Managing finances is a critical aspect of running a small business, but it doesn’t have to be overwhelming. With the right accounting software, you can automate many of the tedious tasks, ensure accuracy, and gain valuable insights into your financial health. Here are some of the best accounting software options for small businesses, each offering unique features to cater to various needs.
1. QuickBooks Online
QuickBooks Online is one of the most popular accounting software options for small businesses. It offers a comprehensive suite of features, from invoicing and expense tracking to payroll and tax preparation.
Pros:
- User-friendly interface with easy navigation.
- Robust reporting and analytics.
- Extensive third-party integrations.
- Mobile app for managing finances on the go.
Cons:
- Can be pricey for small businesses with limited budgets.
- Some users report occasional slow performance.
- Learning curve for advanced features.
Pricing:
- Simple Start: $25 per month.
- Essentials: $50 per month.
- Plus: $80 per month.
- Advanced: $180 per month.
Learn more about QuickBooks Online
2. Xero
Xero is a cloud-based accounting software known for its simplicity and powerful features. It’s designed to help small businesses manage their finances efficiently.
Pros:
- Intuitive and user-friendly interface.
- Excellent customer support and resources.
- Strong focus on collaboration and multi-user access.
- Integration with over 800 third-party apps.
Cons:
- Limited inventory management features in lower-tier plans.
- Some users find the mobile app lacking in functionality.
- Can be expensive for very small businesses.
Pricing:
- Early: $12 per month.
- Growing: $34 per month.
- Established: $65 per month.
3. FreshBooks
FreshBooks is an excellent choice for small businesses, freelancers, and service-based businesses. It offers a range of features to simplify invoicing, expense tracking, and time tracking.
Pros:
- Easy-to-use interface with minimal learning curve.
- Strong invoicing and time tracking features.
- Excellent customer service.
- Mobile app for managing finances on the go.
Cons:
- Limited inventory management capabilities.
- Can be pricey for businesses with many clients.
- Some users find the reporting features basic.
Pricing:
- Lite: $15 per month.
- Plus: $25 per month.
- Premium: $50 per month.
- Select: Custom pricing.
4. Wave
Wave offers free accounting software that’s perfect for small businesses and freelancers. It includes features for invoicing, expense tracking, and receipt scanning.
Pros:
- Free accounting and invoicing features.
- User-friendly interface.
- Strong integration with payment processing.
- No limits on the number of users or transactions.
Cons:
- Limited customer support for free users.
- Advanced features like payroll are not free.
- Lacks some advanced accounting features.
Pricing:
- Free for accounting, invoicing, and receipt scanning.
- Payroll: $20-$35 per month plus $6 per active employee or contractor.
5. Zoho Books
Zoho Books is a comprehensive accounting software that’s part of the Zoho suite of business applications. It’s designed for small to medium-sized businesses and offers a range of features.
Pros:
- Affordable pricing with a range of plans.
- Strong integration with other Zoho products.
- Comprehensive accounting and reporting features.
- Excellent customer support.
Cons:
- Can be complex for users unfamiliar with Zoho products.
- Limited third-party integrations compared to competitors.
- Mobile app functionality can be improved.
Pricing:
- Free for businesses with revenue under $50K per year.
- Standard: $15 per organization per month.
- Professional: $40 per organization per month.
- Premium: $60 per organization per month.
6. Sage 50cloud
Sage 50cloud combines the reliability of desktop accounting software with the flexibility of cloud computing. It’s designed for small to medium-sized businesses looking for robust accounting features.
Pros:
- Strong accounting and reporting capabilities.
- Integrates with Microsoft Office 365.
- Excellent inventory management features.
- Customizable to fit specific business needs.
Cons:
- Can be expensive for small businesses.
- Steeper learning curve compared to cloud-only solutions.
- Limited mobile app functionality.
Pricing:
- Pro Accounting: $340 per year.
- Premium Accounting: $510 per year.
- Quantum Accounting: $842 per year.
7. Kashoo
Kashoo is a simple and straightforward accounting software that’s perfect for freelancers, small business owners, and those new to accounting software.
Pros:
- Easy-to-use interface with minimal learning curve.
- Automatic bank reconciliation.
- Strong customer support.
- Mobile app for managing finances on the go.
Cons:
- Limited advanced features compared to competitors.
- No inventory management capabilities.
- Limited third-party integrations.
Pricing:
- True North: Free.
- Kashoo: $20 per month or $199 per year.
8. Zoho Invoice
Zoho Invoice is a free invoicing software that’s ideal for small businesses and freelancers. It offers a range of features to simplify billing and payment processes.
Pros:
- Free to use with no hidden charges.
- User-friendly interface.
- Strong integration with other Zoho products.
- Customizable invoicing templates.
Cons:
- Limited accounting features.
- Not suitable for businesses with complex needs.
- Limited third-party integrations.
Pricing:
- Free for all users.
9. KashFlow
KashFlow is a cloud-based accounting software designed for small businesses in the UK. It offers a range of features to simplify bookkeeping, invoicing, and payroll.
Pros:
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Excellent customer support.
- Integration with a range of third-party apps.
Cons:
- Limited advanced accounting features.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Starter: £8 per month.
- Business: £14 per month.
- Business + Payroll: £21 per month.
10. Gusto
Gusto is primarily a payroll service, but it also offers basic accounting features. It’s perfect for small businesses looking to manage payroll and HR tasks alongside their accounting.
