Small business accounting software is meant to provide an accountant with the ability to easily record financial transactions for small businesses with up to 20 employees (or less). Small businesses need a simple accounting system that gives them easy access to information about their business, and small business accounting software free excel at doing just that.
This directory lists some of the best-rated small business accounting software. Whether you have a small service business, a web-based business, a product-based business, or a manufacturing company, there is one for you. Some of these small business accounting software packages are free while others have a cost.
FreshBooks
FreshBooks helps users address recurring invoices and subscriptions easily. It supports online payment collection via credit cards, PayPal and Google Checkout. This piece of software integrates seamlessly with known business applications, allowing for streamlined processes. As it is a complete suite, the need for additional software is eliminated, providing users with absolute control over their financial operations all from a single dashboard.
To make the app even better, the vendor saw to it that its latest version as advanced functionalities to further improve the financial management capabilities of users. Its dashboard makes for easy customization while data security is not an issue as secure backups are regularly implemented to keep user information secure at all times. Charges are bound to be accurate using the system, which likewise allows the use of Android and iOS apps to track outside work times.
FreshBooks can be purchased in a variety of pricing models starting at $15/month.
What’s unique about FreshBooks?
- Simpler but powerful solution. The latest version of FreshBooks is designed to be simpler but advanced features were incorporated in the platform. A sleek interface now comes with the software and collaboration among team members is now promoted, resulting in higher work quality.
- Mobile optimized. FreshBooks comes with mobile add-ons for devices running on Android and iOS, enabling users to access information anytime, anywhere.
- Online payment. The tool’s time tracking capability is designed for use in billing, enabling businesses to get paid online through a variety of payment gateways.
- Impeccable invoice to payment. For small businesses, FreshBooks offers invoice to payment functionalities. Users can pinpoint the exact location where a customer opened an invoice email, very useful in catching customers who say the invoice never got to them.
- Billing history management. The platform hosts features that allow for the tracking of both past and current invoices. Unpaid invoices can be pulled out instantly using this functionality.
Intuit QuickBooks Online
Intuit’s QuickBooks Online is our choice for the best accounting software for small businesses due to its feature-rich cloud software, a wide variety of integrations, affordable pricing, and reputation. QuickBooks has served small businesses for more than 20 years, and for good reason. When you choose this accounting software, you get all the tools you need to support your operations now and in the future.
What led to QuickBooks Online being selected as our best pick for small businesses is that even its basic plan has lots of features other vendors charge extra for, including professional invoicing and the ability to accept payments, track expenses, and manage your business’s cash flow. QuickBooks’ higher-priced plans include batch invoices; business analytics; a dedicated support team; on-demand online training; and integrations with Bill.com, Salesforce, and HubSpot. With all of QuickBooks’ plans, you can snap photos of receipts and link expenses from your mobile device, integrate with several apps, and access customer support.
Another aspect of QuickBooks that makes it ideal for small businesses is the ability to connect with a live accountant. Cloud accounting software automates a lot of the tasks, but sometimes, you need the insight of an accounting professional. With QuickBooks’s Live Bookkeeping service, you get access to a bookkeeper who sets up the software for you, categorizes transactions, reconciles accounts, closes books monthly, and runs detailed reports. Another helpful feature with the service is Cleanup, which QuickBooks rolled out earlier this year. Customers can use the feature on a pay-per-use basis to reconcile historical accounts and categorize historical transactions. Pricing for the live bookkeeping service depends on your needs and requires an initial consultation (which is free) with a QuickBooks representative.
For small business owners who already have a trusted accountant, QuickBooks makes it easy (and free) for them to collaborate with you. The software enables you to invite an accountant who can work on your books for free. All the accountant needs to do is accept the invitation. You can remove access anytime.
QuickBooks offers small businesses of all sizes a full suite of features and functionality at affordable price points, but that’s not the only reason we selected it as the best accounting software for small businesses. We also like its reputation and adoption rate. If you work with an accountant or accounting consultant, chances are, they are familiar with QuickBooks. The same can’t always be said of other accounting software programs.
August 2021: QuickBooks recently launched QuickBooks Card Reader, a payment device designed for small business owners that integrate with QuickBooks Payments. QuickBooks said it launched the handheld, contactless card reader in response to a change in the way businesses have been processing payments since the start of the COVID-19 pandemic.
Intuit recently inked a deal to acquire Mailchimp, the popular marketing platform for small and medium-sized businesses. The $12 billion deal is part of Intuit’s mission to support small business growth. Once the deal closes, Intuit plans to integrate Mailchimp with QuickBooks. That means customers will be able to combine customer data with QuickBook’s purchase data, giving them powerful insights into their customers’ preferences.
April 2021: Intuit has partnered with DocuSign to enable business owners to sign estimates digitally without leaving the QuickBooks Online platform. Through QuickBooks’ new DocuSign eSignature Connector, small businesses can improve their turnaround times for estimates, automate the estimate process, and track the progress of a potential contract. QuickBooks said customers can save $36 on average per contract with the service.
May 2021: Intuit recently announced QuickBooks Online’s integration with Docyt, an AI-powered tool that works in conjunction with the accounting software. Through Dorcy, business owners can pay bills, manage expenses and financial documents, capture receipts, and run different reports from one central location. With this integration, the company aims to reduce the number of apps accountants and business owners have to manage.
Expensify
With Expensify, your only task is to scan receipts (or, honestly, any other piece of paper with a number on it)—the software automatically generates an expense report, and once it’s approved, you can reimburse the right employee within 24 hours. Expensify also generates expense-specific reports that simplify tax time for you and your employees.
Expensify isn’t an all-in-one online accounting solution—it’s a targeted expense-tracking app. If you’re looking for more thorough accounting and bookkeeping software, try Wave or QuickBooks. But if you could use some help keeping your expenses in order, Expensify’s free plan is a good option.
Conclusion:
If you run a small business, you need to keep your financials in order. You deserve online accounting software that is easy to use and still packed with useful features. We found the best small business accounting software solutions for you. Just browse through our chart of top picks of small business accounting solutions and enjoy an easy-to-read review where you can easily compare all your options side by side.