8 Best Accounting Program for Small Business in 2024

The finest accounting program for a small business will rely on the technical requirements, budget, and your unique demands. The finest accounting software helps you maintain a thorough financial record so that you’re prepared for tax season and makes it simple to manage how money comes in and goes out of your small business. The following are some of the best choices for accounting software that come highly suggested for small businesses:

Our top accounting software picks include:

• Best Overall: QuickBooks Online.
• Best for Simplicity: Xero.
• Best for Freelancers: FreshBooks.
• Best free Accounting Software: Wave.

8 Best Accounting Program for Small Business

1. QuickBooks Online (Best overall accounting software)

Why We Choose it?

Because of its robust feature set and adaptability, QuickBooks Online leads the accounting market. It provides extensive reporting and transaction monitoring tools, invoicing capabilities, inventory management features, and mobile app capability in addition to essential accounting functions.

Particularly, QuickBooks’ detailed transaction tracking features, which enable you to categorize transactions by department or location, among other factors, will appeal to business owners attempting to gauge performance in various areas of their enterprise. Every plan has more reporting features than the others, yet even the most affordable Simple Start plan comes with more than 50 reports.

Price:

• $35 is the monthly cost of the Basic Start plan.
• Monthly cost of the Essentials plan is $65.
• Monthly cost of the Plus package is $99$.
• The monthly cost of the advanced plan is $235.

Key Features:

• Accounting with double entry
• Bank imports that happen automatically
• Transaction reconciliation that happens automatically
• Countless users with a minimum of one plan
• Access to accountants for all plans
• Common accounting reports, such as the balance sheet, AP, AR, and P&L
• Reports that can be customized
• Reports tailored to a certain industry
• Features of Invoices
• Features of inventory management
• Features for project tracking
• Smartphone application
• Integrations of business software as payroll, HR, CRM, time tracking, etc.
• Real-time client service

Advantages

• Sharing data with your accountant is simple, and you can quickly locate QuickBooks specialists and online resources if necessary.
• Over 750 apps are integrated, with live in-house bookkeeping among them.
• Entire record-keeping, detailed reporting, superior billing and inventory management, as well as a functional mobile app, are all part of the robust feature set.
• All options include 24/7 chat help and daily phone support.

Cons:

• Prohibited Account users for Each Plan
• Lacks Industry-specific Functionality

2. Xero (Best Simple Accounting Software)

We Choose it Because:

Another dependable product with conventional accounting features is Xero. It also has a powerful mobile app, great reporting tools, and a dashboard that each user can customize to conceal or rearrange panels as desired.

Every plan level in Xero allows for an infinite number of users on a single account, which is a useful feature when several people require varying degrees of system access. Additionally, you may give them various levels of permission: For instance, a user may have the ability to read reports but not alter transactions, while another may only be able to produce invoice drafts and submit time entries. Plans from competitors either have a restriction on the number of users you can add or charge an extra monthly price for each new user, which can rapidly add up. Additionally, Xero provides a vast array of connectors.

Pricing:

• Monthly cost of the early plan is $15.
• Monthly cost of the Growing plan is $42.
• Monthly payment for the Established plan is $78.

Important Components:

• Payroll, purchase orders, purchase reconciliation, and invoicing.
• Robust connections and reporting tools
• Cloud-based and mobile-friendly

Advantages:

• Users are unlimited across all price tiers.
• More than 1,000 third-party apps are integrated.
• The feature set includes a strong suite of reporting and mobile applications, strong invoicing tools, and automatic bill and receipt collection using Hubdoc.

Cons:

• There is no customer service phone number provided.
• Bills and invoices are limited to five and twenty per month, respectively, under the entry-level plan.

See Also: Xero VS QuickBooks Online: Pricing, Features & Integration

3. Zoho Books (Best Startup Accounting Software)

Reasons Behind our Selection

In contrast to many rivals, Zoho Books does not impose any cap on chargeable clients; in fact, its free plan permits you to send up to 1,000 invoices annually. A customer portal, automated payment reminders, mileage monitoring, and report scheduling are additional features of the free plan. Higher-tier subscriptions include access to sophisticated inventory and analytics capabilities, as well as the ability to automate processes and monitor project profitability.

However, what truly make the program stand out are its mobile-first features, including the ability to send bills over iMessage or add widgets to your phone’s home screen for quick access to timers and past-due payments. You can also monitor overdue invoices, issue payment reminders, and track time using an Apple Watch app.

