Best Accounting Software for Small Business
What do you do when you can’t quite justify an accountant for your new startup? You need to choose a solution from the best accounting software for your business.
The accounting software will not only help you track accounts receivable and accounts payable but also give you a clear understanding of their profitability. Most of all, you will be prepared for tax season.
When you are starting out, you will get a lot of advice and find content regarding accounting software. However, most of them will not tell you which one is more suitable for your business.
Well, keeping that thought in mind, we decided to give our loyal readers the list of the best online accounting software for small businesses, that will help them choose the perfect accounting solution for their business.
5+ Best Accounting Softwares for Small Business
There are many types of accounting software available for small businesses. They possess different capabilities and also have different price tags.
However, you will need to choose your accounting software based on your industry type and the number of employees. For example, a freelancer would not need the same features in the accounting software as a restaurant owner.
So, after extensive research, we have found these 6 best accounting software for small business,
- Intuit QuickBooks Online
- WP ERP
- Fresh books
- ZOHO Books
- Sage Cloud
Let’s get to know them.
Intuit QuickBooks Online
Intuit Quickbooks Online is cloud-based accounting software used by small businesses and their bookkeeping and tax professionals. This software is considered the best overall accounting software.
You will find endless online training resources and forums to get support when needed to use this software. And with all the features nicely arranged in one dashboard, it makes bookkeeping fluid and efficient.
- Track income and expenses
- Send invoices and receive payments
- Detailed reports
- Send estimates
- Track sales & taxes
- Capture and organize receipts
- Track inventory
- Full-time service payroll
- 24/7 support and more.
And it is affordable as well. The pricing starts at $8/month.
WP ERP Accounting
Along with its HRM (Human Resource Management), CRM (Customer Relationship Management) modules WP ERP has a great Accounting Module as well.
The module has not only has the capabilities to support any kind of small-medium size business but also can manage the corporate level businesses as well. You can send invoices & receive Payments, create estimation, add taxes & VAT.
This WordPress Accounting software has some great extensions that enhance its features and makes bookkeeping easier for beginners.
- Easy invoicing
- Detailed VAT & Tax reports
- Customer transaction ledger
- Easy payments
- Payment gateways
- Track expense transactions
- Double-entry accounting
- Integration with WooCommerce
- Smart Payroll system
- An internal cash transfer system
- Ledger reports
- Perfect calculation of expenses & bills and more.
The Basic WP ERP is free along with HRM, CRM and Accounting module. But if you want to purchase some extra extensions than the pricing starts at $9.99/month.
This is one of the best accounting software for small businesses in regard to invoicing. The most crucial accounting need for any service-based business is invoicing.
FreshBooks offers more customization for invoicing than any other accounting software out there. As its basic function is to send, receive, and print invoices. This is also cloud-based software. It is a great choice for small business owners as it has exceptional usability and aesthetic properties—and its smart selection of features.
- Double-entry accounting
- Detailed client records
- Ideal for subscription business model
- Inventory tracking, know the exact location a customer opened your invoice
- Estimate and retainer functionality
- Team collaboration and time tracking tools
- Automatic mileage tracking on iOS and more.
Pricing starts at $15/month.
Another cloud-based accounting software, excellent for small businesses. You will get an exceptional experience in an attractive price range. Larger businesses may want to consider ZOHO Books, but it has very limited payroll options.
This software is perfect for helping your small business manage cash flow and finances. Although it is a good choice for small businesses, its appeal is beginning to expand upmarket, too.
- Excellent user interface and mobile apps
- Easy to use
- Superior depth in records and transaction forms, including dozens of custom fields
- Document management
- Generous support options
- Multiple payment gateways
- Time and project tracking
- Offers more resources than other competitors and more.
ZOHO Books pricing starts at $9/month.
Sage 50Cloud is one of the best accounting software for small businesses. It is a robust small business desktop accounting application that incorporates comprehensive financial tools and generous customization options.
It is designed especially for small businesses, providing an exceptional feature set. Its early roots predate Intuit QuickBooks Online. Its integration with Microsoft 365 is the feature that sets it apart from its competitors.
However, since Sage 50 is only available for Windows machines, it’s at a disadvantage compared to the other accounting solutions that enable users to access them from any device with an internet connection.
- Good (mandatory) support options
- Microsoft 365 integration
- Exceptionally sophisticated feature set
- Great customizability
- In-depth contact and item records
- Unusually strong inventory management tools
- Can scale up to other versions
- Send invoices, track payments and expenses and more.
However, it is fairly expensive tool. It’s starting price is $50.58/month.
This is accounting software that supports freelancers or a company that has a few employees. Its invoice creation and management tools are good. Most of its services are free unless you sign up for payroll or customer payments.
Wave has a feature that allows syncing all your data with the Wave software. So, all your bookkeeping data is up to date. However, if you’re looking for built-in time tracking, inventory tracking, or project management, you’ll likely need different software.
- Double-entry accounting
- Excellent invoice and transaction management
- Can pre-authorize recurring credit card payments
- Good user interface and navigation tools
- Context-sensitive help
- Multicurrency support
- Instant Payouts and more.
It is Free! But you need to pay if you select payroll in tax service or self-service states.
Things to Keep In Mind Before Choosing an Accounting Management System
It’s good to have a list of the best accounting software for small businesses. And we have also identified what tool is best for what purpose. So, you must have a good idea of which accounting software you want.
However, before you do that we have some more things for you to consider before you identify the right accounting solution for you. Here they are,
Research the Features You Need
It’s normal to get carried away to see the list of features. But, maybe you are choosing software with features you don’t need and also paying extra money for it.
If you have a small company and can get by using a limited number of features, then you might find yourself paying for a lot you just don’t need. There is always an option to upgrade.
So, don’t get distracted and prioratize your list of features.
Choose a Software that Will Evolve with Time
You don’t want to switch software every six months. That will push you back a further two months.
No, you need to go for a solution that will grow with your company. If your company appoints 100 new employees, make sure the software has the resources to support that as well.
Be realistic about how quickly your business is growing and ask the sales rep you’re working with how well their product grows with clients as their businesses scale.
Keep the Budget in Mind
You will notice that we have added the price of each software on the list. That is because we want to make sure you choose the software that is within your budget.
Before you choose the accounting software to calculate what you can spend on bookkeeping software and choose accordingly.
Ask the Right Questions
It is important to ask questions before buying anything. Not only it helps you understand the product better but also gives you a perfect insight into its support system.
So, before you buy accounting software for your business here are a few questions you need to ask:
- “How secure is your API?”
- “How do you back up system data?”
- “What other costs or fees should I expect?”
- “Tell me about customer support. What are your hours, and how quickly should I expect to get a response if I submit an issue or a question?”
- “Can you tell me about a client you’ve worked with that’s similar to my business? What pain points have they experienced with your software?”
If you follow these guidelines, you will have the right if not the best accounting software at your disposal in no time.
Last Word Before You Choose an Accounting Software for Your Small Business
When you start the search for the best accounting software for small businesses, you will find that the landscape is a packed one. So, it can become difficult to find out where to start and which solutions you need.
That is why we have carefully curated this list of accounting software for you. Choose the best one from the list for your business and if you have any more queries do let us know in the comments below!