Best Accounting Software for Small Businesses: Our Favorites

FreshBooks

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Pros


Automated invoicing;
Credit card payments;
Affordable pricing

Cons


Limited invoice customization

Price


$10+

QuickBooks

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Pros


Easy to use and learn;
Satisfying reports;
Easy to fix errors:
Available on all devices

Cons


Lack of reports outside of accounting

Price


$20+

Pros


Free option;
Integration with other software and tools;
Cloud-based

Cons


Payroll option available only in the US and Canada

Price


$0+

BizSight 365

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Pros


Cloud, SaaS, and web-based;
Bank reconciliation;
Accounting integration

Cons


Expensive personalized phone support

Price


$10+

Pros


Easy and efficient invoicing;
Affordable pricing;
Errors can be easily fixed

Cons


Reporting

Price


$10+


Accounting Software for a Small Business: Top 5 Reviews

FreshBooks

What They Offer

Accounting and payroll

Collaboration software

Expense and time tracking

Project management

Customizable proposals

Online payments setup

Dashboard and reports

Quotes and custom estimates

About FreshBooks

FreshBooks started as an electronic invoicing solution for IT professionals in 2004. Now, it’s among the best accounting software for small businesses in the UK.

It offers a versatile accounting solution that optimizes double-entry accounting—a system in which each account entry gets a corresponding opposing entry in a different account. It supports time tracking, project management, and collaboration, ensuring that the team is always at a productive peak.

Pricing Plans

  • Lite: $15 monthly
    • For professionals and freelancers
    • Up to five billable clients
  • Plus: $25 monthly
    • For small business owners wanting more insights and automation features
    • Up to 50 billable clients
  • Premium: $50 monthly
    • For growing businesses
    • Unlimited billable clients
  • Select: Custom pricing
    • For businesses with complex accounting needs
    • With specialized features
    • Unlimited billable clients

Most Notable Features

Expense Tracking and Categorization

Take a peek at how your business is spending your cash through its reliable expense tracker and categorize for easy tax filing.

Time Tracking

Work more efficiently by tracking how much time you or your team spends on each project or client.

Accounting Tools

Use a simplified double-entry accounting toolset to record finances with accuracy.

Collaboration and Project Management

This simple bookkeeping software helps manage projects and promote collaboration.

App Integrations

Integrate over 100 useful apps to organize and manage your business on a single platform.

Cloud, SaaS, Desktop App, and Mobile App

FreshBooks is available in multiple application channels via the web, desktop app, and mobile app.

Professional-looking Invoices

FreshBooks has an invoice generator, making it super easy to create and configure invoices.

Customer Service

Besides the comprehensive resource hub that tackles the most frequently asked questions, FreshBooks has rockstar worldwide support that anyone can reach out for guidance.

Whether you’re a user in Ireland (1800 949 046), UK (0808 101 3408), France (33 801 84 00 99), or the US (1 866 303 6061), it has globally structured customer support dedicated to assisting users Monday through Friday 8 AM–8 PM ET.

FreshBooks also offers email customer support, which you can contact through support@freshbooks.com.

Summary

With this bookkeeping software for small businesses, accountants and business owners get access to Freshbooks’ essential tools that make running a business a breeze. Its award-winning customer support ensures that one call is all it takes to receive help whatever issues you encounter. Also, its numerous app integrations guarantee that you don’t have to jump from one software to another to keep track of your business’s finances—tying everything in one place.  

With its Lite plan, FreshBooks is excellent accounting software for small companies with no employees. Perhaps its disadvantage is the limited features. Although plans are reasonably priced, you need to pay more if you want any specialized features.

QuickBooks

What They Offer

Bank-level security

Automatic invoicing

Accountant access

Mobile apps

E-file service

Customizable reports

Unlimited invoices

Varying add-on services

About QuickBooks

QuickBooks offers accounting software packages marketed by a top business accounting software company, Intuit. Its line of products targets to meet the varying needs of 4.5 million small to medium-sized businesses.

Users can choose between QuickBooks Desktop, a one-time purchase license-based installable application, and QuickBooks Online, cloud-based software with a recurring monthly cost.

Pricing Plans

  • Simple Start: $25 monthly
    • It gives access to one user plus your accountant.
    • With QuickBooks simple start, you can review your income and expenses, create invoices, SMB accounting, and other basic features.
  • Essentials: $50 monthly
    • It gives access to three users plus your accountant.
    • Besides tracking and invoicing features, this includes insights and reports and multi-currency tools. 
  • Plus: $80 monthly
    • It gives access to five users plus your account.
    • This plan includes extra features to track inventory, projects, and locations, manage budgets and recurring transactions.
  • Advanced: $90 monthly
    • It gives access to more than five users
    • This plan includes advanced features, involving business analytics and insights, employee expenses, on-demand online training, and much more.

