What Is the Best Accounting Software for Small Businesses?

Get Recommendations for the Best Merchant Account

    Outlasting competition can be a challenge for small business owners. Statistics from Fundera state that only two-thirds of all new businesses survive at least two years, while half of all businesses survive at least five years. This shows that the first few years tend to be the hardest, so staying on top of the latest tech developments is crucial whether you're self-employed or run your own company.

    Because of this, you should look into purchasing accounting software to keep track of your cash flow. However, there is no one-size-fits-all accounting software, as it will depend on your needs. To help you out, here's a list of some of the best accounting software for small businesses.

    Best User-Friendly Interface: QuickBooks

    QuickBooks Online, Intuit's cloud-based software, has all the features you need like scanning receipts, invoicing customers, and billing. It also includes sales tax tracking, automatic tax deduction, and more. It's relatively easy to pick up for new users, and the QuickBooks app can be used on the go.

    It is also very scalable and offers third-party integration with many other apps. However, it is one of the more costly accounting software options for businesses, starting at $25 a month for the cheapest option. Their more advanced options start at $150 a month.

    Best Budget Option: Wave

    The best accounting software for a small business on a budget is Wave. It helps you keep track of your business finances for free, and enables you to send simple invoices. It provides receipt scanning, has no transaction or billing limits, enables access to an unlimited number of users, and also has a mobile app.

    However, it lacks a full-service payroll option for the majority of states and doesn't provide inventory tracking, which can be a limitation for some. In addition, it charges higher fees for credit card payments and ACH payments. Despite this, it's still one of the best free accounting software programs out there.

    Best For Freelancers: FreshBooks

    FreshBooks offers easy-to-use accounting software for businesses looking for expense tracking and time tracking. This makes it especially ideal for freelancers or for those who deal with project-based payments. They can even send automatic payment reminders and alerts to clients and let you know when customers receive and open invoices.

    It offers a lot of customization options when it comes to creating accounting reports, but it can be a pricier option if you're planning on adding multiple team members to the accounting software. For these reasons, it's a great accounting service to invest in if you're a small team or individual focused on accounts payable and data entry services.

    Best For Mobile Integration: Zoho Books

    Zoho Books is a relatively affordable option that offers payroll services in California and Texas. It allows automation for inventory tracking and provides integration with the rest of the Zoho software suite when it comes to things like project management and customer relationship management.

    Their user interface is modern and sleek, which is something you should look for when choosing between accounting software products. Zoho Books also offers integration with major portable credit card processors, which can help you keep track of any bank and credit card transactions by customers.

    Best For Additional Features: Xero

    One of the best web-based accounting programs, Xero is a good choice for small businesses in search of an affordable accounting solution. No previous accounting knowledge is necessary, which can be helpful if tax season is coming up. The team user experience is generally positive for those who need to collaborate with team members and accountants.

    Plus, it also provides some useful add-ons including two-step authentication for business data security and a Hubdoc for project tracking, bill tracking, and receipt capture. One of their most useful features is quick bank reconciliation and integration with other financial companies. However, it offers limited customer service options.

    Frequently Asked Questions

    What is the easiest accounting software for small businesses?

    The easiest accounting program choices for small business owners include QuickBooks, Zoho Books, and Wave. These options provide a low learning curve for users, which is one of the reasons they are among the most popular choices for inventory management as well.

    What is the best free small business accounting software?

    The best small business accounting applications are FreshBooks, QuickBooks, and Sage Business Cloud Accounting. They provide all the essential features for every business including invoicing, expense tracking, and third-party app integration for ease of use.

    Additional Resources

    SBA - Local Assistance

    This resource will help small business owners find the contact details of local district offices, which gives them access to financial guidance, loan program information, development consulting, and additional support for businesses owned by women and minorities.

    Before purchasing an accounting application for your business, researching a variety of accounting software providers and trying out trials can give you an idea of whether it has the features you need to help you stay on top of your accounting needs.

    For other helpful guides and reviews on Credit Card Processors, Mobile Processors, Online Payment Processors, and more feel free to check out our other articles on Processing Card.

    Demystifying Level II and III Data: What It Does for Merchants

    Enter you email below to receive the guide.

    You have successfully subscribed to the newsletter

    There was an error while trying to send your request. Please try again.

    Processing Card will use the information you provide on this form to be in touch with you and to provide updates and marketing.

    High-Risk Merchant Account For Credit Repair and Education

    Enter you email below to receive the guide.

    You have successfully subscribed to the newsletter

    There was an error while trying to send your request. Please try again.

    Processing Card will use the information you provide on this form to be in touch with you and to provide updates and marketing.

    Understanding 3D Secure 2.0 Technology

    Enter you email below to receive the guide.

    You have successfully subscribed to the newsletter

    There was an error while trying to send your request. Please try again.

    Processing Card will use the information you provide on this form to be in touch with you and to provide updates and marketing.
    linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram