With so many different accounting software options available, it can be overwhelming to pick one. Having used several top-rated solutions for my business over the past few years I decided to write a list of my favourite accounting software options. This article compares and contrasts these top products in relation to price, user interface, reporting and scalability.
Finances. Love them or hate them, they’re a core pillar of any successful company. And, when you work as part of a small to medium-sized business, you’re sure to have some interaction with those numbers – whether you’re the one actually responsible for keeping an eye on the money or not.
Maybe your only involvement is something as limited as filing your own expense report or submitting invoices from contractors or vendors that you work with.
Or, perhaps you’re far more in touch with the finances – such as being an owner of the business or someone who works in the accounting department.
Whatever camp you fall into, this rule holds true: Solid accounting software will go a long way in keeping things streamlined and organized within your company. And, the better handle you have on the numbers, ultimately the more successful you’ll be.
With so many options out there, how can you zone in on the accounting software or solution that’s the best fit for your small or medium-sized business? We’ve rounded up five solid choices for you right here so that you can weigh your options and settle on the best tool for you.
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1. Intuit QuickBooks
When you think of the term “accounting software,” QuickBooks is likely one of the first to pop into your mind. And for good reason – QuickBooks has so many features and tools that will help you stay on top of your accounting and invoicing.
QuickBooks has different plans ranging from self-employed to small business or enterprise, which is the end of the spectrum you’ll want to aim for when you aren’t an independent contractor.
The software does everything you’d expect it to do – from tracking income and expenses to running payroll to generating helpful reports so that you can get a better grasp on how the company is performing financially.
Yes, QuickBooks is chock-full of features that you’ll find useful. But, arguably one of the best things this software has going for it is its level of user-friendliness. The tool is comprehensive, but not bloated, cluttered, or difficult to navigate. Everything is intuitive, which means nobody on your team will be wondering about where and how to get the information they need.
Additionally, with solutions like a mobile app and QuickBooks online, you can have access to your important accounting information wherever you are – and not just on your desktop.
Price: Small business plans begin at $24 per month.
2. Xero
Xero is another popular accounting option for many businesses. It offers many of the same features as QuickBooks and places a high value on mobility and accessibility – meaning you can download the Xero app for both iOS and Android.
Much like any other accounting software, you’ll find the functions, reports, and tools that you would expect to see to keep your business running.
One great advantage of Xero is that it provides functionality to have numerous different users access your account at no additional charge, which is great if you have several different people (such as a CPA and different employees) who would need to get their hands on that software.
When comparing Xero to QuickBooks, it’s important to note that – since Xero isn’t quite as well-established as QuickBooks – there aren’t nearly as many advisors who can help you. That’s an important consideration to make, particularly if you’re hoping for a lot of help in getting up and running.
While Xero plans begin at a cheaper price point than QuickBooks, you’ll need to pay extra to have access to features like payroll. Xero does offer a 30-day free trial for those who are interested in trying it out.
Price: Plans begin at $9 per month.
3. MYOB
MYOB (which cleverly stands for “Mind Your Own Business”) is a solution that you might not be as familiar with. Based in Australia, it’s another viable accounting option for many small to medium-sized businesses, particularly those who also operate out of Australia.
This is because MYOB offers features that ensure tax compliance in-hand with the Australian Taxation Office.
Even for businesses who don’t call Australia home, MYOB has plenty of other features that are worthy of appreciation – including the convenience of linking your bank accounts or sending invoices and managing contacts directly from your phone.
Plans are reasonably priced. And, stepping up to the AccountRight level plan even gives you the option to manage two separate businesses from one account.
Price: Plans begin at $25 per month.
4. FreshBooks
One thing that makes FreshBooks stand out is the fact that it lives in the cloud (regardless of which plan level you choose!) – meaning you can access your information conveniently and securely from anywhere that you are.
A few FreshBooks features you’re sure to find helpful? You can set-up automatic late payment reminders and fees if you’d like. Additionally, you have the option to see when a client has viewed an invoice – meaning you don’t have to worry about whether or not it’s floating off in cyberspace.
With a variety of different plans to choose from, you’re sure to be able to find one to help you streamline accounting and free up more time.
Price: Plans begin at $15 per month.
5. Wave
While Wave is best known by freelancers and independent contractors, the platform does offer functionality for small businesses and startups who have fewer than 10 employees.
If there’s one thing that most users appreciate about Wave, it’s the ease of use. Wave prides itself on the fact that it wasn’t designed for accountants, so you won’t be confused by a bunch of jargon or bloated features.
Wave makes it easy to get the information you most want to see – from cash balances to invoice status – without the distraction of tools that you’ll never actually touch.
Arguably the best part about Wave? It’s completely free. However, be forewarned that you’ll need to pay in order to access additional features like payroll.
All in all, Wave is a great solution to get started. But, if you’re aiming to grow at a rapid pace, you might want to opt for a slightly more expensive and comprehensive accounting software that can grow along with you.
Price: Free!
Accounting can be a challenge for any business. Whether you are a small business owner or solo entrepreneur, knowing how much money is coming in and out of your organisation is crucial. Yet, keeping track of your accounts can prove time-consuming and stressful. It’s no wonder that the marketplace is inundated with accounting solutions promising to relieve the burden on business owners.
The good news is that there are proven savings to be made if you choose the right software. A Sage study looking into the best free accounting software found that small companies could save up to £17,000 a year by moving away from traditional methods and into digital accounts. But with so many free accounting tools offering their services, choosing the one that is right for your business can be a difficult decision.
