Do you own a small business and want to know What Is the Best Bookkeeping Software for Small Business? If your answer is yes, then your search time ends here. Individuals and company owners alike utilize accounting software in order to keep tabs on their accounts.
That’s because it is faster and more accurate than manual processing, hence crucial for small firms. The automation tools and the ability to store and retrieve papers and receipts at any time are some other enticing benefits.
Around 60% of business owners say they aren’t good with numbers, but it’s encouraging that 64.4% of them use accounting software. You may then wonder, “What is the best bookkeeping software for small businesses?” Read on to find out which software is best for your small business.
We looked into different accounting software solutions for small businesses before settling on the ones to see what the best bookkeeping software for small businesses are. These were selected because of their usefulness to small business owners, their affordability, ease of use, and other criteria. Here are some of our favorites.
The Best Bookkeeping Software for Small Business
1. Sage Business Cloud Accounting
When it comes to digital accounting and business services, small businesses can turn to Sage Business Cloud Accounting, previously known as Sage One. It was established in 1981 with the intention of creating cost-estimating and financial-management tools for small enterprises.
It’s now available in the cloud and can be tailored to your business’s demands and the size and type of enterprise you run. Over 3 million companies rely on it for help finding the best accounting solutions for their needs.
Our research leads us to conclude that this company offers the best accounting program for smaller companies with several users since they are a dependable organization that produces user-friendly software that doesn’t demand prior accounting experience. The software and online access to your books are available to your accountant at no extra cost.
- Take charge of the company’s financial situation
- Receiving and accepting payments
- Billings are made and sent
- Processes payroll
- Accessible from any mobile device, it allows you to keep tabs on your finances wherever you go.
- Connects to your bank and other programs with ease, such as Zync, AutoEntry, and more.
- Tools for Tax Compliance
- Financial data and analyses are presented in an understandable dashboard format.
- Maintaining a balanced inventory
- Determine a Cash Flow Forecast
- Allow your accountant to access the data in real-time from any device.
- Enhancements like cost-estimating and human resource management
Basic Package: $10/month to keep track of the financial flow
Standard Package: Professional cloud accounting, including invoicing, cash flow, administration, and transaction records, maybe yours, for only $25 per month.
As of now, you may get a 50% discount for 3 months and a free trial from the company. If your company is interested in learning more about specific features, you may contact them directly.
2. Wave Accounting
Toronto-based Wave Accounting was established in 2010 to serve the needs of small enterprises with accounting software and related services. Payroll and credit card processing are two more features of this invoicing and accounting software. It’s user friendly, accessible through the cloud, and perfect for entrepreneurs who have never kept books before.
Backups of your data are automatically created, and you may link your banking accounts to keep track of your spending wherever you happen to be. Due to its low price and high quality, Wave Accounting remains an ideal option as small business accounting software.
Keep in mind that some functions, including payroll management and credit card processing cost money, so not everything is complimentary, and the unrestricted features aren’t as powerful as some of the additional software options. But it’s fantastic for startups, especially those using accounting or other automation tools.
- You can keep track of your income and spending forever
- Income and expenditures can be tracked for sales tax
- Dual-entry structure
- Friendly for multiple users
- Display of comprehensible financial data
- Arrange your financial data into tax categories.
- Statements of income and expenditures and cash flow projections
- There are no covert costs associated with using the software for invoicing, receipt scanning, or any other business administrative needs.
- Banking Transactions: 1% per transaction, with a minimum charge of $1. The Credit Card processing fee is 2.9%.
- Payroll services: This includes processing of payroll and related tax payments for a flat monthly rate of $35, plus $6 per active employee or independent contractor.
FreshBooks was established in Toronto in 2003 to cater to the bookkeeping requirements of small businesses. There are apps for iOS and Android devices that allow users to use the company’s cloud-based accounting and invoicing software.
It is one of our top picks for small business accounting software because it is simple enough for entrepreneurs with no accounting background to pick up yet powerful enough to meet all their needs, inexpensive enough to use whenever they need it, and accessible enough to be used on the move.