Price:

• Monthly cost of the free plan is $0.
• Monthly cost of the Standard plan is $20.
• The monthly cost of the Professional package is $50.
• Monthly premium: $70 for the Premium plan.
• Monthly cost of the Elite plan is $150.
• The monthly cost of the Ultimate package is $275.

Important Characteristics:

• Integrated with more Zoho technologies for inventory, CRM, and other uses
• Cloud-based banking, cost management, and invoicing with robust mobile applications

Positives:

• Free plan offered for companies with yearly sales under $50,000; more affordable than other rivals
• Free plans offer email assistance; premium plans include phone and chat help.
• Good inventory management, workflow rules, mobile app capability, and invoicing are all part of the rich feature set.
• Utilize your Apple Watch to measure time and add accounting widgets to the home screen of your phone.

Cons:

• Fewer reports and third-party integrations than certain rivals
• There is a maximum of 15 users per plan (you may add extra users for a cost).

See more info: How to Switch from Zoho Books to QuickBooks Online?

4. FreshBooks (Best for Freelancers)

Reason for Choosing it:

FreshBooks is an excellent accounting solution for freelancers, especially if you have 50 or less total customers and may thus choose the Lite or Plus package. It has exceptional invoicing tools as well as client management resources. Even allowing your clients to set up their own accounts is an option. This enables people to contribute on projects they’ve been asked to see, save and comment on invoices, and store their payment details.

There is no additional cost for a time-tracking feature with any of FreshBooks’ plans, unlike other rivals. To track the number of hours worked on a certain project; you can set a timer from within the mobile app. You can also sync data from Asana and Trell

Price

• Monthly cost of the Lite plan is $19.
• Monthly cost of the Plus package is $33.
• The monthly premium package is $60.
• Particular costs for the Select package

Important Characteristics:

• Easy project management, time tracking, and invoicing
• Robust mobile application and client-collaboration features
• Cloud-based and user-friendly

Advantages:

• Use the FreshBooks mobile app to stay in contact with your clients and receive notifications when invoices are seen or past due.
• Robust accounting systems face competition from intuitive and customizable invoicing features.
• Keep track of time and add billable hours to all plans’ bills.
• All programs include weekday phone support.

Cons:

• Lacks elements such as audit trails for accountants to evaluate those rapidly expanding organizations require.
• Lower-tier plans include restrictions on billable clients; while the highest-tier Select plan only allows for two users (additional users cost $11 per month).
• Bank reconciliation, accountant access, and double-entry accounting reports are absent from the least priced package.

Related info: FreshBooks VS QuickBooks: Integration, Price & Features

5. Wave Accounting (Best free Accounting Software)

The Reason We Choose it

For extremely small firms that just need to track a few transactions a day and require a location to combine invoices and bookkeeping data, Wave offers a straightforward option. You may send an unlimited number of invoices, keep track of your revenue and spending, and set up automatic reminders for overdue online payments using the free edition of the accounting software. Additionally, it provides you with access to over a dozen pre-built financial reports, such as a balance sheet and profit and loss statement.

Choose the Pro package to link an infinite number of bank and credit card accounts for automated reconciliation if you don’t want to manually enter transactions into Wave. Additionally, the online payment processing rates for the subscription plan are more competitive, starting at 2.9% per transaction as opposed to 2.9% + $0.60 for the free plan.

Pricing:

• The Starter plan costs $0.
• The Pro plan has a monthly fee of $16.

Important features:

• Free for basic invoicing and bookkeeping
• Include scanning of receipts, invoicing, and spending tracking
• Extra fees for processing payments and handling payroll

Benefits:

• There is a free plan available.
• Robust accounting systems face competition from intuitive and customizable invoicing features.

Cons:

• Lacks things like audit trails that rapidly expanding businesses require.
• To get real customer help, you must purchase Wave’s Pro plan or additional premium services (payroll, payments, adviser, etc.).
• Not able to measure mileage, make payments using cards in person, or integrates with third parties.

About: QuickBooks vs Wave: Which is Better for Your Startup Business?

6. Sage Business Cloud Accounting

Reasons for our Choice

Unlike some of its rivals, Sage 50 Accounting provides task costing and inventory management capabilities across all plan tiers. Every package also includes Sage’s own cyber security service, which will track your company’s credit score and keep an eye out for data breaches. The sophisticated inventory, job costing, reporting, and budgeting features of Sage 50 may be especially appealing to business owners in the manufacturing or construction industries.