Pros:
- User-friendly interface.
- Comprehensive payroll and HR features.
- Strong customer support.
- Integration with accounting software like QuickBooks and Xero.
Cons:
- Limited accounting features.
- Can be expensive for small businesses.
- Some users find the reporting features basic.
Pricing:
- Core: $39 per month plus $6 per person.
- Complete: $39 per month plus $12 per person.
- Concierge: $149 per month plus $12 per person.
Learn more about Gusto
11. FreeAgent
FreeAgent is a cloud-based accounting software designed for freelancers, small business owners, and their accountants. It offers a range of features to simplify accounting tasks.
Pros:
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Integration with a range of third-party apps.
- Excellent customer support.
Cons:
- Limited advanced accounting features.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Starts at £14.50 per month for the first 6 months, then £29 per month.
12. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a cloud-based accounting software designed for small businesses. It offers a range of features to simplify bookkeeping, invoicing, and reporting.
Pros:
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Excellent customer support.
- Integration with a range of third-party apps.
Cons:
- Limited advanced accounting features.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Accounting Start: $10 per month.
- Accounting: $25 per month.
Learn more about Sage Business Cloud Accounting
13. ZipBooks
ZipBooks is a free accounting software that’s perfect for small businesses and freelancers. It offers a range of features to simplify bookkeeping, invoicing, and reporting.
Pros:
- Free to use with no hidden charges.
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Integration with a range of third-party apps.
Cons:
- Limited advanced accounting features.
- No inventory management capabilities.
- Limited customer support for free users.
Pricing:
- Free for basic features.
- Smarter: $15 per month.
- Sophisticated: $35 per month.
14. OneUp
OneUp is an integrated accounting and CRM software designed for small businesses. It offers features for invoicing, inventory management, and sales tracking.
Pros:
- User-friendly interface.
- Comprehensive accounting and CRM features.
- Strong inventory management capabilities.
- Excellent customer support.
Cons:
- Limited third-party integrations.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Self: $9 per month.
- Pro: $19 per month.
- Plus: $29 per month.
- Team: $69 per month.
- Unlimited: $169 per month.
15. KashFlow
KashFlow is a cloud-based accounting software designed for small businesses in the UK. It offers a range of features to simplify bookkeeping, invoicing, and payroll.
Pros:
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Excellent customer support.
- Integration with a range of third-party apps.
Cons:
- Limited advanced accounting features.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Starter: £8 per month.
- Business: £14 per month.
- Business + Payroll: £21 per month.
16. Tipalti
Tipalti is an accounts payable automation software designed for small to medium-sized businesses. It offers features for managing invoices, payments, and compliance.
Pros:
- Comprehensive accounts payable automation features.
- Strong reporting and analytics capabilities.
- Excellent customer support.
- Integration with a range of third-party apps.
Cons:
- Limited accounting features outside of accounts payable.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Custom pricing based on your needs. Contact Tipalti for a quote.
17. ZipBooks
ZipBooks is a free accounting software that’s perfect for small businesses and freelancers. It offers a range of features to simplify bookkeeping, invoicing, and reporting.
Pros:
- Free to use with no hidden charges.
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Integration with a range of third-party apps.
Cons:
- Limited advanced accounting features.
- No inventory management capabilities.
- Limited customer support for free users.
Pricing:
- Free for basic features.
- Smarter: $15 per month.
- Sophisticated: $35 per month.
18. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a cloud-based accounting software designed for small businesses. It offers a range of features to simplify bookkeeping, invoicing, and reporting.
Pros:
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Excellent customer support.
- Integration with a range of third-party apps.
Cons:
- Limited advanced accounting features.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Accounting Start: $10 per month.
- Accounting: $25 per month.
Learn more about Sage Business Cloud Accounting
19. FreeAgent
FreeAgent is a cloud-based accounting software designed for freelancers, small business owners, and their accountants. It offers a range of features to simplify accounting tasks.
Pros:
- User-friendly interface.
- Strong invoicing and expense tracking features.
- Integration with a range of third-party apps.
- Excellent customer support.
Cons:
- Limited advanced accounting features.
- Can be expensive for very small businesses.
- Mobile app functionality can be improved.
Pricing:
- Starts at £14.50 per month for the first 6 months, then £29 per month.
20. Gusto
Gusto is primarily a payroll service, but it also offers basic accounting features. It’s perfect for small businesses looking to manage payroll and HR tasks alongside their accounting.
Pros:
- User-friendly interface.
- Comprehensive payroll and HR features.
- Strong customer support.
- Integration with accounting software like QuickBooks and Xero.
Cons:
- Limited accounting features.
- Can be expensive for small businesses.
- Some users find the reporting features basic.
Pricing:
- Core: $39 per month plus $6 per person.
- Complete: $39 per month plus $12 per person.
- Concierge: $149 per month plus $12 per person.
Learn more about Gusto
Choose the Best Accounting Software for Your Small Business
Choosing the right accounting software can make a significant difference in how efficiently and accurately you manage your small business finances. Each of the options listed above offers unique features and benefits tailored to different business needs. Whether you’re looking for a free solution like Wave, a comprehensive tool like QuickBooks Online, or a specialized service like Gusto, there’s an accounting software that’s perfect for you. Evaluate your business requirements, take advantage of free trials, and find the best fit to streamline your financial management and help your business thrive. Happy accounting!
