Managing finances is a critical aspect of running a small business. With the right accounting software, small business owners can track their accounts and expenses, prepare for tax season, and monitor their financial health easily. In this blog post, we will discuss the best business accounting software options for small business owners, helping you choose the perfect solution for your needs.
Choosing the Right Accounting Software
As a small business owner, choosing the right accounting software can be a critical decision for the success of your business. With a variety of options available, it can be overwhelming to determine which software is the best fit for your business needs.
Here are some key factors to consider when choosing the best accounting software for your small business:
- Ease of Use. The software should be user-friendly and intuitive, allowing you to guide the interface easily without needing a lot of training or technical knowledge.
- Features. Different accounting software will have different parts, such as invoicing, inventory management, payroll, and tax preparation. Consider which functions are vital for your business and ensure that the software you choose includes them.
- Scalability. As your business grows, your accounting needs will change. Choose software that can adapt to your firm growth and provide the necessary tools and support.
- Cost. Look for software that fits within your budget while still providing the necessary features and functionality. Keep in mind that some software may offer a free trial or have a limited-time promotional offer.
QuickBooks Online: Best Overall Accounting Software
More than 500 third-party apps are integrated with QuickBooks Online, allowing the company to tailor the program. It is easy to use for novices due to its user-friendly UI. It offers services for firms of various sizes and industries and includes features like invoices, cost tracking, payroll, and inventory control.
Popular accounting software from Intuit called QuickBooks Online makes it simple and quick for business owners to manage their accounts. Even new users may easily get up to speed thanks to the user-friendly reporting and clear, simple design. All plans include mileage, income, and expense tracking, sales and tax reporting, and tools to manage 1099 contractors.
Available for: Web application (cloud) and can be accessed via OS X, Windows, Android, and iOS devices.
Price: Plans for QuickBooks Online start at $17.95 per month, but specific prices are not available in the search results. It is essential for potential users to research and compare different plans to find one that suits their requirements and budget. QuickBooks Online offers a 30-day free trial for users to evaluate the software before committing to a subscription.
Pros
- Inventory management included QuickBooks Online Plus and Advanced
- Double-entry accounting reports
- Third-party app integration
- Plenty of QuickBooks Online tutorials, experts, and resources are available online
Cons
- Monthly plans are pricier than other accounting software options
- Each plan allows only a limited number of account users
- Advanced features come with a learning curve
In conclusion, QuickBooks Online gives smaller firms a complete solution to manage financial reporting, save time, and save money. It is also compatible with a variety of apps, including a mobile app and a 30-day free trial.
Xero: Best for Micro-Business Owners
An ample range of functions is offered by Xero, a well-known accounting program designed for small and medium firm owners, including invoicing, expense tracking, cash flow, and inventory management. Businesses have the opportunity to modify and enhance their accounting solutions to suit their particular needs thanks to Xero’s compatibility with more than 800 third-party applications.
The price tiers for Xero can fit various business sizes and financial rules. A 30-day free trial is provided for people who want to try out the program before paying. To further simplify payroll management, Xero is easily connected with the well-known small business payroll solution provider Gusto.
Available for: Web application (cloud), with mobile apps for Android and iOS devices.
Pricing: Xero offers three pricing plans: Early ($12/month), Growing ($32/month), and Established ($62/month), with varying levels of functionality depending on the chosen plan.
Pros
- Wide range of features to accommodate diverse business needs
- Integration with over 800 third-party apps for customization
- Seamless integration with Gusto for payroll management
- 30-day free trial to test the software before purchasing
Cons
- Some users may find the interface less intuitive compared to competitors
- Customer support may not be as prompt as desired
- Additional costs for some integrations and advanced features
Xero is a complete solution that provides a wide range of functions and options for small business owners. In conclusion, despite a few flaws, it is a strong competitor in the accounting software market because of its low cost and integration options.
FreshBooks: Best for Service-Based Businesses
The top accounting software for provider businesses like freelancers, consultants, and agencies is FreshBooks. It is simple to create expert invoices, track spending, and better manage time and projects because of its user-friendly functions and simple design. Also, the program provides a useful mobile app that lets business owners monitor their finances on Android and iOS mobile devices while on the road.
For a clean accounting experience, FreshBooks works with many third-party apps, such as Gusto for payroll management. It is the perfect option for owners in sectors where time tracking and project management are crucial due to its focus on service-based businesses.
Available for: Web application (cloud), with mobile apps for Android and iOS devices.
Pricing: FreshBooks offers four pricing plans: Lite ($15/month), Plus ($25/month), Premium ($50/month), and Select (custom pricing), with varying levels of functionality depending on the chosen plan. These plans cater to different business sizes and budgets.