The term “cloud-connected capabilities” refers to a few features of Sage 50 Accounting that go beyond the capabilities of typical desktop software. These features include remote data access, which allows you, your team, and your accountant to securely access your data from devices other than the machine the software is locally installed on (though perhaps not simultaneously or seamlessly); bank feeds, which flow all of your business transactions into the software to aid in the reconciliation process; and cloud data backups for the protection of your crucial financial information.

Pricing:

• The monthly cost of the Pro Accounting package is $58.92 for one user.
• $101.92 a month for the Premium Accounting package, for one user
• The monthly cost of the Quantum Accounting plan is $172 for one user.
• The cost rises with every extra user.

Important Characteristics:

• Automated tax compliance, invoicing, and bank reconciliation
• Forecasting and reporting of cash flow
• Cloud-based

Pros:

• Sophisticated tools for work pricing and inventory tracking
• Characteristics unique to the retail, professional services, and construction industries.
• All options include a dedicated account representative in addition to phone and Chat assistance.

Cons:

• Audit trails are not included in the lowest-tier package.
• More expensive than a lot of other options on this list

7. QuickBooks Enterprise (Best for Enterprise Accounting Software)

The Reason We Picked it

In the Platinum plan and above, QuickBooks Enterprise allows business owners to build up volume discounts and specific pricing rules based on sales representative, item category, or customer. These same programs enable businesses to utilize mobile devices as barcode scanners, which expedites the inventory count process. Additionally, QuickBooks Enterprise allows you to manage inventory components as well as assemblies, in contrast to certain rivals who only track single inventory items. Moreover, you may monitor the cost of items sold and make inventory adjustments for shrinkage or loss.

To improve teamwork and enable remote access to the program and its data, cloud access may be purchased; however, the monthly fee for each user soon mounts up.

Pricing:

• The Silver plan costs $1,481 annually.
• The annual cost of the Gold plan is $1,922.
• The annual cost of the Platinum plan is $2,363.
• The annual cost of the Diamond plan is $4,668.

Key Features:

• Reports that are industry-specific and customizable
• Supports 1,000 employees and files taxes automatically
• FIFO pricing, barcode scans, and multiple warehouse tracking
• Both personalized pricing guidelines and automatic price changes.
• Thorough monitoring of project expenses and profitability
• Access restrictions are customizable for up to 40 people.
• Oversee several companies and locations.
• Keep track of asset appraisal and depreciation.
• Sync customer information to improve sales administration.
• Handle and monitor backorders and sales orders.
• Personalized forms, reports, and processes
• Features specifically designed for sectors such as charities, retail, and construction.
• Using QuickBooks Enterprise Hosting for remote access
• Handle several transactions or invoices at once
• Connects to more than 200 applications to increase functionality.
• 24/7 top-notch customer support as well as instructional materials.

Pros:

• Robust feature set that includes extensive inventory management, price controls, invoicing, and meticulous record-keeping.
• More than 200 studies, with options tailored to different sectors.
• Phone and chat assistance available around-the-clock.

Cons:

• Few direct software integrations with external parties.
• Annual memberships are pricey; extra charges apply for each additional user license and cloud access.

8. Striven (Best for indutry-specific features)

The Reason we Picked it

You may access your general ledger, common reports like profit and loss, and additional features like billing, order management, and tools for accounts payable and receivable using Striven’s integrated accounting software. By automating tax calculations and providing you with access to a variety of tax reports, Striven’s accounting software will also assist in ensuring that your company is running in a tax-compliant manner.

Striven has created accounting programs specifically for twelve different sectors. For instance, its retail solution integrates its accounting platform with CRM, inventory management, and marketing tools. However, its nonprofit solution comes with event organizing and record-keeping capabilities as well as a donation platform. Additionally, as the system is cloud-based, you may access additional company data and your real-time accounting from anywhere at any time.

Price:

• The Standard plan costs $35 per month for each user.
• The monthly cost of the Enterprise package is $70 per user.

