9 Best Small Business Accounting Software

The demand for small business accounting software has increased with the growing businesses. As a company grows, managing it becomes increasingly difficult, necessitating the use of accounting software. Moreover, whether a company is small, medium-sized, or large, it requires software to manage its invoices, billings, tax compliances, expenses, transactions, payroll, and so on. As a result, there is a variety of software available that perform all of these functions. And it is up to the businesses to select any of them based on their requirements. However, before you buy, you can try them out for free.

Accounting software is a computer program that is mainly used by accountants and bookkeepers to manage their firm’s transactions. It is a very important tool to manage accounting tasks, account balances, payroll, taxes, projects, etc.  It is an all-in-one tool that can handle a variety of tasks. Moreover, it has evolved from basic accounting to real-time financial processing since its introduction in 1978.

Features

Connects Easily

One of the software’s most useful features is that it connects you and your team to banks, customers, and partners. A business owner must manage their bank statements, and account balances, track payments, and so on, and the accounting software handles all of these tasks with its features.

Reports & Analysis

Maintaining real-time records and reporting them to the organization is critical for saving time in your business. And accounting software plays a critical role in presenting information to upper management. Furthermore, accounting software makes it simple to manage and analyze financial reports.

Mobile-friendly

One of the software’s key features is that it is mobile-friendly. Most software companies make them available on Android and iOS, allowing business owners and teams to manage their finances from anywhere.

Payments Processing

Small business accounting software makes it simple to pay contractors and receive payments from customers. So, you can receive payments instantly with just one click. As a result, it saves your team or employees a lot of time by reducing administrative issues, recording payments, and so on.

Error Detection and Prevention

To maintain a company’s brand reputation and other stuff, every business must be secure and error-free. If your company makes a mistake, there’s a decent possibility your customers will stop buying your products. As a result, accounting software plays an important role in automatically detecting errors and making you alert.

Tracking Expenses

Accounting software makes it simple to keep track of your expenses. It can be useful in obtaining data by scanning them and automatically recording the information. As a result, you don’t have to be concerned about your company’s financial record.

Accuracy

Accounting software’s accuracy is a critical feature. The software easily calculates large amounts of data that are also accurate. Unlike the traditional calculating process, which was time-consuming and prone to error. As a result, software plays an important role in this.

Tax Compliance

One of the best features of small business accounting software is that it makes tax preparation easier. It generates reports detailing how much tax you have paid over a given period. Furthermore, it simplifies your business by focusing on multiple tax rates.

Here is a Guide to Tally Software

Let Us See Some Tips on Choosing the Accounting Software-

Know Your Budget

If you are looking for small business accounting software, you must keep your budget in mind. As you may be aware, specialized software is more expensive. Accounting software packages, on the other hand, are appropriate for all types of businesses. As a result, you must decide what type of software is appropriate for your budget.

Features You Need

You only need to consider the needs of your company before purchasing accounting software. For instance, if you require software that tracks inventory, is mobile-friendly, and manages projects, you should select accounting software that meets these requirements. As a result, you must decide which features are appropriate for your company.

Know Your Accounting Skills

Accounting software should be chosen based on your accounting abilities. Simple to use software is considered necessary if you are a beginner or a small business owner who is unfamiliar with accounting. You should also consider software that is simple to use by your team. So that they will not have to spend time on learning. As a result, there is various accounting software available that anyone can use it.

Size of Your Business

You must consider the size of your business before purchasing any software. There is software available that is designed for large corporations and small and medium-sized businesses. As a result, you must decide which software best suits your company’s size.

Take a Trial

Last but not least, before purchasing any accounting software, you should try it out. Some software packages provide a 30-day free trial, while others provide a 14-day free trial. As a result, you should try the software first and then buy it if it meets your company’s needs.

Why Do Small Businesses Need Accounting Software?

• Accounting software is required for the growth of any business, whether it is a small business or a startup. You may not need a software tool to manage all of your finances at first, but as your business grows, you will be unable to manage all of your finances or accounts without a software tool.

• You cannot rely on spreadsheets to manage all your data. Managing your data will become more difficult as your company grows. And you will face information gathering delays. As a result, your team will face the same issue when making decisions. In general, you cannot afford to have these delays in your business. That is why software for accounting is a must-have tool for running a successful business.

