Best Accounting Software for Small Businesses

Best Accounting Software for Small Businesses

When you run a small business, accounting software is a valuable tool to manage your finances, track income and expenses, prepare for taxes, and stay on top of your financial health. It's a cost-effective alternative to hiring an accountant or a large firm. With numerous options available, it can be challenging to choose the right one. In 2023, here are some top choices:

• FreshBooks: Known for its user-friendly interface, making it easy for small business owners to navigate.
• Zoho Books: A great choice for those looking for free accounting software without compromising on functionality.
• Sage Business Cloud Accounting: Tailored to meet the needs of microbusinesses, offering a scalable solution.
• NetSuite: Offers automation features to streamline financial processes for small businesses.
• Xero: Known for its advanced features and capabilities, making it suitable for growing businesses.
• Intuit QuickBooks: Ideal for freelancers and self-employed individuals, simplifying financial management.
• MarginEdge: Specifically designed to cater to the needs of the restaurant industry.
• Kashoo: A startup-friendly accounting software that helps manage finances effectively from the beginning.
• Neat: Designed for self-employed individuals seeking a straightforward accounting solution.

Intuit QuickBooks

Intuit QuickBooks is a preferred accounting software for freelancers and small businesses, offering a straightforward approach to financial management. Starting at $30 per month, it provides essential features like income and expense tracking, invoicing, tax deduction optimization, and receipt organization.

Additional functionalities include cash flow management, sales tracking, sales tax handling, estimates, and contractor management. QuickBooks offers several pricing plans, with the Essentials plan at $55 per month, the Plus plan at $85 per month, and the Advanced plan at $200 per month, each adding more features and user access.

QuickBooks caters to freelancers and small businesses seeking a convenient way to handle financial matters, expense tracking, and mileage monitoring. It boasts comprehensive accounting capabilities and seamless integration with various software and applications. However, users should be aware that payroll features come at an extra cost, and the pricing doubles after the initial period.

Additionally, caution is needed to avoid creating duplicate transactions, and QuickBooks lacks e-commerce functionalities. In summary, QuickBooks stands as a dependable choice for freelancers and small business owners seeking an easy-to-use accounting solution.

Zoho Books

Zoho Books stands out as an excellent accounting software choice, especially for users of other Zoho applications. It offers comprehensive functionality, including invoicing, account reconciliation, expense tracking, and report generation. What sets it apart are its seamless integrations, allowing you to connect bank accounts, payment processors, and e-commerce platforms, providing real-time financial insights.

For businesses with less than $50,000 in annual revenue, the Zoho Books Free plan offers one-user access to manage clients, invoices, bank statements, and expense and mileage tracking. The Standard plan, priced at $15 per organization per month (billed annually), includes additional features like custom fields, reporting tags, and bulk updates.

The Professional plan, at $40 per organization per month (billed annually), offers advanced capabilities such as bill management, vendor credits, stock tracking, and price lists. For more advanced needs, the Elite plan, priced at $120 per organization per month, provides forecasting and multi-currency support, while the Ultimate plan, at $240 per organization per month, offers advanced analytics and 25 custom modules.

Zoho Books is ideal for small businesses using other Zoho products and service-based businesses, and it offers a free forever plan with a 1,000-invoice limit, as well as affordable paid options starting at $15 per month.

MarketsHost beckons you to explore the diverse dimensions of Business. Navigate through this rich landscape to gain valuable knowledge, network with industry experts, and make informed decisions for your enterprise.

FreshBooks

FreshBooks is an excellent choice for those prioritizing user-friendly accounting software. Designed with small business owners in mind, it simplifies tasks like invoice creation, expense tracking, project and client management, and report access. The Lite plan, priced at $17 per month, caters to businesses with up to five clients, offering unlimited expense tracking, estimates, payment acceptance, sales tracking, and unlimited invoicing.

For those with up to 50 billable clients, the Plus plan at $30 per month provides additional features like recurring billing, client retainers, and comprehensive reporting. The Premium plan, available at $55 per month for unlimited billable clients, includes bill management, vendor handling, project profitability tracking, customizable email templates, and more.