Main Features:

• Financial reporting, bank reconciliation, invoicing, and billing all done automatically
• Keep tabs on sales, support, customer interactions, and leads.
• Project management tools: task tracking, time management, and collaboration.
• Order management, supplier management, and real-time tracking
• Payroll processing, time monitoring, employee records, and benefits administration
• Tools for reporting and real-time information on customizable dashboards.
• Automate procedures, approvals, and time-consuming chores.
• Accessible via mobile devices from any location
• Establish a connection with other programs such as Google Workspace, Microsoft Office, and QuickBooks.
• Full support including live help, tutorials, and on boarding

Pros:

• Provides features tailored to the needs of many industries, including professional services, manufacturing, charities, and consulting firms.
• Instruments to guarantee tax adherence
• Additional capabilities include the ability to classify transactions using classes, maintain inventory, generate reports, invoice, and use project management tools.
• Live chat and phone assistance are accessible for customers.

Cons:

• If you need more than one user, the monthly charges might mount up rapidly.
• Not a mobile application.
• Few third-party connectors accessible; none for payroll or point of sale systems

How to Choose Best Accounting Software

Ideally, the automation features of your accounting software would simplify your daily tasks. When looking into and selecting the finest accounting software for your small business, keep the following important criteria in mind.

1. Scalability

Verify that you can upgrade to a more capable version of the software as your company expands by looking at the plan offered of the products, including the number of workers and users the program can handle. Take into consideration accounting software for medium-sized organizations if you expect substantial or quick growth.

2. Usability

if accounting software isn’t easy to use and intuitive, you may find yourself spending more time on it than required or being discouraged from using it to keep your finances in order. To obtain a sense of how to use accounting software, try out free trials, ask for a demo, and view training videos.

3. Accessibility

Cloud-based software offers access from any device with an internet connection. In general, this makes it simpler to work with accountants and integrates seamlessly with other business software. On the other hand, desktop software is limited to a single computer.

4. Your Spending Plan

What you have to spend Establish the monthly accounting software budget for your company, taking into consideration other fixed expenses such as utilities, rent and supplementary software subscriptions for other applications like payroll or POS systems. View our selection of the top accounting programs for independent contractors and self-employed individuals if you’re a solopreneur looking to cut expenses.

5. Sharing information with Your Accountant

If you deal with an outside accountant, see whether a product facilitates the sharing of your financial information and reports with your accountant. You can easily share access to many major accounting software systems, however some merely allow you to export data to send to your accountant, and some need you to upgrade to more expensive plans in order to have this feature.

6. Integrations

Examine whether there are any direct connectors between the accounting software you are considering and other software categories you already or want to use. If not, you could have to pay for an indirect integration or do manual data transfers between products.

7. Client Assistance

Consider the time of day you’re most likely to contact customer support and the method of communication you like to use. Generally speaking, expensive packages provide better customer service than free accounting software choices.

Conclusion

Selecting the best accounting software for you will rely on factors like budget, integrations, and scalability. Our complete list of the top small-business accounting software is provided above, along with features checklists for simple product comparisons, monthly pricing information, and our rationale for choosing each option.

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Frequently Asked Questions

What is the Least Expensive Accounting Program?

A free software package covering fundamental accounting and invoicing is provided by Wave Accounting. It does not support billable expenses or time or mileage tracking, but it does support an infinite number of users and regular billing. In addition to a number of premium plan alternatives, Zoho Books also provides a free monthly subscription plan, with prices starting at a very affordable $20 per month.

Which Accounting Software is the most Popular?

One of the most widely used accounting software programs available is QuickBooks Online. FreshBooks, Zoho Books, and Xero are also extensively utilized.

Does Your Company have Access to Free Accounting Software?

For small firms that don’t do a lot of transactions and only want basic reporting, invoicing, and monitoring of income and expenses, free accounting software might be a wonderful option. Even if the fundamentals are enough for your company, keep in mind that free goods have drawbacks.

For instance, live customer service, third-party interfaces, and audit trails are absent from Wave’s free accounting package. It also doesn’t supply more plans, so if your company expands in the future, you could have to move your data to a different supplier.

Does Accounting Software fit the needs of Your Small Business?

Generally speaking, yes. Spreadsheets are a useful tool for managing your company’s finances, but they may be laborious and disorganized. Accounting software makes it simple to swiftly run important financial reports, such as a balance sheet or profit and loss statement, and is less prone to human mistake.

Furthermore, double-entry accounting software inserts credits and debits on your behalf, saving you the trouble of manually balancing your books. In the end, purchasing accounting software will assist ensure the accuracy of your records and save you time.