Best Accounting Software for Small Businesses

Finding the right accounting software can be a game-changer for small businesses, cutting down hours of manual work and reducing errors. Did you know that 82% of small businesses fail due to cash flow problems?

The right accounting software helps avoid this by keeping your finances in check, automating tasks, and offering insights into your business health.

Whether you’re just starting or scaling, choosing the best tool is crucial to your success. Let’s explore some top choices that can help you stay on top of your finances, effortlessly.

QuickBooks Online for start up

Reasons to Buy QuickBooks Online

• Scalability: QuickBooks Online offers multiple subscription plans, allowing businesses to scale up as they grow. It’s suitable for freelancers, small businesses, and even those with complex accounting needs.
• Feature-Rich: The software includes comprehensive features such as invoicing, expense tracking, inventory management, and project profitability tracking, which cater to various business needs.
• Extensive Integrations: With over 750 integrations available, QuickBooks Online seamlessly connects with other business tools like CRM, payroll, and e-commerce platforms.
• User-Friendly Mobile App: The mobile app is robust, allowing business owners to manage finances, send invoices, and track expenses on the go.
• Cloud-Based Access: Being cloud-based, QuickBooks Online allows for easy access from anywhere, facilitating collaboration with accountants and other stakeholders.
• Comprehensive Reporting: The software provides a variety of built-in reports, including profit and loss, balance sheets, and custom reports, which help in making informed business decisions.

What Sets QuickBooks Online Apart

• Robust Inventory Management: Particularly in the Plus and Advanced plans, QuickBooks Online excels in inventory management, including features like stock level tracking, purchase order creation, and real-time inventory alerts.
• Strong Ecosystem: QuickBooks Online’s ability to integrate with a wide range of third-party applications, including payment gateways, payroll systems, and CRM tools, creates a powerful ecosystem for small businesses.
• Frequent Updates: The platform is continuously updated with new features, making it more versatile and ensuring it stays competitive with other accounting software.
• Customer Support Access: While customer support has its challenges, QuickBooks offers support through various channels, including phone, chat, and a robust community of certified QuickBooks professionals.

What It Lacks

• High Cost: QuickBooks Online is generally more expensive compared to its competitors, especially for plans that include advanced features like inventory tracking and project management.
• Learning Curve: Users without a strong accounting background may find the software complex initially. Despite its user-friendly design, mastering all the features requires some learning.
• Limited Users on Lower Plans: The more affordable plans are restricted in terms of the number of users. For example, the Simple Start plan only supports one user, which may not be adequate for growing teams.
• Customer Support Challenges: Although support is available, some users report difficulties in getting timely and effective assistance, with issues sometimes requiring multiple contacts to resolve.

Bench Accounting: A Comprehensive Review for Small Businesses

Reasons to Choose Bench Accounting

• Personalized Bookkeeping Services: Unlike traditional accounting software, Bench offers dedicated bookkeeping services, ensuring that your financial records are meticulously maintained by professional bookkeepers.
• Hands-Off Approach: Bench automates many aspects of bookkeeping, from importing bank transactions to categorizing expenses, allowing you to focus on running your business rather than getting bogged down in financial details.
• Comprehensive Tax Support: With Bench’s Premium plan, you get not only year-end financial statements but also complete tax filing services, making it easier to stay compliant and avoid tax season stress.
• User-Friendly Interface: Bench is known for its intuitive and easy-to-navigate platform, making it accessible even for those with limited accounting experience.
• Unlimited Customer Support: Bench provides unlimited support through its messaging platform and phone calls, ensuring that you always have access to help when needed.

What Makes Bench Stand Out

• Dedicated Bookkeeper: One of the most distinguishing features of Bench is that it provides a dedicated bookkeeper for your account. This person becomes familiar with your business, ensuring continuity and personalized service that you might not find with other software options.
• Tailored Financial Reports: Bench delivers a wide array of financial reports, including income statements, balance sheets, and top expenses, which can be customized to give you insights into your business’s performance at a glance.
• Integration with Payroll Services: Bench integrates with Gusto for payroll services, making it easy to manage employee payments and related tax filings through a seamless connection.
• Catch-Up Bookkeeping: If you’re behind on your bookkeeping, Bench offers specialized services to get you up to date, which can be invaluable as tax deadlines approach.
• Trial Period: Bench offers a free one-month trial without requiring payment information, allowing businesses to test the service risk-free.

