Businesses are always looking to reduce costs, especially when running a company. The most effective way to do this is by reducing the amount of money you spend on software. There is no shortage of high quality free office software available online that can help your business. You can turn any computer into an office, regardless of its size or capabilities, for free with the right programs installed. These are some of the best free software for business accounting currently available.
Today, there are many different software solutions that can help you to streamline your accounting process. Free accounting software has become very popular to both small and midsized companies, because it allows them to reduce the costs related to maintaining their financial records. Before we can discuss how free accounting software can help your company, let’s first understand what it is and why it’s so popular.
Accounting software can be your secret weapon when it comes to managing your small business finances. Think of the software as your assistant, helping you track cash flow, revenue, and expenses. But if you’re budget-conscious, you probably don’t want to overspend on software loaded with bells and whistles you’ll never use.
The good news is that several decent accounting programs out there are free for the taking. It’s just a matter of choosing the most suitable one for your small business’s financial needs.
How can accounting software be free?
When you think of accounting software, names like QuickBooks, Excel, and Peachtree probably come to mind. But these packages can command a pretty hefty price tag and come with features that may be too complicated for a small business owner doing their own accounting off the side of their desk.
If you’re not ready to pay for features you won’t use, many companies offer free accounting and bookkeeping software that can be a good fit for your small business. These free programs contain useful features without the high-level add-ons of their pricey big brothers. Without the advanced features, there is no need for complex, expensive program development.
Another reason some companies freely distribute the software is because it is open-sourced, meaning any developer can customize it any way they see fit. The license for open-sourced software specifically states that it must remain free for every user.
Free Accounting Software: Your Ultimate Guide
Free accounting software is automated cloud or desktop technology that allows business owners and financial professionals to manage a small business’s books for free through their computer.
Of course, even the best free software won’t be your most powerful accounting software options. If you want to access state-of-the-art accounting innovations for your small business, you’ll have to pay for it.
That said, exploring the best software options for small business will give you an idea of whether or not you want to be paying for this financial resource.
Here are the best free accounting software available:
1. Wave
A top free accounting software to consider from the start of your search is Wave accounting software. Through this option, you’ll be able to connect unlimited bank and credit card accounts to your books. You’ll also be able to add unlimited income tracking, expense tracking, and guest collaborators for free. Plus, you’ll be able to invoice and scan receipts for free as well.
Be sure to note, though: If you want your invoiced customers to be able to pay online directly through the invoice, you’ll need to pay for that. Wave charges 2.9% + $0.30 for each credit card payment and 1% (with a minimum of $1) for each ACH payment. You’ll also need to pay for payroll through Wave. Depending on where you do business, you’ll pay a monthly base fee of either $35 or $20, plus $4 per employee and contractor on your payroll.
2. ZipBooks
Another top free accounting software for small businesses to consider is ZipBooks. ZipBooks offers all the crucial features of an accounting software—reports, bank syncing, billing, expense management, and invoicing—in one free account.
If you want to offer online payments to your invoiced customers via ZipBooks, you’ll need to do so via Square or PayPal. You’ll pay the standard PayPal rates and Square rates for those transactions.
ZipBooks offers an integrated payroll add-on option with Gusto. Gusto starts at $39 per month, plus $6 per person per month. For a limited time, you can get the Core plan for a discounted price of a monthly $19 base cost for the first six months. Gusto also has a new option for contractor-only employers, who simply pay the $6 per employee rate and no base price.
3. Akaunting
You should also consider a free accounting software called Akaunting. This option offers many of the most necessary features that a small business accounting software should. Within this technology, you’ll be able to invoice, sync accounts, track expenses, set up recurring bills, manage customers, and manage vendors. However, to access more advanced features like online payments, for example, you’ll have to download third-party apps that will cost you a yearly fee on top of whatever fees you have to pay for this third-party account.
Long story short, creating an Akaunting account won’t cost you anything, but as you navigate this software, you’ll realize that all the capabilities that you might expect to be ready-to-use will rely on your purchasing these third-party apps.
4. GnuCash
Best for: Sole proprietors and small businesses
GnuCash can be downloaded for Linux, Microsoft Windows, and Mac OS X. It handles multiple languages and currencies. And GnuCash tracks accounts receivable and accounts payable. It also offers some payroll features.
5. CloudBooks
Best for: Freelancers and small businesses
The free version of CloudBooks offers cloud storage, unlimited users, and email support. It has invoicing features but limits you to one client and five invoices. In order to get the unlimited invoicing features, a paid account will be necessary.
6. Akaunting
Best for: Small and medium-sized businesses
Akaunting has a full suite of online accounting services in one convenient tool. This application can be used on any device, and has an easy-to-use interface. Notable features include professional invoicing that can be sent across-currencies, expense tracking, client portals, and multi-company functionality so you can manage the financials of multiple businesses on one platform.
Conclusion
If you are a small business owner or a freelancer, then you know that doing your business accounting on your own can be a pain. There are many time consuming tasks to get through and it can also get boring. In fact, 77% of small business owners say they would rather clean the house instead of balancing the financial reports.