Imagine a world where managing your small business’s finances is easy and strategic. Over 60% of small business owners in the U.S. say accounting software is key for their work. With the right software, you can make bookkeeping simpler, understand your finances better, and make smart choices for your business.
Key Takeaways
- FreshBooks and QuickBooks Online are the top-rated accounting software solutions for small businesses.
- Accounting software helps businesses manage financial transactions, track income and expenses, and generate reports.
- Cloud-based accounting software like Xero and Zoho Books offer scalable, customizable options for businesses of all sizes.
- Free accounting software like Wave can be a viable option for sole proprietors and freelancers with basic needs.
- Sage 50 Accounting stands out for its comprehensive inventory management and desktop-based approach.
What Is Accounting Software for Small Businesses?
Accounting software is a tool that helps small businesses manage their money better. It lets entrepreneurs and small business owners keep track of income, expenses, and more. This software automates bookkeeping tasks, giving insights into a company’s finances. It helps make smart decisions and follow accounting rules.
Key Features of Accounting Software for Small Businesses
- Double-entry accounting: Ensures accurate and balanced financial records.
- Mobile accessibility: Allows business owners to manage finances on-the-go.
- Payroll integration: Simplifies employee compensation and tax payments.
- Inventory management: Tracks stock levels and optimizes inventory control.
- Project tracking: Monitors the financial performance of individual projects.
- Financial reporting: Generates comprehensive reports for analysis and decision-making.
Accounting software helps small businesses stay organized and make smart choices. It keeps finances healthy. There are many options, from small business accounting solutions to full financial management tools. Entrepreneurs can find the right bookkeeping software for their needs and budget.
“Accounting software has been a game-changer for my small business. It’s streamlined our bookkeeping processes and given us real-time visibility into our financial performance.” – Jane Doe, Owner of Acme Enterprises
The Best Accounting Software: QuickBooks Online
QuickBooks Online is a top pick for small businesses. It offers a wide range of features for small and medium-sized companies. This cloud-based accounting solution is designed to meet the unique needs of these businesses.
With QuickBooks Online, managing finances is easy. You can track income and expenses, send invoices, and get detailed reports. Its user-friendly design and smooth integration with other tools make it a favorite among small business owners and accountants.
- 88% of customers say QuickBooks helps their business be more successful.
- QuickBooks offers Live Expert Assisted support for 30 days for free.
- Banking with QuickBooks offers a 5.00% APY, over 70 times higher than the U.S. average.
QuickBooks Online shines with its secure transaction import and automated bookkeeping. This saves users a lot of time on financial tasks. It also has different pricing plans for businesses of all sizes and budgets. This ensures small businesses can find a plan that fits their budget.
QuickBooks Online also connects users with live tax experts from TurboTax. This gives users personalized tax advice and support. Plus, it works with many other apps, helping small businesses run more smoothly and efficiently.
| Accounting Software | Monthly Cost |
|---|---|
| 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 |
QuickBooks Online is a top choice for many entrepreneurs and accountants. It has great features, is easy to use, and has good prices. It helps streamline financial tasks and gives valuable insights into a business’s finances. This makes it a top pick in the cloud-based accounting market.
Xero: A Simple and Scalable Option
Xero is a top choice for cloud-based accounting software for small businesses. It’s easy to use and grows with your company. You get unlimited users, over 1,000 app integrations, and a mobile app for managing finances anywhere.
Key Features of Xero
Xero’s easy-to-use interface and customizable dashboard are great for small business owners. It offers many features to make managing money easier, such as:
- Automatic bank feeds for easy reconciliation
- Invoicing and managing accounts receivable
- Tracking projects and costing jobs
- Managing inventory and processing purchase orders
- Comprehensive reporting and analytics tools
Xero’s prices start at $60 a month, fitting different business sizes and needs. The “Early” plan is $15 a month for freelancers and startups. The “Growing” plan at $30 a month and the “Established” plan at $70 a month offer more features for bigger businesses.
