Accounting software tools have transformed the ways of bookkeeping, accounting, and invoicing. Thanks to cloud technology, businesses all over the world are now able to access and manage their data on the go, automate simple tasks, and issue invoices in seconds.
There has never been a better time for accounting technology.
Before we delve deeper into the best software tools out there, let’s take a look at some of the benefits of switching to accounting software.
Why Use Accounting Software?
Are you still struggling to grasp why accounting software is a great solution for your small business? That’s not uncommon. Many have had their doubts when these tools started to emerge. However, they have quickly realized how efficient they are and how they can transform the way we do business.
Some of the most important benefits of using an accounting software:
- Automating tasks. Accounting software tools allow you to automate simple tasks such as record-keeping and speeds it up;
- Reduced errors. Even a small error can cost you a lot in the end. Computer programs can process data much faster than humans while eliminating errors that we often make in calculations.
- Reduced Cost. Accounting software is incomparably cheaper than hiring a full-time or part-time accountant. This means reduced payroll costs. Also, the accuracy of the software tool helps you avoid some costly errors.
- No paperwork. Send invoices online, scan, and receive documents using your smartphone. All the dull paperwork is eliminated.
- Transparency. Accounting software allows you to stay up to date with your finances at all times and thus improves your financial performance.
The right software can make all the difference and save you loads of time. But research takes time and can be very confusing given the fact that there are so many similar software solutions available on the market.
To help you choose the right tool for you, we’ve conducted the research ourselves and narrowed down the choice to these 5 best small business accounting software.
FreshBooks accounting software is great for small businesses that want to track their time and expenses and know exactly how well they’re performing.
The software provides you with simple financial reports so that valuable information is always right there in front of you. No time-wasting and stressing over tracking your expenses manually.
According to the reviews, there are many satisfied FreshBooks users. One of the great things about this accounting software is the fact you can try it out for free.
You can also choose between one of the four plans depending on your accounting needs. Their pricing plans range from $15 (for the self-employed) to $50 (for growing businesses). If your business has reached the stage where you need custom service, FreshBooks also features a custom pricing plan in which you get a personal account manager.
When it comes to small business accounting software, Xero is leading the market. This software tool is based on cloud technology which means that you can access your data whenever and wherever you want. You or your team members can manage daily tasks and track your progress on the go. The flexibility Xero provides makes it one of the best accounting software options out there.
Xero simplifies invoicing and enables you to be updated once your customers open their invoices.
Additionally, small business owners love Xero for its security and reliability.
If you’re at a stage in your business in which you feel you need more help, you can hire a Xero accountant. They have partnered with an accounting firm to provide complete accounting service to growing businesses.
Xero pricing plans start at $9 a month (for early-stage businesses) but they also feature plans for growing businesses, depending on the stage your business is in. There’s a free trial option so you can try the software and see if you like it without spending any money.
Wave is a free accounting software that is great for startups struggling with a tight budget. It is a cloud-based solution that provides unlimited expense tracking and invoicing for free. You can manage basic inventory and generate reports as well.
However, you do have to pay for payroll integration or professional bookkeeping. If you want payroll integration, Wave charges $35 per month plus $6 per every employee and $4 per every independent contractor.
But if you don’t need these advanced features such as payment processing, Wave is a top-notch solution for small businesses.
The popularity of Wave keeps growing and has surpassed 3 million users already, largely due to the pricing. The web-based solution is easy to use and given that it is a free software, it’s quite efficient.
QuickBooks is one of the most popular accounting software on the market and for a good reason. It’s praised for its comprehensive features including expense tracking, mileage tracking, generating reports, organizing receipts, managing bills, tax deductions, etc.
The pricing plans start at $25 per month (designed for small teams) while the most expensive package is $150/month. The advanced plan includes features such as business analytics and a dedicated account manager so it’s perfect for thriving businesses with bigger teams. You can try the software for free for 30 days and decide whether you like it enough to buy it. If you want to know what others have to say about the software, take a look at QuickBooks reviews.
Zoho Books is an online accounting software perfect for really small businesses, therefore, it has fewer features when compared to other software tools. It enables you to send invoices and payment reminders as well as track your expenses. You can use it for bookkeeping, inventory, etc.
It caters to small businesses with simple accounting needs. However, you can easily integrate more of its apps once your business starts growing.
Their pricing plans are also simple and include the basic ($9/ month), standard ($19/month), and professional ($29/month) packages.
Zoho Books accounting software enables small business owners to manage their business on the go.
The overall ratings of the Zoho Books software tool are solid.