FreshBooks is an ideal choice for small business owners in need of user-friendly accounting software, particularly service-based businesses like consultants, web designers, and photographers. It offers competitive pricing and robust automation features. However, it may not suit businesses with a large number of clients due to client limits and lacks document management and payroll (available as an add-on).

Xero

Xero is a highly popular accounting software designed for small businesses. It offers various pricing plans to accommodate your business's needs, starting at $13 per month with the Early plan, which includes features like bank account reconciliation, bill and receipt management, and a snapshot of your business's finances.

As your business expands, you can consider upgrading to larger plans, such as the $37 per month Growing plan, which doesn't limit your invoices, quotes, or bill entries and provides bulk transaction reconciliation. The Established plan, priced at $70 per month, builds on the Growing plan by offering project tracking, multi-currency support, expense claims, and in-depth analytics.

Xero is an excellent choice for small businesses seeking accounting software with payroll capabilities. It's also well-suited for rapidly growing businesses that need project tracking features. The software is known for its user-friendly interface and provides 24/7 support. However, to deal in multiple currencies, you'll need to subscribe to its highest-tiered plan, and payroll features come at an additional cost of $40 per month.

NetSuite

NetSuite is an accounting software known for its strong focus on automation, making it a valuable tool for businesses aiming to streamline their financial processes. It offers automation features like creating journal entries and reconciling statements, which can save time and reduce stress for businesses. Additionally, NetSuite provides tools for financial compliance, including GAAP, ASC 606, and SOX, ensuring that businesses meet regulatory requirements.

Users can access valuable insights on profitability ratios, cash positions, liabilities, fixed assets, and taxes, all from a single dashboard. It's worth noting that NetSuite's pricing is customized, so you'll need to contact their sales team for a quote.

NetSuite is an excellent choice for businesses seeking assistance with financial compliance and those looking to automate various accounting tasks. It integrates seamlessly with other NetSuite products, such as HR, e-commerce, inventory, and order management, providing a comprehensive solution for businesses. However, users may face a learning curve with the software, and its pricing is not transparent, requiring personalized quotes.

MarginEdge

MarginEdge is an excellent choice for restaurants looking for accounting software tailored to their specific needs. It's particularly well-suited for food service businesses, offering features designed to enhance their operations. One notable feature is its integration with popular point-of-sale (POS) systems, allowing automatic importation of sales data and real-time margin tracking. Additionally, MarginEdge generates detailed reports on food usage, which can help restaurants reduce waste and improve profitability.

With MarginEdge, restaurants can access all its services for a fixed monthly rate of $300 per location, without any contracts or setup fees. While it doesn't offer a free trial, you can request a product demo to explore its capabilities.

MarginEdge is suitable for restaurants of all sizes looking to monitor margins and minimize food waste. However, it's important to note that it's primarily designed for the restaurant industry and does not include payroll features.

Sage Business Cloud Accounting

Sage Business Cloud Accounting is a solid option for microbusinesses and startups seeking affordable accounting software with essential features. Starting at just $10 per month for the Sage Accounting Start plan, it includes fundamental capabilities like invoicing, automatic bank reconciliation, and tracking accounts receivable.

For those looking for more advanced features, the Sage Accounting plan is available at a discounted rate of $7.50 per month for the first three months, then $25 per month afterward. This plan offers additional benefits, including unlimited users, quotes, estimates, cash flow forecasts, and purchase invoice management.

Sage Business Cloud Accounting is suitable for microbusinesses and startups that require basic accounting functionality at an affordable price point. However, established businesses with more complex needs may find the entry-level plan too limited. Additionally, it's important to note that payroll features are not included, and phone support hours are limited.

Neat

Neat is an excellent choice for self-employed entrepreneurs seeking user-friendly accounting software. It offers ease of use, mobile app access, and features like customized invoices, expense tracking, and automatic accounting reports. The annual subscription for Neat is $200, with an additional $50 for VIP Service and $150 for Automated Insights, offering various benefits.

Kashoo

Kashoo is well-suited for startups, offering a range of plans to accommodate business growth, including a free option. The truly small.invoices plan enables easy invoicing and payment tracking, while the truly small.accounting plan automates income and expense tracking. For more detailed reporting and customization, the Kashoo plan is available. Kashoo's pricing starts at $18 per month for the accounting plan, with a free plan for invoices. Payroll features are available in the highest-tiered plan.