Tired of juggling spreadsheets? Accounting software can simplify your finances, free up your time, and give you the data you need to make smart choices. This guide explores over 10+ popular accounting software for small business. We’ll break down their features, strengths, and weaknesses to help you find the perfect fit for your company.
QuickBooks Online – Best accounting software for small business
QuickBooks Online boasts a comprehensive suite of features designed to streamline financial management for small businesses. Notably, the ability to create classes and track income and expenses across multiple departments or locations is a valuable asset. This granular control over financial data proves particularly beneficial for businesses with complex operational structures. As an accounting soaccounting software for small businessftware for small business, QuickBooks Online offers a robust solution for managing finances efficiently.
– Features:
- Financial Dashboard: Provides a real-time snapshot of your business’s financial health, allowing you to see profit at a glance.
- Tax Management: Helps ensure you claim every tax deduction you’re eligible for, maximizing your tax savings.
- Bill Pay: Streamlines bill management by enabling you to manage and pay bills electronically within the software.
- Invoicing: Simplifies the process of creating and sending invoices to customers, expediting the collection of payments.
- Automated Tax Filing: Automates tax calculations and form preparation, saving you time and minimizing errors.
- Payroll: Enables efficient payroll processing, including salary payments and tax withholdings.
– Pros:
- Easy access to support: Many accountants are familiar with QuickBooks, making it easier to find help.
- Expert guidance: ProAdvisors provide invaluable assistance with setup and ongoing use.
- Streamlined inventory control: Automatic COGS calculations simplify inventory management and boost profitability insights.
- Free setup help: A complimentary ProAdvisor meeting ensures a smooth onboarding experience.
– Cons:
- Upgrade Considerations: Upgrading to QuickBooks Online can involve some data migration steps. It’s wise to factor in this process when making your software selection.
- Scalability for Complex Needs: While robust, QuickBooks Online’s pricing structure may not be the most economical for businesses
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Wave
This accounting software for small businesses offers essential features like income/expense tracking, reporting, invoicing, and receipt scanning, all accessible online and through a mobile app for ultimate convenience. With Wave, you get powerful accounting tools for free, making it a compelling option for budget-conscious small businesses and those managing multiple ventures.
– Features:
- Effortless Invoicing & Payments: Create and send invoices, accept secure online payments, and automate reminders – all in one place.
- Automated Accounting: Wave streamlines bookkeeping by automatically categorizing transactions and reconciling your bank accounts, saving you valuable time.
- Mobile Receipt Capture: Simply snap a picture of your receipts with the Wave app, and it will automatically extract the details for effortless expense tracking.
- Scalable Solution: Wave offers optional payroll and financial advisor access as your business grows, allowing you to customize your accounting solution as needed.
– Pros:
- Cost-Effective: Manage your finances completely free, including invoicing and accounting. No transaction or billing limits restrict your growth.
- Multi-Business Management: Run and manage finances for multiple businesses from a single account, saving time and simplifying bookkeeping.
- Collaboration Made Easy: Add unlimited users, allowing your team or accountant to collaborate seamlessly within the platform.
- Mobile Accessibility: Manage your finances on the go with the user-friendly Wave mobile app.
– Cons:
- Limited Integrations: While Wave integrates with some popular tools, broader functionality might require using Zapier, a third-party integration platform.
- Payment Processing Fees: Be mindful of credit card processing fees associated with Wave’s payment system.
- Payroll Availability: Full-service payroll processing is currently limited to businesses operating in specific states (14 at the time of writing).
- Optional Receipt Scanning Fee: The automatic receipt scanning feature requires an additional monthly subscription.
Freshbooks
FreshBooks shines for project-based businesses thanks to its powerful project management and time-tracking features. You can seamlessly track both hours and expenses tied to specific projects, effortlessly incorporating them into client invoices. This makes FreshBooks a standout accounting software for small businesses especially consulting firms and marketing agencies whose billing is directly tied to employee time spent on projects.
– Features:
- Invoicing & Payments: Create and send professional invoices, accept online payments, and manage your cash flow seamlessly.
- Expense Tracking: Effortlessly record and categorize business expenses for clear financial insights.
