Best Accounting Software For Small Businesses

Best Accounting Software For Small Businesses | Accounting Smarts
Charles Hall

Last updated by

Charles Hall

on

August 30, 2022

Small businesses need to take advantage of reliable accounting software more than anybody. Your time is limited and the best software can save you money.

Small businesses need to take advantage of reliable accounting software more than anybody. Your time is limited and the best software can save you money.

As a small business owner, accounting can be a daunting task. The best software to get you on the right track is QuickBooks Online because of its affordable pricing and wide range of features to help you. If you are strapped for cash, Wave Financial is free to get started.

When looking for accounting software, you should consider the importance of features, pricing, and scalability before choosing the right one for you. Each business focuses on different tasks so it is not one size fits all. The other options discussed in this guide are all excellent options for small businesses too.

Helping small businesses scale by correcting their entire accounting process is something we specialize in. We have helped many businesses get on the right track by making a simple software upgrade and automating some tedious tasks. Keep reading to learn more about accounting software and the best options for your small business.   

ShowHide

Table of contents

7 Best Accounting Software For Small Businesses

Accounting software is a key tool for small business owners to manage all the essential financial tasks, like accounting, taxes, and record-keeping. The best accounting software for small businesses simplifies tedious tasks and makes them easier to manage on a daily basis.

The best accounting software for small businesses helps business owners keep tabs on their business finances without having to hire an accountant or bookkeeper. It also helps users stay organized and avoid data entry errors.

They also offer integrated planning functionality that allows business owners to manage their day-to-day tasks in a more effective way. You can use budgeting and invoicing tools while implementing automation to take care of daily transaction logging. When you are running a small, lean business every minute you can save with software matters.  

There are so many options available in the market and it can be overwhelming for you to choose. But, we have made your job easier by providing a list of the top seven accounting software for small businesses to choose from.

QuickBooks Online

QuickBooks Online is a cloud-based accounting software that features an intuitive and easy-to-use interface. It is perfect for small businesses with few employees because of the collaborative tools it can offer.

QuickBooks Online offers some of the most powerful features, including recurring transactions, multi-currency support, inventory tracking, and secure payment processing. It offers better value and convenience for small businesses as it has no installation required, no limits on updates, and no annual license fee.

QuickBooks provides so many templates and customization options when drafting invoices and other related documents. You can perfectly tailor everything to match your brand and improve your credibility.

QuickBooks also serves all types of small businesses with a variety of plans that make it easy for a business owner to scale while sticking with the same software. The company is especially popular among startups because of its ease of use.

Pros

  • Cloud access for all team members.
  • Excellent tracking tools on sent invoices.
  • Easy to use for beginners.
  • Advanced dashboard with reliable insights.
  • Collaborative tool for teams and accountants.
  • Financial reports are one click away.
  • A trustworthy brand for sending out invoices and bills.
  • Bank feed automation for transaction logging.

Cons

  • More customizable templates are needed.
  • Customer support is not the best.
  • No journal entry approval feature.
  • Lack of email integration for reminders.  

Wave Financial

Wave is one of the best accounting software of choices for small business owners. They offer cloud-based accounting services for all sizes of businesses, and mobile apps for running your business on the go.

Most notably, if you are on a tight budget many of the features offered by Wave can be used for free including double-entry accounting and invoicing for even the smallest businesses to get started.

The features of Wave Financial are designed to make this professional accounting software easy to use while still providing an impressive variety of tools that will help you manage your business efficiently.

Wave is unique because they break down each plan very specifically tailored around one unique feature. Access to accounting, invoicing, and receipts are completely free to use with zero hidden fees making it ideal for those on a budget.

Wave also has a payroll feature for a low monthly cost. Using Wave payments is free too except for the low processing fees they charged that match all of the competitors listed in this guide.

Pros

  • Easiest software to use and learn.
  • Free pricing on many key features.
  • Easily integrates with other critical tools.
  • Intuitive dashboard with plenty of analytics and reporting.
  • Expense and invoice tracking.
  • Easy to send and receive payments.
  • Receipt capture is an advanced feature.

Cons

  • Reconciliations are not super accurate at times.
  • Difficult to scale with Wave.
  • Bank account linking is limited.
  • Needs better customization and design aspects.  

Kashoo

Kashoo is a cloud-based accounting software designed for small business owners to help them manage their finances in a simple way. Kashoo is one of the most popular and effective accounting software providers in the market today.

Some of the critical features that Kashoo provides include cash flow management, advanced reporting capabilities, automated budgeting tools, excellent customer support, online receipts, and customizable invoicing.

The features of Kashoo are designed in a way to help small businesses grow their business without having to worry about carrying out tedious tasks like tracking expenses and generating reports. There are plenty of automations that can be set up to properly execute the tasks for you.

The Kashoo platform can automatically sync with third-party apps, which saves the business time spent on manual data entry. It also allows users to manage invoices, expenses, and income all in one place. It also offers advanced reporting tools to streamline financial management processes.

Pros

  • Reporting is reliable with excellent options available.
  • Simple accounting tool to learn.
  • Invoicing is fast and easy.
  • Journal entry recording.
  • The mobile app works well.
  • Bank transaction imports and exports.
  • Credit card payments are available.

Cons

  • Lack of report customization.
  • The multi-currency feature is buggy at times.
  • Transaction searching does not work well.
  • No inventory tracking.

Sunrise by Lendio

Sunrise is an accounting software for small businesses that helps them monitor their finances and sales with ease. It also comes with features that not only help but are also easy to use such as invoicing, e-statements, and plenty of integrations.

This program can be used by entrepreneurs to run their business the way they want it to be run or for the company accountant to do his or her work. It also offers mobile apps for both iPhone and Android users so they can access the information anytime they need it.

