Small businesses need accounting software to keep track of their income, expenses, and other finances.
Although it's not the fun part of running a small business, keeping tabs on cash flow and being ready for tax time is essential for your business.
Key Takeaway You Will Get From This Article
Depending on your small business industry and personal preferences you may benefit from utilizing QuickBooks, Freshbooks, Zoho Books, Xero, Wave, or Sage for your accounting software.
Sure, there are built-in options with your computers, but handling your bookkeeping and accounting using Excel spreadsheets isn’t ideal.
Small businesses should use accounting software because it is more efficient and makes fewer mistakes than manual processing with spreadsheets.
The accounting software that's best for your small business will depend on your industry and personal preferences.
In the article below, we’ve compiled a list of the best bookkeeping software for small businesses.
Table of Contents:
Countless small businesses use Intuit QuickBooks Online.
Quickbooks is cloud-based accounting software with a robust feature set that can be easily accessed online or on mobile devices through its mobile app.
Our favorite Quickbooks Online features are:
Features vary depending on which plan you choose.
Depending on the features you need, you’ll want one of QuickBooks’ four monthly plans.
This online accounting software is a great place to start if you want to streamline your bookkeeping and accounting.
FreshBooks also uses cloud-based accounting and invoice software that you can access via iPhone, Android, and iPad apps.
We love Freshbooks because it’s easy to use for business owners who have little to no accounting experience.
This accounting software has a ton of useful functions, is reasonably priced, and is easy to use on the go.
Features of FreshBooks include:
Zoho Books stands out from the other crowd because of the advanced features of its excellent mobile app.
The Zoho Books app can perform almost any accounting task, including invoicing, online payments, entering bills, and viewing reports.
You can also create recurring invoices and track time worked, making it excellent for freelancers.
Zoho Books is part of the family of Zoho apps, so it can be integrated to give you a comprehensive solution to all your business needs.
You can purchase Zoho Books on its own or in the Zoho Finance bundle.
Pros of Zoho Books:
Xero is great for micro-businesses looking for simple accounting software.
Xero has a clean user interface and fully integrates with third-party payroll services.
Businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless.
Pros of Xero:
Xeros' simplicity and scalability make it one of the best small business options available.
Each plan comes with a free 30-day trial for unlimited users, so there's no risk in trying it out.
If you don't need inventory management or payroll-related services, Wave Accounting is made for you.
You can access Wave’s free software online or on their mobile app.
Pros of Wave:
Wave offers a nice balance for those who want to keep accounting costs low while still having access to additional features if needed.
Sage Business is cloud-based and allows you to choose your industry, company size, and needs.
Sage Business Cloud Accounting is great for small businesses with multiple users because it doesn’t require accounting knowledge.
It can be set up to be used by multiple users.
Your accountant can use the software and access your books, and it's included in the monthly base fee.
Sage's features include:
Once you've synced your bank accounts and credit cards with accounting programs, transactions will appear in a queue.
Once there, they can be classified into categories.
Once the proper category has been selected, transactions begin to populate the business’ financial statements.
Business owners can run financial reports in seconds to review their profitability, compare revenue and costs, check bank and loan balances, predict tax liabilities, etc.
Quick access to this financial information gives you the power to make crucial decisions as a business owner.
Many of these programs have accounting features that allow third-party application integrations.
So, your point of sale (POS) system that captures your sales transactions could integrate with your accounting software.
Once integrated, it can record specific transactions, sales tax liabilities, sales by subcategories, and more.
A time tracking application could integrate with the accounting software to add labor to a client invoice for service-based businesses.
Choosing the best accounting software can make your life as a business owner more accessible, but that is just one of many steps you can take to streamline your business.
Have you considered taking a look at your payment processing?
Electronic Merchant Systems (EMS) offers all the merchant services your business could need, from robust POS systems to quick and convenient mobile payment options.
With EMS, you get:
If these benefits seem valuable to your business, click below to speak with one of our payment experts today.