Areas Where Bench Falls Short

• Limited Software Integration: Bench’s proprietary system does not integrate well with other accounting software like QuickBooks, which might make switching providers or sharing data between platforms more cumbersome.
• High Cost: Compared to other bookkeeping services and accounting software, Bench can be expensive, especially for small businesses with tight budgets. The cost may deter some businesses, despite the value it provides.
• No Android App: While Bench offers a dedicated iOS app, Android users are limited to accessing the platform via a web browser, which may be less convenient.
• Accrual Accounting Costs Extra: If your business requires accrual-based accounting, you’ll need to pay an additional fee on top of the standard subscription, which could increase your monthly expenses.
• Limited Advanced Features: Bench is primarily designed for basic bookkeeping and financial management, so businesses needing advanced accounting features like complex inventory management or extensive reporting options might find it lacking.

Sage 50cloud Accounting: Comprehensive Review for Small Businesses

Reasons to Choose Sage 50cloud

• Advanced Inventory Management: Sage 50cloud supports complex inventory needs, including methods like LIFO and FIFO, making it ideal for businesses with significant inventory management requirements.
• Comprehensive Reporting: The software excels in generating detailed financial reports, including customized reports, which can be crucial for businesses needing in-depth financial analysis.
• Project Accounting Capabilities: With features like job costing by phase and cost level, Sage 50cloud is well-suited for project-based businesses, particularly in industries like construction and manufacturing.
• Scalability: Sage 50cloud offers various plans that cater to different business sizes, from solo entrepreneurs to medium-sized companies with up to 40 users, allowing for growth without the need to switch platforms.
• Integration with Microsoft Office 365: This feature allows seamless data synchronization, enhancing productivity by integrating accounting data with other business operations.

What Sets Sage 50cloud Apart

• Industry-Specific Features: Particularly in the Quantum Accounting plan, Sage 50cloud offers tailored features for specific industries like construction, manufacturing, and distribution, which are not commonly found in other accounting software.
• Robust Desktop Interface: Unlike many cloud-based solutions that may sacrifice functionality for accessibility, Sage 50cloud combines the reliability of a desktop interface with cloud capabilities, offering a blend of traditional and modern accounting tools.
• Security and Compliance: Sage 50cloud offers strong security features, including role-based access control and audit trails, which help businesses manage compliance and protect sensitive financial data.

Areas Where Sage 50cloud Falls Short

• Higher Cost: Sage 50cloud is more expensive compared to competitors like QuickBooks Online or Xero. The pricing might be prohibitive for very small businesses or startups on a tight budget.
• Steep Learning Curve: The software’s interface is considered outdated and not as intuitive as some of its competitors, which may pose challenges for users without a solid accounting background.
• Limited Mobile Functionality: Unlike other accounting software, Sage 50cloud does not offer a full-featured mobile app for on-the-go accounting. Its mobile offerings are limited to specific functions like receipt scanning.
• Complex Setup and Maintenance: Sage 50cloud can be more complex to set up and maintain, particularly for businesses that do not have in-house IT or accounting professionals. This could lead to additional costs if external help is needed.

