There are many aspects to ensuring the success of your small business. The most significant is the management of your organisation’s finances. That said, it’s important to note that statistics show that 60% of small business owners feel they aren’t skilled enough to handle their company’s accounting. So this is why it is important to know the best small business accounting software programs.
With that in mind, it’s no surprise that an average of 64.4% of small business owners opt to use a form of accounting software. Have you recently started your own business? Are you looking to streamline your current accounting process? If so, you might be looking for the best small business account software.
Spoiler-What is the Best Small Business Accounting Software?
Based on statistics, Intuit QuickBooks is by far regarded as the most popular accounting software in the U.S. With an impressive 70.2% of business owners being acquainted with this software product in one way or another. To simplify, that means seven in ten organizations regard this product as the best small business account software for new and existing companies.
Image from QuickBooks website
Aside from being easy to setup, user-friendly and affordable, the Intuit QuickBooks software is specifically designed for small and medium-sized businesses. The tools on offer make it super easy to use for company owners with little or no accounting experience.
The most significant features of QuickBooks include:
- Simple integration with your financial institution (bank), Shopify, PayPal and Square among others
- Automatic sorting of expenses and financial transactions into predetermined tax categories
- Easy to scan receipts and link them to invoices
- Access to an interactive dashboard that enables customized reports and cashflow tracking
- Documents and transactions can easily be shared with your accountant or business partner
- Enables the user to do sales tax calculations, returns as well as record tax payments
- All plans include free mobile apps, QuickBooks support and app integration
Image from QuickBooks website
Another reason for Inuit QuickBooks’s popularity has to do with its reasonably priced product plans.
- Simple start: Products on offer include income and expense tracking, tax deductions and general reports
- Essentials: Additional features include bill management and 3 user access
- Plus: 5 users access, project profitability and inventory are the additional features you’ll find in this plan
- Advanced: Stand-out features to expect in this plan include customized access, business analytics and data restoration
The superior e-commerce functionality of the Inuit QuickBooks platform is quite possibly the reason why 4.5 million global customers are opting to use it. It’s ideal for starting and growing businesses alike. To find out if this platform is ideal for you, consider the free 30-day trial or take their online quiz to find the plan that best suits your business.
Image from Freshbooks.com
With over 30 million users globally, FreshBooks is often referred to as one of the best small business account software choices. As an affordably priced option, FreshBooks boasts some of the top invoicing software features for small businesses and entrepreneurs.
Some of the top features on offer from FreshBooks include:
- Enables the user to setup recurring payments, bank deposits, auto bills and bank integration
- Facilitates multi-currency and language billing
- Integrates online credit card payments
- Available tax assistance with tax deductions, estimates, apps and filing tools
- System features automatic tax calculations for sales tax
- Scheduled payment reminders
- Customizable options to include discounts, due dates and recurring invoices
Image from FreshBooks Pricing
The FreshBooks pricing plans make this accounting software option a firm favorite among small business owners. FreshBooks pricing structure is tiered as listed:
- Lite: Ideal for self-employed business owners with five billable clients
- Plus: Small businesses with at least 50 billable clients will benefit from this option
- Premium: This plan is ideal for growing companies with an unlimited amount of billable clients
- Select: With custom pricing and features, this option is perfect for existing businesses with an unlimited amount of billable clients
FreshBooks is also known for offering discounts or even bundled pricing options to companies that pre-pay.
Since FreshBooks is structured for scalability, it’s the perfect accounting software for agencies and entrepreneurs. An e-commerce site that has room to expand and increase its customer base will do well to consider the many invoicing features on offer. With a 30-day free trial period, you’ll have ample time to decide if this is the software option for you.
Image from Waveapps.com
Many companies opt for Wave Accounting because its invoicing and accounting services are free. For small businesses fresh out the gate, having access to free software is often a great way to save money in the growth stages. Wave Accounting is easy to use, cloud-based and perfect for business owners with little accounting experience.
Aside from being a free accounting solution, Wave also has the following features:
- Invoicing in any currency
- Automatic receipt recording
- Receipt scanning
- Income and expense tracking for sales tax
- Create estimates and convert them to invoices when approved
- Credit card and financial institution affiliations
- Easy to use dashboard
- Access to profit and loss statements and cash flow reports
Image from Waveapp.com
A very appealing aspect of the Wave platform is that its accounting, invoicing software and receipt scanning are absolutely FREE with ZERO hidden fees. However, there is a $35 monthly base fee on the payroll option. A $6 charge is also applicable for every active employee as well as each independent contractor. Payroll taxes are dependent on certain state regulations.
Fees associated with various card processing options include the following:
- Bank Payments: 1% for each transaction with a $1 minimum
- Credit card processing: 2.9% with an additional $0.30 for Discover, Mastercard and Visa transactions
- American Express: 3.4% with an additional $0.30 per transaction
Wave Accounting is one of the top options to manage your start-up e-commerce site. It’s important to keep in mind that the payroll and credit card options have charges associated with them. The free features aren’t excellent but they’re great for start-ups.
