5 Proven Best Accounting Software Tools for Small Businesses

Small businesses have many things to worry about—finding new customers, pleasing existing ones, and making a profit, among other things.

In all the hustle and bustle, bookkeeping and accounting are often neglected, especially when your best business ideas are just budding. However, the mismanagement of books can lead to the downfall of your business.

Luckily, most great accounting software programs are designed for starting businesses like yours. In this article, we’ll explore five of the best options available.

Whether you’re ready to tackle your books yourself or need help getting started, one of these programs will fit the bill. Read on to find out more!

#1. FreshBooks for Service-Based Businesses

As a successful small business owner, you understand that money management is key. That’s why FreshBooks is committed to making it easy for you to manage your finances and get paid on time.

With FreshBooks, you can create invoices in just a few clicks, track time and expenses, and receive payments electronically so you can provide the best services. Best of all, you can use FreshBooks for a month without commitment.

Features

• Unlimited, customizable invoices
• Unlimited expense tracking
• Accept credit cards online
• Time tracking
• Multi-currency invoices
• ACH bank transfer
• Checkout links
• 200+ third-party app integrations

Prices

• Lite: $4.50/month
• Plus: $7.50/month
• Premium: $15.00/month
• Select: Custom pricing

Highlights

• Cloud-based
• User-friendly interface
• Cost-effective
• Advanced invoicing features

Lowlights

• Limited mobile app features
• Limited bookkeeping and inventory management

#2. QuickBooks Online for Scalable Small Businesses

QuickBooks is a bookkeeping business software solution created by Intuit. It allows you to monitor your finances, including invoices, expenses, and inventory. This advanced accounting tool can be used not just by small businesses but by large companies as well.

Features

• Scan and organize invoices
• Customizable reporting
• Inventory management
• 24/7 online support
• Payroll management
• 650+ third-party app integrations
• Mobile app
• Cloud-based
• Ecommerce sales tax

Prices

• Simple Start: $25/month
• Essentials: $50/month
• Plus: $80/month
• Advanced: $180/month

Highlights

• Robust accounting features
• Cloud-based
• Easy-to-use dashboard
• Adaptable for fast-growing businesses

Lowlights

• Pricey for small business owners
• There’s a learning curve

#3. Xero for Micro-Business Owners

Meanwhile, Xero gives even smaller businesses the tools they need to manage their finances. The software is designed to be easy to use, with an intuitive interface that makes it simple to track income and expenses, invoices, and bills. This software also allows businesses to connect with their bank and track their cash flow.

Features

• Automated invoices
• Bank reconciliation
• Customizable reports and dashboard
• Inventory management
• Project tracking
• 1,000+ third-party app integrations
• Multi-currency
• Cloud-based

Prices

US businesses:

• Early: $12/month
• Growing: $34/month
• Established: $65/month

Businesses outside North America:

• Starter: $20/month
• Standard: $30/month
• Premium: $40/month

Highlights

• Unlimited users
• Available outside North America
• Effortless setup
• Easy integration

Lowlights

• No phone support

#4. Zoho Books for the Self-Employed

Zoho Books is accounting software that is simple yet scalable. It is ideal for those who are self-employed and wanting to be small business owners.

Plus, for 14 days, you can try out Zoho for free. After that, you can select from their in-depth subscription plans.

Features

• Multi-lingual invoicing
• Recurring payments and invoices
• Bank and credit card statement imports
• End-to-end accounting
• 50+ third-party app integrations
• Tax compliance and auditing reports
• Mobile app

Prices

• Free: $0
• Standard: $15/month
• Professional: $40/month
• Premium: $60/month
• Elite: $120/month
• Ultimate: $240/month

Highlights

• Easy collaboration
• Automated payment reminders
• Free plan available
• Multiple users on all paid plans

Lowlights

• No payroll services

#5. Wave for the Best Free Accounting Software

With Wave, you can create professional invoices in minutes without any experience or design skills required.

The software is intuitive and user-friendly, with everything you need to create invoices quickly and easily.

Wave also offers a range of features to help you manage your finances, including tracking payments and recording expenses.

Plus, with Wave’s free mobile apps, you can create and send invoices on the go. There’s no need to pay for expensive invoicing software when Wave offers everything you need for free.

Features

• Completely free to use
• Unlimited transactions
• Unlimited billings
• Unlimited users
• Double-entry accounting
• Customizable invoicing
• Mobile app

Highlights

• Free accounting, invoicing, and receipt making
• Unlimited tracking of income and expenses
• Quick setup
• Easy bank and credit card connection

Lowlights

• No phone support
• Not scalable

Final Thoughts

If you’re a small business owner, you know how important it is to keep track of your finances. The right accounting software will save you money, time, and effort, which hopefully brings in more income and reduces expenses.

Here are five of the proven best accounting software tools for small businesses that you should take a look at.

Of course, this is just a starting point; every business is different and will need different features and functionality from their accounting software—it’s up to you to decide which software is most suitable for your company.

Once you’ve selected a few software programs, don’t forget to try them out yourself. Check out our other articles for tips on choosing the right software for your business, setting up your books correctly, and more.

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