Imagine running a successful small business without the stress of handling your finances. A recent study found that the right online accounting software can make small business owners smarter and more informed. Managing finances is tough, especially for those who handle it all by themselves. Luckily, there are many accounting apps and bookkeeping software made just for small businesses.
This guide looks at the top online accounting software choices. Each has its own strengths, from invoicing apps and expense tracking tools to tax preparation and payroll management solutions. If you need financial reporting or like the ease of cloud accounting and mobile accounting, this article covers it.
Key Takeaways
- Discover the best online accounting software options for small businesses based on features, functionality, and pricing.
- Learn about the importance of accounting software in managing finances and staying on top of your small business operations.
- Understand the key features to look for when selecting the right online accounting solution for your small business needs.
- Explore the top accounting software recommendations, including FreshBooks, QuickBooks Online, Zoho Books, Xero, and Wave.
- Get insights into the pricing and plans offered by leading online accounting platforms for small businesses.
Introduction to Online Accounting Software for Small Businesses
Today, small companies use online accounting software to make their financial tasks easier. These cloud-based tools bring many benefits that help small businesses succeed.
Importance of Accounting Software for Small Businesses
Using online accounting software gives small businesses a big boost. It automates tasks like invoicing and tracking expenses. This saves time and cuts down on mistakes.
These platforms are also available anytime, anywhere. This means small business owners can manage their finances from anywhere. It helps them stay on top of their money matters.
Key Features to Look for in Online Accounting Software
- Core accounting capabilities (invoicing, expense tracking, financial reporting)
- Billing and invoicing tools
- Inventory management
- Payroll processing
- Project management
- Reporting and analytics
- Customer relationship management (CRM) integration
- Mobile accessibility
When picking an online accounting software, small businesses should look for features that fit their needs. The right tools help streamline financial tasks. This lets small companies grow and compete better.
“Accounting software has been a game-changer for our small business. It has saved us countless hours and helped us maintain a tight grip on our finances.”
– Jane Doe, Owner of ABC Enterprises
Intuit QuickBooks Online: Best for Comprehensive Features
QuickBooks Online by Intuit is a top choice for small business accounting. It offers a wide range of features in a user-friendly package. You get detailed contact records, great inventory management, and time tracking. Plus, there are customizable reports, support for projects and payroll, and excellent mobile apps.
Overview of QuickBooks Online
QuickBooks Online stands out for its customizability and the many add-on apps it supports. It’s perfect for small businesses with a budget for tech. This software is packed with features but still easy to use.
Key Features and Benefits
- Automated bookkeeping and accounting tasks to save time
- Extensive reporting capabilities, including profit & loss, expenses, balance sheets, and more
- Invoicing, payments, and expense management features
- Integrated tax assistance powered by TurboTax
- Seamless integration with various third-party apps
- Robust security measures like SSL encryption and two-factor authentication
- Excellent mobile apps for on-the-go access
Pricing and Plans
QuickBooks Online has different pricing plans for small businesses with varying budgets. Prices start at $30 a month for the Simple Start plan and go up to $200 a month for the Advanced plan. The higher plans offer more features and functionality.
New customers can get a 70% discount on the first 3 months of their subscription. They also get a free 30-day trial to try out the software.
FreshBooks: Best for Ease of Use
FreshBooks is a top pick for small businesses looking for easy-to-use online accounting software. It has a friendly interface and handles double-entry accounting well. This makes it perfect for sole proprietors and small businesses with a few employees.
Its invoicing tools are a big hit. Business owners can easily make and send professional invoices. This helps them get paid faster, on average 11 days sooner. The software also helps with project management and tracking time, making it easier to work with clients and bill them.
FreshBooks offers a free 30-day trial and a mobile app for managing finances anywhere. It has a high rating of 4.5 out of 5 stars from over 4,400 reviews on GetApp. The customer support team is also highly rated, with a 4.8/5.0 star rating from more than 120,000 reviews.
“FreshBooks has simplified my accounting and invoicing processes, allowing me to focus on growing my small business.”
FreshBooks might not have all the advanced features for inventory management. But, it shines in core accounting tasks and is designed with the user in mind. It’s a great choice for small businesses wanting a smooth and effective accounting experience.
