10 Best Accounting Software for Small Businesses

Small business owners want cheap but comprehensive accounting solutions. Choosing the right one is often a perplexing task for many.

Let’s guide you to our curated list of the 10 best accounting software for small businesses with their key features, pros, and cons.

1). QuickBooks Online

Intuit’s QuickBooks online accounting software is one of the leading accounting solutions for small businesses. It’s a familiar name for small and large businesses alike.

Key Features

  • Paid Plans start at $30 per month.
  • Allows integration with over 750 apps for increased small business productivity.
  • Offers easy reconciliation, reporting, and analysis tools.
  • Tracking and data consolidation for sales, expenses, customers, and suppliers.
  • No installation is required.
  • Inventory management tools in higher paid plans.

Pros of QuickBooks Online

  • Comes with no downloads and easy integration with hundreds of apps.
  • Follows double-entry accounting.
  • Small businesses can manage taxes, expenses, and reporting easily.
  • It’s a comprehensive accounting solution provider for businesses with all types of accounting needs.

Cons of QuickBooks Online

  • The free trial and initial discount prices are for limited periods.
  • Its paid plans are costlier than many other competitors.
  • Some key features like payroll cost extra.
  • It may not be easy to use for small business owners without sufficient knowledge of accounting software.

2). FreshBooks

Freshbooks is another leading accounting software. It is particularly designed for business owners with no accounting backgrounds.

Key Features

  • It offers third-party integration with many popular apps including Dropbox, Gusto, Hubspot, etc.
  • It offers in-app estimates and proposals for better client communication.
  • It comes with customizable permission features for a client.
  • Pre-populated charts of accounts, invoicing, time tracking, checkout links, project management features, payroll, and several other accounting features.

Pros of Freshbooks Online

  • It offers simple and cheap pricing options for small businesses.
  • Freshbook offers an intuitive mobile app that enables small businesses to handle accounts from anywhere.
  • The pricing plans start at $15 and customers can choose from a wide range of plans.
  • Freshbook offers excellent customer support throughout the week.

Cons of FreshBooks Online

  • Its paid plans offer a limited number of users with each user costing $10 additionally.
  • It lacks some key accounting features like auditing features for rapidly growing businesses.
  • The payroll feature is offered separately with additional costs.
  • Basic plans lack key features like double-entry, reconciliation, etc.

3). Wave

If you are looking for a free accounting solution, Wave is one of the best software avai lable in the market. It offers excellent accounting features for free and does not compel you to choose a paid plan.

Key Features

  • The free version is available as long as you want.
  • It offers unlimited tracking of expenses, receipt capture, and customized invoicing.
  • It offers payment processing solutions too.
  • A simple and intuitive dashboard with an easy-to-use tabs menu for all types of users.
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Pros of Wave

  • Free to use accounting software.
  • Offers an unlimited number of users, customized invoicing, and unlimited tracking of expenses, that would otherwise cost more with other software.
  • It allows internal app integration for further scalability and enhanced features.

Cons of Wave

  • It does not support third-party app integration.
  • Some key features like payment processing and payroll come with paid app integrations.
  • It lacks some key accounting features for growing or large businesses.
  • Customer support is available only if you subscribe to one of its paid apps.

4). Zoho Books

Zoho Books is an excellent choice for small businesses with annual revenue of $50,000 or less. You can use app integrations and its paid plans to scale up as you need.

Key Features

  • Offers a free plan for small businesses and freelancers.
  • It allows third-party integrations for growing businesses, automation, and comprehensive accounting needs.
  • An excellent dashboard menu with an overview of the business’s sales, expenses, income, invoices, and other features.

Pros of Zoho Books

  • Free plan for small businesses with additional users costing only $2.50.
  • Easy options for linking several bank accounts, reconciliation, sales tax calculations, and invoice generation.
  • Additional features for growing businesses like payment processing, e-commerce solutions, financial statements, etc.

Cons of Zoho Books

  • Third-party app integration options are limited.
  • No plan offers more than 15 users.
  • You may need to rely on several integrations for growing business needs.
  • The limited trial is only for 14 days.

5). Xero

Xero is another leading cloud accounting software specifically designed for small businesses. It is easy and simple to use with loaded features for your accounting and business needs.

Key Features

  • It offers a wide range of features in one place including expense management, invoicing, bill payments, inventory management, etc.
  • An excellent and customizable dashboard for easier navigation.
  • It offers accounting, project management, payroll, tax management, and contacts management features with different paid plans.

Pros of Xero

  • It allows third-party app integrations for over 1,000 apps.
  • It does not restrict the number of users with any plan.
  • All plans include customization options, bank reconciliation, contacts, and several other key features.
  • It offers a comprehensive range of features with a simple and intuitive dashboard for beginners.

