10+ Best Accounting Software for Small Businesses

For today’s small business owners, managing finances goes beyond simple bookkeeping – it’s a strategic part of running a successful company. Selecting the right accounting software can be a game-changer for business owners. It helps track expenses, simplify tax preparation, and support data-driven financial decisions.

The best accounting software solutions are designed to streamline daily tasks. They integrate seamlessly with other key business tools, making financial management smoother and more efficient.

However, many small businesses still rely on spreadsheets or manual methods to manage their finances. A recent survey found that 51% of businesses with 1-19 employees are using outdated processes that make bookkeeping time-consuming and error-prone.

With the right software, small business owners can free up valuable time, reduce errors, and stay on top of their finances with ease.

This guide will help you find the top accounting software options available for small businesses, breaking down each tool’s features, advantages, and pricing plans.

Whether you’re looking to simplify bookkeeping, improve reporting, or prepare for more complex systems as you grow, these small business accounting tools can help. They make it easier to build a more organized and financially stable business.

Key Takeaways:

• Learn how accounting software automates invoicing, payroll, and expense tracking to save time and reduce errors.
• Understand why automation improves data accuracy, leading to reliable financial statements and smarter decision-making.
• Explore how reports and analytics reveal business performance, supporting better budgeting and planning.
• Discover the importance of choosing scalable software that adapts as your business grows.
• Explore the advantage of free trials to test features and find the best fit before investing.

What is Accounting Software?

Accounting software is a digital tool that helps businesses manage their financial transactions, prepare reports, and ensure compliance with tax laws.

These programs automate and streamline accounting tasks like invoicing, expense tracking, payroll, and financial reporting. Online accounting software for small business users provides convenient access to financial data from any location.

Accounting software is crucial for any small business looking to maintain accurate records and gain insights into its financial health. It replaces manual bookkeeping methods, reducing errors and saving time.

More importantly, it helps small businesses stay organized and compliant with financial regulations. The best bookkeeping system for small businesses needs to include automation, accuracy, and user-friendly interfaces.

Importance of Accounting Software for Small Businesses

Why should small businesses invest in accounting software? Financial management software for small businesses delivers substantial operational benefits and cost savings. The benefits are numerous and impactful.

Ensures Accuracy

Accounting software ensures accuracy. Manual calculations are prone to errors, but automated systems reduce the margin for mistakes and improve data reliability. This accuracy is crucial when preparing financial statements that impact business decisions. Many owners seek user-friendly accounting software for small business teams with varying technical skills.

Saves Time

Accounting tools save time. Easy accounting software for small business owners eliminates complexity and streamlines daily financial tasks. Automating repetitive tasks like invoicing, payroll, and expense tracking frees up valuable hours that business owners can invest in growth and development.

Providing Valuable Insights

The Best accounting software provides valuable insights. Accounting systems offer comprehensive reports and analytics to help businesses track performance and make informed decisions.

By analyzing these metrics, businesses can identify trends, set budgets, and plan for the future. Financial reporting software for small business managers enables data-driven strategic planning and forecasting.

How to Choose the Best Accounting Software for Your Small Business

Selecting the best accounting software involves assessing your needs and comparing available options. Here are some key considerations:

1. Features: Ensure the software covers all your accounting needs, including invoicing, expense tracking, payroll, and financial reporting.
2. Ease of Use: Look for a user-friendly interface that doesn’t require extensive training.
3. Integration: Choose software compatible with other tools you use, like your WordPress site or CRM system.
4. Scalability: Pick a solution that can grow with your business.
5. Customer Support: Reliable customer service is essential for troubleshooting and guidance.

When evaluating options, consider the best accounting package for small business requirements, including features, support, and long-term value. The best small business financial software should strike a balance between functionality, ease of use, and reasonable pricing.

Now, let’s explore some of the best accounting software available for small businesses.

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10 Best Accounting Software for Small Businesses

Choosing the best accounting software for small businesses is essential for efficient financial management. From automated bookkeeping to detailed reporting, these user-friendly and affordable accounting tools simplify operations and improve accuracy.

1. FreshBooks
2. QuickBooks
3. Xero
4. NetSuite
5. Sage Intacct
6. Odoo Accounting
7. ZarMoney
8. TrulySmall Accounting
9. Wave
10. Zoho Books

FreshBooks

Running a small company or freelance business means juggling multiple clients, managing payments, handling invoices, and more. FreshBooks is accounting software for solo business owners, freelancers, and sole proprietors. It’s particularly popular as accounting software for service business models that prioritize client relationships and billing.

It streamlines organization, tracks payments and expenses, sends invoices, and accepts payments. While many accounting software options exist, FreshBooks is ideal for smaller businesses and single-owner operations.

The best accounting software for service business operations typically emphasizes invoicing and time tracking capabilities.

Features list

• Instant invoicing with automatic payment reminders.
• Build custom invoices, set up recurring billing, and get paid faster.
• Monitor profitability, cash flow, and spending with accounting tools.
• Capture and organize expenses easily for tax prep.
• Log billable time and add it to invoices automatically.
• Collaborate seamlessly with clients and team members.
• Track financial performance and provide quick access for accountants.
• Simplify payroll with automatic tax filing in five clicks.

Pros and cons of FreshBooks:

Pros: 

• Enjoy a Free Trial
• Supports various online payments, including PayPal.
• Create and customize unlimited invoices effortlessly.
• All plans include a Client Portal.
• Experience a user-friendly interface.

Cons: 

• No reporting features in the mobile app
• Extra cost for additional users

Pricing Plan:

FreshBooks offers four distinct plans tailored to your business needs, with a 10% discount for annual payments instead of monthly. 

• Lite: $10.50/month
• Plus: $19.00/month
• Premium: $32.50/month

Additionally, FreshBooks frequently provides discounts for your initial months of membership. Select, which is a custom service with custom pricing.

QuickBooks

As the most popular accounting software for small business users worldwide, QuickBooks offers comprehensive financial management tools. It is one of the most popular accounting software options for small businesses. Known for its robust features and user-friendly interface, it suits companies of all sizes and industries.

QuickBooks offers real-time financial data access on any device, enhancing business flexibility. It also integrates with various apps, streamlining operations and improving productivity for users. Start your free trial today and experience seamless accounting with QuickBooks.

Features list:

• Invoicing and billing
• Expense tracking
• Payroll management
• Financial reporting
• Tax preparation tools
• Multi-Currency Support
• Mobile app

Pros and cons:

Pros: 

• Scalable for growing businesses
• Widely trusted by accounting professionals
• Integrates seamlessly with third-party applications
• Cloud-based for easy access
• Includes a mobile app for on-the-go management

Cons:

• Requires upgrades to accommodate more users
• Occasionally faces syncing issues with banks and credit cards

Pricing Plan: 

QuickBooks offers a range of pricing plans to suit different needs. 

• Simple Start: It costs US$18 per month, but a discount offer saves you US$13 for the first three months.
• Essentials: It costs US$27 per month, but a discount offer saves US$19 for the initial three months. 
• Plus plan: It costs US$38 per month,but a discount offer saves US$27 for the first three months. 
• Advanced plan: This plan costs US$76 per month, but a discount offer saves $54/mo for the initial three months.

Xero

Xero is a popular cloud-based accounting software known for its seamless integration with numerous third-party apps. Cost-effective and tailored for small and medium-sized businesses (SMBs), Xero handles complex accounting needs and streamlines various functions.

It simplifies bill payments, expense claims, payment acceptance, project tracking, contract management, file storage, and more, enhancing overall efficiency. This accounting software for small company operations should offer the flexibility and comprehensive features that Xero provides.

Features list

• Invoicing
• Bank Transaction Import & Categorisation
• Bank Reconciliation
• Expense claims
• Financial reporting
• Intuitive Invoicing Software
• Bill Tracking and Payment

Pros and cons of Zero

Pros:

• Cloud-based platform
• Includes a mobile app
• Integrates with Gusto for payroll
• Offers a marketplace for third-party apps
• Features straightforward inventory management

Cons: 

• Insufficient reporting capabilities
• Fees for ACH payments
• Limited customer support

Pricing Plan:

Xero provides three monthly subscription plans along with an optional full-service payroll add-on:

• Starter: Usually $29, now just $2.90 USD per month.
• Standard: Usually $46, now just $4.60 USD per month.
• Premium: Usually $69, now just $6.90 USD per month.

NetSuite

NetSuite is the leading integrated cloud business software suite encompassing business accounting, ERP, CRM, and eCommerce functionalities. It offers robust features, including regulatory compliance, automation, and global tax management. With multi-currency support and a complete payment management system, NetSuite provides comprehensive business solutions. 

For enterprises seeking the best accounting tools for small business scalability, NetSuite offers enterprise-grade capabilities.

Features list

• Regulatory compliance 
• Automation
• Cloud access
• Comprehensive business solutions 
• Global tax management
• Complete payment management system
• Self-serve employee mobile app 
• Multi-currency support, 
• Invoicing tools
• Receipt capture 
• Bill pay functionality. 

Pros and cons of NetSuite

Pros:

• Provides diverse compliance features
• Automates reconciliation and journal entries
• Access your account from any location
• Seamlessly integrates with other NetSuite products, including HR, e-commerce, inventory, and order management

Cons:

• Lack of pricing transparency
• Requires a learning curve
• No available free trial

Pricing Plan: 

Custom pricing.

Sage Intacct

Sage Intacct accounting software offers cloud-based solutions for modern financial management. It provides real-time financial insights, helping businesses make informed decisions. 

Additionally it offers a comprehensive suite of services including accounting, ERP, planning, analytics, and HR/payroll. It automates key finance processes and provides real-time insights with advanced dashboards and reporting.

The platform evolves annually with new product introductions. Accounting solutions for small businesses like Sage Intacct combine power with flexibility for complex needs.

Features list:

• Automates financial processes for immediate control and efficiency.
• Ensures compliance with the latest tax updates and legislation.
• Allows seamless collaboration from any device with internet access.
• Offers flexible access to accounting data anytime, anywhere.
• Minimizes costly errors with customizable reports and key metric tracking.
• Provides cost-effective solutions with affordable monthly and annual plans.
• Secures financial data with cloud-based technology and automatic backups.
• Boosts profitability with real-time financial insights for effective cost management.

Pros and cons of Sage Intacct

Pros:

• Sage Intacct automates tasks, providing real-time financial insights for businesses.
• It offers cloud-based flexibility, accessible from any device with internet connection.
• The software scales with business growth, supporting complex accounting needs.
• Top-tier security ensures data safety with automatic backups and protection.

Cons: 

• Advanced features might overwhelm small businesses with simpler accounting needs.
• Costs may be higher compared to simpler accounting solutions for small businesses.

Pricing Plan:

Custom Pricing.

Odoo Accounting

Odoo Accounting is a comprehensive and user-friendly accounting software that is part of the Odoo suite of open-source business applications. Designed to streamline financial processes, it offers a compact and intuitive interface where users can easily access all necessary features. 

Odoo Accounting leverages automated processes, smooth file imports and exports, and AI technologies to enhance accuracy and efficiency. It supports paperless transactions and provides tools for managing invoices, payments, and reconciliations. 

Beyond accounting, Odoo offers various apps for various business needs, including sales, marketing, inventory management, project management, and HR. When searching for the best accounting software for small business needs, open-source options like Odoo deserve consideration.

Features list

• AI-powered invoice digitization for automatic encoding of scanned documents.
• Multi-company support with real-time consolidation reports and intercompany automation.
• Attractive and customizable invoice templates with instant draft creation.
• Multi-currency support with daily updated currency rates.
• Online payment integration with major gateways like Stripe and PayPal.
• Automated follow-ups for credit collection via emails, letters, and SMS.
• Smart reconciliation tool for automatic matching of invoices and payments.
• Advanced tax management with comprehensive tax computation and reporting.

Pros and cons of Odoo Accounting

Pros:

• User-friendly interface even for beginners.
• Comprehensive Feature Set including tools for automation, AI-powered error reduction, and global transaction management.
• Seamlessly integrates with other Odoo business applications, providing a unified platform for various business functions.

Cons:

• Extensive customization options may require technical expertise
• The free plan only covers one app, which may need more than one for more prominent businesses needing multiple functionalities.

Pricing Plan

Odoo Accounting offers three main pricing options:

• One App Free: Cost: $0. For one app only, unlimited users.
• Odoo Online Standard: Cost: $7.25 per user per month, All apps included.
• Odoo Online Custom: Cost: $10.90 per monthly user, All apps included.

Odoo also offers discounts for the first 12 months of subscription, making it an attractive option for businesses investing in comprehensive and integrated business software solutions.

ZarMoney

ZarMoney is versatile accounting software for freelancers, small to mid-sized businesses and enterprises. It simplifies accounting processes in various industries, such as legal services, eCommerce, and real estate. It supports tasks like accepting online payments, importing bank transactions, and creating estimates. Users also benefit from various built-in and customizable reports and automated tax calculations.

Features list

• Create detailed financial statements and consolidated bookkeeping data.
• Automated bank reconciliations
• Multiple Payment Methods
• Real-time Tracking
• Accurate Analytics.

Pros and cons of ZarMoney

Pros:

• Web-based access to financial data from anywhere for seamless business operations.
• Custom invoicing with online payment options via PayPal and Stripe.
• Automatic bank synchronization with over 9,600 financial institutions.
• Automated tax calculation and compliance with regional tax regulations.
• Dynamic financial statements and visually stunning reporting tools.
• Payables calendar for managing cash flow and simplifying vendor payments.
• Inventory management for complete visibility of global inventory.
• Multi-user access with role-based permissions for secure data handling.

