7 Accounting Softwares for Small Businesses

Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance. Accounting Softwares are used by individuals and business owners to enter income and expenses and track their finances. It’s more efficient and makes fewer mistakes than manual processing. It functions as an accounting information system. Finding the right accounting software for your business can be a tough decision. Money management is a big part of running a business, and the right accounting software can help support your company. A quality program can save you time and money.

Here are some of the features that the most popular accounting applications have in common:

  1. Basic Accounting Tasks – Businesses can efficiently work with these applications over their basic functions such as invoicing, income tracking, generating reports, and vendor and client management.
  2. Tax Preparation and Filing – Most of the accounting softwares have tax preparation features, such as automatic tax calculations, tax reporting, and multiple tax reports. It helps in preparing and filing taxes on time.
  3. Payroll Processing – This feature helps businesses in entering the timesheets, estimate pay, print checks, and pay the hired employees.
  4. Automation – Automation helps a user save a lot of time. He does not have to work upon tasks like billing, recurring payments, etc. manually.
  5. Quotes and Estimate Creation – Small businesses can make use of in-built, pre-defined templates of professional quotes and estimates in these applications.
  6. Remote Accessibility – The cloud-based accounting softwares or applications are remotely accessible, but the desktop versions are not. If a user wants the desktop versions of the software to be remotely accessible, he can make use of cloud hosting services.
  7. Third-party Add-ons Integration – Most of the accounting software offers integration with third-party add-ons, like POS systems, ERP and Google Apps, etc.

Quickbooks

Accounting Softwares

QuickBooks is an accounting software developed and marketed by Intuit. Its latest cloud-based, but it also offers separate desktop options you can purchase and download. Its products are typically geared toward small and medium-sized businesses, and over seven million businesses use this software. From small businesses to self-employed individuals, QuickBooks offers an array of excellent accounting solutions to match your needs.

Accounting Softwares

FeaturesFinancial institution integration as well as integration with PayPal, Square, Shopify, and more
Help to file quarterly and annual tax returns with user guides and export tax data Sales tax calculations, returns, and recorded tax payments
Automatically sort transactions and expenses into tax categories
Track expenses in one place
Scan receipts and attach them to invoices
Share with your accountant or export documents
Create customized reports with cashflow tracking visible on your dashboard
Track miles with your smartphone’s GPS
ProsEasy to use and learn
Integrates well with other systems and flexible with 3rd party applications
Provides good accounting reports
Affordable price
Easy to access from any device – phone, tablet, and computer (depending on the version)
Easy to find and fix errors/mistakes
Easy to look-up customer information
ConsInstability/system crashes
Lack of direct professional support
File-size issues/limitations on the number of transactions
Limitations on the number of users
Built with a “small business mindset”Data is not always backed-up so you risk losing information
Lacks invoice design tools
Free Trial/ Plan30-day free trial
Paid Plan Starts from$26.95

Xero

Accounting Softwares

Xero is the best accounting software for micro-businesses that are looking for very simple accounting software. This software has a clean interface and also fully integrates with a third-party payroll service. Businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless. Xero is Developed to provide the best user experience possible, the solution is easy to use, making tough accounting tasks like double bookkeeping simple even for first-time users. This accounting software is popular in New Zealand, Australia, and the United Kingdom. Xero has over 3,000 employees and is growing rapidly in the U.S., as well. For those who require a bookkeeper, the vendor offers certified advisors who are more than willing to assist them.

Accounting Softwares

FeaturesPay bills.
Claim expenses.
Bank connections.
Accept payments.
Track projects.
Payroll with Gusto.
Bank reconciliation.
ProsCloud-based
Mobile app
Payroll integration with Gusto
Third-party app marketplace
Simple inventory management
ConsLimited reporting
Fees charged for ACH payments
Limited customer service
Free Trial/ PlanAvailable
Paid Plan Starts from$5.50

Freshbooks

Accounting Softwares

FreshBooks Accounting ensures that your business decisions are based on actual business data and insights. Set aside enough for tax time, learn the costs of running your business, find out if you have money to hire and confidently forecast your earnings. FreshBooks has long been the best small business accounting system and the freelancing space. With FreshBooks, you can manage all the financial operations from a single dashboard.

freshbboks

FeaturesEasily-customizable invoices
Send payment reminders to clients through the app
Automatically add late fees to your invoices as appropriate
Enable clients to pay via credit card by clicking a link in the invoice
Set up recurring invoices to save you time with your regular clients
Expense tracking with receipt attachments. Use your smartphone camera to instantly make a record of any expense receipts.
ProsEvery plan offers time tracking and expense tracking features
Plans start at $15/month, which is a great price for the features you will gain access to
It’s easy to customize invoices, estimates, and other documents as you need to.
ConsYou can only store details for five clients on the most basic plan
There are no inventory tracking features at any level. However, there is some compatibility with third-party apps.
Free Trial/ Plan30 days free trial
Paid Plan Starts from$4.50

