Managing your finances can be tough for small business owners. But, the right software can make it easier. Up to 54% of employers think they can do better with their payroll and pay. It’s key to check out the best accounting and payroll software out there.
PCMag has been testing and rating accounting for over 20 years. They found the best options for small businesses. These tools can do everything from sending invoices to tracking expenses and preparing taxes.
Key Takeaways
- Accounting and payroll software can streamline financial management for small businesses
- PCMag has identified the top options based on ease of use, features, and pricing
- Cloud-based and desktop software solutions are available to handle invoicing, expense tracking, tax prep, and more
- Choosing the right software can help small business owners stay organized and make informed financial decisions
- Many small businesses are seeking to improve their payroll and compensation processes
Comprehensive Accounting Solutions for SMBs
For small business accounting software, QuickBooks Online and Xero are top choices. They offer powerful features and can grow with your business. Both are designed for small and medium-sized businesses (SMBs).
QuickBooks Online: Feature-Rich and Scalable
QuickBooks Online is a favorite among small businesses. It has many plans, from Simple Start to Advanced, to fit your growing needs. You get customizable dashboards, easy bank and credit card connections, and strong reporting.
Xero: Unlimited Users and Powerful Reporting
Xero is another great choice for small business accounting. It’s known for its top-notch reporting and works well on mobile devices. Xero lets you have as many users as you need on one account, which is great for big teams. Its easy layout and wide range of integrations make it a top pick for SMBs.
| Feature | QuickBooks Online | Xero |
|---|---|---|
| Pricing | $25/month and up | $11/month and up |
| Plans | 4 plans (Simple Start, Essentials, Plus, Advanced) | 3 plans (Early, Growing, Established) |
| Free Trial | 30 days | 30 days |
| Mobile Apps | 1 mobile app | 6 mobile apps |
| Integrations | Hundreds of add-ons | Over 1,000 integrations |
User-Friendly Accounting for Freelancers
Managing your finances as a freelancer can be tough. But, the right accounting software can change everything. FreshBooks is a great choice. It’s easy to use and helps with invoicing and tracking your time.
FreshBooks makes sending out invoices easy. You can add your logo and set up reminders for late payments. It also lets you track your time on the mobile app and add it to your invoices easily.
- Streamlined invoicing process
- Unlimited time tracking
- Client collaboration and project management tools
- Pricing starts at $17 per month
FreshBooks is easy to use, even if you’re not an expert in accounting. It’s perfect for freelancers with a few clients or those growing their business. It keeps your accounting software for freelancers tidy and efficient.
“FreshBooks makes it easy for me to keep track of my time, expenses, and invoices. The intuitive interface and automated features save me so much time and hassle.”
If you’re a freelancer looking for a simple, powerful accounting tool, FreshBooks is a great choice.
Affordable Options for Startups
Startups and small businesses often look for affordable accounting solutions. Zoho Books is a great choice for those on a tight budget. It has a free plan for businesses making less than $50,000 a year.
Zoho Books gives you a lot for free, like a customer portal and automatic payment reminders. You can track miles, schedule reports, and even send invoices from your phone. The app is easy to use on mobile devices, making accounting simple on the go.
Zoho Books is perfect for startups and small businesses. It’s mobile-friendly and offers a free plan. This makes it easy to start managing your finances without spending a lot.
best accounting and payroll software for small business
Small businesses often struggle with managing their finances and payroll. The right accounting and payroll software can help. It lets small business owners focus on growing their business. The top choices for small businesses are QuickBooks Online, Xero, FreshBooks, and Zoho Books.
QuickBooks Online is a top pick, with 88% of users saying it makes their business more successful. It offers features like invoicing, tracking expenses, and financial reports in an easy-to-use platform. QuickBooks Online also works with many business apps and offers a 70% discount for the first 3 months.
Xero is another great choice, known for letting businesses work with unlimited users and have powerful reporting tools. It helps businesses work with their accountants, manage inventory, and understand their finances better.
