Do you want to start a software for bookkeeping business? You must be wondering how do you start it, and what all the things you need to create your software business? Well, I’m here to help you by answering all the questions that arise when you decide to start this kind of business.
Bookkeeping is a business and should be run as such. That means you need to be tracking everything you do and everything that happens to your business. Software for bookkeeping is exactly what it sounds like – software specifically made for bookkeepers to help them do their job better. Software for bookkeepers needs to offer features such as invoicing, customer management, inventory, and expenses.
Intuit QuickBooks Online
Pricing: Starts at $12.50/month
Intuit Quickbooks might be the first resource that comes to mind when you hear the term, “small business accounting software” — and for good reason. Beyond its first-rate suite of capabilities, the program sets itself apart with elements like receipt capture and 24/7 chat support.
It also features integrations with PayPal, Shopify, and Square. Taken together, those components — among several others — make Quickbooks a crowd-pleasing small business accounting software.
All plans allow you to track income and expenses, send invoices and receive payments, run reports, send estimates, track sales and taxes, and capture and organize receipts. More advanced plans allow you to track inventory, track time, and even run full-service payroll.
Best for Businesses Looking for a Tried-and-True Option
Intuit Quickbooks is one of the most (if not the most) prominent accounting software for small businesses. It’s been around long enough for you to have a solid idea of what you’re getting when you invest in it — an accessible, affordable, time-tested solution that can suit a company of virtually any size. If you’re looking for a safe choice that reconciles reliability with exceptional functionality, consider looking into Intuit Quickbooks.
Wave
Pros:
- Unlimited bank and credit card account connections, income and expense tracking and guest logins.
- Allows you to invoice from within the platform itself and supports receipt scanning.
Cons:
- May not be powerful and feature-rich enough for large or fast-growing businesses.
- Charges per-transaction fees for payment processing.
- Payroll product is separate and requires a subscription.
Why we like it:
Wave is by far one of the most robust and well-designed free accounting software tools for small businesses. Instead of charging users to generate revenue, Wave makes money through fees on payments made within the platform. That means you’ll likely save money in the long run depending on how you intend to use the platform to collect ACH, debit or credit card payments from clients. Visa, Mastercard and Discover come with a 2.9% fee, plus 30 cents, on each transaction. American Express is 3.4% plus 30 cents. ACH bank transfers only come with a 1% fee (or a $1 minimum fee, depending on the size of the transaction).
With Wave, you’ll get unlimited income and expense tracking, sales tax tracking and double-entry functionality, as well as reports on cash flow, profit and loss, and overdue invoices and bills. You can also use Wave’s invoicing tools for free. This includes unlimited invoices, automated invoice reminders, invoice and accounting synchronization and the acceptance of both credit card and bank payments.
NerdWallet’s full review of Wave
ZipBooks
Pros:
- Ability to send unlimited invoices, manage unlimited vendors and accept digital payments.
- Task, time and project tracking.
- Can work with third-party online payment platforms.
Cons:
- Payments and payroll integrations cost extra.
- Overall lack of integrations with other platforms.
- Lack of advanced features.
Why we like it:
ZipBooks provides a great set of features at a price that works for small-scale businesses or companies in their early stages that don’t necessarily need much in order to manage their finances. ZipBooks’ Starter plan is free, with two higher-level tiers that include more sophisticated features for a flat monthly fee, as well as a custom-priced Accountant plan. The ZipBooks Starter plan includes unlimited and customizable invoices, estimates and price quotes. You’ll also get a virtual dashboard to keep track of your business’s outstanding and paid invoices, as well as your overall finances. Plus, if you like ZipBooks Starter, you can always upgrade to a more feature-laden plan as your business grows.
There are a few downsides to ZipBooks, however. You’re limited to one bank account connection, unlike other free accounting software platforms that are more generous. If you want to use ZipBooks’ integration with Square and PayPal, you’ll have to pay credit card processing fees, just as you would with Wave.
Akaunting
Pros:
- Open-source software means you can customize however you want.
- Extensive library of integrations.
- Robust user support via online forums.
Cons:
- Design is not as intuitive as other platforms.
- Advanced features cost extra.
- Not as ready-to-use as other options.