Pros
- Intuitive interface and easy-to-use features
- Mobile app for managing finances on the go
- Time tracking and project management capabilities
- Integration with various third-party applications, including Gusto
Cons
- Limited inventory management features
- No built-in payroll functionality
- Additional costs for multiple team members
With mobile access, ease-of-use functions, and connectors, FreshBooks is a complete service-based company solution. Despite these issues, it remains a powerful competitor in the accounting software market because of its focus on sectors that need project management and time tracking.
Wave: Best for Sole Proprietors and Freelancers
For sole owners and freelancers, Wave is a free accounting program that offers specific functions like invoicing, cost tracking, and simple financial reporting. Wave is a great option for small firms on a short budget or those that require a basic accounting system, even though it lacks other skills like inventory management or project control.
The payroll solution from Wave is available in all 50 states, making it a practical choice for firms all around the nation. The program improves the financial management process by providing receipt scanning and online payment processing.
Available for: Web application (cloud). No dedicated mobile app is available.
Pricing: Wave’s core accounting software is free to use, but there are additional fees for its payroll and payment processing services. Payroll pricing starts at $20 per month plus $6 per employee or contractor.
Pros
- Free to use, making it budget-friendly for small businesses and freelancers
- Simple and user-friendly interface
- Essential accounting features such as invoicing, expense tracking, and financial reporting
- Payroll service is available in all 50 states
- Receipt scanning and online payment processing
Cons
- Lacks advanced features like inventory management and project tracking
- Payroll and payment processing services incur additional fees
- Limited third-party integrations
- No mobile app for on-the-go management
In summary, for freelancers and sole owners that need key accounting functions but don’t want to pay more, Wave offers an intuitive and cheap option. It may not have all the reducing features and integrations, but its price and simplicity make it a desirable choice for freelancers and small firms.
Zoho Books: Best for Automation and Customization
For firms looking for strong software and custom tools, Zoho Books is a potent analysis program. By automating various financial tasks like invoicing, payment reminders, and cost tracking, its complete toolset reduces financial procedures.
Zoho Books’ easy interaction with other Zoho products, such as Zoho CRM, Zoho Projects, and Zoho Inventory, is a key benefit. Small firms may handle several parts of their activity on a single platform thanks to this integration, which develops a full ecosystem for them.
A strong API is another feature that Zoho Books offers, allowing companies to create unique integrations with current systems or outside software. Zoho Books is a great option for companies who need a customized approach to their analysis needs because of its versatility.
Available for: Web application (cloud), iOS, and Android mobile apps.
Pricing: Zoho Books offers three pricing tiers, starting at $9 per month for the Basic plan, which includes two users. The Standard plan costs $19 per month and adapts to up to three users, while the Professional plan is priced at $29 per month for up to 10 users.
Pros
- Advanced automation features for ease of accounting tasks
- Seamless integration with other Zoho products
- Robust API for building custom integrations
- Scalable pricing plans to suit various business sizes
- Mobile app for iOS and Android devices
Cons
- Steeper learning curve compared to some competitors
- Limited payroll integration options
- Customer support may not be as responsive as desired
For firms looking for strong automation and ways to improve analysis tools, Zoho Books is a great option. In conclusion, because of its simple integration with other Zoho products and strong API, it is the ideal option for companies that require a complete and unique accounting solution.
Kashoo: A User-Friendly Solution for Small Businesses
Small business owners may easily manage their funds with Kashoo’s ease of use interface even if they have no prior experience with banking. Kashoo is a cloud-based positive impact on the financial. Kashoo makes financial management for small businesses better with its easy billing experience, effective cost control, and use mobile app.
Smooth billing options provided by the program have lovely design templates that may be modified with your brand and payment instructions to make prompt payments. Moreover, Kashoo allows transactions in several currencies, which makes it suitable for firms’ use.
Available for: Web application (cloud) and iOS mobile app.
Pricing: Kashoo offers a single pricing plan at $199 per year, or $20 per month if billed monthly. This plan includes all of Kashoo’s features and unlimited users. A 14-day free trial is also available for users to test the software before committing to a subscription.
Pros
- User-friendly interface suitable for non-accountants
- Efficient expense tracking
- Customizable invoice templates
- Multi-currency support
- Mobile app available for iOS devices
Cons
- Limited third-party integrations
- No Android app is available
- Payroll integration only available for U.S. and Canada
Small businesses seeking a simple accounting tool will find Kashoo to be a great solution. Offering flexible billing options, useful expense tracking, and multi-currency support, Kashoo simply financial management, allowing small business owners to focus on growing their ventures.
