This tutorial compares the best Accounting Software for small business owners. Select the Bookkeeping Software that meets your needs:
Accounting software saves time and hassles in recording financial transactions. Using the accounting app allows accounting personnel and business owners to focus on strategic aspects of managing a business. It automates the task of generating financial reports that help business owners to make an informed decision regarding the business.
What You Will Learn:
- Accounting Software For Small Businesses
- List Of Top Accounting Software
Accounting Software For Small Businesses
Selecting an accounting app is not easy. There is a plethora of different accounting software available with diverse features. In this guide, we have reviewed 11 best accounting tools including information about price, best features, and target users.
FAQs About Business Accounting Software
Q #1) What is an accounting application?
Answer: An accounting application is used for recording financial transactions. The software saves time and effort in managing expenses and revenues. You can print reports to get a snapshot of the financial position of your company at a particular period.
Q #2) What are the features of accounting software?
Answer: These come with different features. The main features of an accounting app for small businesses include invoices, expense management, tax calculation, and bank reconciliation.
Q #3) What are the benefits of accounting software?
Answer: Using an accounting application saves time in managing financial data. The software can automatically generate accounting data. It allows business owners to focus on more important aspects of running the business.
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Q #4) How to use an accounting application?
Answer: Anyone that knows how to use a windows application can use accounting software. Accounting software allows you to enter transactions using a keyboard and mouse. If you have a touch screen, you can touch the screen and enter fields using the keyboard.
List Of Top Accounting Software
Here is a list of popular Business Accounting Software:
- Sage 5cloud
- Zoho Books
- QuickBooks Intuit
- GoDaddy Bookkeeping
Comparison Of Top 5 Bookkeeping Software
|Tool Name||Best For||Features||Price||Free Trial||Ratings
|Wave||Invoice, accounts, and cashflow management for free.||· Invoice management|
· Cash flow management
|Bill.com||Smart AP and AR automation and new bill payment capabilities.||Standard approval workflows, log payment-related activities, etc.||It starts at $39 per user per month.||Available||5/5|
|FreshBooks||Independent contractors and small business owners.||· Payment and invoice management|
· Automated transactions
· Late fees scheduler
· Automated bank import
|Lite ($6 per month), Plus ($10 per month), Premium ($20 per month)||30 days||4/5|
|Xero||Small and medium-sized businesses.||· Track expenses|
· Sales invoice
· Pay bills
· Multiple currency support
|Starter ($20 per month), Standard ($30 per month), and Premium ($40 per month)||30-day trial||5/5|
|Pabbly||Basic accounting and expense tracking for small business owners.||· Recurring billing and subscriptions|
· Invoice management
· Expense Tracking
|Starter ($19 per month), Rookie ($37 per month), Pro ($57 per month), and Advanced ($79 per month).||14 days||5/5|
|Sage50cloud||Basic and advanced accounting for small and medium sized businesses.||· Inventory|
· Cash flow
|Pro Accounting ($50.58 per month), Premium($78.25 per month), Quantum Accounting ($131.66 per month)||30 days||4/5|
Review of the small business accounting software:
Best for invoice, accounts, and cash flow management for free.
Wave is free accounting software for small businesses and individuals. The software can be used for basic accounts management. You can use the application to track expenses, cash flow management, and sales and purchase management.
- Invoice management
- Cash flow management
Cons: Lack of advanced features.
Verdict: Wave is a simple accounting package that is completely free. It has features that will meet the needs of most small business owners and self-employed individuals. You won’t have much to complain about the accounting software since it is free.
Best for smart AP and AR automation and new bill payment capabilities.
Bill.com offers a cloud-based solution to automate Accounts Payable and Accounts Receivable. It contains new bill payment capabilities. It provides an integrated platform that will let you connect your payment accounts and accounting tools for automating payments from start to finish.
- Bill.com offers smart features like automatic data entry.
- It can detect duplicate invoices.
- It supports new payment options like ACH, virtual cards, international wire transfers.
- It logs the payment-related activity.
- It provides features to set up approval workflows and custom roles.
- As per the reviews, the reports features need improvement.
Verdict: This cloud-based software is the best fit for small to medium-sized businesses. It will simplify international payments. It can automate your payments from the start to finish. It will increase efficiency and give you more control.
Price: For businesses, Bill.com offers four pricing plans i.e. Essentials ($39 per user per month), Team ($49 per user per month), Corporate ($69 per user per month), and Enterprise (Get a quote). For Accounting Firms, the solution is available at $49 per month. A free trial is available to try the software.
Best for independent contractors and small business owners.
FreshBooks is an affordable accounting software for small business and self-employed individuals. There are lots of features for recording, monitoring, and managing expenses and invoices.
- Payment and invoice management
- Automated transactions
- Late fees scheduler
- Automated bank import
Cons: Lack of inventory management features.
Verdict: FreshBooks is a simple to use accounting software. The application has all the basic features required for managing the software. It is also affordably priced for small businesses and self-employed individuals.
