There are many accounting software packages and the choices can be overwhelming. The most important aspect of accounting is staying organized and on top of everything, so you need an accounting software package that will help you do this.
I’ve compiled a list of what I consider to be the Top Accounting Software Packages in the World.
BEST OVERALLQuickBooks 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.
BEST FOR MICRO-BUSINESS OWNERSXero
Xero is the best in our review for micro-businesses that are looking for very simple accounting software. This software has a clean interface and also fully integrates with a third-party payroll service. Businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless.Pros
- Cloud-based
- Mobile app
- Payroll integration with Gusto
- Third-party app marketplace
- Simple inventory management
Cons
- Limited reporting
- Fees charged for ACH payments
- Limited customer service
Xero was founded in 2006 in New Zealand and now has over 2.7 million users worldwide. This accounting software is popular in New Zealand, Australia, and the United Kingdom. Xero has over 3,500 employees and is growing rapidly in the U.S., as well.1
Xero offers three monthly subscription options and a full-service payroll add-on: Early at $11 per month, Growing at $32 per month, and Established at $62 per month. The full-service payroll option is offered through Gusto and is an additional $39 per month, plus $6 per employee. The company offers a 30-day free trial and a promotion for 50% off for two months.
The Early plan limits usage and only allows entry for five invoices or quotes, five bills, and reconciliation of 20 bank transactions per month. This limited plan may be suitable for a micro-business with high-ticket transactions, but only a few per month, such as a consulting or small service provider. Both the Growing and Established plans offer unlimited invoices, bills, and transactions. The only difference between the two is that the Established plan has additional features like multi-currency, expense management, and project costing. All three plans offer Hubdoc, a bill and receipt capture solution.
BEST FREE SOFTWAREWave
Wave is an ideal accounting software platform for a service-based small business that sends simple invoices and doesn’t need to track inventory or run payroll. For many freelancers or service-based businesses, Wave’s free features will cover all of their accounting needs and is the best free software in our review. At year-end, accountants can pull the necessary reports from Wave to prepare a business’ tax return.Pros
- Free accounting, invoicing, and receipt scanning
- No transaction or billing limits
- Run multiple businesses in one account
- Unlimited number of users
- Mobile app
Cons
- Limited third-party app integrations
- Higher fees for credit cards and ACH payments
- Full-service payroll is limited to only 14 states
- No inventory management
Wave was founded in 2010 and is based in Toronto. The company has over 250 employees and was purchased by H&R Block in 2019.34 The foundational accounting features that most small businesses need, such as income and expense tracking, financial reporting, invoicing, and scanning receipts, are all included with this free software. These features can be accessed online or on the mobile app. Customer payment processing and payroll are considered premium services that cost extra, but all of the bookkeeping, invoicing, and reporting features are completely free.
Wave makes its money on its payment gateway. To process payment from a customer, Wave charges 2.9% plus 30¢ per transaction for Visa, Mastercard, and Discover, and 3.4% plus 30¢ per transaction for American Express. These fees are slightly higher than other accounting software. Additionally, to process an ACH payment, rather than a credit card, Wave charges 1% per transaction with a $1 minimum fee. This is unique to Wave, as the majority of accounting software does not charge a fee for ACH payment processing.
Wave offers two payroll plans as an add-on service. The first plan is $20 per month plus $6 per employee or contractor. In this plan, Wave will process payroll and prepare payroll tax calculations, but the user is responsible for manually completing payroll tax forms and submitting tax payments. The second plan is $35 per month plus $6 per employee or contractor. In this plan, payroll is full-service, which means that all tax filings and payments are completely managed by Wave. This full-service payroll option is only available in 14 states.
FreshBooks
FreshBooks is one of the leaders in our accounting software category. Our team found FreshBooks to be the most easy-to-use accounting solution for freelance accountants and small businesses currently offered in the market.
The software is being used by more than five million users around the world to streamline time tracking and invoicing. The vendor has recently updated the product to allow easy collaboration between team members and has added a redesigned dashboard where you can prioritize tasks and manage payments. The classic features have not changed, and FreshBooks continues to offer top-rate invoice-to-payment functionalities, including direct payment gateways, overdue payment reminders, delay fees, and payment claims. You can use the system to collect payments easily and automate the recurring billing process to accept Google Checkouts, Amex, PayPal, and credit card payments.
