By StepUpwards Team, 18th July 2022
Do you know that many small businesses fail not because they lack funds to continue operating but because they fail to keep track of their cash flow and day-to-day operations? Yes! Most likely due to the owner's perception that the firm is small and will be simple to manage without keeping records. Sometimes due to the additional expense involved in hiring an accountant. However, the good news is that you can now easily use accounting software to help you keep track of your company's data.
Yes! Read on to find recommendations for the top small business accounting software. This will also enlighten you on the features and benefits of using these accounting software for your business.
Accounting software is a program that records and reports on a company's financial transactions. Accounting software is either cloud-based (the ability to store data online) or desktop-based. However, a cloud-based accounting system is the perfect accounting software for small businesses.
After extensive research and comparison, we chose the listed 5 of the best accounting software suitable for small businesses among those available:
Zoho Books is accounting software that has been in existence since 1996. Zoho Books is a commendable small business accounting software with a clean user interface, reasonable pricing, and a robust set of tools. Larger businesses now use the software as well.
It manages finances for businesses of all sizes, particularly small businesses. Accounts payable and receivable, timesheets, payroll, transaction management, record keeping, and banking are all automated by the software.
Furthermore, Zoho Books manages customer and supplier interactions via a client portal where customers can securely store payment information for recurring transactions. The most pleasing fact is that Zoho Books can be used by any size business, including freelancers, who require assistance with end-to-end accounting.
Freshbooks was built in 2003 in Toronto. It began as simply invoicing software. FreshBooks provides a well-rounded and user-friendly double-entry accounting experience with the toolkits that a small business requires. Its excellent user experience and clever feature mix make it the best pick for business owners and freelancers.
There are numerous third-party app integrations readily accessible, including Gusto, G Suite, and others. FreshBooks' invoices can be visually captivating and designed for a professional look and feel, which is a unique feature. FreshBooks is an excellent tool for project budgeting, sending projections or proposals, and collecting payments from customers.
QuickBooks Online is another ideal all-around accounting software for small businesses out of the ones we looked at. Not only do the vast majority of small business professional accountants use QuickBooks Online, but there are also a plethora of online training resources and discussion groups where you can get help if you need it.
All accounting features are accessible from a single main dashboard, making recordkeeping more fluid and effective.
It includes features such as inventory control, timesheets, additional users, and cash flow.
Higher subscription plans provide more inventory and customization options for small businesses that sell products. The Advanced subscription is an option that provides comprehensive financial reporting powered by Fathom. Fathom is a high-end online financial report analytical technique that is used by many large corporations around the world.
Xero is another option for micro-businesses searching for very simple accounting software. Xero was founded in New Zealand in 2006, and it now has more than 3 million users worldwide. Accounting software like this is widely used in New Zealand, Australia, and the United Kingdom.
A limited plan may be appropriate for a micro-business with a few high-ticket transactions per month, such as an advisory or small service provider. Higher plans include an unlimited number of invoices and bills. They include extra features such as multi-currency, expense tracking, and project costing. Hubdoc, a bill and invoice capture solution, is included in all plans.
Wave is an excellent accounting software for a service-based small business that uses simple invoices but does not require payroll processing. Wave was established in 2010 and is headquartered in Toronto.
H&R Block purchased the company, which employs over 250 people, in 2019. Wave's free features will meet the accounting needs of many freelancers or service-based businesses, and it is the best free software in our review.
This free software includes all of the essential accounting features that most small businesses require, such as revenue and expenditure tracking, financial reporting, invoicing, and receipt scanning. These features are available both online and through the mobile app. Payment processing and payroll are regarded as premium services that must be paid for separately, but all bookkeeping, invoicing, and reporting functions are provided free of charge.
No matter how small your business should be, one of the first business applications you should get is accounting software. The best accounting software for businesses enables you to manage all facets of financial record keeping. The software makes it easier to keep track of all expenses and assess profits. It also allows you to track losses, and create a more comprehensive picture of your financial situation.