The software can also be used to generate reports, depreciation depletion and amortization explained such as profit and loss statements and balance sheets. Most accounting software programs include features for invoicing, tracking payments and managing inventory. FreshBooks has a 4.5 rating on Capterra with 4,379 reviews and a 4.5-star rating on G2 with 688 reviews. Users say it is extremely easy to use and has all the basic features needed to manage small business accounting needs.

The 8 Best Bookkeeping Software Options For Small Businesses

Advanced features include double entry, payroll integration, project cost tracking, customization options and the ability to collaborate with an accountant. FreshBooks offers four plans starting with the Lite plan at $19 per month ($9.50 per month during the current promotion). This plan allows users to send unlimited invoices to up to five clients, track unlimited expenses, send unlimited estimates, track sales tax and accept credit card payments. Neat just has one pricing plan making it easy for business owners who have a hard time deciding on which plan to choose. For $200 per year, users can have access to features like unlimited real-time reports such as profit and loss (P&L) statements, cash flow statements, balance sheets and transaction reports. Users can also create how to calculate payroll tax liabilities and send custom invoices, secure payments through WePay and provide accountants with access.

What is the best accounting software for small business?

Pricier plans include reports for accounts receivable and payable, budgeting, inventory, sales, profitability, and more. Kashoo is cloud accounting software for small business owners who want the simplicity of doing their own books. The simple, straightforward platform allows users to easily create invoices, manage expenses, generate reports, accept credit card payments through Square and more. Accounting software streamlines the bookkeeping process, making it easier for business owners to keep tabs on finances and plan for tax season. For freelancers and small businesses, this is often a more cost-effective option than employing a full-service accounting agency. Business owners looking for an accounting software platform would be wise to select a cloud-based system.

Jennifer Simonson draws on two decades as a journalist covering everything from local economic developement to small business marketing. Beyond writing, she tested entrepreneurial waters by launching a mobile massage service, a content marketing firm and an e-commerce venture. These experiences enriched her understanding of small business management and marketing strategies. Today, she channels this first-hand knowledge into her articles for Forbes Advisor. Like Xero and QuickBooks, Sage Business Accounting’s reports are user how letters of credit work friendly and very easy to read.

Billing and Payments

1. See how you can track and manage your whole financial picture in one place—from bank transactions, expenses, and beyond.
2. Xero is a good choice for small businesses that are looking for an accounting software with payroll capabilities.
3. It required me to enter my name, email address and mobile number, then choose a password.
4. At its core, it offers dynamic invoicing capabilities allowing businesses to generate bespoke online invoices tailored to their specific requirements.
5. Even though it’s free, it doesn’t limit the number of invoices you can send (like Xero) or clients you can bill (like FreshBooks) per month—you can access unlimited customizable invoices and accept payments too.

Plus, Zoho Books is just one piece of software in the larger suite of Zoho products. Each Zoho product integrates easily with the rest, which means that along with accounting, you can use Zoho for project management, inventory management, and customer relationship management (CRM)—just for a start. Sage Business Cloud Accounting, like the others we’ve mentioned, is cloud-based accounting software that doesn’t require any accounting knowledge to use. In fact, it recommends the best accounting solutions based on your industry, company size, and unique business needs. Thankfully, Xero is a simple, straightforward online accounting software with enough functionality to accommodate a small business at any stage of growth. While it doesn’t offer features such as payroll management or advanced automation, GoDaddy is a great option if you’re an ecommerce seller.

The software also offers tools for businesses requiring financial compliance such as GAAP, ASC 606 and SOX. These insights include profitability ratios, cash positions, liabilities, fixed assets and taxes. NetSuite’s pricing is custom, so you’ll need to speak with a sales team member for a quote.

Organized and stress-free small business accounting

Features like recurring invoices, automated payment reminders and online payments make it easy for clients to pay how they like. However, you can share most accounting solutions with an accountant or bookkeeper, including accounting software that otherwise limits its users by plan. Along with its reasonable starting price, Xero’s freelance-friendly features include integration with more than a thousand third-party apps. Most importantly, it works with dozens of ecommerce apps for online sellers.

Your cost can also vary depending on the size of your business. Small businesses may be able to find a less expensive basic plan, while larger businesses may need to upgrade to a more expensive standard or premium plan. Additionally, when I generated an invoice, the system alerted me if any necessary information was missing to save the invoice.

However, the dashboard offers some convenience features that make the user experience intuitive. Each report has an action button embedded so you can complete relevant tasks. For example, the “savings account” report has a button that prompts you to import a bank statement, while the “checking account” report offers a button prompting you to reconcile any unreconciled transactions. Once pressed, a drop-down menu offers common action items, such as adding an invoice or a bill. Simply click on the option to be taken to a page that walks you through the process to complete the task.

Alternatively, from any screen, I could simply click the “+” button at the top of the screen, then “invoices” to add a new invoice with two clicks. There is no need to download QuickBooks Online because it is connected to the cloud, which means you can access online accounting from any device with an internet connection. You can download the QuickBooks Online mobile app from the Google Play Store or Apple App Store.