20 Best Accounting Software for Small Business in 2022

We chose AccountEdge Pro as our best accounting software for experienced accountants because of its robust features and reporting capability. It’s a bit more complex than some of the other software, so this software works best if you’re already familiar with accounting terminology. Small business accountants range in price, depending on a number of factors. If you’re hiring in-house, the US Bureau of Labor Statistics estimates accountants make an average annual salary of $70,000. Bookkeepers come in at $17.26 per hour, according to PayScale. The foundation of solid business bookkeeping is effective and accurate expense tracking. It’s a crucial step that lets you monitor the growth of your business, build financial statements, keep track of deductible expenses, prepare tax returns, and legitimize your filings.

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• We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.
• In Wave, users can separate personal and business expenses, which is ideal for freelancers or side hustlers who don’t have a separate business bank account.
• ZarMoney has simple pricing plans geared toward entrepreneurs, small business owners and enterprises.

Some sites just attach these receipts to a manually entered expense form. Others, such as Intuit QuickBooks Online and NeatBooks, read the receipts and transfer some of their data to an expense form using optical character recognition technology. These record templates vary in complexity, so you need to understand the differences before you go with one site or another. Some, such as Kashoo Classic, simply let you maintain descriptive product records. They ask how many of each product you have in inventory when you create a record and at what point you should be alerted to re-order. Then they actually track inventory levels, which provides insights on selling patterns and keeps you from running low.

How to choose accounting software

Add branding elements to your invoices and estimates for a professional look. Innovative dashboard, business insights and custom invoicing – all through your Lendio account. See funding solutions from 75+ nationwide lenders with a single application. We've curated a list of best free software that every business owner must use. The best aspect of this software is that you can customise everything from invoice numbers, footer information to changing template. Add custom fields to capture more information related to your business process.

• When sales start rolling in, you’ll need a way to accept payments.
• The great thing about this package is its flexibility and can be configured so that multiple users can make use of its many and varied accounting tools.
• It’s easy to set up, and even employees with no prior accounting experience can learn and manage it.
• While you're thinking about your money, you might also like to consider our reviews of online payroll services and tax software.
• Essentials – $50 per month for everything in Simple Start, plus up to three users, time tracking, and bill pay.
• If you anticipate rapid growth, you might want to consider NetSuite ERP.

Others can accommodate slightly larger businesses, though they might also be appropriate for startups and less complex companies. Nineteen accounting software companies were researched and compared before selecting our top five best suited for small businesses. When evaluating companies, we considered cost, ease of use, features, integrations, and scalability. There are many different types of accounting software available for small businesses, with varying capabilities and price tags. Generally, the type of industry and number of employees are two factors that can help a small business owner begin to choose the accounting software that is appropriate. For example, a freelancer would not need the same features in accounting software as a restaurant owner. A large portion of them are also extremely affordable, but so that you stay on the safe side, we recommend you to look exclusively at online and cloud-hosted technology.

Best for ecommerce businesses: GoDaddy

Optimized visibility lets you monitor analytic reports and customer payment history quickly and easily. Small businesses can take advantage of an advanced tool normally reserved for more expensive solutions. You can have all expenses categorized by currency, linked to specific projects and activities, tracked, and documented once the invoice is paid. Zoho Expense can easily record all company expenses in real-time, saving users valuable time. It allows for the syncing of credit card transactions, which can be accessed automatically. The smallest yet relevant detail can be included in such records.

The ability to combine accounting software tools and invoicing tools is rare, but FreshBooks does the job effectively. Xero offers three price plans ranging from $12/month to $65/month. As you move up through the pricing tiers, you get more features, invoices, and accounting management tools.

Pick a solution that will grow with you.

Other factors, like the included features and number of users, will affect the monthly cost as well. Plooto also speeds up payments by automating invoicing and allowing you to accept payments within invoices. Once a customer pays, the payment is automatically reconciled. Another plus is that Plooto bookkeeping integrates with QuickBooks and Xero, two popular accounting programs, giving you clearer records of payments, audit trails and easier reconciliation. You can pay electronically or via check with the integrations, as well as make batch payments, search records and set payment approvals.

Furthermore, unlike on-premise platforms, cloud accounting software solutions are easily scalable. This is thanks to a modular deployment that you can easily scale up or down when you need to. These are just some of the many reasons why more and more businesses and professionals are adopting cloud-based tools. Rossum is an intelligent software accounts payable solution that comes with an all-in-one document management platform. This AI-powered platform takes accounts payable automation to the next level by eliminating 90% of manual processes. Rossum removes manual invoice data entry by bringing in its own computer vision technology that reads and captures all types of invoices with top-grade speed and accuracy. The system’s graphs, dashboards, and transaction overviews offer users a vivid idea of how their business is doing anytime, anywhere.

Can I use accounting software with payroll software?

But as a small business owner, there comes the time where it makes sense to hire outside help. To do this, you need to establish whether that individual is an employee or an independent contractor. Technically, Canadians are required to use the accrual method. To simplify things, you can use the cash method throughout the year and then make a single adjusting entry at year end to account for outstanding receivables and payables for tax purposes. Bookkeeping is the day-to-day accounting process of recording business transactions, categorizing them, and reconciling bank statements.

• After you've supplied information about your company structure, one of your next setup tasks will be to add information about your customers and vendors.
• Use Xero to work with your accountant, bookkeeper, or employees, even if you’re on opposite sides of the world.
• Let’s consider where they shine in terms of ease of use, features, and pricing.
• Rebecca Freedman, owner of Conscious Accounting, is a Certified Public Accountant and business consultant who has a passion for making accounting fun and approachable for business owners.
• It also offers benefits like excellent customer support and the ability to accept payments online.

AccountEdge Pro provides double-entry accounting tools — from time billing and reporting to inventory — that are customizable and optimized for desktop users. The program is also available for a one-time fee, potentially saving you a lot of money down the line by avoiding subscription costs. One of Xero's most impressive characteristics is its mobile experience, making it an excellent option for businesspeople who work on the go. The software allows you to send custom invoices, track inventory, and create purchase orders to attach to bills — all from your phone or tablet.

Sage Accounting

One of Zoho's biggest draws is its accessible, user-friendly interface. It comes with an easy-to-read dashboard that virtually any member of your organization can make sense of.

We chose this free accounts payable software as one of our best picks because you can make and accept payments, manage bills and integrate with QuickBooks for free. If you need to create and send invoices, it can be challenging to find a small business accounting app that matches your needs.

Best for Multiple Users

All the accounting services I reviewed come with default settings that you may need to change. For example, do you plan to use specific features such as purchase orders and inventory tracking?