What is the best accounting software for small businesses? A lot of small businesses are relying more and more on online accounting software. And why not? There are a lot of advantages to using this type of software for your accounting needs. However, since there are dozens of platforms to choose from, finding the best one for you can be difficult. You may end up biting off more than you can chew. To help you make an informed decision, we’ve compiled a list of accounting software that’s compatible with small businesses from all over the world.
What is an accounting software?
Accounting software is a type of software that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions.
Accounting software offers you a lot of benefits.
- Saves Your Time:
Time is the most important thing in business especially when you just started your journey. Using accounting software has simplified the overall system. This simplification saves the time you need to invest in other sectors.
- It helps with taxes:
Accounting software allows you to properly compile and export documents and receipts to your accountant with ease. Properly compiled records also make your accountant’s job easier in taking care of your taxes.
Some software also complies with tax office rules through formatting invoices automatically so you won’t face troubles during tax season.
- Business Reports:
You need your invoices, transaction history, details of your stock, etc. which are parts of your total business report.
It can be exhausting to sit down with papers and make the reports. The accounting system gets those reports ready for you on its own.
- Cuts costs:
Automating your accounting tasks saves you money in the long run. It eliminates the need for hiring a bookkeeper or allotting extra hours of their shift to handle all books, invoices, and transactions. In business, time is equivalent to money and optimizing this process greatly reduces bookkeeping hours.
Furthermore, the software has subscription-based pricing models with low costs to pay on a monthly or annual basis. Subscribing to a plan gives you regular updates, support, and tools which enable you to focus on actually running your business.
5. Accuracy and Speed:
One of the greatest benefits of accounting software is a higher degree of accuracy and speed. It provides real-time data that helps in streamlining business transactions.
MYOB
MYOB is a simple software that is easy to use, it is used widely in Australia with different features like better managing finances, control In cash management, helps to increase productivity and lot more. You can get your business up for success with easy invoicing, expense tracking, Single Touch Payroll, and more. MYOB has a range of initiatives to help support Australian and New Zealand businesses.
Pros
Easy to use and well laid out for the end-user. It is great for small operations without complex needs.
Cons
Whilst bank rules are very handy – the auto reconciling of transactions can cause problems if rules are set up incorrectly. There is no option to make transaction changes in bulk. It also takes a long time to set up.
Reckon
Reckon is an accounting practice management software that handles invoice, payroll, accounts payable and receivable, and bookkeeping. It is utilized by self-employed, small, medium, and large businesses in Australia. It also offers a free trial.
Reckon’s features include:
- Cash flow in real-time
- Unlimited bank reconciliations
- Budgeting, GST & BAS reports
- Free 24/7 Reckon support
- Multi-layered data security and SSL encryption
- Automatic data backups
- Share your data with your accountant or bookkeeper
- 20+ reports to generate
- Invite unlimited team members
- Free mobile app (iPhone/Android)
- Free, regular feature updates
Pros: It is a very feature-rich software with a setup that provides a robust accounting experience for small businesses.
Cons: It can be more expensive than other software and has a steep learning curve for the novice or time-poor businessperson. It has many integrations, lacks detailed user guides for setting up extra modules within the software.
Wave
Wave is an online accounting service that provides basic bookkeeping software, including invoicing, accounting, and receipt scanning. Its mantra is that “small businesses have a right to great software,” which is sweetened by the fact that it is free. With a Wave account you can:
- Track sales tax on income and expenses
- Connect unlimited bank and credit card accounts to your books
- Track unlimited income and expenses
- Invoice and send estimates that can be quickly turned into invoices once approved
- Generate financial statements for EOFY purposes
- Access your books via the Wave app for both Android and iOS
One thing to note is that Wave uses a pay-per-use system for online payments, meaning that for your business to accept payment for invoices online, Wave charges a base fee plus a percentage of the payment. But if you’re looking to simply keep track of the ins and outs without forking over any cash, Wave may be worth investigating.
Xero
Xero accounting software has a number of time-saving tools aimed directly at managing and growing businesses, including a real-time view of cash flow, categorized bank transactions for tax time, and an easy-to-read and uses the mobile application. Each month, the most basic package allows you to send 20 invoices and quotes, enter bills, payroll, and reconcile bank transactions, with optional extras such as projects and expenses management tools to be added to your plan if you’re keen to expand your software. And if you’re not 100% sure about signing up, or which plan you should sign up to, Xero offers a 30-day free trial for you to see which plan is the best fit for your needs.
ZipBooks
Another top free accounting software for small businesses to consider is ZipBooks. ZipBooks offers all the crucial features of 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.
GnuCash
If you’re looking for free desktop accounting software for your small business, then GnuCash is a solid contender. To access this free accounting software option, all you have to do is go to the GnuCash site and download it for free—simple as that. Though GnuCash doubles as a personal and small business accounting software, it offers small business-specific features customer and vendor tracking, job costing, and invoicing.
NCH Express Accounts
Another free desktop accounting software option to consider is NCH Express Accounts. The free version of this accounting software can support the accounting needs of small businesses with fewer than five employees. Through this free accounting software for small businesses, you’ll be able to access and generate 20 crucial financial reports and analyze revenues by customer, team member, or item. You’ll also be able to manage accounts receivable and payable easily through this software. That said, in order to access your books online, you’ll have to purchase the cloud version of Express Accounts, which isn’t free and currently starts at $59.95.
Conclusion
Small business Accounting software differs from the software that large businesses use. Unlike large business accounting software, small business accounting software makes use of simple features such as invoicing to accomplish basic accounting tasks. To make the most of these features, you may have to learn some new jargon and processes. However, this is time well spent, as small businesses typically lack the resources to pay for more sophisticated or enhanced software packages that save time and money.