- Time Tracking & Projects: Track employee hours by project, simplify billing, and gain valuable project profitability insights.
- Reporting: Generate insightful reports to monitor your financial performance and make data-driven decisions.
- Payroll (Optional): Manage payroll processing within the platform (availability may vary).
– Pros:
- Accessible Anywhere: Cloud-based access allows you to manage your finances from any device with an internet connection.
- Effortless Navigation: The user-friendly interface makes navigating the software intuitive, even for those without accounting expertise.
- Seamless Integrations: Connect FreshBooks with your favorite third-party apps to streamline your workflow and centralize your business data.
- Budget-Friendly: FreshBooks offers affordable pricing plans to suit the needs of most small businesses.
- Powerful Invoicing: Create professional invoices with advanced features like customization and automated payment reminders, ensuring you get paid on time.
– Cons:
- Mobile App Reporting: While the FreshBooks mobile app offers core functionalities, advanced reporting features are currently unavailable.
- For in-depth financial insights, you’ll need to access the web-based platform.
- Scalable User Costs: While FreshBooks offers a base plan with a single user, adding additional team members incurs extra fees. Consider your team size when evaluating pricing plans.
Xero
Xero stands out for businesses with inventory management needs. It seamlessly combines robust inventory accounting features with the unique advantage of unlimited users. This means you can track available inventory, automate cost allocation between year-end stock and COGS, and have your entire team collaborate within the platform – all at one fixed price. This makes Xero a compelling choice for accounting software for small businesses seeking a scalable and collaborative inventory management solution.
– Features:
- Simplified Payments & Expenses: Effortlessly pay bills, and track and claim expenses, all within the platform.
- Seamless Banking: Connect your bank accounts for automatic transactions and effortless reconciliation.
- Flexible Payment Options: Accept payments from clients through various methods for improved cash flow management.
- Project Tracking & Payroll: Manage projects, track progress, and streamline payroll processing (if needed).
- Organized Contacts: Manage your client and vendor information efficiently within Xero.
– Pros
- Cloud Convenience: Access your financial data anytime, anywhere with an internet connection.
- Mobile Management: Manage finances from your phone or tablet with the user-friendly Xero mobile app.
- Streamlined Payroll: Integrate seamlessly with Gusto for effortless payroll processing.
- Enhanced Functionality: Expand Xero’s capabilities with a vast marketplace of third-party apps.
- Inventory Made Easy: Simplify inventory management with Xero’s user-friendly tools.
– Cons:
- Reporting Options: While Xero offers reporting features, some users might find them limited compared to more advanced accounting software.
- Payment Processing Fees: Be mindful of potential fees associated with receiving ACH payments through Xero.
- Customer Support Availability: Xero’s customer support options might be limited compared to some competitors. Consider your preferred level of support when making your choice.
Zoho Books
Zoho Books simplifies the often-tiresome world of bookkeeping for small businesses, allowing you to invest your energy in what truly propels your company forward: your business and your customers. By automating tedious tasks like setting customer payment reminders, creating recurring expenses, and managing 1099 contractors, Zoho Books frees up valuable time. This translates to more opportunities to focus on growth strategies and fostering client relationships – the cornerstones of any successful small business. As a user-friendly accounting software for small businesses, Zoho Books empowers you to take control of your finances and dedicate your efforts where they matter most.
– Features:
- Secure Payments: Accept online payments securely and streamline your cash flow.
- Effortless Expense Tracking: Track and categorize expenses with ease for clear financial insights.
- Automated Reconciliation: Save time by automating bank reconciliation, ensuring accurate financial records.
- Project Management: Manage multiple projects with ease, track finances, and gain valuable project profitability insights.
- Comprehensive Inventory Control: Maintain complete control over your inventory levels and optimize stock management.
- Data-Driven Decisions: Generate advanced reports to gain valuable insights into your financial performance and make data-driven business decisions.
– Pros
- Free to Start: Test the waters with Zoho Books’ free plan to see if it meets your needs before committing.