Zoho Books: Best for Scaling Businesses
For small businesses looking for a full-featured and growing accounting solution, Zoho Books is a top choice. It’s trusted by businesses and CPAs all over the world. It has a global user base and supports many currencies, perfect for companies trading internationally.
Features and Capabilities of Zoho Books
Zoho Books has many features for growing businesses. It automates tasks like sending reminders and updating fields. Users can customize it to fit their business needs. It also has tools for teamwork and secure communication.
The software makes invoicing and payments easy. It lets you create professional invoices and offer various payment methods. You can also automate invoicing. Zoho Books helps with inventory management by tracking stock and sending reminders when it’s time to reorder. It also makes managing projects easy, including tracking time and expenses.
Integration with the Zoho Ecosystem
Zoho Books works well with other Zoho apps, like CRM and customer service. This lets users link their accounting with other business areas, making things more efficient.
Zoho Books is serious about security and privacy. It offers webinars, listens to user feedback, and focuses on protecting data in today’s connected world.
| Zoho Books Features | Zoho Books Capabilities |
|---|---|
| Automation | Streamlining tasks like reminders, alerts, and field updates |
| Customization | Tailoring the software to specific business needs |
| Collaborative Tools | Facilitating teamwork and secure communication |
| Invoicing and Payments | Creating professional invoices, offering multiple payment options, and automating the invoicing process |
| Inventory Management | Tracking stock, setting reorder points, and receiving timely reminders |
| Project Management | Managing project quotes, time tracking, and expense management |
| Reporting and Analytics | Providing actionable insights on cash flow, taxes, and profit and loss |
Zoho Books has strong features, great Zoho Books integration, and a focus on making customers happy. It’s a top choice for businesses looking to grow.
Xero: Best for Document Management
Xero is a top choice for small businesses looking for online accounting software. It’s known for its strong Xero document management features. Users can easily manage and access important financial documents. This makes it great for businesses that need to keep track of their paperwork.
Xero’s Document Management Capabilities
Xero offers many tools for managing documents:
- It works well with cloud storage like Dropbox, backing up documents automatically with a top rating of 5 out of 5 stars.
- It has high-rated tools for handling receipts, invoices, and more. Apps like Veryfi and Staple get great reviews.
- It also has strong connections with apps like Maus and Synnch. These apps help with dashboards and tax claims, both rated 5 out of 5 stars.
Other Notable Xero Features
Xero is also known for its great reporting, customizable dashboards, and mobile app. It has a lot of features at a fair price, perfect for small businesses.
Xero has pricing plans for businesses of all sizes, with no setup fees or hidden costs. There’s even a 30-day free trial. This lets users check out all the Xero features and Xero capabilities before signing up.
Wave: Best Free Accounting Software
For small businesses on a budget, Wave is a great choice. It’s free and packed with features to keep finances in check. Entrepreneurs can manage their money without spending a lot.
Wave’s Free Features and Limitations
Wave’s free plan covers basic accounting needs. It helps you get paid 3X faster with online payments. The smart dashboard organizes your money, bills, and invoices.
To try bookkeeping and invoicing, sign up for the Starter Plan. But, the free version has limits. It doesn’t offer advanced tools like inventory tracking or time tracking. For more features, upgrade to the Pro Plan for $16 a month.
| Feature | Wave Accounting (Free) | Wave Accounting (Pro) |
|---|---|---|
| Online Payments | ✓ | ✓ |
| Smart Dashboard | ✓ | ✓ |
| Invoicing | ✓ | ✓ |
| Customizable Sales Taxes | – | ✓ |
| Accounting Reports | Basic | Exportable |
| Third-Party Integrations | – | – |
| Inventory Tracking | – | – |
| Time Tracking | – | – |
| Audit Trails | – | – |
Wave Accounting is perfect for micro-businesses with fewer than 10 employees. It’s easy to use and great for service-based businesses on a budget. But, it might not grow with your business as much as other software.
Sage 50cloud: Best for Inventory Management
For small businesses looking for top inventory tracking solutions, Sage 50cloud is a top pick. It’s a powerful accounting software with great inventory management features. This desktop app helps streamline inventory processes and offers deep insights into stock levels and transactions.
