15 Best Small Business Accounting Software Tools for Growing Businesses

0/5 No votes

Report this app

Description

Although there’s certainly plenty of small-business accounting software on the market today, choosing the best one can be a bit difficult.

With all the overlap in function and significant differences in cost, it’s too easy for entrepreneurs to wind up selecting the wrong accounting software. If you’re only using it for a brief period of time, changing to a different program for accounting may be more hassle than it’s worth. This is a prime illustration of the myth of the sunk cost–which is why choosing the correct tool from the beginning is crucial.

We’ve created this list of the top small-scale accounting software tools for small-scale businesses. We’ve divided our list in two groups: cloud-based web apps as well as desktop-based applications.

What is accounting software?

Accounting software is a crucial tool to meet all your bookkeeping requirements. In addition to managing account payables and receivable , to sending invoices to clients and performing reconciling bank accounts, the accounting program is able to manage them all. All of the work is handled in one central location and reduces paper work, which saves trees and creating space to store filing cabinets.

Accounting software benefits

Enhancing the efficiency of business processes

In removing manual calculations, accounting software will accelerate the process and help you focus on other things. Accounting software can help you keep track of the books, without having to make your desk. There is no need to calculate the numbers using various applications as everything can be displayed on a single screen.

Enhancing accuracy

To monitor the growth of your company it is crucial to keep a complete financial record. With an accounting system, you can simplify the accounting process which could be susceptible to mistakes. Many accounting software programs can automate calculations when you input data, alter assets or transfer cash. Additionally, it can generate analysis. The chances of oversight are reduced. If you have to look for mistakes, you will be able to quickly identify and correct errors prior to finalizing.

Lowering the cost of operation

If you install the software that best suits your business and your needs, you can cut down on the expense of outsourcing , but not limit the quality of your reports. Cloud-based accounting and on-premise software could help save printing and paper costs.

Securing database

The majority of accounting software comes with password protection. This allows you to keep confidential information safe from unauthorized employees. Additionally, having your information saved in the software will aid in facilitating quick access and protect against natural catastrophes. If your information is available digitally and secure, it’s not vulnerable to catastrophes like floods, fires, earthquakes, among others.

Synchronizing files

The amount of paperwork that needs to be logged will get more complicated as your company expands. With the help of software, you are able to access information across various platforms and search through electronic records with no trouble. Accounting software also allows databases on various platforms to sync which makes it simple to transfer information.

Simple tax compliance

Tax-related duties consume a large amount of time. This can be a waste of time which could have been spent for other tasks, like developing new products, secure new customers, or enhance services. By using the tax-planning option it is possible to save receipts, invoices and income and expense statements in one location.

Automating records-keeping

Record-keeping is an essential aspect of managing finances, however it can be a bit difficult and labor-intensive. To simplify the process accounting software offers functions that combine the input data from various applications. Apart from integrating them into a comprehensive operation system, it will additionally perform other functions such as studying the business practices and identifying patterns in the flow of money. Then, it will determine and reveal the areas and times you generate more income and what areas you should to improve and so on.

Best accounting software to use in 2021

FreshBooks

FreshBooks‘s Cloud-based invoicing and accounting software helps to clarify the financial status of a company by providing dashboards and reports, which makes it ideal for small-sized companies as well as small-scale entrepreneurs. From tax summary to reports on profit and loss The dashboards and reports will provide clear insight into the company’s performance.

MUST READ: Click-and-Collect Tips For POS Systems That Businesses Can Make Use Of

It is able to work seamlessly on mobile and desktop computers, FreshBooks contains project management capabilities. This makes it an excellent choice for companies who work on a per-project basis and must track the billable hours.

Features that are not available

  • Compatible with different gadgets:FreshBooks app allows businesses to issue invoices, keep track of expenses, and check the confirmation of invoices after they have been viewed from mobile devices. The desktop and mobile software continuously synchronize to keep the information up-to date. Businesses can also reply to client feedback or questions directly via the app and save them in one place to make it easier.
  • Offer diverse report types:FreshBooks’s dashboard is equipped with many reports like profits and losses sales tax summary expense, payments collected and more. Reports can be classified by date, client, or team member. They can be exported, saved, or printed.
  • Simple tax collection:The feature guarantees accurate sales tax is applied to invoices. It also categorizes expenses to ensure that businesses are prepared and comfortable for tax time.
  • Personalize your invoice:This feature allows businesses to personalize and design their invoices, by including a logo of their company and creating personalized thank-you email messages.

