As a small business owner, you need to stay on top of finances and related paperwork. But as your business grows, you may find it difficult to manage all your financial reports. Small business owners everywhere face the same challenge. That’s why most of them rely on accounting software to make their life easier.
What is Accounting Software?
Small business accounting software is a powerful tool that enables business owners to have complete control over their finances. Because such tools are equipped with all the necessary accounting features, they help businesses manage everything without having to hire resources.
Why You Should Invest in Small Business Accounting Software
From a business owner’s perspective, it makes a lot of sense to invest in accounting software. Here are five reasons why you should consider these tools.Reduce human errors: When it comes to finances, businesses cannot afford mistakes. But that’s a possibility when a business’s finances are being managed by overworked accountants. Accounting software tools reduce the occurrences of human errors and ensure the data is always accurate.More insight and reporting: Most advanced accounting tools offer advanced reporting to help businesses gain more insight into their finances. These easily downloadable reports can be used to make changes and shift focus on areas where businesses can make a profit.Easier collaboration: Most accounting software tools are hosted on the cloud, which makes them accessible for businesses of all sizes. It’s also easier for multiple users to work on the same dashboard at the same time.Save time: Another benefit of using software tools for accounting is the number of times businesses are able to save. Typically, managing books, updating reports and completing the invoicing process takes up a lot of time. By choosing automation, businesses can save precious time.Easier invoicing: Most comprehensive accounting software provides templates for invoicing to improve operations. They also provide invoice sending features to streamline the invoicing process.
Best Small Business Accounting Software
While there are many free accounting software for small businesses, they cannot offer the range of features a growing small business accounting needs. Let’s now take a closer look at some of the best accounting software.
1. AccountEdge Pro
AccountEdge Pro is packed with features that are all aimed at making accounting easier for small businesses. This accounting solution is designed specifically for Mac and Windows desktop users. What’s unique about AccountEdge Pro is that it is available for a one-time fee that can save businesses a lot of money.
Here are some of its key features:Billing and invoicing softwareCustomizable invoicesBudgeting and forecastingDocument management
Pricing: Available for a one-time fee of $149.
2. QuickBooks Desktop Pro
Quickbooks Desktop Pro is an installed solution that allows businesses to make deposits, payments, run payroll, and send invoices. It features an advanced reporting tool. This desktop tool works especially well for businesses with an in-house bookkeeper.
Some of its key features include:Advanced processing powereCommerce integrationCustomized billing
Pricing: Annual subscription plan starts at $349.99 per year.
DocuPhase makes document management easier for small businesses. An accounting automation software, it stands out with its focus on security and efficiency. It is also a scalable solution that can meet the growing needs of small businesses.
Some of its key features include:ERP integrationOptical character recognitionAPI integrationExpense report processing
Pricing: Custom pricing.
PayEm is a spend management and procurement system. Designed to handle payment seamlessly, PayEm is built to automate processes from one platform. It lets businesses create approval flows for managing subscriptions and vendor payments. It is also integrated with ERPs, which makes it easier to sync data.
Here are some of its key features:Native mobile appFund transfersExtensive security optionsDigital receipt managementReal-time reporting
Pricing: Custom pricing.
With Hubble, you get access to a robust, integrated platform combining features such as analytics, planning and reporting. This tool is more useful for businesses that are growing quickly and are using business management solutions such as Oracle E-business and JD Edwards. Thanks to a number of features, Hubble allows businesses to generate reports, accelerate month-end close, carry on continuous budgeting and more.
Here are some of its key features:Real-time reportingCRM integrationAccount reconciliationDashboard creationBudgeting and forecasting
Pricing: Custom pricing is available on request.
Best Online Accounting Software
In addition to desktop versions, there are also some online accounting tools designed for small business owners. Here are some of the best accounting software options for businesses looking for an online version.
6. Sage Business Cloud Accounting
Sage is cloud-based accounting software, designed specifically for small businesses. Sage was founded in 1981 and has been one of the best accounting software tools around. Thanks to its user-friendly interface, businesses without accounting expertise have been able to manage their finances with ease.
Here are some of its key features:Available on all devicesTax compliance toolsIntegrated with other apps such as Zync and AutoEntryInventory management
Pricing: Entry-level package starts at $10 a month. An advanced version with invoicing, management and cash flow features is priced at $25.
Xero stands out with its intuitive dashboard that makes inventory management easy. It’s immensely popular with small businesses and bookkeepers. Apart from its cloud version, Xero also has iPhone and Android versions.
Some of its keys features include:Two-step authentication for data securityUpdated financial reportsReal-time cash positionEasy collaboration
Pricing: Xero has three plans on offer. The basic plan starts at $12 a month. Other plans are priced at $34 and $65. All plans come with a 30-day free trial option.
8. Zoho Books
If you are looking for a simple solution to managing cash flow and finances, you should consider Zoho Books. This software allows you to automate your workflows across departments. Furthermore, it includes several other products such as customer relationship management (CRM), human resource management and inventory control. In terms of integrations, Zoho Books has nearly 40 app integrations.
