The way you manage your finances can make or break your business. Choosing the right accounting software can transform how you manage invoices, payroll, and reports, turning complex data into actionable insights and setting your company apart from the rest. This guide will walk you through ten of the best accounting software for small businesses, helping you find the perfect fit for your team.
Top Accounting Software Options for Small Businesses
1. QuickBooks Online
QuickBooks Online is a leader in the industry known for its comprehensive features and user-friendly interface. They’re a go-to option for smaller companies that want to hang onto the same accounting software as they scale. In addition, you can use Quickbooks features to automate some of your accounting team’s biggest tasks, including billing, tax estimates, and more.
Key Features: Automates tasks such as billing, and tax calculations; integrates with other tools seamlessly.
Best Accounting Software for Small Businesses That: Want a straightforward, industry-grade solution for all basic accounting needs.
2. FreshBooks
FreshBooks has a simple, intuitive interface that makes it ideal for freelancers and agencies that manage billing and invoicing with multiple clients. If you run a smaller, service-based company, FreshBooks is a perfect option for your team.
Key Features: Customizable invoices, automated expense tracking, and time tracking capabilities.
Best Accounting Software for Small Businesses That: Need efficient invoicing and time tracking features.
3. Xero
Xero is perfect for businesses that need real-time financial data accessible from anywhere. Its strong mobile app complements its easy-to-use desktop interface and gives you plenty of integration capabilities with the other apps that your finance team uses.
Key Features: Real-time financial reporting, easy integration with over 800 apps.
Best Small Business Accounting Software For: Companies that require on-the-go access to their financial data.
4. Sage Business Cloud Accounting
Sage Business Cloud Accounting is known for its comprehensive client support and extensive features that cater to both new and established businesses. Whether you need to manage invoices and pay contractors or make accurate, detailed financial statements, Sage can help.
Key Features: Direct bank feeds, invoice management, and cash flow forecasting.
Best Accounting Software for Small Businesses That: Prefer a blend of simplicity and powerful features.
5. Wave
Wave has no monthly subscription fee, making it highly attractive for startups and sole proprietors. If you need to collect payments from a small number of clients and are okay with some fees built into the platform, Wave can be an extremely affordable and accessible tool for your team.
Key Features: Free core services like invoicing and accounting; charges for payroll and credit card processing.
Best Small Business Accounting Software For: Startups and small businesses needing basic accounting tools without the financial commitment.
6. Zoho Books
Zoho Books is part of the larger suite of Zoho applications designed for business management, providing a seamless integration with a range of operational tools. They can help you automate tasks and easily integrate your bookkeeping with other tasks within Zoho’s suite.
Key Features: Automated workflows, comprehensive tax compliance tools, and multi-currency support.
Best Business Accounting Software for Small Businesses That: Are looking for extensive automation and integration.
7. Kashoo
Kashoo is straightforward software that excels in basic accounting functions with an easy-to-use interface. They offer some of the best accounting software for a small business that needs simple, streamlined accounting with minimal extra details and features.
Key Features: Simple invoicing, expense tracking, and real-time reporting.
Best Software For: Small businesses and freelancers who want simplicity and clarity in their accounting.
8. GoDaddy Bookkeeping
GoDaddy Bookkeeping is tailored specifically for e-commerce businesses and is ideal for those who sell on platforms like Amazon and Etsy. If you don’t have a brick and mortar shop and want to integrate your bookkeeping app with your e-commerce platform, GoDaddy makes your work easier than ever.
Key Features: Direct integration with e-commerce platforms, simple tax estimations, and invoicing.
Best Software For: Small e-commerce businesses needing straightforward, e-commerce-centric accounting software.
9. FreeAgent
FreeAgent is designed particularly for small businesses and freelancers, providing robust tools to manage all of the financial details of a smaller-scale operation. In addition to bookkeeping, FreeAgent offers tools for payroll, project management, tax timelines, and more.
Key Features: Project management features, automatic bank feeds, and tax timeline.
Best Software For: Freelancers and small businesses needing detailed project tracking alongside financial management.
10. AccountEdge Pro
AccountEdge Pro offers a comprehensive, desktop-based accounting solution with both basic and advanced features to handle different business needs. Easy to customize and tailor to your company’s needs, AccountEdge is best for those who want to take a more traditional approach to bookkeeping and use a computer rather than a smartphone or tablet.
Key Features: Inventory management, payroll, and time billing.
Best Software For: Businesses looking for a desktop solution with strong reporting and customization capabilities.
FAQs About Accounting Software for Small Businesses
What should I look for when choosing accounting software?
Key factors to consider include the specific needs of your business, the ease of use of the software, cost, scalability, and the level of customer support that a program offers you.
Can I switch from one accounting software to another if my business needs change?
Most accounting software solutions offer data migration tools to help you transition from one system to another seamlessly. In addition, you can always cancel a subscription if you reach the point when it is time to hire an accountant for your company.
Is cloud-based accounting software secure?
Reputable cloud-based accounting solutions make use of robust security measures to protect your data. However, always make sure the software complies with industry-standard security protocols before signing up.
Are there free accounting software options?
Some platforms like Wave offer free core accounting features, though they might charge for additional services like payroll. Be prepared for some fees when receiving payments through free platforms.