Limitations

Despite offering a wide array of features and benefits FreshBooks does have some drawbacks, for example:

  • In-built feature is not equipped with the ability to track mileage or an Inventory management module.
  • There are no community forums available for users to connect with each and with each
  • There is no fixed asset management software

Pricing

30 days free trial is accessible (no credit card needed)

  • Lite: $15/month
  • Plus: $25/month
  • Premium: $50/month
  • Customized plan

QuickBooks Online

The Intuit’s QuickBooks Online is an extensive cloud-based application specifically designed for medium and small enterprises. It includes accounting functions banking, invoicing functions, reports, as well as inventory as well as project management support with only a few online help resources.

Features that are not available

  • Keep track of the inventory In QuickBooks, stock management offers instant updates and reports on stock. In addition, prompt notifications make businesses alert when stock levels reach low levels. Automatic modification features manage the quantity so that businesses have the latest inventory available which helps prevent shortages in stock. Extra-depth inventories reports are also available , so firms can review which items have been stockpiled along with total sales as well as taxes.
  • Create a coherent report:This feature could create documents such as financial statements, cash flow statements as well as balance sheets and other reports. Companies can tailor every report to meet their specific needs. It also provides an overview of financials and other data that can be distributed to employees.
  • Tax rates can be calculated:Sales tax module of QuickBooks can alter the sales tax immediately according to the categories of products as well as the locations of sales. After categorizing the items and locations, the software could decode the appropriate sales tax to the invoices , based on the location, date, and the customer. This module allows companies to determine the due date for local and state sales tax, and offers them the option of filing their taxes electronically or by hand.
  • Access to various platforms:QuickBooks is also available as a mobile app that works on iOS or Android devices as well as desktops. Businesses can document their expenditures, track transactions review reports, and issue invoices. The information would be automatically stored to cloud storage and synced with all the devices available.
  • personalize the invoice: The option personalize invoices: The featurecomes with a variety of customizable templates that can be illustrated using your preferred colors and logos. Businesses can also schedule the recurring invoices as well as create billable hours in a timely manner using this feature.

Limitations

Although it comes with a wealth of benefits and features, QuickBooks still has some disadvantages, such as the typical day-to-day reports isn’t accessible.

Pricing

A 30-day trial trial for free is accessible (no credit card needed)

  • Easystart: $20/month
  • Essentials: $35/month
  • Plus: $50/month
  • Independent contractors (for freelancers) Pays $10 per month

XERO

Xero provides businesses with complete financial data to assist in the revision of your financial reports. It allows businesses to connect with over 800 software and applications including Paypal, Stripe, ADP, etc. Xero is also equipped with performance dashboards, which monitor the effectiveness and profitability of your business.

Features that are not available

  • Modify invoicesXero allows businesses to include logos on invoices, make reminders, and notify customers of invoices’ status, such as’seen’ or “paid”. Companies can send invoices in bulk quantities as well as create repeated invoices and let customers instantly pay invoices. The system can handle tasks such as making invoices editable and storing original invoices.
  • Control inventory:Inventory management of Xero gives consistent information about the most popular products that allow businesses to analyze their earnings, decide which products to purchase and the best way to price their products. Companies can also import huge amounts stock into Xero using spreadsheets.
  • Reports can be shared and measured:This tool could prepare and import a comprehensive budget, and compare the performance of financials against specified dates. Additionally, it makes use of text blocks, custom columns and formulas as well as drag-and-drop accounts for revising the reports.
  • Modify tax proportionsThis could be used to charge or record sales tax on bills, transactions and invoices. Businesses can set additional tax rates and then set the defaults for purchases and sales. The report also contains a summary of sales tax, which contains the entire transactions which occurred and applied to calculate the sums in the worksheet for sales tax.
  • Access from all devices:Mobile Accounting app from Xero is responsible for creating the management of invoices. It also files and corrects bank transactions, and many more things using iOS as well as Android.