- Send and get invoices paid online four times as fast with QuickBooks.
- Earn 5.00% APY on banking, significantly higher than the U.S. average.
- Snap photos of receipts and categorize them on the go with QuickBooks.
- Connect up to 3 online sales channels with QuickBooks.
For freelancers and small teams, FreshBooks is a great choice. It offers easy invoicing and tracking time. Its simple interface and flexible pricing, starting at $19 per month, make it great for growing businesses.
Zoho Books is a budget-friendly option for startups, with a free plan and mobile-friendly features. It includes tools like custom invoices, managing inventory, and financial reports for small businesses.
| Software | Features | Pricing |
|---|---|---|
| QuickBooks Online | Comprehensive accounting, integrations, 70% off for 3 months | Starting from $25 per month after discount |
| Xero | Unlimited users, powerful reporting, accountant collaboration | Starting from $12 per month |
| FreshBooks | Streamlined invoicing, time tracking, flexible plans | Starting from $19 per month |
| Zoho Books | Free plan, mobile-friendly, invoice customization | Free plan, paid plans start from $10 per month |
These top accounting and payroll software solutions give small businesses the tools they need. They help manage finances, streamline payroll, and provide insights for success.
https://www.youtube.com/watch?v=D0qhgdimMqU
Robust Desktop Accounting Software
Desktop accounting software is still a top choice for small businesses, especially those needing strong inventory management. Sage 50 Accounting, or Sage business cloud accounting, is a leading option in this field.
Sage 50 Accounting: Advanced Inventory Management
Sage 50 Accounting is a powerful desktop application for small businesses. It has a classic look and doesn’t have a mobile app. But, it’s great for businesses needing top-notch inventory management and tracking.
This software shines with its desktop accounting software features. It supports remote work by connecting with Microsoft 365 Business. This makes accounting tasks easier and helps teams work together, even when not in the same place.
“Sage 50 Accounting is a comprehensive desktop-based accounting application that offers a robust set of features for small businesses, particularly those with advanced inventory management requirements.”
Sage 50 Accounting excels in inventory management. It helps businesses keep track of stock, understand costs, and produce detailed reports. This way, small businesses can make smart choices, manage their inventory well, and run more efficiently.
Benefits of Accounting Software for Small Businesses
Small businesses gain a lot by using accounting software. It saves time by automating tasks like journal entries. This is especially helpful for businesses with lots of transactions.
It also lets you access your accounting data from anywhere on different devices. This anytime access helps small business owners keep track of their finances easily.
- Accounting software reduces errors by automatically collecting and entering data. This cuts down on mistakes in financial records.
- It makes sharing documents between teams and departments easier, improving communication and work flow.
- Automating invoicing and billing makes these processes more accurate and saves time.
Payment options in accounting software give clients the freedom to choose how they pay, including in different currencies. This makes it easier for small businesses to handle global transactions. The expense tracking tools help keep an eye on where money is going.
| Benefit | Description |
|---|---|
| Time-saving Automation | Streamlines tasks like journal entries, particularly beneficial for businesses with a high volume of transactions. |
| Anytime Access | Allows access to accounting data stored online from multiple devices, enhancing flexibility and efficiency. |
| Reduced Errors | Automated data collection and entry minimize the chances of mistakes in financial records. |
| Improved Collaboration | Simplifies sharing documents between teams and departments, enhancing communication and productivity. |
| Enhanced Invoicing and Billing | Automation of these processes improves accuracy and time management. |
| Flexible Payment Options | Integrations offer clients the ability to choose from various payment methods, including different currencies. |
| Expense Tracking | Helps categorize and monitor expenses, providing valuable insights into where the business funds are allocated. |
Using accounting software helps small businesses manage their finances better. It helps them make smart decisions and focus on what they do best. This leads to better organization and compliance.