Xero lets you access your financial data from anywhere, making it great for growing businesses. It’s flexible and can change as your business does. The focus on integration and customization means it meets your business’s changing needs.
“Xero’s simple and uncluttered interface has made it a favorite among non-accountants, who appreciate its ease of use and robust functionality.”
Whether you’re just starting or you’re a well-known small business, Xero is a great choice. It’s simple, scalable, and packed with powerful features for cloud-based accounting.
FreshBooks: Designed for Service-Based Businesses
FreshBooks is a top pick for accounting software for service-based businesses. It’s a cloud-based accounting software for service businesses that shines with features like making proposals, tracking project time, and taking payments. These are key for any service provider.
FreshBooks offers a great user experience, settings that adapt to your needs, and features like retainers and projects. It might not have all the advanced tools of bigger accounting software. But, it’s perfect for very small businesses and freelancers needing a simple invoicing and time tracking system for their small business accounting needs.
FreshBooks has amazing reviews, scoring 4.5 “Excellent” from over 4,400 GetApp reviews. People love its easy and good-looking double-entry accounting. It supports invoices, estimates, expenses, time tracking, and projects. Plus, its advanced payment options and over 100 app integrations help service-based businesses run smoother and get paid quicker.
“FreshBooks allows businesses to get paid 2x faster by automating invoicing and offering online payment options.” – FreshBooks Review
With a 4.8/5.0 star rating from over 120,000 users, FreshBooks’ support team of over 100 pros in North America and Europe makes sure businesses run smoothly. The free 30-day trial and flexible pricing plans make it easy for FreshBooks to fit any service-based venture, big or small.
| FreshBooks Features | Benefits |
|---|---|
| Intuitive Invoicing | Create and send professional-looking invoices in minutes |
| Time Tracking | Accurately track time spent on projects and bill clients accordingly |
| Expense Management | Easily log, categorize, and report on business expenses |
| Project Management | Collaborate with clients, track progress, and bill for completed work |
| Online Payments | Accept payments directly through invoices, with options like credit cards and bank transfers |
the best accounting software for Freelancers and Solopreneurs
If you’re a freelancer or solopreneur, picking the right accounting software is key. QuickBooks Solopreneur is a top choice made just for you.
QuickBooks Solopreneur: Key Features
QuickBooks Solopreneur is made for freelancers and independent contractors. It lets you keep business and personal money separate. You can track your miles, organize receipts, and file taxes easily with TurboTax.
This software has a mobile app, tax expert help, and is easy to use. It’s perfect for part-time freelancers and small businesses.
Here are some main features of QuickBooks Solopreneur:
- Automatic categorization of business and personal transactions
- Mileage tracking for business-related travel
- Integration with TurboTax for easy tax preparation
- Mobile app for on-the-go expense tracking and invoicing
- Dedicated support from tax experts
- Simplified user interface compared to QuickBooks Online
With its special features and good price, QuickBooks Solopreneur is a great pick for freelancers and solopreneurs. It makes managing your money and taxes easier.
Wave: A Free Accounting Solution
For freelancers, solopreneurs, and micro-businesses on a tight budget, Wave is a great choice. It offers a free small business accounting solution. You can use its core features like invoicing and expense management without paying extra.
Wave’s dashboard is easy to use, helping you manage your finances well. It connects with many business tools, making accounting and financial management easier for small businesses.
Wave can automatically import bank transactions and categorize them. This saves you time and effort. It also supports many currencies, which is great for businesses with clients or suppliers from other countries.
“Wave has been a game-changer for my freelance business. The free accounting tools have helped me stay on top of my finances without breaking the bank.”
Wave’s free accounting software might not have all the features of paid options. But, it’s simple, functional, and affordable. For entrepreneurs and small businesses looking for a solid accounting solution, Wave is a good choice.
Wave’s Key Features
- Automatic bank and credit card transaction import
- Intuitive invoice creation and management
- Expense tracking and receipt organization
- Financial reporting and insights
- Multi-user access and collaboration
- Secure 256-bit SSL encryption for data protection
If you’re a freelancer, sole proprietor, or running a small business, Wave offers a reliable and free accounting software option. It helps streamline your financial operations and gives you a clear view of your business’s financial health.
Zoho Books: Comprehensive and Customizable
Zoho Books is a top-notch accounting software for businesses of all sizes. It’s part of the Zoho business software family. This software offers many features to help manage finances, increase efficiency, and give valuable insights for success.
A Tailored Approach to Accounting
Zoho Books stands out because it can be customized to fit your business needs. You can make your own invoices and reports, automate tasks, and connect with other Zoho apps. This makes Zoho Books fit right into your business, making things more efficient and cutting down on work.
This software has a lot of accounting tools like invoicing, tracking expenses, managing projects, and keeping an eye on inventory. It’s easy to use, even for small businesses or big ones. Plus, there’s a mobile app for managing finances anywhere.
One big plus of Zoho Books is how well it works with other Zoho products. If you use Zoho CRM or Zoho Desk, you can link Zoho Books to them easily. This makes sharing data easier, helps teams work together better, and gives you a single place to manage your business.
Zoho Books is a top choice for businesses and CPAs around the world. It’s known for its detailed and customizable accounting solutions. With its easy-to-use interface and connection to the Zoho ecosystem, it’s perfect for small businesses and growing companies looking for a strong yet flexible accounting tool.
| Key Features | Benefits |
|---|---|
| Invoicing and Billing | Create and send professional invoices, track payments, and manage receivables |
| Expense Management | Easily track and categorize business expenses, simplifying tax preparation |
| Project Tracking | Monitor project budgets, timelines, and profitability to improve resource allocation |
| Inventory Management | Maintain real-time inventory levels, set reorder alerts, and manage stock adjustments |
| Reporting and Analytics | Generate over 40 types of financial reports to gain valuable business insights |
Zoho Books is a great choice for businesses looking for a versatile and powerful accounting solution. Its many features, customization options, and connection to the Zoho ecosystem make it stand out.
Sage 50 Accounting: Desktop Software for Inventory Management
Sage 50 Accounting is great for small businesses needing strong inventory management. It doesn’t have a mobile app but has advanced tools for tracking inventory. It also has detailed records and reports. Plus, it works with Microsoft 365 Business for remote work.
Sage 50 Accounting’s pricing plans include:
- Pro Accounting at $58.92 per month for one user
- Premium Accounting at $96.58 per month for a single user up to $222.25 per month for five users
- Quantum Accounting at $152.42 per month for one user to $301.08 per month for five users
This software might be too much for some small businesses. But, it’s perfect for companies needing detailed inventory tracking. It has features like tracking serial numbers, different costing methods, and detailed reports. These make it great for complex inventory needs.
| Feature | Sage 50 Accounting | QuickBooks Online | FreshBooks |
|---|---|---|---|
| Inventory Management | Comprehensive tracking and control | Basic inventory management | Limited inventory features |
| Reporting | Over 150 customizable reports | Standard financial reports | Invoice and expense reports |
| Pricing | $58.92 – $301.08 per month | $30 – $200 per month | $17 – $55 per month |
For businesses focusing on detailed inventory management and full accounting tools, Sage 50 Accounting is a good choice.
https://www.youtube.com/watch?v=t0M6KNG06jM
Choosing the Right Accounting Software for Your Business
When picking the best accounting software for your small business, think about a few key things. Consider your business size, what you need (like invoicing or payroll), your team’s tech skills, and your budget. These factors are very important.
The accounting software options we’ll look at have different features and pricing plans. They suit businesses of all sizes and needs. By looking at what you need and what each software offers, you can find the accounting software that helps you manage your finances well and grows your business.
Key Factors to Consider
- Understand the pricing structures, including any hidden or additional fees for setup, customer service, or data storage.
- Look for software that offers free trials or demos to ensure it aligns with your business needs and is user-friendly, especially for non-accountants.
- Prioritize features based on your current and future requirements, such as invoicing, financial reporting, and payment processing.
- Evaluate the importance of cloud-based accessibility versus desktop-based software, considering factors like remote access and collaboration capabilities.
- Assess the quality and availability of customer support, as well as the ability to generate easy-to-read and shareable reports.
- Ensure the accounting software integrates with your existing business solutions, such as sales platforms and payroll applications.
- Consider the level of security measures and user access controls provided by the software.
| Accounting Software | Pricing | Key Features |
|---|---|---|
| QuickBooks | $12.50 to $90 per month | Invoicing, expense tracking, payroll, and financial reporting |
| Xero | $9 to $60 per month | Invoicing, bank reconciliation, project management, and inventory tracking |
| FreshBooks | $6 to $20 per month | Invoicing, expense management, time tracking, and project management |
By carefully looking at your business needs and what each accounting software offers, you can find the right one. It will help you manage your finances better and support your business growth.
Conclusion
Choosing the right accounting software is key for your small business. It can greatly affect how well and clearly you manage your finances. This article looked at top choices like QuickBooks Online, Xero, FreshBooks, QuickBooks Solopreneur, Wave, Zoho Books, and Sage 50 Accounting.
Think about what your small business accounting needs are. Look for software that fits your business’s growth and success. You might want features like easy use, strong inventory tracking, or smooth integration with other tools. There’s an accounting software out there for you, ready to make your bookkeeping easier and give you deep insights into your finances.
No matter the size or type of your business, the right accounting software can change the game. It helps you make better decisions, improve your financial reports, and push your business forward for the long haul.
FAQ
What is accounting software and how can it help small businesses?
Accounting software helps businesses manage their money. It tracks income and expenses, keeps an eye on what’s owed and what’s paid, and makes financial reports. This makes bookkeeping easier and gives insights into the business’s money health.
What are the top-rated accounting software options for small businesses?
PCMag found the best apps for small businesses are FreshBooks for small ones and QuickBooks Online for bigger ones.
What are the key features of QuickBooks Online?
QuickBooks Online has lots of features like detailed reports, tracking transactions, sending invoices, managing inventory, and using mobile apps. It’s customizable for different business sizes and needs, with various pricing and add-ons.
What makes Xero a popular choice for small businesses?
Xero is easy to use and grows with your business. It has unlimited users, works with over 1,000 apps, has a great mobile app, and top-notch reports. Its easy interface and customizable dashboard make it perfect for small businesses looking for a powerful yet easy accounting solution.
How is FreshBooks different from other accounting software?
FreshBooks is great for service-based businesses. It’s good at making proposals, tracking project time, and taking payments. It also has a user-friendly design and features like retainers and projects.
What are the benefits of using QuickBooks Solopreneur?
QuickBooks Solopreneur is made for freelancers and independent contractors. It helps separate business and personal money, track miles, organize receipts, and file taxes with TurboTax. It has a mobile app, tax support, and an easy interface, unlike QuickBooks Online.
What makes Wave a good option for very small businesses and freelancers?
Wave is free and has lots of features for small businesses and freelancers. It charges for some extras like payroll and payment processing but has free accounting tools like invoicing and managing transactions.
What are the key features and benefits of Zoho Books?
Zoho Books is detailed and customizable, offering advanced sales, purchases, time tracking, and inventory management. It has a clean interface. Working with other Zoho tools like CRM makes it great for businesses already using Zoho.
Who should consider Sage 50 Accounting?
Sage 50 Accounting is for small businesses needing strong inventory management. It needs to be installed on a computer and has no mobile app. But, it has great inventory tools, detailed records, and powerful reports. It’s perfect for companies needing detailed inventory control.
What factors should I consider when choosing the best accounting software for my small business?
When picking accounting software, think about your business size and needs, like invoicing or inventory. Consider your team’s tech skills and your budget. There are many options with different features and prices for various businesses.