Limitations

Xero is a broad range of benefits and accessories, however it does have some limitations:

  • Only provides third-party vendor payroll features via integrations with solutions.
  • Only has a tiny number of reports built-in
  • Doesn’t track subsidy process

Pricing

A 30-day trial trial for free is accessible (no credit card needed)

  • Early: $5.50/month
  • Growing: $16/month
  • Established: $31/month

Wave

Wave is a comprehensive accounting program that is suitable for freelancers, sole proprietors as well as small-sized companies. It is able to integrate to more than 1500 apps and features a powerful dashboard that provides a clear overview of loss, profit in addition to cash flow.

Features that are not available

  • Access to invoices via mobile:Wave allows businesses to create, relay and edit invoices from any location. Businesses are instantly notified of due dates for invoices and whether or not they’ve been paid or viewed, thus businesses can effectively monitor the flow of cash. Customers will receive automatic reminders to pay when the due date occurs.
  • Reports are categorized:Any type of report can be made and exported into sales tax reports using balance sheets. The reports can be separated by sections, because of the homepage of Wave.
  • Restrict invoicesBusinesses may set-up, duplicate or repeat invoices using flexible terms for payment, automated credit card and bank transactions. The feature also tracks partial payments as well as full payments in addition to late payments.
  • Tax accuracy:Sales tax is instantly encrypted for invoices so that they can be in compliance with tax laws of the state and local guidelines. A simple dashboard is in place to keep track of all the expenses, payments invoicing, income and payments and is ready for tax time.

Limitations

Despite its wide range of advantages, Wave has some restrictions:

  • It does not make purchase or sales orders.
  • Do not have the time to track
  • It’s not a lot of options in terms of contact management software

Pricing

The application itself is completely free however there are additional costs for payroll processing and payments. Outsource services for tax and financial processing costs $149 per month.

Zoho Books

Zoho Books is a tax-compliant software that helps with receivables and payables management, enhancing workflow and working with employees. Zoho Books works for small firms that are looking for an affordable accounting that is fully-featured, designed user interfaces and mobile device support.

Features that are not available

  • Invoices that are proof of falsity:With Zoho Books, transactions will be verified and approved prior to the time an invoice is sent. Businesses can create and customize invoices using the logo of their preference and fonts of choice. Customers can select between cash, web or pay by check options.
  • Monitoring inventoryThe software for managing inventory can be easily edited and organized the inventory according to details like SKU and vendor information price, cost, image of the product and stock available. Businesses can decide on level of reorders so that they could be informed prior to when stock levels fall lower than the required minimum.
  • Tag reports are easy to create:The feature allows businesses to create tags and assign them to specific contacts and products to ensure that the report can be found easily. It also creates and personalizes reports, such as balance sheets as well as profit and loss reports or cash flow statement. The reports on transactions history is accessible to review and view buyers, sellers, products as well as other products.
  • Clearly define sales taxThanks the help of Zoho Books the business can define a default tax rate and input exemptions, as well as determine various taxes that are related to the business. It can also calculate and provide businesses with detailed report on tax sales.
  • Mobile applications:iOS and Android app of Zoho Books grants the power to generate transactions, allow the setting of reminders ,run reports, keep track of times, and more.

Limitations

Regardless of the huge number of advantages, Zoho Books still has certain flaws.

  • The profit/loss of a particular customer are not available
  • Forecasting profitability data is not available

Pricing

A 14-day trial is free ( needing a credit card)

  • Basic: $9/user/month
  • Standard: $19/month
  • Professional: $29/month

Why is it important to integrate with your POS system with an accounting software?

It is likely that your POS software will be responsible for taking care of hundreds of transactions. It is extremely time-consuming to manually input the data that you collect from your POS in accounting programs. When you integrate with your POS and accounting program, the data will be more clear and easy to review.

Cloud Accounting Software

1. FreshBooks

  • It is available as a Web application
  • Mobile app: Android, iOS
  • Cost: Plans begin at $15 per month
  • Trial period for free: 30 days
  • Shopify application or integration: Yes

A very well-known and popular small-business accounting tools that are that is available today is FreshBooks..

Image source: Freshbooks .

A lot of FreshBooks tools are equipped with smart automatizations and assistive technologies created to make bookkeeping simple. FreshBooks can be set to automatically reconcile debit and credit amounts and import financial information from various sources. Users are also able to modify access rights on an individual basis. For instance, employees may be granted access to financial reports, whereas you may grant your accountant administrator rights.

