best small business accounting

There’s also an online learning hub where you can get detailed information about specific topics and pose questions in a community forum. The expert score contributes to 10% of the data-focused methodology, which underpins our Blueprint business accounting rating for each company. The expert score combines first-person experience, subject matter expertise and extensive research to develop these metrics as another source of truth for readers during their decision-making process.

Why Use Accounting Software?

Xero’s online topic catalog can help users learn how to use the tool for tasks like sending invoices or reconciling transactions. There are other reports, though, that aren’t so easy to understand. Small business accounting software can generate them, but you may need an accounting professional to analyze them and tell you in concrete terms what they mean for your company. You can also match related transactions, such as an invoice entered into the system and a corresponding payment that has come through. You can split transactions that should be assigned to multiple categories, make notes, and reconcile your accounts with your bank and credit card statements. Next, you have to ask yourself whether you want access to the transactions you have stored in online financial accounts (checking, credit cards, and so on).

Is Xero easier to use than Sage?

  • Accounting software can improve productivity by automating time-consuming tasks, such as invoicing and tracking payments.
  • Banks have been tightening up their security (which is a good thing), so you may have to jump through a couple of security hoops to get connected.
  • FreshBooks is a well-known name in accounting software and for good reason.
  • If you’re happy to commit a year at a time, then that should offer savings.
  • From April 2026, self-employed businesses with an annual turnover above £50,000 will have to use MTD-compliant software.
  • If the software supports an app, consider both its desktop and mobile interfaces.

I signed up for a free trial of FreshBooks’ accounting software and tested it on a Mac laptop using the Safari browser. All action items were clearly labeled and I was walked through how to complete all tasks. All in all, once I got past the learning curve surrounding account navigation in Zoho Books, I found the software to be feature-rich and with plenty of convenient tools to make completing tasks intuitive. QuickBooks is a good choice for freelancers and small businesses that need a simple way to track expenses, organize receipts and log mileage. Accessing all included tools using the left-hand menu was easy, as it’s a menu that is always present no matter where I navigated on the platform. Once I clicked a menu tab, all the tools I needed to use to complete relevant tasks were included in the resulting page.

best small business accounting

Xero: Best Accounting Software For Growing Businesses

  • From free plans to premium packages, the cost of accounting software for small-business users can vary widely, with average monthly costs ranging between $11 and $200.
  • Record templates vary in complexity, so you need to understand the differences before you go with one accounting service or another.
  • However, Zoho Books may be your best accounting solution if you have a service-based business or already use other Zoho products and services.
  • However, it could be FreshBooks’ small size that allows it to provide the outstanding customer service for which it’s known.

It comes packed with plenty of accounting features aimed at smoothing the process for SMB’s. Lookout for reporting functionality, bank syncing and billing tools too, while it’s also possible to use ZipBooks for day to day administration duties including expense tracking and invoicing. Kashoo – Best hassle-free accounting softwareKashoo is aimed squarely at small and medium-sized businesses and, while it’s certainly easy to use, this is a cloud-based accounting package that has plenty of muscle. It’s also useful if you’re dealing with a global customer base as there’s multi currency support.

best small business accounting

OneUp’s plans offer good value for money, with even the cheapest plan covering all features. The main difference is in support availability and the number of users allowed. AccountEdgePro is the most popular version and costs $20 per month for a single user. The AccountEdge Network Edition costs $30 per month and allows for two users. Finally, the multi-user AccountEdge Hosted plan ($40 per month) is a hosted desktop model, allowing you to use cloud technology to access your files.

Xero Features

Not only will you spend hours of your time painstakingly entering and categorizing data, but you’ll have a harder time catching mistakes. Most accounting software also syncs with payroll software so you don’t have to transfer your paycheck data into your general ledger by hand. Sure, QuickBooks could be the best software for your small business, or you might find its prices too high and its features too limited. Depending on what you need, another bookkeeping software pick like FreshBooks or Sage could be better for your business. Check out our list of the year’s best QuickBooks alternatives to get started. Additionally, FreshBooks doesn’t include bank reconciliation with its cheapest plan.

Our Top Picks for Accounting Software for Small Business

best small business accounting

The free accounting software installs alongside its companion program, the paid-for VT Transaction+, but you don’t need to buy the latter to use the former. Paid tiers include most of the features you’ll ever need, including advanced ones such as smart tagging, with advanced reporting and intelligence. On the topic of support, we should mention that it is essentially a self help knowledge database, along with a support portal.

Best for Micro-Businesses: Xero

  • Costs can really add up both upfront and ongoing, so it’s important any prospective user has a completely validated needs case first before committing.
  • By tracking income and expenses and determining profit and loss, businesses can improve their cash flow through an affordable and easy to use platform that allows them to spend the least amount of time entering data.
  • Xero is a great option for businesses with multiple users, especially those needing excellent inventory management features.
  • At $39 plus $6 per user per month, Gusto is also fairly reasonably priced.
  • We then assigned our Editors’ Score to the top seven options from our ranked list.

You can filter transactions, match receipts with expenses on the go, customize invoices, make payments and view trends and insights about your business. Plus, you can get automatic accounting reports, receive guided workflows and set it up in five minutes. ZarMoney earns a 4.7-star rating on Capterra with 83 user reviews and a 4.8-star rating out of 24 user reviews on G2.

As I tested the software, it was clear that the platform was designed primarily for the purpose of storing financial documents. To begin, I filled out a simple form with my name, contact information, company name, industry and a chosen platform. I was then taken through a two-step process to verify my identity using my email and mobile phone. When I clicked “invoice” from this drop-down, I was taken to an invoice template with my company information already populated.


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