Keeping track of finances is critical for small businesses, and using bookkeeping software helps make this task easier and more accurate. The right bookkeeping software automates tracking expenses, invoicing, bank reconciliation, and provides insights into cash flow, all while reducing the chances of errors. In this guide, we’ll explore some of the best bookkeeping software for small businesses, highlighting their main features, who they’re best suited for, and providing links for further exploration.
Why Small Businesses Need Bookkeeping Software
Bookkeeping software helps small business owners maintain organized financial records, track income and expenses, and prepare for tax time. For small businesses, using software instead of manual methods improves efficiency, accuracy, and allows owners to focus more on growing their business instead of being buried in paperwork. Many tools also provide mobile access and integration with other business apps, giving small businesses a comprehensive, flexible solution for managing their finances.
Top Bookkeeping Software for Small Businesses in 2024
Here’s a curated list of top bookkeeping software tools that can help small businesses keep their finances in check.
1. QuickBooks Online
QuickBooks Online is one of the most popular and versatile bookkeeping tools, known for its extensive features and flexibility. Designed with small businesses in mind, QuickBooks Online offers solutions for tracking income and expenses, invoicing, payroll integration, tax calculations, and financial reporting. With an easy-to-navigate interface and mobile app, this software allows business owners to manage their finances from anywhere.
- Features:
- Invoicing and expense tracking
- Payroll integration and tax calculation
- Customizable financial reports and budgeting tools
- Integration with over 650 business apps
- Best For: Small to mid-sized businesses looking for comprehensive bookkeeping and accounting solutions.
- Learn more about QuickBooks Online
2. FreshBooks
FreshBooks is an excellent choice for freelancers, consultants, and service-based businesses. This software focuses on invoicing and payment management but also offers features for tracking expenses, managing projects, and time tracking. FreshBooks provides an intuitive dashboard that simplifies financial management, and its mobile app makes it easy to handle finances on the go.
- Features:
- Customizable invoicing and payment reminders
- Expense categorization and project tracking
- Time tracking for billable hours
- Detailed reports and cash flow insights
- Best For: Freelancers and small service-based businesses needing robust invoicing tools.
- Learn more about FreshBooks
3. Wave
Wave is a free bookkeeping solution perfect for very small businesses, freelancers, and solopreneurs. It offers invoicing, expense tracking, receipt scanning, and basic payroll (paid option) in a straightforward, easy-to-use platform. Wave’s user-friendly design and zero-cost structure make it an attractive choice for startups or small businesses looking for a low-budget option without sacrificing essential features.
- Features:
- Free invoicing, expense tracking, and receipt scanning
- Simple payroll services (paid option available in certain regions)
- Financial reporting and tax-friendly record-keeping
- Integration with Wave’s mobile app for on-the-go access
- Best For: Freelancers and very small businesses needing a free bookkeeping tool.
- Learn more about Wave
4. Zoho Books
Zoho Books is part of the Zoho suite, which provides an integrated ecosystem of business apps. Zoho Books offers a full range of bookkeeping features, including invoicing, expense tracking, bank reconciliation, and tax filing. It also includes inventory management, making it suitable for small retail or e-commerce businesses. Zoho Books seamlessly integrates with other Zoho apps, making it ideal for businesses already using the Zoho suite.
- Features:
- Automated bank reconciliation and expense tracking
- Invoicing, multi-currency support, and tax management
- Project tracking and inventory management
- Integration with Zoho’s CRM, inventory, and other tools
- Best For: Small businesses that use Zoho products or need comprehensive bookkeeping with inventory tracking.
- Learn more about Zoho Books
5. Xero
Xero is a cloud-based bookkeeping software tailored for small businesses that need flexibility and scalability. Xero includes essential features like invoicing, expense management, bank reconciliation, payroll, and inventory management. Known for its clean interface and customizable dashboards, Xero also integrates with over 800 third-party apps, making it easy to adapt to various business needs.
- Features:
- Automated bank reconciliation and expense categorization
- Invoicing and multi-currency support
- Detailed financial reports and cash flow insights
- Inventory management and over 800 app integrations
- Best For: Growing small businesses needing scalable bookkeeping and advanced integrations.