Pricing begins with $15 per month for each user on the Lite plan.

2. Wave

  • is available for the following: Web application
  • Mobile app: Android, iOS
  • Price: Free
  • Free trial duration: N/A
  • Shopify application or integration: No

The majority of small business accounting software we’ve examined to date have been affordable. However, for new small-scale businesses, even the cheapest may be too to be expected at first. Wave is an accounting software designed specifically for small-sized businesses, is aware of the issue. That’s the reason why Wave is totally free.

Image source: Wave.

Wave is available on Windows as well as OS X, and with Android and iOS applications for invoices as well as receipts. Wave works well for small businesses that are still finding their way. Wave is able to do nearly everything high-end accounting software tools perform such as the management of expenses, reconciliation with banks with payroll, invoicing, and payroll.

If you think this is too promising to be real, sign up for an account for free and find out how Wave can aid you in managing your company’s accounts faster, without cost.

3. ZipBooks

  • It is available as a Web application
  • Mobile app: iOS
  • Pricing: Plans begin at $15 per month
  • Free trial duration: 30 days
  • Shopify application or integration: No

designed for entrepreneurs who may not have the experience of bookkeeping. ZipBooks will be simple and lightweight accounting software that eases the burden of precise accounting.

The image alt=”Screenshot of the accounting software tool ZipBook’s primary report dashboard.” data-src=”//cdn.shopify.com/s/files/1/0070/7032/files/zipbooks-dashboard-screenshot.jpg?v=1592247118″ src=”https://cdn.shopify.com/s/files/1/0070/7032/files/zipbooks-dashboard-screenshot.jpg?v=1592247118″/>Source: ZipBooks.

ZipBooks makes everything as easy as it can be. It is focused on the basics like receivables and accounts payable, so customers will not be awed by difficult menus or uninspiring features. ZipBooks statements and reports are simple and clean and focus on the most important details entrepreneurs require to run their businesses.

Its Basic plan costs completely free and comes with unlimited invoicing, basic reports and one banking account. Plans for additional plans begin at just $15 per month.

4. Holded

  • It is usable for Web application
  • Mobile app: Android, iOS
  • Cost: Plans begin at 10 EUR (approx. US$13) per month
  • Trial period for free: 14 days
  • Shopify application or integration: Yes

Accounting can be time-consuming and time-consuming, which is why Holden is aiming to automatize a lot of the work involved in bookkeeping to allow you to focus on managing your business.

Holders can be described as a cloud-based accounting software that provides real-time insight into the financials of your company. Users can link the general ledger in Holded with a variety in financial sources to give quick overviews of the company’s profits and losses forecasting and reporting as well as detailed accounting records and more, all in one click.

Holded is a fully integrated accounting software that provides significant time savings. Pricing starts around 11% per month for an initial 14-day trial.

5. Sage 50 cloud

  • is available for the following: Web application
  • Mobile app: No
  • Cost: Plans begin at PS65 (approx. US$82) per month
  • Free trial duration: 30 days
  • Shopify application or integration: No

Sage 50cloud Accounting is a full cloud-based accounting software that offers a variety of customization options as well as sophisticated functionality.

Source: Software Advice.

This product’s Pro Accounting plan– the cheapest plan, priced at $50.58 each month–is designed for small, independent companies. It is able to handle a variety of accounting functions, including the management of expenses, invoicing and tracking inventory. Sage 50 cloud Accounting can also work effortlessly to Microsoft Office.

Other plans offered by Sage offer additional options, like security rights based on role and accounts management for multiple businesses However, it can be expensive for smaller businesses with small budgets for administrative expenses.

6. Kashoo

  • It is compatible with: Web application
  • Mobile app: iOS
  • Pricing: Plans begin at $16.65 per month
  • Trial period for free: 14 days
  • Shopify app or integration No

Kashoo Kashoo is a a small accounting software for businesses that is designed to assist business owners automatize many of the administrative tasks that goes into bookkeeping.

Through machine-learning algorithms Kashoo can better understand your business as you make use of it. From receipt labeling through selling tax monitoring is analysed by Kashoo which lets it make individual suggestions on how to reduce costs, eliminate wasted time and increase the overall efficiency.