Note: All plans also include a 30-day trial. That is perfect for those who hesitate whether to get the software or not.

Most Notable Features

Simplified Accounting

Quickbooks payroll options and its income and expenses tracking features enable businesses to organize all their finances and cash flow in one place.

Multiple and Flexible Plans for Easy Scalability

Whether you’re a freelancer or a solopreneur looking to take your business to the next level, this easy software for accounting has flexible plans that frame the needs of every small business.

Unlimited Invoiced and Advanced Invoicing Features

Send unlimited invoices any time from a mobile phone. Its automated invoicing features allow users to generate invoices and automatically send them to regular clients, saving time.

Over 650 App Integrations

Eliminate other manual work by integrating multiple third-party apps that you already use, like PayPal, Amazon, Shopify, and over 650 more apps.

One-Click Reporting

With just a click, you can get insights into how your business is doing. Just view the balance sheet, profit and loss records, and other reports.

Multiple Currencies

Simplify bank reconciliation and generate reports in different currencies. QuickBooks supports more than 150 currencies, making it one of the best accounting software for self-employed, small businesses, and startups.

Cloud, SaaS, Desktop App, and Mobile App

Access QuickBooks via the web, desktop app, or mobile app, anywhere you are.

Customer Service

Its exceptional customer support is reachable in various ways. Depending on your concern, you can get help from its dedicated phone support, search through the resources, or post your question in the online community.

You can find phone support at 1 (877) 683 3280 from 5 am to 6 pm PST, Monday through Friday, and 7 am to 4 pm PST on Saturday and Sunday to get immediate help with your concern.

It also has in-software assistance in the form of an AI live chat and an online international community and help center where you’ll find answers to important topics, like accounts, banking, tax, and more.

Summary

All in all, QuickBooks offers an across-the-board accounting software service that makes it a top choice for small businesses. With its scalable plans, it’s also one of the best accounting software for medium-sized and small business ventures.

QuickBooks pulls together the best functions to streamline every financial aspect of the business, from payroll to card payments, budgeting, tracking, and sales tax collection and filing. It’s straightforward and makes collaboration simpler.

Its only drawback is that the subscription plans are quite costly. There’s also an extra cost to its services, as the filing of 1099 tax forms costs $14.99. Unless budget is a fundamental issue, you’ll find QuickBooks highly efficient.

Wave

What They Offer

Unlimited tracking of income and expenses

Detailed reports on cash flow

Multiple businesses in a single account

Unlimited receipt scanning

Basic inventory

Free Android and iOS mobile app

Zapier integration to over 1,000 apps

Encrypted cloud

About Wave

Wave’s accounting packages for small businesses have everything you need in one place. Since 2010, Wave has tracked over $330 billion in expenses and income and served millions of small businesses.

Users love it because it provides unlimited income and expense tracking and several more accounting features at absolutely zero cost. No need to install any software as Wave is cloud-based. Plus, it has paid services, such as payment processing and payroll, saving you from the hassle of looking for another vendor.

Pricing Plans

  • Payroll Services
    • Self-service Payroll: $20 monthly + $6 monthly per employee or independent contractor.
    • Tax service Payroll: $35 monthly + $6 monthly per employee or independent contractor.
  • Tax Service: $129 per month
    • Includes filing tax returns, representing you before the IRS, quarterly review, and more.
  • Bookkeeping Service: $129 monthly
    • Includes planning, categorizing transactions, reconciliation, and more. 
  • Accounting Coach: $79 monthly or $199 one-time fee
    • Receive advice, guidance, and live coaching on the best way to handle accounting in your small business.

Most Notable Features

Wave Dashboard

Get instant insights into your business, such as expenses breakdown, via one of the most popular accounting software.

Professional Invoice Templates

Make recurring or one-time billing and invoicing easy with customizable templates that are free to use.

Free Mobile App

Send invoices, perform significant transactions, and track your business anytime and anywhere you go.

Multi-Currency

Wave supports over 160 currencies with exchange rates that are updated daily.

Chart of Accounts

Get access to a chart of accounts that’s configurable to help you make accounting as simple as possible.

Inventory

Add item names, descriptions, and prices for easy billing.

Reports

Generate 12 different reports, such as a cash flow report, either accrual or cash-basis, for easy quarterly or yearly comparison.

Cloud, SaaS, and Mobile app

Wave is 100% web-based, but you can download its invoicing and receipt scanning apps on mobile.

Customer Service

In addition to being one of the best accounting software for small businesses, Wave’s multi-channel customer support is also what makes it stand out. It provides in-account support, which enables users to contact support through the in-software support form. 

It also has its help center if you need navigational instructions and how-to guides related to accounting. If you need business tips or want to discuss ideas with fellow entrepreneurs, the online community is the best avenue.

Phone and chat support are available for paid services only, such as payroll and credit card payment processing. As for email, customer support is available via media@waveapps.com.