Choosing the Right Accounting Software
When picking the best accounting software for your small business, think about a few key things. These include the features you need, the pricing plans, and how the software can grow with your business.
Features to Look For
Search for accounting software with the main features you need. This includes invoicing, tracking expenses, financial reports, and working with other business tools. For example, FreshBooks is rated as 4.5 Outstanding. It’s great for sole proprietors and small companies with a few employees. It offers a user-friendly experience and features like retainers.
QuickBooks Online also gets a 4.5 Outstanding rating. It’s perfect for small businesses with a tech budget. It shines in detailed contact records, transaction forms, and managing inventory.
Pricing Considerations
Look at the pricing plans to find one that matches your budget. Prices for top accounting software range from $9 a month for OneUp to $200 a year for Neat. Make sure you’re getting the most value for your money by checking what each plan offers.
Scalability and Growth
Make sure the accounting software can grow with your business. Zoho Books, rated as 4.0 Excellent, is great for bigger small businesses and companies on the rise. It offers depth and flexibility in all areas and has excellent, customizable reports.
By thinking about these factors, you can pick the accounting software that meets your small business needs. It should have the right features, pricing, and scalability for your success over time.
Types of Accounting Software
Choosing the right accounting software for your small business is important. There are many types to pick from, each suited for different needs and budgets. You can choose from cloud-based or on-premises software, depending on what your business requires.
Cloud-based software, like QuickBooks Online and Xero, lets you access your finances from anywhere. They are also more affordable because you pay by subscription. On the other hand, on-premises software is installed on your computer. It gives you more control over how it works.
For big businesses, enterprise-level and ERP (Enterprise Resource Planning) software are made to handle complex financial tasks. On the other hand, small business and industry-specific software are for smaller companies or certain industries.
Open-source accounting software is free and can be changed to fit your business. Commercial software, made by companies, usually has more features and support.
| Type of Accounting Software | Key Characteristics |
|---|---|
| Cloud-based | Anytime, anywhere access; subscription-based pricing |
| On-premises | Installed locally; more customization options |
| Enterprise/ERP | Designed for larger businesses with complex needs |
| Small Business | Tailored to the requirements of smaller companies |
| Industry-specific | Catered to the unique needs of particular industries |
| Open-source | Freely available and customizable |
| Commercial | Developed and sold by software companies |
Choosing the right accounting software depends on your business size, industry, budget, and growth plans. Knowing the different options helps you pick the best one for your needs.
https://www.youtube.com/watch?v=CWbHLoNvohw
Key Features to Look For
Choosing the right accounting software for your small business is key. It should have features that meet your specific needs. These can include invoicing, inventory management, payroll, project management, reporting, and CRM integration.
Think about what your business needs most. If you handle complex inventory, look for software with top-notch inventory management tools. If your team works on projects, project management is a must-have.
Here are some top features to consider:
- Invoicing and Billing – Choose software that makes invoicing easy. It should have automated recurring invoices, customizable templates, and online payment options.
- Inventory Management – Good accounting software tracks inventory and reports on it. This helps you keep the right stock levels, understand sales trends, and avoid running out of stock.
- Payroll – Integrated payroll processing can do tax calculations for you, create pay stubs, and make following labor laws easier.
- Project Management – Some accounting software lets you track projects, bill by time, and manage expenses. This helps your team work better.
- Reporting and Analytics – Strong reporting gives you insights into your business’s finances, sales, and more.
- CRM Integration – Accounting software that works with your CRM system gives you a full view of your business.
By focusing on the features your business needs, you can find accounting software that helps your finances and supports growth.
| Accounting Software Feature | Benefit |
|---|---|
| Invoicing and Billing | Streamlines invoicing and billing with automated recurring invoices, customizable templates, and online payment options. |
| Inventory Management | Keeps stock levels right, tracks sales trends, and avoids stockouts with advanced inventory tracking and reporting. |
| Payroll | Automates tax calculations, creates pay stubs, and makes following labor laws easier. |
| Project Management | Tracks projects, bills by time, and manages expenses to help your team work better. |
| Reporting and Analytics | Gives insights into your business’s finances, sales, and more with strong reporting. |
| CRM Integration | Works with your CRM system for a full view of your business. |
“Accounting software can save a company time and prevent errors by increasing efficiency.”
