Latest News
Useful Tips for Startup Business AccountingThe Top 10 Accounting Software for Small Businesses in 2023
The Top 10 Accounting Software for Small Businesses in 2023
Share
Would you prefer to listen to this article?
Accounting software is required to manage well the financial state of your business. The application that you choose has to correspond with the size and type of your business. With a range of prices to fit any budget, there are more accounting software choices than ever. So, don’t postpone finding the right product!
There are a lot of choices for small business accounting software.
That is great, but it can be confusing. To minimize the confusion and better understand what you’re looking for, you need to decide what features you you actually need.
The top ten apps we’ve selected for you vary from basic accounting software made for solopreneurs to feature-reach apps that can grow as your business grows.
Before choosing the top ten, we researched over 20 programs and applications. The features and functions designed for small business owners were the reason we chose these.
“Before choosing the top ten, we researched over 20 programs and applications. The features and functions designed for small business owners were the reason we chose these.”
Here are our recommendations:
Best Overall: FreshBooks
Second Place, Best Overall: Intuit QuickBooks
Perfect for Multiple Users: Sage Business Cloud Accounting
Experienced accountants will find this the best option: AccountEdge Pro
Best Value: Wave Accounting
Most Beneficial Additional Features: Xero
E-commerce Businesses Will Find This To Be The Best Option: GoDaddy
Best for Business Automation: Zoho Books
Now, let’s dive deeper into each of those accounting tools.
FreshBooks:
FreshBooks’ (both desktop and mobile) interface is very easy to use and offers you a range of invoicing, time/expense tracking. Also, it includes simple project management and general accounting apps.
Zoho Books:
Zoho Books is a very inexpensive entry-level accounting app. It has features that can automate various workflows in your company and will track expenses. There is also a client portal where you can share estimates and invoices with your customers.
QuckBooks Desktop:
QuickBooks Desktop is one of the favorite (and oldest) accounting applications for small business owners. There are many good reasons for its long-lasting popularity.
AccountEdge Pro:
AccountEdge Pro has all the accounting functionality and features that a growing company needs. It combines the accuracy of a desktop application with the flexibility of a mobile application for those who need flexible access.
Sage 50cloud Accounting:
Sage 50cloud is an excellent accounting platform. It has features like sales tracking, reporting, invoicing and payment processing, vendor management, customer management and employee management. It has it all.
AccountingSuite:
AccountingSuite is an excellent accounting software application. It’s probably best suited for small businesses that look for efficient inventory management capability.
OneUp:
OneUp is an affordable application that’s feature-reach: accounting, invoicing, CRM, and inventory management. It essentially does the work of several applications, all wrapped up in one convenient package.
Xero:
Xero is an online accounting solution that includes apps for invoicing, expense management, inventory management, project management, and bill payment. It also has a mobile app and supports unlimited users.
Sage Business Cloud Accounting:
Sage Business Cloud Accounting is a good fit for solopreneurs and freelancers. It uses double-entry accounting, and it includes tools to track sales, expenses, contacts, banking, and reporting.
QuickBooks Online:
QuickBooks Online is the browser-based version of the popular QuickBooks desktop accounting application. With extensive reporting features, multi-user plans, and an easy-to-use interface, QuickBooks Online has everything most companies need.
Kashoo:
Kashoo is (mainly) a small business accounting application that will help you organize invoices, banking and credit accounts into one inbox. This will allow a quick, one-click invoicing and bill payment.
GnuCash:
GnuCash is an open-source accounting software that also can manage personal finances. Some of its components include double entry accounting, a checkbook-style register and tools for account reconciliation.
ZipBooks:
If you’re a small business owner and you need an easy-to-use (and free!) accounting software application, you need to check out ZipBooks. It’s an online application that has a free plan.
Wave Accounting:
Wave will help small businesses and solopreneurs manage double-entry accounting. It has a simple UI and applications for payroll and online payments. And it offers 2 months of free chat support.
What are the different accounting software?
We list the three most popular types of accounting software applications below.
- Commercial accounting software: Commercial software comes in a few different forms. These can include simple applications with only basic features to full-service software that offer extensive features. There are also multiple add-on modules and extensive customization. Commercial software can either be a downloadable application or a subscription-based SaaS (Software as a Service).
- ERP (Enterprise resource planning) software: The large companies typically use this. ERP software is infamously expensive. Unless you’re an enormous company, it’s probably much more than you actually need.
- Custom made accounting apps: They used to be popular many years ago. Now they virtually disappeared because of components now found in “regular” accounting software. Besides, custom software can be hard to maintain and difficult to integrate with other software.
The key functionality of accounting software
Accounting applications should offer most of these features:
The key accounting features:
- Double-entry accounting
- Invoicing (so called A/R)
- Bill payments (so called A/P)
- Customer and vendor management
- Banking features
- Budgeting features
- Creating management reports
Additional modules that you might need:
- Inventory management
- Purchasing orders
- Payroll module
- Point-of-sale functionality
Although you may not get every feature in every product, the modules you do receive should be sufficient for running your business.
What you should consider when buying accounting apps and software
What features are essential for your business?
Is effortless invoice generation important to you? Then you would need an app that allows generating an invoice easily. Do you offer a multiple products to your clients? Then you need to control your inventory accurately. How about banking? You sometimes cannot track your expenses when using a credit card? If that’s the case, then you want an app that will allow importing banking transactions and will record them to the correct expense account.
If you have employees, you need to pay them and to make sure that you took care of your tax obligations. Most accounting software does many of these things, you still need to decide what features are a must-have, and choose accordingly.
What is your budget?
While it’s important to buy the accounting software that fits your business needs, you also need to consider your budget. If you’re a very small business or freelancer on a tight budget, you might consider more affordable options. The good news is, some accounting software is available today for are under $25/month.
What is your business niche?
You type of business might play a significant role in choosing the right tools. Do you sell products and services? Do you sell them online or have a physical location? You need to make sure that the software you buy is suited to your needs.
How much support do you need?
Many people don’t really think about support when they compare accounting applications. But we suggest you spend a few minutes and look at the available support options. Because nothing is more frustrating than figuring out how to solve a problem without a solid customer support. Knowledge bases (and FAQs) can be helpful, but they can’t substitute the actual human professional.
Would you prefer to listen to this article?
You Might also Like
