Accounting software for small business owners lets you track your bills and expenses, prepare for tax season, and easily track your finances.
For many small businesses, the software is a more affordable alternative to hiring an accountant or a large company to manage their taxes and payroll. However, there are so many options on the market today that choosing a reliable solution can be a challenge.
To help you find the right one for your needs, we’ve compiled a list of the best small business accounting software available today.
Reviews Best Accounting Software for Small Business
The accounting software included in the list was rated primarily on its features, pricing plans, and customer service.
Because small businesses don’t always stay small, we also looked at each platform’s scalability as well as usability in terms of ease of use and multi-user support.
1. QuickBooks Online
QuickBooks Online by Intuit is a popular accounting platform that can help business owners manage their books quickly and easily.
QuickBooks Online has everything small business owners need to take control of their accounting. It has a simple, clean interface and intuitive reporting, which means even beginners can get up to speed quickly. All QuickBooks Online plans include mileage, income and expense tracking, sales and tax reports, and tools to manage 1,099 contractors.
Other QuickBooks Online plans offer additional features like inventory tracking, support for up to 25 individual users, and even access to a dedicated customer service manager. Plans start at $15 per month.
Benefits:
- Inventory management included in QuickBooks Online Plus and Advanced
- double counting
- Integration with third-party apps
- Lots of QuickBooks online tutorials, experts, resources, online
Less :
- Monthly plans are more expensive than other accounting software options.
- Each plan allows only a limited number of account users.
- Advanced features require training
- Available for: OS X, Windows, web apps (cloud)
Mobile app: Android, iOS
Price: Plans start at $15 per month.
Free trial duration: 30 days
App or Shopify integration: Yes
2. Cool Books
One of the most popular and well-known small business accounting tools available today is FreshBooks.
FreshBooks accounting software includes smart technologies and back-office automation designed to reduce manual data entry and simplify accounting. For example, FreshBooks can be configured to automatically reconcile credit and debit amounts and automatically import financial data from various sources.
Users can easily access important financial reports such as:
- Balance sheet
- Profit and loss accounts
- Cash flow statements
- Users can also configure access rights on an individual basis. For example, employees can be granted limited access to financial reports and accountants can be granted additional administrator rights.
Benefits:
- Highly appreciated customer support
- Time and mileage tracking features included with all plans
- Wide range of cloud accounting features
Less :
- Limited number of users and customers
- The lowest tier plans do not offer bank reconciliation or access to an accountant.
- No quarterly tax notices
- Available for: Web application (cloud software)
Mobile app: Android, iOS
Price: Plans start at $4.50 per month for the Lite plan.
Free trial duration: 30 days
App or Shopify integration: Yes
3. Sage 50cloud
Sage 50cloud Accounting offers complete cloud-based accounting software for small businesses with highly customizable options and advanced features.
The Sage 50cloud Pro Accounting plan is the cheapest option available for less than $30/month and is designed for small independent businesses. It can perform a range of accounting tasks, including expense management, invoicing, and inventory tracking. Sage 50cloud Accounting also integrates seamlessly with Microsoft Office.
Other Sage plans offer additional advanced features such as role-based security privileges and multi-company account management, but may not be available for smaller businesses with more modest budgets.
Benefits:
- Many customization options to suit your needs
- Inventory management and tracking tools
- Integration with Microsoft 365
Less :
- No mobile app
- Clunky user interface
- Time tracking is not included in any of the plan options
- Available for: web app (cloud), Microsoft 365 integration
Mobile app: No
Price: Plans start at $346 per year.
Free Trial Duration: No, but you can get a live demo of the software.
Shopify app or integration: No
4. Wave
Many small business accounting software on this list are inexpensive. But for a newly established independent business with little cash, any additional expense could bankrupt the bank. Wave, an accounting tool designed for small businesses, understands this problem, which is why it’s 100% free.
Available for Windows and OS X, as well as Android and iOS apps for invoicing and receipts, Wave is perfect for independent businesses that are still on their feet. Wave Accounting can do almost everything that high-end accounting software can do, including expense management, bank reconciliation, payroll, and invoicing.
If this all sounds too good to be true, create a free account and see how Wave can help you manage your business accounts in less time, all without spending a dime.
Benefits:
- completely free
- double counting
- Unlimited users with user rights control
- Unlimited invoice creation with customizable templates
- Mobile billing app
Less :
- No phone support; live chat is only available for paid add-ons (Wave Payments and Payroll)
- No updates are planned for current features
- No additional accounting options
Available for: Web application (cloud)
Mobile app: Android, iOS
Price: Free
Duration of the free trial period: unknown
Shopify app or integration: No
5. Zoho Books
Zoho Books is an online accounting software with Accounts Payable, Accounts Receivable, and Inventory management capabilities. The invoicing software is incredibly fast and its accounting software offers many features at a good price. Zoho Books is a great alternative to more expensive options like QuickBooks Online and can still meet all of your business needs.
Benefits:
- Most accounting tasks are possible via a mobile application
- A fairly powerful free version of the program
- More affordable than similar accounting software
- Multi-currency opportunities at the highest level
Less :
- You have to pay for advanced features like project tracking and workflow automation.
- There is no way to track fixed assets such as real estate, land, or equipment.
- Limited number of users per level
Available for: Web application (cloud)
Mobile app: Android and iOS
Pricing: Free for businesses with annual revenue under $50,000; paid plans start at $15/month
Duration of free trial: 14 days
App or Shopify integration: Yes
How We Chose the Best Small Business Accounting Software
We based our ranking methodology to select the best accounting software based on the following categories.
User reviews and reliability
We’ve prioritized businesses that receive mostly positive customer service reviews on third-party consumer review sites.
Accounting features
We looked at the number of accounting features offered by each software platform, as well as the functionality and customization aspects of each platform’s features.
Integrations
Among the software platforms we have studied, we have chosen those that offer easy integration with other third-party solutions that can improve the functionality and usability of the software.
Diet options
We evaluated plan options to determine which companies offer more features at the best price.
Additional Resources
We considered all the additional resources and benefits offered by the platform that set it apart from other solutions.
Frequently asked questions about accounting software
Which accounting system is suitable for small businesses?
Although the accounting software you choose will depend on the individual needs of your small business, we recommend choosing one of the cloud-based accounting solutions from the list above.
What software do most small businesses use?
Most small businesses need good accounting software, document management software, and CRM software. Your best bet is to find comprehensive software that can perform all three of these functions or easily integrate with existing platforms.
Why is QuickBooks best for small businesses?
QuickBooks is one of the most versatile accounting software available for small businesses and offers all the essential accounting features small business owners need, including expense tracking, inventory management, and tax tracking. sale, among others.
What is the cheapest accounting software?
Wave accounting software is completely free. However, before choosing free accounting software like Wave, make sure it has all the features you need for your business.
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