Today, entrepreneurs and business owners are turning toward technology to improve their accounting processes, by using the best small business accounting software available that meets their needs. With more efficiency and less paperwork, the applications enable you to stay real-time updated with all the key financial indicators and metrics.
No wonder why small business accounting software is highly sought after. The available software applications these days are highly adaptive, scalable, and empowered with automation options that can meet needs from any individual to a corporation.
You may find plenty of accounting software solutions available, but with the right accounting software in place, you’ll be focusing less on number-crunching, and more on expanding your business.
6 Key Features of Small Business Accounting Software
On the surface, an accounting software will do what accounting is generally about – maintain bookkeeping, generate reports, handle banking side of things, but as you get better features, it will bring every aspect of your accounting workflow to the top level, while eliminating inaccuracies, organizing and speeding up the process which otherwise will not be humanly possible. Here are some of the key features that you should be looking for:
- Cloud Services: Access your date from anywhere, any device, using a fast Internet connection. Also, you wouldn’t have to additionally purchase software licenses or servers.
- Ease of Use: Whether you are bookkeeping, sending bulk estimates, or creating reports, the easy interface will only save your valuable time. Also, it will improve your efficiency in functions otherwise not feasible in a complex interface.
- Automation: Processes such as receipt scanning and bank reconciliation can become highly mundane and time-consuming if done manually. Automation will save your time, energy, labor, and cost.
- Integration: Applications that offer integration with third-party software are a gem. Whether you use PayPal, SalesForce, Amazon, Oracle, or different accounting software, third-party integration options available will boost your accounting process.
- Pricing and Budget: The software’s pricing and your budget should go hand-in-hand for long term sustainability and avoid getting ripped off by getting features that you do not need.
- Reminders: Setting due date reminders will help you avoid late payments to vendors, and also update your clients to make payments to you on time.
Regardless, if you’re an entrepreneur, freelancer, consultant, small-business owner, or CEO, you can find a variety of home business software options for your daily business needs.
The Best Accounting Software for Small Businesses (2020)
This entry is perhaps the least surprising of all. If you ask any accounting professional to name one SaaS company, their most likely response will be Quickbooks.
This is how popular Quickbooks is. However, it is not just the popularity of the name, but also the top-notch features, quality user-interface, and outstanding customer support that makes Quickbooks a complete package.
As you would have thought, Quickbooks has made to our list of the best small business accounting software to use. This product has been designed in such a way that it suits every type of business – be it a large enterprise, or freelancer working from home. And the best thing of all is that you only have to pay for what you need.
It is safe to say that Quickbooks has dominated the industry for years. Having said that, you can find even more business accounting software and features in this list that can precisely meet your needs.
- Manage and organize your business accounting on the cloud through your PC, mobile or tablet
- Track record of your tax times and save receipts through your phone’s camera.
- Record vendor invoices and sends them over within minutes
- Make smart business decisions through in-depth data reporting
- Schedule recurring payments and pre-recorded vendor bills to save precious time.
- Pay employees, automate payroll tax calculation, and auto-fill payroll tax forms
- Automatically back up your data to ensure the safety of your accounting reports
Quickbooks offers the following price packages:
- Free Trial – give Quickbooks a free trial for 30 days; this excludes any discount offers
- Simple Start – at $15/month (50% discount for first six months), track sales, expenses, and profits offers unlimited invoices, manage your sales tax, cross-platform support, all for one user.
- Essentials – at $23/month (50% discount for first six months), everything included Simple Start, also you can manage bills, sales quotes, and use more currencies, all this for 3 users and 1 accountant.
- Pro – at $31/month (50% discount for the first six months), everything included Essentials, manage inventory, purchase orders, and much more for up to 5 users and 1 accountant
Best suited for small business, growing startups, entrepreneurs, and freelancers, Freshbooks is one of the leading small business accounting software, it’s the reason behind this is clear. Freshbooks has a dynamic and powerful user-interface that makes accounting and billing cycle easy to manage. Because of that, Freshbooks becomes a prominent choice of business owners with limited knowledge of accounting.