Cons:

• Costly for Enterprises
• Limited Free Features

Pricing Plan:

ZarMoney offers three pricing plans based on the number of users:

• Entrepreneur Plan: $15/month
• Small Business Plan: $20/month
• Enterprise Plan: $350/month

TrulySmall Accounting

TrulySmall Accounting, developed by Kashoo, is tailored for small businesses, including owner-operators, contractors, and freelancers. This software is designed to “do the heavy lifting” for users through automation.

It features an intuitive platform with a Smart Inbox resembling an email interface, making it easy to learn and use. Additionally, it offers customization settings for a unique dashboard and a free invoicing app to help track and reconcile cash flow.

Features list:

• Automatic transaction posting and categorization to eliminate manual entry errors.
• Customizable invoicing with automatic reminders and payment status tracking.
• Quick generation of critical business reports in under five minutes.
• Digital payment options integrated into invoices for faster client payments.
• Multi-currency support for international transactions and reporting.
• Receipt scanning and management using OCR technology for easy record-keeping.
• Personalized categorization rules to fit unique business needs.
• Mobile access for invoicing and performance tracking on-the-go.

Pros and cons of TrulySmall Accounting

Pros:

• Automatic transaction posting eliminates errors by categorizing and posting transactions automatically.
• Customizable invoicing includes automatic reminders and payment status tracking for streamlined invoicing.
• Quick reporting generates business reports in under five minutes, saving time and effort.
• Multi-currency support allows invoicing and reporting in multiple currencies for international transactions.

Cons:

• Limited advanced features may be available compared to more comprehensive accounting software options.
• Mobile app may not offer full functionality compared to the desktop version.

Pricing Plan:

• TrulySmall Accounting’s pricing plans start at $8.99/month when paid annually. 

The vendor also offers a free 14-day trial for those who want to test its functionalities before committing to a subscription.

Wave

Wave accounting software simplifies bookkeeping with automatic transaction import, saving time and effort. It uses double-entry accounting, ensuring accuracy and reliability for small businesses. Robust reporting features provide easy-to-understand financial insights for better decision-making. Data security is top-notch, with 256-bit encryption and PCI Level-1 certification.

Features list:

• Automatic bank transaction import connects bank accounts to import and categorize transactions.
• Double-entry accounting provides accurate bookkeeping for small businesses.
• Robust reporting offers easy-to-use reports for cash flow comparisons.
• Smart dashboard organizes income, expenses, payments, and invoices for tax preparation.
• Multi-user access allows inviting additional users with customizable access.
• Secure data handling ensures security with 256-bit encryption and PCI Level-1 certification.
• Mobile app availability helps manage invoices and payments on-the-go.
• Free starter plan includes essential bookkeeping and invoicing features.

Pros and cons of Wave:

Pros:

• Free accounting and invoicing services
• No limits on transactions or billing
• Manage multiple businesses within a single account
• Unlimited user access
• Available mobile app.

Cons:

• Higher credit card fees
• Full-service payroll limited to 14 states

Pricing Plan:

• Wave provides its core features at no cost, with optional paid add-ons such as payroll and
• Additional services for $16 monthly.

Zoho Books

Zoho Invoice is a free invoicing software designed for freelancers and small business owners to manage their accounting efficiently. It offers customizable templates for invoicing, payment tracking, and professional branding. Users can send up to 1,000 invoices annually, accept and track payments, and customize invoices with multiple languages, currencies, and tax information.

Features list:

• Invoicing
• Payroll Management
• Mobile App
• Automation
• Project Time Tracking
• Customer Portal

Pros and cons of Zoho Books:

Pros:

• Forever free plan available
• Affordable paid options
• Expense and mileage tracking
• Integrates with other Zoho apps
• 1099 contractor management
• Recurring invoicing
• Project and task time tracking
• Customer Portal
• Automation features
• Tax compliance tools

Cons: 

• Single-user restriction per account
• No inventory tracking is available

Pricing Plan:

The starting cost is free.  It offers three more pricing plans: 

• Premium Plan: $36 per month
• Standard Plan: $12 per month
• Professional Plan: $24 per month

Frequently Asked Questions

Conclusion

Finding the best accounting software for small businesses is critical to streamlining operations and gaining insight into their financial health. By comparing features, pros and cons, and pricing plans, you can select the best tool tailored to your needs.

Modern accounting solutions for small businesses continue evolving with advanced features like automation and cloud accessibility. Whether you need affordable accounting software for small business budgets or comprehensive enterprise solutions, there’s an option available.

Explore the options we’ve discussed and start leveraging the power of accounting software to transform your small business today!