Best Accounting Software For Small Businesses

by Navicasoft
24 Vendors Reviewed
18 Hours of Research
9 Experts Interviewed

Doing a business can be difficult, especially if you do all payment and other financial operations by hand. The best accounting software for small businesses will help you save time, organize your finances more comprehensively and provide an easy way to generate ready-made reports that will help you manage your business. 

Best Accounting Software For Small Businesses

There are many different types of accounting software available for small businesses. Not only do they work with your banking and bookkeeping system, but some products allow you to interact with customers and vendors in a standardized way. The key is finding the one that is right for your business.

I have prepared a list of the five best accounting applications that will be right for your business needs.

Our Top 5 Best Accounting Software For Small Businesses

Best Accounting Software For Small Businesses Reviews

1. Best Overall: Xero

Xero Xero logo

Our rating: ★★★★★

Many startups and small businesses are looking for excellent accounting software that will allow them to keep track of their money and simplify some of the day-to-day tasks. Here we will look at one that does just that: Xero.

Xero is cloud-based accounting software for small businesses explicitly built for entrepreneurs, freelancers, and startups. It’s easy to use, tracks your income, expenses, and bank account information, all while connecting you with the people you need, including tax accountants, investors, or business partners.

Xero Review

One of Xero’s best features is the ability for you to quickly find and communicate with your clients. For instance, when you get a new customer, you can import their information directly into Xero from another program. This saves time and allows them to be put on your customer list instantly rather than manually inputting their data. 

You can then add notes about them, such as contact details or soft credit checks that they have undergone, which will be handy if you are looking at doing business with other companies they are partnered with or if they have any attached invoices and bills.

2. Best User-Friendly: QuickBooks Online

QuickBooks Online QuickBooks Online  logo

Our rating: ★★★★★

QuickBooks Online is an accounting service that offers a range of features and functions. Designed specifically for small businesses, QuickBooks Online simplifies the process of management accounting with just enough features to cover most needs of a simple business. The software can be accessed via any browser-equipped device or through PC or Mac desktop software.

QuickBooks Online has everything a business needs to track invoices, expenses, track time, generate reports. It also has tools that help with payroll, and US employers can use their service to file taxes. 

QuickBooks Online Review

The core features of QuickBooks Online include contact management, task tracking, time tracking, project management, invoicing, and business reports. It also offers a mobile app for both iPhone and Android devices.

3. Best for Service-Based Businesses: FreshBooks

FreshBooks FreshBooks logo

Our rating: ★★★★★

If you’re the owner of a small business, you might be feeling overwhelmed by your accounting workload. For many entrepreneurs, bookkeeping can take up to 80% of their time — and it doesn’t have to! So here I explore FreshBooks accounting software for small businesses.

If you’re anything like me and are strapped for time as an entrepreneur juggling biz and life, getting bogged down in tedious bookkeeping tasks is all too common. That’s why I was so excited when I heard about FreshBooks accounting software for small businesses! This software offers tons of automation features to save me time while also reducing my paperwork load.

FreshBooks Review

FreshBooks is accounting software for small business, helping entrepreneurs invoicing from your desktop or mobile device in just 2 minutes a day. You can quickly create professional-looking invoices from notes and estimates you already have. Plus, you can quickly create professional-looking invoices from notes and estimates you already have.

But more importantly, FreshBooks makes it easy to take your business finances in-house. With FreshBooks, you can bill directly to customers and seamlessly track expenses for your business – all while paying only the small business “minimums.”

FreshBooks is cloud-based accounting software for small businesses that helps entrepreneurs take control of their books. For example, you can set up digital invoicing without ever having to talk to a customer. Plus, it’ll automatically keep track of every single expense, so you never forget an essential detail.

4. Best Automation: Zoho Books

Zoho Books Zoho Books logo

Our rating: ★★★★★

Zoho is a leading company that provides an elegant solution for small business owners to manage their finances. Zoho Books provides a perfectly integrated surface where you can manage your expenses and revenue, invoices, payments, and other financial aspects of your business.

Zoho Books review

This accounting software includes various features that help you to operate your business and increase revenue:

  • Bookkeeping
  • Inventory control
  • Receipts
  • Expenses
  • Bills and quotes
  • Reports and dashboards
  • Manual or automatic report generation

The first feature to mention is the bookkeeping feature. Zoho Books has integrated features for booking expenses and revenue. What’s more, you can track receipt of payment and indicate the amount of taxes to be deducted. This kind of information will help you manage your business more effectively while keeping your accounting records up-to-date at all times. After that, you’ll have no trouble lodging tax returns at a later date.

Another important aspect is inventory control. Zoho Books enables you to keep track of what’s sold and what’s left by using the inventory control functions offered by the software.

