Did you know the right accounting software can make you smarter? PCMag says managing a business’s finances is tough, especially for small business owners. They handle it all by themselves. Luckily, PCMag has tested and rated accounting software for over 20 years. They found the best apps for small businesses based on ease, functionality, and cost.
If you’re an entrepreneur, freelancer, or small business owner, the right accounting software is key. It can greatly improve how you manage your finances and make decisions. With so many options available, from cloud-based to desktop solutions, it can be hard to choose. That’s why we’ve picked the top choices for 2023, including FreshBooks, QuickBooks Online, Wave, Zoho Books, and Sage 50 Accounting.
Key Takeaways
- The right accounting software can streamline financial management and help business owners make more informed decisions.
- PCMag has identified the best accounting apps for small businesses based on ease of use, functionality, and price.
- Popular options include FreshBooks, QuickBooks Online, Wave, Zoho Books, and Sage 50 Accounting.
- Accounting software features can vary greatly, so it’s important to consider factors like pricing, scalability, and customer support when selecting the right solution for your business.
- Many accounting software providers offer free trials or discounts, making it easier to find the best fit for your needs.
Introduction to Business Accounting Software
In today’s fast-paced business world, accounting software is key for small businesses. It makes bookkeeping easier, automates invoicing, tracks money in and out, and creates detailed financial reports. With accounting software, small business owners can grow their businesses and manage finances well.
Importance of Accounting Software for Small Businesses
The benefits of accounting software for small businesses are many. These tools make accounting easy and give deep insights into finances. They offer features like double-entry accounting, automatic bank imports, and transaction reconciliation. This helps small business owners keep a close eye on their money, make smart decisions, and follow tax laws.
Key Features to Look for in Accounting Software
When picking the best accounting software for your business, look for key features. You want software with great reporting, invoicing, and inventory tools. It should also work well with other business apps and be easy to use on mobile devices.
| Feature | Benefit |
|---|---|
| Double-entry Accounting | Ensures accurate and comprehensive financial records |
| Automatic Bank Imports | Streamlines the reconciliation process and reduces manual data entry |
| Invoicing and Payments | Automates the invoicing process and simplifies the collection of payments |
| Reporting and Analytics | Provides valuable insights into a business’s financial performance |
| Mobile Accessibility | Enables small business owners to manage their finances on-the-go |
By using accounting software, small businesses can improve their financial management. This leads to better decision-making and growth.
FreshBooks – Best for Very Small Businesses
FreshBooks is a top pick for very small businesses, like sole proprietors and small companies. It’s a cloud-based platform that makes accounting easy and fun. It has everything you need, from invoicing to tracking expenses and projects.
Overview of FreshBooks’ Features
FreshBooks has lots of features for small businesses. You can make and send professional invoices, track time and expenses, and get detailed reports. It also works with over 100 popular apps, making work easier and more efficient.
With FreshBooks, you can get paid faster, thanks to its quick payment processing. It’s also highly rated by over 4,400 GetApp reviewers for its easy use and reliability.
Pricing and Plans
FreshBooks has four pricing plans for small businesses. The Lite plan starts at $15 a month and lets you send unlimited invoices to 5 clients. The Plus plan costs $25 a month and lets you send invoices to 50 clients. The Premium plan is $50 a month and has unlimited clients and more features.
For businesses needing more, there’s a custom Select plan. All plans come with a 30-day free trial and a money-back guarantee. This lets you try it out without risk.
“FreshBooks’ support team maintains a 4.8/5.0-star rating based on over 120,000 reviews, demonstrating their commitment to customer satisfaction.”
Intuit QuickBooks Online – Best for SMBs
Intuit’s QuickBooks Online is a top choice for small and medium-sized businesses. It has customizable features and many plan options. Plus, it works well with hundreds of third-party apps, making it perfect for QuickBooks for small businesses.
QuickBooks Online is known for its easy-to-use interface. It helps business owners and their teams manage their finances without hassle. You can also access it from anywhere with an internet connection, thanks to its mobile accessibility.
It offers a wide range of tools like invoicing, inventory management, and payroll. These tools help businesses run smoothly. Plus, it works with many add-on apps to meet specific needs.
QuickBooks Online is also great for its price and how it grows with your business. It has plans for businesses of all sizes and budgets. Whether you’re starting out or growing, there’s a plan that fits your budget.
| QuickBooks Online Plan | Monthly Cost | Key Features |
|---|---|---|
| Simple Start | $30 per month | – Invoicing – Expense tracking – Basic reporting |
| Essentials | $55 per month | – All Simple Start features – Bill management – 3 user access |
| Plus | $85 per month | – All Essentials features – Inventory tracking – Time tracking – 5 user access |
| Advanced | $200 per month | – All Plus features – Custom user access – Advanced reporting – Dedicated account manager |
Intuit QuickBooks Online is a top choice for small and medium-sized businesses. It has a user-friendly interface and flexible pricing. It’s a great QuickBooks Online accounting software solution.
Wave – Best for Invoicing
Wave is a top pick among accounting software, especially for its great invoicing tools. It’s a cloud-based solution designed for small businesses, freelancers, and sole proprietors. It has many features that meet their needs.
Wave’s Free Plan and Features
The Wave accounting software free plan is very appealing. It lets users send unlimited invoices to up to 5 clients and track unlimited expenses. You also get to make detailed financial reports without paying anything. The free plan includes double-entry accounting, support for many currencies, and mobile access. It’s perfect for businesses watching their budget.
For more features, the “Pro” plan costs $16 a month. This plan adds advanced tools like accepting online payments through Wave Invoicing. You also get live support and can add an unlimited number of users.
| Feature | Wave Free Plan | Wave Pro Plan |
|---|---|---|
| Unlimited Invoicing | ✓ | ✓ |
| Unlimited Expense Tracking | ✓ | ✓ |
| Financial Reporting | ✓ | ✓ |
| Double-Entry Accounting | ✓ | ✓ |
| Multiple Currency Support | ✓ | ✓ |
| Mobile Access | ✓ | ✓ |
| Online Payments (Wave Payments) | – | ✓ |
| Live Support | – | ✓ |
| Unlimited Users | – | ✓ |
Wave invoicing has everything you need for invoicing. It also has strong accounting tools and flexible pricing. This makes it a great choice for businesses looking for a strong yet affordable solution.
Zoho Books – Best for Larger Small Businesses
Zoho Books is a top choice for bigger small businesses or growing companies. It’s a key part of the Zoho business software family. It handles sales, purchases, inventory, and project tracking well. Plus, it works great with other Zoho tools, linking accounting with other business areas.
Integration with Zoho’s Ecosystem
Zoho Books shines when working with other Zoho apps. It connects with Zoho’s CRM, invoicing, expense tracking, and customer service tools. This creates a unified system that makes managing finances easier and gives a clear view of the company’s money matters.
This is especially good for bigger small businesses needing advanced accounting and management tools.
- Zoho Books has over 40 reports you can make instantly, like P&L statements and balance sheets.
- It has automatic payment reminders for invoices and makes scanning receipts easy for tracking expenses.
- You can connect your bank account to Zoho Books for live transaction updates and bank feeds that need little manual work.
- It lets you keep an eye on your inventory in real-time with tools like sale and purchase orders, reorder alerts, and inventory updates.
- Zoho Books works well with other Zoho apps, offering a smooth cloud-based management solution for businesses.
Zoho Books is great for big small businesses and growing companies. It offers lots of features, customization, and works well with the Zoho family of apps. This makes it a top pick for those needing a detailed yet easy-to-use accounting software.
“Zoho Books has been a game-changer for our business. The integration with other Zoho apps makes managing our finances, sales, and customer interactions effortless.”
Sage 50 Accounting – Best for Inventory Tracking
Sage 50 Accounting, also known as Sage business cloud accounting, is a top choice for small businesses. It’s designed for desktop use and excels in tracking inventory. This makes it perfect for companies needing detailed inventory management.
Sage 50 Accounting shines with its online connections. These support remote work and integrate well with Microsoft 365 Business. Although it has an old-fashioned look and no mobile app, its strong accounting and inventory tools are great for small businesses.
| Sage 50 Accounting Pricing Plans | Monthly Cost | User Limits |
|---|---|---|
| Pro Accounting | $58.92 | 1 user |
| Premium Accounting | $96.58 – $222.25 | 1-5 users |
| Quantum Accounting | $152.42 – $301.08 | 1-40 users |
All Sage 50 Accounting plans come with lots of features. You get automated bookkeeping, invoicing, managing expenses, and reconciling banks. The Premium and Quantum plans add more like financial reports by department, tracking serial numbers, and setting user roles.
Sage 50 Accounting might cost a bit more than others, but it’s worth it for complex inventory needs. With over 40 years in the business, Sage 50 is a trusted choice for small businesses with lots of inventory.
Xero – Best for Multi-User Small Businesses
For small businesses needing easy collaboration and a simple accounting solution, Xero accounting software is a top pick. It lets you have an unlimited number of users on one account. You can also set different permissions for each user.
This is great for small businesses with many employees or partners needing to access the accounting system. Xero has an easy-to-use interface and offers features like invoicing, tracking expenses, and reconciling bank statements. It’s a favorite among small business owners.
Unlimited Users and Access Levels
Xero changes the game for small businesses with its user management. It doesn’t charge extra for each user, unlike some other software. You can have as many users as you need on one account, with different access levels.