• Many small business owners struggle with financial tasks such as accounts payable, taxes, and cash flow. While these are the key features for managing any business, no businessperson can make mistakes in this context. Therefore accounting software comes in handy here. It can handle all tasks so precisely that small businesses will not be concerned about their financial operations.

• Accounting software helps businesses save time by automating tasks like inventory management, time tracking, payment processing, and reminder sending. As a result, it is extremely beneficial to businesses of all sizes.

Moreover, there are various features of the software that we mentioned before and these features benefit small businesses, accountants, and bookkeepers in various ways. And these benefits attract businesses to purchase them.

Here are the Important Skills Required for an Accountant

Let’s Take a Look at Some Accounting Software for Small Businesses-

1. Xero

Xero is cloud-based online accounting software for small and medium-sized businesses. It is intended to help small and medium-sized owners from all over the world run their companies smoothly. The software company, founded in 2006 in New Zealand, assists accountants, bookkeepers, and businesses in growing. It has around 3 million subscribers worldwide.

Let’s Look at What Xero Can Do for Your Small Business-

Features

• Pay your bills on time
• Accept payments quickly
• Manage your contacts
• Collect data automatically
• Store your file
• Calculates sales tax automatically etc.

Types of Businesses Who Use Xero

Healthcare

It is beneficial for the healthcare industry because its advantages include easy inventory tracking, the ability to run your business from anywhere, the simplification of pay and leave records, and so on.

Ecommerce

It is advantageous for an e-commerce business because it helps you to keep track of your financial activity, pay your bills on time, merge with Shopify, and so on.

Manufacturing

In a manufacturing firm, Xero’s accounting software assists you in tracking inventory, generating quotes in minutes, and checking your performance, among other things.

Farming

The software is useful for making daily time-consuming tasks easier, and it allows you to work from anywhere, including your field, farm, or office. Aside from the industries mentioned above, many other businesses use Xero’s accounting software, including construction firms, real estate, hospitality, and retail.

Pricing

Those looking for software for account management can try the software for free before deciding which plans are best for your business.

Early

$12 per month

Growing

$34 per month

Established

$65 per month

2. FreshBooks

Fresh Books, which was founded in 2003 in Toronto, Canada, is one of the best cloud-based small business accounting software that can be accessed via desktop and mobile devices.

Features

• Tracking expenses is a breeze.
• Collaborate with the team easily with the software
• Project management
• Simple invoicing and billing
• Monitors the amount of time you spend on projects and clients
• Receive payments twice as quickly
• Workable from any location on your fingertips etc.

Who Use FreshBooks

Freelancers

Freshbooks is useful for freelancers who want a variety of payment options, accurate billing features, and the ability to track everything related to clients and keep clients happy.

Business With Contractors

The software assists your team members and contractors in tracking time, and its online payments and payment reminders make the billing process easier.

Business with Employees

With its features, the software makes hiring employees, making plans, and inviting clients much easier.

Self-employed Professionals

Freshbooks can help you learn about your clients and show you your profit and cash flow.

Pricing

There are four different plans are available and you can get 70% off for 3 months

Lite- $4.50 per month

Plus- $7.50 per month

Premium- $15 per month

Select- it offers a custom pricing for businesses

3. Zoho Books

If you need small business accounting software to help you manage your company, ZohoBooks is a great choice. It is an Indian multinational corporation that was founded in 1996 and produces web-based business tools. You can use Zoho Books to track inventory, manage projects, handle core accounting, and so on. Before purchasing the plan, you can take advantage of its 14-day free trial.

Features

• Create customized invoices
• Track the expenses
• Client portal
• Pay bills easily
• Simple account reconciliation and transaction
• Get the real-time data
• Supported in android, IOS, and windows
• Simple & secure online transactions
• Multiple project management etc.

Apart from that, each plan includes a variety of features.

Pricing

Free– $0 per month

Standard– $15 per month

Professional– $40 per month

Premium– $60 per month

Also Read: Bookkeeping and Accountancy

4. Wave

Wave accounting software was founded in 2010 and the company is headquartered in Canada. It is simple, secure, and reliable software that is available for free to its users. The software allows small business owners to easily manage their income, payments, and expenses. It is free software and there are no setup fees, hidden charges, or monthly fees.