What’s more, is that pricing is affordable for almost any budget, and the vendor offers a convenient 30-day free trial to enable you to test drive the features before you plunk down your money.
Try out FreshBooks with their free trialGET 60% OFFFREE TRIAL
FreshBooks also recently added features such as bank reconciliations, invitations for up to 10 accountants, new balance sheet reports, directly adding the credit card to the client profile, and adding payments in bulk. It also improved the navigation experience by adding sections for Invoices, Reports, and Accounting.
FreshBooks has not neglected any utility, and companies can use it to manage invoices as well as expenses. You can easily generate insightful tax summaries and reports after the data is processed. The vendor also offers a handy mobile app. The system seamlessly integrates with other business apps, such as billing and invoicing software. You can rely on the support of knowledgeable and experienced agents if you have any issues.
Detailed FreshBooks Review
XERO
With over 1.8 million subscribers, Xero is online accounting software specifically designed to meet the burgeoning needs of growing businesses and accounting practices. It provides easy access and a real-time view of cash flow. It creates professional recurring invoices and receives updates when they’re opened.
Here are features of Xero Accounting Software
- The cloud-based solution allows easy accessibility from all types of devices with an active internet connection.
- Effortlessly manage multi-currency accounting for the business. Auto tracking gains and losses for 160+ currencies.
- Xero mobile app is optimized for both iPhone and iPad & Android phones and tablets.
- Integration with 700+ third-party apps relating to inventory, invoicing, time tracking, and expenses.
- Enable small businesses to view cash flow, transactions and account details from any location.
- Bank transactions are imported and coded automatically.
- Make customers payment process seamless.
- Accept payments directly from online invoices and keep cash flow positive.
QUICKBOOKS
One of the most popular accounting software for businesses, QuickBooks offers a host of features. It is ideal for small businesses, self-employed, and accountants. It lets calculate and track VAT automatically, as well as prepare and submit accurate returns. With more than 400 integrations, QuickBooks comes with customizable invoices, inventory and payroll support. QuickBooks for Accountants and Bookkeepers helps grow practice and make clients ready for HMRC’s most ambitious initiative Making Tax Digital (MTD).
Here are features of QuickBooks
- Automatically categorise income and expenses.
- Calculate, track and prepare VAT automatically.
- Submit returns directly to HMRC and be Making Tax Digital ready.
- Soon to be introduced feature: VAT SmartScan which will automate the most crucial VAT checks, helping identify and address common errors before submission. VAT SmartScan will give accountants the peace of mind knowing that VAT return is accurate.
- Save time and money creating employee payslips, send RTI data to HMRC and manage auto-enrolment.
- Tracking PAYE, NI and other deductions made easy.
SAGE 50cloud Accounting Software
Sage 50 is a comprehensive set of accountancy and payroll products developed by Sage Group aimed at small and medium enterprises. Founded in the UK for Accountants and Bookkeepers, Sage supports over 14,000 practices and more than one million users across the UK. Right from bookkeeping, payroll to practice management and compliance, Sage’s offers a wide range of products.
Sage comes with different products under the Sage 50 name specifically for different geographies. It effectively combines the convenience of the cloud with the robustness of desktop accounting software.
Sage50 comes with a variety of products such as Desktop accounting software connected to the Cloud; compliant Payroll products. Sage 200 cloud offers MTD complaint and GDPR ready solutions.
Here are features of Sage
- MTD compliant and GDPR ready.
- Calculate and submit VAT returns directly.
- Direct bank feeds with split transaction capability.
- Link up Final Accounts, Corporation Tax, and Personal Tax applications to prepare and file accounts and tax returns with ease.
- Manage business while on the move through the cloud, connected to Microsoft Office 365.
Conclusion
There are many software programs for accounting that one can rely on. It is important to ensure that you find the software that would help you keep your accounts in order. There are several programs available, and using the best will help you to get the services you require.