Some newbie entrepreneurs erroneously believe that accounting is crucial for large companies, but not for small businesses. This belief couldn’t be farther from the truth. So, here is the Best Accounting Software you should consider!

Accounting is essential for any business as it helps an entity keep track of its income and expenditures. It also ensures statutory compliance and generates financial information that management and investors can review before making significant business decisions.

That said, accounting can be more significant for small businesses and startups. Especially to those who are trying to make the most out of limited capital and lean resources. 

However, many entrepreneurs are hesitant to hire an accounting firm to do their books or employ an in-house accountant; after all, it will be an added item to their list of regular expenses. Fortunately, there are accounting software platforms that offer accounting solutions without causing an arm and a leg.

What to Look for in an Accounting Software

Before you look into the best accounting software available in the market; it’s crucial to assess your business needs to narrow down your options and pick the best choice for your venture. Here are some of the factors you should consider before signing on the dotted line. 

The Size of Your Business

Automation is one of the best things that online accounting services can do for you. Typically, you wouldn’t have to do repetitive data entry, such as customer records, vendor details, and even your employees’ files. When you opt to get an accounting service, all this data becomes part of the list that you can click whenever you need it in a new document.

Entering the same data for various transactions in your records might not seem much of a task. Especially if you’re a small business with few employees, suppliers, and customers. However, if your business is starting to get traction, and you’re on your way to becoming a bigger venture; the automation function of accounting software is invaluable. Not only will you save time, effort, and energy, but you can also avoid mistakes and errors in your books.

Report Generation

Daily accounting tasks mostly involve settling bills, creating and sending invoices, recording payments, and monitoring bank account, credit card, and online payment system activities. Integrating your financial statements to your accounting software can make all of these tasks easy to track since any activity and changes would reflect on your dashboard.

It would also be easier to generate financial reports whenever you need them. You can even customize your reports to reflect specific categories should you need to track particular income flows such as travel and meal allowances, office operations expenses, office supplies, and other expenses.

Alotted Budget

The best accounting software platforms offer services for a monthly subscription. The monthly fee depends upon the features and package type you choose. There are online platforms that provide accounting services for free as a complementary product for their other financial offerings, such as payroll services. 

Other platforms, on the other hand, offer premium products at premium costs. Whether the hefty price tag is worth it or not depends on how their solutions work for your business’ financial organization needs. Many services offer a month of a free trial. And that should give you enough time to decide whether the price of the subscription is worth the convenience you’re getting. 

Integration

If you’re already using other software in managing various aspects of your small business, take the time to check if these can be integrated with the accounting service you want to get. Seamless integration can save you a lot of time and effort and would allow you to make the most out of the accounting service.  

5 Best Accounting Software for Your Small Business

Wave

Wave describes itself as an “award-winning financial software designed for entrepreneurs.” Their accounting software can be connected with other Wave offerings such as payroll, payments, and invoicing. If you’re already using any of these Wave products, then choosing the same provider for your accounting software makes sense. 

The best thing about this software? It’s free. It doesn’t charge a single cent for its free software that has invoicing, accounting, and receipt scanning functions. Wave can offer its accounting services for free because it makes money out of its payroll services as well as online payment charges for processing credit cards and bank payments.

Quickbooks

Intuit Quickbooks is one of the most popular online accounting platforms for small businesses. Their cheapest service comes at $12 per month for one user. This package allows for basic functions such as tracking income and expenses, maximizing tax deductions, tracking mileage, creating invoices as well as accepting payments. It can also be used to send estimates, track sales as well as sales tax, capture and organize receipts, and manage up to 1099 contractors.

The most premium package will set you back $75 per month. It includes additional services such as bill management, time tracking, inventory tracking, custom user permissions, and project profitability tracking. It’s also the only Quickbooks package that offers custom user permissions, smart reporting, premium care with Priority circle, and two of their newest functions – accelerated invoicing and enhanced custom fields.

Zoho Books

Zoho Books allows users to manage their finances and automate business workflows. The platform features useful functions, including invoicing, estimates, client portal, receipt upload, bill tracking, banking, inventory, sales orders, and purchase orders.

Their most affordable package costs $9 per organization per month. This service allows for bank reconciliation, custom invoices, expense tracking, projects and timesheets, recurring transactions, and sales approval. 

The platform’s priciest package comes at $29 per organization per month. It includes additional features such as purchase orders, sales orders, inventory, custom domain, as well as integration with the cloud communications platform, Twilio.

FreshBooks

FreshBooks can be an excellent solution for your business if you create and send recurring invoices or run a business that runs on subscription. The platform promises professional-looking invoices that go with a straightforward and user-friendly interface. Invoicing, tracking time, organizing expenses, and client follow-ups can also be automated. Allowing users to save time and focus on other aspects of the business. FreshBooks can be integrated with more than 200 software entities, including platforms that offer services related to payroll, e-commerce, file storage, marketing, team communications, and many others.

Their lowest-priced package, $15 per month, is recommended for self-employed professionals. For small businesses, their Plus Package, costing $25 per month, allows for 50 billable clients. As well as functions including; customized invoices, unlimited expense entries, credit card online payments processing, automated bank import, time tracking, estimates, and insightful tax time reports. FreshBooks also offers custom pricing tailor-fit for thriving businesses that bill more than 500 clients. A customized package comes with a personal account manager and customized training for the entrepreneur and the whole team.

Workday

Workday Financial Management prides itself on being an “all in one system” that could be used for accounting, closing deals, and analyzing business and financial data. The platform offers accounting functionalities, business insight, and audit controls. For medium enterprises, Workday provides various products that aim to achieve sustainable growth. These products include business planning, financial management, human capital management, payroll, cloud platform, analytics, and Data-as-a-Service (DaaS).

Because the system integrates accounting with other business aspects such as planning and human resources; it can provide a clear and holistic view of a venture’s productivity and overall performance. Workday’s website doesn’t display its product pricing. They encourage prospects to contact their sales department to learn more about their rates and other service information.

Xero

Xero gives you a better way to work with your accountant. This cloud software allows you to easily connect your bank account, services like PayPal, and other CRM/Inventory services to give you a seamless experience. You can log in anywhere you’d like and have access to your business’ finances immediately. If you need a step up above Quickbooks, this is the solution for your business.