Choosing the best free accounting services for your business
The benefits of digital accounting have long been established and, as of 2019, companies in the United Kingdom with a turnover above the VAT threshold are legally required to keep digital account records. In the US it is reported that 21% of small and mid-sized businesses have integrated their accounting with invoicing and payment products. With this in mind, there has never been a better time to take advantage of the multitude of accounts freeware available to your business.
The 6 best free bookkeeping services
With our guide to choosing the best free online accounting software, you will be able to ensure that your bookkeeping is easy, fast and tailored to your needs. As well as covering the basics, several of the apps in our list also offer additional features to further enhance your business processes and streamline your accounting efforts.
QuickFile – the best solution for small businesses
QuickFile is accounting software specifically aimed at small businesses, freelancers and individual entrepreneurs. Founded in 2010, it provides an intuitive, cloud-based solution for users to keep track of their finances.
QuickFile boasts a huge range of features, including a mobile app for tracking expenses on the go, professional invoicing and a fully branded client area. The mobile app is particularly useful for organisations operating from home or a coworking space, enabling them to access their expenses anywhere.
In order to obtain advanced features such as unlimited invoicing, users have to pay a small amount. However, the free version offers ample support for small businesses looking to digitise their accounts for the first time.
The free software is easy to use, meaning there’s no steep learning curve to climb before seeing the results. Don’t just take our word for it, Trustpilot gives QuickFile a rating of 4.7 out of 5, meaning it is considered an ‘excellent’ service.
GnuCash – the best option for desktop open source accounting
GnuCash is a desktop-based, open-source accounting software that began life all the way back in 2001. To unpack those terms in case you are unfamiliar; ‘desktop’ in this case refers to the fact that you have to download and install the software onto a PC. That the software is ‘open source’ simply means that anyone can edit the actual code to improve features and fix bugs.
GnuCash describes itself as being easy to use, yet ‘powerful and flexible.’ The software allows users to track bank accounts, stocks, income and expenses, priding itself on being as simple to use as a ‘checkbook register’. The software is based on professional accounting principles, ensuring it’s amongst the best bookkeeper software free to use for businesses and freelancers.
As open-source software, one excellent feature of GnuCash is its comprehensive wiki; an excellent resource for advice. This feature is particularly useful if you’re learning your accounting software as you go, providing you with an encyclopedia of terms to help you get to grips with the software.
ZipBooks – the best choice if you need unlimited invoicing
ZipBooks offers an excellent free service that it describes as ‘simple, beautiful and powerful.’ A relative newcomer to the world of accounting software, ZipBooks’ offer of unlimited invoicing, vendor tracking and payment reminders have quickly made it a major competitor.
ZipBooks allows you to save time tracking receipts, toggle back and forth between cash and accrual accounting, and generate profit and loss statements.
TechRadar praised ZipBooks’ functionality and simplicity in a 4-star review, claiming that the software was perfect for everyone, from freelancers managing one or two clients through to large international organisations.
SlickPie – the best solution for multiple businesses
If you run multiple businesses and want to separate each one’s accounts, then SlickPie is an excellent choice. SlickPie’s free plan gives you unlimited bank reconciliations, expense tracking, estimates and invoices for up to 10 companies.
While SlickPie doesn’t offer up-front inventory tracking, it does include a basic item tracklist where you can record sales tax. As one of the most important things for business owners to track, this is an important feature to take note of.
SlickPie also provides online payment processing for credit cards, reconciliation for bank transactions, and automatic late payment reminders. These features led SoftwareAdvice.com to score SlickPie 4.56 out of 5.0. This review also noted that it’s the best free software to offer unlimited users.
FreeAgent – a great choice for RBS and Natwest customers
Set up in 2007, FreeAgent is now used by over 90,000 small businesses across the UK. If you’re a NatWest or Royal Bank of Scotland business current account holder, you can get full access to FreeAgent completely free at the time of writing. Unfortunately, if you are not an RBS/NatWest customer, access to these excellent features comes at a cost which will vary depending on your business type.
FreeAgent includes a range of great advanced features, like automatically generated VAT returns, corporation tax forecasts, and self assessment tools that automatically fill in up to 90% of your self-employment tax return form. It has also won awards (it was named the Small Business Accounting Software of the Year in 2018) and has a rating of 4.7 out of 5 on Trustpilot.
CloudBooks – a great solution for freelancers with one client
With over two million small businesses currently using the software, Cloudbooks is amongst the best free bookkeeping apps available. And for certain, if you freelance for only one client then CloudBooks is your ideal fit.
CloudBooks’ time-tracking feature makes it easy to invoice your client accurately. Its simple project management system means you can see how much time and money you’re spending on each part of your process.
CloudBooks’ payment features are seamlessly integrated, enabling you to accept online payments globally, including those made with gateways such as PayPal. Set up your preferred payment gateway and start accepting online payments to instantly increase your cash flow.
Whilst CloudBooks provides some of the best free bookkeeping software for self-employed people, if you have more than one client then it will not be comprehensive enough for you.
Keep up with your accounting
With so much accounting software on the market, and many bookkeeping apps free and available, there’s never been a better time to digitise your accounts. Whilst free software isn’t always as comprehensive as the paid alternatives, there is enough variety to ensure that most types of small businesses can find the tools they need for free.
Our guide has narrowed down some of the best options available for your accounting needs, but if you need further support within your organisation, our business concierge service can help you with everything from legal assistance and document checking to employment and accounting.
If you’re looking for other ways to streamline your procedures or improve productivity in your business, explore our productivity hacks for freelancers or check out our guide to making tax simple.
Conclusion
If you have been tasked with getting your company’s finances in order, you might be wondering how to go about it, and what accounting software you should look for. The accounting industry has been drastically changing over the years. Thanks to technology revolution, there are a lot of accounting software options you can choose from. However, not all of them are created equally.