Free Small Business Accounting Software With Payroll. Nowadays, starting your own business is easier than before. If you have any kind of passion, there is no shortage of things you can do to earn some extra cash. All you need is some capital, a product or service to offer, and a website to get started
In this article, we are going to take a look at some of the best free small business accounting software with payroll. You’ll be able to find a solution for your business, big or small.
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.
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.2 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.
Best Invoicing & Mobile Apps: Zoho Books
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Zoho Books offers unbeatable invoicing and strong mobile apps. Recent updates have put Zoho Books on par with QuickBooks Online in terms of features, but with better customer service and a more user-friendly UI, Zoho Books is a great option for small businesses.
Zoho Books is best for small businesses in need of strong online accounting, great mobile apps, and good invoicing. The software is ideal for international businesses.
Pros
- Advanced features
- Easy to use
- Good customer support
- Strong mobile apps
Cons
- Limited integrations
- Unsuited for large businesses
Zoho Books Pricing
Zoho Books offers three pricing plans ranging from $0/month to $70/month. Each plan comes with basic features and unlimited invoices. The larger the plan, the more contacts, users, and advanced features you’ll have access to.
Zoho Books Features
Zoho Books has an impressive number of features. With good customer support and a well-designed UI, the software is easy to use and learn. Zoho Books has all of the features you’d expect from a fully-developed accounting solution, including invoicing, contact management, expense tracking, time tracking, inventory, project management, and even tax support.
The best part about Zoho Books is its invoicing offerings. Zoho Books offers 16 customizable invoice templates, a client portal where customers can pay invoices directly online, recurring invoices, and the unique ability to encrypt invoices. Many automations make it easy to invoice customers, such as setting payment reminders and auto-scheduling invoices to send later. You can also send invoices in 13 languages, making Zoho Books a great choice for international businesses.
You’ll find these key accounting features as well:
- Accounts payable
- Charts of accounts
- Bank reconciliation
- Fixed asset management
- Reports
Zoho Books offers over 30 integrations, including 11 payment gateway options and a Zapier integration that connects Zoho Books to over 1,000 other third-party apps. Zoho Books also has easy accounting apps that are highly developed and praised by existing users.
Zoho Books is known for its great customer service. Phone and email support are both available. Representatives are generally helpful and quick to respond to questions. The majority of customer reviews are positive, and users especially like the level of support they receive.
When To Use Zoho Books
With almost as many features as QuickBooks Online, Zoho Books is a contender worth considering. The software is easy to use, and its invoicing features are unbeatable. Great customer support, a good number of integrations, and international features are also perks of the software.
If Zoho Books sounds like it might be a suitable choice for your small business, start a free trial, or read our complete Zoho Books review to learn more.
Xero Accounting
Unlike QuickBooks, the New Zealander Rod Drury and his personal accountant created the software more recently in 2006 to compete with what he believed were outdated accounting software in the market.
Xero is offered as a “software as a service” product where users can access the platform by paying monthly subscriptions. Since its initial release, the product is now available in over 180 countries worldwide.
Some of the major offerings of the software are automatic bank and credit card account feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, and standard business and management reporting. Some of which are not available to others.
Conclusion
Free small business accounting software with payroll like QuickBooks Online or Xero make it easy for you to keep track of your small business accounting. The best free small business accounting software is not only free but has integrated online payroll for your convenience.