Are you a boss at managing your thriving small business, but having trouble managing your books on your own? That's where accounting software comes in.
Here, we'll provide a rundown of some of the easiest-to-use small business accounting software options available, along with factors to consider as you select accounting software for your business.
We looked at 8 different accounting software for small business owners. While all of them are easy to use, they streamline different parts of the accounting process. Before picking an accounting software, consider how much you want to spend, what workflows you want to automate, and which tasks you most want automated.
In general, the top 8 small business accounting software for ease of use are:
What's the easiest accounting software of all? The kind you don't have to manage yourself! That's Accracy Accounting.
Accracy works exclusively with small businesses, from established operations to fresh, growing businesses. When you choose Accracy, your business is assigned a dedicated team of bookkeepers who complete your monthly bookkeeping and provide interactive financial reports that are easy to pull insights from. Accracy's tax teams can even file your income taxes for you! The user-friendly and intuitive platform can be accessed through web or desktop, and its interactive financial statements are simple to understand.
Cost
$299 to $499/monthly or $249 to $399/monthly (when paid annually)
Pros:
Cons:
FreshBooks is user-friendly and delivers some of the most outstanding invoicing and customer support available. However, its two most affordable plans have significant restrictions on the number of users and clients.
Cost
$15 to $50/monthly
Pros:
Cons:
Xero is known for its 1,000+ integrations and unlimited users and companies on all plans but has issues with usability, including unclear navigation and dashboard font that's difficult to read.
Cost
$12 to $65/month
Pros:
Cons:
A product of Intuit, Quickbooks can be customized to any industry and is one of the most popular online accounting software out there. Nevertheless, it's challenging to learn and not recommended for users without an accounting background.
Cost
$30 to $220/month
Pros:
Cons:
Zoho books' value for its price point is high, with its extensive mobile app features and considerable automation, but it does require a moderate learning curve for business owners, and fewer accountants are open to working with it.
Cost
Free to $70/monthly
Pros:
Cons:
Often regarded as the best free accounting software option on the market, Wave is designed specifically for small businesses and is easy to learn, even for beginners. Its free accounting tools are notable, yet it lacks sophisticated features like project, budgeting, and inventory management and is less scalable than competitors.
Cost
Free—Wave Payments and Wave Payroll can be added for a fee.
Pros:
Cons:
Sage 50 cloud accounting is one of the more robust offerings on this list. It's a hybrid software used for sending invoices, taxes, banking, payroll, and inventory. But a big perk for small business owners is its cash flow management tools with alerts and notifications helping you avoid cash-strapped situations. While it can easily grow with a business, and it's the only software we've listed that offers industry-specific software, Sage 50 does not come with a mobile app and only certain features are remotely accessible. It also limits users per account tier level and features little-to-no customization on the software's dashboard and invoicing options.
Cost
$56 to $155/monthly for a single user, $212-$287/monthly for five users (mid and top tier plans), custom pricing for 11+ users
Pros:
Cons:
Lendio acquired Sunrise in 2022 adding a free cloud-based accounting software to its offerings. The software has a wide range of features despite being free. With Lendio's accounting software, you can do invoicing, billing, and financial reporting with an option for payroll integration with Gusto. Some basic accounting software functions are missing such as time tracking and bank reconciliation and payment processing is only in the paid version.
Cost
Free to $19.99/monthly
Pros:
Cons:
Accounting software helps you record the flow of your money and keep tabs on your business's financial health.
While at first they may all look alike, each has different features and functions, and some are specifically designed to accommodate certain industries or business needs. To determine which accounting software is best for your business, you'll want to consider the following factors.
In general, the price you pay is determined by the breadth of features and the number of user accounts you have. Some systems may charge based on transaction volume as well.
During the selection process, keep both future and immediate needs in mind. Unless you're certain you only want to keep your business as a side gig, you're usually best off selecting scalable accounting software. That's software that can grow with your company, allowing you to add additional team members and more complex financial tasks and reporting features over time.
As you search for small business accounting software, ask yourself the following questions:
You want to make sure you can learn what you need to know in order to be up and running quickly, without having to set aside multiple days for training. In addition, consider the cost of making a mistake during your setup period—if the software is difficult to use or non-intuitive, you chance not only the loss of your time, but also potential costly implications on your taxes that you'll have to correct come tax time.
If you're going the DIY route, the best accounting software depends on your accounting needs. Saving some cash each month for a simpler option or spending to get better insights both have their perks. But generally speaking, your small business accounting software should include the following basic functions:
When searching for general accounting software, you need to understand the specific needs of your business and confirm that the software you're looking to purchase has the tools you need.
For those in industries like food distribution, which rely heavily on inventory management, search for software that comes with inventory tracking features or integrates with your point-of-sale system.
The hospitality industry relies heavily on customer relationship management (CRM) systems, so if you're purchasing software for that industry, you may want accounting software that can integrate with your CRM.
Anyone doing business in multiple countries will want accounting software that caters to this, including the option for multi-currency payments.
If you're not sure what accounting software needs you have, touch base with members of your industry's professional groups. This might involve asking for recommendations in a relevant LinkedIn group or seeking the opinion of a business mentor. If you know a CPA, check in with them as well.
Otherwise, you can take advantage of the free trial offered by most accounting software and see if it's a good fit.
In this digital age, access to a mobile app for your DIY accounting software can be remarkably helpful, saving you time and providing a convenient means for taking care of important financial issues on the go.
Most mobile accounting apps allow users to manage, create, and send their invoices and quotes to customers and vendors. These capabilities can greatly improve your cash flow by reducing the delay between the sending and receiving of your invoices.
More advanced apps let you capture receipts for tracking expenses, obtain signatures, review outstanding invoices, reconcile accounts, receive upcoming payment reminders, and more. As you learn more about each accounting software you're interested in, find out if they have mobile apps, what services those apps provide, and how their current customers rate the app. Also be sure to learn whether they support iOS, Android, or both.
The term software integration refers to the process of joining two or more software applications so they work in tandem. Accounting software, like most software, is limited in its abilities because it's designed to address a specific need. However, by integrating it with other software you can ensure all your systems work together seamlessly.
Shopify (ecommerce), Amazon, Microsoft 365 (a productivity suite), PayPal (a payment gateway), MailChimp (an email marketing platform), Basecamp (a project management platform), Vend (point of sale), and Gusto (payroll services) third-party app integrations are some of the most well-known and common integrations available for small business accounting software.
Some accounting platforms offer hundreds or thousands of integrations, like Freshbooks or Zoho books. If integrations are something you're interested in, double-check that whichever accounting software you decide on has at least a few integrations that will be useful to you.
Choosing an accounting software for your small business is no small decision, and it shouldn't be made overnight.
A good advice is to go and learn a little more about bookkeeping and accounting before you decide which accounting software fits in with your workflow. The basics of small business accounting is a great place to start.
We are offering free 1 Month Basic Bookkeeping to all new customers so you can experience Accracy's seemless and professional services.
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