Zoho Books review 2024 for small business

Why Zoho Books is a Smart Choice

• Affordable Pricing: Zoho Books offers a free plan for businesses earning less than $50,000 annually, making it accessible for startups and small operations. The paid plans are competitively priced, starting as low as $20 per month, with a range of features that grow with your business needs.
• Strong Mobile App: The Zoho Books mobile app is highly regarded for its ability to handle a variety of accounting tasks on the go, from invoicing to expense tracking and even project management.
• Comprehensive Features: Even at the basic level, Zoho Books includes robust features like invoicing, bank reconciliation, client portals, and time tracking. Higher-tier plans offer advanced functionalities such as inventory management, multi-currency support, and automated workflows.
• Integration with Zoho Ecosystem: If you’re already using other Zoho products like Zoho CRM or Zoho Inventory, Zoho Books integrates seamlessly, providing a unified experience across various business functions.
• Customizable Invoicing: Zoho Books allows for extensive customization of invoices, including templates, languages, and branding, which can be tailored to match your company’s identity.

What Distinguishes Zoho Books from the Competition

• Client Portal: Zoho Books features a client portal where customers can view and pay invoices, accept or decline estimates, and communicate with your business directly within the platform. This feature is not commonly found in other accounting software at this price point.
• Advanced Inventory Management: Especially in the higher plans, Zoho Books offers detailed inventory management capabilities, including stock level tracking, notifications for low inventory, and integration with e-commerce platforms like Shopify.
• Workflow Automation: The ability to automate business workflows and set up custom rules for different accounting tasks is a significant advantage, particularly in the higher-tier plans.
• Data Security and Compliance: Zoho Books offers robust security features, including audit trails and bank-grade encryption, ensuring your financial data is secure and compliant with international standards like GDPR.

Areas Where Zoho Books Could Improve

• User Limitations: The lower-tier plans restrict the number of users, which can be a limitation for growing businesses that require more team collaboration. To add more users, businesses need to upgrade to higher plans, which increases the cost.
• Learning Curve: While Zoho Books is feature-rich, it can be complex for users who are not familiar with accounting principles. The interface, while powerful, might take some time to master, particularly for those new to the software.
• Limited Third-Party Integrations: Although Zoho Books integrates well with other Zoho products, its range of third-party integrations is more limited compared to competitors like QuickBooks, which could be a drawback for businesses relying on a wider array of external apps.
• Invoice Customization Complexity: While Zoho Books offers extensive customization options for invoices, some users may find the customization tools less intuitive compared to other platforms, potentially requiring more time to achieve the desired results.

Wave Accounting to start up your business

Why You Should Consider Wave

• Completely Free: Wave offers a full-featured accounting platform at no cost. You only pay for optional services like payroll or payment processing, making it highly budget-friendly.
• Unlimited Capabilities: Unlike many competitors, Wave allows unlimited invoicing, expense tracking, and client management, with no hidden charges or user limits.
• User-Friendly: The setup process is straightforward, and the interface is designed with non-accountants in mind, offering a low learning curve with accessible help options.
• Customizable Invoicing: Wave’s invoicing tools are robust, allowing for custom logos, colors, and templates. It also supports various payment methods, including Apple Pay, which ensures faster transactions.
• Multi-Business Management: Wave makes it easy to manage multiple businesses under one account, which is ideal for freelancers juggling several gigs or small business owners with multiple ventures.

What Sets Wave Apart

• Free-for-Life Model: The biggest advantage of Wave is its genuinely free accounting solution, which offers features comparable to paid services, including basic financial statements and automated bookkeeping.
• Simple Automation: Wave’s automation features are perfect for small operations, learning from your transactions to improve accuracy over time. It simplifies routine tasks like sending recurring invoices and payment reminders.
• Mobile Accessibility: While Wave lacks a full accounting mobile app, it does provide a capable invoicing app that mirrors the desktop experience, allowing for easy management of invoices and payments on the go.

What It Lacks

• Limited Integrations: Wave doesn’t support many third-party integrations. If you rely on other business apps, you may find it restrictive, as it mainly integrates through Zapier, which requires additional setup and cost.
• Scalability Issues: Wave is not ideal for rapidly growing businesses that need more advanced features, such as detailed project tracking or extensive payroll options. It offers minimal scalability, making it less suitable as your business expands.
• Customer Support Limitations: Support is available only through chat and email during business hours, with no phone support or dedicated service for free users. This can be frustrating if you encounter urgent issues.
• No Time Tracking: Unlike some competitors, Wave doesn’t offer built-in time tracking or project management features, which can be a drawback for service-based businesses that bill by the hour.