5. Best Affordable: Wave Accounting

Wave Accounting Wave Accounting logo

Our rating: ★★★★★

Wave Accounting is software for accounting for small businesses that offer a comprehensive suite of tools designed to be easy to navigate and intuitive. In short, Wave can help you with bookkeeping, sales, and purchases, invoices, payroll management, as well as inventory control.

Some key features include creating statements and reports in a variety of formats; budget planning; customizable invoice templates; automatic backups; time tracking, which logs time spent on each task so billing rates can be calculated accurately on the fly; email reminders that help you stay on top of your workload while staying connected with your clients.

Wave Accounting Review

Wave Accounting is also a cloud-based accounting system so that you can access your data from any internet-connected device, including your smartphone or tablet.

Key Points To Highlight In Wave Accounting Review:

  • Cloud-based accounting system for small businesses
  • Quick and easy-to-use interface. Small ticket items are celebrated.
  • A mobile app is available. You can view reports from anywhere, even on an airplane.

Wave Accounting excels at bookkeeping as it offers customizable templates, time tracking capabilities, invoices that are automatically created from your tags and notes, as well as automatic backups.

Buyer’s Guide

The popularity of accounting software for small business has grown in recent years, for a number of reasons. Cloud-based software is easier to learn and cheaper than rivaling products. 

With the support of virtual assistants, small businesses can now outsource many accounting tasks to online service providers and save time and money on training employees. Cloud computing also helps small business owners stay focused on their core business activities instead of wasting time with mundane tasks like bookkeeping.

If you are considering buying an accounting software product for your small business, you may find this article helpful as it reviews the top services available today and provides guidance on what to look for when shopping around for an affordable solution that will fit your needs best.

What Is Accounting Software For Small Business

The accounting software is an application designed to manage transactions and get the financial data ready for tax reports. The popular accounting software consists of a number of necessary features: from creating invoices to payments, billing or receiving payments, managing inventory, keeping track of expenditures and incomes.

What Is Accounting Software For Small Business

Benefits Of Using Accounting Software For Small Business

Accounting software for small businesses is a powerful tool in the accounting world and for many great reasons. It will provide you with fast and accurate calculations, it will save time on data entry, and it can be customized to work specifically with your business. If you’re looking for an accounting solution that can help your business stay afloat, then go over this list of benefits to see if this type of software can work for you.

  • Save Time: Accounting software takes care of the data entry aspects of running a business by providing the ability to enter monthly transactions automatically instead of manually from each individual point-of-sale system. This saves you a lot of time in credit card reconciliation, bank statement analysis and report generation.
  • Reporting: Accounting software will give you the ability to perform ad-hoc reports on the fly, which can help to streamline your business’ financials. This is a great feature for new business owners who want to keep tabs on sales trends and areas of growth at all times.
  • One-Stop-Shop: This software is a centralized solution that lets you utilize many different accounting solutions at once. Instead of using multiple types of software, such as payroll and inventory management, with accounting software, you can access these services through a single program.
  • Streamlined: This type of software allows you to streamline your business activities by keeping all financial information in one place for easy access, which means less time spent trying to locate the right account or document for your needs.
  • Multiple Users: A big advantage of accounting software is that it can be shared among multiple users. This is especially helpful in businesses with numerous employees, and will likely save you a lot of money on training costs.

Accounting Software For Small Business Features

Before choosing the best software for your business, just take a look at the main features:

  • Customizable reports to meet your needs.
  • Easy and intuitive dashboard for quick access to information about your business.
  • A stable, reliable platform that’s always up and running so you can get back to the work you love.
  • Automatic backup of your data to ensure that all your financial information is safe and secure.
  • Cloud and web-based software, which means you have access to it anywhere, anytime.
  • All the accounting tools included managing your finances for free.
  • A customer support team who are here to help whenever you need them.
  • Custom accounting features are designed for thousands of small businesses like yours.

These features may vary depending on the software you’ll choose.


Are Small Businesses Use Accounting Software?

Yes, small businesses use accounting software. However, accounting is a pivotal function for all companies. For example, suppose you are not using accounting software to manage your company finances. In that case, you are running the risk of mistakes and inaccurate insights, leading to problems for your cash flow and even bankruptcy.

Which Is Better For Small Business Quicken Or Quickbooks?

The choice between Quicken and QuickBooks is not always straightforward. To make the decision easier, it’s essential to understand the benefits of each package as they relate to your unique business needs.
Quicken offers a free trial, making it perfect for testing out if this software will work for you. It also has a more detailed set of charts and graphs that may be helpful for those who want financial information at-a-glance. That said, Quicken may not have all of the features desired for managing inventory or sales tax rates – but you can always upgrade by purchasing QuickBooks software.

Is Quickbooks Worth The Money?

QuickBooks is an excellent option for any entrepreneur who wants to make sure they have accurate financial records without drowning under hours upon hours of paperwork each week. This is an accounting software package that helps simplify managing cash and tracking money coming in and going out. It also automatically calculates profit, loss, and income per period so you can focus on your business rather than your books.

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