Features

• Keeps track of sales tax on your income and expenses
• Use a single account to run multiple businesses.
• see the performances of your business on the dashboard
• Tracking of income and expenses is unlimited
• A double-entry system that is fully functional
• Add an unlimited number of partners, collaborators, accountants, etc.

5. Sage 50Cloud

Sage 50cloud, created by the Sage Group, is specially designed for small and medium-sized businesses. It is a set of payroll and accountancy products. The software is an ideal choice for those who need small software for their organization. Likewise, it is also perfect for sole traders and freelancers. Sage 50Cloud assists you in tracking business metrics, accounting, and inventory, automating bookkeeping, and making invoicing simple, among other things.

Features

• Gives a real-time picture of the cash flow
• Create custom recurring invoices
• Manages payments
• Invoices and account reconciliation
• Automatic reconciliation
• Advanced inventory management
• Job costing etc.

Pricing

Get 40% off for each plan.

Pro– $33 per month

Premium– $52 per month

Quantum– $87 per month

6. Intuit QuickBooks

QuickBooks, which was introduced in 1983, is accounting software that was marketed and developed by Intuit. The software primarily benefits owners of small and medium-sized businesses. Moreover, the software is more popular among small firm owners who have no proper accounting training.

Features

• Manageable from anywhere
• Create custom & professional invoices
• Automatically updates transactions & statements of your bank
• Track billable hours
• accessible by multiple users
• cash flow management
• Free unlimited support etc.

You can visit the site to know the prices.

Recommended Read: Business Accounting and Taxation Courses in India

7. AccountEdge Pro

AccountEdge Pro is small and medium-sized business software that was founded in 1989 and offers a variety of features to its users. The business person can access the software on Mac and PC. It can assist with all aspects of the business. It can assist you with time billing, inventory, purchases, orders, sales, and invoicing, among other things.

Features

• Time tracking
• Expense tracking
• Account payable
• Account receivable
• Billing and invoicing
• Bank reconciliation
• Payroll management
• Case management etc.

Pricing

$499 one-time fee

8. Kashoo

If you’re looking for accounting software for small businesses, Kashoo is one of the options. Kashoo is a cutting-edge cloud software solution designed for small business owners. It has a team of about 20 people, but it has subscribers in 180 countries. Furthermore, it claims to simplify accounting for small businesses.

Features

• Income tracking
• Expense tracking
• Invoicing
• Payments
• Reporting
• Bank account connections
• Tracking projects
• Bank account connections
• Manages bills etc.

Pricing

For Truly Small Businesses- $20 per month

For Mid to Large Sized Businesses- $30 per month

You can get a 14-day free trial before purchasing the plan.

9. ZipBooks

ZipBooks is accounting and bookkeeping software that is cloud-based and designed to process credit cards, manage finances and invoices, and so on.

Features

• Simple accounting solutions
• Auto- categorization
• Bank reconciliation
• Accounts receivable
• Project accounting
• Taxes invoice
• Manage customers
• Time tracking
• Save receipts
• Vendor management etc.

Pricing

Smarter- $15 per month

Sophisticated– $35 per month

Accountant– custom pricing

Frequently Asked Questions

1. What is accounting software?

Accounting software is a computer program that is mainly used by accountants and bookkeepers to manage their firm’s transactions. It is a very important tool to manage accounting tasks, account balances, payroll, tax, projects, etc. It is an all-in-one tool that can handle a variety of tasks.

2. What features does small business accounting software have?

Accounting software provides a variety of features such as easy connection, reports and analysis, mobile-friendliness, payment processing, expense tracking, and so on.

3. How do I select accounting software for my business?

Well, there are some points we have mentioned above that will help you while choosing the right accounting software.

4. Why do small businesses need accounting software?

There are several reasons to use accounting software. We have mentioned above, you can read about them to learn more.

5. What is the best small business accounting software?

Accounting software for small businesses thrives, including Xero, Intuit QuickBooks, Fresh Books, AccountEdge, and others.

Conclusion

Software, with its various features and benefits, has earned a special place in the lives of accountants, bookkeepers, and business owners. The software handles everything that business owners, accountants, and bookkeepers require, including managing finances, tracking expenses, storing data, managing contacts, and automatically collecting data to be accessible from anywhere. As a result, there is plenty of accounting software available on the market for small, medium, and large-sized businesses. Furthermore, the software companies provide a free trial so that you can try it first and if it meets your needs, you can purchase their plans.