Accounting software helps small business owners in tracking receivable and payable accounts. A plethora of small business accounting software with different capacities and price ranges is available. The number of employees and the kind of industry determine the choice of appropriate accounting software. The following list consists of the best accounting software for a small business.
QuickBooks Online: This cloud-based software is accessible via the mobile app or/and a web browser. Even a business owner without prior accounting experience can access the software easily. It offers numerous online training forums and resources to obtain support if required. You can access all accounting features on a single dashboard. Therefore, bookkeeping has become more efficient and fluid on QuickBooks Online. Its pricing tiers range from $12.50 to $90 every month.
Pros
- Cloud-based
- Integration with third-party apps like PayPal
- Scalable
- Mobile app
Cons
- Needs to be upgraded as more users join
- Occasional errors during syncing with credit cards and banks
FreshBooks: Invoicing is a vital requirement for all businesses that cater to services. The primary function of FreshBooks is to receive, send, print, and pay invoices. Moreover, it serves general bookkeeping requirements. This software makes it easy to track time with a Chrome browser extension. Integration with other products such as Gusto and Google Workspace is quite easy with this small business accounting software. FreshBooks comes at $4.50 every month for businesses with a few billable clients.
Pros
- User-friendly interface
- Premium invoicing features
- Reasonable pricing
Cons
- Lacks payroll service option
- The mobile app has a few limitations
Wave: Using this accounting software, you can send invoices without running payroll. When a year ends, an accountant can pull relevant reports from Wave for preparing the tax returns of a business. Since Wave offers extra security for data backups, one can connect their bank account(s) for synchronizing expenses anytime and anywhere. Multiple users can use the software. The company handles its payroll taxes in some states only.
Pros
- Free invoicing, accounting, and receipt scanning features
- No limits on transactions
- A single account can run several businesses
Cons
- Limited integrations with third-party apps
- Only 14 states can access full-service payroll features
- Higher fees for ACH payments and credit cards
Xero: If you are looking for simple accounting software, Xero is an ideal option. It has a clean interface and is entirely integrated with a third-party payroll feature. Small businesses can use Xero to collect online payments through its integration with GoCardless and Stripe. Several users including employees, team members, and accountants can collaborate on Xero. Its two-step authentication procedure keeps data secure. A Xero plan is available with a 30-day free trial for multiple users.
Pros
- Easy-to-use inventory management
- Third-party app marketplace
- Cloud-based
- Mobile app
Cons
- Limited reporting options
- Limited customer service
- Fees imposed on ACH payments
A user needs to consider cost, ease of use, scalability, reputation, and accounting features before choosing accounting software for a small business. So, consider all significant factors before making a decision.
