orders easy for product-based businesses.
With QuickBooks Online, you can:
- Track inventory levels in real-time
- Generate detailed inventory reports
- Manage purchase orders and sales orders
- Receive alerts for low stock levels
- Integrate with e-commerce platforms and other business apps
This makes QuickBooks Online a must-have for small businesses. They need to keep a close eye on their inventory and supply chain.
Intuit says over 7 million customers use QuickBooks as of January 2020. This shows how popular it is among small and medium-sized businesses. The QuickBooks Online Advanced plan supports up to 1,000 transaction lines for invoices at once. This helps manage inventory for businesses with a lot of sales.
Whether you run an online store, a retail shop, or a manufacturing business, QuickBooks Online can help. It simplifies your operations, cuts down on errors, and helps you make smart decisions to grow your small business.
“QuickBooks Online Advanced includes unlimited Chart of Account entry while Simple Start, Essentials, and Plus allow up to 250 accounts.”
Best Accounting Software for Very Small Businesses: FreshBooks
For micro-businesses with a few invoices and bills, FreshBooks is the top choice. It has an easy-to-use interface and features that make accounting tasks simple. This keeps very small businesses running well.
Key Features
FreshBooks offers customizable invoicing, unlimited time tracking, and a great mobile app. It also has settings that make it easy to manage projects and track time. You can quickly get financial insights too.
Pricing
FreshBooks has affordable pricing plans, starting at $19 a month for the “Lite” plan. This plan is great for micro-businesses, letting you manage up to 5 billable clients. As your business grows, the $33 and $60 per month plans offer more features and clients.
| FreshBooks Pricing Plans | Monthly Cost | Billable Clients |
|---|---|---|
| Lite | $19 | 5 |
| Plus | $33 | 50 |
| Premium | $60 | 500 |
FreshBooks is perfect for very small businesses. It has a user-friendly interface, customizable features, and affordable pricing. It helps with invoicing, time tracking, and managing finances.
https://www.youtube.com/watch?v=CWbHLoNvohw
“FreshBooks enables businesses to get paid 11 days faster compared to other methods.”
Conclusion
Choosing the right small business accounting software is key. You should look at ease of use, features, price, and how well it works with other tools. The top picks like QuickBooks Online, Xero, Zoho Books, FreshBooks, and Sage 50 Accounting have different features and prices for various businesses.
Small business owners should pick the best accounting software based on their needs. This can help them manage their finances better, work more efficiently, and make smarter decisions. For example, FreshBooks is great for quick invoices, Xero has an easy-to-use interface, and Zoho Books automates tasks.
The accounting software world is always changing. With new trends like AI, machine learning, and blockchain, small businesses will soon have more tools to improve their finances. This will help them stay ahead in the market.