Software for Small Business Accounting and Payroll

When you start a small business, you need an accounting system for your business finances. This may be even more important than for a larger organization due to the number of transactions and the complexities of reconciling them. It used to be that in order to run your own small business accounting system, you had to either get a bookkeeper to help you or use pen and paper (or in this day and age, a spreadsheet). I am watching my favorite TV show – The Carol Burnett Show . Here is a look at:  

Intuitive and easy to use, sophisticated yet easy to learn for both novice and experienced users alike, this comprehensive software package provides a flexible accounting solution for small business. With the focus on business processes it aims to prioritize user needs and serve as a reliable tool for the efficient management of your finances.

GnuCash

If you’re looking for a 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.

CloudBooks

With the free version of CloudBooks accounting software, you’ll be able to add unlimited users, invoice, create projects, perform integrated time tracking, track expenses, and provide estimates. That said, you’ll have to upgrade from the free version—and pay at least $10 a month—to be able to send more than five invoices per month, brand your invoices, and offer online payments on your invoices.

Sunrise: Best for Small Businesses Looking for a Bookkeeping Solution

best free accounting software sunrise

Best for Small Businesses Looking for a Bookkeeping Solution

Sunrise is one of the more prominent bookkeeping applications available for small businesses. Users can leverage the program to easily search and categorize business expenses, send customized invoices, and receive recurring payments.

It offers a free, self-service plan that provides businesses with a decent suite of features and a fair amount of flexibility when it comes to bookkeeping — allowing for unlimited invoices and transactions.

Sunrise sets itself apart from other bookkeeping solutions with its dedicated bookkeeper services, but those services come at a hefty premium. As I mentioned, its free plan is self-service — which works for small businesses but might not be sustainable as your business expands.

Ultimately, Sunrise is a straightforward, effective bookkeeping software with a free plan that can suit the needs of several small businesses. If you need a relatively short-term bookkeeping solution with a reasonable upgrade fee, Sunrise’s free plan is worth checking out.

Sunrise’s Key Benefits

  • Lets you manage income and expenses
  • Lets you send unlimited invoices
  • Lets you generate profits and losses

Sunrise’s Key Drawbacks

  • Suite of features is pretty restricted, relative to that of its paid plan
  • Lacks payment integrations
  • No cash flow insights or alerts

 Brightbook: Best for Creative Professionals and Freelancers

best free accounting software brightbook

Best for Creative Professionals and Freelancers

Brightbook is a web-based accounting solution tailored to suit the needs of independent contractors, freelancers, and small business owners — though it tends to work better for the former two.

The program is essentially designed to democratize accounting software. It has an extensive suite of features available for free — including resources for invoicing, visibility into your cash flow, financial reporting, and drafting financial statements — along with some paid features available for one-time fees.

One area where Brightbook struggles is its lack of mobile support. The program doesn’t have a mobile application, and it can’t be accessed via mobile browsers. And the application itself isn’t quite as sophisticated as some of the more well-established options.

Still, Brightbook is a solid option for freelancers or independent contractors — specifically creative professionals. It’s a little bare-bones, but it still covers a lot of bases that other options on this list might have stuck behind paywalls.

If you’re looking for a comprehensive suite of accounting features and don’t mind working with a relatively stripped-back program, consider checking Brightbook out.

Brightbook’s Key Benefits

  • Can be used for multiple companies
  • Interface gives you solid visibility into most aspects of your business
  • Full suite of features is free

Brightbook’s Key Drawbacks

  • Fairly bare-bones — lacking some more sophisticated features
  • Can’t be accessed via mobile
  • Reporting features are limited

QuickBooks Self-Employed


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QuickBooks Self-Employed accounting software is our top choice for part-time freelancers and independent contractors who primarily want to track their income and expenses for their tax return. This software is designed for business owners who file a Schedule C on their individual tax return. 

Without keeping up with business activity using a software like this, freelancers would need to dig through all of their bank and credit card statements to add up their income and expenses at the end of each year, which can be quite daunting. QuickBooks Self-Employed will total up all business transactions automatically.Pros

  • Cloud-based
  • Mobile app
  • Track mileage
  • Differentiate between business and personal expenses
  • Syncs with TurboTax

Cons

  • Data cannot be easily transferred to other accounting software
  • Limited reporting
  • Limited invoicing functionality and customization

QuickBooks Self-Employed is an Intuit product with a cloud-based online interface and a mobile app. This software was created to help freelancers stay organized each year for tax season. Features of QuickBooks Self-Employed include tracking mileage, sorting expenses, organizing receipts, sending invoices, and estimating and filing taxes seamlessly through TurboTax.

Users can choose between three plan options: Self-Employed at $15 per month, Self-Employed Tax Bundle at $25 per month, and Self-Employed Live Tax Bundle at $35 per month. There is a 50% discount for the first three months. The two tax bundles include a TurboTax subscription for income tax filing. The Self-Employed Live Tax Bundle also gives you access to a CPA to answer questions throughout the year and during tax season. The CPA will also perform a final review of your tax return in TurboTax prior to filing. 

The mobile app makes it easy to track mileage while driving and capture photos of receipts for business expenses. Most accounting software is not designed to separate business transactions from personal transactions, but a special feature of QuickBooks Self-Employed provides an option to mark each transaction as business or personal. This is helpful for freelancers who don’t have a separate bank account for their business activity.

Conclusion

Our accounting software is designed to help you manage your cash, track your income and expenses, and stay on top of your books. We offer many features that are usually found in expensive programs, such as free payroll, free accounts payable, free accounts receivable, a variety of reports, simple invoicing, and more. Our accounting solutions are affordable (you can use our free payroll calculator) and easy to use.

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