Summary

If you’re a freelancer, independent contractor, or entrepreneur, who has a small budget but needs accounting software that does the job, look no further than Wave.

Getting free accounting software with good features sounds too good to be true. Yet, that’s what Wave is. If you don’t mind the primary elements of a small business accounting software that’s free, then you should be good to go with Wave. It has solid invoice customization options and a tad more detailed record templates.

You can improve Wave by including a dedicated time-tracking feature, which it currently doesn’t have. Overall, Wave has excellent service.

BizSight 365

What They Offer

Easy setup

Current technologies

Multi-language and currency

International support

Inventory receipts and purchase orders

Reporting and dashboards

Customizable invoices and other templates

About BizSight 365

BizSight 365 is flourishing as one of the best online accounting software for small businesses today. It’s a second-generation and entry-level Software-as-a-Service (SaaS) solution hosted on Azure. It is based on different pieces of technology used by Microsoft itself, allowing it to support common browsers.

Its accounting, payroll, reporting, and other robust features run on the latest technology, so there’s no need to worry about downtimes during upgrades or updates. Unlike other software, BizSight 365 caters to bilingual clients, which is a unique advantage.

Pricing Plans

  • Free 3-month trial
    • The first three months are in the house. Therefore, you’ll have 90 days to try its features and gauge whether it fits your needs.
    • Features include invoicing and payments, tracking, recording, journals, bank reconciliation, and more.
  • Pro: $15 monthly per user
    • Includes the same features found in the free trial, plus importing and exporting Excel files, inventory adjustments, and physical count.
  • Manufacturing: $35 monthly per user
    • Offers software for small businesses in the manufacturing field to enable more control in the inventory, sales orders, and purchase orders.
    • Includes material planning, WIP and cost tracking, employee time tracking, production reporting, and more.

Most Notable Features

All-Inclusive Cloud Accounting Software Capability

It lets you create and customize invoices in a snap, add detailed notes, and track income and expenses in the cloud or local device.

Sales Orders Tracking

Track drop-ship purchases and backorders.

Organized Recording

Keep detailed data on vendor bills, cash and credit expenses, and purchase orders.

Inventory

It’s packed with tools for costing, inventory control, and physical count, perfect for small businesses requiring regular inventory records.

Manufacturing

Create and track work orders, costs, work-in-process goods—ideal for businesses in the manufacturing industry.

International Support

This small business accounting software has already been used in the US and 13 other countries in varying industries. It has dedicated global support with multi-currency and VAT.

Cloud, SaaS, and Desktop App for Windows

Access your account through the web or locally installed software.

Customer Service

Customer support is reachable via email at hello@biztechnologies.co, phone (614) 352-2472, and the site’s Contact Us page.

BizSight 365 offers a personalized annual phone support service to users to get the most out of the software subscription. It covers software assistance, remote desktop access, business guidance, and more from its service partners, CPA firms, and technology vendors. The prices are $175 for a single incident, $500 for 3-pack support incidents, and $750 for 5-pack support incidents.

Summary

BizSight 365 is reasonably priced, making it one of the top accounting software out there. It’s a reliable company, given that it’s collaborated with Microsoft Azure to enable cloud service and uses the latest software technology.

If you compare BizSight 365 accounting software with many others, it is one of the few that offer three months without any fee—it’s the longest-running trial period you can get from accounting software. Plus, it also has global support for Spanish, Portuguese, and other speakers, leaving non-English customers with a positive experience.

Its personalized phone support is a bit expensive. However, it can be considered an investment, especially for first-time small business owners who don’t know a thing about accounting.

Xero

What They Offer

Contacts and smart lists

Payroll and benefits management

On-time payments

Real-time reporting

Inventory

Bank reconciliation

Sales tax

About Xero

Since 2006, Xero is widely considered one of the best financial, tax, and accounting software in the market. has grown to have over two million subscribers and several global offices.

Its software optimizes a single unified ledger, allowing business owners to record and work in a similar set of books the entire time. Its robust accounting software lets users do all accounting tasks, from invoicing to monitoring employee spending.

Pricing Plans

  • 30-Day Free Trial
    • Test Xero’s features without limitations for one month free of charge. 
  • Early: $12 monthly
    • Suits sole traders, freelancers, and new businesses that seek key accounting features. 
    • Send quotes and up to 20 invoices.
  • Growing: $34 monthly
    • Ideal for growing small businesses. 
    • Unlimited invoices, quotes, bills, bank reconciliations, and bills. 
  • Established: $65 monthly
    • For any sized and established business. 
    • Includes the standard features with the added benefit of multi-currency.

Most Notable Features

Bills Tracking

Helps users stay on top of their bills, cash flow, and accounts payable.

Bank Connections

Allows users to link their bank accounts for seamless and secure transactions.