This means all your team can help manage the finances of your business. It helps with teamwork and making smart decisions.
| Xero Accounting Software | Key Features |
|---|---|
| Unlimited Users | Allows an unlimited number of users on a single account |
| Customizable Access Levels | Permits the assignment of different permission levels to each user |
| Comprehensive Accounting Features | Offers invoicing, expense management, bank reconciliation, and more |
| Cloud-Based Accessibility | Enables secure, real-time collaboration from anywhere |
With Xero, small business owners can easily manage their finances. They can empower their team and make smart choices. All this is thanks to Xero’s easy-to-use interface and strong features.
best business accounting software
Choosing the best accounting software for small businesses is not easy. There are many great options for 2023, each with its own strengths. They help with invoicing, tracking expenses, and more. These top accounting software solutions make managing money easier and help businesses grow.
FreshBooks is great for very small businesses. It’s easy to use and helps with sending invoices and tracking expenses. It’s also affordable, starting at $19 a month.
Intuit QuickBooks Online is perfect for small to medium-sized businesses. It offers detailed reports and helps with managing inventory. It also works well with other business tools.
Wave is a top pick for businesses that need a strong invoicing tool. It has a free plan and offers more services like payroll and bookkeeping.
Zoho Books is ideal for larger small businesses. It has many tools that work together, from accounting to managing customer relationships.
Sage 50 Accounting is great for tracking inventory. Xero is good for businesses with many users and can grow with your company.
When picking best business accounting software, think about what you need, your budget, and what will help your business the most. This way, you’ll find the top accounting software that fits your business well.
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“The right accounting software can be a game-changer for small businesses, providing the tools and insights needed to make informed financial decisions and drive sustainable growth.”
| Software | Best For | Pricing | Key Features |
|---|---|---|---|
| FreshBooks | Very Small Businesses | $19 – $60 per month | Invoicing, Expense Tracking, Time Tracking |
| QuickBooks Online | Small to Medium-Sized Businesses | $30 – $90 per month | Comprehensive Reporting, Inventory Management, Integration with Other Tools |
| Wave | Invoicing | Free – $16 per month | Free Accounting, Invoicing, Payroll, Bookkeeping |
| Zoho Books | Larger Small Businesses | $50 – $275 per month | Ecosystem of Integrated Tools, CRM Integration |
| Sage 50 Accounting | Inventory Tracking | $55 – $178 per month | Advanced Inventory Management, Comprehensive Reporting |
| Xero | Multi-User Small Businesses | $12 – $65 per month | Unlimited Users, Scalable Solution, Mobile App |
Conclusion
The best accounting software for 2023 helps small business owners manage their finances well. It offers tools for invoicing, tracking inventory, and reporting. Top choices like FreshBooks, QuickBooks Online, Wave, Zoho Books, Sage 50 Accounting, and Xero have features for small businesses.
These tools help entrepreneurs manage their finances better. They give insights into their business and help them grow. By picking the right software, small businesses can improve their financial operations.
Businesses of all sizes can find the right software. Sage Business Cloud Accounting and QuickBooks Online are great for their many features. Xero and FreshBooks are easy to use and have special features. Wave and Zoho Books are great for automation and working with other tools.
The best software depends on the business’s needs, budget, and industry. In summary, the best accounting software in 2023 offers better financial management and insights. It helps small business owners make informed choices and pick the right software for their needs.
FAQ
What are the key features to look for in business accounting software?
When choosing accounting software, look for double-entry accounting and automatic bank imports. Also, check for transaction reconciliation and robust reporting. Don’t forget about invoicing, inventory management, and mobile access.
What is the best accounting software for very small businesses?
FreshBooks is great for small businesses, like sole proprietors or companies with a few employees. It offers a user-friendly experience and many features. These include invoicing, payments, accounting, tracking expenses and time, projects, reporting, and payroll.
What is the best accounting software for small to medium-sized businesses?
Intuit QuickBooks Online is a top choice for small to medium businesses. It provides strong accounting functions with a great user experience. It’s customizable, has many add-on apps, and offers excellent mobile access.
What is the best accounting software for invoicing?
Wave is a top pick for invoicing and managing transactions. It recently started charging a month for scanning receipts but still offers many free features. These include double-entry accounting, managing accounts receivable and payable, mobile access, and support for various currencies.
What is the best accounting software for larger small businesses?
Zoho Books is part of the Zoho business ecosystem and suits larger small businesses. It offers detailed bookkeeping, sales, purchases, time and project tracking, and inventory management. It’s easy to use, customizable, and integrates well with other Zoho tools like CRM and customer service.
What is the best accounting software for businesses with advanced inventory needs?
Sage 50 Accounting, or Sage business cloud accounting, is designed for desktop use. It’s ideal for companies needing detailed inventory tracking.
What is the best accounting software for multi-user small businesses?
Xero is a trusted accounting software for small businesses. It has standard accounting features, great reporting, and a strong mobile app. It stands out by allowing unlimited users on one account, with customizable permissions for each user.