Businesses that rely on cash flow to keep them afloat can greatly benefit from Sunrise’s robust features that allow them to keep track of every aspect of their finances, provide a full picture of what they’re doing with their money, and adjust accordingly.

Sunrise has differentiated itself by providing clients with an affordable product that offers a lot of great features. They have also focused on providing their customers with customer service, so they can feel assured of the company's support at all times.

Pros

  • User-friendly software.
  • An excellent option for new businesses as an entry-level solution.
  • Highly advanced invoicing tool.
  • Automated billing and transaction logging.
  • The income and expense overview is in-depth and technical.
  • Solid mobile app.
  • The customer support team is one of the best.  

Cons 

  • Lack of integrations available.
  • Limited customization.
  • Not the best software to scale with.
  • Does not sync with every bank.

Zoho Books

Zoho Books is an accounting software that helps small businesses track expenses, generate reports, and automate financial transactions. The software also has a variety of features for entrepreneurs including invoicing, payroll, and accounting.

Zoho Books is the right choice for small businesses looking for an accounting tool with an intuitive interface, powerful features, and easy setup. The software is designed to be very user-friendly and easy to use. In addition, it supports all types of industries including retail, manufacturing, service-based, and non-profit organizations.

This software has taken on the role of not only being a bookkeeping software, but also a complete package for small businesses. One of the most useful features is the ability to import data from other sources and process them with your accounting software.

The best part about Zoho is they provide a full range of business tools too like email and CRM that directly integrate with Zoho Books. If you were looking for a place to manage all of your operations, Zoho is an excellent choice.

Pros

  • Integration with Zoho suite of products.
  • The inventory module works extremely well.
  • Easy to use.
  • Expense reporting is intuitive.
  • Cheap pricing and is easy to scale with.
  • Ideal for entry-level business owners.
  • Invoicing and bill management.
  • Automatic invoicing.

Cons

  • Not as reliable when using external integrations.
  • Doesn’t include all banks.
  • Limited storage.
  • Advanced reporting can be complex for a beginner.

Xero

Xero is a cloud-based accounting software that enables small businesses to manage their finances easily and at a low cost. This software is one of the most popular choices for small businesses because of its intuitive interface, wide range of features, and customer support team.

Xero’s top features include bank feed linking with online integration, team member collaboration, and instant insights into your business performance with the dashboard. The inventory tracking feature is also important to reduce costly stock-outs and minimize waste.

Xero aims to make sure all of their features for small businesses improve the way operations run for more efficiency. They also provide plenty of flexibility to accommodate businesses looking to scale from the small business phase with affordable pricing plans.

Pros

  • Sales invoices with plenty of customization options.
  • A wide range of integrations are available.
  • Advanced reporting capabilities.
  • Easy to use for users who don’t have a lot of accounting experience.
  • Payroll management can be automated.
  • Receipt scanning works well.
  • Highly intuitive data collection system.    

Cons

  • There is a problem with duplicate entries at times.
  • Some of the advanced reports require industry knowledge.
  • The project management tool could be improved.

FreshBooks

FreshBooks is a popular accounting software that allows you to manage your bookkeeping needs effortlessly from your computer or desktop. Some of these features include invoicing and time tracking tools, multi-user access, and more.

Many businesses also enjoy the flexibility provided by FreshBooks’ cloud storage solution that allows them to access their data remotely using any device or platform.

If you are a small business owner or freelancer, chances are you rely on accounting software to help you manage finances. Small businesses often need tools that can help them manage their business from anywhere and provide insights on how to improve their finances with the help of analytics.

With FreshBooks, small businesses can take their accounting on the go. This modern software is designed to make it easier for these entrepreneurs to manage all of their finances and get more done in less time.

One component of FreshBooks that makes it easy for small businesses is its mobile application. There are various features that make this app a necessity for these entrepreneurs and one feature in particular that contributes to this is the ability to track expenses quickly and easily.

Pros

  • Auto email tool works extremely well.
  • Lots of integrations are available.
  • Creating customized invoices is easy for all users.
  • Automatic expense reporting.
  • A large library of templates is available for use.  

Cons

  • Accounting tools are not as advanced as competitors like QuickBooks.
  • The mobile app is limited for Android users.
  • The reporting feature is not as advanced.

Why Small Businesses Need Accounting Software

Most small businesses can't afford the more expensive accounting software on the market, but that's not to say they don't need any software at all. Accounting software is necessary for managing day-to-day operations and taking care of finances.

It’s important that small businesses have accounting software because it helps them keep track of their finances and manage day-to-day operations. It also provides an easy way for you to stay organized, which helps your business grow and succeed.

Accounting software is a must for small businesses because it provides a convenient way to organize your finances, manage day-to-day operations, and stay organized.

Small businesses may not have the resources to hire full-time accountants on staff, but they certainly can benefit from using an accounting software program. These programs are affordable and easy to use, which allows small companies to save both time and money on their accounting process.

Which Software Is Best For You?

As a small business owner or freelancer, you will have specific requirements for software that suits you best. Overall, QuickBooks Online is the best available option for small businesses because they provide so many features and integrations to make your life easier.

QuickBooks also provides cheap plans starting as low as $8/mo to get started with plenty of features. You can start out small and quickly scale up your usage with QuickBooks while keeping the monthly costs low.

If you are only worried about pricing, Wave Financial would be the better solution because it is completely free to use. They only start charging if you need a financial tax advisor or payroll features. The accounting and invoicing tools are completely free.

Both of these software solutions can improve your business and make your day-to-day operations much easier as a small business owner.

Charles Hall

Charles Hall

Charles has spent 25 plus years in the world of accounting and business. His experience includes working as a CPA/Auditor international accounting firms. He has worked as a controller and as a COO for small to medium sized companies.

Learn more about Charles Hall