Price: FreshBooks is available in different packages. You can select Lite ($6 per month), Plus ($10 per month), Premium ($20 per month), and custom packages. You can try the software for free for up to 30 days.
Here are the details of the different FreshBooks packages:
Best for small and medium-sized businesses.
Xero is a complete accounting package that has dozens of accounting features best for small and medium-sized businesses. The accounting software allows you to reconcile accounts, pay bills, track expenses, and create sales invoices.
- Track expenses
- Sales invoice
- Pay bills
- Multiple currency support
Cons: Limited features
Verdict: Xero does not have a lot of features. But most businesses will find the features adequate for their needs.
Price: Xero is available in three packages. The Starter package costs $20 per month and features 5 invoices, 5 bills, 20 bank reconciliation, bills, and receipts management. The Standard and Premium packages cost $30 and $40 per month, respectively.
These packages have additional features such as unlimited invoices, bank reconciliations, bills, and receipts management. You can try the software for 30 days.
Best for basic accounting and expense tracking for small business owners.
Pabbly boasts of different account management features. The software has all the features required for managing financial transactions by small business owners. It supports reports, invoices, workbook events, and other features.
- Recurring billing and subscriptions
- Invoice management
- Expense Tracking
Cons: Limited Accounts feature
Verdict: Pabbly is a solid accounting tool with great features. It is suitable for independent contractors and small business users.
Price: You can select from four different packages. The Starter ($19 per month), Rookie ($37 per month), Pro ($57 per month), and Advanced ($79 per month). You can enjoy unlimited features with a free 14-day trial.
#6) Sage 50cloud
Best for basic and advanced accounting for small and medium-sized businesses.
Sage 50cloud is a great accounting application suited for small and medium-sized businesses. It is a hybrid-desktop app with a cloud component for data storage. A great feature of the software is the add-ons that extend the features of the software. The app also features mobile payments so that you can easily pay bills using your smartphone.
- Cash flow
Cons: Expensive packages
Verdict: Sage 50cloud is a simple accounting app that lets you track expenses and pay bills. You can use the app to track finances and calculate taxes.
Price: Sage 50cloud is available in three packages: Pro Accounting, Premium Accounting, and Quantum Accounting. The Pro Accounting package costs $50.58 per month and contains features such as bills management, purchase orders, job costs, payroll, automated bank reconciliation, and remote access.
The Premium feature costs $78.25 per month that contains additional features such as job costing, budgeting, and auditing trail. The Quantum Accounting package costs $131.66 per month that comes with advanced features like role-based security, job insights, and multiple company support.
You can try the software for 30-days to test the functionality of the app.
Website: Sage 50cloud
#7) Zoho Books
Best for small business owners who want to track expenses and automate workflows.
ZohoBooks is comprehensive accounting software for small businesses. The software has a lot of features that will meet the needs of different sizes of businesses and individuals. It supports multiple contacts, users, and workflows. Additionally, the software application can integrate with dozens of popular CRM and eCommerce apps.
- Invoicing and expenses
- Tax payments
Cons: No multi-currency support
Verdict: ZohoBooks is one of the best value small business accounting tools. The basic version of the software is affordable and packaged with features. Businesses with advanced accounting features can select the professional version.
Price: ZohoBooks is available in three packages. The Basic package is $9 per month and comes with features such as 50 contacts, 2 users, 5 automated workflows, bank reconciliation, custom invoices, expense, recurring transactions, sales approval, and budgeting.
The Standard version costs $19 per month that supports 500 contacts, 3 users, 10 workflows, and has additional features like bills management, vendor credits, reporting tags, purchase approval, and Twillo integration.
The Premium package costs $29 per month that supports 500+ contacts, 3 users, 10 workflows, and comes with advanced features like purchase orders, sales orders, stock tracking, custom domain, and vendor portal. You can also try the software for 14-days.
Website: Zoho Books
Best for small business accounting and bookkeeping for Mac users.
AccountingEdge is one of the oldest accounting software established in 1989. The exclusive Mac desktop accounting software is the most complete solution for small businesses. The software supports invoicing, reporting, time billing, inventory management, and more.
- Sales tax
- Project Management
- Fixed asset tracking
Cons: Supports only Mac desktop.
Verdict: Most Mac users praise the software for its usability and features. The best feature of the accounting software is the plethora of add-ons that extend the feature of the application.
Price: The software is offered in two packages. The AccountingEdge Pro costs a one-time fee of $499. It supports up to 10 users and has features such as general ledger, banking, time billing, inventory, payroll, and credit card payments.
The Enterprise ERP package is for larger businesses that want a customizable accounting ERP solution. You have to contact the company for a free quote. Moreover, you can try the software for up to 30 days with no limitations to testing the software functionalities. Here are the details of the basic and enterprise versions.
#9) QuickBooks Intuit
Best for accounting, invoicing, inventory management, and taxation for self-employed consultants, and small and medium-sized businesses.