- Zoho Ecosystem Integration: Leverage the power of the Zoho suite by seamlessly integrating Zoho Books with your existing Zoho applications for a unified business operating system.
- Cost-Effective Growth: As your business expands, Zoho Books’ affordable monthly fees for additional users allow you to scale your accounting solution without breaking the bank.
– Cons:
- Payroll Processing: While Zoho offers its payroll solution (Zoho Payroll), it doesn’t integrate directly with Zoho Books. For some businesses, this might necessitate separate platforms for accounting and payroll.
- Journal Entry Limitations: Creating manual journal entries might be restricted to higher-tier Zoho Books plans. If you require frequent manual journal entries, consider the plan that best suits your needs.
Sage 50
Sage Business Cloud Accounting offers tiered plans to fit your business needs. The starter plan allows you to manage core financials like creating invoices, tracking outstanding balances, and automating bank reconciliations. For a bit more ($25 a month), you can upgrade to the Pro plan and gain access to powerful features like unlimited users, quotes, estimates, cash flow forecasting, and managing purchase invoices – ideal accounting software for small business seeking a more comprehensive accounting solution.
– Features:
- Effortless Cash Flow Management: Manage cash flow effectively with features like invoicing, automated payments, and real-time financial insights.
- Seamless Banking & Payments: Simplify financial processes with secure payment processing, bank integrations, and automated reconciliation.
- Streamlined Expense Tracking: Track and categorize expenses efficiently, gain valuable insights into project profitability with job costing, and ensure accurate cost allocation.
- Advanced Inventory Control: Maintain optimal stock levels, optimize inventory management, and streamline order fulfillment with advanced inventory features.
- Data-Driven Decisions: Generate comprehensive reports, leverage detailed audit trails for compliance purposes, and make informed business decisions based on accurate financial data.
– Pros:
- Multi-Company Management: Manage finances for multiple businesses under a single license, saving time and simplifying bookkeeping.
- Free Trial: Test drive Sage’s functionalities risk-free with their free trial account before committing.
- Adaptable Inventory Management: Sage caters to your specific needs with flexible inventory accounting options, ensuring optimal stock control.
- Comprehensive Accounting Suite: Benefit from a well-rounded set of accounting features designed to streamline financial management for your growing business.
– Cons:
- Mobile App Functionality: While Sage offers a mobile app, some users might find it lacking in features compared to cloud-based solutions.
- Pricing Structure: Compared to some cloud-based accounting software for small business, Sage’s pricing might be higher. Consider your budget and prioritize the features most valuable to your business.
- Learning Curve: Sage’s comprehensive features can present a steeper learning curve compared to simpler cloud-based solutions.
- Support Availability: Finding bookkeepers proficient in Sage software might be more challenging in the US compared to widely used cloud-based solutions.
Oneup
OneUp positions itself as a budget-friendly accounting software for small businesses on Windows, offering CRM functionalities at its core. Starting at $9 per month for a single user, OneUp provides the essentials to manage your sales pipeline and nurture customer relationships. However, Mac users are out of luck as OneUp currently isn’t compatible with their system. Be mindful that OneUp limits the number of users you can have on each plan, with unlimited access only available in their priciest tier at $169 per month.
– Features:
- Effortless Invoicing: Create and send invoices with ease.
- Stress-Free Accounting: Manage your finances with confidence.
- Up-to-date Inventory: Stay on top of your stock levels.
- Streamlined CRM: Build and nurture customer relationships.
– Pros:
- Budget-friendly: OneUp offers a low starting price of $9 per user.
- Focus on Sales: Includes all CRM features needed for managing sales pipelines.
- Unlimited Invoicing: All plans let you create and send invoices without restriction.
– Cons:
- Limited Users: OneUp restricts the number of users per plan, which can be a hurdle for growing teams. Only the priciest plan offers unlimited users.
Windows Only: OneUp is not compatible with Mac computers, leaving Mac users out of luck.
Kashoo
Kashoo shines as a user-friendly option for freelancers or solopreneurs on a budget, offering a free invoice-centric plan that tackles essential needs. This free plan lets you send invoices, track expenses, accept online payments, and even send estimates – a solid foundation for managing your finances. They also have a paid plan starting at $20 per month that might include more comprehensive accounting software for small businesses features, but there’s some confusion about whether the free plan allows income tracking alongside expenses. It’s worth contacting Kashoo directly to clarify this before signing up for either plan.