Payment Solutions

Connect to payment solutions like Stripe to make online payment processing faster.

App Integration

Choose from over 800 online accounting apps in the app marketplace and personalize your software by integrating payroll, point-of-sale, and other software solutions.

Cloud, SaaS, and Mobile App

Besides accessing via the web, apps for iOS, Android, and iPad are available to download.

Bank Reconciliation

Keep your account up-to-date by reviewing and matching transactions daily using suggested matches.

Contacts and Smart Lists

Review your client or supplier’s sales, invoices, emails, and other transactions in the contact history.

Customer Service

Xero is a top business accounting solution that provides unlimited user support 24/7 for free. But if you have questions and want immediate answers, you can search through its resource center’s posts and discussions.

If you’re unable to get answers from posts, you can log in and hit the Get in touch button at the end of each support article, and someone will get back to you through email. 

Xero doesn’t have inbound phone support, so it doesn’t have any phone numbers. In cases where you need phone support, you can request it by filling out the online form.

Summary

Xero is one of the best accounting software for Shopify, Amazon, or any other ecommerce business. The company is trusted and reliable and one of the industry’s premier software companies. With its powerful accounting features, business owners can remain on top of their finances.

Compared to its competitors, Xero’s accounting is not cheap accounting software. Moreover, it lacks phone and chat support, which is a hassle. Users can’t get immediate resolutions as the only available channel for assistance is via email.


Picking the Best Accounting Software for a Small Business: Buyer’s Guide

A single Google search will give you innumerable options, but what is the best accounting software for your small business?

With every company displaying both advantages and flaws, it’s difficult to pin down the software that meets all your accounting needs. Here’s a quick guide to point you in the right direction.

How to Choose the Best Accounting Software for Small Businesses: Step by Step

Cost

First, you should consider how much you are willing to shell out for accounting software. Then, find the top 10 accounting software with plans that are within your budget range. Check thoroughly if any of these companies have the features that you need. If none, you may need to increase your budget to accommodate your needs. Don’t go for affordable software that lacks essential features.

Usability

Do you need offline accounting software or an online one? In our fast-paced digital world, you might prefer an online choice. So, at this point, you should decide if you want web-based software that operates on a cloud or an app.

First of all, you must consider its ease of use. While many busy business owners want to access their finances via a mobile app, some prefer the traditional way of the web. Also, you must not forget to opt for a product that enables shared accessibility features. If you want another person to access your records, make sure you get one with the appropriate number of allowed users.

Customer Support

Despite the different types of accounting software, excellent software has accessible and responsive support. Encountering problems with your software can be frustrating. But it’s even more frustrating if you can’t reach someone from the other line to straighten things out. That’s why you should choose a company that has responsive customer support. Ensure the company has other communication channels, so if you can’t reach its phone support, you can send questions through email or chat.

Features

The common misconception about products is that the more features, the better. But that’s not all true. When choosing accounting software, pick one with vital features, such as tax and accounting features. For instance, if you are looking for the best accounting software for your small construction business, you might want to leave the extra features out. Some features have associated costs, so you’ll end up spending more on something you don’t need at the moment. Plus, unnecessary features may make your dashboard look unorganized. Only include features that serve your needs.

Summary: Best Accounting Software for Small Business

Money is the lifeline of every business, and if you don’t know where your finances go, prepare for a collapse. Here’s the thing—if you can’t translate your business into numbers, you can’t improve it. That’s why an accounting software where you can record your expenses, income, and literally every dollar that goes in and out is a must, independent of the business size.

You can even opt to use free open source business accounting software if you have no budget. It doesn’t matter if you get free or paid software. Using one doesn’t only give you readable data about your business health, but it also boosts productivity and collaboration. It also centralizes financial management.


Frequently Asked Questions

What is the easiest accounting software for small businesses?

The easiest accounting software programs are FreshBooks, QuickBooks, and Wave. Accounting may seem an intimidating task. However, thanks to the unlimited resources on the internet, it’s now easier to learn. Also, accounting software developers today consider fundamental factors, such as ease of use and simplicity, when building software, so even people with non-finance degrees can learn to use the software in days.

Do I still need an accountant if I use an accountant software?

Although the accounting software will certainly automate many lengthy processes, such as storing and analyzing data, that doesn’t mean that it will replace the accountant. You still need an accountant that guides you through your financial journey and gives you valuable advice to keep up with the ever-changing tax legislation. These are important aspects that accounting software cannot replace.

How much does CPA cost for a small business?

Generally, a CPA costs from $150 to over $400 per hour depending on the business size, type of work, experience, and location. Each accountant must have their own plan with a flat rate and variable costs.
Overall, hiring a certified accountant can be more expensive than investing in accounting software. However, as stated above, a human accountant is not replaceable. So, it’s important to invest in both options to make the best of your finances.