Even more so, Freshbooks offers automates and speeds up labor-intensive tasks, such as creating invoices, sending client reminders, or managing inventory. You can safely and securely back-up your data on its cloud storage and access it from any device that you may be using.
Among the flurry of beneficial features, these are the most notable ones that Freshbooks provides:
- Auto-send custom payment reminders, optionally apply automatic late fees, recur similar invoices, and request deposits on your invoice upfront.
- Send invoices to clients in their preferred language through Freshbook’s multi-language feature
- Save keystrokes by creating duplicate invoices and making adjustments as you wish
- Organize receipts, keep track of your spending through easy-to-read summary, and get your expenses ready for tax time
- Manage estimates and swiftly convert approved estimates to invoices
- Track and bill employee work hours, and collaborate with your entire team through Team Time Tracking feature
- Available as a Chrome extension, access Freshbooks from your web browser within one click.
The following are the annually-billed price packages offered by Freshbooks:
- Free Trial – give Freshbooks a free trial for 30 days
- Lite – $15 /month, bill up to 5 clients, contains all basic features, unlimited invoices, expense entries, time tracking, and estimates. Add team members for $10 per user.
- Plus – $25/month, bill up to 50 clients, contains everything Lite has to offer with more advanced features. Buy advanced payments feature for $20/month.
- Premium – $50/month, bill up to 500 clients, other features are the same as Plus.
- Select – custom pricing, bill more than 500 clients, personal account manager, low credit card rates and much more.
Based in New Zealand, Xero provides all the promising benefits that will fast-track your accounting process. This app is a remarkable choice for small and medium-sized businesses. The company that runs Xero offers products that are used in more than 180 countries.
So if you are looking for one of the best small business accounting software with payroll, Xero is worth your consideration. Powered with cloud-technology, it delivers all the right tools that save your time and help grow your business.
- Integrate your inventory, invoices, expenses and other data with 800+ third-party apps
- Take a real-time view of your cash flow and financials by accessing your data from Mac, PC, or smartphone
- Get notified automatically when your customers open invoices
- Support for multiple tax rates and currencies
- Instant bank reconciliation within just one click
- Provide access to unlimited users, and make the best use of unlimited transaction features
- Handle inventory speedily through fast-track sale and purchase system
Xero comes with the following price packages:
- Free Trial – experience the best of free small business accounting software for 30 days
- Early – at $6.75/month, manage up to 5 invoices, 5 quotes, and 5 bills, reconcile up to 20 bank records
- Growing – at $22.50/month, manage unlimited invoices, quotes, bills, and bank reconciliations
- Established – at $45/month, same as Growing, with multi-currency, expenses and project management
- Add-on: Third-party payroll integration is offered by Gusto at a $39/month base + $6/month per person
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So far we have discussed cloud-based apps, this entry makes way for web-based small business software. Best suited for entrepreneurs, self-employed, consultants, and of course, small/medium-sized businesses, Wave saves everyone who’s on a tight budget.
If your business is just taking baby-steps, then Wave can help you figure out what suits you best and what doesn’t without breaking your bank. As many accounting software services offer a free trial, Wave remains absolutely free. It might sound crazy, but Waves really proves itself as the viable option for anyone looking for a free small business accounting software.
- Unlimited credit card connections, income/expense tracking, and guest collaborators
- Unlimited receipt scanning with the offline receipt capture feature
- Automatically record receipts as accounting transactions
- Process multiple business profiles with just one account
- Perform business reporting, use multiple currencies, and integrate the payroll system
- Access accounting data from anywhere using free iOS and Android apps
- Integrate with PayPal, Shoeboxed, and Etsy
None – free accounting software for small businesses with complete features. The only time Wave will charge you is when they impose a dispute fee ($15), or a return of item fee ($5).
