Small business owners may better understand their profitability, keep track of their accounts receivable and payable, and be ready for tax season with the aid of the best accounting software . Small firms can frequently utilize out-of-the-box accounting software without the need for significant customization. A customized enterprise resource planning (ERP) system is frequently required as a corporation grows and its accounting requirements become more sophisticated.
Before choosing the three best accounting software providers most suited for small businesses, we examined and contrasted many accounting software providers. We assessed the products’ capacities, costs, and suitability for the market. Here are our best accounting software for small businesses.
The Best Accounting Software
One of the most popular accounting programs used by small businesses and their bookkeeping and tax specialists is Intuit’s QuickBooks Online. The cloud-based software can be accessed through a web browser or a mobile app.
Simple Start is $25 per month, Essentials $50 per month, Plus $80 per month, and Advanced $180 per month. These four membership tiers are available after the 30-day free trial. For the first several months, a sizable reduction is typically provided, and some accountants are also able to provide small businesses with wholesale prices.
The software’s monthly subscription can be increased as a company expands, and the mobile app’s numerous customization possibilities can be used to accept payments, check reports, scan receipts, and track business mileage. QuickBooks Payroll fully connects with QuickBooks Online for companies searching for a payroll solution.
Each plan includes increasingly sophisticated features including cash flow, time monitoring, additional users, and inventory management. Simple Start will typically find that it satisfies all of the needs of small enterprises that provide services. Small businesses that sell products will have greater inventory and customization possibilities with Essentials or Plus. The Advanced subscription is a brand-new service that offers comprehensive Fathom-powered financial reporting. Many significant businesses throughout the world use the top-tier online financial report analysis tool known as Fathom.
Integration with third-party applications like Stripe or PayPal is possible with all plans. The app store for QuickBooks Online categorizes all of its apps by function and offers practical illustrations of each app’s advantages.
- Mobile application
- Frequently employed by accountants
- Integration with third-party applications
- More users demand an upgrade.
- Sometimes issues with banks and credit cards during syncing.
Founded in New Zealand in 2006, Xero today has more than 3 million subscribers globally. In Australia, the UK, and New Zealand, this accounting program is well-liked. Over 4,000 people work for Xero, and the company is expanding quickly here as well.
Three monthly membership plans from Xero are available, together with a full-service payroll add-on: At first, it cost $12 per month, then it grew to $34 and finally, it cost $65 per month. Gusto provides the full-service payroll option, which costs an additional $39 per month + $6 for each employee. The business provides a 30-day risk-free trial.
Only 20 invoices or quotes and five bills may be entered monthly under the Early plan, which has use restrictions. This restricted plan can be appropriate for a small service provider or consulting firm that performs a select number of high-ticket monthly transactions. Unlimited invoices and bills are available for both the Growing and Established programs. The Established plan contains extra capabilities including multi-currency, spending management, and project costing, which is the only distinction between the two. Hubdoc, a bill and receipt capture solution, is available with all three plans.
- Mobile app
- Third-party app marketplace
- Simple inventory management
- Payroll integration with Gusto
- Limited reporting
- Fees for ACH transactions
- Inadequate client service
FreshBooks began as merely an invoicing program when it was founded in Toronto in 2003. FreshBooks today has over 30 million users and has added more features over time. There are four distinct programs, and companies can save 10% by paying annually as opposed to monthly. Furthermore, FreshBooks frequently provides discounts for the first several months of membership. The four levels are Lite ($15/month), Plus ($25/month), Premium ($50/month), and Select ($50/month), which is a special service with special pricing. Without any discounts, these are the costs.
The number of unique consumers that can be billed each month is the primary distinction between the four tiers. Up to five clients may be paid monthly under the Lite plan. Up to 50 clients may be paid monthly under the Plus plan. Unlimited clients can be paid monthly under the Premium plan. Additionally, there is no cap on the number of customers who can be paid monthly with the Select plan, which also includes special benefits.
The advanced payment option, which enables users to charge a credit card in real-time or set up a recurring credit card charge for a client, costs an additional $20 per month, in addition to an additional $10 per month for each additional team member that uses the accounting software.
There are numerous connectors for third-party apps, including Gusto, G Suite, and others. The ability to highly stylize and personalize invoices for a business-like appearance and feel is one of FreshBooks’ distinctive features. FreshBooks is a fantastic resource for creating project budgets, distributing estimates and proposals, and collecting client payments.
- User-friendly interface
- Advanced invoicing features
- Third-party app integration
- Mobile apps have restrictions.
The final thought
The best accounting software can assist small businesses with a variety of tasks, such as handling tax season and managing their expenses. However, every company is unique.
Our list was topped by QuickBooks due to its scalability, training materials, and mobile app. You’re sure to find a good fit with one of our other options if QuickBooks isn’t the best accounting software.