Sage Business Cloud Accounting
Image from Sage.com
Sage Accounting is one of the best software options to give you better control over your inventory management. Founded in 1981, the Sage Accounting platform was created specifically for small businesses. As a cloud-based platform, business owners can adapt the software to their unique company needs. Another plus is that it can easily be setup for use by multiple users.
A few of the most significant features you’ll get from Sage Accounting include:
- Easily accept and receive payments
- Manage payroll
- Manage cash flow and business finances
- Create and distribute invoices
- Easy to use dashboard interface to access and analyze financial reports
- Integrate your records with your financial institution
- Compatible with financial apps such as Zync and AutoEntry
- Superior inventory management
- Payroll management
Image from Sage.com
Sage Accounting’s pricing arrangement is quite straightforward. The two plans are made up as follows:
- Accounting start: This entry-level plan is primarily suited to assist business owners to manage cash flow. Some of the common features on offer in this plan include automatic bank reconciliations as well as creating and distributing invoices.
- Accounting: A superior cloud accounting system boasts cash flow, management, data entry and invoicing. Not only does this option support unlimited users, but also allows you to forecast cash flow.
Sage Accounting is ideal for use by multiple users such as your business partner or accountant. Business owners don’t need to have any prior accounting knowledge to reap the benefits of this program. The platform also currently offers a 50% discount for three months. Additionally, there are also free trials that you can test out in your business.
Xero (our favourite pick from the best small business accounting software programs)
Image from Xero.com
Founded in New Zealand in 2006, Xero is a web-based software designed to make accounting easy for growing small businesses. Its simplicity and compatibility with both Android and IOS apps make it a firm favorite with business owners, bookkeepers and accountants. Aside from boasting several impressive features, it also includes Hubdoc where users can capture receipts and bills as well as create projected costs.
Stand-out features of the Xero accounting software are:
- Access to up-to-date financial reports
- Protects business data
- Enables collaboration with partners, staff or even your accountant
- Compatible with over 450 different software programs and apps such as Square and HubSpot
- Easy creation of expense claims
- Simple integration and reconciliation with your financial institution
Image from Xero.com/pricing-plans
As with many other accounting software options, Xero has three pricing plans to choose from.
- Early: This plan includes reconciling bank statements, capturing bills and receipts as well as capturing information of five bills. Business owners will also be able to send twenty invoices.
- Growing: In addition to the Early Plan features, users will also be able to perform bulk reconcile transactions.
- Established: Additional features on offer with this plan includes analytics, tracking projects and accessing multi-currency options.
All plans can include Gusto payroll at an extra cost per month. Costs for the Payroll option are $40 per month, plus an additional $6 per month for each person.
Xero boasts a two-step authentication which can easily keep your business data secure, making it ideal for use in your online store. With its ease of use and multiple app compatibility, it’s ideal for growing and small businesses. Potential users can take advantage of the Xero platform for free for 30 days while deciding which option best suits your company’s needs.
AccountEdge Pro (one of the best small business accounting software programs for business with an accountant)
Image from AccountEdge Pro
If your growing business has an experienced accountant, then AccountEdge Pro is the option to consider. Unlike some of the other accounting software options, AccountEdge Pro is slightly more complex. That said, it’s better suited to business owners or accountants familiar with accounting principles and terminology. With a comprehensive range of customization options, it’ll be easy to find the best solution for your business.
Despite being an advanced accounting program, AccountEdge Pro includes features that even a growing business can benefit from.
- Extensive inventory management
- Full-service payroll
- Data sync with company files
- Direct deposit features
- Simple integration with your financial institution
- Easily creates quotes and converts them into invoices after purchase
- Free accountant copy
- Comprehensive vendor and customer management
Image from AccountEdge.com
AccountEdge Pro is well known for being a more progressive software program. Its extra add-on and custom features make this pricing range slightly higher than most other accounting software options.
- AccountEdge Pro Basic: Is made up of a $149 one-time fee and $199 per year for one user
- AccountEdge Pro: A one-time fee of $499 and $199 per year. While this option boasts licenses, add-ons, payroll services and credit card processing fees, bear in mind that these features come at an additional cost.
Since AccountEdge is customized to what your business needs, their sales team will be able to give you a more accurate quote for the features your business needs.
While AccountEdge is a more extensive software, it’s better suited to small and medium-sized businesses. Small businesses who oft for this software often start with the basic version and move up to the Pro version as their business needs increase. It’s the perfect solution for a more progressive E-commerce site that’s outgrown one of the more basic software options. The free 30-day trial will give you an idea of how your company will do with this software.