- Learn more about Xero
6. Kashoo
Kashoo offers a simplified bookkeeping solution that is perfect for small business owners who want to manage their finances without unnecessary complexity. It includes core features such as invoicing, expense tracking, bank reconciliation, and financial reporting, along with real-time data. Kashoo’s straightforward dashboard and automatic categorization of expenses make it a favorite among users looking for simplicity.
- Features:
- Invoicing and real-time expense tracking
- Bank reconciliation and automatic categorization of transactions
- Multi-currency support and simple reporting
- Easy-to-navigate dashboard for quick financial overview
- Best For: Small business owners who want a simple, no-frills approach to bookkeeping.
- Learn more about Kashoo
7. Sage Business Cloud Accounting
Sage Business Cloud Accounting provides tools for managing invoicing, cash flow, expenses, and taxes. Sage’s bookkeeping software is user-friendly and customizable, with features for real-time insights and automated workflows. Its integration with Microsoft Office 365 makes it especially appealing for users already using Microsoft products. Sage also offers multi-user support, making it suitable for growing teams.
- Features:
- Customizable invoicing, expense tracking, and cash flow management
- Real-time bank feeds and tax management
- Integration with Microsoft Office 365
- Role-based permissions for multi-user support
- Best For: Small businesses that need basic bookkeeping with Office 365 integration.
- Learn more about Sage Business Cloud Accounting
8. QuickFile
QuickFile is a UK-based bookkeeping software designed for small to medium-sized businesses, particularly those with minimal accounting needs. It includes invoicing, bank reconciliation, and reporting features, along with automated tagging of transactions. QuickFile is ideal for businesses looking for a straightforward, budget-friendly solution, especially for those in the UK who need VAT support and easy bank integration.
- Features:
- Invoicing, automated tagging, and expense tracking
- Bank reconciliation and VAT support (UK businesses)
- Simple reporting tools and custom branding for invoices
- Integration with bank feeds for transaction updates
- Best For: UK-based small businesses needing basic, affordable bookkeeping with VAT support.
- Learn more about QuickFile
9. FreeAgent
FreeAgent is a bookkeeping solution built for freelancers and small businesses, with strong invoicing, expense tracking, and time tracking features. FreeAgent’s user-friendly dashboard provides an overview of cash flow, outstanding invoices, and tax deadlines. It’s especially popular among contractors, consultants, and independent workers, offering project management features that help track billable hours and expenses by client.
- Features:
- Invoicing, expense tracking, and time tracking
- Cash flow overview and tax reminders
- Project management for tracking billable time and expenses
- VAT and tax filing support (primarily for UK users)
- Best For: Freelancers, contractors, and small businesses needing client-focused bookkeeping.
- Learn more about FreeAgent
10. Sunrise by Lendio
Sunrise is a bookkeeping tool offered by Lendio that provides invoicing, expense tracking, and cash flow management. With both free and paid plans, Sunrise allows small business owners to manage transactions, reconcile accounts, and create financial reports. The tool’s simplicity makes it easy to use for beginners, and it also includes an option for paid bookkeeping support.
- Features:
- Invoicing, expense tracking, and cash flow management
- Account reconciliation and transaction categorization
- Free plan with optional paid bookkeeping support
- Budget tracking and financial reporting tools
- Best For: Small business owners who need a straightforward bookkeeping tool with the option for additional support.
- Learn more about Sunrise by Lendio
Choosing the Right Bookkeeping Software for Your Small Business
The best bookkeeping software for your small business will depend on your specific needs, budget, and level of complexity in financial management. Tools like Wave and Sunrise offer essential features for free, making them excellent choices for very small businesses or startups. Meanwhile, comprehensive platforms like QuickBooks Online, Xero, and Zoho Books provide robust features and integrations suited for growing businesses with more complex needs. Freelancers and contractors may prefer FreshBooks or FreeAgent for their invoicing and project management capabilities.
Each of these tools can simplify bookkeeping, reduce errors, and help you stay organized, ultimately supporting your business’s growth and success. Explore the features and links provided to find the perfect fit for your small business.