FreshBooks: A Comprehensive Review for Small Businesses

Reasons to Choose FreshBooks

• User-Friendly Interface: FreshBooks is celebrated for its intuitive, easy-to-navigate design, making it an excellent choice for users with little to no accounting experience.
• Built-In Time and Project Tracking: Unlike many competitors, FreshBooks includes native time-tracking and project management tools in all its plans, allowing seamless integration of these features into your billing process.
• Mobile Accessibility: The FreshBooks mobile app is highly rated and offers a comprehensive suite of features, allowing users to manage invoices, track expenses, and capture receipts on the go.
• Strong Invoicing Capabilities: FreshBooks shines in invoicing, with features like automatic recurring invoices, late payment fees, and the ability to accept payments through multiple channels (including Stripe, PayPal, and credit cards).
• Comprehensive Reporting: Users can generate a wide range of reports, including profit and loss statements, sales tax summaries, and accounts receivable aging, providing valuable insights into their business’s financial health.
• Secure Data Handling: FreshBooks offers robust security features, including bank-grade encryption and customizable user permissions to control access to sensitive financial information.

What Sets FreshBooks Apart

• Invoicing Flexibility: FreshBooks allows for detailed customization of invoices, including the ability to set up automatic billing for regular clients and even apply interest or late fees to overdue payments. This level of flexibility is particularly valuable for service-based businesses.
• Ease of Use for Freelancers and Small Teams: FreshBooks is particularly well-suited for freelancers, solopreneurs, and small teams, with features that cater to project-based billing and easy collaboration between team members.
• Native Integration with Payment Processors: FreshBooks integrates smoothly with major payment processors like PayPal and Stripe, making it easier for businesses to get paid quickly and track payments efficiently.
• Simplified Tax Preparation: The software is designed to help businesses prepare for tax season by providing necessary reports and documentation that align with what tax preparers need, streamlining the process and reducing the risk of errors.

Areas Where FreshBooks Falls Short

• Limited Scalability: While FreshBooks is ideal for small businesses, it may not scale as well for larger companies or those with complex accounting needs. The software’s feature set is streamlined, which could limit flexibility as a business grows.
• Higher Cost for Additional Users: FreshBooks charges $11 per additional user per month, which is higher compared to some competitors. This can add up quickly for businesses that need multiple users on the platform.
• Basic Inventory Management: The platform offers only basic inventory tracking features, which might not be sufficient for product-based businesses that require more detailed inventory management.
• No Free Plan: Unlike some competitors, FreshBooks does not offer a free tier. Although it provides a 30-day free trial and a money-back guarantee, businesses looking for a long-term free solution may need to consider other options.

Xero Accounting Software: An Expert Review

Reasons to Consider Xero for Your Small Business

• Unlimited Users Across All Plans: Unlike many competitors, Xero allows unlimited users even on its most basic plan, making it an excellent choice for businesses with multiple team members needing access.
• Comprehensive Inventory Management: Xero’s inventory tracking is available on all plans, including integration with platforms like Shopify, making it ideal for businesses with extensive product inventories.
• Wide Range of Integrations: With over 1,000 integrations, Xero connects seamlessly with various third-party apps, ensuring your business software ecosystem works together smoothly.
• Easy-to-Use Interface: Xero offers a guided setup process, making it accessible even for those new to accounting software. The interface is simple, intuitive, and easy to navigate, reducing the learning curve.
• Recurring Invoices and Automatic Reminders: Xero’s invoicing capabilities include features like recurring invoices and automatic payment reminders, helping to streamline your billing process and improve cash flow.