Image from Kashoo.com
Kashoo is perfect for small businesses and start-ups because it features different plans that grow with your company. A plus point of the Kashoo accounting software platform is that it includes payroll, has a free plan available and also boasts a free invoice plan.
As an easy-to-use accounting platform, the features that make Kashoo so popular include the following:
- Automatically track income & expenses
- Includes payroll
- Automate bookkeeping
- Track invoices and expenses
- Double-entry accounting software on some options
- Access to detailed reporting
- Easy to accept payments
- Send estimates
- Top tier plan features multiple users and payroll
Image from Kashoo.com
Kashoo’s pricing plan is made up of two paid options. The “trulysmall” accounting plan is ideal for small start-ups while the Kashoo option is better suited to larger businesses.
- Trulysmall accounting: Includes advance reporting and sales tax tracking.
- Kashoo advanced option: The advanced option includes multiple currencies, several users as well as expense and income tracking. Customize CoA and Payroll make this solution ideal for larger organizations.
Kashoo is ideal for businesses that want to automate their accounting processes without needing the extensive functions of a more complex platform. Its ease of use makes it the perfect starter software for your start-up or small business. Opt for the 14-day free trial to test the platform with your online business needs.
Image from Meliopayments.com
Melio accounting software enables you to simplify your business invoice payments. With the program’s multiple payment options, it becomes easier for business owners to streamline payment processes. Since Melio can easily be integrated with other software platforms, it’s easy to sync programs such as FreshBooks and QuickBooks.
A few of the more prominent features on the Melio platform are:
- Easily syncs with other software programs such as QuickBooks Desktop, QuickBooks Online, Microsoft Dynamics 365 Business Central and FreshBooks
- Enables batch payments
- Online support via email and chat
- Allows for recurring payments
- Provides access to unlimited users, without additional charges
- Multiple payments can be scheduled on various days
- Easy-to-use interface makes it quick to add vendor details
Image from Meliopayments.com/pricing
A huge plus point with the Melio software platform is that it doesn’t charge anything for setup. There is however a 2.9% fee for each credit card transaction. Additionally, the platform has two plans and a free option to choose from.
As an accounts payable solution, Melio is ideal for small businesses that need to manage their online payments using credit or debit cards as well as bank transfers. If you’re managing an online business, this solution is worth looking into. With a free trial version, it’s easy to find out if this option will benefit your company.
Image from Neat.com
The Neat platform has been created to simplify bookkeeping and accounting processes in small start-ups or self-employed entrepreneurs. Its ease of use, customized invoices and access to accounting reports make it easy for business owners to get a handle on their accounting processes. This is crucial in the early stages of setting up your business.
While Neat may not have as many extensive features and functions as some of the other options on our list, it’s great for self-employed entrepreneurs and very small start-ups. Some of the features on offer include the following:
- Guided workflows
- Real-time reporting
- Custom invoicing designed for small businesses
- Secure payments via WePay
- Easy access to invoices and quotes
Image from Neat.com
The Neat pricing set-up features one simple pricing plan that can be billed monthly or yearly. Additionally, they don’t charge for ACH/Bank Transfers. Their payment processing fees are standard and are the same as those charged by various banks for using debit or credit cards.
Wrap Up (h4)
Neat is a popular choice with new start-ups or self-employed entrepreneurs because of its simplicity. Aside from managing your basic business finances, their NeatFiles options will enable you to manage your financial documents. Also, their 15-day free trial offers you the perfect opportunity to test the platform’s compatibility with your new business.
Image from Accounting Seed.com
Accounting Seed is an innovative and superior accounting software solution that will change your company’s approach to accounting. With its customizable workflows, it’s easy to design a platform that simplifies your whole accounting process.
A few of the top features you’ll find with Accounting Seed include:
- Offers collaboration with other software programs and apps
- Uses automation to streamline the accounting process
- Links necessary applications to your financial institution
- Interface is easy to use and highly customizable
Image from Accounting Seed
Accounting Seed is ideal for small businesses looking for a robust cloud-based accounting platform. With its multiple customizable options, there isn’t a specific pricing range. Custom quotes are calculated based on your company’s unique needs. Pricing is there available on request, based on the functions you need.
As a cloud-based platform, you can log into Accounting Seed from anywhere to process your business accounting functions. It’s easy to use, highly customizable and easily works with with other programs to enhance your business.
What Makes The Best Small Business Accounting Software?
Basically, the best small business account software enables you to keep accurate and detailed records of your company’s finances. Keeping a digital record on an e-commerce platform allows you to access the information at any time.
finally, using a reputable program to manage your online business finances is more accurate and efficient than a manual process. Accounting software with tax calculating features is a great way to keep up to date with corporate services and compliances.
Ideally, the best small business account software should be affordable and provide customizable accounting solutions that simplify keeping track of your company’s finances. Additionally, the chosen software should have an inventory management feature and should be easy to use, even for an online store owner with minimal accounting experience.