White summary Magazine
By now most entrepreneurs will agree that having a good accounting software is a must for the organization’s overall financial health. The age-old system of accounting where paper-based processes ruled everything is not just appealing anymore. Such processes led to mistakes and inefficiencies that not only made the business life harder but also cost more cash in the long run.
Choosing the Best Small Business Accounting Software
Every business has its unique requirements for an accounting software. Ask yourself this question, what accounting software features do I need to run my business? Consider these features before you proceed to researching accounting software:
- Budgeting.
- Sales tracking.
- Inventory management.
- Quotes and estimates.
- Payroll.
- Tax reporting.
- Merchant account support.
- Third-party integration.
- Multi-user access.
- Mobile access.
Best Small Business Accounting Software
Here is a roundup of the best small business accounting software (listed according to their popularity):
1. QuickBooks
QuickBooks is a popular accounting software that has been with us for several years. With over 1.5 million subscribers, QuickBooks offers a well-rounded account management software package. It lets users create and send invoices, run payrolls, estimate tax payments, manage VAT, track deductible mileage and control stock levels among other things.
There are different QuickBooks options that are designed to meet the accounting needs of virtually any small business. They include QuickBooks Premier Desktop, downloadable software that goes for $349.95, QuickBooks’ mobile app and QuickBooks online (there are different packages).
Pros
- Affordable.
- Easy to use.
- Efficient.
- Good accounting reports.
- Flexible with 3rd party applications.
Cons
- Lacks some industry and business-specific features.
- Missing key reports outside of basic accounting.
- Unstable.
- File size issues.
2. FreshBooks
FreshBook is beloved accounting software for good reason. It is the best small business accounting software when it comes to ease of use, customer service, pricing and key features. It is a perfect for service-based business owners or solopreneurs.
Its features include:
- Invoicing – Allows you to create and send professional looking invoices straight from your phone or tablet.
- Get paid faster – The program integrates with time-tracking and payroll software such as Woocommerce, ZenPayroll or PayPal.
- Expense logging – The program has several internal add-ons that help you track expenses wherever you are.
Pros
- Best value.
- Ease of use.
- Saves time.
- Great customer support.
- Customization.
Cons
- Ongoing monthly fee.
- Absence of general accounting elements.
3. Wave
Wave is another best small business accounting software that we had to include on this list. With a price tag of free, most entrepreneurs would not expect much from this Web-based accounting platform. However, it is one of the best small business accounting software that offers several features for absolutely free.
The software can handle day to day business operations such as invoicing clients, importing credit and debit card transactions, and running financial statements such as balance sheet reports. It is suited for freelancers, consultants, or small businesses with 10 employees or fewer.
Pros
- Free accounting tools.
- Multi-currency feature.
- Appealing user interface and navigation tools.
Cons
- Slow.
- Reporting is simple and does not allow for much customization.
- Inability to import balances and transactions from other accounting software.
- Lack of budgeting or forecasting capability.
4. Xero
Designed specifically for small businesses, Xero is quickly becoming a top choice for most entrepreneurs. It has more than 700,000 subscribers who are mostly small businesses. The look and feel of the Xero’s interface is similar to that of QuickBooks Online, but with robust features. Therefore, it is best suited for existing QuickBooks users that are considering making a change to a more robust accounting solution.
Some of its features include Mac integration, balance sheet, expense claims, financial reporting, integrated payroll module, bank reconciliation, inventory, and invoicing.
Pros
- Reasonably priced.
- More features.
- Automatic software and upgrades.
- Perfect inventory tracking.
- Revamped contact records.
- Several add-ons.
Cons
- Lack of payroll for some states.
- Ongoing monthly fee.
- Security (secure only if you have the password).
5. Zoho Books
Zoho Books is also among the best small business accounting software that offers some of the most extensive basic accounting tools. The software goes a long way in offering services that some of its closest competitors don’t offer. It is suited for any entrepreneur who has an extensive inventory to manage or one who is looking for more control over their finances.
Its features include invoice tracking, automatic bank feeds and payment notifications, time tracking, online collaboration with customers, inventory management, reconciliation, API and automated workflows.
Pros
- Favorably-priced.
- Excellent client portals.
- Workflow automation.
- Exceptional help options.
- Many payment gateways.
Cons
- Lacks payroll.
- Lacks some of the third-party add-ons offered by its competitors.
Conclusion
Small businesses need an accounting software to stay on top of things. The best small business accounting software will give a business a clear picture of its financial health by tracking the inflow and outflow of cash. The software can be used to track expenses, create invoices, generate different types of reports among other things.
As you can see, there are different accounting software in the market, so choose wisely. Remember to leave us a comment and let us know the accounting software you settled for and why.