Kashoo’s automated, intelligent approach to accounting may not be suitable for everyone. Kashoo is priced at $199 for the year (about $16 per month) However, people who want to benefit from the way it handles bookkeeping can enroll for a trial for free.

7. OneUp

  • is available for the following: Web application
  • Mobile app: Android
  • Pricing: Plans begin at $9 per month.
  • Free trial duration: 14 days
  • Shopify application or integration: No

Similar to Kashoo, OneUp aims to make the process of bookkeeping a simpler process by automating the routine tasks.

Photo source: OneUp.

As time passes, OneUp “learns” how your accounting functions by studying the inputs like bank transactions on your account. OneUp will then prompt the user to confirm suggested reconciliations by one swipe on the device. The validations help make OneUp’s algorithms more efficient and provide more accurate recommendations in the near future. OneUp is also able to match specific bank transactions with late invoices, which saves business owners further time.

You can join to get an initial trial period of 30 days with OneUp or purchase the plan for only 9 dollars per month, for single users.

8. Blackbaud Financial Edge NXT

  • is available for the following: Web application
  • Mobile application: Mobile access available through mobile web browsers
  • Pricing: Available by request
  • Free trial duration: N/A
  • Shopify app or integration No

Nonprofit organizations are faced with a totally unique set of problems that for-profit businesses do not. However, not every commercial accounting solution addresses the different requirements of nonprofit organizations. That’s why non-profit organisations may want to think about blackbaud Financial Edge NXT for their accounting requirements.

Image alt=”Screenshot of Blackbaud Financial Edge NXT accounting software specifically designed for non-profit organizations.” data-src=”//cdn.shopify.com/s/files/1/0070/7032/files/blackbaud-financial-edge-nxt-screenshot.jpg?v=1592247085″ src=”https://cdn.shopify.com/s/files/1/0070/7032/files/blackbaud-financial-edge-nxt-screenshot.jpg?v=1592247085″/>Image Source: Better Buys.

Financial Edge NXT is fully compatible with FASB’s commonly accepted accounting practices (GAAP) for the US. It allows accountants from nonprofit organizations to plan their budgets for years ahead and the dashboards can be customized to fit the specific needs of your company.

Potential NXT customers are able to get in touch with Blackbaud directly to inquire about pricing details.

9. Accounting Seed

  • is available for Salesforce, web-based application
  • Mobile application: Yes, via the Salesforce app.
  • Pricing: Available by request
  • Trial length for free: N/A
  • Shopify application or integration No

A lot of small-business accounting tools are separate programs that exist as a separate entity from the main of the business. This is certainly not the situation when you use Accounting Seed. It is tightly integrated with Salesforce to provide insights on every aspect of your company’s finances.

Accounting Seed is a cloud-based accounting software that is integrated into Salesforce. Salesforce Customer Relationship Management (CRM) platform. It can be the sole, reliable source of information about the financials of your company. It is not necessary to be an existing Salesforce customer to utilize Accounting Seed, as the product can be used as a standalone web-based application. It can be easily customized without manual deployment of IT or custom code and is a perfect choice for small-scale business owners with less technical expertise required.

Unfortunately, the Accounting Seed pricing isn’t available publicly, however the business owners are able to get in touch with Accounting Seed directly for an estimate.

10. Xero

  • It is available as a Web application
  • Mobile app: Android, iOS
  • Cost: Plans begin at $9 per month.
  • Trial length free: 30 days
  • Shopify application or integration Yes, third-party integrations are can be found

If you’re a business owner who finds themselves always on the move, Xero might be the accounting software they’ve been looking for.

Xero is an accounting software that is targeted at small-sized businesses, placing emphasis on the ease of using and mobile functionality. Xero can be integrated across multiple devices and provides users real-time updates providing business owners with up-to-date information no matter where they are.

The software has a simple user interface that is easy to use and is capable of handling a range of accounting functions, including payroll (via an integration with Gusto) expense including billing and invoicing and sales tax calculation among other options. Pricing begins from $4.50 monthly.