Cons of Xero

  • It does not offer a free plan.
  • Most compelling features like multiple currencies are offered with the most expensive plans.
  • It does not offer live customer support.
  • Some other key features like the number of monthly invoices are limited with basic plans.

6). Sage 50Cloud

Sage 50Cloud is another excellent accounting solution for small businesses and freelancers. Its basic plan offers all the necessary accounting features starting only at $10 per month.

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Key Features

  • It offers customization and scalability through its different paid plans.
  • It comes with a comprehensive range of accounting features like expense recording, sales, invoicing, inventory management, payroll, and tax management features.
  • You can link a bank account or use the bank statement for easy reconciliation.

Pros of Sage 50Cloud

  • It offers competitive pricing plans as compared to competitors.
  • It comes with cloud and desktop versions.
  • It offers automatic bank account reconciliation with the option of manual updates as well.
  • It supports multiple currencies.

Cons of Sage 50Cloud

  • Cheaper plans lack some key features like invoicing and quotations.
  • It has a limited range of third-party app integrations.
  • The Payroll feature is excluded from basic plans.
  • It does not offer comprehensive phone support for its customers.

7). Kashoo

Kashoo is an ideal accounting software solution for small businesses and freelancers. It comes with a basic free plan and allows you to upgrade to other plans when you need more features.

Key Features

  • It offers a free invoicing feature with its basic plan.
  • It offers an unlimited number of users and third-party app integrations.
  • It offers basic accounting features for affordable prices.

Pros of Kashoo

  • Small businesses can use its free plan for limited needs.
  • You can have several key features like linking bank accounts, multiple currencies, expense tracking, sales tracking, and cash monitoring with the basic plan.
  • Its paid plans and third-party app integration allow you to manage payroll services.
  • You can manage clients, suppliers, payrolls, and taxes.

Cons of Kashoo

  • It does not include advanced accounting and business management features like project monitoring, time tracking, document management, and customer portal.
  • Its analytical features lack some key tools like report monitoring directly from the dashboard.
  • It may not suffice the needs of large businesses with advanced accounting needs.

8). Neat

Self-employed and small business owners with limited accounting needs can enjoy the simple and easy-to-use accounting software Neat.

It fulfills your basic accounting needs and comes with customization options to upgrade as and when you grow as a business.

Key Features

  • It comes with an excellent feature of document management that can help you manage expenses and receipts in one place.
  • It offers several key features in one place including payment solutions, expense recording, invoicing, bill payments, and more.
  • It offers useful tools like automatic payment reminders, a customer portal, expense tracking, and many other features.

Pros of Neat

  • It offers unlimited file storage space even for small business owners.
  • It has an excellent customer support system through email and chat.
  • Its search feature helps you filter different expenses and create reports.
  • Its easy software system makes collaboration and team working easier.
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Cons of Neat

  • Its free trial is only for 14 days and then you must subscribe to an annual plan.
  • Additional features like payment processing and account reconciliation come with the highest-paid plans.
  • It lacks some key features like time tracking.

9). OneUp

OneUp is a unique accounting software solution that charges its customers based on users rather than features. It means small businesses can make the most out of the best features at a much lower cost than larger businesses.

Key Features

  • All pricing plan includes all features and the cost depends on the number of users.
  • It includes all key features of good software including company setup, record keeping, expense tracking, reporting, reconciliation, and tax management.
  • It combines accounting and other business management tools like inventory management in one place.

Pros of OneUp

  • The pricing plan favors small businesses.
  • You can enjoy comprehensive business management tools for a lower cost including sales, invoicing, billing, customer relations, lead tracking, and many other features.
  • It offers comprehensive reporting tools to generate financial statements, expense tracking, inventory level reports, and business overview reports.

Cons of OneUp

  • You may have to pay more with more users.
  • It does not offer payroll management.
  • It may not be suitable for small business owners with limited accounting knowledge.
  • There is no direct phone support for most customers.

10). OnPay

OnPay is an accounting solution for small businesses that also comes with loaded features of business management, HR, and Payroll management.

You can enjoy most of its features with its basic plan starting at $40 per month. Then, you must pay $6 per user or employee.

Key Features

  • It supports accounting features like bookkeeping, tax filing, payment processing, inventory management, employee management, and more.
  • You can integrate several third-party apps for enhanced productivity.
  • Your employees have access to their portals with the lifetime access feature.
  • It offers a clean and intuitive user interface for web and mobile versions.

Pros of OnPay

  • It combines the features of accounting, HR, Payroll, and business management apps with integrations.
  • You can manage employee payroll, insurance, and retirement plans through OnPay integrated apps as well.
  • It offers transparent pricing plans with full features for all customers.
  • It runs unlimited payroll runs to manage contract and temporary employees easily.

Cons of OnPay

  • It lacks some customization features for larger businesses.
  • The cost can add up quickly with an increased number of employees or users.
  • Some tax management features cost extra.
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