Why we like it:
Akaunting is an open-source accounting platform that has the capability for customization, primarily through its library of add-ons. The primary features are available right out of the box: You can invoice, track receipts and take care of the everyday needs of your company’s finances. Plus, with a robust library of integrations, you can build your own Akaunting setup with a degree of customization other free platforms don’t provide. However, you or someone on your team will likely need some coding knowledge to use this software to its full potential.
Zoho Books
Pros:
- Free version is feature-packed.
- Easy to upgrade to paid versions as your business grows.
- Easy to use.
Cons:
- Free plan available only for businesses with annual revenue of less than $50,000.
- Limits on the number of users, contacts and workflows for free plan.
- Free plan provides email support only. (Paid plans include email, voice and chat support.)
Why we like it:
Zoho Books provides an easy way to manage your business’s books from anywhere. This software allows you to handle a variety of accounting tasks, including creating and sending customized invoices and estimates, plus reminder emails for overdue invoices and simple conversion from estimate to invoice. As long as your business’s annual revenue is less than $50,000, you can use the free version for as long as it makes sense for your business. And if you use Zoho’s other business apps, you can integrate them all seamlessly. Outside of those, though, you are somewhat limited in terms of third-party integrations.
Pabbly
Pricing: Starts at $9/month
Pabbly Subscription Billing is a recurring and subscription management software for small to medium-sized businesses. This software provides real-time actionable metrics on your monthly payments, revenue, net revenue, active customers, and new subscriptions. It also automates all your business workflows, customer communication, and invoice creation so you can focus on your business growth.
Best for Businesses Looking for a Reliably Fixed Pricing Model
One of Pabbly’s key selling points is its subscription billing model. It’s one of the only software on this list that doesn’t charge any extra fees on the basis of per-transaction and monthly revenue generation. That kind of consistency — paired with it’s first-rate functionality — make Pabbly a solid option.
Sage 50cloud
Pricing: Starts at $340/Year
With Sage, you can spend less time on administrative tasks. The software sends invoices, tracks payments and expenses, and calculates what you owe come tax season. Time-tracking and collaboration tools are two things you won’t get with Sage, and payroll is a separate product.
Best For Small Businesses Trending Towards Higher Growth
Sage works well for small- to medium-sized businesses. It errs on the more expensive side of the tools on this list, but it has an impressive enough suite of features to back its prices up. If your small business is more mature than most — and you can afford to spend a little extra on your accounting software — take a look at Sage50cloud.
Xero
Pricing: Starts at $11/month
Xero lets you get financial performance reports sent straight to you, and connect your bank account for a seamless experience. If you need payroll services, you’ll have to use them through Xero’s partnership with Gusto. And if you value live support, you should probably look for another provider.
Best for Businesses That Conduct Their Business on the Go.
One of Xero’s most impressive characteristics is its mobile experience, making it an excellent option for businesspeople who work on the go. The software allows you to send custom invoices, track inventory, and create purchase orders to attach to bills — all from your phone or tablet.
Kashoo
Pricing: Starts at $20/month
Kashoo is a solution that offers powerful functionality at a reasonable price. Among the software’s features are automatic reconciliation, categorization using machine learning technology, and income and expense tracking.
Best for Businesses Looking for a Simple Solution
Perfect for small businesses searching for a truly simple solution, Kashoo offers plans and features that can accommodate any small business’s needs. Its functionality is straightforward but effective, and its pricing structure allows for unlimited users at a relatively low price point.
OneUp
Pricing: Starts at $9/month
OneUp is another double-entry accounting solution. It syncs with your bank, categorizes bank entries, and validates suggested entries so your books are done quickly and accurately. All told, those elements amount to roughly 95% automation of your accounting.
Best for Businesses Focused on Inventory Management
OneUp might be best known for its inventory management capabilities. The program automatically adjusts your inventory levels as they shift and tells you when to reorder.
That’s not to say that the software’s other features aren’t impressive — but if you’re primarily in the market for an exceptional inventory management solution, check OneUp out.
Conclusion
So, you’re running a bookkeeping business and just got your first client ever. Congratulations! Now comes the hard part: keeping accurate records and producing reports and summaries for your customers. While you may think all you need is Microsoft Excel, there are plenty of programs out there designed specifically to help businesses like yours.