Billy: Simplified Accounting for Small Business Owners
Billy, a financial analysis tool, is designed with small business owners in mind and places a strong focus on utility and clarity. By giving crucial functions like billing and budget control, the system simplifies financial management while keeping organized and recent records. Billy is a perfect, user-friendly option for small business owners looking for a basic method to handle their funds.
Available for: Web application (cloud)
Pricing: Billy offers three pricing plans – Lite, Premium, and Enterprise – catering to various business needs. The Lite plan starts at $15 per month, while the Premium and Enterprise plans are priced at $23 and $39 per month, respectively. A 30-day free trial is available for those interested in testing the software before committing to a subscription.
Pros
- Easy-to-use interface fit for non-accountants
- Simplified billing and expense tracking features
- Automatic bank account
- Customizable invoice templates
- Multi-currency support
Cons
- Limited third-party integrations
- No mobile app is available
- Lacks advanced features such as inventory management and project tracking
Billy is the perfect accounting solution for small business owners looking for a simple way to manage their funds, to sum up. With its user-friendly interface, important features, and customizable invoicing options, Billy provides a streamlined solution to help entrepreneurs stay on top of their financial records while focusing on growing their businesses.
GoDaddy Bookkeeping: A Tailored Solution for Freelancers and Small Businesses
GoDaddy Bookkeeping is an accounting software designed with freelancers and small business owners in mind. It provides important tools such as billing, expense tracking, and time tracking, allowing users to stay on top of their financial records. GoDaddy Bookkeeping’s desired features make it an attractive option for those who require a custom solution that caters to their specific needs as independent professionals or small business operators.
Available for: Web application (cloud), iOS, and Android mobile apps
Pricing: GoDaddy Bookkeeping offers three pricing plans: Get Paid, Essentials, and Premium. The Get Paid plan starts at $4.99 per month, while the Essentials and Premium plans are priced at $9.99 and $14.99 per month, respectively. A one-month free trial is available for those interested in testing the software before committing to a subscription.
Pros
- Easy-to-use interface suitable for non-accountants
- Seamless integration with popular e-commerce platforms such as Amazon, eBay, and Etsy
- Automatic import of bank transactions
- Time tracking for hourly billing
- Customizable invoice templates
- Mobile app available for iOS and Android
Cons
- Limited advanced features, such as inventory management and project tracking
- Limited third-party integrations compared to some competitors
- No multi-currency support
For private consultants and small business owners who need ease of use way to manage their finances, GoDaddy Bookkeeping provides a unique solution. GoDaddy Bookkeeping’s ease of use design, specific functions, and e-commerce integrations make it easy for freelancers and small firms to stay organized and retain accurate financial records while focusing on growing their companies.
OneUp: Comprehensive Features for Growing Businesses
OneUp is an accounting software that offers a variety of tools to help firms manage their funds efficiently. With tools like billing, expense tracking, and inventory management, OneUp provides a full solution for business owners seeking to simplify their financial methods. The software’s ample powers make it an excellent choice for firms looking to scale and optimize their financial management systems.
Available for: Web application (cloud), iOS, and Android mobile apps
Pricing: OneUp offers four pricing plans: Self, Pro, Plus, and Team. The Self plan starts at $9 per month, while the Pro, Plus, and Team plans are priced at $19, $39, and $69 per month, respectively. A 30-day free trial is available for users to explore the software’s features before committing to a subscription.
Pros
- A comprehensive set of features, including invoicing, expense tracking, inventory management, and CRM
- The easy-to-use interface simplifies complex financial tasks
- Supports multi-currency transactions and automatic exchange rate updates
- Seamless integration with popular banks for easy bank reconciliation
- Mobile app available for iOS and Android devices
- Customizable reporting and dashboard options to monitor business performance
Cons
- Limited third-party integrations compared to some competitors
- No dedicated payroll module, although it integrates with some external payroll providers
- May require a learning curve for users unfamiliar with accounting concepts
In summary, OneUp provides a comprehensive solution for growing businesses, offering a wide range of features to help streamline financial processes. With its user-friendly interface, multi-currency support, and customizable reporting options, OneUp is an ideal choice for business owners seeking powerful yet easy-to-use accounting software to manage their finances effectively.
Conclusion
Choosing the right accounting software is essential for small business owners, as it can greatly impact the efficiency and accuracy of their financial management. We discussed five of the best business accounting software options for 2023, including QuickBooks Online, Xero, FreshBooks, Wave, and Zoho Books.
Each of these solutions offers unique features and benefits, catering to different business sizes and industries. When selecting the best accounting software for your small business, consider your specific needs, budget, and desired level of customization. By investing in the right software, you can streamline your accounting processes, save time, and focus on growing your business.