What is The Best Accounting Software For Small Business?

If you are running a small business and need to keep records of your payments and expenses then QuickBooks is the best accounting software with multiple features that fits your needs. Based on our research QuickBooks will save your time and money through its outstanding features.

With technology developing rapidly, the market is full of accounting software for small businesses. So, you have many choices.

But it doesn’t mean that all are exceptional and ideally suited for everyone. It’s therefore necessary to gather useful information about the software and compare them first.

The chaos of the pandemic and inflation in recent years and the aftermath hit micro firms and freelancers more than others.

But with things slowly going back to normal, the future looks optimistic. If you operate a small business, it’s essential to keep track of your finances.

Suitable accounting software is the one thing that will help you to make and maintain your financial plans and keep a good grip on them. 

But with so many tools out there, how can you pick the right one?

The good news, is you don’t have to worry about that because we found and collected details of some popular accounting software for small businesses. Continue reading to know more.

How Do I Choose An Accounting Software?

As mentioned above, there are many tools available but not all are great. There are several that are worth checking out.

But how do you select the right accounting software for a small business? 

Here are some aspects to consider when looking for accounting software for small businesses. 

01. Features

You need to examine the features of accounting software before spending money. Consider whether it’s flexible and can integrate with other business tools.

You must also check if it’s compatible with your bank (s). Your data is important so it should provide data-safety feature. 

Besides the above aspects, check whether the software has all the necessary features required in accounting.

02. Cost

The accounting software comes at different prices. So, compare costs and choose the one that’s within your budget. 

03. Benefits

You must also consider what benefits any accounting software offers for your business.

04. Easy To Use

Not everyone is tech-savvy and some tools are complicated. Select one that has user-friendly features.

05. Customer Support

You may need help with the software and for that, the customer support has to be great. They should respond fast and solve your issues quickly.

What Software Do Small Accounting Firms Use?

There are several options when it’s about software for small accounting firms. Here are some of the top software that small accounting firms use today.

• QuickBooks
• Xero
• Sage 50
• FreshBooks
• NetSuite ERP
• Zoho Books
• Bench
• Accounting Seed
• ZipBooks
• ART
• ZarMoney
• BQE CORE Suite
• Wave Accounting
• BigTime
• SuraLink
• Patriot Accounting
• Odoo
• SaasAnt Transactions

7 Best Accounting Software For Small Business

With so many tools being available, it can be difficult to choose the right one. But if you have a little help then it won’t be so challenging.

We don’t want you to stress too much so without further ado, here are the 7 best accounting software for small business.

01. QuickBooks

QuickBooks is the most sought-after accounting software for small businesses.

It’s because this tool has multiple features that allow you to complete accounting-related tasks in a short time and with ease.

Key Features

• Cloud Accounting 
• Invoicing
• Multiple Users
• Accounting Reports 
• Cash Flow Management
• Online Banking
• Time Tracking
• Free Unlimited Support 

Target User/Customer

QuickBooks has all the features required for accounting tasks.

However, it’s slightly expensive and so is suitable for small to medium and growing businesses that have a steady and fast income.

Pricing

QuickBooks offers three plans for three months or a yearly subscription. The usual cost per month is

• $18 – Simple Start
• $27 – Essentials
• $ 38 – Plus

02. Xero

Xero is also a popular accounting software with many features and is a one-stop accounting solution. You can conduct various accounting tasks smoothly and save time.

Key Features

• Accounting Dashboard 
• Reporting 
• Invoicing 
• Bank Reconciliation 
• Analytics 
• Track Projects 

Target User/Customer

Xero is great for micro-enterprises that require several people to handle accounting tasks.

Pricing

Xero offers three plans for three months and above. The usual cost of these plans per month is 

• $15 – Early
• $42 – Growing
• $78 – Established

03. FreshBooks

FreshBooks is the next accounting software on the list. It’s a tool with many features and is the easiest to use. So, it’s ideal for beginners as well as expert users.

Key Features

• Accounting and Reports
• Invoicing 
• Expenses 
• Estimates and Proposals 
• Time Tracking
• Projects 

Target User/Customer

FreshBooks is easy to navigate so it’s suitable for startups as well as small and medium growing businesses. 

Pricing

FreshBooks offers three plans in four months or a yearly subscription. Typically, the monthly fees are.

• $19 – Lite
• $33 – Plus
• $60 – Premium

04. Sage 50 Accounting

Sage 50 is another popular accounting software which works great for small businesses.