Here are some of its key features:InvoicingAutomatic tax calculationsClient portalEnd-to-end accountingTax compliance and audit reports
Pricing: Zoho Books has four plans. These are Free, Basic (starting at $15 a month), Standard ($40 a month) and Professional (starting at $60 a month).
9. Quickbooks Online
Quickbooks Online is one of the best accounting software solutions for small businesses. About 7 million businesses use this accounting solution to keep everything organized and stay tax ready. Quickbooks Online is a preferred option for many small and medium businesses because of its simplicity. Easy to set up and plenty of features make it the perfect solution for businesses that do not have accounting experts.
Some of Quickbooks Online key features include:Integrated with third-party apps such as Square, Shopify and PayPalCustomized reportsAll expenses in one placeSales tax calculations and returns tracking
Pricing: There are four pricing tiers. These are Simple Start priced at $12.50 per month, Essentials priced at $25 per month, Plus priced at $40 per month and Advanced priced at $90 per month.
If you are looking for simple, standalone accounting software that can help you manage invoices and bills, you may consider Bill.com. Many businesses use this accounting app to convert bills into electronic records.
Here are some of its key features:Supports a variety of payment methodsMultiple approval levelsIntuitive user interface
Pricing: Bill.com has four plans. These are Essentials ($39 per month), Team ($49 per month), Corporate ($69 per month) and Enterprise (custom pricing).
Kashoo is designed for small businesses looking for simple accounting software. It is a straightforward tool with basic features needed to automate the accounting process. It uses machine learning to categorize expenses for credit card and bank transactions.
Here are some of its key features:Invoicing featureOCR and receipt-matching functionalitiesFree phone, email and chat supportiOS appIncome and expense management
Pricing: The subscription fee starts at $30 per month.
OnPay is for busy business owners looking for a solid payroll solution. It comes equipped with features that allow businesses to create detailed employee records and manage payroll smoothly every month. Easy to set up and manage, OnPay is a preferred software for business finances.
Here are some of its key features:Pre-tax deductionsAutomatic tax paymentReporting and dashboardsUnlimited payrolls
Pricing: Subscription starts at $36 per month.
Bookkeeping Software for Small Business
Managing finances also involves bookkeeping. Luckily, most accounting software tools include bookkeeping features. This helps businesses manage all business processes for finances on one platform.
Let’s take a look at some solutions for bookkeeping purposes.
13. Freshbooks accounting software
Freshbooks is a simple-to-use accounting and bookkeeping software solution. A cloud-based tool, the Freshbooks accounting software is accessible on iPad, iPhone and Android apps.
Some of its keys features include the following:Multi-currency supportTime trackingPayment remindersOnline credit card paymentsAutomatic tax calculationsRecurring invoices
Pricing: There are four plans available to businesses. These include Lite (starting at $4.50 per month), Plus (starting at $7.50 per month), Premium (starting at $15 per month), and Select (custom pricing).
Neat is popular with freelancers, contractors and small enterprise owners. That’s mainly because of its ease of use. It also has a mobile app that makes it more accessible to business owners.
Here are some of its key features:Transaction filtersAutomatic accounting reportsSecure payments
Pricing: Paid plans start at $17 per month. A more advanced plan costs $36 per month. Each plan offers users a 15-day free trial period.
Pabbly is a robust accounting and bookkeeping solution for small businesses. It can help business owners manage invoicing and payment processing seamlessly.
Some of its key features include:Invoice managementExpense trackingRecurring billing and subscriptions
Pricing: Pabbly offers four plans. These are Starter ($19 per month), Rookie ($37 per month), Pro ($57 per month) and Advanced ($79 per month).
Tipalti uses automation to streamline payment processing for small business owners. It provides its services in 190 countries and is a scalable solution.
Here are some of its key features:Automated workflowsPayment schedulingPayment integrationPayment trackingWire transfer
Pricing: The subscription plan starts at $149 per month.
How to Choose Accounting Software for a Small Business
With so many options to choose from, it can get a bit tricky to zero in on the best accounting software for your business. Let’s check out the features you should look for when selecting the accounting software programs.
Since you are purchasing software for managing your business finances, it is important the tool you select comes with all the accounting features your business needs. This may include expense tracking, multiple user support, tax calculations, time tracking and more.
Before you start looking for the right solution, consider how much you are willing to invest in an enterprise resource planning and accounting tool. A clear idea will help you eliminate some options and provide clarity on the solution you can purchase.
As your business grows so do your online bookkeeping and accounting needs. A solution with only basic tools may work today, but can it support your future needs when you look for advanced features?
Your accounting capabilities
A business with no accountant will benefit from choosing a solid tool that can help manage everything without complicating the process. On the other hand, if you have an accountant you will most likely be fine using basic software with the most essential features.
How much is basic accounting software?
While prices differ, basic accounting software can cost anywhere between $9-$16 per month.
What is the best accounting software for small businesses?
Zoho Books is the best small business accounting software for small businesses.
What is the simplest accounting software?
Quickbooks Online is the simplest accounting software.
What is the easiest bookkeeping software?
Freshbooks accounting software is the easiest bookkeeping software.
Image: DepositphotosMore in: Small Business Accounting
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