What Distinguishes Xero from Other Accounting Software

• Global Accessibility: Xero’s robust multi-currency support and global reach make it a strong contender for businesses operating internationally. The platform is well-suited for companies with global clients or operations.
• Scalability: Whether you’re a freelancer or a growing business, Xero’s tiered pricing plans provide essential features at every level, with the flexibility to scale as your needs grow.
• Integrated Time Tracking: Unlike many competitors, Xero includes time tracking in all plans, which is particularly useful for businesses that bill clients based on time or need to track employee hours.
• Secure Data Handling: Xero employs bank-grade encryption and two-factor authentication, offering strong security measures to protect sensitive financial data.

Areas Where Xero Could Improve

• Limited Features on Lower Plans: The entry-level plan is restrictive, allowing only 20 invoices and 5 bills per month. Businesses that need more will have to upgrade to a higher-tier plan.
• No Direct Phone Support: Xero does not offer a direct customer service phone number, which can be a drawback for those who prefer immediate, real-time assistance.
• Customization Limitations: While Xero’s invoicing system is powerful, customization options are somewhat limited compared to competitors like FreshBooks, making it less flexible in tailoring invoices to brand-specific needs.
• Payroll Requires Third-Party Add-Ons: Xero does not include built-in payroll capabilities, requiring users to rely on third-party solutions, which might add to the complexity and cost.

A Comprehensive Review of Kashoo: Is It the Right Accounting Tool for Your Small Business?

Why Consider Kashoo?

• User-Friendly Interface: Kashoo is designed with simplicity in mind, making it an excellent choice for small business owners who may not have a background in accounting. The interface is intuitive and easy to navigate, allowing users to quickly enter income and expenses, track finances, and generate reports.
• Affordability: With a starting price of $27 per month, Kashoo offers a budget-friendly solution for small businesses. It includes all the essential features without the need for expensive add-ons.
• Unlimited Users: Unlike many competitors, Kashoo allows you to add an unlimited number of users at no additional cost, making it ideal for small teams.
• Mobile Accessibility: While primarily web-based, Kashoo also offers a mobile app for iOS devices, allowing business owners to manage their accounting on the go.
• Solid Reporting Features: Kashoo provides essential financial reports such as income statements, balance sheets, and transaction summaries. These reports can be easily exported for further analysis.

What Makes Kashoo Stand Out?

• Simple Yet Effective: Kashoo focuses on the core functionalities needed by small businesses, avoiding the complexity of more extensive software. It streamlines the accounting process, from managing invoices to tracking expenses, which is particularly beneficial for those looking to transition from spreadsheets or manual bookkeeping.
• Integration Capabilities: Kashoo integrates with several third-party services like Stripe, FreshBooks, and Paychex, offering flexibility for businesses that already use these tools. The ability to sync with over 5,000 banks worldwide adds another layer of convenience.
• Customizable Invoicing: Kashoo allows you to create and send customized invoices, including recurring invoices for regular clients, which can help maintain consistent cash flow.

Where Kashoo Falls Short

• Limited Advanced Features: While Kashoo covers the basics well, it lacks some of the advanced functionalities found in other accounting software. For instance, it does not offer built-in payroll processing, time tracking, or robust project management tools.
• No Android App: Currently, Kashoo only offers a mobile app for iOS users. This limitation can be a significant drawback for Android users who need mobile access to their accounting software.
• Integration Limitations: Although Kashoo does integrate with some third-party tools, its integration options are not as extensive as those offered by competitors like QuickBooks or Xero. This can be a limitation for businesses that rely heavily on specific software ecosystems.

Sage Intacct: A Comprehensive Review for Small Businesses

Why Choose Sage Intacct?

• Advanced Financial Management: Sage Intacct offers a wide range of financial management features, including multi-dimensional financial reporting, automated workflows, and detailed cash management. This makes it ideal for businesses with complex accounting needs.
• Scalability: The software is designed to grow with your business. Whether you’re a mid-sized company or scaling to enterprise level, Sage Intacct offers robust features that can be tailored to your evolving requirements.
• Customizable Dashboards: Sage Intacct allows users to create custom dashboards that provide real-time insights into key financial metrics, ensuring that decision-makers have access to the data they need when they need it.
• Compliance and Security: It adheres to GAAP standards and offers strong security features like role-based permissions and audit trails, ensuring your financial data is both compliant and secure.
• Integration Capabilities: The software integrates seamlessly with popular platforms like Salesforce, Avalara, and American Express, as well as offering an open API for custom integrations. This connectivity streamlines your business processes across various platforms.