Sage 50cloud’s Inventory Management Features
Sage 50cloud is a favorite for small businesses because of its Sage 50cloud inventory management tools. It has detailed records and transaction forms to track inventory closely. It also offers extensive reporting to analyze stock data. Users can manage purchasing, receiving, and selling easily, keeping stock accurate and replenishing on time.
It also has a customizable dashboard that lets businesses adjust the software to their needs. This flexibility helps small companies improve their accounting and inventory workflows. It leads to better efficiency and control over their operations.
| Sage 50cloud Pricing | Monthly Cost |
|---|---|
| Pro Accounting | $58.92 per month (1 user) |
| Premium Accounting | $96.58 – $222.25 per month (1-5 users) |
| Quantum Accounting | $152.42 per month (1 user) |
Sage 50cloud might cost more than some others, but its Sage 50cloud inventory management features and overall accounting abilities are worth it. It’s a great choice for small businesses that want full control over their inventory and finances.
“Sage 50 Accounting has a highly customizable dashboard and offers templates for more sales forms than any other accounting app reviewed.”
Sage 50cloud is known for its reliability and continuous improvement. It’s a solid choice for small businesses looking for a desktop accounting solution with top-notch inventory management tools.
online accounting software for small business
This article has looked at top online accounting software for small businesses. Each has its own strengths and features. QuickBooks Online offers a lot, while FreshBooks is easy to use. Small business owners have many great options to pick from.
When choosing, consider pricing, how well it integrates with other tools, and if it can grow with your business. Some software is perfect for small businesses, whether you’re just starting or have a bigger team.
For those looking for the best accounting software, the article highlights Zoho Books, Xero, Wave, and Sage 50cloud. Each has features that cater to small businesses, like managing documents and working with others. By thinking about what your business needs, you can pick the right software to help you manage money better and grow.
This article gives a detailed look at top online accounting software for small businesses. It helps entrepreneurs make a choice that fits their needs and budget. Whether you want something easy to use, full of features, or affordable, this article can guide you to the best accounting software for your business.
FAQ
What are the key benefits of using accounting software for small businesses?
Accounting software saves time by automating tasks. It helps with following rules and lets you access your data anywhere. You can also connect it with other apps, reduce mistakes, and save money compared to hiring an accountant. It makes managing your finances better organized.
What are the essential features to look for in accounting software for small businesses?
Look for features like invoicing, tracking expenses, and financial reports. Also, check for billing tools, inventory management, payroll, project management, and reporting. Don’t forget about CRM integration and mobile access.
Why is QuickBooks Online recommended for small businesses?
QuickBooks Online is a top choice for small businesses. It offers great accounting features in a user-friendly design. It’s customizable, has many add-on apps, and works well on mobiles. It’s perfect for businesses that need powerful yet easy-to-use accounting software that grows with your business.
What are the pricing tiers for QuickBooks Online?
QuickBooks Online has different plans starting at a month for Simple Start. The top plan costs 0 a month and has more features.
Why is FreshBooks a good choice for very small businesses?
FreshBooks is great for small businesses, especially for solo owners or small teams. It has a user-friendly design and offers full accounting features. It’s strong in invoicing, tracking projects and time, and has mobile apps. But, it doesn’t have advanced inventory management.
What are the key features and benefits of Zoho Books?
Zoho Books is a powerful tool for small businesses. It covers sales, purchases, time and project tracking, and inventory. It has a clean interface and great mobile apps. It suits growing businesses that want flexibility and usability. It also works well with other Zoho apps, like CRM and customer service.
What are the key features and benefits of Xero?
Xero is known for its strong document management. It makes it easy to manage and access financial documents. It also has great reporting, a customizable dashboard, and a mobile app. Xero offers many features at a good price, making it a great choice for small businesses.
What are the features and limitations of Wave’s free accounting software?
Wave is a great free accounting service for small businesses. It offers invoicing, transaction management, and supports many currencies. But, it lacks advanced features like time tracking and full mobile access. It also started charging for scanning receipts recently.
What are the key features of Sage 50cloud for small businesses?
Sage 50 Accounting is a detailed accounting app for small businesses. It shines in inventory management with advanced tools. It has detailed records and reporting, but it’s desktop-based without mobile apps. Its interface is a bit old-fashioned.