QuickBooks Intuit is a highly popular small business accounting software using by millions of businesses. The software offers a comprehensive list of features that makes it ideal for small and medium-sized businesses. There is also a limited feature software designed for self-employed and contractors.
- Multi-currency support
- Integration with PayPal, Shopify, Square, and dozens of other apps
- Slow response during peak times
- Poor navigation
Verdict: QuickBooks is one of the most popular accounting software for small businesses. The software has loads of features that are targeted to different users.
Price: QuickBooks is offered in three versions. The Simple Start package costs $20 per month that comes with features such as record financial transactions, invoicing, store receipts, track mileage, integration with banks, track GST, cash flow planner, and payroll for 4 staff.
The Essentials package costs $35 per month that contains all the features of the basic package plus additional features like payroll of 7 staff, multi-currency support, managing bills and suppliers, recurring transactions, and up to 3 users support.
The Plus package costs $50 per month that comes with advanced features like payroll of up to 10 staff, 5users support, inventory tracking, project tracking, and budget planner.
Website: QuickBooks Intuit
Best for self-employed and small businesses for creating invoices, tracking bills, and managing vendors.
- Mobile app
- Bills and payment management
- Automatic backups
- Tax calculations
- Multi-currency support
- Limited integrations
- No support for mobile apps
Verdict: Kashoo has lots of features that are not present in much bookkeeping accounting software. The software can save time in recording and tracking expenses. It may not be the cheapest bookkeeping software. But the cost is worth every penny.
Price: Kashoo has a simple pricing structure. The monthly subscription costs $19.95 while the annual subscriptions cost $16.65 per month. You can try Kashoo for 14-days to test the usability of the software. You can opt for a monthly or annual subscription.
Best for accounting, invoicing, inventory management, and CRM for different types of users.
One Up is a unique accounting tool as it offers a load of unique features in addition to bookkeeping such as CRMs, and lining bank accounts, and bank reconciliation.
- Unlimited package is costly
- Limited reporting option
Verdict: One Up has a lot of features that make it ideal for different people. Sole proprietorship and small businesses can select a package that suits their requirements. The software is particularly praised for its ease of use. But reviewers have complained that the reporting system is limited.
Price: Pricing of One Up range from $9 to $169 per month. There is also a free 30 day trial with unlimited features and customer support so that you can fully test the bookkeeping software.
The Self version that costs $9 per month is targeted to self-employed individuals, including freelancers and contractors. The Pro version costs $19 per month that supports 2 users. It is ideal for business partners or sole proprietorship. The Plus version costs $29 per month, and it features CRM and supports 3 users. The Team package costs $69 per month that supports 7 users.
It is suitable for small businesses. Last, the Unlimited package costs $169 per month that supports unlimited users. Details of the price packages are as follows:
#12) GoDaddy Bookkeeping
Best for calculating financial transactions and tax calculations for freelancers and self-employed contractors.
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Most people know GoDaddy as a website host service provider. But the company also offers online bookkeeping software for tracking sales and expenses and calculating taxes. The accounting software integrates with eBay, Etsy, and Amazon that makes it great for online business owners.
- Calculation of quarterly taxes
- Integration with Amazon, Etsy, eBay, and Paypal
- Accept mobile payments
- Invoice and estimates
- Track mileage and time
- Project tracking not available
- Lacks bill payment feature
Verdict: The bookkeeping software is designed with the needs of the sole proprietor and LLC businesses. The basic version is inexpensive and has all the features that you require to record and track financial data. Overall, this is a great value for money accounting software.
Price: GoDaddy Bookkeeping is available in three versions. The Basic Get Paid version costs $4.99 per month that features invoice and estimates, accept debit or credit card payments from mobile, record time and mileage, and current-year financial report.
The Advanced Essentials version costs $9.99 per month that apart from all the features of the basic version also offers unlimited financial reports, tax worksheets, bank and credit card transaction import, and integration with Amazon, Etsy, eBay, and PayPal. The Premium version costs $14.99 per month that supports an additional feature of recurring invoices.
The following table shows details of the different packages offered to customers:
|$4.99 per month|
Track time and mileage
Invoice and estimates
Accept credit and debit card payments from mobile
Current year business report
|$9.99 per month|
All features in Essentials plus unlimited period business reports, tax worksheets, integration with Amazon, Etsy, eBay, and PayPal
|$14.99 per month
All features in Essentials plus the ability to schedule and send recurring expenses
Website: GoDaddy Bookkeeping
The guide contains a review of accounting tools that can serve the requirements of different users. You can select accounting software that meets your exact accounting requirements.
If you want a small business accounting software, you should select QuickBooks, Xero, Zoho Books, and Sage 5 cloud. Self-employed individuals can go for free Wave accounting software. If you are a Mac user, the best accounting software is Accounting Edge.
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- Time taken to research this article: We spent 8 hours researching and writing on the topic so that you can have an easy time making an informed decision about the best small business bookkeeping software.
- Total tools researched: 22
- Top tools shortlisted: 11