Best Accounting Software for Small Businesses of September 2022

bookkeeping software for small business

If you have less than $50,000 per year in revenue, you can sign up for the Zoho Books Free plan. It comes with one user or accountant, and lets you manage clients and invoices, create recurring invoices, import bank and credit card statements, and track expenses and mileage. Intuit has an option called QuickBooks Live that adds bookkeeping support to QuickBooks Online Plus. You communicate with a dedicated bookkeeper through one-way video chat (they can’t see you) or email. This individual and their team work with you on customizing your setup and monitoring your transactions so they’re accurately entered and categorized for tax purposes. They reconcile your accounts and close your books at month’s end to prevent errors.

Want to learn a little more about bookkeeping and accounting before you dive into our top reviews? If you can’t figure out how to use your software, the amount of bookkeeping features it has doesn’t matter. Before you commit to a plan, sign up for a demo or a free trial to get the hang of the software and find out if the interface simplifies your financial life or complicates it. After creating your account, everything is set up so you can get started. Your data is always available, and backed up for extra peace of mind. Paid tiers include most of the features you’ll ever need, including advanced ones such as smart tagging, with advanced reporting and intelligence. The most popular package is Standard, which comes with up to 500 contacts, 3 users and 10 automated workflows.

Best for Service-Based Businesses

There are many different types of accounting software available for small businesses, with varying capabilities and price tags. Generally, the type of industry and number of employees are two factors that can help a small business owner begin to choose the accounting software that is appropriate. For example, a freelancer would not need the same features in accounting software as a restaurant owner. “The significant advantage of Wave is its free accounting, invoicing, and receipt scanning services,” says Mark Stewart, in-house CPA for Step By Step Business, a small business education platform.

It covers virtually every accounting process your business has to stay on top of — including productivity, advanced inventory, and reporting. If you’re solely in the market for a small business accounting software, this one might not be up your alley. But if you’re looking for a one-stop, comprehensive solution for virtually all your business needs — accounting included — this could be the platform for you. If you’re a small- to medium-sized business that needs help streamlining payroll and entering payment data, you might consider investing in OnPay.

Free support

“This program supports freelancers’ accounting needs.” Stewart also notes that with Wave you can run multiple businesses on one account. One of the most common struggles small business owners have is with bookkeeping.

  • An accounting automation software, it stands out with its focus on security and efficiency.
  • Finally, Xero’s Executive Summary report offers more flexibility in terms of date ranges, comparative periods and commentary text ability.
  • Zoho Books – Zoho is an easy-to-use option that helps you manage your cash flow and finances and even accept payments online and create balance sheets.
  • Android and iOS apps for the sites give you access to your finances from your mobile devices.
  • Accounting software can help cut down on these costly blunders by eliminating clunky spreadsheet inputs and pulling data directly from third-party business apps.

QuickBooks Online is NerdWallet’s pick for overall accounting software, but that doesn’t mean it’s the right fit for every business. Wave might be sufficient for very small businesses, and people who already use Zoho business apps might find that Zoho Books is the most convenient option. It depends on which features matter most to you, and which user interfaces are easiest for you to navigate. Zoho is perhaps best-known for its customer relationship management, or CRM, and productivity apps, which integrate well with its accounting software.

Know where your money is going

FreshBooks lets you easily craft invoices, accept payments through invoices, track expenses and send automatic reminders. Additionally, Quickbooks offers a payment device that enables small businesses to accept card payments on the go. Quickbooks also integrates with DocuSign to enable business owners to sign estimates digitally. Whether you are the DIY type or prefer more hands-on help, QuickBooks delivers. bookkeeping for small business With its Live Bookkeeping service, you can get help from a bookkeeper who will set up your software, categorize transactions, reconcile your accounts and close your books monthly and yearly. Even better, you don’t get charged for services you don’t need; the pricing for Live Bookkeeping depends on your needs. Bench gives you a dedicated bookkeeper supported by a team of knowledgeable small business experts.

Information including email address, name, purchase history, and more can be used to build targeted marketing campaigns . QuickBooks also gives some users the ability to access a synced spreadsheet tool for Microsoft Excel. Spreadsheet Sync cuts down on potential errors from manual data entry and CSV imports.

FreshBooks is the best software for invoicing

To help you find the best accounting software for your business, we examined more than 100 applications. We looked for affordable, easy-to-use accounting programs with time-saving features, such as automated bank feeds, automatic payment reminders, and online invoicing and payment acceptance. We also searched for software with comprehensive, customizable, real-time financial reporting, because that is crucial for monitoring and understanding your business finances. Lite – $15 per month for basic features such as invoicing up to 5 clients, tracking unlimited expenses, and accepting credit card payments and bank transfers. Finding the best online accounting software for your small business can seriously transform your working life. With less time spent on data entry, you have more time for the things you like most about small-business ownership, whether that’s getting to know customers or making products you’re proud of.

Here are NerdWallet’s picks for the best accounting software for small businesses. Kathy Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online. When she’s not trying out the latest tech or travel blogging with her family, you can find her curling up with a good novel. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.

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