Some software offers everything you need with no bells and whistles. Its one job; accounting. If you are not sure what type of accounting software will best suit your business needs, try out these great accounting software packages. They all offer great features like easy invoicing, inventory management and tax matters as well as great customer service and award winning platforms that offer simplicity and ease of use.
This is a short list of accounting software programs designed specifically for small business. These programs are created for smaller business owners. If you are looking for the best accounting software of the year than check out this list.
QuickBooks Online
QuickBooks Online is the best overall accounting software for small businesses of those reviewed. Not only do the majority of small business accounting professionals use QuickBooks Online, but there are also endless online training resources and forums to get support when needed. All accounting features can be conveniently accessed on one main dashboard, making bookkeeping more fluid and efficient.Pros
- Scalable
- Commonly used by accounting professionals
- Integration with third-party applications
- Cloud-based
- Mobile app
Cons
- Upgrade required for more users
- Occasional syncing problems with banks and credit cards
Intuit’s QuickBooks Online has been the most common accounting software used by small businesses and their bookkeeping and tax professionals. The software is cloud-based and can be accessed through a web browser or through the mobile app.
After the 30-day free trial, the four options for subscription plans include: Simple Start at $25 per month, Essentials at $40 per month, Plus at $70 per month, and Advanced at $150 per month. Typically there is a significant discount offered for the first few months, and some accountants are able to offer wholesale pricing to small businesses, as well.
The monthly subscription for this software can be upgraded as a business grows, and there are many customization options with the mobile app that can be used to receive payments, review reports, capture an image of a receipt, and track business mileage. For businesses looking for a payroll solution, QuickBooks Payroll fully integrates with QuickBooks Online.
Each plan offers more advanced features like inventory management, time tracking, additional users, and budgeting. Most service-based small businesses will find that Simple Start meets all of their needs. For product-based small businesses, Essentials or Plus will have more options for inventory and customizations. The Advanced subscription is a new offering and provides robust financial reporting that is powered by Fathom. Fathom is an elite online financial report analysis tool used by many large companies all over the world.
All plans allow integration with third-party apps such as Stripe or PayPal. QuickBooks Online’s app store breaks down all of their apps by function and provides helpful examples of the benefits of each app.
Sage Accounting
If you own a one-person business, then Sage Accounting Start should definitely be at the top of your accounting tools list. For starters, you can record income and expenses and perform bank reconciliation for only $10 per month. And if you need more functionality, then you can upgrade to Sage Accounting—at the still quite low price of $25 a month—to get an overview of your business’s financials, cash flow forecasting, and bill vendors.
Sage Accounting is especially helpful if you’re working with freelancers or contractors for your small business, since their project management capabilities are an added bonus.
Xero
We love Xero for its robust features and low starting price. For just $11 a month, Xero lets you send custom invoices, reconcile bank transactions, capture receipts for easier record keeping, and track inventory.
But as a small-business accounting tool, Xero really stands out on the collaboration front. Unlike nearly every other accounting solution (including QuickBooks and FreshBooks), all of Xero’s accounting and inventory software plans include unlimited users. You don’t have to pay extra to delegate responsibilities like bank reconciliation or expense tracking to another team member: time-saving collaboration is built into your price.
However, Xero’s $11 a month plan limits you to entering only five bills and sending only 20 invoices a month. You can send unlimited invoices and quotes with only the Growing and Established plans, which start at $32 and $62 a month, respectively. Plus, you can only track expenses with the priciest plan—both QuickBooks and FreshBooks offer small-business expense tracking up front.
FreshBooks
The most crucial accounting need for most service-based businesses is invoicing. FreshBooks offers more customizations for invoicing compared to other accounting software. Its primary function is to send, receive, print, and pay invoices, but it can also take care of a business’ basic bookkeeping needs as well. This accounting software makes it easier for service-based businesses to send proposals and invoices, request deposits, collect client retainers, track time on projects, and receive payments.Pros
- Cloud-based
- User-friendly interface
- Third-party app integration
- Affordable
- Advanced invoicing features
Cons
- No inventory management
- No payroll service
- Mobile app has limitations
Founded in 2003 in Toronto, FreshBooks started as just an invoicing software. Over time, more features have been added and FreshBooks now has over 500 employees. There are four different plans, and businesses can get a 10% discount if they choose to pay yearly, rather than monthly. Additionally, FreshBooks offers a 60% off discount per month for six months. The four plans are: Lite at $6 per month, Plus at $10 per month, Premium at $20 per month, and Select, which is a custom service with custom pricing.
The main difference between the four plans is the number of different clients that are allowed to be billed per month. In the Lite plan, up to five clients can be billed per month. In the Plus plan, up to 50 clients can be billed per month. In the Premium plan, unlimited clients can be billed per month. The Select plan also does not have a limitation on the number of clients that can be billed per month, but adds unique features. It costs an additional $10 per month for multiple team members to use the accounting software and it costs an additional $20 per month for the advanced payment feature, which allows users to charge a credit card in real-time or set up a recurring credit card charge for a client.
There are many third-party app integrations available, such as Shopify, Gusto, Stripe, G Suite, and more. A unique feature of FreshBooks is that invoices can be highly stylized and customized for a professional look and feel. FreshBooks is a great tool for budgeting out projects, sending estimates or proposals, and collecting customer payments.
Sighted
Sighted has it all for small business owners in need of some accounting help. As one of the best accounting tools for freelancers or solo-entrepreneurs, Sighted is a simple yet powerful tool. Use it to customize your invoices and quotes, track all your expenses, integrate your online payments system, and manage your client and merchant information.
If you’re a small business owner who doesn’t want to break the bank with heavy-duty small business accounting software but you’re still looking for a full suite of accounting tools, Sighted will win out on power, simplicity, and affordability.
Sighted has three different pricing levels, doesn’t require long-term contracts, and offers monthly, quarterly, or annual payment. Their most popular accounting tool—the Premium subscription—starts at $4.99 per month. With this package, you’ll get unlimited invoices, quotes, and receipts, unlimited expenses, single user access, 100 client capacity, online payments systems, and access to profit & loss reports.
Conclusion:
Running a small business is a balancing act, and a hefty amount of the bookkeeping falls on your shoulders. That’s where accounting software comes in—it can help you simplify your work and make tax time easier. So which accounting software should you try? See our list of the best accounting software to find the perfect fit for your small business.