11. Sunrise

  • It is an available Web application
  • Mobile app: Android, iOS
  • Pricing: Plans begin at $149 per month
  • Trial length of free trial: No free trial However, the Self-Service plan is completely free
  • Shopify application or integration: No

Bookkeeping and accounting can be time-consuming and tedious This is the reason Sunrise simplifies accounting easy, more user-friendly, and intuitive.

Sunrise can help you manage your company’s accounts. It lets users design personalized invoices in two clicks, design and email quotes to clients as well as create reports quickly and provide a quick review of their business’ financial health.

Ideal for those who do their own accounting, Sunrise is all about simplicity. self-service accounts are available for free With the additional plans starting at $149 a month.

Desktop software for accounting

12. QuickBooks Online

  • It is available to: OS X, Windows Web application
  • Mobile app: Android, iOS
  • Pricing: Plans begin at $25 per month.
  • Free trial duration: 30 days
  • Shopify app or integration Yes

The Intuit’s QuickBooks Online is a well-known bookkeeping tool which can assist entrepreneurs manage their accounting efficiently and quickly.

Image source: Quickbooks

QuickBooks offers everything that business owners require to manage their bookkeeping. QuickBooks offers a clear easy interface, with an intuitive reporting system, which means that even novices can get to speed fast. All QuickBooks plans come with expense and mileage tracking as well as tax and sales reporting as well as tools for managing 1099 contractors.

QuickBooks offers other plans that provide additional features, including inventory tracking and support for up to 25 users at a time as well as having access to an exclusive support manager. Pricing starts at $11 for a month.

13. Express Accounts

  • Available for: OS X, Windows
  • Mobile app: No
  • Cost: Plans begin at $8.83 per month
  • Free trial duration: A free version of Express Accounts is available for companies with less than five employees
  • Shopify app or integration No

Express Accounts is a budget-friendly accounting tool for small companies which eliminates all the frills and bells that come with other software to concentrate on the most important aspects.

Available on the both Windows or OS X, this accounting tool is perfect for small, independent companies that have less accounting requirements. Users can keep track of the sales and receivables details, keep track of regular orders and repeat invoices and also create quotations, sales orders and invoices.

Smaller-scale businesses that have less than five employees can avail Express Accounts for free, however, this plan comes with some limitations on usage. Other plans begin from $8.83 each month for a quarterly billing.

14. PlanGuru

  • is available on: Windows, web application
  • Mobile app: No
  • Pricing: Plans begin at $99 per month.
  • Free trial duration: 30 days
  • Shopify app or integration No

Forecasting is an essential aspect of accounting, however very few accounting tools make accurate forecasting at the forefront like PlanGuru can.

PlanGuru is a set of financial software that are designed to help accountants as well as financial planners better predict future financial trends. PlanGuru’s primary product provides more than 20 different forecasting strategies and lets accountants make financial projections that can be made that can be up to 10 years into the future.

With integrations to popular bookkeeping software, such as QuickBooks and Xero and automatic reconciliation of cash flows as well as a payroll tool, and pre-designed templates for reporting, PlanGuru can help business owners prepare in the near future. Pricing starts at $99 per month..

15. AccountEdge Pro

  • It is compatible with: OS X ( OS X Catalina is not recognized), Windows
  • Mobile app: No
  • Cost: Plans begin at $50 per month
  • Free trial duration: 30 days
  • Shopify application or integration: No

AccountEdge Professional is a stand-alone desktop program for Windows as well as OS X that can handle many accounting tasks, from receivables and receivables to payroll for contractors.

Image Source: PC Mag.

Contrary to the majority of small-business accounting software tools listed here, AccountEdge Pro is not licensed with a monthly subscription. In lieu, users pay a one-time cost for $399. AccountEdge is also available as the Basic version, however this isn’t equipped with many of the most valuable features, such as migration of QuickBooks data.

Read more about: A Guide for Entrepreneurs to Small-Business Finance and Management

Accurate accounting results in more profitable business

The reality is that no two businesses are identical, and the accounting software that works well for one firm might not be the best fit for another.

Although there is a lot of overlap between small-business accounting software mentioned above, only you are able to decide the best one for your company. Some business owners may view the ability to report on complex issues as a necessity while others may prefer the automated reconciliation. Before committing to an accounting software it is beneficial to take advantage of trial periods of free testing before making a final decision.

Leave a Reply

Your email address will not be published. Required fields are marked *