What Is The Best Small Business Accounting Software?
Accounting is an essential part of running a small business and there is no shortage of accounting software for small businesses. With that said, knowing which one will be the most suitable and easy to use is sometimes a challenge.
Accounting software allows businesses to spend less time on data entry, and connects systems, so you can see where your money is coming and going. It also gives you visibility into your profit and loss in real time so you always know how your business is doing.
It also keeps track of taxes, so you are prepared come tax time. Plus, mobile apps have now made it even easier to have all the information you want at your convenience.
Accounting software is less expensive than hiring accountants and bookkeepers, and allows you to keep track of your expenses, revenue, taxes, and payroll. According to Forbes in July 2022, the top 5 accounting software include Zoho Books, FreshBooks, Xero, Intuit Quickbooks, and Sage.
We are going to break down the pros and cons for each of the top 5 and help you narrow down what is best for your business. It is helpful to first decide what characteristics are most important to you.
As a maker, you are probably interested in something easy to use, reliable, helpful for taxes and an inventory functionality. While there is no perfect system, one size fits all, some may be easier and more flexible than others.
Quickbooks online seems to be a popular option among small business owners due to the amount of support available, different plans which include phone applications, and it can expand with you as your business grows.
While Quickbooks integrates well with Etsy, Paypal and most banks, it also requires a bit of a learning curve to learn how to navigate it. In addition, it may be more than you need, cumbersome, and expensive when you are initially starting your business.
Sage is another very popular accounting program. There are many reviews and comparisons online between Quickbooks and Sage. In short, Sage is better for larger companies, and probably wouldn’t be your first choice as a new small business owner.
Sage is not easy to master and can be difficult to set up. This would not be the first choice for a small business or start up.
FreshBooks is a great cloud based accounting software that is easy to use, and can manage all your financial and accounting needs. With its ease of use and great customer support, it seems like a great choice for any small business owner.
The only drawback to freshbooks is inventory management could be harder to deal with using this app. However, the pros far outweigh the cons, and this app would be a great choice for expense tracking, time tracking, accounts payable, and more.
Xero is a cloud based software program touted to be perfect for micro and small businesses. The program takes about 6 hours to learn to use, but once you learn, the program is a breeze and super helpful.
Xero allows you the opportunity to take control of your business finances anywhere in the world via a mobile app. Xero also is extremely efficient and has mobile app capabilities, so you have your finance information at your fingertips and in your control.
Data is always fluid and available, which Xero knows is important to business owners. Overall, Xero appears to be an excellent choice for small business owners, and seems to have everything you need for accounting.
Zoho Books and Xero are quite comparable and both have excellent customer support. Zoho is an excellent choice as well, but is pricier. Zoho has extensive features and a robust, easy to use platform, and millions of satisfied customers and positive reviews.
The only major differentiating factor is Zoho has multiple plans and pricing, and integrating systems. Zoho does not have payroll capability, while Xero does.
Truly the research is so comparable between these two software systems, and you won’t be disappointed with either. If you already use Zoho apps, you might find Zoho to be a perfect fit.
It depends upon what features matter to you the most, and how easy something is for you to navigate. Those are personal decisions. They are both extremely user friendly and have all the functionality and features that small businesses need for their accounting purposes.
before you decide
Due to the immense amount of software accounting programs out there, it might be worth your time to look briefly at all your options, as your unique business may require certain features that are only available in special programs.
Additional accounting software programs mentioned often for small businesses include Wave and GoDaddy. Finding the right software for your business will help you become more efficient and make less mistakes than manual processing.