Wave

Accounting Softwares

Wave is an ideal accounting softwares platform for a service-based small business that sends simple invoices and doesn’t need to track inventory or run payroll. For many freelancers or service-based businesses, Wave’s free features will cover all of their accounting needs and is the best free software in our review. At year-end, accountants can pull the necessary reports from Wave to prepare a business

Accounting Softwares

FeaturesBilling and Invoicing
Real double entry accounting
Investment tracking
Financial reporting (Ledger, A/R, A/P, Income, Balance Sheet
Accept all major credit cards
Credit Card payment processing in America and Canada
Bank integrations to eliminate manual entry
ProsFree accounting, invoicing, and receipt-scanning software
Affordable payroll add-on
Multi-business management
ConsNo built-in inventory tracking
Fewer third-party app integrations than competitors
One plan only
Free Trial/ PlanAvailable
Paid Plan Starts fromCompletely Free

ProfitBooks

Accounting Softwares

ProfitBooks is a simple and fastest business accounting softwares for small businesses. It lets you create beautiful invoices, track expenses and manage inventory without any accounting background. ProfitBooks is a powerful inventory management software designed for trading businesses. It includes simple & easy tools to create sales orders, record purchases and track inventory. You can get actionable inventory reports that can help you cut losses and maintain appropriate stock levels.

Accounting Softwares

FeaturesSales Order Management
Tasks & Projects
Document Management with Dropbox integration
Instant one-click support and much more.
ProfitBooks is Highly Secure. 
Always available and Trusted by thousands!
ProsDashboards are designed in a clear manner
Multi-level security to protect all your data and details offers easy
cash flow within your firm
multi-currency support
mobile app support.
ConsThe period needs to be inserted every time you open a ledger
It is recommended to have an APP of the same to add to the current functionality.
Free Trial/ PlanAvailable
Paid Plan Starts from$15

Sage Business

Accounting Softwares

Sage is one of the best-known accounting solutions. It is popular with sole traders, small businesses, and accountants. Sage Business Cloud Accounting software lets you create invoices, track customer billing and amounts owed, and more. It syncs with your bank account and provides real-time financial data. You can use Sage to manage your business’s cash flow, sales, and taxes. It also makes reporting much smoother and more streamlined. It is a multi-function solution that satisfies a number of needs for businesses of all sizes..

Accounting Softwares

FeaturesCreate and send invoices.
Manage stock. 
Stay on top of your stock levels and get everything you need to manage inventory, all in one place.
Snap and capture receipts with AutoEntry. 
No more manual data entry of invoices, receipts, bills or statements.
ProsCloud-based so no downloads or installation required.
Provides a very in-depth reporting function.
Provides a very strong inventory reporting function.
Offers multiple customisation opportunities 
ConsVery difficult and time-consuming to set up.
Users that are not accountants tend to have a hard time navigating the system.
The homepage can become cluttered, making the system seem imposing, if not customised.
Free Trial/ PlanAvailable
Paid Plan Starts from$3.00

AccountEdge Pro

Accounting Softwares

AccountEdge Pro is powerful, easy to use, small business accounting software for the Mac and Windows desktop. With AccountEdge Pro, business owners can organize, process, and report on their financial information so they can focus on their business. Its feature set is built to allow users to handle every aspect of their business including accounting, integrated payroll, sales and purchases, contact management, inventory tracking, online orders, time billing, and more.

Accounting Softwares

FeaturesSave Custom Notes on Sales and Purchases.
The Notes that you add to Sales and Purchases can now be saved for future use, and optionally printed on your forms.
Get Paid Online. 
Serialized Inventory. 
Shopify Integration. 
Document Management. 
Track your mileage. 
Progress billing.
ProsPerforms all required tasks Automatically. 
Its is available in 2 operating system both mac and windows
Transactions are processed quickly and very efficient in producing reports
Monthly Reports especially tax and commission reports are valuable
ConsLacks mobile integration
It is sometimes requiring too many keystrokes to enter a transaction.
Changes/corrections are a challenge.
Free Trial/ PlanAvailable
Paid Plan Starts from$499

Wrapping-Up

Managing your own accounts makes sense when your business is relatively small and easy to manage. Not only does it ensure that you are kept fully informed about your business’s fortunes and know what your financial health is at all times, but it also saves you money as you won’t have to hire a professional to handle everything for you. The right invoicing and billing software makes it much, much easier to track positive cash flow, bill clients exactly what you’re worth, and go home happy at the end of the day. QuickBooks is our best overall pick and our one of the best easy-to-use accounting softwares. If you want double entry accounting then Xero is the best option to be opted. Research your options, test what works for you, and you will find the right fit for your company. Take advantage of the free trials and demos out there.

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