It also has many great features and allows you to conduct multiple accounting tasks on day-to-day basis.

Key Features

• Cash Flow and Billing 
• Expenses and Funding 
• Advanced Inventory Management 
• Job and Project Estimate 
• Reporting 

Target User/Customer

Sage 50 works great for businesses that need features for advanced accounting and tracking inventory. It may be a little expensive for startups and solo entrepreneurs.

Pricing

Sage 50 offers three plans for monthly or yearly subscriptions. The usual costs per month are 

• $58 – Pro
• $96.58 – Premium
• $160 – Quantum

05. Zoho Books

Zoho Books is cost-effective. It’s best for use with other Zoho applications.

It has many features and is right for small to medium and growing businesses. However, it can be a bit complicated for startups.

Key Features

• Invoicing
• Expenses
• Banking
• Projects
• Inventory
• Audit Trail
• Online Payments

Target User/Customer

It’s ideal for larger small, medium, growing and established enterprises. 

Pricing

Zoho has six plans in total including a free version. The cost per month for each plan is

• $0 – Free
• $15 – Standard
• $ 40 – Professional
• $ 60 – Premium
• $ 120 – Elite
• $ 240 – Ultimate

06. Patriot

Patriot accounting software is simple but with all the essential features that a small business accounting department need.

Patriot also has a Payroll application and the accounting software can integrate with it.

So, you can perform all tasks related to finances with ease. Here are some main features of Patriot. 

Key Features

• Accounting
• Invoicing
• Bank Connections and Reconciliation
• Multiple Users
• Recording Payments
• Tracking Expenses and Income

Target User/Customer

Patriot is ideal for small startups and micro businesses which will not expand quickly.

Pricing

Patriot has two plans which you can subscribe to monthly. The costs per month are

• $20-Basic
• $30-Premium

07. TrulySmall Accounting

Last but not least, there is TrulySmall accounting software. It’s simple and useful but has few features. So, it’s only ideal for one-person-run businesses or small startups. 

Key Features

• Automatic Posting
• Invoicing
• Reporting
• Digital Payments
• Multi-Currency

Target User/Customer

It’s ideal for freelancers, lone entrepreneurs and micro businesses that don’t require numerous accounting features.

Pricing

TrulySmall offers three plans. The rates per month are

• $8.99-Invoices
• $8.99-Expenses
• $20-Accounting

Comparison of 7 Best Accounting Software For Small Business

Feature	QuickBooks	Xero	FreshBooks	Sage 50	Zoho Books	Patriot	TrulySmall
Invoicing	✓	✓	✓	✓	✓	✓	✓
Expense Tracking	✓	✓	✓	✓	✓	✓	✓
Bank Connection	✓	✓	✓	✓	✓	✓	✓
Inventory Tracking and Management	✓	✓	✓	✓	✓	✖	✖
Reporting	✓	✓	✓	✓	✓	✓	✓
Multiple Users	✓	✓	✓	✓	✓	✓	✓
Pricing (Per Month for basic plan)	$18	$15	$19	$58.92	$15	$20	$20

MS Excel As Small Business Accounting Software

Microsoft Excel is a great tool for multiple tasks. It’s used in accounting and helps you to format, track, calculate and examine your data.

You can have clear information when you add more data. But it has limited features and you need real accounting software for complex tasks.

Is QuickBooks Good For a Small Business?

QuickBooks is a major player in the world of accounting software. It has a huge number of features and is customizable and yes, it’s good for small businesses. 

However, it costs a little more. But there is a discount offer at the moment so grab it fast.

How To Create Accounting Software For a Small Business?

You can also create accounting software for small business if you have the skills. Here are six easy steps to do so.

Step 1

Select a suitable software according to your needs and preferences.

Step 2

Do a thorough research first and create a file describing all your findings and requirements.

Step 3

The next step is to design various aspects of the software such as user interface and user experience.

Step 4

It’s time to build the accounting software. It’ll involve building the architecture, functionalities, core features and a lot more.

Step 5

While developing the software, you also have to decide whether to hot it or not. You can choose On-premises, web-based or cloud hosting.

Step 6

Offer continuous support and maintenance assistance. 

Frequently Asked Questions

Final Thoughts 

If you own a small firm and were wondering “What is the best accounting software?’, now you have the answer. There are many to choose from as you saw above.

You can pick from the seven best which we mentioned or even another one according to requirements and budget.