5. Sage 50cloud
Sage 50cloud is designed for small and medium enterprises that come with powerful compliance and tracking features. It provides a variety of functions, such as taxing, inventory, budgeting, and more.
You can also use add-ons for credit card processing, payroll, etc. This application is best suited if you or your business are Microsoft users, as it allows integration, as well as data sync in Outlook, and access to mobile devices.
The original version of this product was branded as “Peachtree Accounting”. It might sound like nostalgia if you are a veteran accounting software user, as Peachtree was a big name back in the old days. Furthermore, Peachtree was among the first software ever introduced for a computer. With years and years of development, you can be sure that Sage 50cloud is a highly mature and stable product.
- Ensure compliance with GAAC, CCPA, small business tax, and more.
- Create automated bank feeds and efficiently track income and expenses
- One-click reports to visualize your business’ standing instantly
- Allow multiple users to collaborate as a team
- Convert estimates and proposals into invoices and sales orders
- Get detailed tracking updates on inventory information
- Control and improve cash flow through specially designed cash flow management feature
Sage offers the following monthly-billed price packages, with up to 50% off on annual billings:
- Free Trial – get a 30-day free business accounting software and later upgrade to your desired package
- Pro Accounting – at $50.58 per user/month, available for 1 user, hence best suited for entrepreneurs
- Premium Accounting – at $78.21 per user/month, supports up to 5 users
- Quantum Accounting – at $197.55 per 3 users/month, supports up to 40 users
6. Zoho Books
Zoho offers a massive product-line of SaaS applications. It is widely known for its Zoho CRM software. One of Zoho’s popular products is Zoho Books. So if you’re already using a Zoho product in your team, Zoho Books should definitely be a go-to choice for your back-office accounting as it will offer seamless integration possibilities with other apps in the Zoho cloud suite.
Having already made its mark in the software industry, the Zoho group paved way for Zoho Books to join the league of the best small business accounting software. This application helps grow your business by providing a comprehensive range of solutions from general accounting to payroll maintenance, from tracking expenses, to sending invoices, with super-rich feature sets at attractive prices.
- Integrate Zoho Books with famous apps, like PayPal, Square, Dropbox, etc.
- Receive updates when a client responds to any requests or makes payments.
- Provide access to your clients by sending copies of invoices, estimates and project details via the portal.
- Bulk payments are just one-click away.
- Quote clients through automated processes to amplify estimate approvals.
- Share any positive client feedback about your business on social media.
- Enable clients to print and download past transactions
Zoho Books offers the following pricing plan billed monthly:
- Basic – at $9/month, allows for up to 50 client connections, 2 users and 5 automated workflows
- Standard – at $19/month, allows for up to 500 client connections, 3 users and 10 automated workflows
- Professional – at $29/month, allows for more than 500 client connections, 10 users and 10 automated workflows
Note that if you bill annually, you get 2 months off!
Add-ons: Include $2/month for an additional user, and $5/month for 50 auto-scans in a month.
You must have heard of Go Daddy if you have ever purchased website hosting. But did you know they also offer one of the best small business accounting software for entrepreneurs who sell on Amazon, Etsy, eBay, and Paypal?
GoDaddy Bookkeeping is web-based accounting software which can also be accessed anytime, from anywhere using your iOS or Android device. It quickly gained popularity thanks to its all-inclusive bookkeeping depth and intuitive features that allow you to manage and track your online sales and other financials.
GoDaddy Bookkeeping is specially-built for entrepreneurs, self-employed individuals, and freelancers to help them provide an estimate of their tax payables.