- Invoice prompts
- Automatic billing with flexible payment terms and reminders
- Time frames and sales prices
- Paying using a credit card online
- Payments can be made in multiple currencies and languages
- It computes sales tax automatically
- Types of Expenses That Are Deductible
- Recalled merchants
- Logging time spent using a Chrome add-on
- Automatic bill payments, recurring deposits, and direct deposits are all possible with bank integration
- Integration of tax preparation software, calculators, and filing aids
- Google Workplace and Gusto are just two of the many products it works well with
- Basic: To keep costs low, a sole proprietor with five regular clients can do business for $4.50 a month.
- Standard: In addition, small firms with 50 or fewer clients can save $7.50 each month.
- Premium: For expanding enterprises, the monthly premium of $15 is available with no limits on the number of clients who can be billed.
- Toggle between a la carte options and rates for enterprises with no hard restriction on the number of customers they bill.
Be careful to check the FreshBooks website for any prepayment discounts or package pricing that may be available before signing up.
When it comes to bookkeeping, Xero is the web-based system that small businesses need. Its primary users are sole proprietors, accountants, and bookkeepers, and it was established in New Zealand in 2006. Users don’t need any accounting expertise to get started, and it’s simple to set up and use.
It’s accessible from anywhere with an internet connection and has mobile apps for both Android and iPhone. Its user-friendly interface makes it ideal for group work, whether among colleagues or with a professional like an accountant.
For its many helpful features, such as a Hubdoc for documenting expenses and income and keeping track of the progress and expenditures of various projects, Xero was one of our top picks for small business accounting software with extra features.
It’s a perfect choice for accounting in small businesses of all sizes because of its flexible pricing and two-factor authentication for added data security.
- Make receipts for the cost
- Forwards all bills
- Speedy bank reconciliation and compatibility with over 450 other apps
- Updated accounting statements
- Encrypted business information
- Current cash flow situation
- Consultation with your accountant or employees
- Basic: Compose 20 invoices, enter 5 transactions and bank reconciliation statements, and scan in receipts for $12 per month (initially).
- Standard: It only costs $34 per month to send invoices, and quotes, enter bills, balance bank accounts, and scan receipts.
- Premium: Expenses and Projects are added to the Growing tier’s capabilities for an additional $65 per month.
Unlimited customers can try out any plan risk-free for 30 days.
5. Zoho Books
The Zoho Corporation started off in 1996 in India, but it has now expanded to California. It’s an accounting system for smaller companies that can be used online and used to manage money, make invoices, and work in tandem with an accountant in real-time, among other things.
Accounting, customer relations control, inventory control, and HR administration software are all part of the suite. We think Zoho Books is the best accounting software for small businesses because it has a wide range of financial tools and automates bank feeds, categorization, invoices, and more.
Plus, it works with over 40 other apps, so it’s easy to integrate into your current workflow. Setup is simple and quick with Zoho Books, and you don’t need any accounting experience. However, it only supports payroll for companies based in India, so if you require payroll solutions, you’ll have to go elsewhere for your accounting software needs.
- Details on tax audits and compliance procedures
- Sales Arrangements
- Cost-benefit analysis
- Examine your bank statements for discrepancies
- Client-facing interface for two-way communication
- Complete strategies and updates on the development
- Computer submittable tax returns
- Printable, fillable, and sendable forms
Free Package: $0.00 per month per company. A single person can handle as many as one thousand invoices.
Basic: A maximum of three users, five automated processes, and 50 contacts are included in the basic plan, which costs $15 per month per business.
Standard: Maximum of 5 users, 500 connections, and 10 automatic workflows/modules are covered by the standard $40 monthly fee per organization.
Premium: Up to 10 users, 500+ connections, and 10 automated workflows/modules are included in the $60/month professional plan.
After carefully considering different systems, we settled on the best bookkeeping software for small business. The top five were selected carefully considering their accounting-related features, functionality, user-friendliness (especially for those without accounting backgrounds), and cost.
Each of our top recommendations may be used by those with little to no accounting knowledge, are reasonably priced, can be tailored to individual needs, and can exchange data with other programs and apps over the cloud.