What Sets Sage Intacct Apart?

• Multi-Entity Financial Management: Unlike many competitors, Sage Intacct excels in managing financials across multiple entities and currencies, making it a top choice for businesses with international operations or multiple subsidiaries.
• Deep Analytics: Sage Intacct’s ability to provide multi-dimensional analysis allows businesses to dissect financial data across various parameters, offering unparalleled insights into performance and growth opportunities.
• Industry-Specific Modules: The software offers specialized modules for industries like professional services, healthcare, and nonprofits, ensuring that it can cater to specific industry needs effectively.
• Strong Support for Growth: For businesses aiming for rapid growth, Sage Intacct provides advanced budgeting and forecasting tools, subscription billing, and comprehensive revenue recognition, enabling better financial planning and execution.

Where Sage Intacct Falls Short

• Complex Setup and Learning Curve: The richness of features comes at a price—Sage Intacct can be complex to set up and has a steeper learning curve compared to simpler accounting software. This might require additional training and onboarding time.
• High Cost: Sage Intacct is priced on the higher end, starting at around $99 per user per month. This might be prohibitive for smaller businesses or startups with limited budgets.
• Limited Inventory Management: While Sage Intacct excels in financial management, its inventory management capabilities are somewhat lacking, which might require additional software for businesses with extensive inventory needs.
• Customer Support: Some users have reported delays in response times, particularly during peak periods, which could be frustrating for businesses needing immediate assistance.

ZipBooks: A Comprehensive Guide for Small Businesses

Why Choose ZipBooks

• Budget-Friendly Options: ZipBooks offers a range of plans, including a free version with unlimited invoicing, making it an excellent choice for businesses on a tight budget. Even the paid plans are reasonably priced, with the “Smarter” plan starting at just $15 per month.
• Ease of Use: The software is designed to be user-friendly, focusing on simplicity and avoiding unnecessary features that might clutter the interface. This makes it accessible even for those with limited accounting knowledge.
• Comprehensive Invoicing: All plans include robust invoicing capabilities, such as automatic invoice numbering, recurring invoices, and reminders, which streamline billing processes.
• Integrated Time Tracking: ZipBooks includes time tracking within its paid plans, a feature that is often missing in other accounting software, making it particularly useful for service-based businesses.
• Intelligent Reporting: The platform provides detailed financial reports, including income statements and balance sheets, that are customizable and exportable, helping businesses maintain a clear financial overview.

Distinguishing Features of ZipBooks

• Invoice Quality Score: Unique to ZipBooks, this feature rates your invoices on a scale from 0 to 100 based on past performance data, offering insights to optimize your invoicing processes.
• Streamlined Interface: ZipBooks’ dashboard is clean and intuitive, focusing on ease of navigation without overwhelming users with unnecessary details. This is particularly appealing for small businesses that need efficient tools without the complexity.
• Cobranded Client Accounts for Accountants: For accounting professionals, ZipBooks offers an Accountant plan that includes cobranding options and unlimited access to client accounts, making it easier to manage multiple clients within one platform.

Areas Where ZipBooks Falls Short

• Limited Advanced Features: While ZipBooks is excellent for basic accounting needs, it lacks some advanced features like inventory tracking and comprehensive project management, which might be necessary for more complex businesses.
• Restricted Customer Support Hours: Customer support is available only during business hours (8 AM – 5 PM Utah time), which might be inconvenient for businesses needing assistance outside these times.
• Geographical Limitations: Bank connections are currently limited to the US and Canada. Businesses outside these regions may find it tedious to manually input transactions, especially if dealing with a high volume of entries.
• Free Plan Constraints: The free plan, while offering unlimited invoicing, is limited to one bank account connection, which may not be sufficient for businesses with multiple accounts.