While not everyone is a fan of numbers, there's no denying that accounting is an integral part of any business. An accurate and up-to-date financial picture is essential for making informed decisions, from allocating resources to growing a company.
Businesses must track income and expenses, manage invoices and payroll, and comply with tax laws. Fortunately, many different accounting software programs are available to help companies handle their finances.
The best accounting software for small businesses should be easy to use, offer a variety of features, and be affordable. With that in mind, I will review the top accounting software for small businesses in this article, providing an overview of each program's features and pricing.
What Are The Best Small Business Accounting Software?
The following are some of the best accounting software for small businesses.
Best Overall Accounting Software
Zoho Books is one of the best online accounting software for small businesses.
With features that automate business workflows, it helps organizations save time on bookkeeping and other accounting tasks.
This means that Zoho Books is an excellent option whether you want a tool that helps you negotiate deals that are better for your business or simply want to automate your bookkeeping.
With the ability to view reports and analytics, you can quickly see how your business is doing and where improvements can be made.
As businesses scale, finances are a crucial area to focus on, and Zoho Books provides the financial software tools necessary to do so effectively.
Best For Visual Accounting
Neat helps small business owners visualize and manage their finances by tracking income and expenses and categorizing business spending.
Using the business' trending data, Neat provides insights and recommendations on how to save money and improve financial health.
For those that hate the end-of-month bookkeeping crunch, a receipts-to-expenses process can be automatically tracked and categorized with Neat's scanner.
You can capture a receipt's details in seconds and share it with your Neat account using a tablet or phone.
Best For Freelancers
Kashoo integrates the latest technology to provide a simple, easy-to-use accounting solution for small businesses and freelance professionals.
With proper customization that includes advanced reports, an easy-to-use interface with double-entry accounting, and the ability to track inventory, Kashoo is excellent for those who want a tool that will grow with them.
You can free send five invoices to test the software before you commit.
Best For Customizing Invoices
FreshBooks creates professional-looking invoices that include all the relevant information when billing clients, such as your company logo, payment terms, etc.
With FreshBooks, you can track the time you've worked on a project and bill accordingly, which is an excellent feature for those that need to track their time for client projects.
You can also set the system up to send automated late payment reminders, ensuring you get paid on time.
FreshBooks also connects to 100+ great apps that can make running your business easier.
Best For Direct Bank Syncing
Xero caters to everyone from accountants to bookkeepers and everyone in between.
The software is web-based and offers a wide variety of features, making it an excellent choice for businesses of all sizes.
With on-the-go tracking that gives you the confidence that your finances are always in order, Xero is great for busy business owners.
You can access your contacts and accounts online to manage your finances.
Then, sync with your bank using the right accounting software, and you can see all your financial information in one place.
Sage Business Cloud Accounting
Best For Business Compliance
Sage Business Cloud Accounting offers MTD-compliant software for businesses of all sizes.
Whether a sole trader or small business owner, Sage has an accounting solution to suit your needs.
There are no hidden fees to access additional features, allowing you to manage your business's accounting easily.
With the ability to have collaborators join your account, Sage Business Cloud Accounting is excellent for businesses that need to share their financial information with others.
Best For Claiming Entitlement
Intuit QuickBooks is an A to Z accounting solution for small businesses and accountants.
From customizing your invoice to claiming entitlement when tax time comes around, QuickBooks has you covered.
This is above and beyond what other accounting software offers, making it an excellent choice for businesses that want comprehensive accounting solutions.
Free and unlimited customer support is also provided, so no matter what your accounting needs are, QuickBooks can help.
Best For Customizable Reports
ZarMoney combines more than 40 apps and provides as many as one thousand reports that can be customized.
This makes it an excellent choice for businesses that need comprehensive accounting solutions.
From email purchase orders that can be sent directly to suppliers, to automatic payment reminders, ZarMoney has it all.
With automatic expense recording, you can ensure that you're always in sync with your books.
The software also considers sales tax, so when it comes time to file your returns, you can be confident that everything is accounted for.
Types Of Accounting Software
There are various classifications of accounting management tools. The most popular ones are double entry, single entry, and triple entry accounting software.
Double-entry accounting records each financial transaction in at least two different accounts. This type of accounting is more complicated than single-entry accounting but provides a more accurate record of a company's economic activity.
Single-entry accounting is the simplest type of accounting software. With this method, each transaction is only recorded once. This method is not as accurate as double-entry accounting but is easier to use.
Triple-entry accounting is a newer type of accounting software similar to double-entry accounting, but with an additional third entry. This third entry provides a more accurate record of a company's financial activity.
Top Accounting Software - FAQ
This is a difficult question to answer as it depends on the business and what type of accounting software they need. For smaller companies, there are several free accounting software options available that can be very effective. However, it is often worth paying for a more comprehensive solution for larger businesses or businesses with more complex needs.
There is a wide range of accounting software available, so the answer to this question can vary depending on the accountant's preference. From payment processing tools to full-fledged accounting suites, plenty of options are available to meet the needs of any accountant who works with clients.
A target market analysis is one of the best processes to go through as an accountant. Here, you will want to figure out exactly who your ideal client is. This process can help you determine the best way to reach these individuals and what type of accounting solutions they may need or want.
Depending on the business, the answer to this question can vary. However, some critical tools companies use include accounting, invoicing, project management, and CRM software.For example, a customer service agent might use call recording tools and a CRM to manage their clients. In contrast, a project management company might use accounting software to track their finances and invoicing software to bill their clients.
Accounting software is essential for any business, no matter the size. The right software can make your accounting process more efficient and accurate while providing valuable insights into your business finances.
Considering the above software when deciding is an excellent place to start, as all the platforms are well-known in the accounting industry. However, doing your research to find the best software for your specific business needs is vital.
Last Updated on June 30, 2023 by Hanson Cheng