Conclusion
Choosing the right accounting software is key for small businesses. It helps with managing finances, boosts efficiency, and supports growth. The top picks like QuickBooks Online, Xero, FreshBooks, and Zoho Books, offer many features for small businesses. Think about what you need, your budget, and your future plans to pick the best software for your company.
These accounting software solutions have easy-to-use interfaces, strong automation, and smooth payroll integration. They can make managing finances easier, improve efficiency, and help your business grow. Whether you’re starting out, working as a freelancer, or have a small business, there’s an accounting software for you.
Choosing the right solution for your small business can really change the game. It gives you the tools and insights to make smart decisions, manage your finances well, and move your business forward. By looking at the features, prices, and how they can grow with your business, you can find the best accounting software for your needs. This will help set your business up for success in the long run.
FAQ
What are the best accounting and payroll software options for small businesses?
PCMag recommends QuickBooks Online, Xero, FreshBooks, and Zoho Books for small businesses. QuickBooks Online has many features. Xero is great for unlimited users and detailed reports. FreshBooks is perfect for freelancers, and Zoho Books is ideal for startups.
These tools help with invoicing, tracking expenses, preparing taxes, and reporting finances.
Why is QuickBooks Online a leading small business accounting service?
QuickBooks Online is a top choice for small businesses. It offers great accounting features and a user-friendly experience. It’s customizable and has many add-on apps.
It’s also easy for beginners to use but still has advanced features. It’s a good choice for businesses with a budget for technology.
What are the key advantages of using Xero for small business accounting?
Xero is a reliable choice for small businesses. It has excellent reporting and a strong mobile app. It lets an unlimited number of users access the system at each plan level.
This is great for businesses with many users. Xero also has lots of integrations and is easy to use.
How does FreshBooks cater to the needs of freelancers?
FreshBooks is great for freelancers, especially those with fewer than 50 clients. It has top-notch invoicing and client management tools. Clients can create their accounts and work on projects together.
All FreshBooks plans include unlimited time tracking. You can start timers in the mobile app to log hours for projects.
What makes Zoho Books a great option for startups?
Zoho Books is perfect for startups, offering a free plan for businesses making less than ,000 a year. The free plan includes features like a customer portal and automatic payment reminders.
It also has mileage tracking and lets you schedule reports. Zoho Books has a mobile-first design, allowing you to send invoices via iMessage and access timers and overdue invoices from your phone.
What are the benefits of using accounting software for small businesses?
Accounting software saves time and helps with compliance. It offers cloud-based access, integrates with other apps, reduces mistakes, and is more affordable than hiring an accountant. It also organizes financial records and transactions.
This automation and real-time insights make small business owners smarter and more informed.
What factors should small businesses consider when choosing accounting software?
When picking accounting software, think about the features you need, pricing, and scalability. Look for solutions with invoicing, expense tracking, and financial reporting. Make sure it integrates with other apps.
Check the pricing to find a plan that fits your budget. Ensure the software can grow with your business.
What are the different types of accounting software available?
There are many types of accounting software, like cloud-based, on-premises, enterprise, small business, open source, ERP, commercial, and industry-specific. Cloud-based software is affordable and accessible anywhere, anytime. On-premises software is installed locally and customizable.
Enterprise and ERP software are for larger businesses. Small business and industry-specific options cater to specific industries or company sizes.
What key features should small businesses look for in accounting software?
Look for accounting software with features like invoicing, inventory management, payroll processing, project management, and reporting. The right features depend on your business type. Make sure the software meets your needs.