– Features:
- Effortless Invoicing: Create and send invoices in a flash.
- Streamlined Expense Tracking: Keep tabs on your business spending with ease.
- Simplified Accounting: Manage your overall financial health effectively.
– Pros:
- Free and Feature-Rich: Kashoo’s free plan is a steal, offering invoicing, expense tracking, and even sales tax tracking – ideal for freelancers or startups.
- Scalable with Extra Users: As your business grows, Kashoo lets you add additional users for a smooth transition to a paid plan.
- Tracks Your Financial Core: Stay on top of your income, expenses, and sales tax with ease, ensuring accurate financial health.
– Cons:
- Less powerful: It may lack advanced features like inventory management or in-depth reporting.
- Web-only access: No mobile app means you’ll need a computer to access your finances.
- Limited users: The free plan restricts the number of people who can use it, and paid plans might not be as scalable as competitors.
- Unclear income tracking: Double-check with Kashoo if the free plan tracks income alongside expenses.
ZipBooks
Unlike Wave, ZipBooks caters to small businesses with a growth mindset by offering unlimited invoicing and client management, even on their free plan. This means you can create and customize invoices, accept payments, and manage all your clients without restrictions as you get started. If your business needs expand, ZipBooks offers paid plans starting at $15 per month that unlock advanced accounting software for small business features and automation to streamline your bookkeeping.
– Features:
- Effortless Expense Tracking: Automate expense tracking to save time and ensure accuracy.
- Seamless Billing: Create and send one-time or recurring invoices with ease.
- Comprehensive Accounting: Manage your overall financial health effectively.
- Invaluable Insights: Gain a deeper understanding of your business through insightful reports.
– Pros:
- Low Starting Price: Plans begin at a user-friendly $15 per month.
- Shared Access for Accountants: A single plan lets you include your accountant for seamless collaboration.
- Unlimited Everything: Create invoices, and manage unlimited clients and vendors on any OneUp plan.
– Cons:
- Limited Functionality: Kashoo focuses on core accounting tasks, lacking some advanced features found in other software.
- Web-Based Only: Kashoo doesn’t offer a mobile app, so you’ll need to access it through a web browser.
Bench
Focus on what truly matters and say goodbye to the time-consuming burden of bookkeeping. Bench acts as a comprehensive accounting software for small businesses with a human touch. Their team of expert bookkeepers takes care of everything from categorizing expenses to reconciling accounts and generating financial reports. This frees you up to dedicate your energy to what propels your business forward – growth and strategy. Whether you’re short on time or resources, Bench offers the perfect solution for hands-off bookkeeping, allowing you to focus on the big picture.
– Features:
- Expert Bookkeepers: A dedicated team handles your bookkeeping, including expense categorization, account reconciliations, and financial reporting.
- Time-Saving: Frees you up to focus on running your business.
- Accuracy & Organization: Ensures your books are accurate and up-to-date.
- Financial Insights: Provides regular reports to help you understand your business’s financial health.
– Pros:
- In-House Bookkeeping Team: Get access to trained professionals who handle your books meticulously.
- Catch-Up Bookkeeping: No matter your current state, Bench can get your books in order.
- Tax-Ready Financials: They ensure your financial statements are ready for tax filing.
- Simplified Tax Filing (Premium): Their premium plan even offers streamlined tax filing for added convenience.
– Cons:
- Limited Functionality: While Bench excels at bookkeeping, it doesn’t handle invoicing, bill payments, or integrate with popular accounting software like QuickBooks for invoicing.
- Potential Vendor Lock-In: Their use of proprietary accounting software for small business might make switching to a different bookkeeping service more complex later.
Replus make sure that the best accounting software for small business depends on your specific needs and budget. Consider factors like ease of use, scalability, features offered, and customer support when making your decision. With so many great options available, you’re sure to find a software solution that helps you streamline your finances and focus on running your business.