- Manage bookkeeping with no prior accounting knowledge
- Extensive freelance tax support
- In-depth financial reporting features tools to calculate your revenue or create tax reports
- Automatically process invoices, and send reminders when they are due
- Accept payments via credit and debit cards directly from your smartphone
- Add receipts, edit your invoices, or take a quick-look at invoices due for the current period
- Avoid adding personal transactions from getting included in reports and totals by easily removing them from your record
Go Daddy Bookkeeping offers the following pricing packages:
- Get Paid – at $4.99/month, best for accepting credit card payments via invoices, create business reports for the current year only
- Essentials – at $9.99/month, lets you automatically import sales data, creates unlimited business reports
- Premium – at $14.99/month, supports recurring invoices, creates unlimited business reports
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Kashoo is cloud-based accounting software specifically designed for freelancers, small business owners, entrepreneurs, and not just accountants. Ever since its inception in 2008, Kashoo has received positive customer reviews mainly appreciating the simple user-interface of Kashoo. It is designed in such a way that even a person without an accounting degree can perform their bookkeeping.
For businesses needing a payroll system, Kashoo provides integration with SurePayroll, which surely makes it one of the best accounting software for small businesses. Other great features allow users to keep an eye on their financials, handle invoices, manage expenses, perform bank reconciliation, and much more.
- Set up and organize credit card payments in minutes
- Make smart business decisions through one-click financial reports
- Ability to sync 5000+ bank data feeds for bank reconciliation purposes
- Support for multiple currency rates that save time from manually calculating daily exchange rates
- Quickly enter recurring invoices using pre-built templates
- Create and print client statements, and e-mail invoices directly from Kashoo
- Supports multiple users at no extra charge
Kashoo offers a free trial and a premium pricing package:
- Free Trial – no charges for the first 14 days, after that the trial period upgrades to Premium version
- Premium – at 19.95/month, all features included
If your business is using SalesForce, then Accounting Seed is must-have accounting software. This is a native-SalesForce app that helps businesses by combining the power of accounting and ERP.
Accounting Seed comes with three core components, i.e., general ledger, ERP, and project accounting. Moreover, you can handle inventory management, payroll, order management, and much more, all within just one platform.
Best-suited for advanced users, Accounting Seed ultimately becomes your complete-package back office. Not only it caters to your accounting needs but it also syncs with other departments such as production, marketing, and sales.
- Wide range of editable invoice formats and financial report layouts
- Easily configure deferred revenue/expense
- Schedule General Ledger transactions by project
- Perform managerial accounting, including labor costing, material costing, and work breakdown structure
- Forecast project profitability against multiple budgets
- Supports PSA management and Contract management
- Use ERP function, such as planned resource allocations per project by hour
Accounting Seed’s pricing is based on customized quotations, contact sales for an inquiry.
If you are an Oracle user, then Tipalti is a great choice as it integrates well with the Oracle NetSuite platform. With that said, Tipalti is suitable for any type of user, whether freelancers or large enterprises.
Tipalti provides all the right tools needed to handle your day-to-day Accounting Payable process. This product is designed to cut down all the slack and redundant manual work so that business owners can spend more time tracing important financial figures rather than spending time entering a bulk amount of data.
- Provides full compliance with American and international taxation standards
- A simplified payment process with easy payment acceptance
- Reduce dependency on email about payment status as all information is available on the web portal
- Fast-track supplier payment workflows and automate invoice collection
- Integrate with Oracle, Xero, CAKE, Paypal, Quickbooks and more.
- Wide range of global payment methods and multi-currency support
- Ability to schedule payments and provide early discounts
Tipalti offers the following pricing packages:
- Express – at $299/month, best suited for small and medium-sized business
- Pro – at $699/month, suitable for small businesses, as well as corporations, as this is a mid-tier package
- Elite – at $1599/month, best suited for large corporations
We have discussed quite an array in our exclusive list, but before you commit, make sure that you make your decision based on the key features and complete pricing package, that fits right for your business.
For those offering, you can sign up for a free trial to test all the nuts and bolts. Once you make a wise selection, you can be sure that you get relieved from all accounting related woes and take a steep flight toward growth.
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